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  Exhibit 10.4    
    

Performance Vesting

 
 

  AMC Entertainment Holdings, Inc.
  2010 Equity Incentive Plan    
    
    RESTRICTED STOCK AWARD AGREEMENT    
    

        THIS RESTRICTED STOCK AWARD AGREEMENT (this "Award Agreement") is made effective as of
the [    ] day of [    ], 2010 (the "Date of Grant"), between AMC Entertainment
Holdings, Inc., a Delaware corporation (the "Company"), and [grantee]
(the "Participant"): 

 
 

  R E C I T A L S:    
    

        WHEREAS, the Company has adopted the AMC Entertainment Holdings, Inc. 2010 Equity Incentive Plan (the
"Plan"), which Plan is incorporated herein by reference and made a part of this Award Agreement. Capitalized terms not otherwise defined herein shall
have the same meanings as in the Plan; and 

        WHEREAS,
the Committee has determined that it would be in the best interests of the Company and its stockholders to grant the restricted stock provided for herein to the Participant
pursuant to the Plan and the terms set forth herein. 

        NOW
THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties agree as follows: 

        1.    Restricted Stock Award.    Subject to the terms and conditions of the Plan and this Award Agreement, the Company
hereby grants to the Participant [    ] Shares (the "Restricted Shares"), which shall vest and become nonforfeitable
in accordance with Section 3 hereof. 

        2.    Certificates.    A certificate or certificates representing the Restricted Shares shall be issued by the Company
and shall be registered in the name of the Participant on the stock transfer books of the Company promptly following execution of this Award Agreement by the Participant, but shall remain in the
physical custody of the Company or its designee at all times prior to the vesting of such Restricted Shares pursuant to Section 3 hereof. As a
condition to the receipt of this Award Agreement, the Participant shall deliver to the Company a Stock Power in the form attached hereto as  Exhibit A, duly endorsed in blank, relating to the
Restricted Shares. Each certificate representing the Restricted Shares shall bear the
following legend: 

"The ownership and transferability of this certificate and these shares are subject to the terms and conditions (including forfeiture) of the AMC Entertainment
Holdings, Inc. 2010 Equity Incentive Plan and a Restricted Stock Award Agreement entered into between the registered owner and AMC Entertainment Holdings, Inc. Copies of such Plan and
Agreement are on file in the executive offices of AMC Entertainment Holdings, Inc." 

As
soon as administratively practicable, but not later than sixty (60) days, following the vesting of the Restricted Shares (as described in  Section 3 hereof), and upon the satisfaction of all
other applicable conditions, including, but not limited to, the payment by the Participant of
all applicable withholding taxes, the Company shall deliver or cause to be delivered to the Participant, or in the case of
Participant's death, Participant's beneficiary, a certificate or certificates for the applicable Shares of Restricted Stock which shall not bear the legend described above, but may bear such other
legends as the Company deems advisable pursuant to Section 6 below. 

        3.    Vesting of Restricted Stock.    

        (a)    Vesting Schedule.    Subject to the Participant's continued service with the Company or any of its Affiliates,
as applicable, on the applicable vesting date, and except as may otherwise be provided herein, 25% of the Restricted Shares shall become vested in each year over a four (4) year period from
fiscal year 2011 through fiscal year 2014 upon the Company meeting certain 

 

pre-established
annual performance targets, as established each year by the Committee in accordance with Article 10 of the Plan (the
"Annual Performance Targets"). 

        (b)    Acceleration of Vesting.    Notwithstanding Section 3(a)  hereof, if within the one (1) year period following a
Change of Control, the Participant's service is terminated by the Company or any Affiliate without Cause, the
Restricted Shares shall immediately vest as of the date of such termination of service, subject to the Participant's execution of an effective general release and waiver of all claims against the
Company, its Affiliates and their respective officers and directors, substantially in the form attached hereto as Exhibit B. 

        (c)    Termination of Service.    If the Participant's service is terminated for any reason, other than as described
in Section 3(b) above, the Restricted Shares, to the extent not then-vested, shall be forfeited by the Participant without any
consideration. 

        (d)    Definition of Cause.    "Cause" shall mean, (i) a
material breach by the Participant of any of the Participant's obligations under any written agreement with the Company or any of its Affiliates, (ii) a material violation by the Participant of
any of the Company's policies, procedures, rules and regulations applicable to employees generally or to similarly situated employees, in each case, as they may be amended from time to time in the
Company's sole discretion; (iii) the failure by the Participant to reasonably and substantially perform his or her duties to the Company or its Affiliates (other than as a result of physical or
mental illness or injury) or the failure by the Participant to comply with reasonable directives of the Board; (iv) the Participant's willful misconduct (including abuse of controlled
substances) or gross negligence that is injurious to the Company, its Affiliates or any of their customers, clients or employees; (v) the Participant's fraud, embezzlement, misappropriation of
funds or
beach of fiduciary duty against the Company or any of its Affiliates (or any predecessor thereto or successor thereof); or (vi) the commission by the Participant of a felony or other serious
crime involving moral turpitude. Notwithstanding the foregoing, if the Participant is a party to an employment agreement with the Company or any Affiliate at the time of his or her termination of
employment and such employment agreement contains a different definition of "cause" (or any derivation thereof), the definition in such employment agreement will control for purposes of this Award
Agreement. 

        4.    Rights as a Stockholder.    The Participant shall have none of the rights of a stockholder of the Company until
the Restricted Shares vest, provided, that, the Participant shall have the right to receive dividends on
the Restricted Shares (the "Dividends") subject to the remainder of this Section 4. The
Dividends, if any, shall be held by the Company and shall be subject to forfeiture until such time that the Restricted Shares on which the Dividends were distributed vest in accordance with  Section 3 above. The Dividends shall be released to the Participant as soon as administratively practicable, but not later than the time of
delivery to the Participant, in accordance with Section 2 above, of certificates representing the Restricted Shares on which the Dividends were
distributed. 

        5.    Restrictive Covenants.    In consideration for the grant of the Restricted Shares hereunder, the Participant
agrees to comply with the covenants set forth in this Section 5. Notwithstanding the foregoing, if the Participant is a party to an employment
agreement or other agreement with the Company or any Affiliate and such agreement contains restrictive covenants, the restrictive covenants in such agreement will control for purposes of this Award
Agreement; provided that in the event the restrictive covenants of the aforementioned agreement do not contain all the restrictions described in this Award Agreement, then the additional restrictions
in the Award Agreement shall apply to the Participant in addition to the restrictions described in the aforementioned agreement. 

        (a)    Confidential Information; Inventions.    

