Document:

ex10_2.htm

Exhibit 10.2

 

AMENDED AND RESTATED DIRECTORS’ COMPENSATION PLAN

NEULION, INC. (formerly JumpTV Inc.),

as amended on May 13, 2009, July 14, 2009, June 15, 2010 and June 5, 2012

 

ARTICLE 1

PURPOSE AND INTERPRETATION

 

	
1.1

	
Plan

 

This compensation plan (the “Plan”) supersedes any and all prior plans relating to the issuance of Common Shares to Directors by NeuLion in lieu of cash payments.

 

	
1.2

	
Purpose

 

The purpose of this Plan is to advance the interests of NeuLion by (i) encouraging its Directors to acquire Common Shares, thereby, increasing the proprietary interests of such persons in NeuLion and aligning the interests of such persons with the interests of NeuLion’s shareholders generally; and (ii) preserving NeuLion’s cash for other corporate purposes.

 

	
1.3

	
Administration

 

	
  

	
(a)

	
This Plan will be administered by the Board or a Committee of the Board duly appointed for this purpose by the Board and consisting of not less than 2 Directors.  If a Committee is appointed for this purpose, all references to the term “Board” will be deemed to be references to the Committee.

 

	
  

	
(b)

	
Subject to the limitations of this Plan, the Board has the authority: (i) to grant Common Shares to Directors under the Plan; (ii) to determine the terms, including the limitations, restrictions and conditions, if any, upon such grants; (iii) to interpret this Plan and to adopt, amend and rescind such administrative guidelines and other rules and regulations relating to this Plan as it may from time to time deem advisable, subject to required prior approval by any applicable regulatory authority; and (iv) to make all other determinations and to take all other actions in connection with the implementation and administration of this Plan as it may deem necessary or advisable.  The Board’s guidelines, rules, regulations, interpretations and determinations will be conclusive and binding upon all parties.

 

	
1.4

	
Interpretation

 

For the purposes herein, the following terms have the meanings ascribed thereto as follows:

 

	
  

	
(a)

	
“Board of Directors” or “Board” means the board of directors of NeuLion;

 

	
  

	
(b)

	
“Chairman” means the Chairman of a committee of NeuLion;

 

  

  

  

 

	
  

	
(c)

	
“Committee” means an independent committee (within the meaning of applicable securities laws) of the Board;

 

	
  

	
(d)

	
“Common Shares” means the common shares in the share capital of NeuLion;

 

	
  

	
(e)

	
“Director” means a person who is elected or appointed as a director of NeuLion from time to time;

 

	
  

	
(f)

	
“Insider” means:

 

	
  

	
(i)

	
an insider as defined in the Securities Act (Ontario), other than a person who falls within that definition solely by virtue of being a director or senior officer of a subsidiary of NeuLion; and

 

	
  

	
(ii)

	
an associate, as defined in the Securities Act (Ontario), of any person who is an Insider by virtue of (i) above;

 

	
  

	
(g)

	
“Management Director” means a Director of NeuLion other than a Non-Management Director;

 

	
  

	
(h)

	
“NeuLion” means NeuLion, Inc. (formerly JumpTV Inc.);

 

	
  

	
(i)

	
“Non-Management Director” means a Director who is not otherwise an officer, employee or consultant of NeuLion;

 

	
  

	
(j)

	
“Option” means an option to purchase Common Shares of NeuLion issued by NeuLion from treasury;

 

	
  

	
(k)

	
“Plan” means this incentive compensation plan; and

 

	
  

	
(l)

	
“Share Compensation Agreement” means any stock option, stock plan, employee stock purchase plan or any other compensation or incentive mechanism involving the issuance or potential issuance of Common Shares, including a share purchase from treasury which is financially assisted by the Corporation by way of a loan, guarantee or otherwise.

 

Words importing the singular number include the plural and vice versa and words importing the masculine gender include the feminine.

 

This Plan is to be governed by and interpreted in accordance with the laws of the Province of Ontario and the federal laws of Canada applicable therein.

 

	
1.5

	
Available Shares

 

The maximum number of Common Shares available to be issued by NeuLion to Non-Management Directors under the Plan is 5,000,000.

 

  

2

  

 

ARTICLE 2

DIRECTORS PLAN

 

	
2.1

	
Directors’ Remuneration

 

The Board approves remuneration from time to time for each Non-Management Director whereby Non-Management Directors are paid in recognition of their services as board members and, if applicable, as chairs of Committees.  Non-Management Directors are also reimbursed for any out-of-pocket travel expenses incurred in order to attend meetings.  Management Directors of NeuLion are not currently entitled to any compensation for attending meetings of the Board or Committees.

