Document:

exv10w1

Exhibit 10.1

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (“Agreement”) is made and effective as of May 13, 2008 between
RETAMA ENTERTAINMENT GROUP, INC., a Texas corporation (the “Corporation”), and CHRISTOPHER J. HALL,
an individual (the “Executive”).

     1. Employment. The Corporation and Executive hereby confirm the employment of
Executive on the terms and conditions set forth herein.

          1.1 Executive covenants to perform in good faith his employment duties as outlined herein,
devoting such productive time, energies and abilities to the proper and efficient management of the
business of the Corporation, and as may be required to perform the duties set forth herein.

          1.2 Executive shall not, without the prior written consent of the Corporation, directly or
indirectly, during the term of his employment by the Corporation and for two (2) years following
termination of Executive’s employment by the Company: (i) render services of business,
professional or commercial nature to any other person or entity, whether for compensation or
otherwise, similar or relating to the business of the Corporation, or (ii) engage in any activity
competitive with or adverse to the Corporation’s business or welfare, whether alone, as a partner
or member, or as an officer, director, employee or 5% or greater shareholder of a corporation.

     2. Term of Employment. Subject to the provisions set forth herein, the term of
Executive’s employment hereunder shall continue for one (1) year and thereafter for successive
terms of one (1) year each unless at the option of either party upon at least thirty days’ prior
written notice such employment is terminated at the end of the then current term.

Page 1 of 8

 

     3. Duties. Executive shall be employed to assist the Corporation in establishing and
operating Electronic Gaming Machines (“EGM”) at Retama Park. Executive shall provide quarterly
reports to the Board of Directors of the Corporation concerning the conduct of his duties and shall
be subject to such reasonable rules and policies established by the Board for all executives of the
Corporation. By execution hereof, Executive also executes the Employee Confidentiality Agreement
in the form annexed hereto and made a part hereof.

     4. Compensation. For all services he may render to the Corporation during the term of
this Agreement, including services as officer, director or member of any committee of the Board of
Directors, Executive shall receive the following compensation:

          4.1 When EGM begin commercial operation at Retama Park Racetrack or Retama Park licensed
premises, for annual Net Win amounts up to $120,000,000, Executive shall receive a monthly bonus of
1/2% of monthly Net Win generated at the premises. Additionally, for annual Net Win in excess of
$120,000,000, Executive shall receive a monthly bonus of 1/4% of monthly Net Win. Net Win shall mean
the amount of money placed by players into an EGM less money paid out to winning players. Net Win,
which may also be referred to as Net Machine Income or similar term by the Texas Lottery
Commission, shall be derived by reports issued by the Texas Lottery Commission.

          4.2 Such bonus compensation, as defined in Section 4.1, shall be paid to Executive for up to
ten (10) years from the time of termination, notwithstanding termination of Executive as an
employee of the Corporation for any reason other than action of the Board of Directors as defined
in Section 8(ii) or Cause as defined in Section 8(iii). If Executive is terminated as a result of
an action of the Board of Directors as defined in Section 8(ii) and the Executive fails to take
reasonable efforts to cure the defaults, for each year Executive has been

Page 2 of 8

 

employed by the Corporation, Executive shall be paid for two (2) years, until Executive has
accumulated a total of ten (10) years. The first two years shall be earned on the day that EGM’s
begin commercial operation at Retama Park Racetrack or Retama Park licensed premises, and each
additional two years will be earned on the anniversaries of initial EGM commercial operation.

          4.3 Executive and the Board of Directors of the Corporation acknowledge that compensation due
Executive herein is contingent upon the establishment of EGM at Retama Park and Executive’s active
participation in such establishment and operation of EGM at Retama Park.

     5. Benefits. During the term of this Agreement, Executive shall be entitled to the
benefits established for management of the Corporation from time-to-time.

     6. Disability or Death.

          6.1 If, during the Employment Period, the Executive shall die, the Corporation shall pay to
such person or persons as Executive shall from time to time designate in writing as the beneficiary
of such payment, or, in the absence of such designation, to Executive’s estate, (“Beneficiary”) the
amount due under Section 4.1 for a period of three (3) years.

