Document:

Exhibit 10.44

 

BONUS AGREEMENT

 

155
East Tropicana LLC, dba Hooters Casino Hotel and Deborah J. Pierce, CFO hereby
agree to a one time bonus in connection with the Purchase Agreement between
Hedwigs Las Vegas Top Tier, LLC (“Hedwigs”) and 155 East Tropicana, LLC.  This agreement does not modify, amend or
supersede the Change of Control Agreement dated March 23, 2007 or the
employment agreement dated January 2005 between the same parties.

 

In
recognition of the additional work involved with assisting with the due
diligence, negotiation of the casino lease agreement, and other duties
connected with the Purchase Agreement, the Company agrees to award Deborah J.
Pierce a bonus of $40,000 at the time that the land, building, and non-gaming
assets of the Company are transferred to Hedwigs or its affiliates.  If the Purchase Agreement is cancelled and
the aforementioned transaction is not consummated, Deborah Pierce will be
awarded a reduced bonus of $20,000 in compensation for her efforts.

 

The
Company may terminate this agreement and all of its obligations hereunder upon
occurrence of any of the following events: Deborah Pierce’s (a) material
breach of this Agreement; (b) failure or inability to perform her duties
within expectations oh the company; (c) conviction of a felony or any
other crime involving moral turpitude or dishonesty which, in the good opinion
of the Company, would impair her ability to perform her duties or the business
reputation of the Company; her failure or refusal to comply with the policies,
standards or regulations of the Company; her unauthorized disclosure of trade
secrets and/or other confidential business information  of the Company; (f) breach of her duty
of loyalty; (g) act of fraud, misrepresentation, theft or embezzlement or
misappropriation of assets of the Company; or (h) failure to secure and/or
maintain her required licenses by governmental agencies with jurisdiction over
the business of the Company.

 

	
  Deborah
  J. Pierce

  	
   

  	
   

  	
  155
  East Tropicana LLC

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Deborah J. Pierce

  	
   

  	
   

  	
  By:

  	
  /s/
  Michael J. Hessling

  
	
   

  	
   

  	
   

  	
   

  
	
  Dated:
  November 19, 2007

  	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  	
   

  	
  Dated:
  November 19, 2007Exhibit 4.4

 

POWER MEDICAL INTERVENTIONS, INC.

 

2007 EQUITY INCENTIVE PLAN

 

SECTION 1.  General Purpose
of the Plan; Definitions

 

The purpose of this Power Medical
Interventions, Inc. 2007 Equity Incentive Plan (the “Plan”) is to
encourage and enable officers and employees of, and other persons providing
services to, Power Medical Interventions, Inc.  (the
“Company”) and its Affiliates to acquire a proprietary interest in the
Company.  It is anticipated that
providing such persons with a direct stake in the Company’s welfare will assure
a closer identification of their interests with those of the Company and its
shareholders, thereby stimulating their efforts on the Company’s behalf and
strengthening their desire to remain with the Company.

 

The following terms shall be defined as set forth below:

 

“Affiliate”  means
a parent corporation, if any, and each subsidiary corporation of the Company,
as those terms are defined in Section 424 of the Code.

 

“Award” or “Awards”, except
where referring to a particular category of grant under the Plan, shall include
Incentive Stock Options, Non-Statutory Stock Options, Restricted Stock Awards,
Unrestricted Stock Awards, Performance Share Awards and Stock Appreciation
Rights.  Awards shall be evidenced by a
written agreement (which may be in electronic form and may be electronically
acknowledged and accepted by the recipient) containing such terms and
conditions not inconsistent with the provisions of this Plan as the Committee
shall determine.

 

“Board” means the Board of Directors of the Company.

 

“Cause” shall mean, with respect to
any Award holder, a determination by the Company (including the Board) or any
Affiliate that the Holder’s employment or other relationship with the Company
or any such Affiliate should be terminated as a result of (i) a material
breach by the Award holder of any agreement to which the Award holder and the
Company (or any such Affiliate) are parties, (ii) any act (other than
retirement) or omission to act by the Award holder that may have a material and
adverse effect on the business of the Company, such Affiliate or any other
Affiliate or on the Award holder’s ability to perform services for the Company
or any such Affiliate, including, without limitation, the proven or admitted
commission of any crime (other than an ordinary traffic violation), or (iii) any
material misconduct or material neglect of duties by the Award holder in
connection with the business or affairs of the Company or any such Affiliate.

 

“Change of Control” shall have the meaning set forth in Section 15.

 

“Code” means the Internal Revenue Code
of 1986, as amended, and any successor Code, and related rules, regulations and
interpretations.

