Document:

Exhibit 10.1

                          SECURITIES PURCHASE AGREEMENT

This Securities Purchase Agreement (this "Agreement") is made by and between Red
Giant Entertainment, Inc., a Nevada corporation (the "Company") and Benny R.
Powell, an individual (the "Investor") (the Company and the Investor may be
referred to collectively as the "Parties").

                                    RECITALS

WHEREAS, the Company currently has 3,000,000,000 shares of common stock, par
value $0.0001 per share ("Common Stock") authorized, and 2,675,721,877 shares of
Common Stock outstanding;

WHEREAS, the Company currently has 100,000,000 shares of preferred stock
authorized and a series of preferred stock designated as Series Z, of which
5,000,000 shares of preferred stock are issued and outstanding;

WHEREAS, the Company has offered to sell to the Investor 5,000,000 shares of its
Series Z Preferred Stock (the "Shares" for a purchase price of $150,000 (the
"Purchase Price");

WHEREAS, the Company desires to sell to the Investor and the Investor desires to
purchase from the Company the Shares upon the terms and conditions set forth
herein.

NOW THEREFORE, in consideration of the promises and respective mutual agreements
herein contained, it is agreed by and between the Parties hereto as follows:

                                    ARTICLE 1
                         SALE AND PURCHASE OF THE SHARES

Section 1.01. ISSUANCE OF THE SHARES.

Subject to the terms and conditions set forth herein, and on the basis of the
representations, warranties and agreements herein contained, the Company shall
sell to the Investor, and the Investor shall purchase from the Company, the
Shares.

Section 1.02. CONSIDERATION AND PAYMENT FOR THE SHARES.

As consideration for this Agreement, the Investor hereby tenders $150,000.00,
and in exchange therefor the Company offers the Shares.

Section 1.03. LEGENDS; SHARES NOT REGISTERED UNDER THE SECURITIES ACT OF 1933.

The Shares have not been registered under the Securities Act of 1933, as amended
(the "Act"). The certificates representing the Shares shall bear a legend
substantially the same as the following:
<PAGE>
THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR THE SECURITIES LAWS OF
ANY STATE, AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED OR
OTHERWISE DISPOSED OF EXCEPT PURSUANT TO (i) AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE ACT AND ANY APPLICABLE STATE LAWS, (ii) TO THE EXTENT APPLICABLE, RULE
144 UNDER THE ACT (OR ANY SIMILAR RULE UNDER THE ACT RELATING TO THE DISPOSITION
OF SECURITIES), OR (iii) AN OPINION OF COUNSEL, IF SUCH OPINION SHALL BE
REASONABLY SATISFACTORY TO COUNSEL TO THE ISSUER, THAT AN EXEMPTION FROM
REGISTRATION UNDER THE ACT AND APPLICABLE STATE LAW IS AVAILABLE.

This Agreement is not part of a public offering and is intended to be made
pursuant to exemption from registration as set forth in Section 4(2) of the Act
and to be exempt from the registration requirements of various state securities
laws as may be applicable.

                                   ARTICLE II
                         REPRESENTATIONS AND WARRANTIES

Section 2.01.  INVESTOR REPRESENTATIONS AND WARRANTIES.

The Investor hereby represents and warrants that:

(a) The Investor acknowledges that the Shares are "restricted securities" (as
such term is defined in Rule 144 promulgated under the Act ("Rule 144")), that
the Shares will include the restrictive legend set forth in Section 1.03 of this
Agreement, and, except as otherwise set forth in this Agreement, that the Shares
cannot be sold unless registered with the United States Securities and Exchange
Commission ("SEC") and qualified by appropriate state securities regulators, or
unless Investor otherwise complies with an exemption from such registration and
qualification (including, without limitation, compliance with Rule 144).

(b) The Investor has adequate means of providing for current needs and
contingencies, has no need for liquidity in the investment, and is able to bear
the economic risk of an investment in the Shares. Investor represents that
Investor is able to bear the economic risk of the investment and at the present
time could afford a complete loss of such investment. Investor has reviewed this
Agreement and the Disclosure Documents (as defined in Section 2.02(b)) with
care. Additionally, Investor has had a full opportunity to inspect the books and
records of the Company and to make any and all inquiries of Company officers and
directors regarding the Company and its business as Investor has deemed
appropriate.

(c) The Investor is an "Accredited Investor" as defined in Regulation D of the
Act or Investor, either alone or with Investor's professional advisers who are
unaffiliated with, have no equity interest in and are not compensated by the
Company or any affiliate or selling agent of the Company, directly or
indirectly, has sufficient knowledge and experience in financial and business
matters that Investor is capable of evaluating the merits and risks of an
investment in the Shares offered by the Company and of making an informed

                                       2
<PAGE>
investment decision with respect thereto and has the capacity to protect
Investor's own interests in connection with Investor's proposed investment in
the Shares.

(d) The Investor is acquiring the Shares solely for the Investor's own account
as principal, for investment purposes only and not with a view to the resale or
distribution thereof, in whole or in part, and no other person or entity has a
direct or indirect beneficial interest in such Shares.

(e) The Investor will not sell or otherwise transfer the Shares without
registration under the Act or an exemption therefrom and fully understands and
agrees that the Investor must bear the economic risk of the Investor's purchase
for an indefinite period of time because, among other reasons, the Shares have
not been registered under the Act or under the securities laws of any state and,
therefore, cannot be resold, pledged, assigned or otherwise disposed of unless
they are subsequently registered under the Act and under the applicable
securities laws of such states or unless an exemption from such registration is
available.

(f) The Investor is not acquiring the Shares based upon his knowledge of
material non-public information about the Company, and the Investor further
avers that he is not aware of any material non-public information about the
Company.

Section 2.02. COMPANY REPRESENTATIONS AND WARRANTIES.

