Document:

Exhibit 10

Exhibit 10.22

 

TO BE ATTACHED TO

THE ORIGINAL AMENDED AND RESTATED REVOLVING

NOTE

 

FIRST MODIFICATION OF

AMENDED AND RESTATED REVOLVING

NOTE

 

THIS

FIRST MODIFICATION OF AMENDED AND RESTATED REVOLVING NOTE (the “Note

Modification”) is dated as of the 23 day of May, 2002, and is made by and

between ON-SITE SOURCING, INC., a

Delaware corporation (the “Borrower”), having an address at 1111 North

Nineteenth Street, 6th Floor, Arlington, Virginia 22209 and WACHOVIA BANK, NATIONAL ASSOCIATION, successor-in-interest

to First Union National Bank, a national banking association (the “Lender”),

having an address at 1970 Chain Bridge Road, McLean, Virginia 22102.

 

RECITALS:

 

R-1.     The

Lender made a loan in the form of a revolving line of credit (the “Line of

Credit”) to the Borrower in the maximum principal sum of $7,000,000.00,

evidenced by an Amended and Restated Revolving Note dated as of May 30, 2001

(the “Note”).

 

R-2.     The

Line of Credit is governed and secured by that certain Amended and Restated

Revolving Line of Credit Loan Agreement, Term Loans Agreement and Security

Agreement executed by the Borrower and the Lender dated as of May 30, 2001, as

modified by that certain First Modification of Amended and Restated Revolving

Line of Credit Loan Agreement, Term Loans Agreement and Security Agreement

dated as of July 2, 2001 (collectively, the “Original Loan Agreement”).

 

R-3.     The

Borrower and the Lender have agreed to modify the Note to extend the Maturity

Date, to reduce the amount of the LIBOR-based interest rate option, and for

certain other purposes.  In addition to

and in conjunction with entering into the Note Modification, Borrower and

Lender have contemporaneously entered into a certain Second Modification of

Amended and Restated Revolving Line of Credit Loan Agreement, Term Loans

Agreement and Security Agreement of even date herewith (the “Second Loan

Agreement Modification”), thereby, among other things, extending the “Ending

Date” as defined in the Original Loan Agreement to May 31, 2003, and modifying

the Original Loan Agreement to reflect that it governs and secures the Note, as

modified by this Note Modification (the Original Loan Agreement, as modified by

the Second Loan Agreement Modification, being collectively referred to as the

“Loan Agreement”)

 

NOW,

THEREFORE, in consideration of the mutual agreements and covenants contained in

this Agreement, the parties agree as follows:

 

1.                                       Interest. The first sentence of

Paragraph 1(b) under the section entitled “Interest” of the Note is

hereby modified to read as follows:

 

 

“(b) Borrower may elect, by not less tan

three (3) days prior written notice to Lender, to have interest on the entire

principal balance outstanding from time to time accrue at a fluctuating rate

equal to the LIBOR Market Index Rate (hereinafter defined) in effect from time

to time plus Two and Twenty One-Hundredths percent (2.20%).”

 

The interest rate modification set forth

above shall be effective as of the date of this Note Modification. All of the

remaining portions of paragraph 1 entitled “Interest” are unmodified and

remain in full force and effect.

 

2.                                       Maturity Date. The definition of

Maturity Date, as defined in the Note, is hereby modified to mean May 31, 2003.

 

3.                                       Loan Agreement. The Note, as modified by

this Note Modification, and the loans evidenced thereby, shall be governed and

secured by the Loan Agreement.

 

4.                                       Affirmation of Provisions. Except as

modified by this Note Modification, the provisions of the Note are hereby

reaffirmed and remain in full force and effect. The Borrower warrants that it

has no offsets or defenses against the Note, as modified. If the term Borrower

comprises more than one person or entity, the liability of such persons or

entities hereunder shall be joint and several.

 

IN

WITNESS WHEREOF, the parties to this First Modification of Amended and Restated

Revolving Note have set their hands and seals as of the date and year first

written above, the Lender having signed this First Modification of Amended and

Restated Revolving Note only for the purpose of consenting to the modification

herein contained.