 

“Committee” shall have the meaning set forth in Section 2.

 

 

“Disability” means disability as set
forth in Section 22(e)(3) of the Code.

 

“Effective Date” means the date on
which the Plan is approved by the Board of Directors as set forth in Section 17.

 

“Eligible Person” shall have the meaning set forth in Section 4.

 

“Exchange Act” shall mean the Securities Exchange Act of 1934,
as amended.

 

“Fair Market Value” on any given date
means the closing price per share of the Stock on such date as reported by such
registered national securities exchange on which the Stock is listed, including
the Nasdaq Global Market, or, if the Stock is not listed on such an exchange,
as quoted on NASDAQ; provided, that, if there is no trading on such date, Fair
Market Value shall be deemed to be the closing price per share on the last
preceding date on which the Stock was traded. 
If the Stock is not listed on any registered national securities
exchange or quoted on NASDAQ, the Fair Market Value of the Stock shall be
determined in good faith by the Committee.

 

“Incentive Stock Option” means any
Stock Option designated and qualified as an “incentive stock option” as defined
in Section 422 of the Code.

 

“Non-Employee Director” means any
director who: (i) is not currently an officer of the Company or an
Affiliate, or otherwise currently employed by the Company or an Affiliate,      (ii) does not receive compensation,
either directly or indirectly, from the Company or an Affiliate, for services
rendered as a consultant or in any capacity other than as a director, except
for an amount that does not exceed the dollar amount for which disclosure would
be required pursuant to Rule 404(a) of Regulation S-K promulgated by
the SEC, (iii) does not possess an interest in any other transaction for
which disclosure would be required pursuant to Rule 404(a) of  Regulation S-K, and (iv) is not engaged
in a business relationship for which disclosure would be required pursuant to Rule 404(b) of
Regulation S-K.

 

“Non-Statutory Stock Option” means any
Stock Option that is not an Incentive Stock Option.

 

“Normal Retirement” means retirement
in good standing from active employment with the Company and its Affiliates in
accordance with the retirement policies of the Company and its Affiliates then
in effect, if any.

 

“Option” or “Stock Option”
means any option to purchase shares of Stock granted pursuant to Section 5.

 

“Outside Director” means any director
who (i) is not an employee of the Company or of any “affiliated group,” as
such term is defined in Section 1504(a) of the Code, which includes
the Company (an “Affiliated Group Member”), (ii) is not a former
employee of the Company or any Affiliated Group Member who is receiving
compensation for prior services (other than benefits under a tax-qualified
retirement plan) during the Company’s or any Affiliated Group Member’s taxable
year, (iii) has not been an officer of the Company or any Affiliated Group
Member and (iv) does not receive remuneration from the Company or any
Affiliated Group Member, either 

 

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directly or
indirectly, in any capacity other than as a director.  “Outside Director” shall be determined in
accordance with Section 162(m) of the Code and the Treasury
regulations issued thereunder.

 

“Performance Share Award” means an
Award pursuant to Section 8.

 

“Restricted Stock Award” means an
Award granted pursuant to Section 6.

 

“SEC” means the Securities and
Exchange Commission or any successor authority.

 

“Stock” means the common stock, $.001
par value per share, of the Company, subject to adjustments pursuant to Section 3.

 

“Stock Appreciation Right” means an
Award granted pursuant to Section 9.

 

“Unrestricted Stock Award” means Awards granted pursuant to Section 7.

 

SECTION 2.  Administration of Plan; Committee Authority
to Select Participants and Determine Awards.

 

(a)      Committee.  It is intended that the Plan shall be
administered by the Compensation Committee of the Board (the “Committee”),
consisting of not less than two (2) persons each of whom qualifies as an
Outside Director and a Non-Employee Director, but the authority and validity of
any act taken or not taken by the Committee shall not be affected if any person
administering the Plan is not an  Outside
Director or a Non-Employee Director. 
Except as specifically reserved to the Board under the terms of the
Plan, and subject to any limitations set forth in the charter of the Committee,
the Committee shall have full and final authority to operate, manage and
administer the Plan on behalf of the Company.

