Document:

EX-10.2

 

Exhibit 10.2

NONQUALIFIED STOCK OPTION AGREEMENT

     THIS AGREEMENT is entered into as of July 5, 2006, by and between New Horizons Worldwide,
Inc., a Delaware corporation (the “Company”), and Mark A. Miller (the “Optionee”).

WITNESSETH:

     WHEREAS, the Company maintains the New Horizons Worldwide, Inc. Omnibus Equity Plan (the
“Plan”) for the benefit of eligible participants therein; and

     WHEREAS, the Committee is currently charged with administering the Plan; and

     WHEREAS, the Committee has determined that the Optionee, as a person eligible to receive
awards under the Plan, should be granted nonqualified stock options to acquire Shares under the
Plan upon the terms and conditions set forth in this Agreement.

     NOW, THEREFORE, the Company and the Optionee hereby agree as follows:

     1. Definitions.

          (a) The following terms shall have the meanings set forth below whenever used in this
instrument:

               (i) The word “Act” shall mean the federal Securities Act of 1933, as amended.

               (ii) The word “Agreement” shall mean this instrument as originally executed and as it may
later be amended.

               (iii) The word “Company” shall mean New Horizons Worldwide, Inc., a Delaware corporation, and
any successor thereto which shall maintain the Plan.

 

 

               (iv) The word “Disability” or “Disabled” shall have the meaning provided to it in the
Optionee’s Employment Agreement with the Company, or if none, it shall mean the Optionee’s
inability, due to a mental or physical condition, to perform services for the Company and/or an
Affiliate substantially consistent with past practice, as determined by the Committee pursuant to
written certification of such condition from a physician acceptable to the Committee.

               (v) The word “Employee” shall mean any person who is an employee of either the Company or any
Affiliate.

               (vi) The words “Fair Market Value” means, in respect of a Share, its fair market value as
determined in the reasonable judgment of the Committee at any time.

               (vii) The word “Option” shall mean the right and option to purchase Shares pursuant to the
terms of this Agreement.

               (viii) The words “Option Exercise Date” shall mean the date the Optionee exercises the Option
by performing the acts described in Section 7 hereof.

               (ix) The word “Optionee” shall mean the person to whom the Option has been granted pursuant to
this Agreement.

               (x) The words “Personal Representative” shall mean, following the Optionee’s death, the person
who shall have acquired, by will or by the laws of descent and distribution, the right to exercise
the Option.

               (xi) The word “Plan” shall mean the New Horizons Worldwide, Inc. Omnibus Equity Plan, as it
was originally adopted and as it may later be amended.

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               (xii) The word “Spread” shall mean, as of the Option Exercise Date, an amount equal to the
excess, if any, of the Fair Market Value of a Share in respect of which the Option is exercised
over the Option Exercise Price.

               (xiii) The word “Transferee” shall mean the person or entity to whom rights to acquire Shares
pursuant to the exercise of the Option shall have been transferred pursuant to Section 11 hereof.

          (b) The following terms when used in the Agreement shall have the meanings given them in the
Plan: “Affiliate;” “Board;” “Code;” “Committee;” “Consent;” “Family Members;” “Option Exercise
Price;” “Shares.”

          (c) The term “Change in Control” shall have the meaning given to it in the Optionee’s
Employment Agreement with the Company.

     2. Grant of Nonqualified Option. Effective as of the date of this Agreement, the
Company grants to the Optionee, upon the terms and conditions set forth hereinafter, the right and
option to purchase all or any lesser whole number of an aggregate of Two Hundred Sixty Three
Thousand (263,000) Shares at an Option Exercise Price of $0.80 per Share, which the Committee and
the Optionee believe to be the Fair Market Value of a Share as of the date hereof. The Option
shall for all purposes be a nonqualified stock option subject to the federal income tax treatment
described in Section 1.83-7 of the Federal Income Tax Regulations. Both the Company and the
Optionee shall, on their respective federal income tax returns, report any transaction relating to
the Option in a manner consistent with the preceding sentence.

     3. Term of Option. Except as otherwise provided herein, the term of the Option shall
be for a period of ten (10) years from the date hereof, and the Option shall expire at the close of
regular business hours at the Company’s principal executive office (currently located

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at 1900 S. State College Blvd., Suite 200, Anaheim, CA 92806) on the last day of the term of the
Option, or, if earlier, on the applicable expiration date provided for in Sections 5, 6 and 7
hereof.

