Document:

exv10w1

 

Exhibit 10.1

CAPITAL AUTOMOTIVE GROUP

PHANTOM SHARE PURCHASE PROGRAM

Article 1. Introduction

     Capital Automotive REIT, a Maryland real estate investment trust (the
“Company”), has established the Capital Automotive Group Amended 1998 Equity
Incentive Plan (the “EIP”), which is hereby incorporated by reference. The EIP
permits the award of Phantom Shares and other forms of incentive compensation
to eligible employees. To further the objectives of the EIP, the Company
hereby establishes, effective May 7, 1999, the Capital Automotive Group Phantom
Share Purchase Program (the “Program”), as set forth in this document. The
Program provides a mechanism for eligible employees to defer the receipt of a
portion of their annual bonuses through mandatory and voluntary purchases of
Phantom Shares authorized under the EIP. Unless otherwise expressly provided
in this Program, terms used in this Program shall have the same meanings given
to those terms under the EIP. If there is any conflict or inconsistency
between the terms of the EIP and the Program, the terms of the EIP shall apply.

Article 2. Administration

     The Program shall be administered by the Compensation Committee. Except as
limited by law and subject to the provisions herein, the Compensation Committee
shall have full power and discretion to construe and interpret the Program and
any agreement or instrument entered into under the Program, and establish,
amend or waive rules and regulations for the Program’s administration.
Further, the Compensation Committee shall make all other determinations which
may be necessary or advisable for the administration of the Program. The
Compensation Committee may delegate its authority to the extent permitted by
law and consistent with the terms of the EIP. All determinations and decisions
made by the Compensation Committee pursuant to the provisions of the Program
shall be final, conclusive and binding on all persons, including the Company,
its shareholders, the Board, employees and their estates and beneficiaries.

Article 3. Eligibility and Participation

     A common law employee of the Company who is an executive officer or other
highly compensated employee designated by the Compensation Committee (“Eligible
Employee”) shall be eligible to participate in the Program. Participation in
the Program shall be limited to a select group of management or highly
compensated employees of the Company. An Eligible Employee shall become a
participant in the Program (“Participant”) on the date he files a Deferral
Election Form with the Committee under Section 4.2.

 

 

Article 4. Automatic and Elective Deferrals

4.1 Deferral of Bonus Compensation

   (a) 20% of any annual bonus payable to an Eligible Employee who is
an executive officer of the Company for services performed in each year
commencing on or after January 1, 1999 shall be automatically deferred
under the Program.

   (b) Subject to the terms and provisions of the Program, an Eligible
Employee who is an executive officer of the Company may elect to defer
the payment of up to an additional 30% of any annual bonus payable to him
for services performed in any year commencing on or after January 1,
1999; an Eligible Employee who is not an executive officer of the Company
may elect to defer the payment of up to 20% but not less than 5% of any
such annual bonus.

The Compensation Committee may, upon prior notice to the Participants,
change the percentages set forth in this Section 4.1 from time to time.

     4.2 Deferral Election Form. An Eligible Employee who elects a voluntary
deferral of bonus compensation pursuant to Section 4.1(b) for a given year
shall file with the Company, no later than December 15 of such year, a form
(“Deferral Election Form”) that shall specify the amount of deferral for that
year.

     4.3 Phantom Share Accounts. The Company shall establish an account
(“Deferral Account”) for each Participant. A Participant’s Deferral Account
shall be credited, as of the date the Executive Compensation Committee takes
action to approve the annual bonuses for such year, with a number of Phantom
Shares (rounded up to the next whole Share) equal to the bonus amount deferred
under Section 4.1 divided by 80% of the Fair Market Value on that date.

     For purposes of the Program, “Fair Market Value” means the fair market
value of a share of common stock of the Company determined as of a particular
date as follows:

   (a) if the Shares trade on a national securities exchange, the
closing sale price on that date;

   (b) if the Shares do not trade on any such exchange,
the closing sale price that the National Association of
Securities Dealers, Inc. Automated Quotation System (“Nasdaq”)
reports for such date;

- 2 -

 

   (c) if no such closing sale price information is available, the
average of the closing bid and asked prices that Nasdaq reports for such
date;

   (d) if there are no such closing bid and asked prices, the average
of the closing bid and asked prices as reported by any other commercial
service for such date; or

   (e) for any date that is not a trading day, the Fair Market Value of
a Share for such date shall be determined by using the closing sale price
or the average of the closing bid and asked prices, as appropriate, for
the immediately preceding trading day.

