Document:

exhibit10_77.htm

    EXHIBIT
10.77

    

    INDEMNIFICATION
AGREEMENT

    

    This
Indemnification Agreement (this “Agreement”) is made this ___ day of
_______________, 20__, between Reading International, Inc., a Nevada corporation
(the “Company”) and _______________, an individual (“Indemnitee”).

    

    RECITALS

    

    Whereas,
Indemnitee is either a member of the board of directors of the Company (“Board”
or “Board of Directors”) or an officer of the Company, or both, and in such
capacity or capacities is performing a valuable service for the
Company.

     

    Whereas,
the Corporation has adopted bylaws (“Bylaws”) providing for the indemnification
of the officers, directors, employees and agents of the Company.

     

    Whereas,
the Bylaws and Nevada Revised Statute Section 78.751 (the “State Statute”
specifically provide that they are not exclusive, and thereby contemplate that
agreements may be entered into between the Company and the members of its Board
of Directors and officers with respect to indemnification of such directors and
officers.

     

    Whereas,
Indemnitee is willing to serve, continue to serve and to take on additional
service for and on behalf of the Company on the condition that Indemnitee is
indemnified as set forth in this Agreement.

     

    Whereas,
it is intended that Indemnitee shall be paid promptly by the Company all amounts
necessary to effectuate in full the indemnity provided in this
Agreement.

     

    Whereas,
to induce Indemnitee continue to serve as a member of the Board of Directors of
the Company, or as an officer of the Company, or both, the Company has
determined and agreed to enter into this Agreement with Indemnitee.

     

    Now,
Therefore, in consideration of Indemnitee’s continued service as a director or
officer of the Company after the date hereof, and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
Company and Indemnitee hereby agree as follows:

     

    AGREEMENT

     

    

    1.           Indemnification
of
Indemnitee.                                                                  The
Company hereby agrees to hold harmless and indemnify Indemnitee to the fullest
extent authorized or permitted by the provisions of the State Statute, or any
successor statute or amendment thereof, or any other statutory provisions
authorizing or permitting such indemnification that is adopted after the date of
this Agreement.

     

    2.           Additional
Indemnity.  Subject only to the exclusions set forth in Section
3 of this Agreement, the Company hereby further agrees to hold harmless,
indemnify and defend Indemnitee:

     

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

      

    

    (a)           Against
any and all expenses (including fees for attorneys, accountants, private
investigators, court and transcript costs, fees and expenses of witnesses,
travel expenses and all other like disbursements or expenses reasonably incurred
by or for Indemnitee), judgments damages, fines, penalties, and amounts paid in
settlement (including all interest assessments and other charges paid or payable
in connection with or in respect of such judgment, fines, penalties, or amounts
paid in settlement) actually and reasonably incurred by or for Indemnitee in
connection with any threatened, pending or completed action, suit or proceeding,
whether civil, criminal, administrative or investigative (including an action by
or in the right of the Company)(a “Covered Action”) to which Indemnitee is made
a party as a result of the fact that at the time of the act or omission which is
the subject matter of such Covered Action the Indemnitee is or was a director,
officer, employee or agent of the Company, or is or was serving at the request
of the Company as a director, officer, employee or agent of another corporation,
partnership, joint venture, trust or other enterprise; and

     

    (b)           Otherwise
to the fullest extent as may be provided to Indemnitee by the Company under the
non-exclusivity provisions of Article VII of the Bylaws of the Company and the
State Statute.

     

    3.           Limitations
on Additional Indemnity.  No indemnity pursuant to Section 2 of
this Agreement shall be paid by the Company to the extent that:

     

    (a)           Payment
is actually made to Indemnitee under a valid and collectible insurance policy or
policies, except with respect to any excess beyond the amount of payment under
such insurance policy or policies.  Notwithstanding the availability
of such insurance policy or policies, Indemnitee also may claim indemnification
from the Company pursuant to this Agreement by assigning to the Company any
claims under such insurance policy or policies to the extent Indemnitee is paid
by the Company.

