Document:

Exhibit
10.9

 

	
  Copyright: Norwegian
  Shipbrokers, Association, Oslo, Norway. 

  	
  Printed By BIMCO’s idea

  

 

	
  WITHOUT INSPECTION

   

   

  MEMORANDUM OF AGREEMENT

  	
  Norwegian Shipbrokers,
  Association’s Memorandum of Agreement for sale and purchase of ships. Adopted
  by The Baltic and International Maritime Council (BIMCO) in 1956.

  Code-name

  SALEFORM 1993

  Revised 1966, 1983 and
  1986/87.

  

 

Dated: 28 June 2010

 

Genco Diocletian Limited, a
Marshall Islands corporation,           

hereinafter called the
Sellers, have agreed to sell, and 

Mycenae LLC,   a Marshall Islands limited liability company

hereinafter called the
Buyers, have agreed to buy

Name: Stentor

Classification
Society/Class: Bureau Veritas, I + HULL + MACH, Bulk Carrier CSR BC-A
(holds 2 & 4 may be empty), ESP, GRAB [4], CPS (WBT), Unrestricted
Navigation, + VeriSTAR-HULL; +AUT-UMS; MON-SHAFT; INWATER SURVEY

 

	
  Built: 2010

  	
   

  	
  By: Yangzhou
  Dayang  Shipbuilding Industry Co., Ltd

  
	
   

  	
   

  	
   

  
	
  Flag: Panama

  	
   

  	
  Place of Registration: Panama

  
	
   

  	
   

  	
   

  
	
  Call Sign: 3FEW2

  	
   

  	
  Grt/Nrt: 32,837/19,559

  

 

IMO
Number:          9557135

 

hereinafter called the
Vessel, on the following terms and conditions:

 

Definitions

 

“Banking days” and “Working
days” are days on which banks are open both in the country of the currency stipulated
for the Purchase Price in Clause 1 and in the place of closing
stipulated in Clause 8.

 

“In writing” or “written”
means a letter handed over from the Sellers to the Buyers or vice versa, a registered letter, telex, telefax
or other modern form of written communication.

 

“Classification
Society” or “Class” means the Society referred to in line 4.

1.                                      Purchase
Price           US$36,200,000

 

2.                                      Deposit

 

As
security for the correct fulfilment of this Agreement the Buyers shall pay a
deposit of 10% (ten per cent) of the Purchase Price by 30 June 20l0.

 

This deposit shall be placed
with DnB NOR Bank ASA, London and held by them in a joint account for the
Sellers and the Buyers, to be released in accordance with joint written
instructions of the Sellers and the Buyers. Interest, if any, to be credited to
the Buyers. Any fee charged for holding the said deposit shall be borne equally
by the Sellers and the Buyers.

 

3.                                      Payment

 

The said Purchase Price,
less the 10% deposit paid in accordance with Clause 2, shall be paid in full
free of bank charges to such bank account as the Sellers may notify to the
Buyers on delivery of the Vessel, but not later than 3 banking days after the
Vessel is in every respect physically ready for delivery in accordance with the
terms and conditions of this Agreement and

 

This document is a computer
generated SALEFORM 1993 form printed by authority of the Norwegian
Shipbrokers’ Association. Any insertion or deletion to the form must be clearly
visible. In the event of any modification made to the pre-printed text of this
document which is not clearly visible, the text of the original approved
document shall apply. BIMCO and the Norwegian Shipbrokers’ Association assume
no responsibility for any loss, damage or expense as a result of discrepancies
between the original approved document and this computer generated document.

 

 

Notice of Readiness has been
given in accordance with Clause 5.

 

4.                                      Inspections

 

a)*                               The Buyers have
waived its rights to inspect the Vessel and are deemed to have accepted the
Vessel and its classification records, and the sale is outright and definite,
subject only to the terms and conditions of this Agreement.

 

5.                                      Notices,
time and place of delivery

 

a)                                      The Sellers
shall keep the Buyers well informed of the Vessel’s itinerary and shall provide
the Buyers with 15, 7, and 3 days approximate notice of the estimated time and place
of drydocking/underwater inspection/delivery. When the Vessel is at the place
of delivery and in every respect physically ready for delivery in accordance
with this Agreement, the Sellers shall give the Buyers a written Notice of
Readiness for delivery.

 

b)                                     The Vessel
shall be delivered safely afloat at a safe and accessible berth or anchorage or
port or buoy within ports limit and always within IWL in the Sellers’ option.
The port of delivery shall not be within jurisdictions that are prohibited by
the vessel’s flag state, the United Nations, the European Union and the United
States of America. 

 

Expected
time of delivery:

 

Date of cancelling (see Clauses
5 c), 6 b) (iii) and 14): 31 August 2010

 

c)                                      If the Sellers
anticipate that, notwithstanding the exercise of due diligence by them, the Vessel
will not be ready for delivery by the cancelling date they may notify the
Buyers in writing stating the date when they anticipate that the Vessel will be
ready for delivery and propose a new cancelling date. Upon receipt of such
notification the Buyers shall have the option of either cancelling this
Agreement in accordance with Clause 14 within two (2) working days of
receipt of the notice or of accepting the new date as the new cancelling date.
If the Buyers have not declared their option within two (2) working days
of receipt of the Sellers’ notification or if the Buyers accept the new date,
the date proposed in the Sellers’ notification shall be deemed to be the new
cancelling date and shall be substituted for the cancelling date stipulated in line
61.

 

If this Agreement is
maintained with the new cancelling date all other terms and conditions hereof
including those contained in Clauses 5 a) and 5 c) shall remain
unaltered and in full force and effect. Cancellation or failure to cancel shall
be entirely without prejudice to any claim for damages the Buyers may have
under Clause 14 for the Vessel not being ready by the original
cancelling date.

 

d)                                     Should the
Vessel become an actual, constructive or compromised total loss before delivery
the deposit together with interest earned shall be released immediately to the
Buyers

 

 

whereafter this Agreement
shall be null and void.

 

If
the Vessel is delivered at a port or place where bunkers and lubricants are not
available, the Vessel will be delivered with sufficient quantity of bunkers and
lubricant to sail to the nearest port where bunkers and lubricants are
available for the Vessel.

 

6.                                      Drydocking/Divers Inspection

 

b)**                       (i)      The Vessel is to be delivered without
drydocking. However, the Buyers shall have the right at their expense to
arrange for an underwater inspection of
the Vessel’s underwater parts below the deepest loadline by a diver
approved by the Classification Society prior to the delivery of the Vessel at the port of delivery immediately upon the
Vessel’s arrival there and without undue delay. The Sellers shall at
their cost make the Vessel available for such inspection and arrange Class attendance, however
the fees for Class attendance shall be dealt with in accordance with the
provisions of this Agreement. The extent of the inspection and the
conditions under which it is performed including
clarity of water which shall be conducive for this underwater inspection -
shall be to the satisfaction of the Classification Society. If the conditions
at the port of delivery are unsuitable for such inspection, the Sellers shall
make the Vessel available at a suitable alternative place near to the delivery
port. The Sellers will give at least
five (5) business days notice to the Buyers of the time they intend to
make the Vessel available for such inspection. Buyers, failure to appoint
divers approved by class or attend underwater inspection as per the Sellers’
notification will be deemed a waiver of its rights to inspect the Vessel’s
underwater parts.

 

The
Buyers’ and the Sellers’ representatives have the right to attend this
underwater inspection without inteference.

 

(ii) If the rudder, propeller, bottom or
other underwater parts below the deepest load line are found broken, damaged or
defective so as to affect the Vessel’s class, then unless repairs can be
carried out afloat to the satisfaction of the Classification Society, the
Sellers shall arrange for the Vessel to be drydocked at their expense for
inspection by the Classification Society of the Vessel’s underwater parts below
the deepest load line, the extent of the inspection being in accordance with
the Classification Society’s rules. If the rudder, propeller, bottom or other
underwater parts below the deepest load line are found broken, damaged or
defective so as to affect the Vessel’s class, such defects shall be made good
by the Sellers at their expense to the satisfaction of the Classification
Society without condition/recommendation*. In such event the Sellers are to pay
also for the cost of the underwater inspection and the Classification Society’s
attendance.

 

(iii) If the Vessel is to be
drydocked pursuant to Clause 6 b) (ii) and no suitable drydocking
facilities are available at the port of delivery, the Sellers shall take the
Vessel to a port where suitable drydocking facilities are available, whether
within or outside the delivery range as per Clause 5 b). Once drydocking
has taken place the Sellers shall deliver the Vessel at the port of drydocking which shall, for the purpose
of this Clause, become the new port of delivery. In such event the cancelling
date provided for in Clause 5 b))  shall
be extended by the additional time required for the

 

 

drydocking and extra
steaming/waiting, but limited to a maximum of sixty (60) running days.

 

(iv) However in case Class imposes a condition of class that does not require a
dry-docking repair before next scheduled dry-docking, the Sellers shall pay to
the Buyers the estimated cost to
repair such damage in a way which is acceptable to Class, which to be the direct cost to repair such damage
only and shall not take into account any deviation, dry-dock dues/general
expenses and/or loss of time. This cost shall be the average cost of two
(2) quotations from qualified shipyards in the delivery range, one
obtained by the Buyers and one obtained by the Sellers. The cost of repair so
calculated shall be deducted from the balance of the purchase money at the time
of delivery.

