Document:

Exhibit 10.4

 

3COM CORPORATION

 

DIRECTOR STOCK OPTION PLAN

(As Amended by the Board June 28, 2003)

 

1.     Purpose.  It is the purpose of this Director Stock Option Plan (the “Plan”)
to enable 3Com Corporation (the “Company”) and its subsidiaries to retain and
provide incentives to outside directors by offering them an opportunity to
acquire a proprietary interest in the Company.

 

2.     Eligibility and Administration.  Eligible participants shall be limited to
outside directors of the Company and its subsidiaries.  The Plan shall be administered by a
committee of the Company’s Board of Directors (the “Board”) consisting of its
directors who are also employees of the Company.  The Board and such committee are both referred to as the Board
and the committee shall have all the powers of the Board hereunder, including,
without limitation, the authority to, from time to time, establish guidelines
(the “Guidelines”) that determine the number of shares to be subject to the
options granted under the Plan, subject to the per option limits set forth in
Sections 4(b) and 4(c) and the restriction on amendment of the Guidelines
set forth in Section 9.  The
Guidelines must provide that on each grant date, the number of shares of Common
Stock subject to each option automatically granted pursuant to
Section 4(b) or 4(c), as the case may be, shall be equal for each eligible
participant, subject to distinctions based on the outside director’s position
as Chairman of the Board, designation as the “lead” outside director, and service
on Board committees.  All questions of
interpretation of the Plan or of any option shall be determined by the Board,
and such determinations shall be final and binding upon all persons having an
interest in the Plan or such option.

 

3.     Shares Subject to Plan.

 

(a)   Subject
to adjustment as provided in Section 3(b), the maximum number of shares of
the Company’s common stock (“Common Stock”) and rights to acquire Common Stock
that may be issued pursuant to this Plan shall be 9,062,453 shares (as adjusted
for stock splits and stock dividends, and similar events).  Options or shares that are issued to
participants under the Plan and terminate without being exercised shall revert
to the status of authorized but unissued options or shares under the Plan.

 

(b)   In
the event of any stock dividend, stock split, reverse stock split,
recapitalization, combination, reclassification or similar change in the
capital structure of the Company, appropriate adjustments shall be made in the
number and class of shares subject to the Plan, the Guidelines and the per
option limits set forth in Section 4, and to any outstanding options
granted under the Plan, and in the exercise price of such outstanding options.

 

4.     Rights Issuable Under the Plan.

 

(a)   During
the term of the Plan, eligible participants shall be granted options to acquire
shares of the Common Stock of the Company (“Options”) as provided in this
Section 4.  Each Option shall be
exercisable immediately as to all shares of Common Stock subject to the Option,
subject to the Company’s right to repurchase at the original exercise price,
which right shall lapse pursuant to the applicable vesting schedule, as
specified below.  All Options shall be
subject to the terms and conditions set forth in the forms of Nonqualified
Stock Option Agreement attached hereto as Exhibit 1; provided, however,
that the Board may at the time of grant of any Option make 

 

 

such
modifications to such terms and conditions as are otherwise in compliance with
the restrictions contained in the Plan.

 

(b)   The
Board shall grant an Option to purchase that number of shares as may be
specified in the Guidelines then currently in effect (the “Guideline Amount”)
for service on the Board, not to exceed 120,000 shares of Common Stock (or
160,000 shares if the participant is the lead director or Chairman of the Board
on the date of grant), to each eligible participant at the first Board meeting
following the date upon which he or she first becomes eligible (the “Initial
Grant”).  Subject to accelerated vesting
upon a Transfer of Control (as specified in the option agreement), the Initial
Grant shall vest as to 25% of the shares subject thereto on each anniversary of
the date of grant, so as to be 100% vested on the fourth anniversary of the
date of grant, subject to the optionee remaining as a director through such
vesting dates.  Thereafter, on the date
of the Company’s regularly scheduled annual stockholder meeting, the Board
shall grant an additional Option to each eligible participant to purchase that
number of shares equal to the Guideline Amount for service on the Board, not to
exceed 120,000 shares of Common Stock (or 160,000 shares if the participant is
the lead director or Chairman of the Board on the date of grant) (the “Annual
Grants”).  Subject to accelerated
vesting upon a Transfer of Control (as specified in the option agreement),
Annual Grants shall vest as to 50% of the shares subject thereto on the day
prior to the next year’s regularly scheduled Company annual stockholder meeting
and as to the balance of the shares subject thereto on the day prior to the
next year’s regularly scheduled Company annual stockholder meeting, so as to be
100% vested on the day prior to the Company annual stockholder meeting held
approximately two years following the grant date, subject to the optionee
remaining a director through such vesting dates.  Additionally, at the time an Initial Grant is made to a new
director, he or she shall receive an option grant with the number of shares subject
thereto equal to the Guideline Amount multiplied by a fraction, the numerator
of which is the number of full months of service remaining prior to the next
annual stockholder meeting and the denominator of which is 12 (the “Pro-Rata
Grant”).  Subject to accelerated vesting
upon a Transfer of Control (as specified in the option agreement), the Pro-Rata
Grant will vest as to 50% of the shares subject thereto on each anniversary of
the date of grant, so as to be 100% vested on the second anniversary of the
date of grant, subject to the optionee remaining as a director through such
vesting dates.