 

	
2.2

	
Issuance of Common Shares

 

The Non-Management Directors of NeuLion shall receive at least 50% of their annual retainers and Board and Committee meeting fees by way of issuance of Common Shares and may elect to receive up to 100% of their retainers and fees in Common Shares in lieu of cash compensation.

 

	
2.3

	
Calculation for Common Shares

 

	
  

	
(a)

	
Every year, in the months of June and December, and by no later than the 15th day of June and December, as the case may be, NeuLion will send a notice (the “Notice”) to each Non-Management Director, that will solicit from such Director the amount of such Director’s cash compensation it wishes to receive in Common Shares, as more particularly described and set forth below.

 

	
  

	
(b)

	
Each June and December, a Non-Management Director will receive at least 50% of the Non-Management Director’s annual base compensation (including any base compensation applicable to the Chair of any Committee) and 50% of all accrued Board and Committee meeting fees in Common Shares in full satisfaction of such amounts owing.  A Non-Management Director may elect to receive additional Common Shares in lieu of cash compensation owing by NeuLion to the Non-Management Director at that time and will be required to advise NeuLion of the Non-Management Director’s election to receive additional Common Shares by no later than 5 business days after receipt of the Notice.

 

	
  

	
(c)

	
The number of Common Shares to be issued to each Non-Management Director will be determined by dividing the dollar value of the retainers and fees to be paid in Common Shares by the closing price of the Common Shares on (i) the Toronto Stock Exchange or (ii) any recognized stock exchange which trades the highest volume of Common Shares, on the date the compensation became due and payable to the relevant Director.

 

	
2.4

	
Issuance of Common Shares

 

  

3

  

 

Subject to Section 3.7, NeuLion will issue the relevant Common Shares to the relevant Directors following receipt of the Notice from each such Director and during the month of December or June, as the case may be, or such later time in the discretion of the Board.

 

 

ARTICLE 3

GENERAL

 

	
3.1

	
Non-Exclusivity

 

Nothing contained herein will prevent the Board from adopting other or additional compensation arrangements for the benefit of any Director of NeuLion, subject to any required regulatory or shareholder approval.

 

	
3.2

	
Cessation of Entitlement under the Plan

 

Upon ceasing to become a Director, a Director will no longer be eligible to receive Common Shares under this Plan and any amounts owing to such Director shall be paid in cash.

 

	
3.3

	
Amendment and Termination

 

	
  

	
(a)

	
The Board may, at any time and from time to time, amend, suspend or terminate the Plan without shareholder approval, provided that no such amendment, suspension or termination may be made without obtaining any required approval of any regulatory authority or stock exchange.

 

	
  

	
(b)

	
Notwithstanding the provisions of Section 3.3(a), the Board may not, without the approval of the shareholders of the Corporation, make amendments to the Plan for any of the following purposes:

 

	
  

	
(i)

	
to increase the maximum number of Common Shares issuable under the Plan; or

 

	
  

	
(ii)

	
to amend the provisions of this Section 3.3(b).

 

	
3.4

	
Compliance with Legislation; Governing Law

 

	
  

	
(a)

	
The obligation of NeuLion to issue and deliver Common Shares in accordance with this Plan is subject to applicable securities law, rules or regulations of any stock exchange or market on which the Common Shares trade, any trading black-out periods prescribed by NeuLion and the receipt of any approvals that may be required from any regulator or market having jurisdiction over the securities of NeuLion.

 

	
  

	
(b)

	
If Common Shares cannot be issued by NeuLion hereunder for any reason whatsoever, the obligation of NeuLion to issue such Common Shares shall be suspended until such time as it is practicable for NeuLion to issue such Common Shares.

 

  

4

  

 

	
  

	
(c)

	
The Plan shall be governed by and construed in accordance with the laws of the Province of Ontario.

 

	
3.5

	
Effective Date

 

This Plan will become effective immediately upon approval of the Board, subject to any required regulatory and shareholder approval.

 

	
3.6

	
Record Keeping

 

NeuLion shall maintain a register in which shall be recorded:

 

	
  

	
(a)

	
the name and address of each Non-Management Director participating in this Plan; and

 

	
  

	
(b)

	
the number of Common Shares issued to all Non-Management Directors pursuant to this Plan.

