Document:

Exhibit 10.1

EXHIBIT 10.1

CONVERTIBLE PROMISSORY NOTE

			
	 	 	 
	$500,000.00
	 	July 13, 2010
	 
	 	Alpharetta, Georgia

FOR VALUE RECEIVED, the undersigned, SANUWAVE HEALTH, INC. (the “Company”), promises
to pay to the order of KEVIN AND MARGARET RICHARDSON, or their registered assigns (the
“Holder”), the principal sum of Five Hundred Thousand Dollars ($500,000.00), with interest
thereon from time to time as provided herein.

1. Maturity Date; Repayment; Interest. The principal under this Note shall be due and
payable ninety (90) days after the issuance of this Note (the “Maturity Date”), together
with interest from the date hereof (computed on the basis of a 365-day year) at the rate of five
percent (5%) per annum on the unpaid principal amount in arrears. Provided this Note is not
converted in accordance with Section 4 below, interest shall be due and payable at the
earlier of (i) the Maturity Date, or (ii) the Prepayment Date (defined below). No principal or
interest shall be payable or callable under this Note until the earlier of (a) the Maturity Date or
(b) the Prepayment Date.

2. Prepayment. The Company may prepay the Note in cash, in whole but not in part,
prior to the Maturity Date or the conversion of the Note (the “Prepayment Date”).

3. Warrant. At the earlier of the Maturity Date or the Prepayment Date, and provided
that this Note has not been converted in accordance with Section 4 below, the Company shall
issue the Holder a warrant, in the form attached hereto as Exhibit A to purchase, at a
purchase price of $4.00 per share, the number of shares of the Company’s common stock, par value
$0.001 determined as follows:

The number of shares is determined by dividing the sum of the principal and interest
payable hereunder by twenty (20). For example: if the sum of the principal and
interest is $200,000, the number of shares equals 10,000 (200,000 / 20).

4. Conversion.

(a) Upon the consummation of a Qualified Financing, the Company shall cause the conversion of
the unpaid principal and interest on this Note into (A) shares of the Company’s common stock, par
value $0.001 (the “Company Stock”), the number of such shares to be equal to the amount
obtained by dividing (i) by the unpaid principal and interest on this Note to be converted, by (ii)
the Conversion Price (as defined below), (B) a warrant to purchase the same number of warrant
shares as the number of warrant shares a Holder would have received had he/she invested an amount
equal to the unpaid principal and interest on this Note to be converted in the Qualified Financing;
the terms of such warrant to be substantially similar to the terms of the warrant granted pursuant
to the Qualified Financing, and (C) any other securities to be issued pursuant to the Qualified
Financing in the same amounts and under the same terms the Holder would had received had he/she
invested an amount equal to the unpaid principal and interest on this Note to be converted, in the
Qualified Financing. The conversion price for the securities to be issued to the Holder shall be
equal to the per share purchase price of the Company Stock issued in the Qualified Financing, the
“Conversion Price”). For purposes of this Note, “Qualified Financing” shall mean
the consummation of a private placement of not less than Three Million Dollars ($3,000,000) in the
aggregate of Company Stock.

 

 

 

(b) In the event of any conversion as provided above, the Company shall not issue fractional
securities but shall pay the dollar equivalent of any fractional securities that would otherwise be
issuable.

(c) The Company shall not be obligated to issue certificates evidencing the securities
issuable upon such conversion unless the Note is either delivered to the Company or the Holder
notifies the Company that such Note has been lost, stolen or destroyed and executes an agreement
satisfactory to the Company to indemnify the Company from any loss incurred by it in connection
with such Note. The Company shall, as soon as practicable after such delivery, or such agreement
and indemnification, issue and deliver at such office to such holder of the Note, a certificate or
certificates for the securities to which the Holder shall be entitled as the result of a
conversion, as mutually agreed to between the Company and the Holder. The person or persons
entitled to receive securities issuable upon such conversion shall be treated for all purposes as
the record holder or holders of such securities on such date.