The Company hereby represents, warrants and covenants to the Investor as
follows:

(a) The Company has been duly organized and is validly existing as a corporation
in good standing under the laws of its state of incorporation. The Company is
duly qualified or licensed and in good standing as a foreign corporation in each
jurisdiction in which its ownership or leasing of any properties or the
character of its operations requires such qualification or licensing and where
failure to so qualify would have a material effect on the Company. The Company
has all requisite corporate power and authority, and all material and necessary
authorizations, approvals, orders, licenses, certificates and permits of and
from all governmental regulatory officials and bodies to own or lease its
properties and conduct its businesses as described in the Disclosure Documents
(as defined below) and the Company is doing business in compliance with all such
authorizations, approvals, orders, licenses, certificates and permits and all
federal, state and local laws, rules and regulations concerning the business in
which it is engaged except where the failure so to do business in compliance
would not have a material adverse effect on the business of the Company. The
Company has all corporate power and authority to enter into this Agreement and
to carry out the provisions and conditions hereof and thereof, and all consents,
authorizations, approvals and orders required in connection herewith and
therewith have been obtained or will have been obtained prior to the Closing. No
consent, authorization or order of, and no filing with, any court, government
agency or other body is required for the issuance of the Shares or any
securities issuable in respect of the Shares pursuant to this Agreement except
with respect to applicable federal and state securities laws.

(b) All material and relevant information about the Company is set forth in all
of the reports and documents filed by the Company with the SEC (collectively,

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<PAGE>
the "Disclosure Documents"), all of which are incorporated herein by this
reference as if such documents were set forth herein in their entirety.

(c) This Agreement has been duly and validly authorized, executed and delivered
by the Company and is a valid and binding agreement of the Company, enforceable
in accordance with its terms, except to the extent that the enforceability
hereof may be limited by (A) bankruptcy, insolvency, reorganization, moratorium
or similar laws from time to time in effect and affecting the rights of
creditors generally, (B) limitations upon the power of a court to grant specific
performance or any other equitable remedy, or (C) a finding by a court of
competent jurisdiction that the indemnification provisions herein are in
violation of public policy. The Shares have been duly authorized and will be
validly issued, fully paid and non-assessable; all corporate action required to
be taken for the authorization, issue and sale of the Shares has been duly and
validly taken; to the best knowledge of the Company, the Shares are not and will
not be subject to the preemptive rights of any stockholder of the Company which
have not been waived.

(d) The Company has good and marketable title to, or valid and enforceable
leasehold estates in, all items of real and personal property owned or leased by
it, free and clear of all liens, claims, encumbrances, security interests and
defects of any material nature whatsoever, except for Permitted Liens.
"Permitted Liens" means liens, claims, encumbrances, security interests and
defects of any material nature whatsoever that are described in the Disclosure
Documents or otherwise disclosed to the Investor.

(e) There is no litigation or governmental proceeding pending or threatened
against, or involving the properties or business of, the Company which the
Company believes would materially adversely affect the value or the operation of
the properties or the business of the Company, except as set forth in the
Disclosure Documents.

(f) The financial statements of the Company contained in the Disclosure
Documents fairly present the financial position and the results of operations of
the Company at the dates and for the periods to which they apply; and such
financial statements have been prepared in conformity with generally accepted
accounting principles, consistently applied throughout the periods involved.

(g) There has been no material adverse change in the condition or prospects for
commercialization of the Company, financial or otherwise, as of the latest dates
as of which such condition or prospects, respectively, are set forth in this
Agreement and the Disclosure Documents; and the outstanding debt, the property
and the business of the Company each conforms in all material respects to the
descriptions thereof contained herein and therein.

(h) The Company is not in violation of its Articles of Incorporation or Bylaws
concerning the Shares. Neither the execution and delivery of this Agreement nor
the consummation of any of the transactions contemplated herein, nor the
compliance by the Company with the terms and provisions contained herein, has
conflicted with or will conflict with, or has resulted in or will result in a
breach of, any of the terms and provisions of, or has constituted or will
constitute a default under, or has resulted in or will result in the creation or
imposition of any lien, charge or encumbrance upon any property or assets of the

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<PAGE>
Company pursuant to the terms of any indenture, mortgage, deed of trust, note,
loan or credit agreement or any other agreement or instrument evidencing an
obligation for borrowed money, or any other agreement or instrument to which the
Company is subject; nor will such action result in any violation of the
provisions of the Articles of Incorporation or the Bylaws of the Company, or any
statute or any order, rule or regulation applicable to the Company of any court
or of any federal, state or other regulatory authority or other government body
having jurisdiction over the Company; except for any conflict, breach, default,
lien, charge or encumbrance which does not have a material and adverse effect on
the Company, any of its business, property or assets, or any transactions
contemplated hereby.

(i) Neither the Disclosure Documents nor this Agreement contain any untrue
statement of a material fact or omits to state any material fact required to be
stated herein or therein or necessary to make the statements herein or therein,
in light of the circumstances under which they were made, not misleading. All
statements of material facts herein or therein (including, without limitation,
any attachment, exhibit or schedule hereto or thereto) are true and correct as
of the date hereof.

(j) (Reserved).

(k) Neither the Company, nor any of its respective officers, directors,
employees or agents, nor any other person acting on behalf of the Company has,
directly or indirectly, given or agreed to give any money, gift or similar
benefit (other than legal price concessions to customers in the ordinary course
of business) to any customer, supplier, employee or agent of a customer or
supplier, or official or employee of a customer or supplier, or official or
employee of any governmental agency or instrumentality of any government
(domestic or foreign) or any political party or candidate for office (domestic
or foreign) or other person who is or may be in a position to help or hinder the
business of the Company (or assist it in connection with any actual or proposed
transaction) which (A) might subject the Company to any damage or penalty in any
civil, criminal or governmental litigation or proceeding, (B) if not given in
the past, might have had a materially adverse effect on the assets, business
operations of the Company as reflected in any of the financial statements
delivered to the Investor, or (C) if not continued in the future, might
adversely affect the assets, business, operations or prospects of the Company.

(l) The minute books and corporate records of the Company contain a complete
summary of all meetings and actions of the managers, members, officers,
directors and stockholders of the Company since the time of its incorporation
(and of any predecessor to the Company) and reflect all transactions referred to
in such minutes accurately in all respects.

(m) The Company has not paid or promised to pay any form of compensation to any
unlicensed finders, whether in the form of finders fees, origination fees,
referral fees, or otherwise.

                                   ARTICLE III
                     CONDITIONS TO THE PARTIES' OBLIGATIONS

The obligation of the Company to sell the Shares at the Closing is subject to
the following conditions:

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<PAGE>
(a) The representations and warranties of the Investor contained herein shall be
true and correct in material respects on and as of the Closing.

(b) There shall be no preliminary or permanent injunction or other order,
decree, or ruling issued by a court of competent jurisdiction or by a
governmental, regulatory or administrative agency or commission, nor any
statute, rule, regulation or order promulgated or enacted by any governmental
authority, prohibiting or otherwise restraining the sale or purchase of the
Securities.

