Document:

ex10-1.htm

    Exhibit 10.1

     

    SUBSCRIPTION
AGREEMENT

    

    SUBSCRIPTION
AGREEMENT (this “Subscription Agreement”) dated as of __________________, 2007
between Patio-Bahia, Inc., a Florida corporation, with its principal offices at
201 Holly Lane, Plantation, Florida 33317 (“Company”) and the undersigned (the
“Subscriber”).

    

    WHEREAS,
on the terms and subject to the conditions hereinafter set forth, the Company is
offering (the “Offering”) up to 100 units (the “Units”) to individuals or
entities who qualify as “accredited investors” as defined in Rule 501 of
Regulation D (“Regulation D”) promulgated under the Securities Act of 1933, as
amended (the “Act”) at a price per unit equal to US$1,000 (the “Unit Price”).
Each Unit consists of 5,000 shares of common stock of the Company, par value
$.001 per share (the “Common Stock”). The minimum investment per investor
(“Minimum Investment”) is one Unit ($1,000), however the minimum investment may
be decreased in the Company's sole discretion.  The Offering of the
Units is described in the Confidential Private Placement Memorandum dated August
27, 2007 (the “Memorandum”).  The Company will offer a minimum of 50
Units, on a “best efforts, all or none” basis, for an aggregate of US$50,000
(the “Minimum Amount”), and a maximum of 100 Units, on a “best efforts” basis,
for an aggregate of US$100,000 (the “Maximum Amount”). The purchase price is
payable in cash upon subscription.  Pending receipt of the Minimum
Amount, proceeds from the sale of the Units will be deposited by the Company in
a separate segregated Company bank account maintained by the Company at Colonial
Bank. The Offering will terminate on the earlier of (a) the sale of all the
Units,  (b) November 30, 2007 (the "Termination Date") unless extended
at the sole discretion of the Company without notice to investors for an
additional 30 days, or (c) the date the Company, in its sole discretion, elects
to terminate the Placement.  If the Minimum Amount is not subscribed
for by the Termination Date, the Company will return the subscriptions without
interest thereon or deduction therefrom and no Units will be sold.

     

    WHEREAS,
the Subscriber desires to acquire the shares of Common Stock in the aggregate
amount set forth on the signature page hereof.

    

    NOW,
THEREFORE, for and in consideration of the premises and the mutual covenants
hereinafter set forth, the parties hereto do hereby agree as
follows:

    

    Section
1.     Subscription
for the Units.    On the terms and subject to the
conditions hereinafter set forth, the Subscriber hereby subscribes for and
agrees to purchase from the Company, a Unit or Units in the amount and for the
purchase price set forth upon the signature page hereof (the “Purchase
Price”).  Notwithstanding the minimum amount required, the Company
reserves the right to accept subscriptions for lesser amounts.  The
Purchase Price is payable by certified or bank check made payable to
“Patio-Bahia, Inc.” contemporaneously with the execution and delivery of this
Subscription Agreement to the Company.  Following acceptance of all or
part of a Subscriber’s subscription, a stock certificate will be delivered by
the Company to Subscriber within ten (10) days following the initial or any
subsequent closing of the Offering in which Subscriber’s Unit subscription was
accepted.

    

    
      
        
        

      

      
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    Section
2.      Representations,
Warranties and Covenants of Subscriber.  Subscriber hereby
represents, warrants and covenants to the Company that:

    

    2.1           Subscriber
recognizes that the purchase of the Units and the shares of Common Stock
involves a high degree of risk in that (i) an investment in the Company is
highly speculative and only investors who can afford the loss of their entire
investment should consider investing in the Company, the Units and the shares of
Common Stock; (iii) an investor may not be able to liquidate his
investment; (iv) transferability of the Units and the shares of Common
Stock is extremely limited; and (v) a Subscriber could sustain the loss of his
entire investment.

    

    2.2           Subscriber
is an “accredited investor” as such term is defined in Rule 501(a) of
Regulation D promulgated under the Securities Act of 1933, as amended (the
“Securities Act”), and that he is able to bear the economic risk of an
investment in the Units and the Common Stock.

    

    2.3           Subscriber
has prior investment experience, including investment in non-listed and
non-registered securities, or has employed the services of an investment
advisor, attorney or accountant to read all of the documents furnished or made
available by the Company both to Subscriber and to all other prospective
investors in the Units and to evaluate the merits and risks of such an
investment on its behalf, and that Subscriber recognizes the highly speculative
nature of this investment.

    

    2.4           Subscriber
has received and has fully read and considered the Memorandum, including,
without limitation, the material set forth under “Risk Factors” and the sections
of the Memorandum describing the terms of the Offering.  In evaluating
the suitability of an investment in the Company, Subscriber has not relied upon
any representations or other information (whether oral or written) received from
the Company, its officers, directors, agents, employees or representatives,
except information set forth in the Memorandum or obtained from the Company to
verify such information. Subscriber has been given the opportunity to ask
questions and receive answers concerning the terms and conditions of the
Offering and to obtain such additional information as Subscriber deemed
necessary for an investment in the Units.

     
 

    2.5           Subscriber
acknowledges that the Offering may involve tax consequences and that he must
retain his own professional advisors to evaluate the tax and other consequences
of an investment in the Units.

    

    
      
        
        

      

      
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    2.6           Subscriber
acknowledges that the Offering has not been reviewed by the United States
Securities and Exchange Commission (the “SEC”) and that the Units are being
offered without registration under the Securities Act in reliance upon the
exemption from registration afforded by Section 4(2) of the Securities Act and
Rule 506 of Regulation D promulgated thereunder and without registration under
any state securities laws. Subscriber is purchasing the Units and the shares of
Common Stock for its own account for the purpose of investment and not with a
view to or for sale in connection with, or for purposes of, any “distribution”
thereof within the meaning of Section 2(11) of the Securities Act, and no other
person has or will have a direct or indirect beneficial interests in the
Units.  Subscriber agrees that it will not sell or otherwise transfer
the Units, or shares of Common Stock without the consent of the Company and will
not sell or otherwise transfer the Units or any shares of Common Stock unless
they are registered under the Securities Act and applicable state securities
laws or unless an exemption from such registration is available.

    

    2.7           Subscriber
understands that the Company has no obligation to register the Units or shares
of Common Stock and the Company is under no obligation to register any of the
shares of Common Stock, although the Company intends and will use its best
efforts to register the shares purchased in this Offering.  Subscriber
further understands that the Company has no obligation to assist Subscriber in
complying with any exemption from the registration of the Units or any shares of
Common Stock.  Subscriber understands that there is no public market
for the Units or shares of Common Stock.  The Subscriber understands
that even if a public market exists for the Units or shares of Common Stock,
Rule 144 (the “Rule”) promulgated under the Securities Act requires, among
other conditions, a one-year holding period prior to the resale (in limited
amounts) of securities acquired in a non-public offering without having to
satisfy the registration requirements under the Securities Act.  The
Subscriber understands that the Company makes no representation or warranty
regarding its fulfillment in the future of any reporting requirements under the
Securities Exchange Act of 1934, as amended, or its dissemination to the public
of any current financial or other information concerning the Company, as is
required by Rule 144 as one of the conditions of its
availability.  Subscriber agrees to hold the Company and its
directors, officers and controlling persons and their respective heirs,
representatives, successors and assigns harmless and to indemnify them against
all liabilities, costs and expenses incurred by them as a result of any
misrepresentation made by Subscriber contained herein or any sale or
distribution of the Units or shares of Common Stock by Subscriber in violation
of any securities laws.

    

    2.8           Subscriber
consents to the placement of one or more legends on any certificate or other
document evidencing the Units and shares of Common Stock stating that they have
not been registered under the Securities Act or any applicable state securities
laws and setting forth or referring to the restrictions on transferability and
sale thereof.

    

    2.9           Subscriber
understands that the Company reserves the unrestricted right to reject or limit
any subscription and to have one or more closings of the Offering at any
time.  Subscriber further understands that the Company shall not have
any obligation to sell any Units to any Subscriber who is a resident of a
jurisdiction in which the sale of Units or shares of Common Stock to such
Subscriber would constitute a violation of the securities, “blue sky” or other
similar laws of such jurisdiction.