 

(b)      Powers of
Committee.  The Committee
shall have the power and authority to grant and modify Awards consistent with
the terms of the Plan, including the power and authority:

 

(i)            to select the persons to whom Awards may
from time to time be granted;

 

(ii)           to determine the time or times of grant, and
the extent, if any, of Incentive Stock Options, Non-Statutory Stock Options,
Restricted Stock, Unrestricted Stock, Performance Shares and Stock Appreciation
Rights, or any combination of the foregoing, granted to any one or more
participants;

 

(iii)          to determine the number of shares to be
covered by any Award;

 

(iv)          to determine and modify the terms and
conditions, including restrictions, not inconsistent with the terms of the
Plan, of any Award, which terms and conditions may differ among individual
Awards and participants, and to approve the form of written instruments
evidencing the Awards; provided, however, that no such action shall adversely
affect rights under any outstanding Award without the participant’s consent;

 

3

 

(v)           to accelerate the exercisability or vesting
of all or any portion of any Award;

 

(vi)          to extend the period in which any outstanding
Stock Option or Stock Appreciation Right may be exercised; and

 

(vii)         to adopt, alter and repeal such rules,
guidelines and practices for administration of the Plan and for its own acts
and proceedings as it shall deem advisable; to interpret the terms and
provisions of the Plan and any Award (including related written instruments);
to make all determinations it deems advisable for the administration of the
Plan; to decide all disputes arising in connection with the Plan; and to
otherwise supervise the administration of the Plan.

 

All decisions and interpretations of the
Committee shall be binding on all persons, including the Company and Plan
participants.  No member or former member
of the Committee or the Board shall be liable for any action or determination
made in good faith with respect to this Plan.

 

SECTION 3.  Shares Issuable
under the Plan; Mergers; Substitution.

 

(a)      Shares Issuable.

 

(i)            The maximum number of shares of Stock which
may be issued in respect of Awards (including Stock Appreciation Rights)
granted under the Plan, shall be the sum of  (A) 10,890,550
plus (B) the number of shares subject to Prior Plan Forfeitures as defined
Section 3(a)(ii) below, provided, that in no event shall the number of
shares deemed to be subject to Prior Plan Forfeitures for purposes of this
clause (B) exceed 38,959,759 (subject, in each case, to adjustment
upon changes in capitalization of the Company as provided in this Section 3).  For
purposes of the limitations in the previous sentence, the shares of Stock
underlying any Awards which are forfeited, cancelled, reacquired by the Company
or are
tendered in payment of the exercise price or otherwise terminated (other
than by exercise) shall be added back to the shares of Stock with respect to
which Awards may be granted under the Plan. 
Shares issued under the Plan may be authorized but unissued shares or
shares reacquired by the Company.

 

(ii)           If an option or award granted pursuant to either
the Company’s 2000 Stock Option Plan (the “2000 Plan”) or 2004 Stock
Incentive Plan (the “2004 Plan”) shall be forfeited, cancelled,
reacquired, expire, be tendered in payment of the exercise price, or otherwise
terminate, for any reason (other than by exercise), the number of shares of
Stock subject to such option or award shall be deemed to have been subject to a
“Prior Plan Forfeiture” for purposes of Section 3(a)(i) above.

 

(b)      Limitation
on Awards.  In no event may
any Plan participant be granted Awards (including Stock Appreciation Rights)
with respect to more than 10,000,000 shares of Stock in any calendar year. The
number of shares of Stock relating to an Award granted to a Plan participant in
a calendar year that is subsequently forfeited, cancelled or otherwise
terminated shall continue to count toward the foregoing limitation in such
calendar year.  In addition, if the
exercise price of an Award is subsequently reduced, the transaction shall be
deemed a 

 

4

 

cancellation
of the original Award and the grant of a new one so that both transactions
shall count toward the maximum shares issuable in the calendar year of each
respective transaction.

 

(c)           Stock Dividends, Mergers,
etc.  In the event that after
approval of the Plan by the stockholders of the Company in accordance with Section 17,
the Company effects a stock dividend, stock split or similar change in
capitalization affecting the Stock, the Committee shall make appropriate
adjustments in (i) the number and kind of shares of stock or securities
with respect to which Awards may thereafter be granted (including without
limitation the limitations set forth in Sections 3(a) and (b) above),
(ii) the number and kind of shares remaining subject to outstanding
Awards, and (iii) the option or purchase price in respect of such
shares.  In the event of any merger,
consolidation, dissolution or liquidation of the Company, the Committee in its
sole discretion may, as to any outstanding Awards, make such substitution or
adjustment in the aggregate number of shares reserved for issuance under the
Plan and in the number and purchase price (if any) of shares subject to such
Awards as it may determine and as may be permitted by the terms of such
transaction, or accelerate, amend or terminate such Awards upon such terms and
conditions as it shall provide (which, in the case of the termination of the
vested portion of any Award, shall require payment or other consideration which
the Committee deems equitable in the circumstances), subject, however, to the
provisions of Section 15.