 

	

   

  	

  ON-SITE

  SOURCING, INC., 

  a Delaware corporation

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Jason Parikh

  	

  (SEAL)

  
	

   

  	

  Name:

  	

  Jason Parikh

  	

   

  
	

   

  	

  Title:

  	

  CFO

  	

   

  
	

   

  	

   

  
	

   

  	

  WACHOVIA

  BANK, NATIONAL

  
	

   

  	

  ASSOCIATION,

  successor-in-interest to First 

  Union National Bank

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Monica Sevilla

  	

  (SEAL)

  
	

   

  	

  Name:

  	

  Monica Sevilla

  	

   

  
	

   

  	

  Title:

  	

  Vice President

  	

   

  
					

 

2

 

COMMONWEALTH

OF VIRGINIA

COUNTY OF Arlington: to wit:

 

I,

the undersigned Notary Public in and for the aforesaid jurisdiction, do hereby

certify that Jason Parikh as CFO of On-Site Sourcing, Inc., whose name is

signed to the foregoing First Modification of Amended and Restated Revolving

Note, personally appeared before me within the aforesaid jurisdiction and

acknowledged the same.

 

GIVEN under my hand and seal this 22nd

day of May, 2002.

 

	

   

  	

  /s/ A.

  Touloumes-Britt

  
	

   

  	

  Notary

  Public

  
	

  My

  Commission expires:

  	

  6/30/05

  	

   

  	

   

  
				

 

 

 

COMMONWEALTH

OF VIRGINIA

COUNTY OF [ILLEGIBLE]: to wit:

 

I,

the undersigned Notary Public in and for the aforesaid jurisdiction, do hereby

certify that [ILLEGIBLE] as Vice President of Wachovia Bank, National

Association, successor-in-interest to First Union National Bank, whose name is

signed to the foregoing First Modification of Amended and Restated Revolving

Note, personally appeared before me within the aforesaid jurisdiction and

acknowledged the same.

 

GIVEN under my hand and seal this 23rd

day of May, 2002.

 

	

   

  	

  /s/ Jeanne

  M. McKee

  
	

   

  	

  Notary

  Public

  
	

  My

  Commission expires:

  	

  August 31, 2004

  	

   

  	

   

  
				

 

3Exhibit 10.1

 

MICROVISION, INC. INDEPENDENT DIRECTOR STOCK OPTION PLAN

Table of Contents

 

MICROVISION, INC.

INDEPENDENT DIRECTOR STOCK OPTION PLAN

Table of Contents 

	

  1.

  	

  Purpose

  
	

   

  	

   

  
	

  2.

  	

  Administration

  
	

   

  	

   

  
	

   

  	

  2.1

  	

  Procedures

  
	

   

  	

   

  	

   

  
	

   

  	

  2.2

  	

  Powers

  
	

   

  	

   

  	

   

  
	

   

  	

  2.3

  	

  Limited Liability

  
	

   

  	

   

  	

   

  
	

   

  	

  2.4

  	

  Securities Exchange Act

  of 1934

  
	

   

  	

   

  
	

  3.

  	

  Stock Subject to This Plan

  
	

   

  	

   

  
	

  4.

  	

  Eligibility

  
	

   

  	

   

  
	

  5.

  	

  Independent Director

  Stock Options

  
	

   

  	

   

  	

   

  
	

   

  	

  5.1

  	

  Awards

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  (a) Mandatory Awards

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  (b) Discretionary Awards

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  (c) Special One-Time Grant

  
	

   

  	

   

  	

   

  
	

   

  	

  5.2

  	

  Exercise Price

  
	

   

  	

   

  	

   

  
	

   

  	

  5.3

  	

  Vesting

  
	

   

  	

   

  	

   

  
	

   

  	

  5.4

  	

  Nontransferability

  
	

   

  	

   

  	

   

  
	

   

  	

  5.5

  	

  Termination of Options

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  (a)

  Generally

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  (b) Disability or Death

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  (c) Failure to

  Exercise Option; Expiration

  
	

   

  	

   

  
	

  6.