    

    2.10          Subscriber’s
address set forth on the signature page hereto is its principal residence if
Subscriber is an individual or its principal business address if Subscriber is a
corporation or other entity.

    

    
      
        
        

      

      
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    2.11          Subscriber
is not subscribing for the Units as a result of, or subsequent to, any
advertisement, article, notice or other communication published in any
newspaper, magazine or similar media or broadcast over television or radio, or
presented at any seminar or general meeting.

    

    2.12          Subscriber
understands that the Company is relying upon the truth and accuracy of the
representations, warranties and agreements of Subscriber set forth herein in
making its determination that the offering and sale of the Units is exempt from
registration under the Securities Act and state securities laws.

    

    2.13          The
funds provided for this investment are either separate property of Subscriber,
community property over which Subscriber has the right of control or are
otherwise funds as to which Subscriber has the sole right of
management.

    

    2.14          Subscriber
has all requisite legal and other power and authority to execute and deliver
this Subscription Agreement and to carry out and perform Subscriber’s
obligations under the terms of this Subscription Agreement.  This
Subscription Agreement constitutes a valid and legally binding obligation of
Subscriber, enforceable in accordance with its terms, subject to laws of general
application relating to bankruptcy, insolvency and the relief of debtors and
rules of law governing specific performance, injunctive relief or other general
principals of equity, whether such enforcement is considered in a proceeding in
equity or law.

     

    2.15          This
Subscription Agreement and the Confidential Purchaser Questionnaire accompanying
this Subscription Agreement do not contain any untrue statement of a material
fact or omit any material fact concerning Subscriber.

    

    2.16          There
are no actions, suits, proceedings or investigations pending against Subscriber
or Subscriber’s assets before any court or governmental agency (nor, to
Subscriber’s knowledge, is there any threat thereof) which would impair in any
way Subscriber’s ability to enter into and fully perform Subscriber’s
commitments and obligations under this Subscription Agreement or the
transactions contemplated hereby.

    

    2.17          The
execution, delivery and performance of and compliance with this Subscription
Agreement and the issuance of the Unit and shares of Common Stock will not
result in any violation of, or conflict with, or constitute a default under, any
of Subscriber’s articles of incorporation or by-laws, if applicable, or any
agreement to which Subscriber is a party or by which it is bound, nor result in
the creation of any mortgage, pledge, lien, encumbrance or charge against any of
the assets or properties of Subscriber or the Unit or shares of Common
Stock.

    

    2.18          Subscriber
understands that the Units may be offered through registered broker/dealers
licensed by the National Association of Securities Dealers, Inc. ("NASD") and
commissions not to exceed 10% may be paid to such broker-dealers or other
persons who the Company is legally able to pay a commission.

    

    
      
        
        

      

      
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    2.19          Subscriber
represents and warrants that Subscriber has: (i) not distributed or reproduced
the Memorandum, in whole or in part, at any time, without the prior written
consent of the Company, and (ii) kept confidential the existence of the
Memorandum and the information contained therein or made available in connection
with any further investigation of the Company.

    

    2.21          With
respect to the United States Patriot Act:

    

    (i)           Subscriber
represents, warrants and covenants that Subscriber:

    

                                          (A)(I)
is subscribing for the Securities for Subscriber’s own account, own risk and own
beneficial interest, (II) is not acting as an agent, representative,
intermediary, nominee or in a similar capacity for any other person or entity,
nominee account or beneficial owner, whether a natural person or entity (each
such natural person or entity, an “Underlying Beneficial Owner”) and no
Underlying Beneficial Owner will have a beneficial or economic interest in the
Securities (whether directly or indirectly, including without limitation,
through any option, swap, forward or any other hedging or derivative
transaction), (III) if it is an entity, including, without limitation, a
fund-of-funds, trust, pension plan or any other entity that is not a natural
person (each, an “Entity”), has carried out thorough due diligence as to and
established the identities of such Entity’s investors, directors, officers,
trustees, beneficiaries and grantors (to the extent applicable, each a “Related
Person” of such Entity), holds the evidence of such identities, will maintain
all such evidence for at least five years from the date of Subscriber’s resale
or other disposition of the Securities, will request such additional information
as the Company may require to verify such identities as may be required by
applicable law, and will make such information available to the Company upon its
request, and (IV) does not have the intention or obligation to sell, pledge,
distribute, assign or transfer all or a portion of the Securities to any
Underlying Beneficial Owner or any other person; or

    
 

    (B)(I) is subscribing for the Units as
a record owner and will not have a beneficial ownership interest in the Units,
(II) is not acting as an agent, representative, intermediary, nominee or in a
similar capacity for one or more Underlying Beneficial Owners (as defined in
(i)(A)(I) above), and understands and acknowledges that the representations,
warranties and agreements made in this Agreement are made by Subscriber with
respect to both Subscriber and the Underlying Beneficial Owner(s), (III) has all
requisite power and authority from the Underlying Beneficial Owner(s) to execute
and perform the obligations under the Subscription Agreement, (IV) has carried
out thorough due diligence as to and established the identities of all
Underlying Beneficial Owners (and, if an Underlying Beneficial Owner is not a
natural person, the identities of such Underlying Beneficial Owner’s Related
Persons (to the extent applicable)), holds the evidence of such identities, will
maintain all such evidence for at least five years from the date of Subscriber’s
resale or other disposition of all the Securities, and will make such
information available to the Company upon its request and (V) does not have the
intention or obligation to sell, pledge, distribute, assign or transfer all or a
portion of the Securities to any person other than the Underlying Beneficial
Owner(s).

    

    
      
        
        

      

      
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    (ii)           Subscriber
hereby represents and warrants that the proposed investment in the Company that
is being made on its own behalf or, if applicable, on behalf of any Underlying
Beneficial Owners does not directly or indirectly contravene United States
federal, state, local or international laws or regulations applicable to
Subscriber, including anti-money laundering laws (a “Prohibited
Investment”).

    

    (iii)           Federal
regulations and Executive Orders administered by the U.S. Treasury Department’s
Office of Foreign Assets Control (“OFAC”) prohibit, among other things, the
engagement in transactions with, and the provision of services to, certain
foreign countries, territories, entities and individuals.  The lists
of OFAC prohibited countries, territories, persons and entities can be found on
the OFAC website at www.treas.gov/ofac.  Subscriber hereby represents
and warrants that neither Subscriber nor, if applicable, any Underlying
Beneficial Owner or Related Person, is a country, territory, person or entity
named on an OFAC list, nor is Subscriber nor, if applicable, any Underlying
Beneficial Owner or Related Person, a natural person or entity with whom
dealings are prohibited under any OFAC regulations.

    

    (iv)           Subscriber
represents and warrants that neither Subscriber nor, if applicable, any
Underlying Beneficial Owner or Related Person, is a senior foreign political
figure, or any immediate family member or close associate of a senior foreign
political figure within the meaning of, and applicable guidance issued by the
Department of the Treasury concerning, the U.S. Bank Secrecy Act (31 U.S.C.
§5311 et seq.), as amended, and any regulations promulgated
thereunder.

    

    (iv)           Subscriber
agrees promptly to notify the Company should Subscriber become aware of any
change in the information set forth in paragraphs (A) through (D).

    

    (v)             Subscriber
agrees to indemnify and hold harmless the Company, its affiliates, their
respective directors, officers, shareholders, employees, agents and
representatives (each, an “Indemnitee”) from and against any and all losses,
liabilities, damages, penalties, costs, fees and expenses (including legal fees
and disbursements) (collectively, “Damages”) which may result, directly or
indirectly, from Subscriber’s misrepresentations or misstatements contained
herein or breaches hereof relating to subparagraphs (i) through (iv) of this
Section.

    

    (vi)           Subscriber
understands and agrees that, notwithstanding anything to the contrary contained
in any document (including any side letters or similar agreements), if,
following Subscriber’s investment in the Company, it is discovered that the
investment is or has become a Prohibited Investment, such investment may
immediately be redeemed by the Company or otherwise be subject to the remedies
required by law, and Subscriber shall have no claim against any Indemnitee for
any form of Damages as a result of such forced redemption or other
action.