 

(d)           Substitute Awards.  The Committee may grant Awards under the Plan
in substitution for stock and stock based awards held by employees of another
corporation who concurrently become employees of the Company or an Affiliate as
the result of a merger or consolidation of the employing corporation with the
Company or an Affiliate or the acquisition by the Company or an Affiliate of
property or stock of the employing corporation. 
The Committee may direct that the substitute awards be granted on such
terms and conditions as the Committee considers appropriate in the
circumstances.

 

SECTION 4.  Eligibility.

 

Awards may be granted to officers, directors
and employees of, and consultants and advisers to, the Company or its
Affiliates (“Eligible Persons”).

 

SECTION 5.  Stock Options.

 

The Committee may grant to Eligible Persons options to purchase stock.

 

Any Stock Option granted under the Plan shall
be in such form as the Committee may from time to time approve.

 

Stock Options granted under the Plan may be
either Incentive Stock Options (subject to compliance with applicable law) or
Non-Statutory Stock Options.  Unless
otherwise so designated, an Option shall be a Non-Statutory Stock Option.  To the extent that any option does not
qualify as an Incentive Stock Option, it shall constitute a Non-Statutory Stock
Option.

 

No Incentive Stock Option shall be granted
under the Plan after the tenth anniversary of the date of adoption of the Plan
by the Board.

 

5

 

The Committee in its discretion may determine
the effective date of Stock Options, provided, however, that grants of
Incentive Stock Options shall be made only to persons who are, on the effective
date of the grant, employees of the Company or an Affiliate.  Stock Options granted pursuant to this Section 5
shall contain such additional terms and conditions, not inconsistent with the
terms of the Plan, as the Committee shall deem desirable.

 

(a)           Exercise Price.  The exercise price per share for the Stock
covered by a Stock Option granted pursuant to this Section 5 shall be
determined by the Committee at the time of grant but shall be not less than one
hundred percent (100%) of Fair Market Value on the date of grant.  If an employee owns or is deemed to own (by
reason of the attribution rules applicable under Section 424(d) of
the Code) more than ten percent (10%) of the combined voting power of all
classes of stock of the Company or any subsidiary or parent corporation and an
Incentive Stock Option is granted to such employee, the option price shall be
not less than one hundred ten percent (110%) of Fair Market Value on the date
of grant.

 

(b)           Option Term.  The term
of each Stock Option shall be fixed by the Committee, but no Incentive Stock
Option shall be exercisable more than seven (7)  years after the date the
option is granted.  If an employee owns
or is deemed to own (by reason of the attribution rules of Section 424(d) of
the Code) more than ten percent (10%) of the combined voting power of all
classes of stock of the Company or any subsidiary or parent corporation and an
Incentive Stock Option is granted to such employee, the term of such option
shall be no more than five (5) years from the date of grant.

 

(c)           Exercisability; Rights of a Shareholder.  Stock Options shall become vested and
exercisable at such time or times, whether or not in installments, as shall be
determined by the Committee.  The
Committee may at any time accelerate the exercisability of all or any portion
of any Stock Option.  An optionee shall
have the rights of a shareholder only as to shares acquired upon the exercise
of a Stock Option and not as to unexercised Stock Options.

 

(d)           Method of Exercise. Stock Options may be exercised in whole
or in part, by delivering written notice of exercise to the Company, specifying
the number of shares to be purchased. 
Payment of the purchase price may be made by delivery of cash or bank
check or other instrument acceptable to the Committee in an amount equal to the
exercise price of such Options, or, to the extent provided in the applicable
Option Agreement, by one or more of the following methods:

 

(i)            by
delivery to the Company of shares of Stock of the Company having a fair market
value equal in amount to the aggregate exercise price of the Options being
exercised; or

 

(ii)           to
the extent permitted by applicable law, by a personal recourse note issued by
the optionee to the Company in a principal amount equal to such aggregate
exercise price and with such other terms, including interest rate and maturity,
as the Company may determine in its discretion; provided,
however, that the interest rate borne by such note shall not be less
than the lowest applicable federal rate, as defined in Section 1274(d) of
the Code; or

 

6

 

(iii)          if
the class of Stock is registered under the Exchange Act at such time, by
delivery to the Company of a properly executed exercise notice along with
irrevocable instructions to a broker to deliver promptly to the Company cash or
a check payable and acceptable to the Company for the purchase price; provided
that in the event that the optionee chooses to pay the purchase price as so provided,
the optionee and the broker shall comply with such procedures and enter into
such agreements of indemnity and other agreements as the Committee shall
prescribe as a condition of such payment procedure (including, in the case of
an optionee who is an executive officer of the Company, such procedures and
agreements as the Committee deems appropriate in order to avoid any extension
of credit in the form of a personal loan to such officer).  The Company need not act upon such exercise
notice until the Company receives full payment of the exercise price; or

 

(iv)          by
reducing the number of Option shares otherwise issuable to the optionee upon
exercise of the Option by a number of shares of Common Stock having a fair
market value equal to such aggregate exercise price of the Options being
exercised; or

 

(v)           by
any combination of such methods of payment.