 

(c)   In
addition to the Options granted by the Board pursuant to Section 4(b), the
Board shall grant an Option (at the same time and upon the same terms and which
may be combined with the Section 4(b) grants) to purchase that number of shares
equal to the Guideline Amount for service on a Standing Committee, not to
exceed 48,000 shares of Common Stock, to each eligible participant serving on a
Standing Committee of the Board at the first meeting of the Board occurring on
or after the date on which he or she begins to serve on a Standing
Committee.  A Standing Committee shall
mean the Audit Committee, Compensation Committee or the Technology Committee of
the Board.

 

5.     Consideration.  The exercise price for Options shall be
payable by (i) delivery of cash or check, (ii) tender of shares of
Common Stock having a fair market value equivalent to the purchase or exercise
price, or (iii) delivery of a promissory note payable to the Company;
provided, however, that the Board may impose at the time of any grant of rights
hereunder such restrictions on the exchange of Common Stock or delivery of a
promissory note as the Board may deem appropriate or necessary and that any
promissory note shall be secured by such collateral as is required by the
attached form of Nonqualified Stock Option Agreement, or as the Board shall
otherwise determine at the time of grant.

 

2

 

6.     Exercise Price.  The exercise price payable upon exercise of
any Option shall be at least equal to the fair market value of a share of
Common Stock as determined by the Board on the date of grant.

 

7.     Limitation on Exercisability.  No right granted hereunder shall be
exercisable for a period of more than ten years after the date of grant.

 

8.     Restriction on Transfer of Options.  No Option may be transferred in any manner
whatsoever, other than by the laws of descent and distribution.  Options may be exercised during the lifetime
of the optionee only by the optionee.

 

9.     Termination or Amendment.  The Board, including any duly appointed
committee of the Board, may terminate or amend the Plan at any time; provided,
however, that without the approval of the shareholders of the Company, there
shall be (a) no increase in the total number of shares of stock covered by
the Plan (except by operation of the provision of Section 3, above), and
(b) no expansion in the class of persons eligible to receive Options.  In any event, no amendment may adversely
affect any then outstanding Option, or any unexercised portion thereof, without
the consent of the optionee.

 

10.     Separation From Board Service.

 

(a)   Early Separation.  Upon a participant’s termination of Board
service occurring within six months of such participant becoming an outside
director (other than a termination of service due to the participant’s death or
permanent and total disability), then participant’s options shall cease to vest
on the termination date and shall remain exercisable, to the extent vested on the
termination date, for one year following the date of termination (but in no
event longer than the original term of the option).

 

(b)     Normal Separation; Death or Disability Separation.  Upon a participant’s termination of Board
service that is not a Qualifying Board Retirement (i) occurring at least six
(6) months following the commencement of such service, or (ii) that is pursuant
to the participant’s death or permanent and total disability (as defined in
Internal Revenue Code Section 22(e)(3)), all of his or her Plan Options shall
vest as to one additional year’s vesting or, with respect to an Annual Grant,
as to the number of shares that would have vested on the day prior to the next
regularly scheduled meeting of the stockholders, and shall remain exercisable
for one year following such separation from service (but in no event longer
than the original term of the option).

 

(c)   Qualifying Board Retirement.  Upon a participant’s Qualifying Board
Retirement, all of his or her Plan Options shall vest 100% and shall remain
exercisable for three years following the date of such retirement (but in no
event longer than the original term of the option).  For purposes of this Plan, a Qualifying Board Retirement means an
outside director’s termination from Board membership, including pursuant to the
outside director’s death or permanent and total disability (as defined in
Internal Revenue Code Section 22(e)(3)), if such termination follows ten full
years of Board service or five full years of Board service and attainment of
age 62 or greater.

 

3Exhibit 4.1 for Abazias

                              CONSULTING AGREEMENT

         THIS CONSULTING AGREEMENT, dated as of October 10, 2003 (the
"Agreement"), by and between Abazias, Inc., a Delaware Corporation (the
"Company") and Rob Rill (the "Consultant") (a "Party", collectively, the
"Parties").