    

    
      
        
        

      

      
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    (vii)           Upon
the written request from the Company, Subscriber agrees to provide all
information to the Company to enable the Company to comply with all applicable
anti-money laundering statutes, rules, regulations and policies, including any
policies applicable to a portfolio investment held or proposed to be held by the
Company.  Subscriber understands and agrees that the Company may
release confidential information about Subscriber and, if applicable, any
Underlying Beneficial Owner(s) or Related Person(s) to any person, if the
Company, in its sole discretion, determines that such disclosure is necessary to
comply with applicable statutes, rules, regulations and policies.

    

    Section
3.         Representations
and Warranties of the Company.  The Company represents and
warrants to the Subscriber that:

    

    3.1           The
Company is a corporation duly organized, existing and in good standing under the
laws of the State of Florida and has the power to conduct the business which it
conducts and proposes to conduct.

    

    3.2           The
execution, delivery and performance of this Subscription Agreement by the
Company have been duly approved by its Board of Directors and all other actions
required to authorize and effect the offer and sale of the Units have been duly
taken and approved. Upon the acceptance by the Company of the subscription made
hereby, this Subscription Agreement will constitute a valid and binding
obligation of the Company enforceable against it in accordance with its
terms.

    

    
      Section
4.        Miscellaneous.

    

    

    4.1           Any
notice or other communication required, permitted or provided for hereunder
(each, a “Notice”) shall be effective as between the parties only if given in
writing and sent by (a) personal delivery, (b) registered or certified mail
(return receipt requested); or (c) internationally recognized express delivery
service, to the Company at 201 Holly Lane, Plantation,
Florida   33317, and to the Subscriber at his address indicated
on the signature page of this Subscription Agreement.  Notice shall be
deemed to have been duly given and received (i) if personally delivered, on the
date of such delivery, (ii) if mailed, on the date set forth on the return
receipt, or (iii) if delivered by express delivery, on the date of such delivery
(as evidenced by the receipt provided to the express delivery
service).  If Notice cannot be delivered because of a changed address
of which no Notice was given, or the refusal to accept delivery, the Notice
shall be deemed received on the date it is sent (as evidenced by the affidavit
of the sender).

    

    4.2           This
Subscription Agreement shall be binding upon and inure to the benefit of the
parties hereto and to their respective heirs, legal representatives, successors
and assigns.  This Subscription Agreement sets forth the entire
agreement and understanding between the parties as to the subject matter hereof
and merges and supersedes all prior discussions, agreements and understandings
of any and every nature among them.

    

    
      
        
        

      

      
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    4.3           Notwithstanding
the place where this Subscription Agreement may be executed by any of the
parties hereto, the Company and Subscriber hereby: (a) agree that all questions
concerning the construction, validity, enforcement and interpretation of this
Subscription Agreement shall be governed by and construed and enforced in
accordance with the internal laws of the State of Florida, without regard to the
principles of conflicts of law thereof, and  (b) all legal proceedings
concerning the interpretation, enforcement and defense of this Subscription
Agreement shall be commenced in the Courts of the State of Florida or the courts
of the United States of America, in each case located in Broward County,
Florida, and appellate courts from any thereof (the “Courts”), (c) irrevocably
submit to the exclusive jurisdiction of the Courts for the adjudication of any
dispute hereunder (including with respect to the enforcement of this
Subscription Agreement); (d) irrevocably waive and agree not to assert in any
suit, action or proceeding, any claim that it is not personally subject to the
jurisdiction of any of such Courts, or that such suit, action or proceeding is
improper; (e) irrevocably waive personal service of process and consents to
process being served in any such suit, action or proceeding by mailing a copy
thereof via registered or certified mail or overnight delivery (with evidence of
delivery) to the other at the address in effect for notices to it under this
Subscription Agreement and agrees that such service shall constitute good and
sufficient service of process and notice thereof (nothing contained herein shall
be deemed to limit in any way any right to serve process in any manner permitted
by law); and (f) irrevocably waive, to the fullest extent permitted by
applicable law, any and all right to trial by jury in any legal proceeding
arising out of or relating to this Subscription Agreement or the transactions
contemplated hereby.

    

    4.4           This
Subscription Agreement may be executed in counterparts.  Upon the
execution and delivery of this Subscription Agreement by the Subscriber, this
Subscription Agreement shall become a binding obligation of the Subscriber with
respect to the purchase of Units as herein provided; subject, however, to the
right hereby reserved to the Company to enter into the same agreements with
other subscribers and to add and/or to delete other persons as
subscribers.

    

    4.5           If
any provision of this Subscription Agreement is declared by a court of competent
jurisdiction to be in any way invalid, illegal or unenforceable, the balance of
this Subscription Agreement shall remain in effect, and if any provision is
inapplicable to any person or circumstance, it shall nevertheless remain
applicable to all other persons and circumstances.

    

    4.6           No
term or provision contained herein may be modified, amended or waived except by
written agreement or consent signed by the party or parties to be bound
thereby.  It is agreed that a waiver by either party of a breach of
any provision of this Subscription Agreement shall not operate, or be construed,
as a waiver of any subsequent breach by that same party.

    

    4.7           The
parties agree to execute and deliver all such further documents, agreements and
instruments and take such other and further action as may be necessary or
appropriate to carry out the purposes and intent of this Subscription
Agreement.

    

    4.8           All
references in this Subscription Agreement to the “Subscriber” shall include all
parties (other than the Company) who execute this Subscription
Agreement.  If Subscriber is a corporation, limited liability company,
partnership, trust or two or more individuals purchasing jointly, Subscriber
shall follow the specific instructions for the Certificate of Corporate, Limited
Liability Company, Partnership, Trust and Joint Purchases at Page 11
hereof.

     

    
      
        
        

      

      
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    4.9.           Subscriber
acknowledges that the subscription made hereby is not binding upon the Company
until the Company accepts it.  The Company has the right to accept or
reject this subscription in whole or in part in its sole and absolute
discretion.  If this subscription is rejected in whole, the Company
shall return the Purchase Price to Subscriber, without interest, and the Company
and Subscriber shall have no further obligation to each other by reason of this
Subscription Agreement or the subscription made hereby.  In the event
of a partial rejection of this subscription, a proportionate amount of the
Purchase Price will be returned to Subscriber, without interest.

     
 

    [Remainder
of Page Intentionally Blank, Signature Page Follows]

    

    
      
        
           

        

        
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    SIGNATURE PAGE FOR
INDIVIDUAL INVESTOR

    

    

    IN
WITNESS WHEREOF, this Subscription Agreement has been executed by Subscriber and
by the Company on the respective dates set forth below.

     

    
      
        	
                _____________________________

              	
                ______________________________

              
	
                Signature

              	
                Signature
      (If Units Purchased Jointly)

              
	 
      	 
      
	
                Name
      ________________________

              	
                Name
      _________________________

              
	
                      Please
      Print

              	
                      Please
      Print

              
	 
      	 
      
	
                Address
      ______________________

              	
                Address
      _______________________

              
	
                _____________________________

              	
                ______________________________

              
	 
      	 
      
	
                Telephone
      # ____________________

              	
                Telephone
      # ____________________

              
	 	 
	
                Fax
      #__________________________

              	
                Fax
      #__________________________

              
	 	 
	
                Email:_________________________

              	
                Email:_________________________

              
	 	 
	
                Social
      Security # ________________

              	
                Social
      Security __________________

              
	 	 
	
                Date:
      __________________________

              	
                Date:
      __________________________

              

      

    

     

    Amount of
Units Subscribed For: $______________________

    

    Form of
ownership of Units:     o
JTTEN     o
JTWROS    o JTTIC

    

    

     

    Subscription
Accepted:

     

    PATIO-BAHIA,
INC.

    

    

    By:      ______________________________

    Name:

    Title:

    Date:  ____________________

    

    
      
        
           

        

        
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    SIGNATURE
PAGE FOR PARTNERSHIP, CORPORATION,

    LIMITED
LIABILITY COMPANY OR TRUST

    

    IN
WITNESS WHEREOF, the undersigned has executed this Subscription Agreement on the
date set forth below.

    

    

    _________________________________________

    Name of
partnership, corporation, limited liability

    company
or trust

    

    By:
_____________________________________        Federal
Tax ID Number __________

     

    Name:
___________________________________

     

    Title:
____________________________________       State
of Organization ____________

     

    Address:__________________________________

     

    _________________________________________

     

    Telephone:________________________________

     

    Fax:______________________________________

     

    Email:____________________________________

     

    Date:
____________________________________

    

    Amount of
Units Subscribed For: $______________________

    

    

     

    

     

    Subscription
Accepted:

     

    PATIO-BAHIA,
INC.