 

The delivery of certificates representing
shares of Stock to be purchased pursuant to the exercise of a Stock Option will
be contingent upon receipt from the Optionee (or a purchaser acting in his
stead in accordance with the provisions of the Stock Option) by the Company of
the full purchase price for such shares and the fulfillment of any other
requirements contained in the Stock Option or imposed by applicable law.

 

(e)           Non-transferability of Options.  Except as the Committee may provide with
respect to a Non-Statutory Stock Option, no Stock Option shall be transferable
other than by will or by the laws of descent and distribution and all Stock
Options shall be exercisable, during the optionee’s lifetime, only by the
optionee.

 

(f)            Annual Limit on Incentive Stock Options.  To the extent required for “incentive stock
option” treatment under Section 422 of the Code, the aggregate Fair Market
Value (determined as of the time of grant) of the Stock with respect to which
Incentive Stock Options granted under this Plan and any other plan of the
Company or its Affiliates become exercisable for the first time by an optionee
during any calendar year shall not exceed $100,000.

 

SECTION 6.         Restricted Stock Awards.

 

(a)           Nature of Restricted Stock
Award.  The Committee in its
discretion may grant Restricted Stock Awards to any Eligible Person, entitling
the recipient to acquire, for such purchase price, if any, as may be determined
by the Committee, shares of Stock subject to such restrictions and conditions
as the Committee may determine at the time of grant (“Restricted Stock”),
including continued employment and/or achievement of pre-established
performance goals and objectives.

 

(b)           Acceptance of Award.  A participant who is granted a Restricted
Stock Award shall have no rights with respect to such Award unless the
participant shall have accepted the Award within sixty (60) days (or such
shorter date as the Committee may specify) following the award date by making
payment to the Company of the specified purchase price, if any, of the 

 

7

 

shares covered
by the Award and by executing and delivering to the Company a written instrument
that sets forth the terms and conditions applicable to the Restricted Stock in
such form as the Committee shall determine.

 

(c)           Rights as a Shareholder.  Upon complying with Section 6(b) above,
a participant shall have all the rights of a shareholder with respect to the
Restricted Stock, including voting and dividend rights, subject to
non-transferability restrictions and Company repurchase or forfeiture rights
described in this Section 6 and subject to such other conditions contained
in the written instrument evidencing the Restricted Award.  Unless the Committee shall otherwise
determine, certificates evidencing shares of Restricted Stock Award shall
remain in the possession of the Company until such shares are vested as
provided in Section 6(e) below.

 

(d)           Restrictions.  Shares of Restricted Stock may not be sold,
assigned, transferred, pledged or otherwise encumbered or disposed of except as
specifically provided herein.  In the
event of termination of employment by the Company and its Affiliates for any
reason (including Normal Retirement and for Cause but excluding death or
Disability), any shares of Restricted Stock which have not then vested  shall automatically be forfeited to the
Company.

 

(e)           Vesting of Restricted
Stock.  The Committee at the
time of grant shall specify the date or dates and/or the attainment of
pre-established performance goals, objectives and other conditions on which the
non-transferability of the Restricted Stock and the Company’s right of
forfeiture shall lapse.  Subsequent to
such date or dates and/or the attainment of such pre-established performance
goals, objectives and other conditions, the shares on which all restrictions
have lapsed shall no longer be Restricted Stock and shall be deemed “vested.”  The Committee at any time may accelerate such
date or dates and otherwise waive or, subject to Section 13, amend any
conditions of the Award.

 

(f)            Waiver, Deferral and
Reinvestment of Dividends. 
The written instrument evidencing the Restricted Stock Award may require
or permit the immediate payment, waiver, deferral or investment of dividends
paid on the Restricted Stock.

 

SECTION 7.  Unrestricted
Stock Awards.

 

(a)           Grant or Sale of
Unrestricted Stock.  The
Committee in its discretion may grant or sell to any Eligible Person shares of
Stock free of any restrictions under the Plan (“Unrestricted Stock”) at
a purchase price, if any, determined by the Committee.  Shares of Unrestricted Stock may be granted
or sold as described in the preceding sentence in respect of past services or
other valid consideration.