     4. Exercise Dates. Except as otherwise provided herein, the Optionee shall be
entitled to exercise the Option with respect to the number of Shares indicated below on or after
the date indicated opposite such number below:

	 	 	 	 	 	 	 	 
	Initial and Additional	 	Total Shares with	 	 
	Number of Shares with	 	Respect to Which	 	Date Beginning
	Respect to Which the	 	the Option May	 	on Which Option
	Option May be Exercised	 	be Exercised	 	May be Exercised
	87,666.66 Shares

	 	87,666.66	 	 	July 5, 2007
	87,666.67 Shares

	 	175,333.33	 	 	July 5, 2008
	87,666.67 Shares

	 	263,000	 	 	July 5, 2009

Except as provided in Sections 5 and 6 hereof, the Option may not be exercised at any time unless
the Optionee shall be an Employee at such time.

     5. Termination of Employment, Etc. So long as the Optionee shall continue to be an
Employee, the Option shall not be affected by (a) any temporary leave of absence approved in
writing by the Company or an Affiliate, or (b) any change of duties or position (including transfer
to or from an Affiliate). If the Optionee ceases to be an Employee for any reason other than death
or Disability, the Option may be exercised only to the extent of the purchase rights, if any,
which, pursuant to Section 4 hereof, existed as of the date the Optionee ceases to be an Employee
and which have not theretofore been exercised; provided, however, that the
Committee may in its absolute discretion determine (but shall not be under any obligation to
determine) that such purchase rights shall be deemed to include additional Shares which are subject
to the Option. Except as provided in Section 6 below, upon an Optionee’s ceasing to be an
Employee, such purchase rights shall in any event terminate upon the earlier of

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either (a) three (3) months after the date the Optionee ceased to be an Employee (one (1) year
after the date the Optionee ceased to be an Employee if the Optionee dies or becomes Disabled
within three (3) months after ceasing to be an Employee), or (b) the last day of the term of the
Option. Notwithstanding the preceding provisions of this Section 5, unless the Committee shall
otherwise determine, upon the commission by the Optionee of a material breach of his obligations
under any agreement with the Company or any Affiliate, the Optionee’s right to purchase Shares
pursuant to the exercise of the Option shall terminate.

     6. Optionee’s Death or Disability. If, while the Optionee is an Employee, the
Optionee dies or becomes Disabled, the Optionee or the Optionee’s Personal Representative may
immediately exercise the Option with respect to all of the Shares subject to the Option which have
vested pursuant to Section 4 hereof and which are scheduled to vest during the twelve (12) months
following such death or Disability. The Option shall in any event terminate upon the earlier of
either (a) the first anniversary of the date the Optionee ceased to be an Employee as a result of
death or Disability; or (b) the last day of the term of the Option.

     7. Change in Control. Notwithstanding the provisions of Section 4 hereof, in
connection with a Change in Control, the Optionee shall have the immediate and nonforfeitable right
to exercise the Option with respect to all Shares covered by the Option. The Optionee shall be
entitled to exercise the Option as provided in the immediately preceding sentence regardless of
whether the surviving corporation in any merger or consolidation shall adopt and maintain the Plan.
In the event the Option becomes exercisable pursuant to this Section 7, the Company shall notify
the Optionee of his right to exercise the Option. Upon a Change in Control, the Option, to the
extent not exercised, shall terminate unless the surviving corporation assumes the Option.

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     8. Adjustment Upon Changes in Capitalization. The number of Shares which may be
purchased upon exercise of an Option and the Option Exercise Price shall be appropriately adjusted
as the Committee may determine for any change after the date of the Agreement in the number of
issued Shares resulting from the subdivision or combination of Shares or other capital adjustments,
or the payment of a stock dividend, or other change in the Shares effected without receipt of
consideration by the Company; provided, that any fractional Shares resulting from any such
adjustment shall be eliminated. Adjustments under this Section 8 shall be made by the Committee,
whose determination as to the adjustments to be made, and the extent thereof, shall be final,
binding and conclusive.

     9. Exercise of Option. The Option may be exercised by delivering to the Chairman,
Vice Chairman or Chief Financial Officer of the Company at the then principal office address of the
recipient officer, a completed Notice of Exercise of Option (obtainable from the Chief Financial
Officer of the Company) setting forth the number of Shares with respect to which the Option is
being exercised. Such Notice shall be accompanied by payment in full for the Shares, unless other
arrangements satisfactory to the Committee for prompt payment of such amount are made. Payment of
the Option Exercise Price may be made in any manner permitted by the Plan, subject to the consent
of the Committee as applicable. With the consent of the Committee, the Optionee may effect a
cashless exercise of the Option as described in the Plan. With the consent of the Committee in its
sole discretion, payment for Shares acquired upon exercise of the Option may be made by delivery to
the Company of an assignment of a sufficient amount of the proceeds from the sale of Shares
acquired upon exercise of the Option to pay for all or some of the Shares acquired upon exercise of
the Option and an authorization to the broker or selling agent to pay that amount to the Company,
which sale shall be made at the Optionee’s

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direction on the Option Exercise Date; provided, that the Committee may require the
Optionee to furnish an opinion of counsel acceptable to the Committee to the effect that such
delivery would not result in the Optionee incurring any liability under Section 16 of the Act and
does not require any Consent.