    

    

    By:     ______________________________

    Name:

    Title:

    Date:  ____________________

    

    

    
      
        
           

        

        
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    SPECIAL
SUBSCRIPTION INSTRUCTIONS FOR CORPORATE, PARTNERSHIP, LIMITED LIABILITY COMPANY,
TRUST AND JOINT PURCHASERS

    

    If
Subscriber is a corporation, partnership, limited liability company, trust, or
other entity or joint purchaser, the following additional instructions must be
followed.  INFORMATION ADDITIONAL TO THAT REQUESTED BELOW MAY ALSO BE
REQUIRED BY THE COMPANY IN SOME CASES.

     

    1.           Certificate.  Subscriber
must date and sign the Certificate below, and, if requested by the Company,
Subscriber may also be required to provide an opinion of counsel to the same
effect as this Certificate or a copy of (a) the corporation’s articles of
incorporation, bylaws and authorizing resolution, (b) the partnership agreement,
(c) the limited liability company’s certificate of formation or articles of
organization, as applicable, and limited liability company agreement, operating
agreement or similar agreement governing the rights and obligations of the
members of the limited liability company, or (d) the trust agreement, as
applicable.

     

    2.           Subscription
Agreement.

     

    (a)           Corporations.  An
authorized officer of the corporation must date, sign, and complete the
Subscription Agreement with information concerning the
corporation.  The officer should print the name of the corporation
above his signature, and print his name and office below his
signature.

     

    (b)       Partnerships.  An
authorized partner must date, sign, and complete the Subscription Agreement with
information concerning the partnership.  The partner should print the
name of the partnership above his signature, and print his name and the words
“general partner” below his signature.

     

    (c)           Limited Liability
Companies.  An authorized member or manager must date, sign,
and complete the Subscription Agreement with information concerning the limited
liability company.  The member or manager should print the name of the
limited liability company above his signature, and print his name and the word
“member” or “manager” below his signature.

     

    (d)           Trusts.  In
the case of a trust, the authorized trustee should date, sign, and complete the
Subscription Agreement with information concerning the trust.  The
trustee should print the name of the trust above his signature, and print his
name and the word “trustee” below his signature.  In addition, an
authorized trustee should also provide information requested in the Subscription
Agreement as it pertains to him as an individual.

     

    (e)           Joint
Ownership.  In all cases, each individual must date, sign, and
complete the Subscription Agreement.  Joint investors must state if
they are purchasing the Shares as joint tenants with the right of survivorship,
tenants in common, or community property, and each must execute the Subscription
Agreement signature page.

     

    

    
      
        
           

        

        
          12

          
            

          

        

        
           

        

      

    

    

    CERTIFICATE
FOR CORPORATE, PARTNERSHIP,

    LIMITED
LIABILITY COMPANY, TRUST, AND JOINT SUBSCRIBERS

     

    If
Subscriber is a corporation, partnership, limited liability company, trust,
joint purchaser, or other entity, an authorized officer, partner, member,
manager or trustee must complete, date and sign this Certificate.

     

    CERTIFICATE

     

    I hereby
certify that:

     

    1.           Subscriber
has been duly formed is validly and existing and has full power and authority to
purchase the Units and make an investment in
Patio-Bahia,  Inc.

     

     

    2.          The
Subscription Agreement has been duly and validly authorized, executed, and
delivered by Subscriber and constitutes the valid, binding, and enforceable
obligation of Subscriber.

     

    
      	
              Date: ___________

            	
              ____________________________________              
      

            

    

    Name of
corporation, partnership, limited liability

    company,
trust or joint purchases (please print)

     

    

    ____________________________________

    Signature
and title of authorized officer, partner,

    member,
manager, trustee, or joint purchaser

    

    
      
        
           

        

        
          13

          
            

          

        

        
           

        

      

    

    

    PROSPECTIVE
PARTICIPANT QUESTIONNAIRE

    

    _______________________

    

           **ALL
INFORMATION WILL BE HELD IN STRICTEST CONFIDENCE**

    

    INSTRUCTIONS
TO THE PROSPECTIVE INVESTOR:
This Questionnaire is being sent to each prospective participant that has
indicated an interest in purchasing Units of Patio-Bahia, Inc. (the
“Company”). The purpose of this Questionnaire is to assure the Company that each
prospective subscriber to its Units (“Subscriber”) will meet the standards
imposed by Regulation D, promulgated under the Securities Act of 1933, as
amended, the National Securities Markets Improvement Act of 1966, similar
exemptions provided by the applicable state securities laws and regulations
promulgated there under (the “Securities Laws”), since the Units will not be
registered. Each subscriber must complete the following
Questionnaire.

    

    The
information provided will be used to determine whether the prospective
purchaser’s Subscription Agreement to purchase Units will be accepted by the
Company in light of the requirements of Securities Laws. In subscribing for
Units and furnishing the information requested in this Questionnaire, the
Subscriber understands that the Company will rely on the information provided
herein for purposes of such determinations. The Subscriber understands that a
false representation may constitute a violation of law and that any person who
suffers damage as a result of a false representation may have a claim against
the Subscriber for damages.

    

    The
information provided herein by Subscribers will be kept confidential. However,
by signing this Questionnaire, the Subscriber agrees that the Company may
present the completed document to such parties as it deems appropriate if called
upon to establish the availability under any Securities Laws.

    

    In
accordance with the foregoing, the following representations are hereby made and
the following information is furnished by the undersigned
subscriber.

    

    PART A. GENERAL
INFORMATION

    

    NAME(S)
OF PROSPECTIVE SUBSCRIBER: ________________________________

                                                                                  
________________________________

    

    Social
Security Number or Tax I.D.
No.:____________________________________

    

     

    
      
        
           

        

        
          14

          
            

          

        

        
           

        

      

    

     

    
      PART B. INVESTOR
INFORMATION

      

      
        	
                 
      

              	
                1.

              	
                If
      the prospective Participant is an
individual:

              

      

      

      
        	
                 
      

              	
                (a)

              	
                Do
      you have an individual net worth, or joint net worth with your spouse
      (including home, automobiles and furnishings) in excess of
      $1,000,000?

              

      

      

      Yes
_______    No _______

      

      
        	
                (b)   
      

              	
                (i)

              	
                Did
      you have individual income in excess of $200,000 in each
      of the two most recent years or joint income with your spouse in excess of
      $300,000 for each of those
years?

              

      

      

      Yes
_______    No _______

      

      
        	
              	
                (ii) 

              	
                Do
      you anticipate for this tax year having individual income in excess of
      $200,000, or joint income with your spouse in excess of
      $300,000?

              

      

      

                 Yes
_______    No _______

      

      

      
        	
                 
      

              	
                2.

              	
                If
      the prospective Participant is a corporation, partnership, limited
      liability company, trust or other
entity:

              

      

      

      
        	
                 
      

              	
                (a)

              	
                Is
      the entity an accredited investor within the meaning of Regulation D of
      the Securities Act?

              

      

      

                 Yes
_______    No _______

      

      
        	
                 
      

              	
                (b)

              	
                Does
      the entity, by reason of its own, or of its management’s business or
      financial experience, have the capacity to protect its own interests in
      connection with an investment in the
Units?

              

      

      

                 Yes
_______    No _______

      

      
        	
              	
                (c) 

              	
                Does
      the entity have substantial experience in evaluating and investing in
      private placement transactions of securities in entities similar to the
      Company so that it is capable of evaluating the merits and risks of its
      investment in the Units?

              

      

      

                 Yes
_______    No _______

      

      
        
           

        

        
          15

          
            

          

        

        
           

        

      

      
        	
                 
      

              	
                3.

              	
                Have
      you purchased the Units for investment purposes and not with a view toward
      resale or distribution, and will, prior to any sale or attempted sale of
      any of the Units, comply with all requirements of the state and federal
      securities acts?

              

      

      

      Yes
_______    No _______

      

      
        	
                 
      

              	
                4.