  	

  Option Agreements

  
	

   

  	

   

  
	

  7.

  	

  Exercise

  
	

   

  	

   

  	

   

  
	

   

  	

  7.1

  	

  Procedure

  
	

   

  	

   

  	

   

  
	

   

  	

  7.2

  	

  Payment

  
	

   

  	

   

  	

   

  
	

   

  	

  7.3

  	

  Withholding

  
	

   

  	

   

  	

   

  
	

   

  	

  7.4

  	

  Conditions Precedent

  to Exercise

  
	

   

  	

   

  
	

  8.

  	

  Foreign Qualified Grants

  

 

i

 

	

  9.

  	

  Adjustments On

  Changes in Capitalization

  
	

   

  	

   

  	

   

  
	

   

  	

  9.1

  	

  Stock Splits, Capital Stock Adjustments

  
	

   

  	

   

  	

   

  
	

   

  	

  9.2

  	

  Effect of Certain Events

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  (a) Change in Control

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  (b) Liquidation; Dissolution

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  (c) Recapitalizations

  
	

   

  	

   

  	

   

  
	

   

  	

  9.3

  	

  Fractional Shares

  
	

   

  	

   

  	

   

  
	

   

  	

  9.4

  	

  Determination of

  Board to Be Final

  
	

   

  	

   

  
	

  10.

  	

  Securities Regulations

  
	

   

  	

   

  
	

  11.

  	

  Amendment and Termination

  
	

   

  	

   

  	

   

  
	

   

  	

  11.1

  	

  Plan

  
	

   

  	

   

  	

   

  
	

   

  	

  11.2

  	

  Automatic Termination

  
	

   

  	

   

  
	

  12.

  	

  Miscellaneous

  
	

   

  	

   

  	

   

  
	

   

  	

  12.1

  	

  Time of Granting Options

  
	

   

  	

   

  	

   

  
	

   

  	

  12.2

  	

  No Status as Shareholder

  
	

   

  	

   

  	

   

  
	

   

  	

  12.3

  	

  Reservation of Shares

  
	

   

  	

   

  
	

  13.

  	

  Effectiveness of This Plan

  

 

ii

 

        1.    Purpose.    The

purpose of the Independent Director Stock Option Plan (the “Plan”) is to

provide a means by which Microvision, Inc. (the “Company”), may attract

and retain the best available personnel as non-employee directors of the

Company (“Independent Directors”) and of its subsidiaries and to provide added

incentive to such persons by increasing their ownership interest in the

Company.

        2.    Administration.    This

Plan shall be administered by the Board of Directors of the Company (the

“Board”) or, if the Board shall authorize a committee of the Board to

administer this Plan, by such committee to the extent so authorized; provided,

however, that only the Board may suspend, amend or terminate this Plan as

provided in Section 11.1. The administrator of this Plan is referred to as

the “Plan Administrator.”

        2.1    Procedures.    The

Board shall designate one member of the Plan Administrator as chairman. The

Plan Administrator may hold meetings at such times and places as it shall

determine. The acts of a majority of the members of the Plan Administrator

present at meetings at which a quorum exists, or acts approved in writing by

all Plan Administrator members, shall constitute valid acts of the Plan

Administrator.

        2.2    Powers.    Subject

to the specific provisions of this Plan, the Plan Administrator shall have the

authority, in its discretion: (a) to grant the stock options described in

Section 5; (b) to determine, in accordance with Section 5.2 of

this Plan, the exercise price per share of options; (c) to interpret this

Plan; (d) to prescribe, amend and rescind rules and regulations relating

to this Plan; (e) to determine the terms and provisions of each option

granted and, with the consent of the Optionee, modify or amend each option;

(f) to defer, with the consent of the Optionee, or to accelerate the

exercise date of any option; (g) to waive or modify any term or provision

contained in any option applicable to the underlying shares of common stock of

the Company (the “Common Stock”); (h) to authorize any executive officer

to execute on behalf of the Company any instrument required to effectuate the

grant of an option; and (i) to make all other determinations deemed

necessary or advisable for the administration of this Plan. The interpretation

and construction by the Plan Administrator of any terms or provisions of this

Plan, any option issued hereunder or of any rule or regulation promulgated in

connection herewith and all actions taken by the Plan Administrator shall be

conclusive and binding on all interested parties. The Plan Administrator may

delegate administrative functions to individuals who are officers or employees

of the Company.