     10. Issuance of Share Certificates. Subject to the last sentence of this Section 10,
upon receipt by the Company prior to expiration of the Option of a duly completed Notice of
Exercise of Option accompanied by payment for the Shares being purchased pursuant to such Notice
(and, with respect to any Option exercised pursuant to Section 11 hereof by someone other than the
Optionee, accompanied in addition by proof satisfactory to the Committee of the right of such
person to exercise the Option), the Company shall deliver to the Optionee, within thirty (30) days
of such receipt, a certificate for the number of Shares so purchased. The Optionee shall not have
any of the rights of a stockholder with respect to the Shares which are subject to the Option
unless and until a certificate representing such Shares is issued to the Optionee. The Company
shall not be required to issue any certificates for Shares upon the exercise of the Option prior to
(i) obtaining any Consents which the Committee shall, in its sole discretion, determine to be
necessary or advisable, or (ii) the determination by the Committee, in its sole discretion, that no
Consents need be obtained.

     11. Successors in Interest, Etc. This Agreement shall be binding upon and inure to
the benefit of any successor of the Company and the heirs, estate, and Personal Representative of
the Optionee. A deceased Optionee’s Personal Representative shall act in the place and stead of the
deceased Optionee with respect to exercising an Option or taking any other action pursuant to this
Agreement. The Option shall not be transferable other than by will or the laws of descent and
distribution, and the Option may be exercised during the lifetime of the

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Optionee only by the Optionee; provided, that a guardian or other legal representative who
has been duly appointed for such Optionee may exercise the Option on behalf of the Optionee.
Notwithstanding the preceding sentence, with the consent of the Committee in its sole discretion,
the Optionee may transfer the rights under the Option in respect of some or all of the Shares which
are subject to the Option to a Family Member or a trust for the exclusive benefit of the Optionee
and/or Family Members, or a partnership or other entity affiliated with the Optionee that may be
approved by the Committee. All terms and conditions of any Option, including provisions relating
to the termination of the Optionee’s employment with the Company and its Affiliates, shall continue
to apply following a transfer made in accordance with this Section 11 and the Transferee shall have
no greater right to exercise the Option than the Optionee would have in the absence of the
transfer. The Option may be exercised by the Transferee only in accordance with the terms of this
Agreement and the Transferee’s exercise of the Option shall be subject to the Transferee and/or the
Optionee satisfying all of the conditions relating to the exercise of the Option including, without
limitation, provisions concerning payment of the Option Exercise Price and tax withholding.

     12. Provisions of Plan Control. This Agreement is subject to all of the terms,
conditions, and provisions of the Plan and to such rules, regulations, and interpretations relating
to the Plan as may be adopted by the Committee and as may be in effect from time to time. In the
event and to the extent that this Agreement conflicts or is inconsistent with the terms,
conditions, and provisions of the Plan, the Plan shall control, and this Agreement shall be deemed
to be modified accordingly.

     13. No Liability Upon Distribution of Shares. The liability of the Company under this
Agreement and any distribution of Shares made hereunder is limited to the obligations

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set forth herein with respect to such distribution and no term or provision of this Agreement shall
be construed to impose any liability on the Company or the Committee in favor of any person with
respect to any loss, cost or expense which the person may incur in connection with or arising out
of any transaction in connection with this Agreement.

     14. No Right to Be Employed, Etc. Nothing in this Agreement shall confer upon the
Optionee any right to continue as an Employee, or to serve as a member of the Board, or to
interfere with or limit either the right of the Company or an Affiliate to terminate his employment
at any time or the right of the stockholders of the Company to remove him as a member of the Board
for any reason or with no reason.

     15. Resale Limitations. The Optionee acknowledges and agrees that (a) the Shares he
may acquire upon exercise of the Option may not be transferred unless they become registered under
the Act or unless the holder thereof establishes to the satisfaction of the Company that an
exemption from such registration is available, (b) the Company will have no obligation to provide
any such registration or take such steps as are necessary to permit sale of such Shares without
registration pursuant to Rule 144 under the Act or otherwise, (c) at such time as such Shares may
be disposed of in routine sales without registration in reliance on Rule 144 under the Act, such
disposition may be made only in limited amounts in accordance with all of the terms and conditions
of Rule 144 and (d) if the Rule 144 exemption is not available, compliance with some other
exemption from registration will be required.

     16. Withholding Taxes.

     (a) Whenever Shares are to be delivered pursuant to the exercise of the Option, the Committee
may require as a condition of delivery that the Optionee remit an amount sufficient to satisfy all
federal, state and other governmental withholding tax requirements

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related thereto. The Company may, as a condition of the exercise of the Option, deduct from any
salary or other payments due to the Optionee, an amount sufficient to satisfy all federal, state
and other governmental withholding tax requirements related thereto or to the delivery of any
Shares under the Plan.