 

C)                                    If the Vessel is drydocked pursuant to 6 b) above 

 

(i)                                     the
Classification Society may require survey of the tailshaft system, the extent
of the survey being to the satisfaction of the Classification surveyor. If such
survey is not required by the Classification Society, the Buyers shall have the
right to require the tailshaft to be drawn and surveyed by the Classification
Society, the extent of the survey being in accordance with the Classification
Society’s rules for tailshaft survey and consistent with the current stage
of the Vessel’s survey cycle. The Buyers shall declare whether they require the
tailshaft to be drawn and surveyed not later than by the completion of the
inspection by the Classification Society. The drawing and refitting of the
tailshaft shall be arranged by the Sellers. Should any parts of the tailshaft
system be condemned or found defective so as to affect the Vessel’s class,
those parts shall be renewed or made good at the Sellers’ expense to the
satisfaction of the Classification Society without condition/recommendation*. If the tailshaft is drawn regardless by whom
ordered then the cancelling date shall be automatically extended by the time
required to draw the tailshaft and put it back in place as required by the
Classification Society.

 

(ii)                                  the expenses
relating to the survey of the tailshaft system shall be borne by the Buyers
unless the Classification Society requires such survey to be carried out, in
which case the Sellers shall pay these expenses. The Sellers shall also pay the
expenses if the Buyers require the survey and parts of the system are condemned
or found defective or broken so as to affect the Vessel’s class*.

 

(iii)                               the expenses in
connection with putting the Vessel in and taking her out of drydock, including
the drydock dues and the Classification Society’s fees shall be paid by the
Sellers if the Classification Society issues any condition/recommendation* as a
result of the survey or if it requires survey of the tailshaft system. In all
other cases the Buyers shall pay the aforesaid expenses, dues and fees.

 

(iv)                              the Buyers’
representative shall have the right to be present in the drydock, but without
interfering with the work or decisions of the Classification surveyor.

 

(v)                                 the Buyers
shall have the right to have the underwater parts of the Vessel cleaned and
painted at their risk and expense without interfering with the Sellers’ or the
Classification surveyor’s work, if any, and without affecting the Vessel’s
timely delivery. If, however, the Buyers’ work in drydock is still in progress
when the Sellers have completed the work which the Sellers are required to do,
the additional docking time needed to complete the Buyers’ work shall be for
the Buyers’ risk and expense. In the event that the Buyers’ work requires such
additional time, the Sellers may upon completion of the Sellers’ work tender
Notice of Readiness for delivery whilst the Vessel is still in drydock and the
Buyers shall be obliged to take delivery in accordance with Clause 3,
whether the Vessel is in drydock or not and irrespective of Clause 5 b).

 

*                                         Notes, if any,
in the surveyor’s report which are accepted by the Classification Society
without condition/recommendation are not to be taken into account.

 

7.                                      Spares/bunkers, etc.

 

The Sellers shall deliver
the Vessel to the Buyers with everything belonging to her on board and on Shore
including grabs and fitted or portable
machines. All spare parts and spare equipment if any, belonging to the
Vessel at the time of inspection used or unused, whether on board or not shall
become the Buyers’ property, but spares on order are to be excluded. The Sellers are not required to replace spare parts which

 

 

are taken out of spare and
used as replacement prior to delivery, but the replaced items shall be the
property of the Buyers. The radio installation and navigational equipment shall
be included in the sale without extra. Broached/unbroached
unused stores and provisions shall be included in the sale and be taken
over by the Buyers without extra payment. The Vessel has never had a spare propeller nor a spare tailshaft.

 

The Sellers have the right
to take ashore crockery, plates, cutlery, linen and other articles bearing the
Sellers’ flag or name, provided they replace same with similar unmarked items.
Library, forms, etc., exclusively for use in the Sellers’ vessel(s), shall
be excluded without compensation. Captain’s, Officers’ and Crew’s personal
belongings including the slop chest are to be excluded from the sale, as well
as Owners’/Managers’
directives/rules/publications/computer internal software and the
following additional items (including items on hire):

 

The Buyers shall take over and pay extra at the Sellers’ last net
purchased prices excluding barging and delivery and as evidenced by invoices or
copies thereof for the remaining bunkers and unused lubricating and hydraulic oils in storage tanks which has not passed through the Vessel’s
system and/or sealed drums and pails

 

Payment under this Clause
shall be made at the same time and place and in the same currency as the
Purchase Price.

 

8.                                      Documentation

 

The place of closing:

 

In exchange for payment of
the full Purchase Price alog with any other payments called for in
accordance with this Agreement the Sellers shall furnish the Buyers with
delivery documents as reasonably
required by the Buyers for their registration of the Vessel to be advised by
the Buyers in good time and to be incorporated in an Addendum to this
Agreement.

 

At the time of delivery the
Buyers and Sellers shall sign and deliver to each other a Protocol of Delivery
and Acceptance confirming the date and time of delivery of the Vessel from the
Sellers to the Buyers.

 

See additional clause 20.

 

 

9.                                      Encumbrances

 

The Sellers warrant that the
Vessel, at the time of delivery, is free from all charters, encumbrances,
contracts of affreightment,

mortgages and maritime liens
or any other debts whatsoever. The Sellers hereby undertake to indemnify the
Buyers against all consequences of claims made against the Vessel which have been
incurred prior to the time of delivery.

 

Furthermore:

 

a)                                      The Vessel
shall be delivered without crew on board. The Vessel shall be delivered stowaway
free and cargo free. The Buyers shall not absorb any Vessel personnel from the Sellers
nor shall they be responsible for any crew repatriation or termination costs or
expenses relating to the crew. The
Sellers will indemnify and hold the Buyers harmless for any costs, expenses
or liabilities pertaining to the crew and the Vessel.

 

b)                                     The Sellers
shall indemnify and hold the Buyers harmless from any liablity, costs, expenses
(including reasonable, legal fees) or obligations relating to the Vessel of any
nature (whether absolute, accrued, contingent or otherwise) in respect of any
fact, condition or circumstances existing or occurring on  or prior to the date of
delivery, including all liabilities, claims, costs and expenses which may
attach to the Vessel after delivery relating to matters prior to delivery.

 

10.                               Taxes, etc.

 

Any taxes, fees and expenses
in connection with the purchase and registration under the Buyers’ flag shall
be for the Buyers’ account, whereas similar charges in connection with the
closing of the Sellers’ register shall be for the sellers’ account.

 

11.                               Condition
on delivery

 

The Vessel with everything
belonging to her shall be at the Sellers’ risk and expense until she is
delivered to the Buyers.  The Sellers
undertake to continue its normal standards of operation and maintenance until
delivery.

 

The Vessel shall be
delivered with her present class maintained without condition, free of average
damage affecting the Vessel’s class, and with her classification certificates
and National/international trading certificates, as well as all other
certificates the Vessel had at the time of inspection, clean, valid and
unextended for a minimum of three (3) months without condition by
Class or the relevant authorities at the time of delivery. All continuous
survey cycles shall be fully up to date at the time of delivery. “Inspection”
in this Clause 11, shall mean the Buyers’ inspection according to Clause 4 a)
or 4 b), if applicable, or the Buyers’ inspection prior to the signing
of this Agreement. If the Vessel is taken over without inspection, the date of
this Agreement shall be the relevant date. 

 

Notwithstanding
any documentation presented by the Sellers at the time of delivery, the Vessel
at the time of delivery will be in such condition that will entitle her to be
classed inthe highest status of condition on the records of its Classification
Society.

 

The
Vessel shall be delivered with cleanswept holds.

 

*                                         Notes, if any,
in the surveyor’s report which are accepted by the Classification Society without
condition/recommendation are not to be taken into account.

 

12.                               Name/markings

 

Upon delivery the Buyers
undertake to change the name of the Vessel and alter funnel markings.

 

13.                               Buyers’default

 

Should the deposit not be
paid in accordance with Clause 2, the Sellers have the right to cancel
this Agreement, and they shall be entitled to claim compensation for their
losses and for all expenses incurred together with interest.

 

 

Should the Purchase Price
not be paid in accordance with Clause 3, the Sellers have the right to
cancel the Agreement, in which case the deposit together with interest earned shall
be released to the Sellers. If the deposit does not cover their loss, the
Sellers shall be entitled to claim further compensation for their losses and
for all expenses incurred together with interest.

 

14.                               Sellers’ default

 

Should the Sellers fail to
give Notice of Readiness in accordance with Clause 5 a) or fail to be
ready to validly complete a legal transfer by the date stipulated in line 61
the Buyers shall have the option of cancelling this Agreement provided always
that the Sellers shall be granted a maximum of 3 banking days after Notice of
Readiness has been given to make arrangements for the documentation set out in Clause
8. If after Notice of Readiness has been given but before the Buyers have
taken delivery, the Vessel ceases to be physically ready for delivery and is
not made physically ready again in every respect by the date stipulated in line
61 and new Notice of Readiness given, the Buyers shall retain their option
to cancel. In the event that the Buyers elect to cancel this Agreement the
deposit together with interest earned shall be released to them immediately.

 

Should the Sellers fail to
give Notice of Readiness by the date stipulated in line 61 or fail to be
ready to validly complete a legal transfer as aforesaid they shall make due
compensation to the Buyers for their loss and for all expenses together with interest
if their failure is due to proven negligence and whether or not the Buyers
cancel this Agreement.

 

15.                               Buyers’ representatives

 

After this Agreement has
been signed by both parties and the deposit has been lodged, the Buyers have
the right to place maximum two
representatives on board the Vessel up
to thirty (30) days prior to delivery who may remain on board the Vessel at
their sole risk and expense until
delivery.

 

These representatives are on
board for the purpose of familiarisation and in the capacity of observers only,
and they shall not interfere in any respect with the Sellers’  operation of
the Vessel/the Sellers’ work. The
Buyers’ representatives shall sign the Sellers’ usual P&l letter of
indemnity prior to their embarkation.