(d) In the event that any principal of or interest on this Note remains unpaid at any time
after payment thereof is due hereunder, the Holder shall retain all rights hereunder until such
time as amounts due, including additional accrued interest, have been paid in full. Subject to the
foregoing, upon (I) either (w) payment in full by the Company to the Holder of all principal,
interest and any other amounts due pursuant to the terms hereof or (x) conversion of this Note in
full pursuant to the terms hereof, and (II) fulfillment by the Company of all its other material
obligations hereunder, this Note shall terminate.

5. Defaults and Remedies.

(a) In the event the principal is not paid in full within three (3) business days of the due
date stipulated above, or any other default occurs, then, from and after such date and until
payment in full of the amount due hereunder, interest shall accrue on the outstanding principal
balance of this Note at the simple rate equal to ten percent (10%) per annum. Time is of the
essence of this Note. The Company agrees to pay all costs and expenses of collection of the
indebtedness evidenced by this Note including fifteen percent (15%) of the amount of principal and
interest involved as attorneys’ fees (if collected by or through an attorney) in connection with
such collection.

(b) Presentment for payment, demand, protest and notice of demand, dishonor, protest and
non-payment and all other notices are hereby waived by the Company. No acceptance of a partial
installment, late payment or indulgences granted from time to time shall be construed (i) as a
novation of this Note or as a reinstatement of the indebtedness evidenced hereby or as a waiver of
the right of the Holder thereafter to insist upon strict compliance with the terms of this Note,
or (ii) to prevent the exercise of any right granted hereunder or by the laws of the State of
Georgia; and the Company hereby expressly waives the benefit of any statute or rule of law or
equity now provided, or which may hereafter be provided, which would produce a result contrary to
or in conflict with the foregoing. No extension of the time for the payment of this Note or any
installment due hereunder, made by agreement with any person now or hereafter liable for the
payment of this Note, shall operate to release, discharge, modify, change or affect the original
liability of the Company under this Note, either in whole or in part, unless the Holder agrees
otherwise in writing.

(c) If for any circumstances whatsoever, fulfillment of any provision of this Note or of any
other instrument evidencing or securing the indebtedness evidenced hereby, at the time performance
of such provision shall be due, shall involve transcending the limit of validity presently
prescribed by any applicable usury statute or any other applicable law, with regard to obligations
of like character and amount, then, the obligation to be fulfilled shall be reduced to the limit of
such validity, so that in no event shall any action be possible under this Note or under any other
instrument evidencing or securing the indebtedness evidenced hereby, that is in excess of the
current limit of such validity, but such obligation shall be fulfilled to the limit of such
validity.

 

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6. Remedies Cumulative. No remedy herein conferred upon the Holder is intended to be
exclusive of any other remedy and each and every such remedy shall be cumulative and shall be in
addition to every other remedy given hereunder or now or hereafter existing at law or in equity or
by statute or otherwise. To the extent permitted by applicable law, the Company and the Holder
waive presentment for payment, demand, protest and notice of dishonor.

7. Governing Law. This Note shall be governed by and construed in accordance with the
laws of the State of Georgia regardless of conflicts of law principles.

8. Assignment. Neither the Holder nor the Company shall assign its rights or
obligations under this Note to any third party. Any assignment in breach of the foregoing shall be
void and of no force or effect.

9. Amendment/Waiver. No term of this Note may be amended and the observance of any
term of this Note may not be waived except with the written consent of the Company and Holder
hereof.

IN WITNESS WHEREOF, this Note has been executed by the Company by its duly authorized officer
as of the day and year first written above.

	 	 	 	 	 
	 	SANUWAVE Health, Inc.

 	 
	 	By:  	/s/ Barry J. Jenkins
 	 
	 	 	Name:  	Barry J. Jenkins 	 
	 	 	Title:  	Chief Financial Officer 	 

 

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EXHIBIT A

Form of Class A Warrant Agreement

SANUWAVE HEALTH, INC.