     (b) With the consent of the Committee in its sole discretion, (i) the Optionee may satisfy all
or part of any withholding requirements by delivery of unrestricted Shares owned by the Optionee
for at least one year (or such other period as the Committee may determine) having a Fair Market
Value (determined as of the date of such delivery) equal to all or part of the amount to be
withheld; provided, that the Committee may require the Optionee to furnish an opinion of
counsel or other evidence acceptable to the Committee to the effect that such delivery would not
result in the Optionee incurring any liability under Section 16 of the Act and does not require any
Consent and/or (ii) the Optionee may direct that Shares to be issued pursuant to the exercise of
the Option be used to satisfy any withholding obligation; provided, that for purposes of
satisfying any such obligation the value of a Share shall be equal to the Spread if the Option
Exercise Price has not been paid to the Company by the Optionee.

     17. Internal Revenue Code Section 409A. Notwithstanding anything in the Plan or this
Agreement to the contrary, the Option is intended to meet the requirements for exclusion from
coverage under Section 409A of the Code for nonstatutory stock options not providing for the
deferral of compensation and this Agreement shall be construed and administered accordingly.
Without limiting the foregoing: (1) in the event that the Option Exercise Price is determined not
to reflect the “fair market value” of each Share underlying this Agreement, then the Option
Exercise Price shall be the fair market value of each Share underlying this Agreement as determined
by the Company and in a manner consistent with

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applicable requirements for exclusion of this Agreement from coverage under Section 409A of the
Code; and (2) in no event shall the Optionee be permitted to defer compensation relating to the
Option (except for the inherent deferral of recognition of income until the exercise of the Option)
under the Plan or otherwise. Furthermore, in the event that the requirements for exclusion from
coverage under Section 409A of the Code are liberalized, clarified or different features are made
available contingent upon compliance with certain requirements, the Board may, in its sole and
absolute discretion, amend this Agreement in a manner consistent with those liberalized or
clarified requirements or to permit the Company, the Optionee or both to take advantage of those
different features.

     18. Construction. The captions and section numbers appearing in this Agreement are
inserted only as a matter of convenience. They do not define, limit, construe or describe the
scope or intent of the provisions of this Agreement. The use of the singular or plural herein
shall not be restrictive as to number and shall be interpreted in all cases as the context shall
require. The use of the feminine, masculine or neuter pronoun shall not be restrictive as to
gender and shall be interpreted in all cases as the context may require.

     19. Time Periods, Etc. Any action required to be taken under this Agreement within a
certain number of days shall be taken within that number of calendar days; provided,
however, that if the last day for taking such action falls on a weekend or a holiday, the period
during such action may be taken shall be automatically extended to the next business day. If the
day for taking any action, or on which any action may be taken, under this Agreement falls on a
weekend or a holiday, such action may be taken on the next business day.

     20. Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Delaware and any applicable federal law.

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     21. Notices. Except as otherwise expressly provided herein, all notices hereunder
shall be in writing and delivered or mailed by registered or certified mail, return receipt
requested, or by private, overnight delivery services (such as Federal Express) as follows:

If to the Company:

New Horizons Worldwide, Inc.

1900 S. State College Blvd.

Suite 200

Anaheim, California 92806

Attention: Chief Financial Officer

If to the Optionee:

Last address set forth on the records

of the Company or its Affiliates

or at such other address as either party may hereafter designate by giving notice to the other
party as set forth above.

     22. Further Assurances. From time to time after the exercise of an Option, either
party, upon request of the other and without further consideration, shall execute and deliver to
the requesting party any document or instrument, and shall take any other action as may be
reasonably requested, to give effect to the exercise of the Option and the terms of this Agreement.

(Signature Page Follows)

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     IN WITNESS WHEREOF, the Company has caused this Agreement to be executed on its behalf by its
duly authorized officer, and the Optionee has hereunto set his hand, all as of the day and year
first above written.

	 	 	 	 	 
	 	NEW HORIZONS WORLDWIDE, INC.

(the “Company”)

 	 
	 	By:  	/s/ Curtis Lee Smith, Jr.
 	 
	 	 	Its:  	Chairman 	 
	 	 	 	 
	 
	 	 	 
	 	     /s/  Mark A. Miller
 	 
	 	(the “Optionee”) 	 
	 	 	 
	 

13EX-10.3

 

Exhibit
10.3

NONQUALIFIED STOCK OPTION AGREEMENT

     THIS AGREEMENT is entered into as of July 5, 2006, by and between New Horizons Worldwide,
Inc., a Delaware corporation (the “Company”), and Mark A. Miller (the “Optionee”).