          6.2 In the event Executive’s employment hereunder shall terminate because Executive has
incurred a “Disability”, as hereinafter defined, then there shall be paid to Executive the amount
due under Section 4.1 for a period of five (5) years. Such payments shall commence on the first
day of month next following such termination of employment. In the event Executive shall suffer an
event which might reasonably be considered a Disability, either the Corporation or the Executive
(or the Executive’s legal representative) shall have the right to give to the other party written
notice of such termination on 15 days notice. In the event the

Page 3 of 8

 

parties shall in good faith disagree on whether Executive is suffering a Disability, final
determination shall be made by a doctor reasonable acceptable to both parties. “Disability” shall
mean the inability of Executive, for a continuous period of more than twelve (12) months, to
perform substantially all of his regular duties and carry out substantially all of his
responsibilities hereunder because of physical or mental incapacity. The Corporation shall have the
right to have Executive examined by a competent doctor for purposes of determining his physical or
mental incapacity.

          6.3 The obligations of the Corporation under Section 6.2 may be satisfied, in whole or in
part, by payments to the Executive under disability insurance provided by the Company, and under
laws providing disability benefits for employees.

     7. Change of Control.

          7.1 In the event of Executive’s termination upon a Change of Control, Executive shall receive
at closing, one lump sum payment equal to the payment made in accordance with Section 4.1 in the
month immediately preceding the Change of Control multiplied by seventy-six (76). Payment to
Executive upon Change of Control pursuant to this Section 7.1 will cause any other payments or
bonuses contemplated in this Agreement to immediately cease.

          7.2 A termination upon a Change of Control shall be deemed to occur for purposes of this
Agreement in the event of a Change of Control (as defined below) upon which or within thirteen (13)
months following the consummation of which: Executive does not continue to render services as set
forth herein to the Corporation (or any successor or surviving corporation). For purposes of this
Agreement, a Change of Control means:

Page 4 of 8

 

          (i) Any sale, merger, consolidation, tender offer or similar acquisition of shares, or other
transaction or series of related transactions (each a “Transaction”) as a result of which at least
a majority of the voting power of the Corporation is not held, directly or indirectly, by the
persons or entities who held the Corporation’s securities with voting power before such
Transaction. This is provided, however, that any person who acquired voting securities of the
Corporation in contemplation of the Transaction and who immediately after such Transaction
possesses direct or indirect ownership of at least ten percent (10%) of the securities of the
Corporation or the surviving entity (or if the Corporation or the surviving entity is a controlled
affiliate of another entity, then of such controlling entity) shall not be included in the group of
those persons or entities who held the Corporation’s securities with voting power before such
Transaction;

          (ii) A sale or other disposition of all or a substantial part of the Corporation’s assets,
whether in one transaction or a series of related transactions; or

          (iii) Individuals who on the date hereof constitute the Board and any new director (other than
a director designated by a person or entity who has entered into an agreement to effect a
transaction described in clause (i) or (ii) above) whose nomination and/or election to the Board
was approved by a vote of at least a majority of the directors then still in office who either were
directors on the date hereof or whose election or nomination for election was previously so
approved, cease for any reason to constitute a majority of the Board.

     8. Termination. The employment of Executive may be terminated at any time by:

          (i) Mutual agreement; or

          (ii) Action of the Board of Directors on 60 days written notice, in the event that the Board
determines that Executive has not been using reasonable efforts in the

Page 5 of 8

 

performance of his duties herein, provided, however, that such termination shall not be effective
if within the 30 days following receipt of such notice Executive takes reasonable efforts to cure
such default. Any dispute concerning the validity of such termination shall be resolved by binding
arbitration in the State of Texas; or

          (iii) The employment of Executive hereunder may be terminated by action of the Board of
Directors for Cause (as defined herein), effective immediately upon the day written notice of
termination for Cause is mailed or hand-delivered to Executive. For purposes of this Agreement
“Cause” means any of the following conduct by Executive: (i) embezzlement, misappropriation of
corporate funds, or other material acts of dishonesty; or (ii) commission or conviction of any
felony, or of any misdemeanor involving moral turpitude, or entry of a plea of guilty or nolo
contendere to any felony or misdemeanor.