 

16.                               Arbitration

 

a)*                               This Agreement
shall be governed by and construed in accordance with English law and any dispute
arising out of this Agreement shall be referred to arbitration in London in
accordance with the Arbitration Acts 1996
or any statutory modification or re-enactment thereof for the time being
in force, one arbitrator being appointed by each party. On the receipt by one
party of the nomination in writing of the other party’s arbitrator, that party
shall appoint their arbitrator within fourteen days, failing which the decision
of the single arbitrator appointed shall apply. If two arbitrators properly
appointed shall not agree they shall appoint an umpire whose decision shall be final.

 

Clause 17.

 

On delivery
the Sellers shall hand to the Buyers a letter of undertaking stating that to
the best of the Sellers’ knowledge, the Vessel under present Ownership has not
touched bottom nor grounded since Vessel’s last drydocking and that she has not
been infested by Gypsy Moth.

 

 

Clause 18

 

The Sellers agree to cooperate in
providing technical data as requested by the Buyers after agreement has been
reached on price and main terms of offer. This may include but shall not be
limited to technical specifications, plans and drawings, classification
records, ultrasonic gaugings.

 

Clause 19

 

Any notice or communication to be
given under this Agreement shall be given by letter and e-mail or fax at the
following address/fax number:

 

In the case of the Buyers:

c/o Maritime Equity Partners
LLC

299 Park Avenue - 2nd Floor

New York, New York 10171

Fax: 212-763-5608

 

In the case of Sellers:

c/o Genco Shipping &
Trading Limited

299 Park Avenue - 20th Floor

New York, New York 10171

Fax: 646-443-8551

 

A demand which is delivered
personally or posted shall be deemed to be served and shall take effect at the
time when it is delivered and a demand which is sent by fax or e-mail shall be
deemed to be served and shall take effect on the next business day after its
transmission is completed.

 

Clause 20

 

Clauses 9 and 10 of this
Agreement shall survive the closing of the purchase of the Vessel.

 

	
  Genco
  Diocletian Limited

  	
  Mycenae LLC

  
	
      The Sellers

  	
      The
  Buyers

  
	
  

  	
  

  
	
  Attorney
  in FactExhibit 10.1

 

IMPAC MORTGAGE HOLDINGS, INC.

 

OMNIBUS INCENTIVE PLAN

 

Effective July 20, 2010

 

 

IMPAC MORTGAGE HOLDINGS, INC.

OMNIBUS INCENTIVE PLAN

 

ARTICLE I

 

PURPOSE AND ADOPTION OF THE PLAN

 

1.01         Purpose.  The purpose of the Impac Mortgage Holdings, Inc.
Omnibus Incentive Plan (as amended from time to time, the “Plan”) is to assist
in attracting and retaining highly competent employees, directors and
consultants, to act as an incentive in motivating selected employees, directors
and consultants of the Company  and its Affiliates to achieve
long-term corporate objectives and to enable stock-based and cash-based
incentive awards to qualify as performance-based compensation for purposes of
the tax deduction limitations under Section 162(m) of the Code.

 

1.02         Adoption and Term.  The Plan shall be effective on July 20,
2010 upon and otherwise subject to approval of the stockholders of the Company
(the “Effective Date”).  The Plan shall
remain in effect until the tenth anniversary of the Effective Date, or until
terminated by action of the Board, whichever occurs sooner.

 

1.03         Assumption of Outstanding Awards under Prior
Plans.  As of the Effective Date, the Prior Plans of
the Company shall be frozen and no new awards shall be made under such Prior
Plans.  Further, all awards outstanding
under the Prior Plans as of the Effective Date shall be assumed by this Plan
and thereafter deemed to be Awards granted and outstanding under this Plan; provided, that such assumed awards
shall continue to be subject to the same terms and conditions as set forth in
the applicable Award Agreement, except that references in such Award Agreements
to the “Plan” shall be deemed to refer to this Plan and references to “Deferred
Stock” shall be deemed to refer to Restricted Stock Units.

 

ARTICLE II

 

DEFINITIONS

 

For
the purpose of this Plan, capitalized terms shall have the following meanings:

 

2.01         Affiliate means an entity in which, directly or indirectly
through one or more intermediaries, the Company has at least a fifty percent
(50%) ownership interest or, where permissible under Section 409A of the
Code, at least a twenty percent (20%) ownership interest; provided, however,
for purposes of any grant of an Incentive Stock Option, “Affiliate” means a
corporation which, for purposes of Section 424 of the Code, is a parent or
subsidiary of the Company, directly or indirectly.

 

1

 

2.02         Award means any one
or a combination of Non-Qualified Stock Options or Incentive Stock Options
described in Article VI, Stock Appreciation Rights described in Article VI,
Restricted Shares or Restricted Stock Units described in Article VII,
Performance Awards described in Article VIII, other stock-based Awards
described in Article IX, short-term cash incentive Awards described in Article X
or any other award made under the terms of the Plan.

 

2.03         Award Agreement means a
written agreement between the Company and a Participant or a written
acknowledgment from the Company to a Participant specifically setting forth the
terms and conditions of an Award granted under the Plan.

 

2.04         Award Period means, with
respect to an Award, the period of time, if any, set forth in the Award
Agreement during which specified target performance goals must be achieved or
other conditions set forth in the Award Agreement must be satisfied.

 

2.05         Beneficiary means an
individual, trust or estate who or which, by a written designation of the
Participant filed with the Company, or if no such written designation is filed,
by operation of law, succeeds to the rights and obligations of the Participant
under the Plan and the Award Agreement upon the Participant’s death.

 

2.06         Board means the
Board of Directors of the Company.

 

2.07         Change in Control means, and
shall be deemed to have occurred upon the occurrence of, any one of the
following events, unless an Award Agreement specifically provides for a
different definition of Change in Control:

 

(a)           Any “person”
(as such term is used in Sections 13(d) and 14(d) of the Exchange Act
(other than the Company; any trustee or other fiduciary holding securities
under an employee benefit plan of the Company; or any company owned, directly
or indirectly, by the stockholders of the Company in substantially the same
proportions as their ownership of the Common Stock of the Company) is or
becomes the “beneficial owner” (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of securities of the Company (not
including in the securities beneficially owned by such Person or any securities
acquired directly from the Company or its Affiliates) representing 30% or more
of the combined voting power of the Company’s then outstanding securities; or

 

(b)           during any
period of two consecutive years (not including any period prior to the
Effective Date), individuals who at the beginning of such period constitute the
Board, and any new director (other than a director designated by a person who
has entered into an agreement with the Company to effect a transaction
described in clause (a), (c) or (d) of this Section 2.07) whose
election by the Board or nomination for election by the Company’s stockholders
was approved by a vote of at least two-thirds (2/3) of the directors then still
in office who either were directors at the beginning of the period or whose election
or nomination for election was previously so approved, cease for any reason to
constitute at least a majority thereof; or

 

2

 

(c)           the
consummation of a Merger of the Company with any other corporation, other than (i) a
Merger 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), in combination with the ownership of any trustee or other fiduciary
holding securities under an employee benefit plan of the Company, at least 75%
of the combined voting power of the voting securities of the Company or such
surviving entity outstanding immediately after such Merger, or (ii) a
Merger effected to implement a recapitalization of the Company (or similar
transaction) in which no person acquires more than 50% of the combined voting
power of the Company’s then outstanding securities;

 

(d)           the consummation
of any sale, exchange or other transfer (in one transaction or a series of
related transactions) of all or substantially all the assets of the Company to
an unrelated party; or

 

(e)           the
stockholders of the Company approve a plan of complete liquidation or
dissolution of the Company.

 

2.08         Code means the
Internal Revenue Code of 1986, as amended. 
References to a section of the Code shall include that section and any
comparable section or sections of any future legislation that amends,
supplements or supersedes said section.

 

2.09         Committee means the Compensation
Committee of the Board.

 

2.10         Common Stock means the
common stock of the Company, par value $0.01 per share.

 

2.11         Company means Impac
Mortgage Holdings, Inc., a Maryland corporation, and its successors.

 

2.12         Date of Grant means the date
designated by the Committee as the date as of which it grants an Award, which
shall not be earlier than the date on which the Committee approves the granting
of such Award.

 

2.13         Disability means
permanent and total disability as determined under the Company’s disability
program or policy, or if no disability program or policy exists, then any
physical or mental disability that renders a Participant unable perform
services for the Company in the capacity for which the Participant served
immediately prior to such disability and such disability is reasonably expected
to last for at least twelve (12) months.

 

2.14         Dividend Equivalent Account means a
bookkeeping account in accordance with Section 11.17 and related to an
Award that is credited with the amount of any cash dividends or stock
distributions that would be payable with respect to the shares of Common Stock
subject to such Awards had such shares been outstanding shares of Common Stock.

 

3

 

2.15         Exchange Act means the
Securities Exchange Act of 1934, as amended.

 

2.16         Exercise Price with respect
to Options, the amount established by the Committee in the Award Agreement in
accordance with Section 6.01(b) which is required to purchase each
share of Common Stock upon exercise of the Option, or with respect to a Stock
Appreciation Right, the amount established by the Committee in the Award
Agreement in accordance with Section 6.02(b) which is to be
subtracted from the Fair Market Value on the date of exercise in order to
determine the amount of the payment to be made to the Participant.