Warrant for the Purchase of [     ]

Shares of Common Stock

Par Value $0.001

CLASS A WARRANT AGREEMENT

(this “Agreement”)

THE HOLDER OF THIS WARRANT, BY ACCEPTANCE HEREOF, BOTH WITH RESPECT TO THE WARRANT AND COMMON STOCK
ISSUABLE UPON EXERCISE OF THE WARRANT, AGREES AND ACKNOWLEDGES THAT THE SECURITIES REPRESENTED BY
THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR UNDER THE SECURITIES LAWS OF ANY STATE. THESE SECURITIES HAVE BEEN ACQUIRED
FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF
(A) AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND THE LAWS OF ANY APPLICABLE
STATE, OR (B) AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER, AND ITS COUNSEL, TO THE
EFFECT THAT THE SALE OR TRANSFER IS EXEMPT FROM REGISTRATION UNDER THE SECURITIES ACT AND SUCH
STATE STATUTES, OR (II) UNLESS SOLD PURSUANT TO RULE 144 UNDER THE SECURITIES ACT.

This is to certify that, for value received,                     , (the “Holder”) is entitled to
purchase from SANUWAVE HEALTH, INC. (the “Company”), on the terms and conditions hereinafter set
forth, all or any part of [     ] shares (“Warrant Shares”) of the Company’s common stock, par
value $0.001 (the “Common Stock”), at the purchase price of $4.00 per share (“Warrant Price”).
Upon exercise of this warrant in whole or in part, a certificate for the Warrant Shares so
purchased shall be issued and delivered to the Holder. If, at any time prior to the Expiration
Date (as defined below), less than the total warrant is exercised, a new warrant of similar tenor
shall be issued for the unexercised portion of the warrants represented by this Agreement.

This warrant is granted subject to the following further terms and conditions:

1. This warrant shall be exercisable at any time or from time to time after the execution and
delivery of this Warrant by the Company on the date hereof and shall expire at 5:00 p.m. Eastern
Time on the date that is five years following the date hereof (the “Expiration Date”). In order to
exercise this warrant with respect to all or any part of the Warrant Shares for which this warrant
is at the time exercisable, the Holder (or in the case of exercise after the Holder’s death, the
Holder’s executor, administrator, heir or legatee, as the case may be) must take the following
actions:

(a) Deliver to the Corporate Secretary of the Company an executed notice of exercise
substantially in the form of notice attached to this Agreement (the “Exercise Notice”) in which
there is specified the number of Warrant Shares that are to be purchased under the exercised
warrant;

(b) Tender payment of the aggregate Warrant Price for the purchased shares in cash or by check
made payable to the Company’s order; and

 

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(c) Furnish to the Company appropriate documentation that the person or persons exercising the
warrant (if other than the Holder) have the right to exercise the warrant.

(d) For purposes of this Agreement, the “Exercise Date” shall be the date on which the
executed Exercise Notice shall have been delivered to the Company.

(e) Upon such exercise, the Company shall issue and cause to be delivered, with all reasonable
dispatch (and in any event within five business days of such exercise), to or upon the written
order of the Holder at its address, and in the name of the Holder, a certificate or certificates
for the number of full Warrant Shares issuable upon the exercise, together with such other property
(including cash) and securities as may then be deliverable upon such exercise. Such certificate or
certificates shall be deemed to have been issued and the Holder shall be deemed to have become a
holder of record of such Warrant Shares as of the Exercise Date.

2. The Holder acknowledges that this warrant may not be exercised if the issuance of the
Warrant Shares upon such exercise would constitute a violation of any applicable federal or state
securities laws, or other law or regulation, and the Warrant Shares have not been and will not be
registered as of the date of exercise of this warrant under the Securities Act or the securities
laws of any state. The Holder acknowledges that this warrant and the Warrant Shares, when and if
issued, are and will be “restricted securities” as defined in Rule 144 promulgated under the
Securities Act and must be held indefinitely unless subsequently registered under the Securities
Act and any other applicable state registration requirements. Except as provided herein, the
Company is under no obligation to register the securities under the Securities Act or under
applicable state statutes. In the absence of such a registration or an available exemption from
registration, sale of the Warrant Shares may be practicably impossible. The Holder shall confirm
to the Company the representations set forth above in connection with the exercise of all or any
portion of this warrant.