              	
                Do
      you understand that Units cannot be readily sold because there will be no
      public market for them, that the Units are not suitable for any investor
      unless he or she has available personal liquid assets to provide for
      financial contingencies and that a condition to any sale would be the
      registration of such interests or the availability of an exception to such
      registration requirements?

              

      

      

                 Yes
_______    No _______

      

      
        	
                 
      

              	
                5.

              	
                Is
      your principal investment objective to secure an economic profit,
      determined without regard to any tax benefits which you may
      receive?

              

      

      

                 Yes
_______    No _______

      

      
        	
                 
      

              	
                6.

              	
                Do
      you understand that the Units encompass substantial
  risks?

              

      

      

                 Yes
_______    No _______

       

      
        	
                 
      

              	
                7.

              	
                Do
      you acknowledge that no independent due diligence has been undertaken
      except for that performed by yourself and your purchaser representative,
      if applicable?

              

      

      

      Yes
_______    No _______

       

      
        	
                 
      

              	
                8.

              	
                Do
      you understand that no attorney-client relationship has arisen in
      connection with this offering between any prospective Subscriber and
      counsel to the Company?

              

      

      

                 Yes
_______    No _______

       

      
        
          	
                	
                  9. 

                	
                  (a) 
      Do you plan to use a “Purchaser Representative” to assist you in analyzing
      this investment?

                

        

      

      

      Yes
_______    No _______

      

      If “Yes”, please provide Purchaser
Representative’s name and address:

      

      __________________________________________________________________

      __________________________________________________________________

      

      
        
           

        

        
          16

          
            

          

        

        
           

        

      

      
        	
                 
      

              	
                b)

              	
                If
      “No”, do you have such knowledge and experience in financial and business
      matters that you are capable of evaluating the merits and risks of
      this investment?

              

      

      

      

      Yes
_______    No _______

      

      I
REPRESENT THAT THE ABOVE INFORMATION IS CORRECT. I HEREBY AUTHORIZE THE COMPANY
TO VERIFY SUCH INFORMATION WITH MY ATTORNEY, BANKER, ACCOUNTANT OR OTHER
ADVISORS(S).

      

      
        	
              	
                Date:___________________   

              	
                Subscriber’s
      
                  Signature(s)
      _____________________

                                   
           _____________________

                

              

      

       

      

    

     

     

    17ex10-2.htm

    Exhibit 10.2

     

    
      JEANNOT’S
FUNRNISHINGS OF FLORIDA, INC.

      

      2007
STOCK OPTION AND STOCK AWARD PLAN

      

      Effective
as of June 13, 2007

      

      
        	
                A.

              	
                PURPOSE
      OF PLAN; EFFECTIVE DATE; DEFINITIONS; SHARES AND OPTIONS AVAILABLE UNDER
      PLAN.

              

      

      

      1.           PURPOSE.
The purpose of this Plan is to advance the interests of JEANNOT’SFURNISHINGS OF
FLORIDA, INC, a Florida corporation (the "Company"), by providing an incentive
to attract, retain and motivate highly qualified and competent persons who are
important to the Company and upon whose efforts and judgment the success of the
Company and its Subsidiaries is largely dependent, including key employees,
consultants, independent contractors, Officers and Directors, by authorizing the
grant of either (a) options to purchase shares of Common Stock of the Company or
(b) shares of Common Stock of the Company, in each case to persons who are
eligible to participate hereunder, thereby encouraging or facilitating stock
ownership in the Company by such persons, all upon and subject to the terms and
conditions of this Plan.

      

      2.           EFFECTIVE
DATE. This Plan became effective upon its adoption by the Board of Directors of
the Company.

      

      3.           DEFINITIONS.
As used herein, the following terms shall have the meanings
indicated:

      

      (a)           "Board"
shall mean the Board of Directors of the Company.

      

      (b)           "Cause"
shall mean any of the following:

      

      (i)           a
determination by the Company that there has been a willful, reckless or grossly
negligent failure by the Grantee to perform his or her duties as an employee of
the Company;

      

      (ii)           a
determination by the Company that there has been a willful breach by the Grantee
of any of the material terms or provisions of any employment, consulting or
independent contractor agreement between such Grantee and the
Company;

      

      (iii)           any
conduct by the Grantee that either results in his or her conviction of a felony
under the laws of the United States of America or any state thereof, or of an
equivalent crime under the laws of any other jurisdiction;

      

      (iv)           a
determination by the Company that the Grantee has committed an act or acts
involving fraud, embezzlement, misappropriation, theft, breach of fiduciary duty
or material dishonesty against the Company, its properties or
personnel;

      

      
(v)           any
act by the Grantee that the Company determines to be in willful or wanton
disregard of the Company's best interests, or which results, or is intended to
result, directly or indirectly, in improper gain or personal enrichment of the
Grantee at the expense of the Company;

      

      (vi)           a
determination by the Company that there has been a willful, reckless or grossly
negligent failure by the Grantee to comply with any rules, regulations, policies
or procedures of the Company, or that the Grantee has engaged in any act,
behavior or conduct demonstrating a deliberate and material violation or
disregard of standards of behavior that the Company has a right to expect of its
employees; or

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      (vii)           if
the Grantee, while employed or otherwise engaged by the Company and for two
years thereafter, violates a confidentiality and/or noncompete agreement with
the Company, or fails to safeguard, divulges, communicates, uses to the
detriment of the Company or for the benefit of any person or persons, or misuses
in any way, any Confidential Information; provided, however, that, if the
Grantee has entered into a written employment agreement with the Company which
remains effective and which expressly provides for a termination of such
Grantee's employment for "cause," the term "Cause" as used herein shall have the
meaning as set forth in the Grantee's employment agreement in lieu of the
definition of "Cause" set forth in this Section A.3.

      

      (c)           "Change
of Control" shall mean the acquisition by any person or group (as that term is
defined in the Securities Exchange Act, and the rules promulgated pursuant to
that act) in a single transaction or a series of transactions of 30% or more in
voting power of the outstanding stock of the Company and a change of the
composition of the Board of Directors so that, within two years after the
acquisition took place, a majority of the members of the Board of Directors of
the Company, or of any corporation with which the Company may be consolidated or
merged, are persons who were not Directors or Officers of the Company or one of
its Subsidiaries immediately prior to (i) the acquisition, or (ii) the first of
the series of transactions that resulted in the acquisition, of 30% or more in
voting power of the outstanding stock of the Company.

      

      (d)           "Code"
shall mean the Internal Revenue Code of 1986, as amended.

      

      (e)           "Committee"
shall mean the stock option or compensation committee appointed by the Board or,
if not appointed, the Board.

      

      (f)           "Common
Stock" shall mean the Company's Common Stock, par value $.001 per
share.

      

      (g)           "Confidential
Information" shall mean any and all information pertaining to the Company's
financial condition, clients, customers, prospects, sources of prospects,
customer lists, trademarks, trade names, service marks, service names,
"know-how," trade secrets, products, services, details of client or consulting
contracts, management agreements, pricing policies, operational methods, site
selection, results of operations, costs and 
methods of doing business, owners and
ownership structure, marketing practices, marketing plans or strategies, product
development techniques or plans, procurement and sales activities, promotion and
pricing techniques, credit and financial data concerning customers and business
acquisition plans, that is not generally available to the public.

      

      (h)           "Director"
shall mean a member of the Board.

      

      (i)           "Effective
Date of Grant" means the date on which the Board is deemed to have made the
grant of Options or Shares.

      

      (j)           "Employee"
shall mean any person, including Officers and Directors, who are employed by the
Company or any parent or Subsidiary of the Company within the meaning of Code
Section 3401(c) or the regulations promulgated thereunder.