                                   ARTICLE IV
                                 INDEMNIFICATION

(a) The Company hereby agrees to defend, indemnify and hold harmless the
Investor against any and all losses, claims, damages or liabilities to which
such Investor may become subject, under the Act or otherwise, insofar as such
losses, claims, damages or liabilities (or actions in respect thereof) arise out
of or are based upon any untrue statement or alleged untrue statement of any
material fact contained herein, in the Disclosure Documents, in any documents
executed or delivered in connection herewith or therewith, or in any statement
made to or in any filing with the SEC or to or with any state securities
commission, bureau or office (including any amendments thereto), or arise out of
or based upon the omission or alleged omission to state herein or therein a
material fact required to be stated herein or therein or necessary to make the
statements herein or therein not misleading (unless such statements are made or
omitted in reliance upon and in conformity with written information furnished to
the Company with respect to such Investor by such Investor expressly for use
herein or therein or any amendment hereof or supplement hereto), or any
violation by the Company of the Act or state "blue sky" laws, or any breach by
the Company of its obligations, representations or warranties hereunder.

(b) The Investor hereby agrees to defend, indemnify and hold harmless the
Company and its respective stockholders, directors, employees, agents and each
person, if any, who controls any of the foregoing within the meaning of the Act,
against any and all losses, claims, damages or liabilities, to which the Company
or any of the Company's stockholders, directors, employees, agents or
controlling persons may become subject, under the Act or otherwise, insofar as
such losses, claims, damages, or liabilities (or actions in respect thereof)
arise out of or are based upon any breach by Investor of its obligations,
representations or warranties hereunder.

(c) Promptly after receipt by an indemnified party under either subparagraph (a)
or (b), as the case may be, of the notice of commencement of any action covered
by subparagraph (a) or (b), such indemnified party shall within five business
days notify the indemnifying party of the commencement thereof; the omission by
one indemnified party to so notify such indemnifying party shall not relieve the
indemnifying party of its obligations hereunder except to the extent such
indemnifying part has been materially prejudiced by such omission, shall not
relieve the indemnifying party of its obligation to indemnify any other
indemnified party that has given such notice and shall not relieve the
indemnifying party of any liability outside of this indemnification.

                                       6
<PAGE>
In the event that any action is brought against the indemnified party, and it
shall notify the indemnifying party in a timely manner, the indemnifying party
will be entitled to participate in such action and, to the extent it may desire,
to assume and control the defense thereof with counsel chosen by it. After
notice from the indemnifying party to such indemnified party of its election to
so assume the defense thereof, the indemnifying party will not be liable to such
indemnified party under such subparagraph for any legal or other expense
subsequently incurred by such indemnified party in connection with the defense
thereof, but the indemnified party may, at its own expenses, participate in such
defense by counsel chosen by it without, however, impairing the indemnifying
party's control of the defense. Notwithstanding anything to the contrary
contained herein, the indemnified party shall have the right to choose its own
counsel and control the defense of any action, all at the reasonable expense of
the indemnifying party, if (i) the employment of such counsel shall have been
authorized in writing by the indemnifying party in connection with the defense
of such action at the expense of the indemnifying party, (ii) the indemnifying
party shall not have employed counsel reasonably satisfactory to such
indemnified party to have charge of the defense of such action within a
reasonable time after notice of commencement of the action, or (iii) such
indemnified party shall have reasonably conclude that there may be defenses
available to such indemnified party that differ from the defenses available to
the indemnifying party (in which case the indemnifying party shall not have the
right to direct the defense of such action on behalf of such indemnified party),
in any of which events such reasonable fees and expenses of one additional
counsel (for all indemnified parties) shall be borne by the indemnifying party
(in the case of the Investor, one additional counsel for the Investor. No
settlement of any action or proceeding against an indemnified party shall be
made without the consent of the indemnified party, which consent shall not be
unreasonably withheld.

(d) In order to provide for just and equitable contribution under the Act in any
case in which (i) any indemnified party makes a claim for indemnification
pursuant to this paragraph but it is judicially determined (by entry of a final
judgment or decree by a court of competent jurisdiction and the expiration of
the time to appeal or the denial of the last right of appeal) that such
indemnification may not be enforced in such case, notwithstanding the fact the
this paragraph provides for indemnification in such case, or (ii) contribution
under the Act is required on the part of any such person in circumstances for
which indemnification is provided under this paragraph, then, in each such case,
the relevant Investor shall contribute to the aggregate losses, claims, damages
or liabilities to which it may be subject (after any contributions from others)
up to the amount of the Purchase Price, and the Company shall be responsible for
the remaining portion thereof; provided, that in any such case, no person guilty
of a fraudulent misrepresentation (within the meaning of Section 11(f) of the
Act) shall be entitled to contribution from any person who was not guilty of
such fraudulent misrepresentation.

                                    ARTICLE V
                                     NOTICES

Any notice, request, instruction, or other document required by the terms of
this Agreement, or deemed by any of the Parties hereto to be desirable, to be
given to any other party hereto shall be in writing and shall be given by
personal delivery, overnight delivery, mailed by registered or certified mail,
postage prepaid, with return receipt requested, or sent by facsimile

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<PAGE>
transmission to the addresses of the Parties set forth below each Party's
signature on this Agreement. The persons and addresses set forth below each
Party's signature on this Agreement may be changed from time to time by a notice
sent as aforesaid. If notice is given by personal delivery or overnight delivery
in accordance with the provisions of this Article, such notice shall be
conclusively deemed given at the time of such delivery provided a receipt is
obtained from the recipient. If notice is given by mail in accordance with the
provisions of this Article, such notice shall be conclusively deemed given upon
receipt and delivery or refusal. If notice is given by facsimile transmission in
accordance with the provisions of this Article, such notice shall be
conclusively deemed given at the time of delivery if during business hours and
if not during business hours, at the next business day after delivery, provided
a confirmation is obtained by the sender.

                                   ARTICLE VI
                                  MISCELLANEOUS

(a) This Agreement shall be governed by and construed and interpreted in
accordance with the laws of the state of Florida applicable to contracts made
and to be performed entirely therein, without giving effect to the rules of
conflicts of law. The Parties agree that the courts of the County of Lake, State
of Florida, shall have sole and exclusive jurisdiction and venue for the
resolution of all disputes arising under the terms of this Agreement and the
transactions contemplated herein.

(b) This Agreement shall be binding upon and inure to the benefit of the Parties
hereto and their respective successors and assigns.