 

2.17         Fair Market Value of the Common
Stock means: the closing sales price of the Common Stock on the applicable
date, or if no sale of stock has been recorded on such day, then on the next
preceding day on which a sale was so made. 
In the event the Common Stock is not admitted to trade on a securities
exchange, the Fair Market Value as of any applicable date shall be as
determined in good faith by the Committee (but in any event not less than “fair
market value” within the meaning of Section 409A of the Code, and any
regulations and other guidance thereunder). 
For purposes of this definition, when determining the Fair Market Value
for the grant of an Award, “applicable date” means the date of grant of the
Award.

 

2.18         Incentive Stock Option means a stock
option within the meaning of Section 422 of the Code.

 

2.19         Merger means any
merger, reorganization, consolidation, exchange, transfer of assets or other
transaction having similar effect involving the Company.

 

2.20         Non-Qualified Stock Option means a stock
option which is not an Incentive Stock Option.

 

2.21         Non-Vested Share means shares
of Common Stock issued to a Participant in respect of the non-vested portion of
an Option in the event of the early exercise of such Participant’s Options
pursuant to such Participant’s Award Agreement, as permitted in Section 6.06
below.

 

2.22         Options means all
Non-Qualified Stock Options and Incentive Stock Options granted at any time
under the Plan.

 

2.23         Outstanding Common Stock means, at any
time, the issued and outstanding shares of Common Stock.

 

2.24         Participant means a person
designated to receive an Award under the Plan in accordance with Section 5.01.

 

4

 

2.25         Performance Awards means Awards
granted in accordance with Article VIII.

 

2.26         Performance Goals means operating income, operating profit (earnings
from continuing operations before interest and taxes), earnings per share,
return on investment or working capital, return on stockholders’ equity,
economic value added (the amount, if any, by which net operating profit after
tax exceeds a reference cost of capital), Adjusted Net Earnings (as defined
below), net earnings (loss) attributable to common stockholders, stock price any one of which may be
measured with respect to the Company or any one or more of its Affiliates,
divisions, units and either in absolute terms or as compared to another company
or companies, and quantifiable, objective measures of individual performance
relevant to the particular individual’s job responsibilities

 

“Adjusted Net Earnings” means  net earnings (loss)
attributable to common stockholders as reported in the Company’s periodic
reports filed with the Securities and Exchange Commission, provided that such
amount shall be adjusted by reversing the following, to the extent such
adjustments were made in calculating such net earnings (loss) attributable to
common stockholders:

 

(a) any
accrual already made with respect to the annual bonus, special bonus, or
incentive bonus applicable to such person:

 

(b) any
adjustment relating to change in fair value of net trust assets;

 

(c) any
adjustment relating to change in fair value of long term debt;

 

(d) any
adjustment relating to noncash level yield long term debt;

 

(e) any
charge relating to amortization of deferred charges; and

 

(f) any
adjustment relating to the following items within earnings of discontinued
operations: (1) lower of cost or market and (2) repurchase liability
provision.

 

2.27         Plan has the
meaning given to such term in Section 1.01.

 

2.28         Prior Plans means the
Company’s 1995 Stock Option, Deferred Stock and Restricted Stock Plan, as
amended, and the Company’s 2001 Stock Option, Deferred Stock and Restricted
Stock Plan, as amended.

 

2.29         Restricted Shares means Common
Stock subject to restrictions imposed in connection with Awards granted under Article VII.

 

2.30         Restricted Stock Unit  means a unit representing
the right to receive Common Stock or the value thereof in the future subject to
restrictions imposed in connection with Awards granted under Article VII.

 

5

 

2.31         Rule 16b-3 means Rule 16b-3
promulgated by the Securities and Exchange Commission under Section 16 of
the Exchange Act, as the same may be amended from time to time, and any
successor rule.

 

2.32         Stock Appreciation Rights means awards
granted in accordance with Article VI.

 

2.33         Termination of Service means the
voluntary or involuntary termination of a Participant’s service as an employee,
director or consultant with the Company or an Affiliate for any reason,
including death, disability, retirement or as the result of the divestiture of
the Participant’s employer or any similar transaction in which the Participant’s
employer ceases to be the Company or one of its Affiliates.  Whether entering military or other government
service shall constitute Termination of Service, or whether and when a
Termination of Service shall occur as a result of disability, shall be determined
in each case by the Committee in its sole discretion.

 

ARTICLE III

 

ADMINISTRATION

 

3.01         Committee.

 

(a)           Duties and Authority.  The Plan shall be administered by the
Committee and the Committee shall have exclusive and final authority in each determination,
interpretation or other action affecting the Plan and its Participants.  The Committee shall have the sole
discretionary authority to interpret the Plan, to establish and modify
administrative rules for the Plan, to impose such conditions and restrictions
on Awards as it determines appropriate, and to make all factual determinations
with respect to and take such steps in connection with the Plan and Awards
granted hereunder as it may deem necessary or advisable.  The Committee shall not, however, have or
exercise any discretion that would disqualify amounts payable under Article X
as performance-based compensation for purposes of Section 162(m) of
the Code.  The Committee may delegate
such of its powers and authority under the Plan as it deems appropriate to a
subcommittee of the Committee or designated officers or employees of the
Company.  In addition, the full Board may
exercise any of the powers and authority of the Committee under the Plan. In
the event of such delegation of authority or exercise of authority by the
Board, references in the Plan to the Committee shall be deemed to refer, as
appropriate, to the delegate of the Committee or the Board.  To the extent applicable, actions taken by
the Committee or any subcommittee thereof, and any delegation by the Committee
to designated officers or employees, under this Section 3.01 shall comply
with Section 16(b) of the Exchange Act, the performance-based
provisions of Section 162(m) of the Code, and the regulations
promulgated under each of such statutory provisions, or the respective
successors to such statutory provisions or regulations, as in effect from time
to time.

 

6

 

(b)           Indemnification.  Each person who is or shall have been a
member of the Board or the Committee, or an officer or employee of the Company
to whom authority was delegated in accordance with the Plan, shall be
indemnified and held harmless by the Company against and from any loss, cost,
liability, or expense that may be imposed upon or reasonably incurred by such
individual in connection with or resulting from any claim, action, suit, or
proceeding to which he or she may be a party or in which he or she may be
involved by reason of any action taken or failure to act under the Plan and
against and from any and all amounts paid by him or her in settlement thereof,
with the Company’s approval, or paid by him or her in satisfaction of any
judgment in any such action, suit, or proceeding against him or her, provided
he or she shall give the Company an opportunity, at its own expense, to handle
and defend the same before he or she undertakes to handle and defend it on his
or her own behalf; provided, however, that the foregoing indemnification shall
not apply to any loss, cost, liability, or expense that is a result of his or
her own willful misconduct.

 

ARTICLE IV

 

SHARES

 

4.01         Number of Shares Issuable.  The total number of shares of Common Stock
authorized to be issued under the Plan shall be 1,730,985 which consists of  (i) 1,280,585 shares allocated to outstanding
Options granted under the Prior Plans and being assumed by this Plan (the “Assumed
Option Shares”), and (ii) 450,000 shares of Common Stock reserved for
future grants under this Plan.  Shares of
Common Stock underlying Awards issued under Articles VII, VIII and IX of this
Plan shall be charged as 2.0  shares against
the number of shares of Common Stock available for the grant of Awards
hereunder.  The foregoing share limits
shall be subject to adjustment in accordance with Section 11.07.  The shares to be offered under the Plan shall
be authorized and unissued Common Stock, or issued Common Stock that shall have
been reacquired by the Company.

 

4.02         Shares Subject to Terminated
Awards.  The Assumed Option Shares
shall only be available for issuance upon exercise of an Option granted under
the Prior Plans and assumed by this Plan and none of the Assumed Option Shares
shall be available for grants of new Options or other Awards under this Plan,
even if the assumed Options are forfeited, canceled or otherwise terminated
without issuance of any shares of Common Stock. 
Except as provided in the preceding sentence, Common Stock covered by
any unexercised portions of terminated or forfeited Options (including canceled
Options) granted under the Plan or any predecessor employee stock plan of the
Company, Restricted Stock or Restricted Stock Units (whether granted under this
Plan or any predecessor employee stock plan) that are forfeited or terminated
for any reason prior to the date that the restrictions on such Awards would
otherwise have lapsed, other stock-based Awards that are forfeited or
terminated for any reason as provided under the Plan, and Common Stock subject
to any Awards that are otherwise surrendered by the Participant may again be
subject to new Awards under the Plan. 
Further, any Award settled in cash shall not be counted as shares of
Common Stock for any purpose under the Plan.

 

7

 

ARTICLE V

 

PARTICIPATION

 

5.01         Eligible Participants.  Participants in the Plan shall be such
employees, directors and consultants of the Company and its Affiliates as the
Committee, in its sole discretion, may designate from time to time.  The Committee’s designation of a Participant
in any year shall not require the Committee to designate such person to receive
Awards or grants in any other year.  The
designation of a Participant to receive Awards or grants under one portion of
the Plan does not require the Committee to include such Participant under other
portions of the Plan.  The Committee
shall consider such factors as it deems pertinent in selecting Participants and
in determining the type and amount of their respective Awards.  Subject to adjustment in accordance with Section 11.07,
no Participant shall be granted Awards in any calendar year in respect of more
than 450,000 shares of Common
Stock (whether through grants of Options or Stock Appreciation Rights or other
Awards of Common Stock or rights with respect thereto) or cash-based Awards for
more than $5,000,000; provided, the Committee may grant Awards to a
Participant in excess of these annual limits if the Committee expressly
determines that a particular Award shall not be designed to qualify as “performance-based
compensation” as defined under Section 162(m) of the Code and the
applicable treasury regulations thereunder.