Article 5. Dividend Equivalents

     5.1 Payment of Dividend Equivalents. Subject to Section 5.2, each
Participant whose Deferral Account is credited with Phantom Shares shall
receive on the dividend payment date a payment in cash equal to the amount of
dividends which would be payable to him if such Phantom Shares were Shares held
by him on the dividend record date set by the Board. Unless and until the
Phantom Shares are paid to the Participant in accordance with Article 6, the
Participant shall be entitled to such dividend equivalents. Cash dividend
equivalents paid hereunder are considered additional compensation and shall be
subject to income tax in the year paid to the Participant.

     5.2 Deferral of Dividend Equivalents. A Participant may elect to defer
payment of any dividend equivalents payable with respect to Phantom Shares
credited to his Deferral Account with respect to bonus compensation deferred
for any particular year. The Company expects that deferral of dividend
equivalents under this Section 5.2 will defer any income tax until such amounts
are paid to the Participant. An election under this Section 5.2 shall be filed
with the Company on the Deferral Election Form no later than December 15 of the
year in which the services were performed. The Participant’s Deferral Account
shall be credited as of the date dividend equivalents otherwise would have been
payable with a number of Phantom Shares (rounded up to the next whole Share)
equal to the amount of such dividend equivalents divided by the Fair Market
Value on that date.

Article 6. Timing and Form of Payment.

     6.1 Delivery Date. Subject to Section 6.3:

   (a) Phantom Shares credited to a Participant’s Deferral Account
under Section 4.3 shall be paid to the Participant on the third
anniversary of the date such Phantom Shares were credited to the
Participant’s Phantom Share Account unless the Participant elects a later
payment date under Section 6.1(b) or 6.1(c).

- 3 -

 

   (b) A Participant may elect to defer payment of the Phantom Shares
credited to his Deferral Account under Section 4.3 to extend beyond the
third anniversary of the date such Phantom Shares were credited to the
Participant’s Phantom Share Account to either (i) a specified date not
earlier than the third anniversary of the date such Phantom Shares were
credited to his Deferral Account or (ii) the date the Participant
terminates employment with the Company or the first January 15 following
termination of employment. Such election shall be filed with the Company
on the Deferral Election Form no later than December 15 of the year
during which the services with respect to bonus compensation were
performed.

   (c) A Participant may make a one-time election after the
Participant’s initial Deferral Election to extend the deferred delivery
date he elected under Section 6.1(a) or 6.1(b), provided that the Company
receives such election at least one year and one day before the deferred
delivery date elected under Section 6.1(a) or 6.1(b).

   (d) Any Phantom Shares credited to the Participant’s Deferral
Account under Section 5.2 with respect to bonus compensation for a
particular year shall be paid to the Participant on the date the Phantom
Shares are paid in accordance with Section 6.1(a), 6.1(b) or 6.1(c).

     Notwithstanding anything herein to the contrary, the Compensation
Committee may defer delivery of any Shares in payment of a Participant’s
Deferral Account if the delivery of such Shares would constitute compensation
to the Participant that is not deductible by the Company due to the application
of Code Section 162(m); provided, that any such Shares deferred under
this sentence shall in any event be delivered to the Participant on or before
the January 15 of the first year in which the Participant is no longer a
“covered employee” of the Company (within the meaning of Code Section 162(m)).

     6.2 Form of Payment. Except as otherwise provided in Section 6.3, Phantom
Shares credited to a Participant’s Deferral Account shall be converted to
Shares (or, if mutually agreed to by the Participant and the Company, cash) at
the time of payment. Such Shares or cash shall be issued or paid as soon as
administratively feasible following the Participant’s request or termination.