      

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      (k)           "Fair
Market Value" of a Share on any date of reference shall be the Closing Price of
a share of Common Stock on the business day immediately preceding such date,
unless the Committee in its sole discretion shall determine otherwise in a fair
and uniform manner. For this purpose, the "Closing Price" of the Common Stock on
any business day shall be (i) if the Common Stock is listed or admitted for
trading on any United States national securities exchange, or if actual
transactions are otherwise reported on a consolidated transaction reporting
system, the last reported sale price of the Common Stock on such exchange or
reporting system, as reported in any newspaper of general circulation, (ii) if
the Common Stock is quoted on The NASDAQ Stock Market ("Nasdaq"), or any similar
system of automated dissemination of quotations of securities prices in common
use, the closing sales price, or if not available, the mean between the closing
high bid and low asked quotations for such day of the Common Stock on such
system, or (iii) if neither clause (i) nor (ii) is applicable, the mean between
the high bid and low asked quotations for the Common Stock as reported by the
National Quotation Bureau, Incorporated if at least two securities dealers have
inserted both bid and asked quotations for the Common Stock on at least five of
the 10 preceding days. If the information set forth in clauses (i) through (iii)
above is unavailable or inapplicable to the Company (E.G., if the Company's
Common Stock is not then publicly traded or quoted), then the "Fair Market
Value" of a Share shall be the fair market value (I.E., the price at which a
willing seller would sell a Share to a willing buyer when neither is acting
under compulsion and when both have reasonable knowledge of all relevant facts)
of a share of the Common Stock on the business day immediately preceding such
date as the Committee in its sole and absolute discretion shall determine in a
fair and uniform manner.

      

      (l)           "Family
Member" shall mean any child, stepchild, grandchild, parent, stepparent,
grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law,
father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law,
including adoptive relationships, any person sharing the Grantee's household
(other than a tenant of Grantee), a trust in which these persons have more than
50% of the beneficial interest, a foundation in which these persons (or the
Grantee) control the management of assets, and any other entity in which these
persons (or the Grantee) own more than 50% of the voting interests.

      

      (m)           "Grantee"
shall mean a person to whom an Option or Shares are granted under this Plan, or
any person who succeeds to the rights of such person under this Plan by reason
of the death of such person.

      

      
(n)           "Incentive
Stock Option" shall mean an incentive stock option as defined in Section 422 of
the Code.

      

      (o)           "Non-Employee
Directors" shall have the meaning set forth in Rule 16b-3(b)(3)(i) under the
Securities Exchange Act.

      

      (p)           "Non-Statutory
Stock Option" or "Nonqualified Stock Option" shall mean an Option which is not
an Incentive Stock Option.

      

      (q)           "Officer"
shall mean the Company's chairman, president, principal financial officer,
principal accounting officer (or, if there is no such accounting officer, the
controller), any vice president of the Company in charge of a principal business
unit, division or function (such as sales, administration or finance), any other
officer who performs a policy-making function, or any other person who performs
similar policy-making functions for the Company. Officers of Subsidiaries shall
be deemed Officers of the Company if they perform such policy-making functions
for the Company. As used in this paragraph, the phrase "policy-making function"
does not include policy-making functions that are not significant. Unless
specified otherwise in a resolution by the Board, an "executive officer"
pursuant to Item 401(b) of Regulation S-K (17 C.F.R. "229.401(b)) shall be only
such a person designated as an "Officer" pursuant to the foregoing provisions of
this paragraph.

      

      (r)           "Option"
(when capitalized) shall mean any stock option granted under this
Plan.

      

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      (s)           "Plan"
shall mean this 2007 Stock Option and Stock Award Plan of the Company, which
Plan shall be effective upon approval by the Board, subject to approval within
12 months of the date thereof by the shareholders of the Company.

      

      (t)           "Securities
Act" shall mean the Securities Act of 1933, as amended.

      

      (u)           "Securities
Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended.

      

      (v)           "Share"
or "Shares" shall mean a share or shares, as the case may be, of the Common
Stock, as adjusted in accordance with Section B.7 of this Plan.

      

      (w)           "Subsidiary"
shall mean any corporation (other than the Company) in any unbroken chain of
corporations beginning with the Company if, at the time of the granting of the
Option, each of the corporations other than the last corporation in the unbroken
chain owns stock possessing 50% or more of the total combined voting power of
all classes of stock in one of the other corporations in such
chain.

      

      (x)           "10%
Shareholder" shall mean any person owning directly or indirectly (through
attribution under Section 424(d) of the Code) at the Effective Date of Grant,
capital stock possessing more than 10% of the total combined voting power of all
classes of the capital stock of the Company (or a Subsidiary) at the Effective
Date of Grant.

      

      
4.           SHARES
AND OPTIONS AVAILABLE UNDER PLAN. Subject to adjustment in accordance with
Section B.7 hereof, the Company may grant to Grantees from time to time (a)
Options to purchase Shares of the Company's Common Stock or (b) Shares of the
Company's Common Stock, up to an aggregate of Ten Million (10,000,000) Shares
from the authorized but unissued Shares of the Company.

      

      B.           PROVISIONS
RELATING TO GRANT OF OPTIONS.

      

      1.           LIMITATIONS.
An Option granted hereunder shall be either an Incentive Stock Option or a
Non-Statutory Stock Option as determined by the Committee at the time of grant
of such Option and shall clearly state whether it is an Incentive Stock Option
or Non-Statutory Stock Option. All Incentive Stock Options shall be granted
within 10 years from the effective date of this Plan. An Incentive Stock Option
shall not be granted to any 10% Shareholder unless (a) the exercise price of
such Option is at least 110% of the Fair Market Value of the Shares subject to
such Option on the Effective Date of Grant and (b) such Option by its terms is
not exercisable after the expiration of five years from the Effective Date of
Grant. Options otherwise qualifying as Incentive Stock Options hereunder will
not be treated as Incentive Stock Options to the extent that the aggregate Fair
Market Value (determined at the time the Option is granted) of the Shares, with
respect to which Options meeting the requirements of Code Section 422(b) are
exercisable for the first time by any individual during any calendar year (under
all stock option or similar plans of the Company and any Subsidiary), exceeds
$100,000.

      

      2.           CONDITIONS
FOR GRANT OF OPTIONS.

      

      (a)           Each
Option shall be evidenced by an Option agreement that may contain any term
deemed necessary or desirable by the Committee, provided such terms are not
inconsistent with this Plan or any applicable law. Grantees shall be those
persons selected by the Committee from the class of all Employees of the Company
or its Subsidiaries, including Employee Directors and Officers who are regular
or former regular employees of the Company, Directors who are not regular
employees of the Company, as well as consultants to the Company; provided,
however, that Incentive Stock Options may only be granted to Employees who
satisfy Section A.3(j) of the Plan. Any person who files with the Committee, in
a form satisfactory to the Committee, a written waiver of eligibility to receive
any Option under this Plan shall not be eligible to receive any Option under
this Plan for the duration of such waiver.

      

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      (b)           In
granting Options, the Committee shall take into consideration the contribution
the person has made, or is expected to make, to the success of the Company or
its Subsidiaries and such other factors as the Committee shall determine. The
Committee shall also have the authority to consult with and receive
recommendations from Officers and other personnel of the Company and its
Subsidiaries with regard to these matters. The Committee may from time to time
in granting Options under this Plan prescribe such terms and conditions
concerning such Options as it deems appropriate, including, without limitation,
(i) the exercise price or prices of the Option or any installments thereof, (ii)
prescribing the date or dates on which the Option becomes and/or 
remains exercisable, (iii) providing
that the Option vests or becomes exercisable in installments over a period of
time, and/or upon the attainment of certain stated standards, specifications or
goals, (iv) relating an Option to the continued employment of the Grantee for a
specified period of time, or (v) conditions or termination events with respect
to the exercisability of any Option, provided that such terms and conditions are
not more favorable to a Grantee than those expressly permitted
herein.

      

      3.           EXERCISE
PRICE. The exercise price per Share of any Option shall be any price determined
by the Committee but shall not be less than the par value per Share; provided,
however, that in no event shall the exercise price per Share of any Incentive
Stock Option be less than the Fair Market Value of the Shares underlying such
Option on the date such Option is granted and, in the case of an Incentive Stock
Option granted to a 10% Shareholder, the per Share exercise price will not be
less than 110% of the Fair Market Value in accordance with Section B.1 of this
Plan. Re-granted Options, or Options that are canceled and then re-granted
covering such canceled Options, will, for purposes of this Section B.3, be
deemed to have been granted on the date of the re-granting.