 

ARTICLE VI

 

STOCK OPTIONS AND STOCK APPRECIATION RIGHTS

 

6.01         Option Awards.

 

(a)           Grant of Options.  The Committee may grant, to such Participants
as the Committee may select, Options entitling the Participant to purchase
shares of Common Stock from the Company in such number, at such price, and on
such terms and subject to such conditions, not inconsistent with the terms of
this Plan, as may be established by the Committee.  The terms of any Option granted under this
Plan shall be set forth in an Award Agreement.

 

(b)           Exercise Price of Options.  The Exercise Price of each share of Common
Stock upon exercise of any Option granted under the Plan shall not be less than
100% of the Fair Market Value of the Common Stock on the Date of Grant; provided, however, that the Committee shall have discretion,
with respect to a Non-Qualified Stock Option, to establish an Exercise Price at
less than the Fair Market Value on the Date of Grant to the extent that such
Option is designed to comply with the requirements of Section 409A of the
Code.

 

8

 

(c)           Designation of Options.  The Committee shall designate, at the time of
the grant of each Option, the Option as an Incentive Stock Option or a
Non-Qualified Stock Option; provided,
however, that an Option may be designated as an Incentive Stock
Option only if the applicable Participant is an employee of the Company on the
Date of Grant.

 

(d)           Special Incentive Stock
Option Rules.  To the
extent that the aggregate Fair Market Value (determined as of the time the
Option is granted) of the shares of Common Stock with respect to which
Incentive Stock Options are exercisable for the first time by a Participant
during any calendar year (under all plans of the Company and its parent and
subsidiary corporations) exceeds $100,000, such Incentive Stock Options shall
constitute Non-Qualified Stock Options. 
For purposes of this Section 6.01(d), Incentive Stock Options
shall be taken into account in the order in which they were granted.  If pursuant to the above, an Incentive Stock
Option is treated as an Incentive Stock Option in part and a Non-Qualified
Stock Option in part, the Participant may designate at the time of exercise
which portion shall be deemed to be exercised, and in the absence of such
express designation in writing, the portion of the Option treated as an
Incentive Stock Option shall be deemed to be exercised first.  Notwithstanding any other provision of the
Plan to the contrary, the Exercise Price of each Incentive Stock Option shall
be equal to or greater than the Fair Market Value of the Common Stock subject
to the Incentive Stock Option as of the Date of Grant of the Incentive Stock
Option; provided, however,
that no Incentive Stock Option shall be granted to any person who, at the time
the Option is granted, owns stock (including stock owned by application of the
constructive ownership rules in Section 424(d) of the Code)
possessing more than ten percent (10%) of the total combined voting power of
all classes of stock of the Company, unless at the time the Incentive Stock
Option is granted the Exercise Price of the Option is at least one hundred ten
percent (110%) of the Fair Market Value of the Common Stock subject to the
Incentive Stock Option and the Incentive Stock Option, by its terms, is not
exercisable for more than five years from the Date of Grant.

 

(e)           Rights As a Stockholder.  A Participant or a transferee of an Option
pursuant to Section 11.04 shall have no rights as a stockholder with
respect to Common Stock covered by an Option until the Participant or
transferee shall have become the holder of record of any such shares, and no
adjustment shall be made for dividends in cash or other property or
distributions or other rights with respect to any such Common Stock for which
the record date is prior to the date on which the Participant or a transferee
of the Option shall have become the holder of record of any such shares covered
by the Option; provided, however, that Participants are entitled to share
adjustments to reflect capital changes under Section 11.07.

 

6.02         Stock Appreciation Rights.

 

(a)           Stock Appreciation Right
Awards.  The Committee is authorized to
grant to any Participant one or more Stock Appreciation Rights.  Upon exercise of a Stock Appreciation Right
with respect to a share of Common Stock, the Participant shall be entitled to
receive an amount equal to the excess, if any, of (i) the Fair Market
Value of a share of Common Stock on the date of exercise over (ii) the
Exercise Price of such Stock Appreciation Right established in the Award
Agreement, which amount shall be payable as provided in Section 6.02(c).

 

9

 

(b)           Exercise Price.  The Exercise Price of each share of Common
Stock upon exercise of any Stock Appreciation Right granted under the Plan
shall not be less than 100% of the Fair Market Value of the Common Stock on the
Date of Grant; provided, however, that the Committee
shall have discretion to establish an Exercise Price at less than the Fair
Market Value on the Date of Grant to the extent that such Stock Appreciation
Right is designed to comply with the requirements of Section 409A of the
Code.

 

(c)           Payment of Incremental Value.  Any payment which may become due from the
Company by reason of a Participant’s exercise of a Stock Appreciation Right may
be paid to the Participant as determined by the Committee (i) all in cash,
(ii) all in Common Stock, or (iii) in any combination of cash and
Common Stock.  In the event that all or a
portion of the payment is made in Common Stock, the number of shares of Common
Stock delivered in satisfaction of such payment shall be determined by dividing
the amount of such payment or portion thereof by the Fair Market Value on the
date of exercise.  No fractional share of
Common Stock shall be issued to make any payment in respect of Stock
Appreciation Rights; if any fractional share would be issuable, the combination
of cash and Common Stock payable to the Participant shall be adjusted as
directed by the Committee to avoid the issuance of any fractional share.

 

6.03         Terms of Stock Options and
Stock Appreciation Rights.

 

(a)           Conditions on Exercise.  An Award Agreement with
respect to Options or Stock Appreciation Rights may contain such waiting
periods, exercise dates and restrictions on exercise (including, but not
limited to, periodic installments) as may be determined by the Committee at the
time of grant.

 

(b)           Duration of Options and
Stock Appreciation Rights. 
Options and Stock Appreciation Rights shall terminate upon the first to
occur of the following events:

 

(i)            Expiration of the Option or Stock Appreciation
Right, as provided in the Award Agreement; or

 

(ii)           Termination of the Award in the event of a
Participant’s disability, retirement, death or other Termination of Service, as
provided in the Award Agreement; or

 

(iii)          Ten years from the Date of Grant (five years in
certain cases, as described in Section 6.01(d)).

 

10

 

(c)           Acceleration or Extension of
Exercise Period.  The
Committee, in its sole discretion, shall have the right (but shall not be
obligated), exercisable on or at any time after the Date of Grant, to permit
the exercise of an Option or Stock Appreciation Right (i) prior to the
time such Option or Stock Appreciation Right would become exercisable under the
terms of the Award Agreement, or (ii) after the termination of the Option
or Stock Appreciation Right under the terms of the Award Agreement.

 

(d)           Exercise of Options or Stock Appreciation
Rights Upon Termination of Services.  Unless an Award Agreement provides otherwise,
the following rules shall govern the treatment of an Award of Options or
Stock Appreciation Rights upon a Participant’s Termination of Services:

 

(i)            Termination of Vested Options or Stock Appreciation Rights Upon
Termination of Services.

 

(A)          Termination Other Than Due
to Death or Disability.  In
the event of a Participant’s Termination of Services for any reason other than
due to the Participant’s death or Disability, the right of the Participant to
exercise any vested Options or Stock Appreciation Rights shall, unless the
exercise period is extended by the Board in accordance with Section 6.03(c) above,
terminate upon the earlier of: (I) thirty (30) days after the date of the
Termination of Services; and (II) the date of expiration of the Options or
Stock Appreciation Rights determined pursuant to Sections 6.03(b)(i) or (iii) above.

 

(B)           Death or Disability.  In the event of a Participant’s Termination
of Services by reason of death or Disability, the right of the Participant to
exercise any vested Options or Stock Appreciation Rights shall, unless the
exercise period is extended by the Board in accordance with Section 6.03(c) above,
terminate upon the earlier of: (I) six (6) months after the date of
the Termination of Services; and (II) the date of expiration of the
Options or Stock Appreciation Rights determined pursuant to Sections 6.03(b)(i) or
(iii) above.

 

(ii)           Termination of Unvested Options Upon Termination of Services.  To the extent the right to exercise Options
or Stock Appreciation Rights, or any portion thereof, has not vested as of the
date of Termination of Services, the right shall expire on the date of
Termination of Services regardless of the reason for the Termination of
Services.

 

6.04         Exercise Procedures.  Each Option and Stock Appreciation Right
granted under the Plan shall be exercised under such procedures and by such
methods as the Committee may establish or approve from time to time.  The Exercise Price of shares purchased upon
exercise of an Option granted under the Plan shall be paid in full in cash by
the Participant pursuant to the Award Agreement; provided,
however, that the 

 

11

 

Committee
may (but shall not be required to) permit payment to be made (a) by
delivery to the Company of shares of Common Stock held by the Participant, (b) by
a “net exercise” method under which the Company reduces the number of shares of
Common Stock issued upon exercise by the largest whole number of shares with a
Fair Market Value that does not exceed the aggregate Exercise Price, or (c) such
other consideration as the Committee deems appropriate and in compliance with
applicable law (including payment under an arrangement constituting a brokerage
transaction as permitted under the provisions of Regulation T applicable to
cashless exercises promulgated by the Federal Reserve Board, unless prohibited by
Section 402 of the Sarbanes-Oxley Act of 2002).  In the event that any Common Stock shall be
transferred to the Company to satisfy all or any part of the Exercise Price,
the part of the Exercise Price deemed to have been satisfied by such transfer
of Common Stock shall be equal to the product derived by multiplying the Fair
Market Value as of the date of exercise times the number of shares of Common
Stock transferred to the Company.  The
Participant may not transfer to the Company in satisfaction of the Exercise
Price any fractional share of Common Stock. 
Any part of the Exercise Price paid in cash upon the exercise of any
Option shall be added to the general funds of the Company and may be used for
any proper corporate purpose.  Unless the
Committee shall otherwise determine, any Common Stock transferred to the
Company as payment of all or part of the Exercise Price upon the exercise of
any Option shall be held as treasury shares.