3. The number of Warrant Shares purchasable upon the exercise of this warrant and the Warrant
Price per share shall be subject to adjustment from time to time as follows:

(a) In the event that the Company should at any time, or from time to time, fix a record date
for the effectuation of a split, either forward or reverse, subdivision or combination of the
outstanding shares of Common Stock, or the determination of holders of Common Stock entitled to
receive a dividend or other distribution payable in additional shares of Common Stock or other
securities or rights convertible into, or entitling the holder thereof to receive directly or
indirectly, additional shares of Common Stock (hereinafter referred to as “Common Stock
Equivalents”), without payment of any consideration by such holder for the additional shares of
Common Stock or the Common Stock Equivalents (including the additional shares of Common Stock
issuable upon conversion or exercise thereof), then, as of such record date (or the date of such
dividend distribution, split or subdivision if no record date is fixed), the number of Warrant
Shares purchasable hereunder shall be appropriately increased or decreased in proportion to such
increase or decrease in the aggregate number of shares of Common Stock outstanding and those
issuable with respect to such Common Stock Equivalents.

(b) Whenever there is an adjustment in the number of Warrant Shares purchasable upon the
exercise of this warrant pursuant to the provisions of Section 3(a), the Warrant Price shall be
adjusted to an amount proportionate to the adjustment in the number of Warrant Shares.

(c) If at any time, or from time to time, there shall be a recapitalization of the Common
Stock (other than a subdivision or combination, or merger or sale of assets transaction provided
for elsewhere in this Section 3) provision shall be made so that the Holder shall thereafter be
entitled to receive upon exercise of this warrant the number of shares of Common Stock, Common
Stock Equivalents or property of the
Company or otherwise, to which the Holder would have been entitled upon such recapitalization
assuming this warrant was exercised immediately prior thereto. In any such case, appropriate
adjustment shall be made in the application of the provisions of this Section 3 with respect to the
rights of the Holder of this warrant after the recapitalization to the end that the provisions of
this Section 3 (including adjustment of the Warrant Price then in effect and the number of Warrant
Shares issuable upon exercise) shall be applicable after that event as nearly equivalent as may be
practicable.

 

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(d) If at any time, or from time to time, the Company shall consolidate with or merge into
another corporation, or shall sell, lease, or convey to another corporation the assets of the
Company as an entity or substantially as an entity (any one or more of such transactions being a
“Corporate Transaction”), provision shall be made so that the Holder shall thereafter be entitled
to receive upon exercise of this warrant the number of shares of Common Stock, Common Stock
Equivalents or property of the Company or otherwise, to which the Holder would have been entitled
to receive in such Corporate Transaction assuming this warrant was exercised immediately prior
thereto. In any such case, appropriate adjustment shall be made in the application of the
provisions of this Section 3 with respect to the rights of the Holder of this warrant after the
Corporate Transaction to the end that the provisions of this Section 3 (including adjustment of the
Warrant Price then in effect and the number of Warrant Shares issuable upon exercise) shall be
applicable after that event as nearly equivalent as may be practicable.

4. The Company covenants and agrees that all Warrant Shares which may be delivered upon the
exercise of this warrant will, upon delivery, be free from all taxes, liens, and charges with
respect to the purchase thereof; provided, that the Company shall have no obligation with respect
to any income tax liability of the Holder.

5. The Company agrees at all times to reserve or hold available a sufficient number of shares
of Common Stock to cover the number of Warrant Shares issuable upon the exercise of this warrant.

6. This warrant shall not entitle the holder hereof to any voting rights or other rights as a
shareholder of the Company, or to any other rights whatsoever, except the rights herein expressed,
and no dividends shall be payable or accrue in respect of this warrant or the Warrant Shares until
or unless, and except to the extent that, this warrant shall be exercised.