        2.3    Limited

Liability.    No member of the Board or the

Plan Administrator or officer of the Company shall be liable for any action or

inaction of the entity or body, or another person or, except in circumstances

involving bad faith, of himself or herself. Subject only to compliance with the

explicit provisions hereof, the Board and Plan Administrator may act in their

absolute discretion in all matters related to the Plan.

        2.4    Securities Exchange Act of 1934.    At

any time that the Company has a class of securities registered pursuant to

Section 12 of the Securities Exchange Act of 1934, as amended (the

“Exchange Act”), this Plan shall be administered in accordance with

Rule 16b-3 adopted under the Exchange Act and Section 162(m) of the

Internal Revenue Code of 1986, as amended (the “Code”), and the regulations,

proposed and final, thereunder, as all may be amended from time to time.

        3.    Stock Subject to This Plan.    Subject

to adjustment as provided below and in Section 9 hereof, the stock subject

to this Plan shall be the Common Stock, and the total number of shares of

Common Stock to be delivered on the exercise of all options granted under this

Plan shall not exceed 500,000 shares as such Common Stock was constituted on

the date on which this Plan was first adopted by the Board as set forth on the

last page hereof. If any option granted under this Plan expires, is

surrendered, exchanged for another option, canceled or terminated for any

reason without having been exercised in full, the unpurchased shares subject

thereto shall again be available for purposes of this

 

1

 

Plan,

including for replacement options that may be granted in exchange for such

surrendered, canceled or terminated options. Shares issued on exercise of

options granted under this Plan may be subject to restrictions on transfer,

repurchase rights or other restrictions as determined by the Plan

Administrator.

        4.    Eligibility.    The

Plan Administrator shall award options to any current or future Independent

Director of the Company, and may award options to any current or future

non-employee director of any subsidiary thereof. As used in this Plan, the term

“subsidiary” of the Company shall mean any corporation or other business entity

in which the Company owns, directly or indirectly, stock or other equity

interests equal to 50% or more of the total combined voting power of all

classes of stock or other equity interests thereof. To the extent that the Plan

Administrator awards options hereunder to a non-employee director of any

subsidiary of the Company, the term “Independent Director” as used herein shall

refer to such person and the term “Company,” as required by the context, shall

refer to the subsidiary and not to Microvision, Inc. Any party to whom an

option is granted under this Plan is referred to as an “Optionee.”

        5.    Independent Director Stock Options.

        5.1    Awards.

        (a)    Mandatory

Awards.    The Plan Administrator shall

grant to each Independent Director (i) an option to purchase 15,000 shares

of Common Stock on the date upon which he or she is first elected or appointed

to the Board, such option to be fully vested and exercisable as of the date of

election or appointment, and (ii) an option to purchase an additional

15,000 shares of Common Stock on the date upon which he or she is

(A) first elected or appointed to the Board and (B) subsequently

reelected to the Board, which options shall vest in accordance with

Section 5.3.

        (b)    Discretionary

Awards.    The Plan Administrator shall have

the authority, but not the obligation, to grant to each or any Independent

Director an option to purchase any number of shares of Common Stock as the Plan

Administrator may in its discretion determine, subject to the limitations set

forth in Section 3, which option shall vest and shall have an exercise

price as the Plan Administrator may in its discretion determine.

        (c)    Special

One-Time Grant.    The Plan Administrator

shall grant to each Independent Director serving as of October 25, 2001,

an option to purchase 10,000 shares of Common Stock, which option shall have a

grant date of October 25, 2001, shall have an exercise price determined in

accordance with Section 5.2 and shall vest concurrently with the options granted

under the Plan to Independent Directors on June 6, 2001.