     9. Indemnification. The Corporation shall indemnify Executive against expenses
(including attorneys’ fees and costs of investigation), judgments, fines and amounts paid in
settlement actually and reasonably incurred by Executive in connection with any threatened, pending
or completed action, suit or proceeding, whether civil, criminal, derivative, investigative or
administrative by reason of the fact that he is or was a director, officer, employee, or agent of
the Corporation or an affiliate of the Corporation or a participant in another corporation,
partnership or other enterprise at the request of the Corporation if he acted in good faith and in
a manner reasonably believed to be in or not opposed to the best interest of the Corporation or
such other entity, and with respect to any criminal action or proceeding, had no reasonable cause
to believe that his conduct was unlawful. The Corporation shall pay the foregoing expenses as
incurred and Executive shall repay any such amounts upon the final determination that he was not
entitled to such indemnification, such determination to be by a court of competent

Page 6 of 8

 

jurisdiction. Executive shall undertake any activities involving legislation on behalf of the
Corporation in compliance with all legal requirements governing such activities.

     10. Non-Raiding. Executive agrees that during his employment by the Corporation and
until the greater of (i) two years after the termination of Executive’s employment by the
Corporation for any reason, or (ii) such period of time as Executive is receiving bonus payments
pursuant to Section 4.1 hereof, he will not, directly or indirectly, without the prior written
consent of the Corporation, induce or influence, or seek to induce or influence, any person who is
engaged by the Corporation or any affiliate of the Corporation as an employee, agent, independent
contractor or otherwise, or any entity which is doing business with the Corporation in any capacity
to terminate or modify such employment or engagement, or such business relationship with the
Corporation nor shall Executive directly or indirectly, through any other person, firm or
corporation, employ or engage, or solicit for employment or engagement, or advise or recommend to
any other person or entity that such person or entity employ or engage or solicit for employment or
engagement, any person or entity employed or engaged by or doing business with the Corporation or
any affiliate of the Corporation.

     11. Miscellaneous.

          11.1 The failure of either party to enforce any provision of this Agreement shall not be
construed as a waiver of any such provision, nor prevent such party thereafter from enforcing such
provision or any other provision of this Agreement. The rights granted both parties herein are
cumulative and the election of one shall not constitute a waiver of such party’s right to assert
all other legal remedies available under the circumstances.

          11.2 Any notice to be given to the Corporation under the terms of this Agreement shall be
addressed to the Corporation, at the address of its principal place of business,

Page 7 of 8

 

and any notice to be given to Executive shall be addressed to him at his home address last shown on
the records of the Corporation, or such other address as either party may hereafter designate in
writing to the other. Any notice shall be deemed duly given when mailed by registered or certified
mail, postage prepaid, as provided herein.

          11.3 The provisions of the Agreement are severable, and if any provision of this Agreement
shall be held to be invalid or otherwise unenforceable, in whole or in part, the remainder of the
provisions, or enforceable parts thereof, shall not be affected thereby.

          11.4 The rights and obligations of the Corporation under this Agreement shall inure to the
benefit of and be binding upon the successors and assignees of the Corporation.

          11.5 This Agreement supersedes all prior agreements and understandings between the parties
hereto, oral or written, and may not be modified or terminated orally. No modification,
termination or attempted waiver shall be valid unless in writing, signed by the party against whom
such modification, termination or waiver is sought to be enforced.

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above
written.

	 	 	 
	RETAMA ENTERTAINMENT GROUP, INC
	 	 
	 
	 	 
	      /s/ Bryan P. Brown

	 	     /s/ Christopher J. Hall
	 	 	 
	Signature

	 	CHRISTOPHER J. HALL
	 
	 	 
	      Bryan P. Brown
	 	 
	 	 	 
	Print
	 	 
	 
	 	 
	      Chief Executive Officer
	 	 
	 
|	 	 
	Title
	 	 

Page 8 of 8exv10w1

Exhibit 10.1

MICROFINANCIAL INCORPORATED

2008 EQUITY INCENTIVE PLAN

1. Purpose.

The purpose of the MicroFinancial Incorporated 2008 Equity Incentive Plan (the “Plan”) is to
attract and retain persons who are expected to make important contributions to the Company and its
Affiliates, to provide an incentive for them to achieve the Company’s goals, and to enable them to
participate in the growth of the Company by granting Awards with respect to the Company’s Common
Stock. Certain capitalized terms used herein are defined in Section 7 below.