(c) This Agreement and the Escrow Agreement represent the entire agreement
between the Parties relating to the subject matter hereof, superseding any and
all prior to contemporaneous oral and prior written agreements and
understandings. This Agreement may not be modified or amended nor may any right
be waived except by a writing signed by the party against whom the modification
or waiver is sought to be enforced.

(d) The warranties, representations, and covenants of the Company and the
Investor contained in or made pursuant to this Agreement shall survive the
execution and delivery of this Agreement and the Closing.

(e) The captions and headings contained herein are solely for convenience of
reference and do not constitute a part of this Agreement.

(f) Each of the attachments hereto is hereby incorporated herein as if each of
such attachments were fully set forth herein in its entirety. Each of such
attachments is hereby expressly made a part of this Agreement.

(g) The terms of this Agreement may only be amended or modified by the written
agreement of the Parties.

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<PAGE>
(h) This Agreement may be executed in two or more counterparts, each of which
shall be deemed an original, but all of which together shall constitute one and
the same instrument. The Parties agree that this Agreement may be executed by
facsimile signatures and such signatures shall be deemed originals.

(i) All Parties to this Agreement have been given the opportunity to consult
with counsel of their choice regarding their rights under this Agreement.

(j) The term "days," as used in this Agreement and in all documents contained in
this package, refers to calendar days unless otherwise clearly indicated.

IN WITNESS WHEREOF, intending to be legally bound, the Parties hereto have
executed this Agreement to be effective as of December 23, 2014.

COMPANY:

Red Giant Entertainment, Inc.,
a Nevada corporation

/s/ Benny R. Powell
---------------------------------
By:  Benny R. Powell
Its: President
Address: 614 E. Hwy 50, Suite 235
Clermont, FL 34711

INVESTOR:

/s/ Benny R. Powell
---------------------------------
By: Benny R. Powell

                                       9ex10-1_s8123014.htm

Exhibit 10.1

RIVERSIDE BANK AMENDED AND RESTATED 2003 STOCK OPTION PLAN

  

  

  

TABLE OF CONTENTS STOCK OPTION PLAN

 

	
1.

	
DEFINITIONS

	
1

	
2.

	
PURPOSES OF THE PLAN

	
3

	
3.

	
EFFECTIVENESS OF PLAN

	
3

	
4.

	
SHARES SUBJECT TO THE PLAN

	
3

	
5.

	
ADMINISTRATION OF THE PLAN

	
3

	
6.

	
ELIGIBILITY FOR PARTICIPATION

	
4

	
7.

	
TERMS AND CONDITIONS OF OPTIONS

	
4

	
8.

	
EXERCISE OF OPTION AND ISSUANCE OF SHARES

	
6

	
9.

	
RIGHTS AS A SHAREHOLDER

	
7

	
10.

	
ASSIGNABILITY AND TRANSFERABILITY OF OPTIONS

	
7

	
11.

	
EFFECT OF TERMINATION OF SERVICE OTHER THAN "FOR CAUSE"

	
8

	
12.

	
EFFECT OF TERMINATION OF SERVICE "FOR CAUSE"

	
9

	
13.

	
EFFECT OF TERMINATION OF SERVICE FOR DISABILITY

	
9

	
14.

	
EFFECT OF DEATH WHILE AN EMPLOYEE

	
10

	
15.

	
DISSOLUTION OR LIQUIDATION OF THE COMPANY

	
10

	
16.

	
ADJUSTMENTS

	
11

	
17.

	
ISSUANCE OF SECURITIES

	
12

	
18.

	
FRACTIONAL SHARES

	
12

	
19.

	
CONVERSION OF ISOs INTO NON-QUALIFIED OPTIONS

	
12

	
20.

	
WITHHOLDING

	
12

	
21.

	
NOTICE TO COMPANY OF DISQUALIFYING DISPOSITION

	
12

	
22.

	
TERMINATION OF THE PLAN

	
13

	
23.

	
AMENDMENT OF THE PLAN

	
13

	
24.

	
EMPLOYMENT OR OTHER RELATIONSHIP

	
13

	
25.

	
GOVERNING LAW

	
14

  

  

  

AMENDED AND RESTATED RIVERSIDE BANK 2003 STOCK OPTION PLAN

 

1.           DEFINITIONS:

 

Unless otherwise specified or unless the context otherwise requires, the following terms, as used in this AMENDED and RESTATED RIVERSIDE BANK 2003 Stock Option Plan, have the following meanings:

 

Administrator means the Human Resources Committee of the Board of Directors.

 

Banking Law means Section 140-a of the Banking Law and Part 26 of the New York Code of Regulations.

 

Board of Directors means the Board of Directors of the Company.

 

Code means the United States Internal Revenue Code of 1986, as amended.

 

Committee means the Committee to which the Board of Directors has delegated power to act under or pursuant to the provisions of the Plan.

 

Common Stock means shares of the Company's common stock, no par value.

 

Company means Riverside Bank, a New York Banking corporation.

 

Disability or Disabled means permanent and total disability as defined in Section 22(e) (3) of the Code.

 

Eligibility means an employee of the Company with one (1) full year of uninterrupted service.

 

Fair Market Value of a Share of Common Stock means:

 

	
(1)  

	
If the Common Stock is listed on a national securities exchange or traded in the over-the-counter market and sales prices are regularly reported for the Common Stock, the average of the closing or last sale prices of the Common Stock on the Composite Tape or other comparable reporting system for the ten (10) consecutive trading days immediately preceding such applicable date;

 

	
(2)  

	
If the Common Stock is not traded on a national securities exchange but is traded on the over-the-counter market, if sales prices are not regularly reported for the Common Stock for the ten (10) days referred to in clause (1), and if bid and asked prices for the Common Stock are regularly reported, the average of the mean between the bid and the asked price for the Common Stock at the close of trading in the over-the-counter market for the ten (10) days on which Common Stock was traded immediately preceding such applicable date; and

 

If the Common Stock is neither listed on a national securities exchange nor traded in the over-the-counter market, such value as the Administrator, in good faith, shall determine.

 

-1-

  

  

  

ISO means an option meant to qualify as an incentive stock option under Code Section 422.

 

Key Employee means an Eligible employee of the Company designated by the Administrator to be granted one or more Options under the Plan.

 

Non-Qualified Option means an option which is not intended to qualify as an ISO.

 

Option means an ISO or Non-Qualified option granted under the Plan.