        (1)   The
Participant shall not disclose or use at any time either during the Participant's employment with or performance of services to the Company or thereafter, any
Confidential 

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Information
(as defined below) of which the Participant is or becomes aware, whether or not such information is developed by him or her, except to the extent that such disclosure or use is directly
related to and required by the Participant's performance in good faith of duties for the Company. The Participant will take all appropriate steps to safeguard Confidential Information in his or her
possession and to protect it against disclosure, misuse, espionage, loss and theft. The Participant shall deliver to the Company at the termination of his or her employment with or performance of
services to the Company, or at any time the Company may request, all memoranda, notes, plans, records, reports, computer tapes and software and other documents and data (and copies thereof) relating
to the Confidential Information or the Work Product (as hereinafter defined) of the business of the Company or any of its Affiliates which the Participant may then possess or have under his or her
control. Notwithstanding the foregoing, the Participant may truthfully respond to a lawful and valid subpoena or other legal process, but shall give the Company the earliest possible notice thereof,
shall, as much in
advance of the return date as possible, make available to the Company and its counsel the documents and other information sought, and shall assist the Company and such counsel in resisting or
otherwise responding to such process. 

        (2)   As
used in this Award Agreement, the term "Confidential Information" means information that is not generally known to the
public and that is used, developed or obtained by the Company in connection with its business, including, but not limited to, information, observations and data obtained by the Participant while
employed by or performing services to the Company or any predecessors thereof (including those obtained prior to the Date of Grant) concerning (i) the business or affairs of the Company (or
such predecessors), (ii) products or services, (iii) fees, costs, compensation and pricing structures, (iv) designs, (v) analyses, (vi) drawings, photographs and
reports, (vii) computer software, including operating systems, applications and program listings, (viii) flow charts, manuals and documentation, (ix) data bases,
(x) accounting and business methods, (xi) inventions, devices, new developments, methods and processes, whether patentable or unpatentable and whether or not reduced to practice,
(xii) customers and clients, (xiii) other copyrightable works, (xiv) all production methods, processes, technology and trade secrets, and (xv) all similar and related
information in whatever form. Confidential Information will not include any information that has been published (other than a disclosure by the Participant in breach of this Award Agreement) in a form
generally available to the public prior to the date the Participant proposes to disclose or use such information. Confidential Information will not be deemed to have been published merely because
individual portions of the information have been separately published, but only if all material features comprising such information have been published in combination. 

        (3)   As
used in this Award Agreement, the term "Work Product" means all inventions, innovations, improvements, technical
information, systems, software developments, methods, designs, analyses, drawings, reports, service marks, trademarks, trade names, logos and all similar or related information (whether patentable or
unpatentable, copyrightable, registerable as a trademark, reduced to writing, or otherwise) which relates to the Company's or any of its Affiliates' actual or anticipated business, research and
development or existing or future products or services and which are conceived, developed or made by the Participant (whether or not during usual business hours, whether or not by the use of the
facilities of the Company or any of its Affiliates, and whether or not alone or in conjunction with any other person) while employed by or performing services to the Company (including those
conceived, developed or made prior to the Date of Grant) together with all patent applications, letters patent, trademark, trade name and service mark applications or registrations, copyrights and
reissues thereof that may be granted for or upon any of the foregoing. All Work Product that the Participant may have discovered, invented or originated during his or her employment by 

3

 

or
performance of services to the Company or any of its Affiliates prior to the Date of Grant, that he or she may discover, invent or originate during his or her employment or performance of services
or at any time in the period of twelve (12) months after his or her termination of service, shall be the exclusive property of the Company and its Affiliates, as applicable, and the Participant
hereby assigns all of the Participant's right, title and interest in and to such Work Product to the Company or its applicable Affiliate, including all intellectual property rights therein. The
Participant shall promptly disclose all Work Product to the Company, shall execute at the request of the Company any assignments or other documents the Company may deem necessary to protect or perfect
its (or any of
its Affiliates', as applicable) rights therein, and shall assist the Company, at the Company's expense, in obtaining, defending and enforcing the Company's (or any of its Affiliates', as applicable)
rights therein. The Participant hereby appoints the Company as his attorney-in-fact to execute on his or her behalf any assignments or other documents deemed necessary by the
Company to protect or perfect the Company, the Company's (and any of its Affiliate', as applicable) rights to any Work Product. 

        (4)   Restriction on Competition.    The Participant agrees that if the Participant were to become employed by, or
substantially involved in, the business of a competitor of the Company or any of its Affiliates during the twelve (12) months following his or her separation from service, it would be very
difficult for the Participant not to rely on or use the Company's and its Affiliates' trade secrets and confidential information. Thus. to avoid the inevitable disclosure of the Company's and its
Affiliates' trade secrets and confidential information, and to protect such trade secrets and confidential information and the Company's and its Affiliates' relationships and goodwill with customers,
during his or her employment with or performance of services to the Company and for a period of twelve (12) months after the Participant's termination of service, the Participant will not
directly or indirectly through any other Person engage in, enter the employ of, render any services to, have any ownership interest in. nor participate in the financing, operation, management or
control of, any Competing Business. For purposes of this Award Agreement, the phrase "directly or indirectly through any other Person engage in" shall include, without limitation, any direct or
indirect ownership or profit participation interest in such enterprise, whether as an owner, stockholder, member, partner, joint venturer or otherwise, and shall include any direct or indirect
participation in such enterprise as an employee, consultant, director, officer, licensor of technology or otherwise. For purposes of this Award Agreement, "Competing
Business" means a Person anywhere in the continental United States or elsewhere in the world where the Company or any of its Affiliates engage in business, or reasonably
anticipate engaging in business, on the Participant's termination of service (the "Restricted Area") that at any time during his or her employment with
or performance of services to the Company has competed, or at any time during the twelve (12) month period following the Participant's termination of service, competes with the Company or any
of its Affiliates in any of its or their businesses, including, without limitation, theatrical exhibition, digital cinema, internet ticketing and virtual box office for theatrical exhibitions, IMAX or
other three dimensional screened entertainment, pre-show content, cinema or lobby advertising products, meeting and event services or special in-theater events. Nothing herein
shall prohibit the Participant from (i) being a passive owner of not more than 2% of the outstanding stock of any class of a corporation that is publicly traded, so long as the Participant has
no active participation in the business of such corporation, (ii) providing services to a Person otherwise engaged in a Competing Business, provided the Participant provides no services to any
business operated, managed or controlled by such Person that causes such Person to constitute a Competing Business, or (iii) providing services to a Person the business or businesses of which
are unrelated to theatrical exhibition. 