2. Administration.

The Plan shall be administered by the Committee; provided, that the Board may in any instance
perform any of the functions of the Committee hereunder. The Committee shall have authority to
adopt, alter and repeal such administrative rules, guidelines and practices governing the operation
of the Plan as it shall from time to time consider advisable, and to interpret the provisions
hereof in its discretion. The Committee’s determinations hereunder shall be final and binding.
The Committee may, subject to applicable law, delegate to one or more executive officers of the
Company the power to make Awards to Participants who are not Reporting Persons or Covered Employees
and all determinations hereunder with respect thereto, provided that the Committee shall fix the
maximum number of shares that may be subject to such Awards.

3. Eligibility.

All directors and all employees of the Company or any Affiliate capable of contributing to the
successful performance of the Company are eligible to be Participants in the Plan. Incentive Stock
Options may be granted only to persons eligible to receive such Options under the Code.

4. Stock Available for Awards.

     (a) Amount.     (i) Subject to adjustment under subsection (c), up to an aggregate of
1,000,000 shares of Common Stock, plus the shares subject to any Award that expires or is
terminated unexercised or is forfeited, to the extent of such expiration, termination, or
forfeiture, (collectively, the “Share Reserve”) may be issued pursuant to Awards, including
Incentive Stock Options, under the Plan. Shares issued under the Plan may consist of authorized
but unissued shares. Common Stock issued through the assumption or substitution of outstanding
grants from an acquired company shall not reduce the shares available for Awards under the Plan.

          (ii) In determining the number of shares granted hereunder for purposes of subsection (a)(i),
(A) each share subject to an Option or to the settled portion of a Stock Appreciation Right shall
reduce the Share Reserve by one share, (B) each share issued upon the

 

 

lapse of restrictions or
other vesting with respect to any other Award made to a non-employee director shall reduce the
Share Reserve by one share, and (C) each share issued upon the lapse of restrictions or other
vesting with respect to any other Award made to an employee shall reduce the Share Reserve by three
(3) shares.

     (b) Limit on Individual Grants. The aggregate number of shares of Common Stock that
may be granted to any Participant in any fiscal year (i) subject to Options or Stock Appreciation
Rights or (ii) subject to other types of Awards with respect to which Performance Goals apply shall
not exceed 200,000 shares, subject to adjustment under subsection (c).

     (c) Adjustments. Upon any equity restructuring, whether a stock dividend,
recapitalization, split-up or combination of shares, or otherwise, the number of shares in respect
of which Awards may be made under the Plan, the number of shares subject to outstanding Awards, the
exercise price with respect to any of the foregoing, and the limit on individual grants in
subsection (b) shall be proportionately adjusted, provided that the number of shares subject to any
Award shall always be a whole number. In the event the Committee determines that any other
reorganization, recapitalization, extraordinary dividend of cash and/or assets, merger, spin-off or
other corporate transaction affects the Common Stock such that an adjustment is required in order
to preserve the benefits intended to be provided by the Plan, the Committee shall equitably adjust
any or all of the number and kind of shares in respect of which Awards may be made under the Plan,
the number and kind of shares subject to outstanding Awards, the exercise price with respect to any
of the foregoing, and the limit on individual grants in subsection (b), provided that the number of
shares subject to any Award shall always be a whole number. Any adjustment made pursuant to this
subsection shall be subject, in the case of Incentive Stock Options, to any limitation required
under the Code and shall comply with the requirements of Section 409A of the Code.

5. Awards under the Plan.

     (a) Types of Awards. The Committee may grant Options, Stock Appreciation Rights,
Restricted Stock, Restricted Stock Units, Stock Equivalents and Awards of shares of Common Stock
that are not subject to restrictions or forfeiture.

     (b) Terms and Conditions of Awards.

     (i) The Committee shall select the Participants to receive Awards and determine the
terms and conditions of each Award. Without limiting the foregoing but subject to the other
provisions of the Plan and applicable law, the Committee shall determine (A) the number of shares of Common Stock subject to each Award or the manner in which such number shall be
determined, (B) the price, if any, a Participant shall pay to receive or exercise an Award
or the manner in which such price shall be determined, (C) the time or times when an Award
may vest or be exercised or settled; provided, however, that no Award granted to an employee
shall become fully vested within one (1) year from its date of grant, (D) any Performance
Goals, restrictions or other conditions to vesting, exercise, or settlement of an Award, (E)
whether an Award may be settled in the form of cash, Common Stock or other securities of the
Company, Awards or other property, and the manner of calculating the amount or value
thereof,

2

 

(F) the duration of any Restricted Period or any other circumstances in which an
Award may be forfeited to the Company; provided that an Award to an employee without any
other performance-based qualification criteria other than the employee’s continued service
shall have a minimum Restricted Period of at least one (1) year, (G) the effect on an Award
of the disability, death, retirement or other termination of service of a Participant, and
(H) the extent to which, and the period during which, the Participant or the Participant’s
legal representative, guardian or Designated Beneficiary may receive payment of an Award or
exercise rights thereunder.