     6.3 Termination of Employment. If a Participant terminates employment
with the Company voluntarily, involuntarily, by reason of death, disability, or
for any other reason:

   (a) all Phantom Shares credited to his Deferral Account under
Section 4.3 for three years or more prior to the Participant’s
termination date, and all Phantom Shares credited to his Deferral Account
under Section 5.2 with respect to such Phantom Shares, shall be paid as
soon as practicable following his employment termination date; provided,

- 4 -

 

that if the Participant elected a later delivery date under Section
6.1(b) or 6.1(c), the payment date shall be the date elected but in no
event later than January 15 following his termination of employment; and

   (b) all Phantom Shares credited to his Deferral Account under
Section 4.3 for less than three years prior to the Participant’s
termination date shall be paid in cash as soon as practicable following
his employment termination date in an amount equal to the lesser of (i)
the amount of annual bonus compensation deferred or (ii) the number of
such Phantom Shares multiplied by the Fair Market Value on the
Participant’s termination date; and all dividend equivalent Phantom
Shares credited to his Deferral Account under Section 5.2 shall be paid
in cash in an amount equal to the number of such dividend equivalent
Phantom Shares multiplied by the Fair Market Value on the Participant’s
termination date.

Payment made to a Participant in accordance with the foregoing shall be in full
satisfaction of all benefits owed to such Participant under the Program.

     6.4 Unforeseeable Emergency. If a Participant suffers an Unforeseeable
Emergency, he may request the Compensation Committee to accelerate payment of
all or any portion of his Deferral Account. “Unforeseeable Emergency” means an
unanticipated emergency that is caused by an event beyond the control of the
Participant and that would result in severe financial hardship to the
Participant if early withdrawal were not permitted. Any early withdrawal
approved by the Compensation Committee shall be limited to the amount necessary
to meet the emergency.

     6.5 Change in Control. Notwithstanding anything in the Program or EIP to
the contrary:

   (a) Upon a Change in Control, all Phantom Shares credited to a
Participant’s Deferral Account on and after such Change in Control shall
be deemed to have been credited for three years for purposes of Section
6.3; and

   (b) Payment of a Participant’s Deferral Account shall be made under
the foregoing sections of this Article 6 without regard to any Change in
Control (other than vesting in accordance with Section 6.5(a)).

Article 7. Beneficiary Designation

     Each Participant may, from time to time, name any beneficiary or
beneficiaries (who may be named contingently or successively) to whom any
payment under the Plan is to be paid in case of the death of the Participant.
Each such designation shall revoke all prior designations by

- 5 -

 

the same Participant, shall be in a form prescribed by the Compensation
Committee and shall be delivered to the Compensation Committee during the
Participant’s lifetime. If the Participant’s designated beneficiary
predeceases the Participant or no beneficiary has been designated, the
Participant’s beneficiary shall be deemed to be the Participant’s spouse or if
none, the Participant’s estate.

Article 8. Amendment, Modification and Termination

     The Compensation Committee may, at any time and from time to time, alter,
amend, modify or terminate the Program in whole or in part; provided that no
termination, amendment or modification of the Program shall adversely affect in
any material way any deferral previously made under the Program.

Article 9. Withholding

     9.1 Tax Withholding. The Company shall have the power and the right to
deduct or withhold, or require a Participant to remit to the Company, an amount
(either in cash or Shares) sufficient to satisfy federal, state, and local
taxes, domestic or foreign, required by law or regulation to be withheld with
respect to any taxable event arising as a result of this Program.

     9.2 Share Withholding. With respect to withholding required upon the
delivery of Shares or cash in payment of a Participant’s Deferral Account, or
upon any other taxable event arising hereunder, the Company may satisfy the
minimum withholding requirement for supplemental wages, in whole or in part, by
withholding Shares having a Fair Market Value (determined on the date the
Participant recognizes taxable income) equal to the withholding tax required to
be collected on the transaction. The Participant may elect, subject to the
approval of the Compensation Committee, to deliver the necessary funds to
satisfy the withholding obligation to the Company, in which case there will be
no reduction in the Shares otherwise distributable to the Participant.

Article 10. Successors

     All obligations of the Company under the Program or any Deferral Election
Form shall be binding on any successor to the Company, whether the existence of
such successor is the result of a direct or indirect purchase of all or
substantially all of the business and/or assets of the Company, or a merger,
consolidation, or otherwise.

- 6 -

 

Article 11. Miscellaneous

     11.1 Employment. Nothing in the Program shall interfere with or limit in
any way the right of the Company to terminate any Participant’s employment at
any time, or confer upon any Participant any right to continue in the employ of
the Company or to receive a bonus.

     11.2 Transferability. Phantom Shares credited to a Participant’s Deferral
Account may not be sold, assigned, transferred, pledged or otherwise
encumbered, other than by will or the laws of descent and distribution.