      

      4.           EXERCISE
OF OPTIONS.

      

      (a)           An
Option shall be deemed exercised when (i) the Company has received written
notice of such exercise in accordance with the terms of the Option, (ii) full
payment of the aggregate option price of the Shares as to which the Option is
exercised has been made, (iii) the Grantee has agreed to be bound by the terms,
provisions and conditions of any applicable shareholders' agreement or any other
agreement or condition imposed by the Committee in connection with the grant of
the Option, and (iv) arrangements that are satisfactory to the Committee, in its
sole discretion, have been made for the Grantee's payment to the Company of the
amount that is necessary for the Company or the Subsidiary employing the Grantee
to withhold in accordance with applicable federal or state tax withholding
requirements. Unless further limited by the Committee in any Option, the
exercise price of any Shares purchased pursuant to the exercise of such Option
shall be paid in cash, by certified or official bank check, by money order, with
Shares or by a combination of the above; provided, however, that the Committee,
in its sole discretion, may accept a personal check in full or partial payment
of any Shares. If the exercise price is paid in whole or in part with Shares,
the value of the Shares surrendered shall be their Fair Market Value on the date
the Option is exercised.

      

      (b)           No
Grantee shall be deemed to be a holder of any Shares subject to an Option unless
and until a stock certificate or certificates for such Shares are issued to such
person(s) under the terms of this Plan. No adjustment shall be made for
dividends (ordinary or extraordinary, whether in cash, securities or other
property) or distributions or other rights for which the record date is prior to
the date such stock certificate is issued, except as expressly provided in
Section B.7 hereof.

      

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      5.           EXERCISABILITY
OF OPTIONS. Any Option shall become exercisable in such amounts, at such
intervals, upon such events or occurrences and upon such other terms and
conditions as shall be provided in an individual Option agreement evidencing
such Option, except as otherwise provided in Section B.2 or this Section
B.5.

      

      (a)           The
expiration date(s) of an Option shall be determined by the Committee at the time
of grant, but in no event shall an Option be exercisable after the expiration of
10 years from the date of grant of the Option.

      

      
(b)           Unless
otherwise expressly provided in any Option as approved by the Committee,
notwithstanding the exercise schedule set forth in any Option, each outstanding
Option, may, in the sole discretion of the Committee, become fully exercisable
upon the date of the occurrence of any Change of Control, but, unless otherwise
expressly provided in any Option, no earlier than six months after the date of
grant, and if and only if Grantee is in the employ of the Company on such
date.

      

      (c)           The
Committee may in its sole discretion accelerate the date on which any Option may
be exercised and may accelerate the vesting of any Shares subject to any Option
or previously acquired by the exercise of any Option.

      

      6.           TERMINATION
OF OPTION PERIOD.

      

      (a)           Unless
otherwise expressly provided in any Option, the unexercised portion of any
Option shall automatically and without notice immediately terminate and become
forfeited, null and void at the time of the earliest to occur of the
following:

      

      (i)           two
months after the date on which the Grantee's employment is terminated for any
reason OTHER THAN by reason of (A) Cause, (B) the termination of the Grantee's
employment with the Company by such Grantee following less than 30 days' prior
written notice to the Company of such termination (an "Improper Termination"),
(C) a mental or physical disability (within the meaning of Section 22(e) of the
Code) as determined by a medical doctor satisfactory to the Committee, or (D)
death;

      

      (ii)           immediately
upon (A) the termination by the Company of the Grantee's employment or
engagement for Cause, or (B) an Improper Termination;

      

      (iii)           one
year after the date on which the Grantee's employment is terminated by reason of
a mental or physical disability (within the meaning of Code Section 22(e)) as
determined by a medical doctor satisfactory to the Committee; or

      

      (iv)           the
later of (A) one year after the date of termination of the Grantee's employment
by reason of death of the Employee, or (B) two months after the date on which
the Grantee shall die if such death shall occur during the one-year period
specified in Section B.6(a)(iii) hereof.

      

      (b)           The
Committee in its sole discretion may, by giving written notice (the
"Cancellation Notice"), cancel effective upon the date of the consummation of
any corporate transaction described in Section B.7(d) hereof, any Option that
remains unexercised on such date. The Cancellation Notice shall be given a
reasonable period of time prior to the proposed date of such cancellation and
may be given either before or after approval of such corporate
transaction.

      

      (c)           Upon
the Grantee's termination of employment as described in this Section, or
otherwise, any Option (or portion thereof) not previously vested or not yet
exercisable pursuant to Section B.5 of this Plan or the vesting schedule set
forth in the Option agreement evidencing the Option shall be immediately
cancelled.

      

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      

      7.           ADJUSTMENT
OF SHARES.

      

      (a)           If
at any time while this Plan is in effect or unexercised Options are outstanding,
there shall be any increase or decrease in the number of issued and outstanding
Shares through the declaration of a stock dividend or through any
recapitalization resulting in a stock split, combination or exchange of Shares
(other than any such exchange or issuance of Shares through which Shares are
issued to effect an acquisition of another business or entity or the Company's
purchase of Shares pursuant to a plan of repurchase approved by the Board or to
exercise a "call" purchase option including, without limitation, an Option
issued and/or exercised pursuant to the Plan), then and in such
event:

      

      (i)           appropriate
adjustment shall be made in the maximum number of Shares available for grant
under this Plan, so that the same percentage of the Company's issued and
outstanding Shares shall continue to be subject to being so
optioned;

      

      (ii)           appropriate
adjustment shall be made in the number of Shares and the exercise price per
Share thereof then subject to any outstanding Option, so that the same
percentage of the Company's issued and outstanding Shares shall remain subject
to purchase at the same aggregate exercise price; and

      

      (iii)           such
adjustments shall be made by the Committee, whose determination in that respect
shall be final, binding and conclusive.

      

      (b)           Subject
to the specific terms of any Option, the Committee may change the terms of
Options outstanding under this Plan, with respect to the Option price or the
number of Shares subject to the Options, or both, when, in the Committee's sole
discretion, such adjustments become appropriate by reason of a corporate
transaction described in Section B.7(d) hereof, or otherwise.

      

      (c)           Except
as otherwise expressly provided herein, the issuance by the Company of shares of
its capital stock of any class, or securities convertible  into or
exchangeable for shares of its capital stock of any class, either in connection
with a direct or underwritten sale or upon the exercise of rights or warrants to
subscribe therefor or purchase such Shares, or upon conversion of shares or
obligations of the Company convertible into such shares or other securities,
shall not affect, and no adjustment by reason thereof shall be made with respect
to the number of or exercise price of Shares then subject to outstanding Options
granted under this Plan.

      

      (d)           Without
limiting the generality of the foregoing, the existence of outstanding Options
granted under this Plan shall not affect in any manner the right or power of the
Company to make, authorize or consummate (i) any or all adjustments,
reclassifications, recapitalizations, reorganizations or other changes in the
Company's capital structure or its business; (ii) any merger or consolidation of
the Company or to which the Company is a party; (iii) any issuance by the
Company of debt securities, or preferred or preference stock that would rank
senior to or above the Shares subject to outstanding Options; (iv) any purchase
or issuance by the Company of Shares or other classes of common stock or common
equity securities; (v) the dissolution or liquidation of the Company; (vi) any
sale, transfer, encumbrance, pledge or assignment of all
 or any part of the assets or business
of the Company; or (vii) any other corporate act or proceeding, whether of a
similar character or otherwise.

      

      (e)           The
Grantee shall receive written notice within a reasonable time prior to the
consummation of such action advising the Grantee of any of the foregoing. The
Committee may, in the exercise of its sole discretion, in such instances declare
that any Option shall terminate as of a date fixed by the Board and give each
Grantee the right to exercise his or her Option.

      

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      8.           TRANSFERABILITY
OF OPTIONS. Unless otherwise authorized by the Board, no Option granted
hereunder shall be sold, pledged, assigned, hypothecated, disposed or otherwise
transferred by the Grantee other than by (a) will or the laws of descent and
distribution, (b) by gift to a Family Member, or (c) through a domestic
relations order in settlement of marital property rights. No Option shall be
exercisable during the Grantee's lifetime by any person other than the Grantee
or certain transferees expressly permitted under this Section.

      

      9.           LAPSE
OF OPTIONS. If any Option granted under this Plan shall terminate, expire, or be
canceled, forfeited or surrendered as to any Shares, the Shares relating to such
lapsed Option shall be available for issuance pursuant to new Options
subsequently granted under this Plan. Upon the grant of any Option hereunder,
the authorized and unissued Shares to which such Option relates shall be
reserved for issuance to permit exercise under this Plan.