        5.2    Exercise

Price.    The exercise price of options

issued under the Plan will be the average closing price of the Company’s Common

Stock as reported on the Nasdaq National Market or, if the Common Stock is no

longer listed thereon, such other principal exchange or market (including the

over-the-counter market) for the Company’s Common Stock, during the ten

(10) trading days prior to the date of grant.

        5.3    Vesting.    To

ensure that the Company will achieve the purposes of and receive the benefits

contemplated in this Plan, options granted pursuant to the Plan will become

vested in full as of the earlier of (i) the day prior to the date of the

Company’s Annual Meeting of Shareholders next following the date of grant, or

(ii) one year from the date of grant, provided the Independent Director

continues to serve as an Independent Director of the Company or is employed by

the Company or a subsidiary of the Company as of such vesting date.

 

2

 

        5.4    Nontransferability.    Options

granted under this Plan and the rights and privileges conferred hereby may not

be transferred, assigned, pledged or hypothecated in any manner (whether by

operation of law or otherwise) other than by will or by the applicable laws of

descent and distribution, shall not be subject to execution, attachment or

similar process, and shall be exercisable during the Optionee’s lifetime only

by the Optionee. Any purported transfer or assignment in violation of this

provision shall be void.

        5.5    Termination

of Options.

        (a)    Generally.    Unless

earlier termination results from the application of the provisions of this

Section 5.5, each option granted hereunder shall expire and all rights of

the Optionee thereunder shall cease and terminate on the tenth anniversary of

the date of its grant.

        (b)    Disability

or Death.    If an Optionee is unable to

continue his or her service as an Independent Director of the Company as a

result of his or her permanent and total disability (as defined in

Section 22(e)(3) of the Code) or death, all unvested options issued under

the Plan to such Optionee will become vested immediately as of the date of

disability or death. In such an event, the option may be exercised at any time

before the earlier of (i) the expiration date of the option or

(ii) twelve (12) months after the date of (A) permanent and

total disability or (B) death (by the person or persons to whom such Optionee’s

rights under the option shall pass by the Optionee’s will or by the applicable

laws of descent and distribution), for up to the full number of shares of

Common Stock covered thereby.

        (c)    Failure to Exercise Option; Expiration.    To

the extent that an Optionee fails to exercise an option within the period

provided in this Section 5.5, all rights to purchase shares of Common

Stock pursuant to such options shall cease and terminate.

        6.    Option

Agreements.    Options granted under this

Plan shall be evidenced by written stock option agreements (the “Option

Agreements”) that shall contain such terms, conditions, limitations and

restrictions as the Plan Administrator shall deem advisable and that are

consistent with this Plan. All Option Agreements shall include or incorporate

by reference the applicable terms and conditions contained in this Plan.

        7.    Exercise.

        7.1    Procedure.    Subject

to Section 5.3 above, each option may be exercised in whole or in part;

provided, however, that no fewer than 100 shares (or the remaining shares then

purchasable under the option, if less than 100 shares) may be purchased on any

exercise of any option granted hereunder and that only whole shares will be

issued pursuant to the exercise of any option (the number of 100 shares shall

not be changed by any transaction or action described in Section 9 unless

the Plan Administrator determines that such a change is appropriate). Options

shall be exercised by delivery to the Secretary of the Company or his or her

designated agent of notice of the number of shares with respect to which the

option is being exercised, together with payment in full of the exercise price

and any applicable withholding taxes.

        7.2    Payment.    Payment

of the option exercise price shall be made in full when the notice of exercise

of the option is delivered to the Secretary of the Company or his or her

designated agent and shall be by personal, bank certified or cashier’s check or

through irrevocable instructions to a stock broker to deliver the amount of

sales proceeds necessary to pay the appropriate exercise price and withholding

tax obligations, all in accordance with applicable governmental regulations,

for the shares of Common Stock being purchased. The

 

3

 

Plan Administrator may determine at any time before

exercise that additional forms of payment will be permitted.