 

	
3.7

	
Taxes

 

NeuLion shall have the right to deduct and withhold from (or recover in respect of) any payment to be made pursuant to or in connection with this Plan the amount of any taxes required by law to be withheld from, or paid in connection with, such payment.  The Board may, in its discretion, permit a Director to elect to satisfy such withholding obligation through a cash payment to be made by the Director, through the surrender of shares already held by a Director in a manner acceptable to the Board, or through the surrender of shares which the Director is otherwise entitled to receive under the Plan.  NeuLion shall have the right to sell any of a Director’s Shares to satisfy or recover any taxes which are payable by NeuLion in respect of this Plan.  Where the withholding undertaken in connection with the foregoing is considered by the Board to be inadequate, the payment or delivery of property hereunder shall be conditional upon such Director (or other person) reimbursing or making arrangements satisfactory to NeuLion for the payment or provision of all required taxes.  For purposes hereof, “taxes” shall refer to any local, foreign, federal, provincial, state, social security or any other taxes or governmental charges of any kind whatsoever.

 

	
3.8

	
Director Responsibility

 

Neither NeuLion nor any of its subsidiaries shall assume any responsibility in respect of any tax consequences that arise from participation in the Plan by any Director or other person.  Such persons are urged to consult their own independent tax advisors in such regard.

 

 

 

5EX-10.1

Exhibit 10.1

PROMISSORY NOTE

	 	 	 	 	 
	$	50,000.00	 	 	May 30, 2012

Miami, FL

FOR VALUE RECEIVED, the undersigned, Non-Invasive Monitoring Systems, Inc., a Florida
corporation with its principal place of business at 4400 Biscayne Blvd., Miami, FL 33137 (“Maker”),
promises to pay to the order of Hsu Gamma Investments Trust, L.P., with its principal place of
business at 4400 Biscayne Blvd., 15th Floor Miami, FL 33137 (“Payee”), at such place as
may be designated in writing by Payee, the principal sum of FIFTY THOUSAND AND 00/XX ($50,000.00)
(this “Note”).

1. The principal amount of the loan evidenced hereby, together with any accrued and unpaid
interest, and any and all unpaid costs, fees and expenses accrued, shall be due and payable on
September 12, 2014 (the “Maturity Date”).

2. All amounts outstanding from time to time hereunder shall bear interest at the rate of
eleven percent (11%) per annum until such amounts are paid.

3. This Note may be prepaid in whole or in part without penalty or premium. All payments of
principal shall be made in lawful money of the United States which shall be legal tender in payment
of all debts, public and private, at the time of payment.

4. The Maker agrees to pay all costs of collection incurred in enforcing this Note, including
attorneys’ fees and costs at both trial and appellate levels and in any bankruptcy action. In the
event any legal proceedings are instituted in connection with, or for the enforcement of, this
Note, Payee shall be entitled to recover its costs of suit, including attorneys’ fees and costs, at
both trial and appellate levels and in any bankruptcy action.

5. Each maker, endorser and guarantor or any person, firm or corporation becoming liable under
this Note hereby consents to any extension or renewal of this Note or any part hereof, without
notice, and agrees that they will remain liable under this Note during any extension or renewal
hereof, until the debts represented hereby are paid in full.

6. All persons now or at any time liable for payment of this Note hereby waive presentment,
protest, notice of protest and dishonor. The Maker expressly consents to any extension or renewal,
in whole or in part, and all delays in time of payment or other performance which Payee may grant
at any time and from time to time without limitation and without any notice or further consent of
the undersigned. The remedies of Payee as provided herein shall be cumulative and concurrent and
may be pursued singularly, successively or together, at the sole discretion of Payee, and may be
exercised as often as the occasion therefor shall arise.

7. This Note is to be governed by and construed in accordance with the applicable laws of the
State of Florida. Any action brought upon the enforcement of this Note is hereby authorized to be
instituted and prosecuted in the state and federal courts located in Miami-Dade County, Florida, at
the election of Payee.

8. This Note may not be changed orally, but only by an agreement in writing, signed by the
party against whom enforcement of any waiver, change, modification or discharge is sought. This
Note shall not be assignable or transferable by Maker without the express written consent of Payee.

9. No delay on the part of Payee in exercising any right or remedy hereunder shall operate as
a waiver of such right or remedy. No single or partial exercise of a right or remedy shall
preclude other or further exercise of that or any other right or remedy. The failure of Payee to
insist upon strict performance of any term of this Note, or to exercise any right or remedy
hereunder, shall not be construed as a waiver or relinquishment by the Payee for the future use of
that term, right or remedy. No waiver of any right of the Payee is effective unless in writing
executed by the Payee.

10. The unenforceability or invalidity of any provision of this Note as to any person or
circumstances shall not render that provision or those provisions unenforceable or invalid as to
any other provisions or circumstances, and all provisions hereof, in all other respects, shall
remain valid and enforceable.

IN WITNESS WHEREOF, the undersigned has executed this Note on the date specified below.

DATE: May 30, 2012 MAKER:

NON-INVASIVE MONITORING SYSTEMS, INC.

By: James J. Martin

Its: Chief Financial Officer

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