WITNESSETH:

     WHEREAS, the Company desires to provide certain of its officers, directors and key personnel
with an equity-based incentive to maintain and enhance the performance and profitability of the
Company; and

     WHEREAS, the Committee has determined that the Optionee should be granted nonqualified stock
options to acquire Shares upon the terms and conditions set forth in this Agreement.

     NOW, THEREFORE, the Company and the Optionee hereby agree as follows:

     1. Definitions. The following terms shall have the meanings set forth below whenever
used in this instrument:

          (i) The word “Act” shall mean the federal Securities Act of 1933, as amended.

          (ii) The word “Affiliate” shall mean any person or entity which, at the time of reference,
directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under
common control with, the Company.

          (iii) The word “Agreement” shall mean this instrument as originally executed and as it may
later be amended.

          (iv) The word “Board” shall mean the Board of Directors of the Company.

 

 

          (v) The word “Change in Control” shall have the meaning provided to it in the Optionee’s
Employment Agreement with the Company.

          (vi) The word “Code” shall mean the Internal Revenue Code of 1986, as amended, and any
successor statute.

          (vii) The word “Committee” shall mean the Compensation Committee of the Board of Directors of
the Company.

          (viii) The word “Company” shall mean New Horizons Worldwide, Inc., a Delaware corporation, and
any successor thereto.

          (ix) The word “Consent” shall mean (i) any and all listings, registrations or qualifications
in respect thereof upon any securities exchange or other self-regulatory organization or under any
federal, state or local law, rule or regulation, (ii) the expiration, elimination or satisfaction
of any prohibitions, restrictions or limitations under any federal, state or local law, rule or
regulation or the rules of any securities exchange or other self-regulatory organization, (iii) any
and all written agreements and representations by the Optionee with respect to the disposition of
Shares, or with respect to any other matter, which the Committee shall deem necessary or desirable
to comply with the terms of any such listing, registration or qualification or to obtain an
exemption from the requirement that any such listing, qualification or registration be made, and
(iv) any and all consents, clearances and approvals of any governmental or other regulatory bodies
or any parties to any loan agreements or other contractual obligations of the Company or any
Affiliate as necessary or desirable as a condition of, or in connection with, the granting of an
Option, the acquisition, issuance or purchase of Shares or other rights hereunder or the taking of
any other action hereunder,

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          (x) The word “Disability” or “Disabled” shall have the meaning provided to it in the
Optionee’s Employment Agreement with the Company.

          (xi) The word “Employee” shall mean any person who is an employee of either the Company or any
Affiliate.

          (xii) The term “Fair Market Value” shall mean, in respect of a Share, its fair market value as
determined in the reasonable judgment of the Committee at any time.

          (xiii) The term “Family Member” shall mean the spouse or lineal descendants of the Optionee,
or a trust for the exclusive benefit of the Optionee and/or spouse or lineal descendants of the
Optionee, or a partnership or other entity affiliated with the Optionee that may be approved by the
Committee.

          (xiv) The word “Option” shall mean the right and option to purchase Shares pursuant to the
terms of this Agreement.

          (xv) The term “Option Exercise Date” shall mean the date the Optionee exercises the Option by
performing the acts described in Section 7 hereof.

          (xvi) The word “Optionee” shall mean the person to whom the Option has been granted pursuant
to this Agreement.

          (xvii) The words “Personal Representative” shall mean, following the Optionee’s death, the
person who shall have acquired, by will or by the laws of descent and distribution, the right to
exercise the Option.

          (xviii) The word “Spread” shall mean, as of the Option Exercise Date, an amount equal to the
excess, if any, of the Fair Market Value of a Share in respect of which the Option is exercised
over the Option Exercise Price.

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          (xix) The word “Shares” shall mean shares of the $.01 par value common stock of the Company,
or any security into which such shares may be converted by reason of any transaction or event of
the type referred to in Section 8 hereof.

          (xx) The word “Transferee” shall mean the person or entity to whom rights to acquire Shares
pursuant to the exercise of the Option shall have been transferred pursuant to Section 11 hereof.

     2. Grant of Nonqualified Option. Effective as of the date of this Agreement, the
Company grants to the Optionee, upon the terms and conditions set forth hereinafter, the right and
option to purchase all or any lesser whole number of an aggregate of Two Hundred Sixty Three
Thousand (263,000) Shares at a price equal to $1.50 per Share (the “Option Exercise Price”). The
Option shall for all purposes be a nonqualified stock option subject to the federal income tax
treatment described in Section 1.83-7 of the Federal Income Tax Regulations. Both the Company and
the Optionee shall, on their respective federal income tax returns, report any transaction relating
to the Option in a manner consistent with the preceding sentence.