     (ii) The Committee shall determine the form of consideration and manner of payment of
the exercise price of any Award; provided, however, that a Participant shall be required to
pay the exercise price of any Award in cash, by personal check, certified check or payment
commitment of a financial or brokerage institution as determined by the Committee.

     (iii) Any Award may be made alone, in addition to, or in relation to any other Award.
The terms of Awards of each type need not be identical, and the Committee need not treat
Participants uniformly. No Award shall be transferable except upon such terms and
conditions and to such extent as the Committee determines, provided that no Award shall be
transferable for value and Incentive Stock Options may be transferable only to the extent
permitted by the Code. No Award to any Participant subject to United States income taxation
shall provide for the deferral of compensation that does not comply with Section 409A of the
Code. The achievement or satisfaction of any Performance Goals, restrictions or other
conditions to vesting, exercise, or settlement of an Award shall be determined by the
Committee.

     (c) Provisions Applicable to Certain Types of Awards.

     (i) Options and Stock Appreciation Rights. The exercise price for any Option or Stock
Appreciation Right shall not be less than 100% of the Fair Market Value of the Common Stock
on the Date of Grant; provided that if the Board approves the grant of an Option or Stock
Appreciation Right with an exercise price to be determined on a future date, the exercise
price shall be no less than 100% of the Fair Market Value of the Common Stock on such future
date. No Option or Stock Appreciation Right shall have a term longer than ten years. No
Incentive Stock Option may be granted more than ten years after the effective date of the
Plan. The Committee shall determine the manner of calculating the excess in value of the
shares of Common Stock over the exercise price of a Stock Appreciation Right.

     (ii) Restricted Stock and Restricted Stock Units. Shares of Restricted Stock and
shares subject to Restricted Stock Units may not be sold, assigned, transferred, pledged or
otherwise encumbered, except as permitted by the Committee, during the applicable Restricted
Period. Restricted Stock Units shall be settled in shares of Common Stock. The Company
shall deliver certificates with respect to shares of Restricted Stock and Restricted Stock
Units to the Participant or, if the Participant has

3

 

died,
to the Participant’s Designated
Beneficiary at the expiration of the Restricted Period.

6. General Provisions.

     (a) Documentation. Each Award under the Plan shall be evidenced by documentation in
the form prescribed by the Committee and delivered to or executed and delivered by the Participant
specifying the terms and conditions of the Award and containing such other terms and conditions not
inconsistent with the provisions hereof as the Committee considers necessary or advisable to
achieve the purposes of the Plan or to comply with applicable law and accounting principles.

     (b) Termination and Forfeiture. The terms of any Award may include such continuing
provisions for termination of the Award and/or forfeiture or recapture of any shares, cash or other
property previously issued pursuant thereto relating to competition or other activity or
circumstances detrimental to the Company as the Committee may determine to be in the Company’s best
interests.

     (c) Dividends. In the discretion of the Committee, any Award may provide the
Participant with dividends or dividend equivalents payable (in cash, in shares of Common Stock, or
in the form of Awards under the Plan) currently or deferred and with or without interest.

     (d) Committee Discretion. Except as otherwise provided hereby or in a particular
Award, any determination or action with respect to an Award may be made or taken by the Committee
at the time of grant or at any time thereafter.

     (e) Change in Control. In order to preserve a Participant’s rights under an Award in
the event of a change in control of the Company (as defined by the Committee) and subject to the
provisions of any particular documentation evidencing the terms and conditions of an Award, the
Committee in its discretion may, at the time an Award is made or at any time thereafter, take such
actions, including without limitation one or more of the following: (i) providing for the
acceleration of any time period relating to the vesting, exercise, or settlement of the Award, (ii)
providing for payment to the Participant of cash or other property with a Fair Market Value equal
to the amount that would have been received upon the vesting, exercise, or settlement of the Award
in connection with the change in control, (iii) adjusting the terms of the Award in a manner
determined by the Committee to reflect the change in control, or (iv) causing the Award to be
assumed, or new rights substituted therefor, by another entity, as the Committee may consider
equitable to Participants and in the best interests of the Company.