                                    RECITALS

         WHEREAS, the Company has requested of Consultant and the Consultant has
agreed to provide certain strategic, financial and other general corporate
consulting services to the Company.

         WHEREAS, in connection with and in consideration for such services, the
Company has agreed to compensate Consultant with warrants to purchase common
stock of the Company in lieu of cash payment.

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

         1.       Services.        Consultant agrees to familiarize itself to
the extent it deems appropriate and feasible with the business, operations,
properties, financial condition and prospects of the Company and to perform and
provide, as the Company reasonably and specifically requests, certain strategic,
financial, and other general corporate consulting services to the Company
("Services"), including but not limited to: (i) identifying prospective
strategic partners and strategic alliances (except reverse mergers designed to
take a private company public); (ii) planning, strategizing and negotiating with
potential strategic business partners; (iii) assisting with business
development; (iv) reporting as to developments concerning the industry which may
be relevant or of interest or concern to the Company or the Company's business;
(v) developing strategic planning issues; (vi) providing management consulting
services including: analyzing historical operational performance, reviewing
operational performance of the Company, making recommendations to enhance the
operational efficiency of the Company; and (vii) consulting on alternatives to
enhance the growth of the Company. NONE OF THE SERVICES PROVIDED BY CONSULTANT
HEREIN SHALL INVOLVE THE RAISING OF DEBT OR EQUITY CAPITAL, AND NOTHING IN THIS
AGREEMENT SHALL BE CONSTRUED AS TO OBLIGATE OR REQUIRE THE CONSULTANT TO RAISE
DEBT OR EQUITY CAPITAL.

The Parties hereby confirm and acknowledge that the services rendered by
Consultant hereunder: (a) consist and will consist of bona fide services
rendered and to be rendered to Company, (b) are not and will not be in
connection with the offer or sale of securities in capital raising transactions,
and (c) do not and will not promote or maintain a market for the securities of
Company.

                                       1

         2.       Compensation.    (i) In consideration of the Services to be
provided by the Consultant, and in lieu of a cash payment, the Company agrees to
issue to Consultant 7,000,000 shares of common stock of the Company.

                           (ii)     The Company hereby agrees to register the
Shares by filing a Form S-8 Registration Statement covering the Shares on the of
the date of this Agreement. Consultant shall take any action reasonably
requested by the Company in connection with registration or qualification of the
Shares under federal or state securities laws

                           (iii)    It is expressly understood and agreed that
in connection with the Services to be performed by the Consultant, the
Consultant shall be solely responsible for any and all taxes arising from the
consulting fees paid to the Consultant hereinafter.

         3.       Term.    Consultant's engagement shall be for a period of
Twelve (12) months ("Term"). Thereafter, the agreement may be terminated by
either the Company or Consultant at any time, with or without cause, upon
written notice to that effect to the other party.

         4.       Information.      The Company shall furnish Consultant such
information as Consultant reasonably requests in connection with the performance
of its services hereunder (all such information so furnished is referred to
herein as the "Information"). The Company understands and agrees that
Consultant, in performing its services hereunder, will use and rely upon the
Information as well as publicly available information regarding the Company and
any potential partners and that Consultant shall not assume responsibility for
independent verification of any information, whether publicly available or
otherwise furnished to it, concerning the Company or any potential partner,
including, without limitation, any financial information, forecasts or
projections, considered by Consultant in connection with the rendering of its
services. Accordingly, Consultant shall be entitled to assume and rely upon the
accuracy and completeness of all such information and is not required to conduct
a physical inspection of any of the properties or assets, or to prepare or
obtain any independent evaluation or appraisal of any of the assets or
liabilities, of the Company or any potential partner. With respect to any
financial forecasts and projections made available to Consultant by the Company
or any potential partners and used by Consultant in its analysis, Consultant
shall be entitled to assume that such forecasts and projections have been
reasonably prepared on bases reflecting the best currently available estimates
and judgments of the management of the Company or any potential partner, as the
case may be, as to the matters covered thereby.

         5.       Timely Appraisals.        The Company hereby agrees to use its
commercially reasonable efforts to keep Consultant up to date and apprised of
all business, market and legal developments related to the Company and its
operations and management. Accordingly:

                           (i)      the Company shall provide Consultant with
copies of all amendments, revisions and changes to its business and marketing
plans, bylaws, articles of incorporation, private placement memoranda, key
contracts, employment and consulting agreements and other operational
agreements;

                                       2

                           (ii)     the Company shall promptly notify Consultant
of all new contracts agreements, joint ventures or filings with any state,
federal or local administrative agency, including without limitation the SEC,
NASD or any state agency, and shall provide all related documents, including
copies of the exact documents filed, to Consultant, including without
limitation, all annual reports, quarterly reports and notices of change of
events, and registration statements filed with the SEC and any state agency,
directly to Consultant;

                           (iii)    the Company shall also provide directly to
Consultant current financial statements, including balance sheets, income
statements, cash flows and all other documents provided or generated by the
Company in the normal course of its business and requested by Consultant from
time to time; and

                           (iv)     Consultant shall keep all documents and
information supplied to it hereunder confidential.