 

Option Agreement means an agreement between the Company and a Participant executed and delivered pursuant to the Plan.

 

Participant means a Key Employee to whom one or more Options are granted under the Plan. As used herein, "Participant" shall include "Participant's Survivors" where the context requires.

 

Participant's Survivors means a deceased Participant's legal representatives and/or any person or persons who acquired the Participant's rights to an Option by will or by the laws of descent and distribution.

 

Plan means this Amended and Restated Riverside Bank 2003 Stock Option Plan.

 

Profit Shares means the Shares purchased by a Participant pursuant to one or more Options that have the value equal to the excess of the Fair Market Value of the Shares subject to such Option or Options over the purchase price of the option as set forth in the applicable Option Agreement.

 

Shares means shares of the Common Stock as to which options have been or may be granted under the Plan or any shares of capital stock into which the Shares are changed or for which they are exchanged within the provisions of Paragraph 3 of the Plan. The Shares issued upon exercise of Options granted under the Plan shall only be from authorized and unissued shares or shares held by the Company in its treasury, or both.

 

Superintendent means the New York State Superintendent of Banks.

 

2. PURPOSES OF THE PLAN

 

The Plan is intended to encourage ownership of Shares by Key Employees of the Company in order to attract such people, to induce them to work for the benefit of the Company and to provide additional incentive for them to promote the success of the company.

 

3. EFFECTIVENESS OF PLAN

 

This Amended and Restated Plan shall become effective on the date of its adoption by the Company's Board of Directors, subject however to approval of the Superintendent and the holders of the Company's Common Stock in the manner as prescribed in the Banking Law and the Code and the respective regulations thereunder. Options may be granted under this Plan prior to obtaining shareholder approval, provided such options shall not be exercisable before such shareholder approval is obtained.

 

-2-

  

  

  

4.           SHARES SUBJECT TO THE PLAN

 

The number of Shares subject to this Plan all of which must be authorized and unissued as to which Options may be granted from time to time shall be 100,000 or the equivalent of such number of Shares after the Administrator, in its sole discretion, has interpreted the effect of any stock split, stock dividend, combination, recapitalization or similar transaction effected after such date in accordance with Paragraph 16 of the Plan. Not more than 20% of the authorized shares shall be issued in any single calendar year. No individual may receive options under the Plan exercisable for more than 50% of the total number of shares of Common Stock authorized for issuance under this Plan.

 

If an Option ceases to be "outstanding", in whole or in part, the Shares which were subject to such Option shall be available for the granting of other Options under the Plan. Any Option shall be treated as "outstanding" until such Option is exercised in full, or terminates or expires under the provisions of the Plan, or by agreement of the parties to the pertinent Option Agreement.

 

5.           ADMINISTRATION OF THE PLAN.

 

The Administrator of the Plan will be the Human Resources Committee of the Board of Directors. Subject to the provisions of the Plan, the Administrator is authorized to:

 

	
a.  

	
Interpret the provisions of the Plan or of any option or Option Agreement and to make all rules and determinations which it deems necessary or advisable for the administration of the Plan;

 

	
b.  

	
Determine which employees of the Company shall be designated as Key Employees and which of the Key Employees shall be granted Options;

 

	
c.  

	
Determine the number of Shares for which an Option or Options shall be granted;

 

	
  

	
and

 

	
d.  

	
Specify the terms and conditions upon which an Option or options may be granted;

 

provided, however, that all such interpretations, rules, determinations, terms and conditions shall be made and prescribed in the context of preserving the tax status under Code Section 422 of those Options which arc designated as ISOs. Subject to the foregoing, the interpretation and construction by the Administrator of any provisions of the Plan or of any Option granted under it shall be final, unless otherwise determined by the Board of Directors, if the Administrator is other than the Board of Directors. No member of the Administrator shall be liable for any act or omission (whether or not negligent) taken or omitted in good faith, or for the exercise of any authority or discretion granted in connection with the Plan to the Administrator, or for the acts or omissions of any other members of the Administrator.

 

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6.           ELIGIBILITY FOR PARTICIPATION.

The Administrator will, in its sole discretion, name the participants in the Plan, provided, however, that each Participant must be a Key Employee of the Company at the time an Option is granted. ISOs may be granted to Key Employees. Non-Qualified Options may be granted to any Key Employee of the Company. The granting of any Option to any individual shall neither entitle that individual to, nor disqualify him or her from, participation in any other grant of options.

 

7.           TERMS AND CONDITIONS OF OPTIONS.

 

Each Option shall be set forth in writing in an Option Agreement, duly executed by the Company and by the Participant subject to such conditions as the Administrator may deem appropriate including, without limitation, subsequent approval by the stockholders of the Company of this Plan or any amendments thereto. The Option Agreements shall be subject to at least the following terms and conditions:

 

A.           Non-Qualified Options: Each Option intended to be a Non-Qualified Option shall be subject to the terms and conditions which the Administrator determines to be appropriate and in the best interest of the Company, subject to the following minimum standards for any such Non-Qualified Option;

 

	
a.  

	
Option Price: The option price (per share) of the Shares covered by each Option shall not be less than one hundred percent (100%) of the fair market value (per share) of the Shares on the date of the grant of the Option.

 

	
b.  

	
Each Option Agreement shall state the number of Shares to which it pertains;

 

	
c.  

	
Each Option Agreement shall state the date or dates on which it first is exercisable and the date after which it may no longer be exercised, and may provide that the Option rights accrue or become exercisable in installments over a period of months or years, or upon the attainment of stated goals; and

 

	
d.  

	
Provided that the Common Stock is not a class of securities registered under the Securities Exchange Act of 1934, as amended, exercise of any Option may be conditioned upon the Participant's execution of a Share purchase agreement in form satisfactory to the Administrator.

 

	
  

	
e.    

	
The Participant's or the Participant's Survivors' right to sell the Shares shall vest on the third anniversary of the date of granting of an Option.

 

	
i.  

	
The Participant or the Participant Survivors may be required to execute letters of investment intent and must also acknowledge that the Shares will bear legends noting any applicable restrictions.

 

	
ii.  

	
The terms and conditions of the Participant's Agreement are incorporated herein by reference as though fully set forth herein.

B.           ISOs: Each Option intended to be an ISO shall be issued only to a Key Employee and be subject to at least the following terms and conditions, with such additional restrictions or changes as the Administrator determines are appropriate but not in conflict with Code Section 422 and relevant regulations and rulings of the Internal Revenue Service:

 

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a.  