4

 

 

        (b)    Non-Solicitation of Employees and Consultants.    During his or her employment with or performance
of services to the Company and for a period of twelve (12) months after the Participant's termination of service, the Participant will not directly or indirectly through any other Person
(i) induce or attempt to induce any employee or independent contractor of the Company or any Affiliate of the Company to leave the employ or service, as applicable, of the Company or such
Affiliate, or in any way interfere with the relationship between the Company or any such Affiliate, on the one hand, and any employee or independent contractor thereof, on the other hand, or
(ii) hire any person who was an employee of the Company or any Affiliate of the Company until twelve (12) months after such individual's employment relationship with the Company or such
Affiliate has been terminated. 

        (c)    Non-Solicitation of Customers.    During his or her employment with or performance of services to
the Company and for a period of twelve (12) months after the Participant's termination of service, the Participant will not directly or indirectly through any other Person influence or attempt
to influence customers, vendors, suppliers, licensors, lessors, joint venturers, associates, consultants, agents, or partners the Company or any Affiliate of the Company to divert their business away
from the Company or such Affiliate, and the Participant will not otherwise interfere with, disrupt or attempt to disrupt the business relationships, contractual or otherwise, between the Company or
any Affiliate of the Company, on the one hand, and any of its or their customers, suppliers, vendors, lessors, licensors, joint venturers, associates, officers, employees, consultants, managers,
partners, members or investors, on the other hand. 

        (d)    Non-Disparagement.    The Participant acknowledges and agrees that he or she will not defame,
disparage or publicly criticize, directly or through another Person, the services, business or reputation of the Company or any of its officers, directors, partners, employees, Affiliates or agents in
either a professional or personal manner either during his or her employment with or performance of services to the Company or thereafter. 

        (e)    Understanding of Covenants.    The Participant acknowledges that, in the course of his or employment with or
performance of services to the Company and/or its Affiliates and their predecessors, he or she has become familiar, or will become familiar, with the Company's and its Affiliates' and their
predecessors' trade secrets and with other confidential and proprietary information concerning the Company, its Affiliates and their respective predecessors and that his or her services have been and
will be of special, unique and extraordinary value to the Company and its Affiliates. The Participant agrees that the foregoing covenants set forth in this  Section 5 (together, the "Restrictive Covenants") are reasonable and necessary to protect the
Company's and its Affiliates' trade secrets and other confidential and proprietary information, good will, stable workforce, and customer relations. 

Without
limiting the generality of the Participant's agreement in the preceding paragraph, the Participant (i) represents that he or she is familiar with and has carefully considered the
Restrictive Covenants, (ii) represents that he or she is fully aware of his or her obligations hereunder, (iii) agrees to the reasonableness of the length of time, scope and geographic
coverage, as applicable, of the Restrictive Covenants, (iv) agrees that the Company and its Affiliates currently conducts business throughout the Restricted Area, and (v) agrees that the
Restrictive Covenants will continue in effect for the applicable periods set forth above in this Section 5 regardless of whether the Participant
is then entitled to receive severance pay or benefits from the Company. The Participant understands that the Restrictive Covenants may limit his or her ability to earn a livelihood in a business
similar to the business of the Company and any of its Affiliates, but he or she nevertheless believes that he or she has received and will receive sufficient consideration and other benefits as an
employee or director of, or consultant to, the Company and as otherwise provided hereunder or as described in the recitals hereto to clearly justify such restrictions which, in any event (given his or
her 

5

 

education,
skills and ability), the Participant does not believe would prevent him or her from otherwise earning a living. The Participant agrees that the Restrictive Covenants do not confer a benefit
upon the Company disproportionate to the detriment of the Participant. 

        (f)    Enforcement.    The Participant agrees that the Participant's services are unique and that he or she has access
to Confidential Information and Work Product. Accordingly, the Participant agrees that a breach by the Participant of any of the covenants in this  Section 5 would cause immediate and irreparable
harm to the Company that would be difficult or impossible to measure, and that damages to the
Company for any such injury would therefore be an inadequate remedy for any such breach. Therefore, the Participant agrees that in the event of any breach or threatened breach of any provision of this  Section 5 or any similar provision, the Company shall be entitled, in addition to and without limitation upon all other remedies the Company may
have under this Award Agreement, at law or otherwise, to obtain specific performance, injunctive relief and/or other appropriate relief (without posting any bond or deposit) in order to enforce or
prevent any violations of the provisions of this Section 5 or any similar provision, as the case may be, or require the Participant to account
for and pay over to the Company all compensation, profits, moneys, accruals, increments or other benefits derived from or received as a result of any transactions constituting a breach of this  Section 5 or any similar provision, as the case may be, if and when final judgment of a court of competent jurisdiction or arbitrator is so
entered against the Participant. The Participant further agrees that the applicable period of time any Restrictive Covenant is in effect following the Participant's termination of service, as
determined pursuant to the foregoing provisions of this Section 5, such period of time shall be extended by the same amount of time that
Participant is in breach of any Restrictive Covenant. 

        (g)   The
Participant agrees to execute any additional documentation as may reasonably be requested by the Company in furtherance of the enforcement of any Restrictive
Covenant. 

        6.    Adjustment of Shares.    In the event of any corporate event or transaction (as described in  Section 12.1 of the Plan),
the terms of this Award Agreement (including, without limitation, the number and kind of Shares subject to this Award
Agreement) shall be adjusted as set forth in Section 12.1 of the Plan. 

        7.    No Right to Continued Service.    The granting of the Restricted Stock evidenced hereby and this Award Agreement
shall impose no obligation on the Company or any Affiliate to continue the service of the Participant and shall not lessen or affect any right that the Company or any Affiliate may have to terminate
the service of such Participant. 

        8.    Securities Laws/Legend on Certificates.    The issuance and delivery of Shares shall comply (or be exempt from)
all applicable requirements of law, including (without limitation) the Securities Act of 1933, as amended, the rules and regulations promulgated thereunder, state securities laws and regulations, and
the regulations of any stock exchange or other securities market on which the Company's securities may then be traded. The Company shall not be obligated to file any registration statement under any
applicable securities laws to permit the purchase or issuance of any Shares under the Plan or Awards, and accordingly any certificates for Shares or documents granting Awards may have an appropriate
legend or statement of applicable restrictions endorsed thereon. If the Company deems it necessary to ensure that the issuance of Shares under the Plan is not required to be registered under any
applicable securities laws, each Participant to whom such Shares would be issued shall deliver to the Company an agreement or certificate containing such representations, warranties and covenants as
the Company may reasonably request which satisfies such requirements. 