         6.       Representations and Warranties.    The Consultant hereby
represents and warrants to the Company that:

                           (i)      he has full legal capacity to enter into
this Agreement and to provide the Services hereunder without violation or
conflict with any other agreement or instrument to which the Consultant is a
party or may be bound;

                           (ii)     in the course of performing the Services
hereunder, the Consultant will not infringe the patent, trademark or copyright
(collectively, "Intellectual Property") of any third party;

                           (iii)            the execution, delivery and
performance of this Agreement does not and will not conflict with, violate or
breach its constituent documents or any agreement (including, without
limitation, any other distribution agreement), decree, order or judgment or any
law or regulation to which it is a party or subject or by which it or any of its
properties or assets is bound.

         7.       Relationship of the Parties.       The Consultant shall be an
independent contractor and the Consultant shall not be considered in any manner
an employee of the Company and the relationship of the Company and the
Consultant shall not in any manner create an employer-employee relationship
between the parties.

         8.       Reliance on Others.  The Company confirms that it will rely on
its own counsel, accountants and other similar expert advisors for legal,
accounting, tax and other similar advice.

         9.       No Rights in Shareholders, etc.  The Company recognizes that
Consultant has been engaged only by the Company, and that the Company's
engagement of Consultant is not deemed to be on behalf of and is not intended to
confer rights upon any shareholder, partner or other owner of the Company or any
other person not a party hereto as against Consultant or any of its affiliates
or any of their respective directors, officers, agents, employees or
representatives. Unless otherwise expressly agreed, no one other than the
Company is authorized to rely upon the Company's engagement of Consultant or any
statements, advice, opinions or conduct by Consultant. Without limiting the
foregoing, any opinions or advice rendered to the Company's Board of Directors
or management in the course of the Company's engagement of Consultant are for
the purpose of assisting the Board or management, as the case may be, in
evaluating the Transaction and do not constitute a recommendation to any
shareholder of the Company concerning action that such shareholder might or
should take in connection with the Transaction. Consultant's role herein is that
of an independent contractor; nothing herein is intended to create or shall be
construed as creating a fiduciary relationship between the Company and
Consultant.

                                       3

         10.      No Waiver.        The failure of any of the parties hereto to
enforce any provision hereof on any occasion shall not be deemed to be a waiver
of any preceding or succeeding breach of such provision or of any other
provision.

         11.      Entire Agreement.  This Agreement constitutes the entire
Agreement and understanding of the parties hereto.

         12.      Amendments.               No amendment, modification or waiver
of any provision herein shall be effective unless in writing, executed by each
of the parties hereto.

         13.      Governing Law; Jurisdiction.       This  Agreement shall be
construed, interpreted and enforced in accordance with and shall be governed by
the laws of the State of Florida applicable to agreements made and to be
performed entirely therein. In the event that either Party hereto shall take
legal action to enforce any of the provisions of this Agreement, the Parties
agree that the exclusive jurisdiction for such legal action shall be the state
courts of Florida or the federal courts residing in the State of Florida.

         14.      Binding Effect.   This Agreement shall bind and inure to the
benefit of the Parties, their successors and assigns.

         15.      Notices. Any notice under the provisions of this Agreement
shall be deemed given when received and shall be given by hand, reputable
overnight courier service or by registered or certified mail, return receipt
requested, directed to the addresses set forth above, unless notice of a new
address has been sent pursuant to the terms of this section.

         16.      Unenforceability;Severability.  If any provision of this
Agreement is found to be void or unenforceable by a court of competent
jurisdiction, the remaining provisions of this Agreement shall, nevertheless, be
binding upon the Parties with the same force and effect as though the
unenforceable part had been severed and deleted.

         17.      Counterparts.  This Agreement may be executed in one or more
counterparts, all of which shall be deemed to be duplicate originals.

                                       4

         IN WITNESS WHEREOF, the Parties hereto have executed this instrument
the date first above written.

                                         Abazias, Inc.

                                         ---------------------------------------
                                         Oscar Rodriguez, President

                                         CONSULTANT

                                         By:
                                            ------------------------------------
                                              Rob Rill

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}]]