     

    (b)           Indemnitee
is indemnified by the Company otherwise than pursuant to this
Agreement.

     

    (c)           Judgment
is rendered against Indemnitee for the payment of dividends or other
distributions to stockholders of the Company in violation of the provisions of
Nevada Revised Statutes § 78.300, as amended.

     

    (d)           Judgment
is rendered against Indemnitee for an accounting of profits made from the
purchase or sale by Indemnitee of securities of the Company pursuant to the
provisions of Section 16(b) of the Securities Exchange Act of 1934, as amended,
or other similar provisions of any federal, state or local statutory
law.

     

    (e)           Indemnitee’s
conduct giving rise to the claim for indemnification is finally adjudged by a
court of competent jurisdiction to have been a breach of fiduciary duty which
involved intentional misconduct, fraud or a knowing violation of the
law.

     

    (f)           Except
as otherwise provided in this Agreement, in connection with all or any part of a
suit or other proceeding which is initiated or maintained by or on behalf of
Indemnitee, or any suit or other proceeding by Indemnitee against the Company or
its directors, officers, employees or other agents, unless (i) such
indemnification is expressly required to be made by Nevada law; (ii) the suit or
other proceeding was expressly authorized by the Board of Directors of the
Company in 

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

      

    

    writing
or (iii) such indemnification is provided by the Company, in its sole
discretion, pursuant to the powers vested in the Company under Nevada
law.

     

    4.           Continuation
of Indemnity.  All agreements and obligations of the Company
contained in this Agreement shall continue during the period Indemnitee is a
director, officer, employee or agent of the Company (or is or was serving at the
request of the Company as a director, officer, employee or agent of another
corporation, partnership, joint venture, trust or other enterprise) and shall
continue thereafter so long as Indemnitee shall be subject to any possible claim
or threatened, pending or completed action, suit or proceeding, whether civil,
criminal, administrative or investigative, by reason of the fact that Indemnitee
was a director or officer of the Company, or both, or serving in any other
capacity referred to in this Agreement.

     

    5.           Advancement
of Expenses.  In the event Indemnitee incurs costs or expenses
in connection with the defense of any civil, criminal, administrative or
investigative action, suit or proceeding (including any costs or expenses
incurred for any appeal therefore), the Company agrees to pay such costs or
expenses as they are incurred and in advance of the final disposition of the
action, suit or proceeding within 30 calendar days of submission of bills or
vouchers for such costs or expenses upon receipt of an undertaking by or on
behalf of Indemnitee to repay the amount if it is ultimately determined by a
court of competent jurisdiction that he or she is not entitled to be indemnified
by the Company.  Indemnitee agrees to reimburse the Company for all
amounts paid by the Company in defending any civil, criminal, administrative,
investigative action, suit or proceeding against Indemnitee, including amounts
paid in settlement, in the event and only to the extent that it is ultimately
determined by a court of competent jurisdiction that Indemnitee is not entitled
to be indemnified by the Company for such expenses under the provisions of the
State Statute, Bylaws, this Agreement or otherwise.  In the case of an
action brought by the Company for an accounting of profits made from the
purchase or sale by Indemnitee of securities of the Company pursuant to the
provisions of Section 16(b) of the Securities Exchange Act of 1934, as amended,
or other similar provisions of any federal, state or local statutory law,
however, costs and expenses will not be advanced unless such action is approved
by a majority of the directors of the Company who both hold office at the time
of the commencement of such case and held office at the time of the conduct
alleged to have given rise to liability on the part of the
Indemnitee.

     

    6.           Presumptions
and Effect on Certain Proceedings.  Upon making a request for
indemnification, Indemnitee shall be presumed to be entitled to indemnification
under this Agreement.  The termination of any action, suit or
proceeding by judgment, order, settlement, arbitration award, conviction or on a
plea of nolo contendere or its equivalent shall not affect this presumption
except as may be provided in Section 4 of this Agreement.