	
Minimum Standards: The ISO shall meet the minimum standards required of Participants who are granted Non-Qualified Options, as described above, except clause (a) thereunder.

 

	
b.  

	
Option Price: Immediately before the Option is granted, if the Participant owns, directly or by reason of the applicable attribution rules in Code Section 424(d):

 

	
i.  

	
Ten percent (10%) or less of the total combined voting power of all classes of share capital of the Company, the Option price (per share) of the Shares covered by each Option shall not be less than one hundred percent (100%) of the Fair Market Value (per share) of the Shares on the date of the grant of the Option.

 

	
ii.  

	
More than ten percent (10%) of the total combined voting power of all classes of share capital of the Company, the Option price (per share) of the Shares covered by each Option shall not be less than one hundred ten percent (110%) of the said Fair Market Value on the date of grant.

 

	
c.  

	
Term of Option: For Participants who own

 

	
i.  

	
Ten percent (10%) or less of the total combined voting power of all classes of share capital of the Company, each Option shall terminate not more than ten (10) years from the date of the grant or at such earlier time as the Option Agreement may provide.

 

	
ii.  

	
More than 10% of the total combined voting power of all classes of share capital of the Company, each Option shall terminate not more than five (5) years from the date of the grant or at such earlier time as the Option Agreement may provide.

 

	
d.  

	
Medium of Payment: The Option price shall be payable upon the exercise of the Option and only in such form as the Administrator determines and as is permitted by Section 422 of the Code.

 

	
e.  

	
Limitation on Yearly Exercise: The Option Agreements shall restrict the amount of Options which may be exercisable in any calendar year (under this or any other ISO plan of the Company) so that the aggregate Fair Market Value (determined at the time each ISO is granted) of the stock with respect to which ISOs are exercisable for the first time by the Participant in any calendar year does not exceed one hundred thousand dollars ($100,000), provided that this subparagraph (e) shall have no force or effect if its inclusion in the Plan is not necessary for options issued as ISOs to qualify as ISOs pursuant to Section 422(d) of the Code.

	
  

	
f.    

	
Limitation on Grant of ISOs: No ISOs shall be granted after April 25, 2013 the date which is the earlier of ten (10) years from the date of the adoption of the Plan by the Company and the date of the approval of the Plan by the shareholders of the Company. Neither the Company nor any of its officers, directors, shareholders, stock option plan committees, employees or agents shall have any liability to any optionee in the event: (i) an option granted as an ISO hereof does not qualify as an ISO as set forth in Section 422 of the Code and regulations thereunder; (ii) any optionee does not obtain the tax treatment pertaining to an ISO; or (iii) any option granted as a Non-Qualified Option hereof is an ISO.

 

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C.           Offer of Stock on Grant Date: Corporate action constituting an offer of stock for sale to any employee under the terms of the options to be granted hereunder shall be deemed complete as of the date when the Administrator authorized the grant of the option to the employee, regardless of when the option is actually delivered to the employee or acknowledged or agreed to by him.

 

8. EXERCISE OF OPTION AND ISSUANCE OF SHARES.

 

	
a.  

	
An Option (or any part or installment thereof) shall be exercised by giving written notice to the Company at its principal office address, together with the tender of the full purchase price for the Shares as to which such Option is being exercised, and upon compliance with any other condition(s) set forth in the Option Agreement. Such written notice shall be signed by the person exercising the Option, shall state the number of Shares with respect to which the Option is being exercised and shall contain any representation required by the Plan or the Option Agreement. Full payment of the purchase price for the Shares as to which such Option is being exercised shall be made (a) in United States dollars in cash or by check, or (b) at the discretion of the Administrator, through delivery of shares of Common Stock valued at a fair market value as of the date of exercise equal to the cash exercise price of the Option, subject to such limitations on the tender of Common Stock as the Committee may impose, or by a combination of cash and shares of Common Stock, or (c) at the discretion of the Administrator, by delivery of the grantee's personal recourse note bearing interest payable not less than annually at no less than 100% of the applicable Federal rate, as defined in Section 1274(d) of the Code, or (d) at the discretion of the Administrator, by any combination of (a), (b) and (c) above.

 

	
b.  

	
The Company shall then reasonably promptly deliver the Shares as to which such Option was exercised to the Participant (or to the Participant's Survivors, as the case may­ be). In determining what constitutes "reasonably promptly," it is expressly understood that the delivery of the Shares may be delayed by the Company in order to comply with any law or regulation which requires the Company to take any action with respect to the Shares prior to their issuance. The Shares shall, upon delivery, be evidenced by non-assessable Shares.

 

9. RIGHTS AS A SHAREHOLDER.

 

No Participant to whom an Option has been granted shall have rights as a shareholder with respect to any Shares covered by such Option, except after due exercise of the Option and tender of the full purchase price for the Shares being purchased pursuant to such exercise and registration of the Shares in the Company's share register in the name of the Participant.

 

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10.           ASSIGNABILITY AND TRANSFERABILITY OF OPTIONS.

By its terms, an Option granted to a Participant shall not be transferable by the Participant other than by will or by the laws of descent and distribution and shall be exercisable, during the Participant's lifetime, only by such Participant (or by his her legal representative). Such Option shall not be assigned, pledged or hypothecated in any way (whether by operation of law or otherwise) and shall not be subject to execution, attachment or similar process. Any attempted transfer, assignment, pledge, hypothecation or other disposition of any Option or of any rights granted thereunder contrary to the provisions of this Plan, or the levy of any attachment or similar process upon an Option, shall be null and void.

 

11.           EFFECT OF TERMINATION OF SERVICE OTHER THAN “FOR CAUSE”.

 

Except as otherwise provided in the pertinent Option Agreement, in the event of a termination of service with the Company before the Participant has exercised all Options, the following rules apply:

 

	
a.  

	
A Participant who ceases to be an employee of the Company (for any reason other than termination "for cause", Disability, or death for which events there are special rules in Paragraphs 11, 12, and 13, respectively), may exercise any Option granted to him or her to the extent that the right to purchase Shares has accrued on the date of such termination of service, but only within such term as the Administrator has designated in the pertinent Option Agreement.

 

	
b.  

	
The provisions of this paragraph, and not the provisions of Paragraph 12 or 13, shall apply to a Participant who subsequently becomes disabled or dies after the termination of employment provided, however, in the case of a Participant's death the Participant's Survivors may exercise the Option within the date of expiration of the term of the Option.