        7.3    Withholding.    Before

the issuance of shares of Common Stock on the exercise of an option, the

Optionee shall pay to the Company the amount of any applicable federal, state

or local tax withholding obligations. The Company may withhold any distribution

in whole or in part until the Company is so paid. The Company shall have the

right, subject to applicable law, to withhold such amount from any other

amounts due or to become due from the Company to the Optionee, or to retain and

withhold a number of shares having a market value not less than the amount of

such taxes required to be withheld by the Company, to reimburse it for any such

taxes and cancel (in whole or in part) any such shares so withheld.

        7.4    Conditions Precedent to Exercise.    The

Plan Administrator may establish conditions precedent to the exercise of any

option, which shall be described in the relevant Option Agreement.

        8.    Foreign Qualified Grants.    Options

under this Plan may be granted to Independent Directors of the Company who

reside in foreign jurisdictions. The Board may adopt supplements to the Plan as

needed to comply with the applicable laws of such foreign jurisdictions and to

give Optionees favorable treatment under such laws; provided, however, that no

award shall be granted under any such supplement on terms more beneficial to such

Optionees than those permitted by this Plan.

        9.    Adjustments On Changes in

Capitalization.

        9.1    Stock

Splits, Capital Stock Adjustments.    The

aggregate number of shares for which options may be granted under this Plan,

the number and class of shares covered by each outstanding option and each such

option shall all be proportionately adjusted for any increase or decrease in

the number of issued shares of Common Stock of the Company resulting from a

stock split, stock dividend or consolidation of shares or any like capital

stock adjustment.

        9.2    Effect of Certain Events.

        (a)    Change

in Control.    In the event of a Change in

Control (hereinafter defined), any unvested options issued under the Plan will

vest automatically upon the closing of the event causing the Change in Control.

For the purpose of this Section 9.2, a “Change in Control” means the sale

of more than 50% of the voting control of the Company or its business to a

third party, whether by means of merger, triangular merger, consolidation, sale

of stock, sale of assets or similar transaction, but excluding (i) any

transaction among affiliated persons that does not result in a material change

in ultimate ownership of the Company by individuals, or (ii) any transaction

for the principal purpose of funding the operations of the Company.

        (b)    Liquidation; Dissolution.    If

the Company is liquidated or dissolved, options shall be treated in accordance

with Section 9.2(a).

        (c)    Recapitalizations.    If

the outstanding Common Stock of the Company is hereafter increased or decreased

or changed into or exchanged for a different number or kind of shares or other

securities of the Company or of another corporation by reason of any

reorganization, merger, consolidation, plan of exchange, recapitalization,

reclassification, stock split-up, combination of shares or dividend payable in

shares, (other than in the case of a Change in Control) appropriate adjustment

shall be made by the Company in the number and kind of shares issuable on

exercise of the Options granted hereunder, so that the Optionee’s proportionate

interest before and after the occurrence of the event is maintained.

 

4

 

        9.3    Fractional

Shares.    If the number of shares covered

by any option is adjusted, any fractional shares resulting from such adjustment

shall be disregarded and each such option shall cover only the number of full

shares resulting from such adjustment.

        9.4    Determination of Board to Be Final.    All

adjustments under this Section 9 shall be made by the Board, and its

determination as to what adjustments shall be made, and the extent thereof,

shall be final, binding and conclusive.

        10.    Securities Regulations.    Shares

of Common Stock shall not be issued with respect to an option granted under

this Plan unless the exercise of such option and the issuance and delivery of

such shares pursuant thereto shall comply with all relevant provisions of law,

including, without limitation, any applicable state securities laws, the

Securities Act of 1933, as amended, the Exchange Act, the rules and regulations

promulgated thereunder, applicable laws of foreign countries and other

jurisdictions and the requirements of any quotation service or stock exchange

on which the shares may then be listed, and shall be further subject to the

approval of counsel for the Company with respect to such compliance, including

the availability of an exemption from registration for the issuance and sale of

any shares hereunder. The inability of the Company to obtain, from any

regulatory body having jurisdiction, the authority deemed by the Company’s

counsel to be necessary for the lawful issuance and sale of any shares

hereunder or the unavailability of an exemption from registration for the

issuance and sale of any shares hereunder shall relieve the Company of any

liability with respect of the nonissuance or sale of such shares as to which

such requisite authority shall not have been obtained.