     

    7.           Notification
and Defense of Claim.  Promptly after receipt by Indemnitee of
notice of the commencement of any action, suit or proceeding, Indemnitee shall,
if a claim with respect thereto is to be made against the Company under this
Agreement, notify the Company of the commencement of the same; but the failure
by Indemnitee to notify the Company will not relieve the Company from any
liability which it may have to Indemnitee otherwise than under this
Agreement.  With respect to any such action, suit or proceeding as to
which Indemnitee notifies the Company of the commencement thereof:

     

    (a)           The
Company shall be entitled to participate therein at its own expense;
and

     

    (b)           Except
as otherwise provided below, to the extent that it may wish, the

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

      

    

    Company,
jointly with any other indemnifying party similarly notified, shall be entitled
to assume the defense thereof with counsel reasonably satisfactory to
Indemnitee.  After notice from the Company to Indemnitee of its
election to assume the defense of the action, suit or proceeding, the Company
will not be liable to Indemnitee under this Agreement for any legal or other
expenses subsequently incurred by Indemnitee in connection with the defense
thereof other than reasonable costs of investigation or as otherwise provided
below.  Indemnitee shall have the right to employ its own counsel in
such action, suit or proceeding but the fees and expenses of such counsel
incurred after notice from the Company of its assumption of the defense shall be
at the sole expense of Indemnitee unless (i) the employment of counsel by
Indemnitee has been authorized in writing by the Company; (ii) Indemnitee shall
have reasonably concluded that there my be a conflict of interest between the
Company and Indemnitee in the conduct of the defense of such action; or (iii)
the Company shall not in fact have employed counsel to assume the defense of
such action, suit or proceeding.  In each such instance set forth in
(i)-(iii) above, the fees and expenses of Indemnitee’s counsel shall be at the
expense of the Company.  Notwithstanding the foregoing, the Company
shall not be entitled to assume the defense of any action, suit or proceeding
brought by or on behalf of the Company or as to which Indemnitee shall have made
the conclusion provided in (ii) above.

     

    (c)           The
Company shall not be liable to indemnify Indemnitee under this Agreement for any
amounts paid in settlement of any action or claim affected without the Company’s
prior express written consent.  The Company shall not settle any
action or claim in any manner that would impose any penalty or limitation on
Indemnitee without Indemnitee’s prior express written
consent.  Neither the Company nor Indemnitee will unreasonably
withhold their consent to any proposed settlement.

     

    8.           Enforcement.

     

    (a)           The
Company expressly confirms and agrees that it has entered into this Agreement
and assumed the obligations imposed on the Company hereby in order to induce
Indemnitee to continue as a director or officer of the Company, and acknowledges
that Indemnitee is relying on this Agreement in continuing in such
capacity.

     

    (b)           In
the event Indemnitee is required to bring any action to enforce his or her
rights or to collect moneys due under this Agreement, the Company shall advance
Indemnitee all of Indemnitee’s reasonably fees and expenses in bringing and
pursuing such action.  Indemnitee shall be responsible for
reimbursement to the Company of such advances in the event that Indemnitee is
not successful in such action.

     

    9.           No
Employment Rights.  Nothing in this Agreement is intended to
confer on Indemnitee any right to continue in the employ of the Company for any
period of time or interfere with or otherwise restrict in any way the rights of
the Company or of Indemnitee, which rights are hereby expressly reserved by
each, to terminate his or her service at any time and for any reason, with or
without cause, except as may be provided otherwise in an agreement between the
Company and Indemnitee.