     3. Term of Option. Except as otherwise provided herein, the term of the Option shall
be for a period of ten (10) years from the date hereof, and the Option shall expire at the close of
regular business hours at the Company’s principal executive office (currently located at 1900 S.
State College Blvd., Suite 200, Anaheim, CA 92806) on the last day of the term of the Option, or,
if earlier, on the applicable expiration date provided for in Sections 5, 6 and 7 hereof.

     4. Exercise Dates. Except as otherwise provided herein, the Optionee shall be
entitled to exercise the Option with respect to the number of Shares indicated below on or after
the date indicated opposite such number below:

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	Initial and Additional	 	Total Shares with	 	 
	Number of Shares with	 	Respect to Which	 	Date Beginning
	Respect to Which the	 	the Option May	 	on Which Option
	Option May be Exercised	 	be Exercised	 	May be Exercised
	87,666.66 Shares
	 	 	87,666.66	 	 	July 5, 2007
	87,666.67 Shares
	 	 	175,333.33	 	 	July 5, 2008
	87,666.67 Shares
	 	 	263,000	 	 	July 5, 2009

Except as provided in Sections 5 and 6 hereof, the Option may not be exercised at any time unless
the Optionee shall be an Employee at such time.

     5. Termination of Employment, Etc. So long as the Optionee shall continue to be an
Employee, the Option shall not be affected by (a) any temporary leave of absence approved in
writing by the Company or an Affiliate, or (b) any change of duties or position (including transfer
to or from an Affiliate). If the Optionee ceases to be an Employee for any reason other than death
or Disability, the Option may be exercised only to the extent of the purchase rights, if any,
which, pursuant to Section 4 hereof, existed as of the date the Optionee ceases to be an Employee
and which have not theretofore been exercised; provided, however, that the
Committee may in its absolute discretion determine (but shall not be under any obligation to
determine) that such purchase rights shall be deemed to include additional Shares which are subject
to the Option. Except as provided in Section 6 below, upon an Optionee’s ceasing to be an
Employee, such purchase rights shall in any event terminate upon the earlier of either (a) three
(3) months after the date the Optionee ceased to be an Employee (one (1) year after the date the
Optionee ceased to be an Employee if the Optionee dies or becomes Disabled within three (3) months
after ceasing to be an Employee), or (b) the last day of the term of the Option. Notwithstanding
the preceding provisions of this Section 5, unless the Committee shall otherwise determine, upon
the commission by the Optionee of a material breach of his

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obligations under any agreement with the Company or any Affiliate, the Optionee’s right to purchase
Shares pursuant to the exercise of the Option shall terminate.

     6. Optionee’s Death or Disability. If, while the Optionee is an Employee, the
Optionee dies or becomes Disabled, the Optionee or the Optionee’s Personal Representative may
immediately exercise the Option with respect to all of the Shares subject to the Option which have
vested pursuant to Section 4 hereof and which are scheduled to vest during the twelve (12) months
following such death or Disability. The Option shall in any event terminate upon the earlier of
either (a) the first anniversary of the date the Optionee ceased to be an Employee as a result of
death or Disability; or (b) the last day of the term of the Option.

     7. Change in Control. Notwithstanding the provisions of Section 4 hereof, in
connection with a Change in Control, the Optionee shall have the immediate and nonforfeitable right
to exercise the Option with respect to all Shares covered by the Option. In the event the Option
becomes exercisable pursuant to this Section 7, the Company shall notify the Optionee of his right
to exercise the Option. Upon a Change in Control, the Option, to the extent not exercised, shall
terminate.

     8. Adjustment Upon Changes in Capitalization. The number of Shares which may be
purchased upon exercise of an Option and the Option Exercise Price shall be appropriately adjusted
as the Committee may determine for any change after the date of the Agreement in the number of
issued Shares resulting from the subdivision or combination of Shares or other capital adjustments,
or the payment of a stock dividend, or other change in the Shares effected without receipt of
consideration by the Company; provided, that any fractional Shares resulting from any such
adjustment shall be eliminated. Adjustments under this Section 8

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shall be made by the Committee, whose determination as to the adjustments to be made, and the
extent thereof, shall be final, binding and conclusive.

     9. Exercise of Option. The Option may be exercised by delivering to the Chairman,
Vice Chairman or Chief Financial Officer of the Company at the then principal office address of the
recipient officer, a completed Notice of Exercise of Option (obtainable from the Chief Financial
Officer of the Company) setting forth the number of Shares with respect to which the Option is
being exercised. Such Notice shall be accompanied by payment in full for the Shares, unless other
arrangements satisfactory to the Committee for prompt payment of such amount are made. Payment of
the Option Exercise Price may be made in any manner approved by the Committee, including, by (i)
delivery of previously acquired Shares owned by the Optionee for at least six (6) months (or such
other period as the Committee may prescribe) having a Fair Market Value (determined as of the
Exercise Date) equal to the portion of the Option Exercise Price being paid thereby, (ii)
withholding Shares from the Shares otherwise issuable pursuant to the exercise of the Option, where
the amount attributable to any Share so withheld shall be equal to the difference between the Fair
Market Value of the Share (determined as of the Option Exercise Date) and the Option Exercise
Price, or (iii) delivery to the Company of an assignment of a sufficient amount of the proceeds
from the sale of Shares acquired upon exercise of the Option to pay for all or some of the Shares
acquired upon exercise of the Option and an authorization to the broker or selling agent to pay
that amount to the Company, which sale shall be made at the Optionee’s direction on the Option
Exercise Date; provided, that with respect to clauses (i) and (iii) of this Section 9, the
Committee may require the Optionee to furnish an opinion of counsel acceptable to the Committee to
the effect that such