 

6.05         Change in Control.  With respect to each Award of Options or
Stock Appreciation Rights, the Committee shall determine whether and to what
extent such Options or Stock Appreciation Rights shall become immediately and
fully exercisable in the event of a Change in Control or upon the occurrence of
one or more specified conditions following a Change in Control.  Notwithstanding the foregoing, unless
otherwise determined by the Committee, no Change in Control of the Company
shall be deemed to have occurred for purposes of determining a Participant’s
rights under this Plan if (a) the Participant is a member of a group that
first announces a proposal which, if successful, would result in a Change in
Control, which proposal (including any modifications thereof) is ultimately
successful, or (b) the Participant acquires a two percent (2%) or more
equity interest in the entity that ultimately acquires the Company pursuant to
the transaction described in clause (a) of this Section 6.05.

 

6.06         Early Exercise.  An
Option may, but need not, include a provision by which the Participant may elect
to exercise the Option in whole or in part prior to the date the Option is
fully vested.  The provision may be
included in the Award Agreement at the time of grant of the Option or may be
added to the Award Agreement by amendment at a later time.  In the event of an early exercise of an
Option, any shares of Common Stock received shall be subject to a special
repurchase right in favor of the Company with terms established by the
Committee.  The Committee shall determine
the time and/or the event that causes the repurchase right to terminate and
fully vest the Common Stock in the Participant.

 

12

 

ARTICLE VII

 

RESTRICTED SHARES AND RESTRICTED STOCK UNITS

 

7.01         Award of Restricted Stock and Restricted Stock Units.  The Committee
may grant to any Participant an Award of Restricted Shares consisting of a
specified number of shares of Common Stock issued to the Participant subject to
such terms, conditions and forfeiture and transfer restrictions, whether based on
performance standards, periods of service, retention by the Participant of
ownership of specified shares of Common Stock or other criteria, as the
Committee shall establish.  The Committee
may also grant Restricted Stock Units representing the right to receive shares
of Common Stock in the future subject to such terms, conditions and
restrictions, whether based on performance standards, periods of service,
retention by the Participant of ownership of specified shares of Common Stock
or other criteria, as the Committee shall establish.  With respect to performance-based Awards of
Restricted Shares or Restricted Stock Units intended to qualify as “performance-based”
compensation for purposes of Section 162(m) of the Code, performance
targets will consist of specified levels of one or more of the Performance
Goals.  The terms of any Restricted Share
and Restricted Stock Unit Awards granted under this Plan shall be set forth in
an Award Agreement which shall contain provisions determined by the Committee
and not inconsistent with this Plan.

 

7.02         Restricted Shares.

 

(a)           Issuance of Restricted
Shares.  As soon as practicable after
the Date of Grant of a Restricted Share Award by the Committee, the Company
shall cause to be transferred on the books of the Company, or its agent, Common
Stock, registered on behalf of the Participant, evidencing the Restricted
Shares covered by the Award, but subject to forfeiture to the Company as of the
Date of Grant if an Award Agreement with respect to the Restricted Shares covered
by the Award is not duly executed by the Participant and timely returned to the
Company.  All Common Stock covered by
Awards under this Article VII shall be subject to the restrictions, terms
and conditions contained in the Plan and the Award Agreement entered into by
the Participant.  Until the lapse or
release of all restrictions applicable to an Award of Restricted Shares, the
share certificates representing such Restricted Shares may be held in custody
by the Company, its designee, or, if the certificates bear a restrictive
legend, by the Participant.  Upon the
lapse or release of all restrictions with respect to an Award as described in Section 7.02(d),
one or more share certificates, registered in the name of the Participant, for
an appropriate number of shares as provided in Section 7.02(d), free of
any restrictions set forth in the Plan and the Award Agreement shall be
delivered to the Participant.

 

(b)           Stockholder Rights.  Beginning on the Date of Grant of the
Restricted Share Award and subject to execution of the Award Agreement as
provided in Section 7.02(a), the Participant shall become a stockholder of
the Company with respect to all shares subject to the Award Agreement and shall
have all of the rights of a stockholder, including, but not limited to, the
right to vote such shares and the right to receive dividends; provided, however, that the Award Agreement may provide that
any dividend distributed with respect to any Restricted Shares as to which the
restrictions have not yet lapsed shall be subject to the same restrictions as
such Restricted Shares and held or restricted as provided in Section 7.02(a).

 

13

 

(c)           Restriction on
Transferability.  None of the
Restricted Shares may be assigned or transferred (other than by will or the
laws of descent and distribution, or to an inter vivos trust with respect to
which the Participant is treated as the owner under Sections 671 through 677 of
the Code, except to the extent that Section 16 of the Exchange Act limits
a Participant’s right to make such transfers), pledged or sold prior to lapse
of the restrictions applicable thereto.

 

(d)           Delivery of Shares Upon
Vesting.  Upon expiration or earlier
termination of the forfeiture period without a forfeiture and the satisfaction
of or release from any other conditions prescribed by the Committee, or at such
earlier time as provided under the provisions of Section 7.04, the
restrictions applicable to the Restricted Shares shall lapse.  As promptly as administratively feasible
thereafter, subject to the requirements of Section 11.05, the Company
shall deliver to the Participant or, in case of the Participant’s death, to the
Participant’s Beneficiary, one or more share certificates for the appropriate
number of shares of Common Stock, free of all such restrictions, except for any
restrictions that may be imposed by law.

 

(e)           Forfeiture of Restricted
Shares.  Subject to Sections 7.02(f) and
7.04, all Restricted Shares shall be forfeited and returned to the Company and all
rights of the Participant with respect to such Restricted Shares shall
terminate unless the Participant continues in the service of the Company or an
Affiliate as an employee until the expiration of the forfeiture period for such
Restricted Shares and satisfies any and all other conditions set forth in the
Award Agreement.  The Committee shall
determine the forfeiture period (which may, but need not, lapse in
installments) and any other terms and conditions applicable with respect to any
Restricted Share Award.

 

(f)            Waiver of Forfeiture Period.  Notwithstanding anything contained in this Article VII
to the contrary, the Committee may, in its sole discretion, waive the
forfeiture period and any other conditions set forth in any Award Agreement
under appropriate circumstances (including the death, disability or retirement
of the Participant or a material change in circumstances arising after the date
of an Award) and subject to such terms and conditions (including forfeiture of
a proportionate number of the Restricted Shares) as the Committee shall deem
appropriate.

 

7.03         Restricted Stock Units.

 

(a)           Settlement of Restricted Stock Units.  Payments shall
be made to Participants with respect to their Restricted Stock Units as soon as
practicable after the Committee has determined that the terms and conditions
applicable to such Award have been satisfied or at a later date if distribution
has been deferred.  Payments to
Participants with respect to Restricted Stock Units shall be made in the form
of Common Stock, or cash or a combination of both, as the Committee may
determine.  The amount of any cash

 

14

 

to
be paid in lieu of Common Stock shall be determined on the basis of the Fair
Market Value of the Common Stock on the date any such payment is
processed.  As to shares of Common Stock
which constitute all or any part of such payment, the Committee may impose such
restrictions concerning their transferability and/or their forfeiture as may be
provided in the applicable Award Agreement or as the Committee may otherwise
determine, provided such determination is made on or before the date
certificates for such shares are first delivered to the applicable Participant.

 

(b)           Shareholder Rights.  Until the lapse or release of all
restrictions applicable to an Award of Restricted Stock Units, no shares of
Common Stock shall be issued in respect of such Awards and no Participant shall
have any rights as a shareholder of the Company with respect to the shares of
Common Stock covered by such Award of Restricted Stock Units.

 

(c)           Waiver of Forfeiture Period.  Notwithstanding anything contained in this Section 7.03
to the contrary, the Committee may, in its sole discretion, waive the
forfeiture period and any other conditions set forth in any Award Agreement
under appropriate circumstances (including the death, Disability or retirement
of the Participant or a material change in circumstances arising after the date
of an Award) and subject to such terms and conditions (including forfeiture of
a proportionate number of shares issuable upon settlement of the Restricted
Stock Units constituting an Award) as the Committee shall deem appropriate.

 

(d)           Deferral of Payment.  If approved by the Committee and set forth in
the applicable Award Agreement, a Participant may elect to defer the amount
payable with respect to the Participant’s Restricted Stock Units in accordance
with such terms as may be established by the Committee, subject to the
requirements of Section 409A of the Code.

 

7.04         Change in Control.  With respect to each Award of Restricted
Stock or Restricted Stock Units, the Committee shall determine whether and to
what extent such Restricted Stock or Restricted Stock Units shall become
immediately and fully exercisable in the event of a Change in Control or upon
the occurrence of one or more specified conditions following a Change in
Control.  Notwithstanding the foregoing,
unless otherwise determined by the Committee, no Change in Control of the
Company shall be deemed to have occurred for purposes of determining a
Participant’s rights under this Plan if (a) the Participant is a member of
a group that first announces a proposal which, if successful, would result in a
Change in Control, which proposal (including any modifications thereof) is
ultimately successful, or (b) the Participant acquires a two percent (2%)
or more equity interest in the entity that ultimately acquires the Company
pursuant to the transaction described in clause (a) of this Section 7.04.