        9.    Transferability.    Unless otherwise provided by the Committee, the Restricted Shares may not be assigned,
alienated, pledged, attached, sold or otherwise transferred or encumbered by the Participant other than by will or by the laws of descent and distribution, and any such purported assignment,
alienation, pledge, attachment, sale, transfer or encumbrance shall be void and 

6

 

unenforceable
against the Company or any Affiliate; provided, that, the designation of a beneficiary
shall not constitute an assignment, alienation, pledge, attachment, sale, transfer or encumbrance. No such permitted transfer of the Restricted Shares to heirs or legatees of the Participant shall be
effective to bind the Company unless the Committee shall have been furnished with written notice thereof and a copy of such evidence as the Committee may deem necessary to establish the validity of
the transfer and the acceptance by the transferee or transferees of the terms and conditions hereof. 

        10.    Withholding.    The Company shall have the power and the right to deduct or withhold automatically from any
payment or shares of common stock deliverable under this Award Agreement or require the Participant to remit to the Company or applicable Affiliate, the minimum statutory amount to satisfy
federal, state, and local taxes, domestic or foreign, required by law or regulation to be withheld with respect to any taxable event arising as a result of this Award Agreement. 

        11.    Notices.    Any notification required by the terms of this Award Agreement shall be given in writing and shall
be deemed effective upon personal delivery or within three (3) days of deposit with the United States Postal Service, by registered or certified mail, with postage and fees prepaid. A notice
shall be addressed to the Company, Attention: General Counsel, at its principal executive office and to the Participant at the address that he or she most recently provided to the Company. 

        12.    Entire Agreement.    This Award Agreement and the Plan constitute the entire contract between the parties
hereto with regard to the subject matter hereof. They supersede any other agreements, representations or understandings (whether oral or written and whether express or implied) which relate to the
subject matter hereof. 

        13.    Waiver.    No waiver of any breach or condition of this Award Agreement shall be deemed to be a waiver of any
other or subsequent breach or condition whether of like or different nature. 

        14.    Successors and Assigns.    The provisions of this Award Agreement shall inure to the benefit of, and be binding
upon, the Company and its successors and assigns and upon the Participant, the Participant's assigns and the legal representatives, heirs and legatees of the Participant's estate, whether or not any
such person shall have become a party to this Award Agreement and have agreed in writing to be joined herein and be bound by the terms hereof. 

        15.    Choice of Law.    This Award Agreement shall be governed by the law of the State of Delaware (regardless of the
laws that might otherwise govern under applicable Delaware principles of conflicts of law) as to all matters, including but not limited to matters of validity, construction, effect, performance and
remedies. 

        16.    Restricted Shares Subject to Plan.    By entering into this Award Agreement the Participant agrees and
acknowledges that the Participant has received and read a copy of the Plan. The Restricted Shares are subject to the Plan. The terms and provisions of the Plan as it may be amended from time to time
are hereby incorporated herein by reference. In the event of a conflict between any term or provision contained herein and a term or provision of the Plan, the applicable terms and provisions of the
Plan will govern and prevail. 

        17.    No Guarantees Regarding Tax Treatment.    Participants (or their beneficiaries) shall be responsible for all
taxes with respect to the Restricted Shares. The Committee and the Company make no guarantees regarding the tax treatment of the Restricted Shares. Neither the Committee nor the Company has any
obligation to take any action to prevent the assessment of any tax under Section 409A of the Code or
Section 457A of the Code or otherwise and none of the Company, any Subsidiary or Affiliate, or any of their employees or representatives shall have any liability to a Participant with respect
thereto. 

        18.    Amendment.    The Committee may amend or alter this Award Agreement and the Restricted Shares granted hereunder
at any time, subject to the terms of the Plan. 

7

 

        19.    Section 83(b) Election.    In the event the Participant determines to make an election with the Internal
Revenue Service (the "IRS") under Section 83(b) of the Code and the regulations promulgated thereunder (the "83(b)
Election"), the Participant shall provide a copy of such form to the Company promptly following its filing, which is required under current law to be filed with the IRS no
later than thirty (30) days after the Date of Grant of the Restricted Shares. The form for making an 83(b) Election is attached hereto as  Exhibit C. The Participant is advised to consult with
his or her own tax advisors regarding the purchase and holding of the Restricted Shares,
and the Company shall bear no liability for any consequence of the Participant making an 83(b) Election or failing to make an 83(b) Election. 

        20.    Severability.    The provisions of this Award Agreement are severable and if any one or more provisions are
determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable. 

        21.    Signature in Counterparts.    This Award Agreement may be signed in counterparts, each of which shall be an
original, with the same effect as if the signatures thereto and hereto were upon the same instrument. 

*    *    *

8

 

        IN WITNESS WHEREOF, the parties hereto have executed this Award Agreement. 

 

 

					
	 	 	 AMC ENTERTAINMENT HOLDINGS, INC.
	

 	
 	
  

 
	 	 	Name:	 	 
	 	 	Title:	 	 

 

 Agreed
and acknowledged as of the date first above written: 

 

 

			
	  

 PARTICIPANT	 	 

 

 SIGNATURE
PAGE TO

AWARD AGREEMENT 

 
 

  EXHIBIT A    
    
    STOCK POWER    
    

 
 

  Stock Power    
    

        FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto AMC
Entertainment Holdings, Inc. (the "Company"),                    
(            ) shares of common stock, par value $0.01 per share, of the
Company standing in his/her/their/its name on the books of the Company represented by Certificate No.                    herewith and does hereby
irrevocably constitute and appoint                    
his/her/their/its attorney-in-fact, with full power of substitution, to transfer such shares on the books of the Company. 

 

 

							
	Dated:	 	    	 	Signature:	 	  

 

 

 Print
Name and Mailing Address 

 

 

			
	Instructions:	 	 Please do not fill in any blanks other than the signature line and printed name and mailing address. Please print your name exactly as you would like your name to appear on the issued stock certificate(s). The purpose
of this assignment is to enable the forfeiture of the shares without requiring additional signatures on your part.

 

 

 
 

  EXHIBIT B    
    
    FORM OF RELEASE    
    

 
 

  Release Agreement    
    

        A release is required as a condition for receiving the benefits upon separation from service provided pursuant to the Restricted Stock
Award Agreement between AMC ENTERTAINMENT HOLDINGS, INC. (the "Company") and
[grantee] ("Participant") dated [    ], 2010,
(the "Award Agreement"); thus, by executing this release ("Release"), you have advised us that you hold
no claims against the Company, its predecessors, successors or assigns, affiliates, shareholders or members and each of their respective officers, directors, agents and employees (collectively, the
"Releasees"), and by execution of this Release you agree to waive and release any such claims, except relating to any compensation, severance pay and
benefits described in any written agreement between you and the Company. 