        As

a condition to the exercise of an option, the Company may require the Optionee

to represent and warrant at the time of any such exercise that the shares of

Common Stock are being purchased only for investment and without any present

intention to sell or distribute such shares if, in the opinion of counsel for

the Company, such a representation is required by any relevant provision of the

aforementioned laws. The Company may place a stop-transfer order against any

shares of Common Stock on the official stock books and records of the Company,

and a legend may be stamped on stock certificates to the effect that the shares

of Common Stock may not be pledged, sold or otherwise transferred unless an

opinion of counsel is provided (concurred in by counsel for the Company)

stating that such transfer is not in violation of any applicable law or

regulation. The Plan Administrator may also require such other action or

agreement by the Optionees as may from time to time be necessary to comply with

the federal and state securities laws. THIS PROVISION SHALL NOT OBLIGATE THE

COMPANY TO UNDERTAKE REGISTRATION OF THE OPTIONS OR STOCK THEREUNDER.

        11.    Amendment and Termination.

        11.1    Plan.    The

Board may at any time suspend, amend or terminate this Plan, provided that, the

approval of the Company’s shareholders is necessary within twelve

(12) months before or after the adoption by the Board of any amendment

that will:

        (a)  increase

the number of shares of Common Stock to be reserved for the issuance of options

under this Plan;

        (b)  permit

the granting of stock options to a class of persons other than those now

permitted to receive stock options under this Plan; or

        (c)  require

shareholder approval under applicable law, including Section 16(b) of the

Exchange Act.

        11.2    Automatic

Termination.    Unless earlier suspended or

terminated by the Board, the Plan will continue in effect until the earlier of:

(i) ten (10) years from the date on which it was adopted by the

Board, or (ii) the date on which all shares available for issuance under

the Plan have been issued. No option may be granted after such termination or

during any suspension of this Plan. The amendment or termination of this Plan

shall not, without the

 

5

 

consent of the Optionee, alter or impair any rights or

obligations under any option theretofore granted under this Plan.

        12.    Miscellaneous.

        12.1    Time of Granting Options.    The

date of grant of an option shall, for all purposes, be the date on which the

Independent Director is elected, re-elected or appointed to the Board, and the

execution of an Option Agreement and the conditions to the exercise of an

option shall not defer the date of grant.

        12.2    No Status as Shareholder.    Neither

the Optionee nor any party to which the Optionee’s rights and privileges under

the option may pass shall be, or have any of the rights or privileges of, a

shareholder of the Company with respect to any of the shares of Common Stock

issuable on the exercise of any option granted under this Plan unless and until

such option has been exercised and the issuance (as evidenced by the

appropriate entry on the books of the Company or duly authorized transfer agent

of the Company) of the stock certificate evidencing such shares.

        12.3    Reservation

of Shares.    The Company, during the term

of this Plan, at all times will reserve and keep available such number of

shares of Common Stock as shall be sufficient to satisfy the requirements of

this Plan.

        13.    Effectiveness of This Plan.    This

Plan shall become effective on the date on which it is adopted by the Board. No

option granted under this Plan to any Independent Director of the Company shall

become exercisable until the Plan is approved by the shareholders, and any

option granted before such approval shall be conditioned on and is subject to

such approval.

Plan

adopted by the Board on February 16, 2000.

Plan

approved by the shareholders on June 22, 2000.

Plan

amended by the Board on October 19, 2000.

Plan

amended by the Board on February13, 2001.

Plan

amended by the Board on October 25, 2001.

Plan

amended by the Board on December 20, 2001.

Plan

amended by the Board on February 13, 2002.

 

6

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