      

      C.           PROVISIONS
RELATING TO GRANT OF SHARES.

      

      1.           GRANT
OF SHARES. Shares shall be granted on such terms as are established, from time
to time, by the Committee. The grant of Shares to a Grantee, and the terms
thereof, shall be communicated to a Grantee, in writing and shall set forth the
number of Shares; the Fair Market Value of the Shares granted; if applicable,
the compensation or other amounts otherwise due to the Grantee that will be
extinguished in exchange for such Shares; and such other terms as are
established by the Committee. Such notice shall also include the form of Notice
of Acceptance of such Shares.

      

      2.           ACCEPTANCE
OF SHARES A Grantee entitled to accept Shares in lieu of cash salary or other
compensation may do so, in whole or in part, by delivering to the Chief
Financial Officer of the Company, at the Company's principal executive office, a
written Notice of Acceptance and Subscription Agreement in the form as shall
have been approved by the Committee. The written notice shall specify the number
of Shares that are being accepted.

      

      3.           OWNERSHIP
OF SHARES. The Company shall cause to be issued a stock certificate representing
the Shares in the name of the Grantee upon final approval of the terms of the
grant by the Committee and, in the case of a Grantee accepting Shares in lieu of
cash salary or other compensation, upon the Company's receipt of the properly
completed Notice of Acceptance and Subscription Agreement. Subject to the
restrictions set forth in this Plan and the Notice of Acceptance and
Subscription Agreement, as applicable, the Grantee shall become the owner of the
Shares and shall be treated as a shareholder of the Company entitled to all of
the rights of any other holder of the Company's Common Stock.

      

      
4.           TRANSFERABILITY
OF SHARES. Shares may be accepted only by the individual to whom they were
offered or granted. Shares may not be transferred except in compliance with
applicable federal and state securities laws.

      

      5.           TERMINATION
OF RIGHT TO ACCEPT SHARES. Except as otherwise specifically provided in the
grant of Shares by the Board, the right to accept Shares shall terminate in the
event that, on the date 90 days after the Effective Date of Grant (or such
lesser period of time as is established by the Board and set forth in the grant
of Shares), the Shares evidenced by a particular grant have not theretofore been
accepted in full.

      

      6.           TAX
CONSEQUENCES. A Grantee who accepts Shares will generally be deemed to have
received ordinary income in an amount equal to the value of the Shares on the
date of such acceptance. In addition, the Company will be required to withhold
federal income and payroll taxes from the sale of the Shares or from other
amounts due to the Grantee, if the Grantees chooses not sell the Shares
immediately. Grantees may also be subject to other applicable tax consequences
associated with the acceptance of Shares. Each Grantee shall be advised in
writing to consult his or her own tax advisor prior to exercising any rights
under the Plan.

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      
        	
                D.

              	
                ISSUANCE
      OF SHARES; ADMINISTRATION OF PLAN; MISCELLANEOUS
    PROVISIONS.

              

      

      

      1.           ISSUANCE
OF SHARES. As a condition of any sale or issuance of Shares upon exercise of any
Option, the Committee may require such agreements or undertakings, if any, as
the Committee may deem necessary or advisable to assure compliance with any
applicable law or regulation including, but not limited to, the
following:

      

      (a)           a
representation and warranty by the Grantee to the Company, at the time any
Option is exercised, that he is acquiring the Shares to be issued to him for
investment and not with a view to, or for sale in connection with, the
distribution of any such Shares;

      

      (b)           an
agreement and undertaking to comply with all of the terms, restrictions and
provisions set forth in any then-applicable shareholders' agreement relating to
the Shares, including, without limitation, any restrictions on transferability,
any rights of first refusal, or any option of the Company to "call" or purchase
such Shares under then applicable agreements; or

      

      (c)           any
restrictive legend or legends, to be reflected on Share certificates, that are,
in the discretion of the Committee, necessary or appropriate to comply with the
provisions of any securities law or other restrictions applicable to the
issuance of the Shares.

      

      2.           ADMINISTRATION
OF THIS PLAN.

      

      (a)           This
Plan shall be administered by a Committee, which shall consist of not less than
two Non-Employee Directors; provided, however, if there are fewer than two
Non-Employee Directors, the Committee shall be composed of all of the members of
the Board. The Committee shall have all of the powers of the Board with respect
to this Plan. Any member of the Committee may be removed at any time, with or
without cause, by resolution of the Board and any 
vacancy occurring in the membership of
the Committee may be filled by appointment by the Board.

      

      (b)           Subject
to the provisions of this Plan, the Committee shall have the authority, in its
sole discretion, to: (i) grant Options or Shares, (ii) determine the exercise
price per Share at which Options may be exercised, (iii) determine the Grantees
to whom, and time or times at which, Options or Shares shall be granted, (iv)
determine the number of Shares to be represented by each Option, (v) determine
the terms, conditions and provisions of each Option or Share granted (which need
not be identical) and, with the consent of the holder thereof, modify or amend
each Option, (vi) defer (with the consent of the Grantee) or accelerate the
exercise date of any Option, and (vii) make all other determinations deemed
necessary or advisable for the administration of this Plan, including repricing,
canceling or regranting Options or Shares.

      

      (c)           The
Committee, from time to time, may adopt rules and regulations for carrying out
the purposes of this Plan. The Committee's determinations and its interpretation
and construction of any provision of this Plan shall be final, conclusive and
binding upon all Grantees and any holders of any Options or Shares granted under
this Plan.

      

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      (d)           Any
and all decisions or determinations of the Committee shall be made either (i) by
a majority vote of the members of the Committee at a meeting of the Committee or
(ii) without a meeting by the unanimous written approval of the members of the
Committee.

      

      (e)           No
member of the Committee, or any Officer or Director of the Company or its
Subsidiaries, shall be personally liable for any act or omission made in good
faith in connection with this Plan.

      

      3.           INTERPRETATION.

      

      (a)           This
Plan shall be administered and interpreted so that all Incentive Stock Options
granted under this Plan will qualify as Incentive Stock Options under Section
422 of the Code. If any provision of this Plan should be held invalid for the
granting of Incentive Stock Options or illegal for any reason, such
determination shall not affect the remaining provisions hereof, and this Plan
shall be construed and enforced as if such provision had never been included in
this Plan.

      

      (b)           This
Plan shall be governed by the laws of the State of Florida.

      

      (c)           Headings
contained in this Plan are for convenience only and shall in no manner be
construed as part of this Plan or affect the meaning or interpretation of any
part of this Plan.

      

      (d)           Any
reference to the masculine, feminine, or neuter gender shall be a reference to
such other gender as is appropriate.

      

      (e)           Time
shall be of the essence with respect to all time periods specified for the
giving of notices to the Company hereunder, as well as
 all time periods for the expiration
and termination of Options in accordance with Section B.6 hereof (or as
otherwise set forth in an Option agreement).

      

      4.           QUALIFICATIONS
UNDER ERISA. The Plan is not subject to any of the provisions of the Employee
Retirement Income Security Act of 1974, as amended.

      

      5.           AMENDMENT
AND DISCONTINUATION OF THIS PLAN. Either the Board or the Committee may from
time to time amend this Plan or any Option without the consent or approval of
the shareholders of the Company; provided, however, that, except to the extent
provided in Section B.6, no amendment or suspension of this Plan or any Option
issued hereunder shall substantially impair any Option previously granted to any
Grantee without the consent of such Grantee.

      

      6.           RIGHTS
OF EMPLOYMENT. The Options and Shares granted to Employees under this Plan shall
be in addition to regular salaries, pension, life insurance or other benefits
related to their employment with the Company or its Subsidiaries. Nothing in
this Plan or in any Option or other agreement entered into pursuant to this Plan
shall confer upon any Employee any right to continued employment by the Company
or a Subsidiary (or related salary and benefits), nor shall it impair any right
of the Company or a Subsidiary to terminate such employment.

      

      7.           TERMINATION
DATE. This Plan shall terminate 10 years after the date of adoption by the Board
of Directors; provided, however, that no such termination shall affect the
validity of Options granted hereunder in accordance with the terms of this Plan,
which Options expire after such termination date.

       

       

      10

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