        You
understand and agree that this Release will extend to all claims, demands, liabilities and causes of action of every kind, nature and description whatsoever, whether known, unknown
or suspected to exist, which you ever had or may now have against the Releasees in your capacity as an employee of the Company, including, without limitation, any claims, demands, liabilities and
causes of action arising from your employment with the Releasees and the termination of that employment, including any claims for severance or vacation pay, business expenses, and/or pursuant to any
federal, state, county, or local employment laws, regulations, executive orders, or other requirements, including, but not limited to, Title VII of the 1964 Civil Rights Act, the 1866 Civil Rights
Act, the Age Discrimination in Employment Act as amended by the Older Workers Benefit Protection Act, the Americans with Disabilities Act, the Civil Rights Act of 1991, the Workers Adjustment and
Retraining Notification Act and any other local, state or federal fair employment laws, and any contract or tort claims. 

        You
understand and agree that this Release is intended to include all claims by you or on your behalf alleging discrimination on the basis of race, sex, religion, national origin, age,
disability, marital status, or any other protected status or involving any contract or tort claims based on your termination from the Company. It is also acknowledged that your termination is not in
any way related to any work-related injury. 

        It
also is understood and agreed that the remedy at law for breach of the Award Agreement, any restrictive covenant agreements between you and the Company, and/or this Release shall be
inadequate, and the Company shall be entitled to injunctive relief in respect thereof. 

        Your
ability to receive payments and benefits under the terms of the Award Agreement will remain open for a 21-day period after your separation from service to give you an
opportunity to consider the effect of this Release. At your option, you may elect to execute this Release on an earlier date. Additionally, you have seven days after the date you execute this Release
to revoke it. As a result, this Release will not be effective until eight days after you execute it. We also want to advise you of your right to consult with legal counsel prior to executing a copy of
this Release. 

        Finally,
this is to expressly acknowledge: 

	•
	You understand that you are not waiving any claims or rights that may arise after the date you execute this Release.  

	•
	You understand and agree that the compensation and benefits described in the Award Agreement offer you consideration
greater than that to which you would otherwise be entitled.   

	•
	You understand that you are subject to "restrictive covenants" provisions contained in your Award Agreement, employment
agreement or other agreement, as applicable, and you agree to continue to be bound by those terms and conditions in accordance therewith. 

 

        I
hereby state that I have carefully read this Release and that I am signing this Release knowingly and voluntarily with the full intent of releasing the Releases from any and all
claims, except as set forth herein. Further, if signed prior to the completion of the 21 day review period, this is to acknowledge that I knowingly and voluntarily signed this Release on an
earlier date. 

					
	 Date: [    ], 2010
	 	Name:	 	  

 

2

 

 
 

  EXHIBIT C    
    
    SECTION 83(b) ELECTION    
    

 
 

  Section 83(b) Election    
    

        This statement is being made under Section 83(b) of the Internal Revenue Code, pursuant to Treas. Reg.
Section 1.83-2.  

	(1)
	The
taxpayer who performed the services is: 

Name: 

Address: 

Social
Security Number: 

	(2)
	The
property with respect to which the election is being made is                shares of the common stock, par value $0.01 per share, of AMC Entertainment
Holdings, Inc.

	(3)
	The
transferor of the property is AMC Entertainment Holdings, Inc.

	(4)
	The
property was transferred on                        ("Date of Grant").

	(5)
	The
taxable year in which the election is being made is the calendar year        .

	(6)
	The
property will vest upon the fourth anniversary of the date of transfer, subject to the taxpayer's continued service to AMC Entertainment
Holdings, Inc. or its affiliates.

	(7)
	The
fair market value at the time of transfer (determined without regard to any restriction other than a restriction which by its terms will never lapse) is
$                    per share.

	(8)
	The
amount paid for such property is $                per share.

	(9)
	A
copy of this statement was furnished to American Multi-Cinema, Inc. for whom taxpayer rendered the services underlying the transfer of property.

	(10)
	This
statement is executed on                            . 

			
	 	 	Signature:
	

 	
 	
  

  Taxpayer's name

        This
election must be filed with the Internal Revenue Service Center with which taxpayer files his Federal income tax returns and must be made within thirty (30) days after the
Date of Grant. This filing should be made by registered or certified mail, return receipt requested. The taxpayer shall also provide a copy of such form to AMC Entertainment Holdings, Inc. and
to American Multi-Cinema, Inc. promptly following its filing. The taxpayer should retain two (2) additional copies of the completed form for filing with Federal and state tax returns for
the taxpayer's current tax year and an additional copy for the taxpayer's records. 

QuickLinks

Exhibit 10.4

AMC Entertainment Holdings, Inc. 2010 Equity Incentive Plan RESTRICTED STOCK AWARD AGREEMENT

R E C I T A L S

EXHIBIT A STOCK POWER

Stock Power

EXHIBIT B FORM OF RELEASE

Release Agreement

EXHIBIT C SECTION 83(b) ELECTION

Section 83(b) ElectionExhibit 10.3

 

DITECH NETWORKS, INC.

 

1999 EMPLOYEE STOCK PURCHASE PLAN

 

Approved by the Board of Directors March 5, 1999

Approved by Stockholders April 21, 1999

Amended by the Board of Directors July 25, 2000

Amendment Approved by Stockholders September 22, 2000

Amended by the Board of Directors July 12, 2001

Amendment Approved by Stockholders September 21, 2001

Amended by the Board of Directors November 14, 2001

Amended by the Board of Directors June 6, 2002

Amendment Approved by Stockholders September 20, 2002

Amended by the Board of Directors 
May 16, 2003

Amendment Approved by the Stockholders September 19, 2003

Amended by the Board of Directors May 12, 2006

Subject to Approval by Stockholders September 15, 2006

Amended by the Board of Directors May 8, 2009

 

1.             PURPOSE.

 

(a)           The purpose of this Employee
Stock Purchase Plan (the “Plan”) is to provide a means by which employees of
Ditech Networks, Inc. (the “Company”) and its Affiliates, as defined in
subparagraph 1(b), which are designated as provided in subparagraph 2(b), may
be given an opportunity to purchase common stock of the Company.

 

(b)           The word “Affiliate” as used
in the Plan means any parent corporation or subsidiary corporation of the
Company, as those terms are defined in Sections 424(e) and (f),
respectively, of the Internal Revenue Code of 1986, as amended (the “Code”).

 

(c)           The Company, by means of the
Plan, seeks to retain the services of its employees, to secure and retain the
services of new employees, and to provide incentives for such persons to exert
maximum efforts for the success of the Company.

 

(d)           The Company intends that the
rights to purchase stock of the Company granted under the Plan be considered
options issued under an “employee stock purchase plan” as that term is defined
in Section 423(b) of the Code.