7. The Company may deem and treat the registered owner of this warrant as the absolute owner
hereof for all purposes and shall not be affected by any notice to the contrary.

8. In the event that any provision of this Agreement is found to be invalid or otherwise
unenforceable under any applicable law, such invalidity or unenforceability shall not be construed
as rendering any other provisions contained herein invalid or unenforceable, and all such other
provisions shall be given full force and effect to the same extent as though the invalid or
unenforceable provision was not contained herein.

9. This Agreement shall be governed by and construed in accordance with the internal laws of
the State of Georgia, without regard to the principles of conflicts of law thereof.

10. This Agreement shall be binding on and inure to the benefit of the Company and the person
to whom a warrant is granted hereunder, and such person’s heirs, executors, administrators,
legatees, personal representatives, assignees, and transferees.

11. The Company shall not have any right to redeem any of the Warrants evidenced hereby.

 

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IN WITNESS WHEREOF, the Company has caused this warrant to be executed by the signature of its
duly authorized officer, effective this               day of
                    
20          .

	 	 	 	 	 
	 	SANUWAVE HEALTH, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	Barry J. Jenkins 	 
	 	 	Title:  	Chief Financial Officer 	 

The undersigned Holder hereby acknowledges receipt of a copy of the foregoing warrant and
acknowledges and agrees to the terms and conditions set forth in the warrant.

	 	 	 	 	 
	 	By:  	 	 

 

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Exercise Notice

(to be signed only upon exercise of Warrant)

			
	TO:	 	SANUWAVE HEALTH, INC.

The Holder of the attached warrant hereby irrevocable elects to exercise the purchase rights
represented by the warrant for, and to purchase thereunder,                                                              shares
of common stock of SANUWAVE Health, Inc. and herewith makes payment therefore, and requests that
the certificate(s) for such shares be delivered to the Holder at:

 

 

 

If acquired without registration under the Securities Act of 1933, as amended (“Securities
Act”), the Holder represents that the Common Stock is being acquired without a view to, or for,
resale in connection with any distribution thereof without registration or other compliance under
the Securities Act and applicable state statutes, and that the Holder has no direct or indirect
participation in any such undertaking or in the underwriting of such an undertaking. The Holder
understands that the Common Stock has not been registered, but is being acquired by reason of a
specific exemption under the Securities Act as well as under certain state statutes for
transactions by an issuer not involving any public offering and that any disposition of the Common
Stock may, under certain circumstances, be inconsistent with these exemptions. The Holder
acknowledges that the Common Stock must be held and may not be sold, transferred, or otherwise
disposed of for value unless subsequently registered under the Securities Act or an exemption from
such registration is available. The Company is under no obligation to register the Common Stock
under the Securities Act or any state securities law, except as provided in the Agreement for the
warrant. The certificates representing the Common Stock will bear a legend restricting transfer,
except in compliance with applicable federal and state securities statutes.

The Holder agrees and acknowledges that this purported exercise of the warrant is conditioned
on, and subject to, any compliance with requirements of applicable federal and state securities
laws deemed necessary by the Company.

DATED this                      day of                                         
                    ,                     .

	 	 	 	 	 
	 

	 	 

Signature
	 	 

 

8exv10w18

EXHIBIT 10.18

PAYCHEX, INC.

2002 STOCK INCENTIVE PLAN

(as amended and restated effective October 12, 2005)

FORM OF RESTRICTED STOCK AWARD AGREEMENT (OFFICER)

     1. Grant of Restricted Stock. This Restricted Stock Award Agreement (the “Award
Agreement”), sets forth the terms and conditions of the Restricted Stock (the “Award”) granted to
you by the Governance and Compensation Committee (the “Committee”) of the Board of Directors of
Paychex, Inc. (the “Company”) under the Company’s 2002 Stock Incentive Plan, as amended and
restated effective October 12, 2005 (the “Plan”), as described on your Award Notice. The Award is
subject to all of the provisions of the Plan, which is hereby incorporated by reference and made a
part of this Award Agreement. The capitalized terms used in this Award Agreement are defined in
the Plan.