 

	
c.  

	
Notwithstanding anything herein to the contrary, if subsequent to a Participant's termination of employment but prior to the exercise of an Option, the Board of Directors determines that, either prior or subsequent to the Participant's termination, the Participant engaged in conduct which would constitute "cause", then such Participant shall forthwith cease to have any right to exercise any Option.

 

	
d.  

	
A Participant to whom an Option has been granted under the Plan who is absent from work with the Company because of temporary disability (any disability other than a permanent and total Disability as defined in Paragraph 1. hereof), or who is on leave of absence for any purpose, shall not, during the period of any such absence, be deemed, by virtue of such absence alone, to have terminated such Participant's employment status with the Company, except as the Administrator may otherwise expressly provide.

 

	
  

	
e.   

	
Options granted under the Plan shall not be affected by any change of employment or other service within or among the Company, so long as the Participant continues to be an employee of the Company, provided, however, if a Participant's employment by either the Company should cease (other than to become an employee of the Company), such termination shall affect the Participant's rights under any Option granted to such Participant in accordance with the terms of the Plan and the pertinent Option Agreement.

 

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12. EFFECT OF TERMINATION OF SERVICE "FOR CAUSE".

 

Except as otherwise provided in the pertinent Option Agreement, the following rules apply if the Participant's service with the Company is terminated "for cause" prior to the time that all of his or her outstanding Options have been exercised:

 

	
a.  

	
All outstanding and unexercised options as of the date the Participant is notified his or her service is terminated "for cause", will immediately be forfeited, unless the Option Agreement provides otherwise.

 

	
b.  

	
For purposes of this Article, "cause" shall include (and is not limited to) dishonesty with respect to the employer, insubordination, substantial malfeasance or non-feasance of duty, unauthorized disclosure of confidential information, and conduct substantially prejudicial to the business of the Company. The determination of the Administrator as to the existence of cause will be conclusive on the Participant and the Company.

 

	
c.  

	
"Cause" is not limited to events, which have occurred prior to a Participant's termination of service, nor is it necessary that the Administrator's finding of "cause" occur prior to termination. If the Administrator determines, subsequent to a Participant's termination of service but prior to the exercise of an Option, that either prior or subsequent to the Participant's termination the Participant engaged in conduct which would constitute "cause", then the right to exercise any Option is forfeited.

 

	
d.  

	
Any definition in an agreement between the Participant and the Company, which contains a conflicting definition of "cause" for termination and which is in effect at the time of such termination, shall supersede the definition in this Plan with respect to such Participant.

 

13. EFFECT OF TERMINATION OF SERVICE FOR DISABILITY.

 

Except as otherwise provided in the pertinent Option Agreement, a Participant who ceases to be an employee of the Company by reason of Disability may exercise any Option granted to such Participant:

 

	
a.  

	
To the extent that the right to purchase Shares has accrued on the date of his or her Disability; and

 

	
b.  

	
In the event rights to exercise the Option accrue periodically, to the extent of a pro rata portion of any additional rights as would have accrued had the Participant not become Disabled prior to the end of the accrual period which next ends following the date of Disability. The proration shall be based upon the number of days of such accrual period prior to the date of Disability

 

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A Disabled Participant may exercise such rights only within a period of not more than one (1) year after the date that the Participant became Disabled, notwithstanding that the Participant might have been able to exercise the Option as to some or all of the Shares on a later date if he or she had not become disabled and had continued to be an employee or, if earlier, within the originally prescribed term of the Option.

The Administrator shall make the determination both of whether Disability has occurred and the date of its occurrence (unless a procedure for such determination is set forth in another agreement between the Company and such Participant, in which case such procedure shall be used for such determination). If requested, the Participant shall be examined by a physician selected or approved by the Administrator, the cost of which examination shall be paid for by the Company.

 

14. EFFECT OF DEATH WHILE AN EMPLOYEE

 

Except as otherwise provided in the pertinent Option Agreement, in the event of the death of a Participant to whom an Option has been granted while the Participant is an employee the Company, such Option may be exercised by the Participant's Survivors:

 

	
a.  

	
To the extent exercisable but not exercised on the date of death; and

 

	
b.  

	
In the event rights to exercise the Option accrue periodically, to the extent of a pro rata portion of any additional rights which would have accrued had the Participant not died prior to the end of the accrual period which next ends following the date of death. The proration shall be based upon the number of days of such accrual period prior to the Participant's death.

 

If the Participant's Survivors wish to exercise the Option, they must take all necessary steps to exercise the Option within one (1) year after the date of death of such Participant, notwithstanding that the decedent might have been able to exercise the Option as to some or all of the Shares on a later date if he or she had not died and had continued to be an employee or, if earlier, within the originally prescribed term of the Option.

 

15. DISSOLUTION OR LIQUIDATION OF THE COMPANY.

 

Upon the dissolution or liquidation of the Company, all Options granted under this Plan which as of such date shall not have been exercised will terminate and become null and void; provided, however, that if the rights of a Participant or a participant's Survivors have not otherwise terminated and expired, the Participant or the Participant's Survivors will have the right immediately prior to such dissolution or liquidation to exercise any option to the extent that the right to purchase Shares has accrued under the Plan as of the date immediately prior to such dissolution or liquidation.

 

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16. ADJUSTMENTS.

 

Upon the occurrence of any of the following events, a Participant's rights with respect to any Option granted to him or her hereunder which have not previously been exercised in full shall be adjusted as hereinafter provided, unless otherwise specifically provided in the written agreement between the Participant and the Company relating to such Option:

 

	
  

	
a.   

	
Stock Dividends and Stock Splits. If the shares of Common Stock shall be subdivided or combined into a greater or smaller number of shares or if the Company shall issue any shares of Common Stock as a stock dividend on its outstanding Common Stock, the number of shares of Common Stock deliverable upon the exercise of such Option shall be appropriately increased or decreased proportionately, and appropriate adjustments shall be made in the purchase price per share to reflect such subdivision, combination or stock dividend.

 

	
b.  