 

2.             ADMINISTRATION.

 

(a)           The Plan shall be
administered by the Board of Directors (the “Board”) of the Company unless and
until the Board delegates administration to a Committee, as provided in
subparagraph 2(c).  Whether or not the
Board has delegated administration, the Board shall have the final power to
determine all questions of policy and expediency that may arise in the
administration of the Plan.

 

1

 

(b)           The Board shall have the
power, subject to, and within the limitations of, the express provisions of the
Plan:

 

(i)            To determine when and how
rights to purchase stock of the Company shall be granted and the provisions of
each offering of such rights (which need not be identical).

 

(ii)           To designate from time to
time which Affiliates of the Company shall be eligible to participate in the
Plan.

 

(iii)         To construe and interpret
the Plan and rights granted under it, and to establish, amend and revoke rules and
regulations for its administration.  The
Board, in the exercise of this power, may correct any defect, omission or
inconsistency in the Plan, in a manner and to the extent it shall deem
necessary or expedient to make the Plan fully effective.

 

(iv)          To amend the Plan as provided
in paragraph 13.

 

(v)            Generally, to exercise such
powers and to perform such acts as the Board deems necessary or expedient to
promote the best interests of the Company and its Affiliates and to carry out
the intent that the Plan be treated as an “employee stock purchase plan” within
the meaning of Section 423 of the Code.

 

(c)           The Board may delegate
administration of the Plan to a Committee composed of not fewer than two (2) members
of the Board (the “Committee”).  If
administration is delegated to a Committee, the Committee shall have, in
connection with the administration of the Plan, the powers theretofore
possessed by the Board, subject, however, to such resolutions, not inconsistent
with the provisions of the Plan, as may be adopted from time to time by the
Board.  The Board may abolish the
Committee at any time and revest in the Board the administration of the Plan.

 

3.             SHARES
SUBJECT TO THE PLAN.

 

(a)           Subject to the provisions of
paragraph 12 relating to adjustments upon changes in stock, the stock that may
be sold pursuant to rights granted under the Plan shall not exceed in the
aggregate one million eight hundred sixteen thousand six hundred sixty-six
(1,816,666) shares of the Company’s common stock (the “Common Stock”), such
number includes an additional increase of four hundred thousand (400,000)
shares of Common Stock authorized by the Board on May 12, 2006, subject to
stockholder approval at the 2006 Annual Meeting of Stockholders.  If any right granted under the Plan shall for
any reason terminate without having been exercised, the Common Stock not
purchased under such right shall again become available for the Plan.

 

(b)           The stock subject to the
Plan may be unissued shares or reacquired shares, bought on the market or
otherwise.

 

4.             GRANT
OF RIGHTS; OFFERING.

 

The
Board or the Committee may from time to time grant or provide for the grant of
rights to purchase Common Stock of the Company under the Plan to eligible
employees (an 

 

2

 

“Offering”)
on a date or dates (the “Offering Date(s)”) selected by the Board or the
Committee.  Each Offering shall be in
such form and shall contain such terms and conditions as the Board or the
Committee shall deem appropriate, which shall comply with the requirements of Section 423(b)(5) of
the Code that all employees granted rights to purchase stock under the Plan
shall have the same rights and privileges. 
The terms and conditions of an Offering shall be incorporated by
reference into the Plan and treated as part of the Plan.  The provisions of separate Offerings need not
be identical, but each Offering shall include (through incorporation of the
provisions of this Plan by reference in the document comprising the Offering or
otherwise) the period during which the Offering shall be effective, which
period shall not exceed twenty-seven (27) months beginning with the Offering
Date, and the substance of the provisions contained in paragraphs 5
through 8, inclusive.

 

5.             ELIGIBILITY.

 

(a)           Rights may be granted only
to employees of the Company or, as the Board or the Committee may designate as
provided in subparagraph 2(b), to employees of any Affiliate of the
Company.  Except as provided in
subparagraph 5(b), an employee of the Company or any Affiliate shall not be
eligible to be granted rights under the Plan unless, on the Offering Date, such
employee has been in the employ of the Company or any Affiliate for such
continuous period preceding such grant as the Board or the Committee may
require, but in no event shall the required period of continuous employment be
greater than two (2) years.  In
addition, unless otherwise determined by the Board or the Committee and set
forth in the terms of the applicable Offering, no employee of the Company or
any Affiliate shall be eligible to be granted rights under the Plan, unless, on
the Offering Date, such employee’s customary employment with the Company or
such Affiliate is for at least twenty (20) hours per week and at least five (5) months
per calendar year.

 

(b)           The Board or the Committee
may provide that each person who, during the course of an Offering, first
becomes an eligible employee of the Company or designated Affiliate will, on a
date or dates specified in the Offering which coincides with the day on which
such person becomes an eligible employee or occurs thereafter, receive a right
under that Offering, which right shall thereafter be deemed to be a part of
that Offering.  Such right shall have the
same characteristics as any rights originally granted under that Offering, as
described herein, except that:

 

(i)            the date on which such right
is granted shall be the “Offering Date” of such right for all purposes,
including determination of the exercise price of such right;

 

(ii)           the period of the Offering
with respect to such right shall begin on its Offering Date and end coincident
with the end of such Offering; and

 

(iii)         the Board or the Committee
may provide that if such person first becomes an eligible employee within a
specified period of time before the end of the Offering, he or she will not
receive any right under that Offering.

 

3

 

(c)           No employee shall be
eligible for the grant of any rights under the Plan if, immediately after any
such rights are granted, such employee owns stock possessing five percent (5%)
or more of the total combined voting power or value of all classes of stock of
the Company or of any Affiliate.  For
purposes of this subparagraph 5(c), the rules of Section 424(d) of
the Code shall apply in determining the stock ownership of any employee, and
stock which such employee may purchase under all outstanding rights and options
shall be treated as stock owned by such employee.

 

(d)           An eligible employee may be
granted rights under the Plan only if such rights, together with any other
rights granted under “employee stock purchase plans” of the Company and any
Affiliates, as specified by Section 423(b)(8) of the Code, do not
permit such employee’s rights to purchase stock of the Company or any Affiliate
to accrue at a rate which exceeds twenty-five thousand dollars ($25,000) of
fair market value of such stock (determined at the time such rights are
granted) for each calendar year in which such rights are outstanding at any
time.

 

(e)           Officers of the Company and
any designated Affiliate shall be eligible to participate in Offerings under
the Plan; provided, however, that the Board may
provide in an Offering that certain employees who are highly compensated
employees within the meaning of Section 423(b)(4)(D) of the Code
shall not be eligible to participate.