 

(b)           Restrictions on Transfers.  The right to receive unrestricted Stock may
not be sold, assigned, transferred, pledged or otherwise encumbered, other than
by will or the laws of descent and distribution.

 

SECTION 8.  Performance
Share Awards.

 

A Performance Share Award is an award
entitling the recipient to acquire shares of Stock upon the attainment of
specified performance goals.  The
Committee may make Performance Share Awards independent of or in connection
with the granting of any other Award under the

 

8

 

Plan.  Performance Share Awards may be granted under
the Plan to any Eligible Person.  The
Committee in its discretion shall determine whether and to whom Performance
Share Awards shall be made, the performance goals applicable under each such
Award (which may include, without limitation, continued employment by the
recipient or a specified achievement by the recipient, the Company or any
business unit of the Company), the periods during which performance is to be
measured, and all other limitations and conditions applicable to the Award or
the Stock issuable thereunder.  Upon the
attainment of the specified performance goal shares of Stock shall be issued
pursuant to the Performance Share Award as soon as practicable thereafter, but
in no event later than two and one-half months after the calendar year in which
such performance goal is attained.

 

SECTION 9.  Stock Appreciation Rights.

 

The Committee in its discretion may grant
Stock Appreciation Rights to any Eligible Person.  A Stock Appreciation Right shall entitle the
participant upon exercise thereof to receive from the Company, upon written
request to the Company at its principal offices (the “Request”), a
number of shares of Stock, or an amount of cash, or combination of each, having
an aggregate Fair Market Value equal to the product of (a) the excess of
Fair Market Value, on the date of such Request, over the exercise price per
share of Stock specified in such Stock Appreciation Right (which exercise price
shall be not less than one hundred percent (100%) of Fair Market Value on the
date of grant), multiplied by (b) the number of shares of Stock for which
such Stock Appreciation Right shall be exercised.

 

SECTION 10.  Termination
of Stock Options and Stock Appreciation Rights.

 

                (a)           Incentive
Stock Options:

 

(i)            Termination by Death. 
If any participant’s employment by the Company and its Affiliates
terminates by reason of death, any Incentive Stock Option owned by such
participant may thereafter be exercised to the extent exercisable at the date
of death, by the legal representative or legatee of the participant, for a
period of one (1) year from the date of death, or until the expiration of
the stated term of the Incentive Stock Option, if earlier.

 

(ii)           Termination by Reason of Disability or Normal Retirement.

 

(A)          Any
Incentive Stock Option held by a participant whose employment by the Company
and its Affiliates has terminated by reason of Disability may thereafter be
exercised, to the extent it was exercisable at the time of such termination,
for a period of one (1) year from the date of such termination of
employment, or until the expiration of the stated term of the Option, if
earlier.

 

(B)           Any
Incentive Stock Option held by a participant whose employment by the Company
and its Affiliates has terminated by reason of Normal Retirement may thereafter
be exercised, to the extent it was exercisable at the time of such termination,
for a period of ninety (90) days from the date of such termination of
employment, or until the expiration of the stated term of the Option, if
earlier.

 

9

 

(C)           The
Committee shall have sole authority and discretion to determine whether a
participant’s employment has been terminated by reason of Disability or Normal
Retirement.

 

(iii)          Termination for Cause. 
If any participant’s employment by the Company and its Affiliates has
been terminated for Cause, as determined by the Committee in its sole
discretion, any Incentive Stock Option held by such participant shall
immediately terminate and be of no further force and effect.

 

(iv)          Other Termination. 
Unless otherwise determined by the Committee, if a participant’s
employment by the Company and its Affiliates terminates for any reason other
than death, Disability, Normal Retirement or for Cause, any Incentive Stock
Option held by such participant may thereafter be exercised, to the extent it
was exercisable on the date of termination of employment, for ninety (90) days
from the date of termination of employment or until the expiration of the
stated term of the Option, if earlier.

 

(b)           Non-Statutory Stock
Options and Stock Appreciation Rights.  Any Non-Statutory Stock Option or Stock
Appreciation Right granted under the Plan shall contain such terms and
conditions with respect to its termination as the Committee, in its discretion,
may from time to time determine.

 

SECTION 11.  Tax Withholding
and Notice.