     11.3 Gender and Number. Except where otherwise indicated by the context,
any masculine term used herein also shall include the feminine; the plural
shall include the singular and the singular shall include the plural.

     11.4 Severability. In the event any provision of the Program shall be
held illegal or invalid for any reason, the illegality or invalidity shall not
affect the remaining parts of the Program, and the Program shall be construed
and enforced as if the illegal or invalid provision had not been included.

     11.5 Requirements of Law. The issuance of Shares under the Program shall
be subject to all applicable laws, rules, and regulations, and to such
approvals by any governmental agencies or national securities exchanges as may
be required.

     11.6 Securities Law Compliance. With respect to any individual who is, on
the relevant date, an officer, director or ten percent beneficial owner of any
class of the Company’s equity securities that is registered pursuant to Section
12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), all
as defined under Section 16 of the Exchange Act, transactions under the Program
are intended to comply with all applicable conditions of Rule 16b-3 under the
Exchange Act, or any successor rule. To the extent any provision of the
Program or action by the Committee fails to so comply, it shall be deemed null
and void, to the extent permitted by law and deemed advisable by the
Compensation Committee.

     11.7 Unfunded Status of the Program. The Program is intended to
constitute an “unfunded” plan for deferred compensation. With respect to any
amounts credited to a Participant’s Deferral Account and not yet paid or
delivered to the Participant, nothing contained herein shall give any rights
that are greater than those of a general creditor of the Company. The
Compensation Committee may authorize the creation of trusts or other
arrangements to meet the obligations created under the Plan consistent with the
foregoing.

     11.8 Governing Law. To the extent not preempted by federal law, the
Program shall be construed in accordance with and governed by the laws of the
State of Maryland.

- 7 -

 

FIRST AMENDMENT TO CAPITAL AUTOMOTIVE GROUP

PHANTOM SHARE PURCHASE PROGRAM

Article 6, Timing and Form of Payment; Section 6.3, Termination of
Employment.

Section 6.3 (b) of the Capital Automotive Group Phantom Share Purchase Program
is hereby deleted and the following substituted in lieu thereof:

“ (b) all Phantom Shares credited to his Deferral Account under Section
4.3 for less than three years prior to the Participant’s termination date
shall be paid in cash as soon as practicable following his employment
termination date in an amount equal to the lesser of (i) the amount of
annual bonus compensation deferred, or (ii) the number of such Phantom
Shares multiplied by the Fair Market Value on the Participant’s
termination date; and all dividend equivalent Phantom Shares credited to
his Deferral Account under Section 5.2 of the Program shall be converted
to Shares (or, if mutually agreed to by the Participant and the Company,
cash) and paid as soon as practicable following his employment
termination date.”

The Secretary of Capital Automotive REIT hereby certifies that the foregoing
First Amendment to the Capital Automotive Group Phantom Share Purchase Program
has been adopted and approved by the Executive Compensation Committee of the
Board of Trustees of Capital Automotive REIT on this 15th day of January 2003.

/s/ John M. Weaver

John M. Weaver, Secretaryexv10w2

 

Exhibit 10.2

	 	 	 	 	 
	

	 	o
	 	Optionee’s Copy
	

	 	o
	 	Company’s Copy

Capital Automotive Group

Second Amended and Restated 1998 Equity Incentive Plan

Stock Option Agreement

To                                       :

Capital Automotive REIT (the “Company”) has granted you one or more options
(the “Option(s)”) under the Capital Automotive Group Second Amended and
Restated 1998 Equity Incentive Plan (the “Plan”) to purchase certain common
shares of beneficial interest of the Company (the “Common Shares”), at
specified prices per share (the “Exercise Price”). Schedule I to this
Agreement (the “Agreement”) specifies the number of Common Shares, the Exercise
Price, the Date of Grant, the date the Option(s) will expire absent some
earlier expiration (the “Option Expiration Date”) , and whether a particular
option is intended to be an incentive stock option (“ISO”) within the meaning
of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”).
Option(s) designated as ISOs will be treated as such to the limits the Code
allows and as nonqualified stock options for any additional Common Shares.