     

    10.           Severability.  Each
of the provisions of this Agreement are separate and distinct and independent of
one another, so that if any provision of this Agreement shall be held to be
invalid or unenforceable for any reason, such invalidity or unenforceability
shall not effect the validity or enforceability of the other provisions of this
Agreement.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    11.           Blue
Pencil.  If any provision of this Agreement is held to be
invalid or unenforceable by a court of competent jurisdiction, the parties agree
that the court making such determination shall have the power to amend such
provision or to delete specific words or phrases so that such provision shall
then be enforceable to the fullest extent permitted by law.

     

    12.           Subrogation.  In
the event of payment under this Agreement, the Company shall be subrogated to
the extent of such payment to all rights of recovery of Indemnitee, who shall
execute all papers required and shall do everything that may be necessary to
secure such rights, including without limitation, the execution of such
documents necessary to enable the Company to effectively bring suit to enforce
such rights.

     

    13.           Governing
Law and Forum Selection.  This Agreement shall be governed by,
and construed in accordance with, the laws of the State of Nevada without resort
to conflict of laws principles.

     

    14.           Binding
Effect; Amendment.  This Agreement shall be binding on the
parties, their successors and assigns, and shall inure to the benefit of
Indemnitee, his or her heirs, personal representatives and assigns, and to the
benefit of the Company, its successors and assigns.  No amendment,
modification, termination or cancellation of this Agreement shall be effective
unless in a writing signed by both parties hereto.

     

    15.           Notices.  All
notices, requests, demands and other communications hereunder shall be in
writing and shall be deemed to have been duly given if (i) delivered by hand and
receipted for by the party to whom said notice or other communication shall have
been directed or (ii) mailed by certified or registered mail with postage
prepaid, on the third business day after the date on which it is so mailed and
addressed to the following addresses:

     

    If to
Indemnitee:    _________________________

     _________________________

     _________________________

    

    

    If to the
Company:_________________________

     _________________________

     _________________________

     Attention: President

    

    

    With a copy
to:      ________________________

             _________________________

     _________________________

    

    A party
may change their address by delivering notice of such changed addressed in the
manner set forth in this Section 15.

     

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

      

    

     

    In Witness Whereof, the parties hereto
have executed this Indemnity Agreement as of the date first above
written.

     

    
      	
              “Indemnitee”

            	 
      	
              Reading
      International, Inc.

            
	 
      	 
      	
              a
      Nevada corporation

               

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
              _________________________

            	
              By:

            	
              _________________________

            
	 
      	
              Its:

            	
              _________________________ex10-1.htm

     

    EXHIBIT
10.1

    

    MICROCHIP
TECHNOLOGY INCORPORATED

    

    MANAGEMENT
INCENTIVE COMPENSATION PLAN

    (as
amended by the Board of Directors on August 14, 2008)

    

    1.           Purposes of the
Plan.  The Plan is intended to increase shareholder value and
the success of the Company by motivating our key management and senior technical
employees to: (1) perform to the best of their abilities, and
(2) achieve the Company’s objectives.  The Plan’s goals are to be
achieved by providing such personnel with incentive awards based on the
achievement of goals relating to the performance of the Company, on the
achievement of individual performance goals, retention-based bonuses, or
nonrecurring awards for performance beyond that expected.

     

    2.           Definitions.

     

    (a)           “Award” means, with
respect to each Participant, the award determined pursuant to Section 7(a)
below for a Performance Period.  Each Award is determined by a Payout
Basis for a Performance Period, subject to the Committee’s authority under
Section 7(a) to increase, eliminate or reduce the Award otherwise
payable.

     

    (b)           “Base Salary” means as
to any Performance Period, the Participant’s annualized salary rate on the last
day of the Performance Period.  Such Base Salary shall be before both
(a) deductions for taxes or benefits, and (b) deferrals of
compensation pursuant to Company-sponsored plans.

     

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

     

    (d)           “Cash Position” means
the Company’s level of cash and cash equivalents.

     

    (e)           “Code” means the
Internal Revenue Code of 1986, as amended.