     (f) Tax Withholding. A Participant shall pay to the Company, or make provision
satisfactory to the Committee for payment of, the minimum withholding taxes required by law to be
withheld in respect of Awards under the Plan no later than the date of the event creating the tax
liability. The Company and its Affiliates may, to the extent permitted by law, deduct the minimum
tax obligations from any payment of any kind due to the Participant under the Plan or otherwise.
In the Committee’s discretion, the minimum tax obligations required by law to be withheld in
respect of Awards may be paid in whole or in part in shares of Common Stock,

4

 

including shares
retained from the Award creating the tax obligation, valued at their Fair Market Value on the date
of retention or delivery.

     (g) Legal Compliance. The Company shall not be required to issue any shares of Common
Stock or take any other action pursuant to the Plan unless the Company is satisfied that all
requirements of law, or of any stock exchange on which the Common Stock is then listed, in
connection therewith have been or will be complied with, and the Committee may impose any
restrictions on the rights of Participants hereunder as it shall deem necessary or advisable to
comply with any such requirements.

     (h) Amendment of Awards. The Committee may amend, modify or terminate any outstanding
Award, including without limitation changing the dates of vesting, exercise or settlement, causing
the Award to be assumed by another entity, and converting an Incentive Stock Option to a
Nonstatutory Stock Option, provided that the Participant’s consent to such action shall be required
unless the terms of the Award permit such action, the Committee determines that such action is
required by law, or the Committee determines that the action, taking into account any related
action, would not materially and adversely affect the Participant. The foregoing notwithstanding,
without further approval of the stockholders of the Company, the Committee shall not authorize the
amendment of any outstanding Option or Stock Appreciation Right to reduce the exercise price and no
Option or Stock Appreciation Right shall be canceled and replaced with an Award exercisable for
Common Stock at a lower exercise price.

7. Definitions.

     (a) “Affiliate” means any business entity in which the Company owns directly or
indirectly 50% or more of the total voting power or has a significant financial interest as
determined by the Committee.

     (b) “Award” means any award of shares of Common Stock or right with respect to shares
described in Section 5(a).

     (c) “Board” means the Board of Directors of the Company.

     (d) “Code” means the Internal Revenue Code of 1986, as amended from time to time, or
any successor law.

     (e) “Committee” means the Compensation Committee of the Board or such other committee
appointed by the Board to administer the Plan or a specified portion thereof. Each such committee
shall be comprised of not less than two members of the Board who shall meet such criteria as the
Board may specify from time to time.

     (f) “Common Stock” means the Class A Common Stock, $0.01 par value, of the Company, or
such other securities of the Company as may be designated by the Committee from time to time.

     (g) “Company” means MicroFinancial Incorporated, a Massachusetts corporation.

5

 

     (h) “Covered Employee” means a “covered employee” within the meaning of Section 162(m)
of the Code.

     (i) “Date of Grant” means the date on which all requirements under applicable law and
the Company’s certificate of incorporation and bylaws for the effective grant of an Award have been
satisfied.

     (j) “Designated Beneficiary” means the beneficiary designated by a Participant, in a
manner determined by the Committee, to receive amounts due or exercise rights of the Participant in
the event of the Participant’s death. In the absence of an effective designation by a Participant,
“Designated Beneficiary” means the Participant’s legal representative.

     (k) “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to
time, or any successor law.

     (l) “Fair Market Value” with respect to the Common Stock or other property means the
fair market value thereof determined by such methods as shall be established by the Committee from
time to time. Unless otherwise determined by the Committee in good faith, the per share Fair
Market Value of the Common Stock as of any date shall mean (i) if the Common Stock is then listed
or admitted to trading on a national securities exchange, the last reported sale price on such date
on the principal national securities exchange on which the Common Stock is then listed or admitted
to trading or, if no such reported sale takes place on such date, the average of the closing bid
and asked prices on such exchange on such date or (ii) if the Common Stock is then traded in the
over-the-counter market, the average of the closing bid and asked prices on such date, as reported
by The Wall Street Journal or other appropriate publication selected by the Committee, for the
over-the-counter market.