     2. Restriction and Vesting.

          (a) Subject to the terms set forth in this Award Agreement and the Plan, unless earlier vested
under Section 2(b) of this Award Agreement, provided you are still a full-time employee of the
Company at that time, these shares will vest pro rata with respect to one-third of the shares on
the first, second, and third anniversaries of the Date of Grant, with any fractional share
resulting from such pro-ration vesting on the third anniversary of the Date of Grant as set forth
on your Award Notice (a “Vesting Date”).

          (b) Except in the event of your death or Disability, if your employment terminates before a
Vesting Date for any reason, including, but not limited to, Retirement, then the unvested portion
of the Award shall be forfeited and cancelled immediately. If your employment terminates due to
death or Disability, your Award shall immediately become 100% vested. The term “Disability” means
a condition whereby you are unable to perform the essential functions of your position with
reasonable accommodations by reason of any medically determinable physical or mental impairment
which can be expected to result in death or which has lasted for a continuous period of not less
than six months, all as verified by a physician acceptable to, or selected by, the Company.

     3. Book-Entry Registration. The Award initially will be evidenced by book-entry
registration only, without the issuance of a certificate representing the Shares underlying the
Award.

     4. Issuance of Shares. The Company shall, when the conditions to vesting specified in
Section 2 of this Award Agreement are satisfied, issue a certificate or certificates representing
the Shares underlying the Award that have vested as promptly as practicable following the Vesting
Date of such Shares.

     5. Rights as a Stockholder. Except as otherwise provided by this Section, you will
have the rights of a stockholder with respect to the Shares underlying the Award, including, but
not limited to, the right to receive such cash dividends, if any, as may be declared on such Shares
from time to time and the right to vote (in person or by proxy) such Shares at any meeting of
stockholders of the Company. Notwithstanding the foregoing, the dividends paid on any unvested
Shares shall be retained by the Company and held in escrow, trust or similar manner, and shall only
be paid to you upon the vesting of the underlying Shares to which the dividends relate; upon the
forfeiture of any Shares

 

 

represented by the Award, your right to the dividends paid on the underlying Shares which are
forfeited shall also be forfeited.

     6. Restrictions on Transfer of Shares. The Award, and the right to vote the Shares
underlying the Award and to receive dividends thereon, may not, except as otherwise provided in the
Plan, be sold, assigned, transferred, pledged or encumbered in any way prior to the vesting of such
Shares, whether by operation of law or otherwise, except by will or the laws of descent and
distribution. After a Vesting Date, the vested Shares may be issued during your lifetime only to
you, or after your death to your designated beneficiary, or, in the absence of such beneficiary, to
your duly qualified personal representative.

     7. Withholding. The grant and the vesting of the Award is conditioned upon your
making arrangements satisfactory to the Company for the payment to the Company of the amount of all
taxes required by any governmental authority to be withheld and paid over by the Company or any
Affiliate to the governmental authority on account of such grant or vesting. The payment of such
withholding taxes to the Company may be made (i) by you in cash or by check, (ii) subject to the
consent of the Company and in accordance with any guidelines established by the Committee, by the
Company retaining the number of the Shares that would otherwise be delivered to you upon vesting
that have an aggregate Fair Market Value (at the time retained by the Company) equal to the amount
of withholding taxes (using your minimum required tax withholding rate or such other rate that the
Company determines will not trigger a negative accounting impact to the Company) required to be
paid, or (ii) by the Company or any Affiliate withholding such taxes from any other compensation
owed to you by the Company or any Affiliate. Unless you make arrangements prior to vesting to pay
withholdings taxes in cash or by check, or to have such withholding taxes withheld from other
compensation owed to you by the Company or any Affiliate, then at the time of vesting, the Company
shall have the right to retain the number of the Shares that would otherwise be delivered to you
upon vesting that have an aggregate Fair Market Value (at the time retained by the Company) equal
to the amount of withholding taxes (using your minimum required tax withholding rate or such other
rate that the Company determines will not trigger a negative accounting impact to the Company)
required to be paid.