7

 

delivery would not result in the Optionee incurring any liability under Section 16 of the Act and
does not require any Consent.

     10. Issuance of Share Certificates. Subject to the last sentence of this Section 10,
upon receipt by the Company prior to expiration of the Option of a duly completed Notice of
Exercise of Option accompanied by payment for the Shares being purchased pursuant to such Notice
(and, with respect to any Option exercised pursuant to Section 11 hereof by someone other than the
Optionee, accompanied in addition by proof satisfactory to the Committee of the right of such
person to exercise the Option), the Company shall deliver to the Optionee, within thirty (30) days
of such receipt, a certificate for the number of Shares so purchased. The Optionee shall not have
any of the rights of a stockholder with respect to the Shares which are subject to the Option
unless and until a certificate representing such Shares is issued to the Optionee. The Company
shall not be required to issue any certificates for Shares upon the exercise of the Option prior to
(i) obtaining any Consents which the Committee shall, in its sole discretion, determine to be
necessary or advisable, or (ii) the determination by the Committee, in its sole discretion, that no
Consents need be obtained.

     11. Successors in Interest, Etc. This Agreement shall be binding upon and inure to
the benefit of any successor of the Company and the heirs, estate, and Personal Representative of
the Optionee. A deceased Optionee’s Personal Representative shall act in the place and stead of
the deceased Optionee with respect to exercising an Option or taking any other action pursuant to
this Agreement. The Option shall not be transferable other than by will or the laws of descent and
distribution, and the Option may be exercised during the lifetime of the Optionee only by the
Optionee; provided, that a guardian or other legal representative who has been duly
appointed for such Optionee may exercise the Option on behalf of the Optionee.

8

 

Notwithstanding the preceding sentence, with the consent of the Committee in its sole discretion,
the Optionee may transfer the rights under the Option in respect of some or all of the Shares which
are subject to the Option to a Family Member or a trust for the exclusive benefit of the Optionee
and/or Family Members, or a partnership or other entity affiliated with the Optionee that may be
approved by the Committee. All terms and conditions of any Option, including provisions relating
to the termination of the Optionee’s employment with the Company and its Affiliates, shall continue
to apply following a transfer made in accordance with this Section 11 and the Transferee shall have
no greater right to exercise the Option than the Optionee would have in the absence of the
transfer. The Option may be exercised by the Transferee only in accordance with the terms of this
Agreement and the Transferee’s exercise of the Option shall be subject to the Transferee and/or the
Optionee satisfying all of the conditions relating to the exercise of the Option including, without
limitation, provisions concerning payment of the Option Exercise Price and tax withholding.

     12. No Liability Upon Distribution of Shares. The liability of the Company under this
Agreement and any distribution of Shares made hereunder is limited to the obligations set forth
herein with respect to such distribution and no term or provision of this Agreement shall be
construed to impose any liability on the Company or the Committee in favor of any person with
respect to any loss, cost or expense which the person may incur in connection with or arising out
of any transaction in connection with this Agreement.

     13. No Right to Be Employed, Etc. Nothing in this Agreement shall confer upon the
Optionee any right to continue as an Employee, or to serve as a member of the Board, or to
interfere with or limit either the right of the Company or an Affiliate to terminate his employment
at any time or the right of the stockholders of the Company to remove him as a member of the Board

9

 

for any reason or with no reason.

     14. Resale Limitations. The Optionee acknowledges and agrees that (a) the Shares he
may acquire upon exercise of the Option may not be transferred unless they become registered under
the Act or unless the holder thereof establishes to the satisfaction of the Company that an
exemption from such registration is available, (b) the Company will have no obligation to provide
any such registration or take such steps as are necessary to permit sale of such Shares without
registration pursuant to Rule 144 under the Act or otherwise, (c) at such time as such Shares may
be disposed of in routine sales without registration in reliance on Rule 144 under the Act, such
disposition may be made only in limited amounts in accordance with all of the terms and conditions
of Rule 144 and (d) if the Rule 144 exemption is not available, compliance with some other
exemption from registration will be required.