 

(a)           Payment by Participant.  Each participant shall, no later than the
date as of which the value of an Award or of any Stock or other amounts
received thereunder first becomes includable in the gross income of the
participant for Federal income tax purposes, pay to the Company, or make
arrangements satisfactory to the Committee regarding payment of any Federal,
state, local and/or payroll taxes of any kind required by law to be withheld
with respect to such income.  The Company
and its Affiliates shall, to the extent permitted by law, have the right to
deduct any such taxes from any payment of any kind otherwise due to the
participant.

 

(b)           Payment in Shares.  A Participant may elect, with the consent of
the Committee, to have such tax withholding obligation satisfied, in whole or
in part, by (i) authorizing the Company to withhold from shares of Stock
to be issued pursuant to an Award a number of shares with an aggregate Fair
Market Value (as of the date the withholding is effected) that would satisfy
the minimum withholding amount due with respect to such Award, or (ii) delivering
to the Company a number of shares of Stock with an aggregate Fair Market Value
(as of the date the withholding is effected) that would satisfy the withholding
amount due.

 

(c)           Notice of Disqualifying Disposition.  Each holder of an Incentive
Option shall agree to notify the Company in writing immediately after making a
disqualifying disposition (as defined in Section 421(b) of the Code)
of any Stock purchased upon exercise of an Incentive Stock Option.

 

10

 

SECTION 12.  Transfer
and Leave of Absence.

 

For purposes of
the Plan, the following events shall not be deemed a termination of employment:

 

(a)           a transfer to the employment of the Company
from an Affiliate or from the Company to an Affiliate, or from one Affiliate to
another;

 

(b)           an approved leave of absence for military
service or sickness, or for any other purpose approved by the Company, if the
employee’s right to re-employment is guaranteed either by a statute or by
contract or under the policy pursuant to which the leave of absence was granted
or if the Committee otherwise so provides in writing; provided, that the
vesting date or dates of any unvested Award held by such employee shall
automatically be extended by a period of time equal to the period of such
approved leave of absence.

 

SECTION 13.  Amendments and Termination.

 

The Board may at any time amend or
discontinue the Plan and the Committee may at any time amend or cancel any
outstanding Award for the purpose of satisfying changes in law or for any other
lawful purpose, but no such action shall adversely affect rights under any
outstanding Award without the holder’s consent. 
Notwithstanding the foregoing, neither the Board nor the Committee shall
have the power or authority to decrease the exercise price of any outstanding
Stock Option or Stock Appreciation Right, whether through amendment,
cancellation and regrant, exchange or any other means, except for changes made
pursuant to Section 3(c).

 

This Plan shall terminate as of the tenth
anniversary of its effective date.  The
Board may terminate this Plan at any earlier time for any reason.  No Award may be granted after the Plan has
been terminated.  No Award granted while
this Plan is in effect shall be adversely altered or impaired by termination of
this Plan, except upon the consent of the holder of such Award.  The power of the Committee to construe and
interpret this Plan and the Awards granted prior to the termination of this
Plan shall continue after such termination.

 

SECTION 14.  Status of Plan.

 

With respect to the portion of any Award
which has not been exercised and any payments in cash, Stock or other
consideration not received by a participant, a participant shall have no rights
greater than those of a general creditor of the Company unless the Committee
shall otherwise expressly determine in connection with any Award or Awards.

 

SECTION 15.  Change of Control Provisions.

 

(a)           Upon the occurrence of
a Change of Control as defined in this Section 15:

 

(i)            subject
to the provisions of clauses (iii) and (iv) below, after the
effective date of such Change of Control, each holder of an outstanding Stock
Option, Restricted Stock Award, Performance Share Award or Stock Appreciation
Right shall be entitled, upon exercise of such Award, to receive, in lieu of
shares of Stock (or consideration based upon the Fair Market Value of Stock),
shares of such stock or other securities, cash or property (or 

 

11

 

consideration based upon shares of such stock or other securities, cash
or property) as the holders of shares of Stock received in connection with the
Change of Control; and

 

(ii)           the
Committee may accelerate, fully or in part, the time for exercise of, and waive
any or all conditions and restrictions on, each unexercised and unexpired Stock
Option, Restricted Stock Award, Performance Share Award and Stock Appreciation
Right, effective upon a date prior or subsequent to the effective date of such
Change of Control, as specified by the Committee;

 

(iii)          each
outstanding Stock Option, Restricted Stock Award, Performance Share Award and
Stock Appreciation Right may be cancelled by the Committee as of the effective
date of any such Change of Control provided that (x) prior written notice
of such cancellation shall be given to each holder of such an Award and (y) each
holder of such an Award shall have the right to exercise such Award to the
extent that the same is then exercisable or, in full, if the Committee shall
have accelerated the time for exercise of all such unexercised and unexpired
Awards, during a period of not less than ten days following such notice of
cancellation and preceding the effective date of such Change of Control; or