     8. Limitation of Rights. Neither the Plan, the granting of the Award, the Award
Notice nor this Award Agreement gives you any right to remain in the employment of the Company or
any Affiliate.

     9. Non-competition, Non-solicitation, Confidentiality, and Detrimental Conduct. In
consideration for the Award, you agree that during your employment and for a period of twelve (12)
months following termination of employment for any reason, you will not, directly or indirectly,
either as an employee, employer, consultant, agent, principal, partner, stockholder, corporate
officer, board member, director, or in any other individual or representative capacity, engage or
attempt to engage in any activity that is competitive to the business of the Company within the
geographic and substantive area or areas of responsibility assigned to the you during the last 24
months of employment. In addition, you agree that for a period of eighteen (18) months following
the termination of employment for any reason, you will not directly or indirectly by assisting
others, solicit Company clients, prospects or referral resources; nor will you recruit or hire, or
attempt to recruit or hire any other employee of Company or its affiliates, or induce or attempt to
induce any employee of Company to terminate employment with Company. You also agree and acknowledge
that during the course of your employment with the Company, you will obtain, have access and be
privy to nonpublic information important to the Company’s business solely as a result of employment
with the Company, which information you hereby acknowledge and agree to be confidential
(“Confidential Information”). You

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agree that during and after employment, you shall not divulge or make use of any Confidential
Information, directly or indirectly, personally or on behalf of any other person, business,
corporation, or entity without prior written consent of the Company. You further agree that you
will not, during your employment, engage in conduct which is detrimental to the Company, including
violation of the Company’s Code of Business Ethics and Conduct, criminal conduct, fraud, or willful
misconduct. These covenants are not intended to, and do not, limit in any way the rights and
remedies provided to the Company under the Plan, other agreements with you, or under common or
statutory law.

     10. Repayment of Financial Gain.

          (a) If you fail to comply with Section 9 of this Award Agreement, the Company may cancel any
unvested portion of this Award and recover from you the total number or Vesting Date value of
Shares whose Vesting Date occurred pursuant to this Award during the 24-month period preceding your
breach of any covenant in Section 9 of this Award Agreement. The total number or value of the
vested Shares shall include the amount of any dividends paid to you during the 24-month period
specified above and shall not be reduced for the payment of applicable taxes or other amounts.

          (b) If you fail to comply with Section 9 of this Award Agreement, upon demand by the Company,
you will repay the Company in accordance with the terms of Section 10(a), and the Company shall be
entitled to offset the amount of any such repayment obligation against any amount owed to you by
the Company. The remedies set forth in this Section are in addition to any other remedies the
Company may have, at law or equity, for your violation of the terms of this Award Agreement.

     11. Rights of Company and Affiliates. This Award Agreement does not affect the right
of the Company or any Affiliate to take any corporate action whatsoever, including without
limitation its right to recapitalize, reorganize or make other changes in its capital structure or
business, merge or consolidate, issue bonds, notes, Shares or other securities, including preferred
stock, or options therefor, dissolve or liquidate, or sell or transfer any part of its assets or
business.

     12. Plan Controls. In the event of any conflict among the provisions of the Plan and
this Award Agreement, the provisions of the Plan will be controlling and determinative.

     13. Amendment. Except as otherwise provided by the Plan, the Company may only alter,
amend or terminate the Award with your consent.

     14. Governing Law. This Award Agreement shall be governed by and construed in
accordance with the laws of the State of New York, except as superseded by applicable federal law,
without giving effect to its conflicts of law provisions. All parties consent to exclusive
personal jurisdiction in New York courts and agree that venue shall be New York State Supreme
Court, Monroe County.

     15. Section 409A. The Award is intended to qualify for an exemption from the
requirements of Section 409A of the Internal Revenue Code of 1986, as amended, and the treasury
regulations promulgated and other official guidance issued thereunder, and the Plan and this Award
Agreement shall be administered and interpreted consistent with such intention.

* * * * *

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