 

6.             RIGHTS;
PURCHASE PRICE.

 

(a)           On each Offering Date, each
eligible employee, pursuant to an Offering made under the Plan, shall be
granted the right to purchase up to the number of shares of Common Stock of the
Company purchasable with a percentage designated by the Board or the Committee
not exceeding fifteen percent (15%) of such employee’s Earnings (as defined in
subparagraph 7(a)) during the period which begins on the Offering Date (or such
later date as the Board or the Committee determines for a particular Offering)
and ends on the date stated in the Offering, which date shall be no later than
the end of the Offering.  The Board or
the Committee shall establish one or more dates during an Offering (the “Purchase
Date(s)”) on which rights granted under the Plan shall be exercised and
purchases of Common Stock carried out in accordance with such Offering.

 

(b)           In connection with each
Offering made under the Plan, the Board or the Committee may specify a maximum
number of shares that may be purchased by any employee as well as a maximum
aggregate number of shares that may be purchased by all eligible employees
pursuant to such Offering.  In addition,
in connection with each Offering that contains more than one Purchase Date, the
Board or the Committee may specify a maximum aggregate number of shares which
may be purchased by all eligible employees on any given Purchase Date under the
Offering.  If the aggregate purchase of shares
upon exercise of rights granted under the Offering would exceed any such
maximum aggregate number, the Board or the Committee shall make a pro rata
allocation of the shares available in as nearly a uniform manner as shall be
practicable and as it shall deem to be equitable.

 

(c)           The purchase price of stock
acquired pursuant to rights granted under the Plan shall be not less than the
lesser of:

 

4

 

(i)            an amount equal to
eighty-five percent (85%) of the fair market value of the stock on the Offering
Date; or

 

(ii)           an amount equal to
eighty-five percent (85%) of the fair market value of the stock on the Purchase
Date.

 

7.             PARTICIPATION;
WITHDRAWAL; TERMINATION.

 

(a)           An eligible employee may
become a participant in the Plan pursuant to an Offering by delivering a
participation agreement to the Company within the time specified in the
Offering, in such form as the Company provides. 
Each such agreement shall authorize payroll deductions of up to the
maximum percentage specified by the Board or the Committee of such employee’s
Earnings during the Offering.  “Earnings”
is defined as an employee’s wages (including amounts thereof elected to be
deferred by the employee, that would otherwise have been paid, under any
arrangement established by the Company that is intended to comply with Section 125,
Section 401(k), Section 402(h) or Section 403(b) of
the Code or that provides non-qualified deferred compensation), which shall
include overtime pay, bonuses and commissions, but shall exclude incentive pay,
profit sharing, other remuneration paid directly to the employee, the cost of
employee benefits paid for by the Company or an Affiliate, education or tuition
reimbursements, imputed income arising under any group insurance or benefit
program, traveling expenses, business and moving expense reimbursements, income
received in connection with stock options, contributions made by the Company or
an Affiliate under any employee benefit plan, and similar items of
compensation, as determined by the Board or the Committee.  The payroll deductions made for each
participant shall be credited to an account for such participant under the Plan
and unless otherwise provided in the document comprising an Offering shall be
deposited with the general funds of the Company.  A participant may reduce (including to zero)
or increase such payroll deductions, and an eligible employee may begin such
payroll deductions, after the beginning of any Offering only as provided for in
the Offering.  A participant may make
additional payments into his or her account only if specifically provided for
in the Offering and only if the participant has not had the maximum amount
withheld during the Offering.

 

(b)           At any time during an
Offering, a participant may terminate his or her payroll deductions under the
Plan and withdraw from the Offering by delivering to the Company a notice of
withdrawal in such form as the Company provides.  Such withdrawal may be elected at any time
prior to the end of the Offering except as provided by the Board or the Committee
in the Offering.  Upon such withdrawal
from the Offering by a participant, the Company shall distribute to such
participant all of his or her accumulated payroll deductions (reduced to the
extent, if any, such deductions have been used to acquire stock for the
participant) under the Offering, without interest, and such participant’s
interest in that Offering shall be automatically terminated.  A participant’s withdrawal from an Offering
will have no effect upon such participant’s eligibility to participate in any
other Offerings under the Plan but such participant will be required to deliver
a new participation agreement in order to participate in subsequent Offerings
under the Plan.

 

(c)           Rights granted pursuant to
any Offering under the Plan shall terminate immediately upon cessation of any
participating employee’s employment with the Company and 

 

5

 

any designated Affiliate, for any reason, and the
Company shall distribute to such terminated employee all of his or her
accumulated payroll deductions (reduced to the extent, if any, such deductions
have been used to acquire stock for the terminated employee), under the
Offering, without interest.

 

(d)           Rights granted under the
Plan shall not be transferable by a participant otherwise than by will or the
laws of descent and distribution, or by a beneficiary designation as provided
by the Board and, otherwise during his or her lifetime, shall be exercisable
only by the person to whom such rights are granted.

 

8.             EXERCISE.

 

(a)           On each Purchase Date
specified therefor in the relevant Offering, each participant’s accumulated
payroll deductions and other additional payments specifically provided for in
the Offering (without any increase for interest) will be applied to the
purchase of whole shares of stock of the Company, up to the maximum number of
shares permitted pursuant to the terms of the Plan and the applicable Offering,
at the purchase price specified in the Offering.  No fractional shares shall be issued upon the
exercise of rights granted under the Plan. 
The amount, if any, of accumulated payroll deductions remaining in each
participant’s account after the purchase of shares which is less than the
amount required to purchase one share of stock on the final Purchase Date of an
Offering shall be held in each such participant’s account for the purchase of
shares under the next Offering under the Plan, unless such participant
withdraws from such next Offering, as provided in subparagraph 7(b), or is no
longer eligible to be granted rights under the Plan, as provided in
paragraph 5, in which case such amount shall be distributed to the
participant after such final Purchase Date, without interest.  The amount, if any, of accumulated payroll
deductions remaining in any participant’s account after the purchase of shares
which is equal to the amount required to purchase whole shares of stock on the
final Purchase Date of an Offering shall be distributed in full to the
participant after such Purchase Date, without interest.

 

(b)           No rights granted under the
Plan may be exercised to any extent unless the shares to be issued upon such
exercise under the Plan (including rights granted thereunder) are covered by an
effective registration statement pursuant to the Securities Act of 1933, as
amended (the “Securities Act”) and the Plan is in material compliance with all
applicable state, foreign and other securities and other laws applicable to the
Plan.  If on a Purchase Date in any
Offering hereunder the Plan is not so registered or in such compliance, no
rights granted under the Plan or any Offering shall be exercised on such
Purchase Date, and the Purchase Date shall be delayed until the Plan is subject
to such an effective registration statement and such compliance, except that
the Purchase Date shall not be delayed more than twelve (12) months and the
Purchase Date shall in no event be more than twenty-seven (27) months from the
Offering Date.  If on the Purchase Date
of any Offering hereunder, as delayed to the maximum extent permissible, the
Plan is not registered and in such compliance, no rights granted under the Plan
or any Offering shall be exercised and all payroll deductions accumulated
during the Offering (reduced to the extent, if any, such deductions have been used
to acquire stock) shall be distributed to the participants, without interest.