 

(iv)          in
the event of a Change of Control in the form of a merger or consolidation under
the terms of which holders of Stock  will
receive  consideration consisting solely
of cash, each outstanding Stock Option may be cancelled by the Committee as of
the effective date of any such Change of Control, provided that the Company
shall have made or provided for  a cash
payment to the holder of each such Stock Option in an amount  equal to the product of (a) the amount
of cash to be received by the holder of a share of Stock upon the consummation
of the Change in Control, less the exercise price per share of such Stock
Option, multiplied by (b) the number of shares of Stock subject to such
Stock Option.

 

(b)           “Change of Control” shall mean the
occurrence of any one of the following events:

 

(i)            any
“person” (as such term is used in Sections 13(d) and 14(d)(2) of the
Exchange Act) becomes, after the Effective Date of this Plan, a “beneficial
owner” (as such term is defined in Rule 13d-3 promulgated under the
Exchange Act) (other than the Company, any trustee or other fiduciary holding
securities under an employee benefit plan of the Company, or any corporation
owned, directly or indirectly, by the stockholders of the Company in
substantially the same proportions as their ownership of stock of the Company),
directly or indirectly, of securities of the Company representing fifty percent
(50%) or more of the combined voting power of the Company’s then outstanding
securities; or

 

(ii)           the
stockholders of the Company approve a merger or consolidation of the Company
with any other corporation or other entity, other than a merger or
consolidation which would result in the voting securities of the Company
outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting securities of the
surviving entity) more than fifty percent (50%) of the combined voting power of
the voting securities of the Company or such surviving entity outstanding
immediately after such merger or consolidation; or

 

12

 

(iii)          the
stockholders of the Company shall approve, and there shall be consummated, a
plan of complete liquidation of the Company or an agreement for the sale or
disposition by the Company of all or substantially all of the Company’s assets.

 

SECTION 16.  General Provisions.

 

(a)           No Distribution; Compliance
with Legal Requirements.  The
Committee may require each person acquiring shares pursuant to an Award to
represent to and agree with the Company in writing that such person is
acquiring the shares without a view to distribution thereof.

 

No shares of Stock shall be issued pursuant
to an Award until all applicable securities laws and other legal and stock
exchange requirements have been satisfied. 
The Committee may require the placing of such stop orders and restrictive
legends on certificates for Stock and Awards as it deems appropriate.

 

(b)           Delivery of Stock
Certificates.  Delivery of
stock certificates to participants under this Plan shall be deemed effected for
all purposes when the Company or a stock transfer agent of the Company shall
have delivered such certificates in the United States mail, addressed to the
participant, at the participant’s last known address on file with the Company.

 

(c)           Other Compensation
Arrangements; No Employment Rights. 
Nothing contained in this Plan shall prevent the Board from adopting
other or additional compensation arrangements, including trusts, subject to
stockholder approval if such approval is required; and such arrangements may be
either generally applicable or applicable only in specific cases.  The adoption of the Plan or any Award under
the Plan does not confer upon any employee any right to continued employment
with the Company or any Affiliate.

 

(d)           Lock-Up Agreement.   By accepting any Award, the
recipient shall be deemed to have agreed that, if so requested by the Company
or by the underwriters managing any underwritten offering of the Company’s
securities, the recipient will not, without the prior written consent of the
Company or such underwriters, as the case may be, sell, make any short sale of,
loan, grant any option for the purchase of, or otherwise dispose of any shares
subject to any such Award during the Lock-up Period, as defined below. The “Lock-Up
Period” shall mean a period of time not exceeding 180 days or, if greater, such
number of days as shall have been agreed to by each director and executive
officer of the Company in connection with such offering in a substantially
similar lock-up agreement by which each such director and executive officer is
bound. If requested by the Company or such underwriters, the recipient shall
enter into an agreement with such underwriters consistent with the foregoing.

 

SECTION 17.  Effective Date of Plan.

 

This Plan shall become effective upon its
adoption by the Company’s Board of Directors. If the Plan shall not be approved
by the shareholders of the Company within twelve months following its adoption,
this Plan shall terminate and be of no further force or effect.

 

13

 

SECTION 18.  Governing
Law.

 

This Plan shall be governed by, and construed
and enforced in accordance with, the substantive laws of the State of Delaware
without regard to its principles of conflicts of laws.

 

* * *

 

14

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