 

15

 

ARTICLE VIII

 

PERFORMANCE AWARDS

 

8.01         Performance Awards.

 

(a)           Award Periods and
Calculations of Potential Incentive Amounts.  The Committee may grant Performance Awards to
Participants.  A Performance Award shall
consist of the right to receive a payment (measured by the Fair Market Value of
a specified number of shares of Common Stock, increases in such Fair Market
Value during the Award Period and/or a fixed cash amount) contingent upon the
extent to which certain predetermined performance targets have been met during
an Award Period.  The Award Period shall
be one or more fiscal or calendar years as determined by the Committee.  The Committee, in its discretion and under
such terms as it deems appropriate, may permit newly eligible Participants,
such as those who are promoted or newly hired, to receive Performance Awards after
an Award Period has commenced.

 

(b)           Performance Targets.  Subject to Section 11.18, the
performance targets applicable to a Performance Award may include such goals
related to the performance of the Company or, where relevant, any one or more
of its Affiliates or divisions and/or the performance of a Participant as may
be established by the Committee in its discretion.  In the case of Performance Awards to “covered
employees” (as defined in Section 162(m) of the Code), the targets
will be limited to specified levels of one or more of the Performance
Goals.  The performance targets
established by the Committee may vary for different Award Periods and need not
be the same for each Participant receiving a Performance Award in an Award
Period.

 

(c)           Earning Performance Awards.  The Committee, at or as soon as practicable
after the Date of Grant, shall prescribe a formula to determine the percentage
of the Performance Award to be earned based upon the degree of attainment of
the applicable performance targets.

 

(d)           Payment of Earned
Performance Awards.  Subject to
the requirements of Section 11.05, payments of earned Performance Awards
shall be made in cash or Common Stock, or a combination of cash and Common
Stock, in the discretion of the Committee. 
The Committee, in its sole discretion, may define, and set forth in the
applicable Award Agreement, such terms and conditions with respect to the
payment of earned Performance Awards as it may deem desirable.

 

8.02         Termination of Service or
Change in Control.  The Award
Agreement with respect to any Performance Award shall contain provisions
dealing with the disposition of such Award in the event of a Change in Control
or in the event of a Termination of Services prior to the exercise, realization
or payment of such Award, with such provisions to take account of the specific
nature and purpose of the Award.

 

16

 

ARTICLE IX

 

OTHER STOCK-BASED AWARDS

 

9.01         Grant of Other Stock-Based
Awards.  Other stock-based awards,
consisting of stock purchase rights (with or without loans to Participants by
the Company containing such terms as the Committee shall determine), Awards of
Common Stock, or Awards valued in whole or in part by reference to, or
otherwise based on, Common Stock, may be granted either alone or in addition to
or in conjunction with other Awards under the Plan. Subject to the provisions
of the Plan, the Committee shall have sole and complete authority to determine
the persons to whom and the time or times at which such Awards shall be made,
the number of shares of Common Stock to be granted pursuant to such Awards, and
all other conditions of the Awards.  Any
such Award shall be confirmed by an Award Agreement executed by the Committee
and the Participant, which Award Agreement shall contain such provisions as the
Committee determines to be necessary or appropriate to carry out the intent of
this Plan with respect to such Award.

 

9.02         Terms of Other Stock-Based
Awards.  In addition to the terms and
conditions specified in the Award Agreement, Awards made pursuant to this Article IX
shall be subject to the following:

 

(a)           Any Common Stock subject to
Awards made under this Article IX may not be sold, assigned, transferred,
pledged or otherwise encumbered prior to the date on which the shares are
issued, or, if later, the date on which any applicable restriction, performance
or deferral period lapses; and

 

(b)           If specified by the
Committee in the Award Agreement, the recipient of an Award under this Article IX
shall be entitled to receive, currently or on a deferred basis, interest or
dividends or dividend equivalents with respect to the Common Stock or other
securities covered by the Award; and

 

(c)           The Award Agreement with
respect to any Award shall contain provisions dealing with the disposition of
such Award in the event of a Termination of Service prior to the exercise,
payment or other settlement of such Award, whether such termination occurs
because of retirement, disability, death or other reason, with such provisions
to take account of the specific nature and purpose of the Award.

 

ARTICLE X

 

SHORT-TERM CASH INCENTIVE AWARDS

 

10.01       Eligibility.  Executive officers of the Company who are
from time to time determined by the Committee to be “covered employees” for
purposes of Section 162(m) of the Code will be eligible to receive
short-term cash incentive awards under this Article X.

 

17

 

10.02       Awards.

 

(a)           Performance Targets.  The Committee shall establish objective
performance targets based on specified levels of one or more of the Performance
Goals.  Such performance targets shall be
established by the Committee on a timely basis to ensure that the targets are
considered “preestablished” for purposes of Section 162(m) of the
Code.

 

(b)           Amounts of Awards.  In conjunction with the establishment of
performance targets for a fiscal year or such other short-term performance
period established by the Committee, the Committee shall adopt an objective
formula (on the basis of percentages of Participants’ salaries, shares in a
bonus pool or otherwise) for computing the respective amounts payable under the
Plan to Participants if and to the extent that the performance targets are
attained.  Such formula shall comply with
the requirements applicable to performance-based compensation plans under Section 162(m) of
the Code and, to the extent based on percentages of a bonus pool, such
percentages shall not exceed 100% in the aggregate.

 

(c)           Payment of Awards.  Awards will be payable to Participants in
cash each year upon prior written certification by the Committee of attainment
of the specified performance targets for the preceding fiscal year or other
applicable performance period.

 

(d)           Negative Discretion.  Notwithstanding the attainment by the Company
of the specified performance targets, the Committee shall have the discretion,
which need not be exercised uniformly among the Participants, to reduce or
eliminate the award that would be otherwise paid.

 

(e)           Guidelines.  The Committee may adopt from time to time
written policies for its implementation of this Article X.  Such guidelines shall reflect the intention
of the Company that all payments hereunder qualify as performance-based
compensation under Section 162(m) of the Code.

 

(f)            Non-Exclusive Arrangement.  The adoption and operation
of this Article X shall not preclude the Board or the Committee from
approving other short-term incentive compensation arrangements for the benefit
of individuals who are Participants hereunder as the Board or Committee, as the
case may be, deems appropriate and in the best interests of the Company.

 

18

 

ARTICLE XI

 

TERMS
APPLICABLE GENERALLY TO AWARDS

GRANTED UNDER THE PLAN

 

11.01       Plan Provisions Control
Award Terms.  Except as
provided in Section 11.16, the terms of the Plan shall govern all Awards
granted under the Plan, and in no event shall the Committee have the power to
grant any Award under the Plan which is contrary to any of the provisions of
the Plan.  In the event any provision of
any Award granted under the Plan shall conflict with any term in the Plan as
constituted on the Date of Grant of such Award, the term in the Plan as
constituted on the Date of Grant of such Award shall control.  Except as provided in Section 11.03 and Section 11.07,
the terms of any Award granted under the Plan may not be changed after the Date
of Grant of such Award so as to materially decrease the value of the Award
without the express written approval of the holder.

 

11.02       Award Agreement.  No person shall have any rights under any
Award granted under the Plan unless and until the Company and the Participant
to whom such Award shall have been granted shall have executed and delivered an
Award Agreement or received any other Award acknowledgment authorized by the
Committee expressly granting the Award to such person and containing provisions
setting forth the terms of the Award.

 

11.03       Modification of Award After
Grant.  No Award granted under the
Plan to a Participant may be modified (unless such modification does not
materially decrease the value of the Award) after the Date of Grant except by
express written agreement between the Company and the Participant, provided
that any such change (a) shall not be inconsistent with the terms of the
Plan, and (b) shall be approved by the Committee.

 

11.04       Limitation on Transfer.  Except as provided in Section 7.02(c) in
the case of Restricted Shares, a Participant’s rights and interest under the
Plan may not be assigned or transferred other than by will or the laws of descent
and distribution, and during the lifetime of a Participant, only the
Participant personally (or the Participant’s personal representative) may
exercise rights under the Plan.  The
Participant’s Beneficiary may exercise the Participant’s rights to the extent
they are exercisable under the Plan following the death of the Participant.
Notwithstanding the foregoing, to the extent permitted under Section 16(b) of
the Exchange Act with respect to Participants subject to such Section, the
Committee may grant Non-Qualified Stock Options that are transferable, without
payment of consideration, to immediate family members of the Participant or to
trusts or partnerships for such family members, and the Committee may also
amend outstanding Non-Qualified Stock Options to provide for such
transferability.

 

11.05       Taxes.  The Company shall be entitled, if the
Committee deems it necessary or desirable, to withhold (or secure payment from
the Participant in lieu of withholding) the amount of any withholding or other
tax required by law to be withheld or paid by the Company with respect to any
amount payable and/or shares issuable under 

 

19

 

such
Participant’s Award, and the Company may defer payment or issuance of the cash
or shares upon exercise or vesting of an Award unless indemnified to its
satisfaction against any liability for any such tax. The amount of such
withholding or tax payment shall be determined by the Committee and shall be
payable by the Participant at such time as the Committee determines in
accordance with the following rules:

 

(a)           The Participant shall have
the right to elect to meet his or her withholding requirement (i) by
having withheld from such Award at the appropriate time that number of shares of
Common Stock, rounded down to the nearest whole share, whose Fair Market Value
is equal to the amount of withholding taxes due, (ii) by direct payment to
the Company in cash of the amount of any taxes required to be withheld with
respect to such Award or (iii) by a combination of shares and cash.