The Option(s) are subject in all respects to the applicable provisions of the
Plan, a copy of which is attached. By signing this Agreement, you acknowledge
receiving the Plan. This Agreement incorporates the Plan by reference and
specifies other applicable terms and conditions. All terms not defined by this
Agreement have the meanings given in the Plan. The Plan’s Administrator may
adjust the number of Common Shares and the Exercise Price from time to time
under the Plan.

In addition to the terms, conditions, and restrictions set forth in the Plan,
the following terms, conditions, and restrictions apply to the Option(s):

	(1)	 	The schedule for exercising each Option is as follows, subject to Section
(3) below on expiration:

	a.	 	You may exercise the Option in accordance with the schedule
specified on Schedule I.
	 
	b.	 	The Administrator may, in its sole discretion, accelerate the
time at which you may exercise part or all of the Option.

	(2)	 	Subject to this Agreement and the Plan, you may exercise an Option only
by written notice (or through another approved medium, which could include
a voice or electronic messaging system) to the Secretary of the Company or
other designated notice recipient,

 

 

on or before the date that Option
expires, on the form or system then in effect for such
exercise. Each such notice must satisfy whatever procedures then apply
to that Option and must contain such representations as the Company
requires. You must, at the same time, pay or direct payment from among
the following:

	a.	 	an approved cashless exercise method, including directing the
Company to send the share certificates (or other indicia of
ownership) to be issued under an Option to a licensed broker
acceptable to the Company as your agent in exchange for the broker’s
tendering to the Company cash (or acceptable cash equivalents) equal
to the Exercise Price and any required tax withholdings;
	 
	b.	 	a cashier’s or certified check in the amount of the Exercise
Price and any required tax withholdings payable to the order of the
Company; or
	 
	c.	 	to the extent the Plan and the Administrator permit, by
Common Shares of beneficial interest of the Company with a Fair
Market Value equal to all or part of the Exercise Price (with any
balance paid by one of the foregoing methods); provided, however,
that you may not surrender Common Shares as payment unless you have
held such shares for more than six months before the surrender.

	(3)	 	The Option(s) will expire no later than the close of business on the
Option Expiration Date shown on Schedule I (the tenth anniversary of the
Date of Grant). Unless the Administrator determines otherwise at any time,
you will forfeit any unexercisable portions of each Option upon your
ceasing to be an employee for any reason (or, if earlier, upon the
Option’s expiration under the preceding sentence) and will forfeit any
exercisable but unexercised portions of each Option upon the first to
occur of (i) the Option’s expiration under the preceding sentence, (ii)
the 90th day after your resignation or other termination of employment, or
(iii) as provided in the Plan if you die or become disabled.
	 
	(4)	 	The Company may postpone issuing and delivering any Common Shares for so
long as the Company determines to be necessary or advisable to satisfy the
following:

	a.	 	completing or amending any registration or qualification of
the Common Shares or satisfying any exemption from registration
under any federal or state law, rule, or regulation;
	 
	b.	 	complying with any requests for representations under the
Plan;
	 
	c.	 	receiving proof satisfactory to the Company that a person
seeking to exercise the Option after your death is authorized and
entitled to exercise the Option; and
	 
	d.	 	complying with any federal, state, or local tax withholding
obligations.

Page 2 of 5

 

	(5)	 	The Administrator may delay or prohibit the exercise of an Option if
exercise would adversely affect the Company’s status under the Code as a
real estate investment trust or
would result in your owning Common Shares in violation of the
restrictions on ownership and transfer of Common Shares provided in the
Company’s Declaration of Trust.
	 
	(6)	 	If, at the time the Company should issue you Common Shares because of
your exercise of an Option, no current registration statement under the
Securities Act of 1933 (the “Securities Act”) covers such issuance, you
must, before the Company will issue such Common Shares to you:

	a.	 	represent to the Company, in form satisfactory to the
Company’s counsel, that you are acquiring the Common Shares for your
own account and not with a view to reselling or distributing the
Common Shares; and
	 
	b.	 	agree that you may not sell, transfer, or otherwise dispose
of the Common Shares issued to you under the Option unless:

	i.	 	a registration statement under the Securities Act
is effective at the time of disposition with respect to the
Common Shares sold, transferred, or otherwise disposed of; or
	 
	ii.	 	the Company has received an opinion of counsel or
other information and representations satisfactory to it to
the effect that registration under the Act is not required by
reason of Rule 144 under the Securities Act or otherwise.