     15. Withholding Taxes.

     (a) Whenever Shares are to be delivered pursuant to the exercise of the Option, the Committee
may require as a condition of delivery that the Optionee remit an amount sufficient to satisfy all
federal, state and other governmental withholding tax requirements related thereto. The Company
may, as a condition of the exercise of the Option, deduct from any salary or other payments due to
the Optionee, an amount sufficient to satisfy all federal, state and other governmental withholding
tax requirements related thereto or to the delivery of any Shares pursuant hereto.

     (b) With the consent of the Committee in its sole discretion, (i) the Optionee may satisfy all
or part of any withholding requirements by delivery of unrestricted Shares owned by the Optionee
for at least one year (or such other period as the Committee may determine) having a Fair Market
Value (determined as of the date of such delivery) equal to all or part of the

10

 

amount to be withheld; provided, that the Committee may require the Optionee to furnish an
opinion of counsel or other evidence acceptable to the Committee to the effect that such delivery
would not result in the Optionee incurring any liability under Section 16 of the Act and does not
require any Consent and/or (ii) the Optionee may direct that Shares to be issued pursuant to the
exercise of the Option be used to satisfy any withholding obligation; provided, that for
purposes of satisfying any such obligation the value of a Share shall be equal to the Spread if the
Option Exercise Price has not been paid to the Company by the Optionee.

     16. Internal Revenue Code Section 409A. Notwithstanding anything contained in this
Agreement to the contrary, the Option is intended to meet the requirements for exclusion from
coverage under Section 409A of the Code for nonstatutory stock options not providing for the
deferral of compensation and this Agreement shall be construed and administered accordingly.
Without limiting the foregoing: (1) in the event that the Option Exercise Price is determined not
to reflect the “fair market value” of each Share underlying this Agreement, then the Option
Exercise Price shall be the fair market value of each Share underlying this Agreement as determined
by the Company and in a manner consistent with applicable requirements for exclusion of this
Agreement from coverage under Section 409A of the Code; and (2) in no event shall the Optionee be
permitted to defer compensation relating to the Option (except for the inherent deferral of
recognition of income until the exercise of the Option) pursuant to the terms hereof or otherwise.
Furthermore, in the event that the requirements for exclusion from coverage under Section 409A of
the Code are liberalized, clarified or different features are made available contingent upon
compliance with certain requirements, the Board may, in its sole and absolute discretion, amend
this Agreement in a

11

 

manner consistent with those liberalized or clarified requirements or to permit the Company, the
Optionee or both to take advantage of those different features.

     17. Construction. The captions and section numbers appearing in this Agreement are
inserted only as a matter of convenience. They do not define, limit, construe or describe the
scope or intent of the provisions of this Agreement. The use of the singular or plural herein
shall not be restrictive as to number and shall be interpreted in all cases as the context shall
require. The use of the feminine, masculine or neuter pronoun shall not be restrictive as to
gender and shall be interpreted in all cases as the context may require.

     18. Time Periods, Etc. Any action required to be taken under this Agreement within a
certain number of days shall be taken within that number of calendar days; provided,
however, that if the last day for taking such action falls on a weekend or a holiday, the period
during such action may be taken shall be automatically extended to the next business day. If the
day for taking any action, or on which any action may be taken, under this Agreement falls on a
weekend or a holiday, such action may be taken on the next business day.

     19. Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Delaware and any applicable federal law.

     20. Notices. Except as otherwise expressly provided herein, all notices hereunder
shall be in writing and delivered or mailed by registered or certified mail, return receipt
requested, or by private, overnight delivery services (such as Federal Express) as follows:

If
to the Company:

New Horizons Worldwide, Inc.

1900 S. State College Blvd.

Suite 200

Anaheim, California 92806

Attention: Chief Financial Officer

12

 

If to the Optionee:

Last address set forth on the records

of the Company or its Affiliates

or at such other address as either party may hereafter designate by giving notice to the other
party as set forth above.

     21. Further Assurances. From time to time after the exercise of an Option, either
party, upon request of the other and without further consideration, shall execute and deliver to
the requesting party any document or instrument, and shall take any other action as may be
reasonably requested, to give effect to the exercise of the Option and the terms of this Agreement.

(Signature Page Follows)

13

 

     IN WITNESS WHEREOF, the Company has caused this Agreement to be executed on its behalf by its
duly authorized officer, and the Optionee has hereunto set his hand, all as of the day and year
first above written.

	 	 	 	 	 
	 	NEW HORIZONS WORLDWIDE, INC.

(the “Company”)

 	 
	 	By:  	/s/ Curtis Lee Smith, Jr.
 	 
	 	Its: Chairman 	 

	 
	 	 	 
	 	/s/ Mark A. Miller
 	 
	 	(the “Optionee”) 	 
	 	 	 
	 

14

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