 

(b)           In the case of Participants
who are subject to Section 16 of the Exchange Act, the Committee may
impose such limitations and restrictions as it deems necessary or appropriate
with respect to the delivery or withholding of shares of Common Stock to meet
tax withholding obligations.

 

11.06       Surrender of Awards.  Any Award granted under the Plan may be
surrendered to the Company for cancellation on such terms as the Committee and
the holder approve.  With the consent of
the Participant, the Committee may substitute a new Award under this Plan in
connection with the surrender by the Participant of an equity compensation
award previously granted under this Plan or any other plan sponsored by the
Company.

 

11.07       Adjustments to Reflect
Capital Changes.

 

(a)           Recapitalization.  In the event of any corporate event or
transaction (including, but not limited to, a change in the Common Stock or the
capitalization of the Company) such as a merger, consolidation, reorganization,
recapitalization, separation, partial or complete liquidation, stock dividend,
stock split, reverse stock split, spin-off, or other distribution of stock or
property of the Company, a combination or exchange of Common Stock, dividend in
kind, or other like change in capital structure, number of outstanding shares
of Common Stock, distribution (other than normal cash dividends) to
shareholders of the Company, or any similar corporate event or transaction, the
Committee, in order to prevent dilution or enlargement of Participants’ rights
under this Plan, shall make equitable and appropriate adjustments and
substitutions, as applicable, to or of the number and kind of shares subject to
outstanding Awards, the Exercise Price for such shares, the number and kind of
shares available for future issuance under the Plan and the maximum number of
shares in respect of which Awards can be made to any Participant in any
calendar year, and other determinations applicable to outstanding Awards.  The Committee shall have the power and sole
discretion to determine the amount of the adjustment to be made in each case.

 

20

 

(b)           Merger.  In the event that the Company is a party to a
Merger, outstanding Awards shall be subject to the agreement of merger or
reorganization.  Such agreement may
provide, without limitation, for the continuation of outstanding Awards by the
Company (if the Company is a surviving corporation), for their assumption by
the surviving corporation or its parent or subsidiary, for the substitution by
the surviving corporation or its parent or subsidiary of its own awards for
such Awards, for accelerated vesting and accelerated expiration, or for
settlement in cash or cash equivalents.

 

(c)           Options to Purchase Shares
or Stock of Acquired Companies.  After any Merger in which the Company or an
Affiliate shall be a surviving corporation, the Committee may grant substituted
options under the provisions of the Plan, pursuant to Section 424 of the
Code, replacing old options granted under a plan of another party to the Merger
whose shares or stock subject to the old options may no longer be issued
following the Merger.  The foregoing
adjustments and manner of application of the foregoing provisions shall be
determined by the Committee in its sole discretion.  Any such adjustments may provide for the
elimination of any fractional shares which might otherwise become subject to
any Options.

 

11.08       No Right to Continued
Service.  No person shall have any claim
of right to be granted an Award under this Plan. Neither the Plan nor any
action taken hereunder shall be construed as giving any Participant any right
to be retained in the service of the Company or any of its Affiliates.

 

11.09       Awards Not Includable for
Benefit Purposes.  Payments
received by a Participant pursuant to the provisions of the Plan shall not be
included in the determination of benefits under any pension, group insurance or
other benefit plan applicable to the Participant which is maintained by the
Company or any of its Affiliates, except as may be provided under the terms of
such plans or determined by the Committee.

 

11.10       Governing Law.  All determinations made and actions taken
pursuant to the Plan shall be governed by the laws of the State of California  and construed in accordance therewith.

 

11.11       No Strict Construction.  No rule of strict construction shall be
implied against the Company, the Committee, or any other person in the
interpretation of any of the terms of the Plan, any Award granted under the
Plan or any rule or procedure established by the Committee.

 

11.12       Compliance with Rule 16b-3.  It is intended that, unless the Committee
determines otherwise, Awards under the Plan be eligible for exemption under Rule 16b-3.  The Board is authorized to amend the Plan and
to make any such modifications to Award Agreements to comply with Rule 16b-3,
as it may be amended from time to time, and to make any other such amendments
or modifications as it deems necessary or appropriate to better accomplish the purposes
of the Plan in light of any amendments made to Rule 16b-3.

 

21

 

11.13       Captions.  The captions (i.e., all Section headings)
used in the Plan are for convenience only, do not constitute a part of the Plan,
and shall not be deemed to limit, characterize or affect in any way any
provisions of the Plan, and all provisions of the Plan shall be construed as if
no captions have been used in the Plan.

 

11.14       Severability.  Whenever possible, each provision in the Plan
and every Award at any time granted under the Plan shall be interpreted in such
manner as to be effective and valid under applicable law, but if any provision
of the Plan or any Award at any time granted under the Plan shall be held to be
prohibited by or invalid under applicable law, then (a) such provision
shall be deemed amended to accomplish the objectives of the provision as
originally written to the fullest extent permitted by law and (b) all
other provisions of the Plan and every other Award at any time granted under
the Plan shall remain in full force and effect.

 

11.15       Amendment and Termination.

 

(a)           Amendment.  The Board shall have complete power and
authority to amend the Plan at any time; provided, however, that the Board
shall not, without the requisite affirmative approval of stockholders of the
Company, make any amendment which requires stockholder approval under the Code
or under any other applicable law or rule of any stock exchange or listing
service which lists Common Stock or Company Voting Securities.  No termination or amendment of the Plan may,
without the consent of the Participant to whom any Award shall theretofore have
been granted under the Plan, adversely affect the right of such individual
under such Award.

 

(b)           Termination.  The Board shall have the right and the power
to terminate the Plan at any time. No Award shall be granted under the Plan
after the termination of the Plan, but the termination of the Plan shall not
have any other effect on any Award outstanding at the time of the termination
of the Plan and any such outstanding Award will continue in accordance with its
terms and conditions.

 

11.16       Foreign Qualified Awards.  Awards under the Plan may be granted to such
employees, directors and consultants of the Company and its Affiliates who are
residing in foreign jurisdictions as the Committee in its sole discretion may
determine from time to time. The Committee may adopt such supplements to the
Plan as may be necessary or appropriate to comply with the applicable laws of
such foreign jurisdictions and to afford Participants favorable treatment under
such laws.

 

11.17       Dividend Equivalents.  For any Award granted under the Plan, the
Committee shall have the discretion, upon the Date of Grant or thereafter, to
establish a Dividend Equivalent Account with respect to the Award, and the
applicable Award Agreement or an amendment thereto shall confirm such
establishment.  If a Dividend Equivalent
Account is established, the following terms shall apply:

 

22

 

(a)           Terms and Conditions.  Dividend Equivalent Accounts shall be subject
to such terms and conditions as the Committee shall determine and as shall be
set forth in the applicable Award Agreement. 
Such terms and conditions may include, without limitation, for the
Participant’s Account to be credited as of the record date of each cash
dividend on the Common Stock with an amount equal to the cash dividends which
would be paid with respect to the number of shares of Common Stock then covered
by the related Award if such shares of Common Stock had been owned of record by
the Participant on such record date.

 

(b)           Unfunded Obligation.  Dividend Equivalent Accounts shall be
established and maintained only on the books and records of the Company and no
assets or funds of the Company shall be set aside, placed in trust, removed
from the claims of the Company’s general creditors, or otherwise made available
until such amounts are actually payable as provided hereunder.

 

11.18       Adjustment of Performance
Goals and Targets. 
Notwithstanding any provision of the Plan to the contrary, the Committee
shall have the authority to adjust any Performance Goal, performance target or
other performance-based criteria established with respect to any Award under
the Plan if circumstances occur (including, but not limited to, unusual or
nonrecurring events, changes in tax laws or accounting principles or practices
or changed business or economic conditions) that cause any such Performance
Goal, performance target or performance-based criteria to be inappropriate in
the judgment of the Committee; provided, that with respect to any Award that is
intended to qualify for the “performance-based compensation” exception under Section 162(m) of
the Code and the regulations thereunder, any adjustment by the Committee shall
be consistent with the requirements of Section 162(m) and the
regulations thereunder.

 

11.19       Legality of Issuance.  Notwithstanding any provision of this Plan or
any applicable Award Agreement to the contrary, the Committee shall have the
sole discretion to impose such conditions, restrictions and limitations
(including suspending exercises of Options or Stock Appreciation Rights and the
tolling of any applicable exercise period during such suspension) on the
issuance of Common Stock with respect to any Award unless and until the
Committee determines that such issuance complies with (a) any applicable
registration requirements under the Securities Act of 1933 or the Committee has
determined that an exemption therefrom is available, (b) any applicable
listing requirement of any stock exchange on which the Common Stock is listed, (c) any
applicable Company policy or administrative rules, and (d) any other
applicable provision of state, federal or foreign law, including foreign
securities laws where applicable.

 

11.20       Restrictions on Transfer.  Regardless of whether the offering and sale
of Common Stock under the Plan have been registered under the Securities Act of
1933 or have been registered or qualified under the securities laws of any
state, the Company may impose restrictions upon the sale, pledge, or other
transfer of such Common Stock (including the placement of appropriate legends
on stock certificates) if, in the judgment of the Company and its counsel, such
restrictions are necessary or desirable to achieve compliance with the
provisions of the Securities Act of 1933, the securities laws of any state, the
United States or any other applicable foreign law.

 

23

 

11.21       Further Assurances.  As a condition to receipt of any Award under
the Plan, a Participant shall agree, upon demand of the Company, to do all acts
and execute, deliver and perform all additional documents, instruments and
agreements which may be reasonably required by the Company, to implement the
provisions and purposes of the Plan.

 

24

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