     (m) “Incentive Stock Option” means an Option complying with the requirements of
Section 422 of the Code or any successor provision and any regulations thereunder.

     (n) “Option” means a right to purchase shares of Common Stock and may be an Incentive
Stock Option if specified by the Committee.

     (o) “Participant” means a person selected by the Committee to receive an Award under
the Plan.

     (p) “Performance Goals” means one or more objective performance goals based on one or
more of the following criteria established by the Committee: revenue; revenue growth; sales;
expenses; margins; net income; earnings or earnings per share; cash flow; shareholder return;
return on investment; return on invested capital, assets, or equity; profit before or after tax;
operating profit; unearned income; lease origination measures; credit quality measures; market
capitalization; quality improvements; market share; cycle time reductions; customer satisfaction
measures; strategic positioning or marketing programs; business/information systems improvements;
expense management; infrastructure support programs; human resource programs; customer programs;
technology development programs; or any combination of any of

6

 

the foregoing, and may be particular
to a Participant or may be based, in whole or in part, on the performance of the division,
department, line of business, subsidiary, or other business unit, whether or not legally
constituted, in which the Participant works or on the performance of the Company generally. Such
performance goals shall be set by the Committee within the time period prescribed by, and shall
otherwise comply with the requirements of, Section 162(m) of the Code, or any successor provision
thereto, and the regulations thereunder.

     (q) “Reporting Person” means a person subject to Section 16 of the Exchange Act.

     (r) “Restricted Period” means any period during which an Award or any part thereof may
be forfeited to the Company.

     (s) “Restricted Stock” means shares of Common Stock that are subject to forfeiture to
the Company.

     (t) “Restricted Stock Unit” means the right, subject to forfeiture, to receive the
value of a share of Common Stock in the future, payable in the form of Common Stock or other
securities of the Company, Awards or other property, and is an unfunded and unsecured obligation of
the Company.

     (u) “Stock Appreciation Right” means the right to receive any excess in value of
shares of Common Stock over the exercise price of such right.

     (v) “Stock Equivalent” means the right to receive payment from the Company based in
whole or in part on the value of the Common Stock, payable in the form of cash, Common Stock or
other securities of the Company, Awards or other property, and may include without limitation
phantom stock, performance units, and Stock Appreciation Rights.

     (w) “Transferable for value” means a transfer on terms that would prevent the Company
from relying on Securities and Exchange Commission Form S-8 (or any successor form) with respect to
the issuance of the Common Stock underlying the respective Award.

8. Miscellaneous.

     (a) No Rights with Respect to Service. No person shall have any claim or right
hereunder to be granted an Award. Neither the adoption, maintenance, or operation of the Plan nor
any Award hereunder shall confer upon any person any right with respect to the continuance of his
or her employment by or other service with the Company or any Affiliate nor shall they interfere
with the rights of the Company or any Affiliate to terminate or otherwise change the terms of such
service at any time, including, without limitation, the right to promote, demote or otherwise
re-assign any person from one position to another within the Company or any Affiliate. Unless the
Committee otherwise provides in any case, the service of a Participant with an Affiliate shall be
deemed to terminate for purposes of the Plan when such Affiliate ceases to be an Affiliate of the
Company.

7

 

     (b) No Rights as Stockholder. Subject to the provisions of the applicable Award, no
Participant or Designated Beneficiary shall have any rights as a stockholder with respect to any
shares of Common Stock to be issued under the Plan until he or she becomes the holder thereof.

     (c) Effective Date. The effective date of the Plan, from time to time, shall be the
most recent date that the Plan was adopted or that it was approved by the stockholders, if earlier
(as such terms are used in the regulations under Section 422 of the Code).

     (d) Amendment of Plan; Plan Term. The Board may amend, suspend or terminate the Plan
or any portion thereof at any time, subject to such stockholder approval as the Board determines to
be necessary or advisable to comply with any tax or regulatory requirement. Unless sooner
terminated, the Plan shall automatically terminate on the day before the tenth (10th) anniversary
of the earlier of (i) the date the Plan is adopted by the Board, or (ii) the date the Plan is
approved by the stockholders of the Company. No Awards may be granted under the Plan while the
Plan is suspended or after it is terminated.

8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}]]