 

6

 

9.             COVENANTS
OF THE COMPANY.

 

(a)           During the terms of the
rights granted under the Plan, the Company shall keep available at all times
the number of shares of stock required to satisfy such rights.

 

(b)           The Company shall seek to
obtain from each federal, state, foreign or other regulatory commission or
agency having jurisdiction over the Plan such authority as may be required to
issue and sell shares of stock upon exercise of the rights granted under the
Plan.  If, after reasonable efforts, the
Company is unable to obtain from any such regulatory commission or agency the
authority which counsel for the Company deems necessary for the lawful issuance
and sale of stock under the Plan, the Company shall be relieved from any
liability for failure to issue and sell stock upon exercise of such rights
unless and until such authority is obtained.

 

10.          USE OF
PROCEEDS FROM STOCK.

 

Proceeds
from the sale of stock pursuant to rights granted under the Plan shall
constitute general funds of the Company.

 

11.          RIGHTS
AS A STOCKHOLDER.

 

A
participant shall not be deemed to be the holder of, or to have any of the
rights of a holder with respect to, any shares subject to rights granted under
the Plan unless and until the participant’s shareholdings acquired upon
exercise of rights under the Plan are recorded in the books of the Company.

 

12.          ADJUSTMENTS
UPON CHANGES IN STOCK.

 

(a)           If any change is made in the
stock subject to the Plan, or subject to any rights granted under the Plan, due
to a change in corporate capitalization and without the receipt of
consideration by the Company (through reincorporation, stock dividend, stock
split, reverse stock split, combination or reclassification of shares), the
Plan will be appropriately and proportionately adjusted in the class(es) and
maximum number of securities subject to the Plan pursuant to subsection 3(a),
and the outstanding rights will be appropriately adjusted in the class(es) and
number of securities and price per share of stock subject to such outstanding
rights.  Such adjustments shall be made
by the Board, the determination of which shall be final, binding and
conclusive.

 

(b)           In the event of:  (1) a dissolution or liquidation of the
Company; (2) a sale of all or substantially all of the assets of the
Company, (3) a merger or consolidation in which the Company is not the
surviving corporation, (4) a reverse merger in which the Company is the
surviving corporation but the shares of Common Stock outstanding immediately
preceding the merger are converted by virtue of the merger into other property,
whether in the form of securities, cash or otherwise, (5) an acquisition
by any person, entity or group within the meaning of Section 13(d) or
14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), or any comparable successor provisions (excluding any employee benefit
plan, or related trust, sponsored or maintained by the Company or a Subsidiary)
of the beneficial ownership (within the meaning of Rule 13d-3 promulgated
under the Exchange Act, or comparable 

 

7

 

successor rule) of securities of the Company
representing at least fifty percent (50%) of the combined voting power entitled
to vote in the election of Directors, or (6) the individuals who, as of
the date of the adoption of this Plan, are members of the Board (the “Incumbent
Board”), cease for any reason to constitute at least fifty percent (50%) of the
Board (if the election, or nomination for election, by the Company’s
stockholders of any new director was approved by a vote of at least fifty
percent (50%) of the Incumbent Board, such new director shall be considered as
a member of the Incumbent Board), then, as determined by the Board in its sole
discretion, (i) any surviving corporation may assume outstanding rights or
substitute similar rights for those under the Plan, (ii) such rights may
continue in full force and effect, or (iii) participants’ accumulated
payroll deductions may be used to purchase Common Stock immediately prior to
the transaction described above and the participants’ rights under the ongoing
Offering terminated.

 

13.          AMENDMENT
OF THE PLAN.

 

(a)           The Board at any time, and
from time to time, may amend the Plan. 
However, except as provided in paragraph 12 relating to adjustments
upon changes in stock, no amendment shall be effective unless approved by the
stockholders of the Company within twelve (12) months before or after the
adoption of the amendment, where the amendment will:

 

(i)            Increase the number of
shares reserved for rights under the Plan;

 

(ii)           Modify the provisions as to
eligibility for participation in the Plan (to the extent such modification
requires stockholder approval in order for the Plan to obtain employee stock
purchase plan treatment under Section 423 of the Code or to comply with
the requirements of Rule 16b-3 promulgated under the Securities Exchange
Act of 1934, as amended (“Rule 16b-3”)); or

 

(iii)         Modify the Plan in any other
way if such modification requires stockholder approval in order for the Plan to
obtain employee stock purchase plan treatment under Section 423 of the
Code or to comply with the requirements of Rule 16b-3.

 

It
is expressly contemplated that the Board may amend the Plan in any respect the
Board deems necessary or advisable to provide eligible employees with the
maximum benefits provided or to be provided under the provisions of the Code
and the regulations promulgated thereunder relating to employee stock purchase
plans and/or to bring the Plan and/or rights granted under it into compliance
therewith.

 

(b)           Rights and obligations under
any rights granted before amendment of the Plan shall not be impaired by any
amendment of the Plan, except with the consent of the person to whom such
rights were granted, or except as necessary to comply with any laws or
governmental regulations, or except as necessary to ensure that the Plan and/or
rights granted under the Plan comply with the requirements of Section 423
of the Code.

 

8

 

14.          TERMINATION
OR SUSPENSION OF THE PLAN.

 

(a)           The Board in its discretion,
may suspend or terminate the Plan at any time. 
No rights may be granted under the Plan while the Plan is suspended or
after it is terminated.

 

(b)           Rights and obligations under
any rights granted while the Plan is in effect shall not be altered or impaired
by suspension or termination of the Plan, except as expressly provided in the Plan
or with the consent of the person to whom such rights were granted, or except
as necessary to comply with any laws or governmental regulation, or except as
necessary to ensure that the Plan and/or rights granted under the Plan comply
with the requirements of Section 423 of the Code.

 

15.          EFFECTIVE
DATE OF PLAN.

 

The
Plan shall become effective on the day immediately prior to the effectiveness
of the Company’s registration statement under the Securities Act with respect
to the initial public offering of shares of the Company’s Common Stock (the “Effective
Date”), but no rights granted under the Plan shall be exercised unless and
until the Plan has been approved by the stockholders of the Company within
twelve (12) months before or after the date the Plan is adopted by the Board or
the Committee, which date may be prior to the Effective Date.

 

9

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