	
Consolidation or Mergers. If the Company is to be consolidated with or acquired by another entity in a merger, sale of all or substantially all of the Company's assets or otherwise (an "Acquisition"), the Administrator or the board of directors of any entity assuming the obligations of the Company hereunder (the "Successor Board"), shall, as to outstanding Options, cither (i) make appropriate provision for the continuation of such Options by substituting on an equitable basis for the Shares then subject to such Options either the consideration payable with respect to the outstanding shares of Common Stock in connection with the Acquisition or securities of any successor or acquiring entity; or (ii) upon written notice to the Participants, provide that all Options must be exercised, to the extent then exercisable, within a specified number of days of the date of such notice, at the end of which period the options shall terminate; or (iii) terminate all Options in exchange for a cash payment equal to the excess of the fair market value of the shares subject to such Options (to the extent then exercisable) over the exercise price thereof.

 

	
c.  

	
Recapitalization or Reorganization. In the event of a recapitalization or reorganization of the Company (other than a transaction described in subparagraph B above) pursuant to which securities of the Company or of another corporation are issued with respect to the outstanding shares of Common Stock, Participant upon exercising an option shall be entitled to receive for the purchase price paid upon such exercise the securities he or she would have received if he or she had exercised such Option prior to such recapitalization or reorganization.

 

	
d.  

	
Modification of ISOs. Notwithstanding the foregoing, any adjustments made pursuant to subparagraphs A, B or C with respect to ISOs shall be made only after the Administrator, after consulting with counsel for the Company, determines whether such adjustments would constitute a modification within 424(h) of the Code or would cause any adverse tax consequences for the holders of such ISOs. If the Administrator determines that such adjustments made with respect to ISOs would constitute a modification of such ISOs, it may refrain from making such adjustments, unless the holder of an ISO specifically requests in writing that such adjustment be made and such writing indicates that the holder has full knowledge of the consequences of such "modification" on his or her income tax treatment with respect to the ISO.

 

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17.           ISSUANCE OF SECURITIES.

 

Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares subject to Options. Except as expressly provided herein, no adjustments shall be made for dividends paid in cash or in property (including without limitation, securities) of the Company.

18.           FRACTIONAL SHARES

 

No fractional share shall be issued under the Plan and the person exercising such right shall receive from the Company cash in lieu of such fractional share equal to the fair market value thereof determined in good faith by the Board of Directors of the Company.

 

	
19.  

	
CONVERSION OF ISOs INTO NON-QUALIFIED OPTIONS; TERMINATION OF ISOs.

 

The Administrator, at the written request of any Participant, may in its discretion take such actions as may be necessary to convert such Participant's ISOs (or any portions thereof) that have not been exercised on the date of conversion into Non-Qualified Options at any time prior to the expiration of such ISOs, regardless of whether the Participant is an employee of the Company at the time of such conversion. Such action may include extending the exercise period of such Options. At the time of such conversion, the Administrator (with the consent of the Participant) may impose such conditions on the exercise of the resulting Non-Qualified Option as the Administrator in its discretion may determine, provided that such conditions shall not be inconsistent with this Plan. Nothing in the Plan shall be deemed to give any Participant the right to have such Participants ISO's converted into Non-Qualified Options, and no such conversion shall occur until and unless the Administrator takes appropriate action. The Administrator, with the consent of the Participant, may also terminate any portion of any ISO that has not been exercised at the time of such termination.

 

20. WITHHOLDING

 

Upon the exercise of a Non-Qualified Option for less than the then Fair Market Value or the making of a Disqualifying Disposition (as defined in paragraph 21), the Company may withhold from the Participant's wages, if any, or other remuneration, or may require the Participant to pay additional federal, state, and local income tax withholding and employee contributions to employment taxes in respect of the amount that is considered compensation includible in such person's gross income. The Administrator in its discretion may condition the exercise of an option for less than the then Fair Market Value on the Participant's payment of such additional income tax withholding and employee contributions to employment taxes.

 

-11-

  

  

  

21. NOTICE TO COMPANY OF DISQUALIFYING DISPOSITION.

 

Each Key Employee who receives an ISO must agree to notify the Company in writing immediately after the Key Employee makes a Disqualifying Disposition of any shares acquired pursuant to the exercise of an ISO. A Disqualifying Disposition is any disposition (including any sale) of such shares before the later of (a) two years after the date the Key Employee was granted the ISO, or (b) one year after the date the Key Employee acquired shares by exercising the ISO. If the Key Employee has died before such stock is sold, these holding period requirements do not apply and no Disqualifying Disposition can occur thereafter.

 

22. TERMINATION OF THE PLAN.

 

The Plan will terminate on May 16, 2013, the date which is ten (10) years from the earlier of the date of its adoption and the date of its approval by the stockholders of the Company. The Plan may be terminated at an earlier date by vote of the Stockholders of the Company; provided, however, that any such earlier termination will not affect any Options granted or Option Agreements executed prior to the effective date of such termination.

23. AMENDMENT OF THE PLAN.

 

The Plan may be amended by the Administrator as hereinafter provided, subject to approval of the Superintendent and a majority of the Company Shareholders, including, without limitation, to the extent necessary to qualify any or all outstanding Options granted under the Plan or Options to be granted under the Plan for favorable federal income tax treatment (including deferral of taxation upon exercise) as may be afforded incentive stock options under Section 422 of the Code, to the extent necessary to ensure the qualification of the Plan under Rule 16b-3, and to the extent necessary to qualify the Shares issuable upon exercise of any outstanding Options granted, or Options to be granted, under the Plan for listing on any national securities exchange or quotation in any national automated quotation system of securities dealers. Any amendment approved by the Administrator which is of a scope that requires stockholder approval in order to ensure favorable federal income tax treatment for any incentive stock options or requires stockholder approval in order to ensure the compliance of the Plan with Rule 16b-3 shall be subject to obtaining such stockholder approval. Any modification or amendment of the Plan shall not, without the consent of a Participant, affect his or her rights under an Option previously granted to him or her. With the consent of the Participant affected, the Administrator may amend outstanding Option Agreements in a manner not inconsistent with the Plan. Notwithstanding the foregoing, the Administrator shall not without Stockholder approval amend the Plan which would (i) materially increase the benefits accruing to Participants under the Plan, (ii) materially increase the number of Shares which may be issued under the Plan, or (iii) materially modify the requirements for participation in the Plan.

 

24. EMPLOYMENT OR OTHER RELATIONSHIP.

 

Nothing in this Plan or any Option Agreement shall be deemed to prevent the Company from terminating the employment of a Participant, nor to prevent a Participant from terminating his or her own employment or to give any Participant a right to be retained in employment or other service by the Company for any period of time.

 

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25. GOVERNING LAW.

 

This Plan shall be construed and enforced in accordance with the law of the State of New York.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-13-

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