	(7)	 	If you acquire Common Shares by exercising an Option that is an ISO, you
agree to promptly notify the Company if you dispose of those Common Shares
within one year after you acquired them or within two years after the
ISO’s Date of Grant.
	 
	(8)	 	If any change is made in the Common Shares without the Company’s
receiving consideration (through merger, consolidation, reorganization,
recapitalization, reincorporation, stock dividend, dividend in property
other than cash, stock split, liquidating dividend, combination of shares,
exchange of shares, change in corporate structure, or other transaction
not involving the Company’s receipt of consideration but excluding the
conversion of any convertible securities), the Board will adjust the
Option(s) as to the class(es) and number of shares and price per share of
securities subject to each Option, with the Board’s adjustments being
final, binding, and conclusive.
	 
	(9)	 	You may not exercise an Option if issuing the Common Shares would violate
any applicable federal or state securities laws or other laws or
regulations.
	 
	(10)	 	Nothing in this Agreement restricts the right of the Company or any of
its affiliates to terminate your employment at any time, with or without
cause. The termination of 

Page 3 of 5

 

employment, whether by the Company or any of
its affiliates or otherwise, and regardless
of the reason therefor, has the consequences provided for under the Plan
and any applicable employment or severance agreement.

	(11)	 	You understand and agree that you will not be deemed for any purpose to
be a shareholder of the Company with respect to any of the Common Shares
unless and until they have been issued to you after your exercise of an
Option and payment for the shares.
	 
	(12)	 	You understand and agree that the existence of the Option(s) will not
affect in any way the right or power of the Company or its shareholders to
make or authorize any or all adjustments, recapitalizations,
reorganizations, or other changes in the Company’s capital structure or
its business, or any merger or consolidation of the Company, or any
issuance of bonds, debentures, preferred or other shares, with preference
ahead of or convertible into, or otherwise affecting the Common Shares or
the rights thereof, or the dissolution or liquidation of the Company, or
any sale or transfer of all or any part of its assets or business, or any
other corporate act or proceeding, whether of a similar character or
otherwise.
	 
	(13)	 	The laws of the State of Maryland will govern all matters relating to
this Agreement, without regard to the principles of conflict of laws.
	 
	(14)	 	Any notice you give to the Company (including notice of exercise of all
or part of the Option) must be in writing and either hand-delivered or
mailed to the office of the Secretary of the Company (or to the Chair of
the Administrator if you are then serving as Secretary). If mailed, it
should be addressed to the Secretary (or the Chair of the Administrator)
of the Company at the Company’s then corporate headquarters, unless the
Company directs optionees to send notices to another department in the
Company or to a third party administrator or specifies another method of
transmitting notice. The Company or other administrator will address any
notices to you at your office or home address as reflected on the
Company’s personnel records. You and the Company may change the address
for notice by like notice to the other, and the Company can also change
the address for notice by general announcements to optionees.
	 
	(15)	 	Wherever a conflict may arise between the terms of this Agreement and the
terms of the Plan, the terms of the Plan will control.

Capital Automotive REIT

Page 4 of 5

 

	 	 	 
	Date:                                                          

	 	By:                                                          
	

	 	       Thomas D. Eckert, President & CEO

ACKNOWLEDGMENT

     I acknowledge receipt of a copy of the Plan, attached hereto. I represent
that I have read and am familiar with the Plan’s terms. By signing where
indicated on Schedule I, I accept each Option subject to all of the terms and
provisions of this Agreement and of the Plan under which it is granted, as the
Plan may be amended in accordance with its terms. I agree to accept as
binding, conclusive, and final all decisions or interpretations of the
Administrator concerning any questions arising under the Plan with respect to
each Option. I acknowledge that the Code’s rules may prevent some or all of an
Option from being treated as an ISO even if Schedule I shows it to be an ISO.
I further acknowledge that this Agreement replaces any prior forms applicable
to the Option(s) except to the extent, if at all, inconsistent with an Option’s
status as an ISO.

	 	 	 
	Date:                                                          

	 	                                                         
	

	 	       Signature of Optionee

No one may sell, transfer, or distribute the Option(s) or the securities
that may be purchased upon exercise of the Option(s) without an effective
registration statement relating thereto or an opinion of counsel
satisfactory to the Company or other information and representations
satisfactory to the Company that such registration is not required.

Page 5 of 5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}]]