     

    (f)           “Committee” means the
Compensation Committee of the Board, or a sub-committee of the Compensation
Committee, which shall consist solely of two or more members of the Board who
are not employees of the Company and who otherwise qualify as “outside
directors” within the meaning of Section 162(m).

     

    (g)           “Company” means
Microchip Technology Incorporated or any of its subsidiaries (as such term is
defined in Code Section 424(f)).

     

    (h)           “Earnings Per Share”
means as to any Fiscal Quarter or Fiscal Year, the Company’s or a business
unit’s Net Income, divided by a weighted average number of common shares
outstanding and dilutive common equivalent shares deemed outstanding, determined
in accordance with generally accepted accounting principles.

     

    (i)           “Fiscal Quarter” means
a fiscal quarter of the Company.

     

    (j)           “Fiscal Year” means a
fiscal year of the Company.

     

    (k)           “Gross Margin” means
the Company’s or a business unit’s net sales for the Fiscal Quarter or Fiscal
Year less the Company’s or a business unit’s, as applicable, cost of goods sold
for the Fiscal Quarter or Fiscal Year, determined in accordance with generally
accepted accounting principles.

     

    (l)           “Net Income” means as
to any Fiscal Quarter or Fiscal Year, the income after taxes of the Company for
the Fiscal Quarter or Fiscal Year determined in accordance with generally
accepted accounting principles.

     

    (m)           “Operating Cash Flow”
means the Company’s or a business unit’s sum of Net Income plus depreciation and
amortization less capital expenditures plus changes in working capital comprised
of accounts receivable,

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    inventories,
other current assets, trade accounts payable, accrued expenses, product
warranty, advance payments from customers and long-term accrued expenses,
determined in accordance with generally accepted accounting
principles.

     

    (n)           “Operating Expenses”
means the sum of the Company’s or a business unit’s research and development
expenses and selling and general and administrative expenses during a Fiscal
Quarter or Fiscal Year.

     

    (o)           “Operating Income”
means the Company’s or a business unit’s income from operations determined in
accordance with generally accepted accounting principles.

     

    (p)           “Participant” means an
employee of the Company participating in the Plan for a Performance
Period.

     

    (q)           “Payout Basis” means
as to any Performance Period, the criteria established by the Committee pursuant
to Section 5 in order to determine the Awards (if any) to be paid to
Participants. The Payout Basis may contain discretionary elements to reward
additional performance as recommended by the CEO and approved by the
Committee.  The criteria may differ from Participant to Participant,
or between groups of Participants.

     

    (r)           “Performance Goals”
means the goal(s) (or combined goal(s)) determined by the Committee (in its
discretion) to be applicable to a Participant with respect to an
Award.  As determined by the Committee, the Performance Goals
applicable to an Award may provide for a targeted level or levels of achievement
based upon one or more of the following measures, but not limited hereto: Cash
Position, Earnings Per Share, Gross Margin, Net Income, Operating Cash Flow,
Operating Expenses, Operating Profit, Return on Assets, Return on Equity, Return
on Sales, Revenue Growth, and Total Stockholder Return.  The
Performance Goals may differ from Participant to Participant and from Award to
Award.  The Committee may appropriately adjust any evaluation of the
performance under a Performance Goal to exclude (i) any extraordinary
non-recurring items as described in Accounting Principles Board Opinion No. 30
and/or in management’s discussion and analysis of financial conditions and
results of operations appearing in the Company’s quarterly and annual reporting
with Securities and Exchange Commission for the applicable year, or (ii) the
effect of any changes in accounting principles affecting the Company’s or a
business unit’s reported results.

     

    (s)           “Performance Period”
means any Fiscal Quarter or Fiscal Year, or such other longer period but not in
excess of five Fiscal Years, as determined by the Committee in its sole
discretion.

     

    (t)           “Plan” means this
Performance Bonus Plan.

     

    (u)           “Plan Year” means the
Company’s fiscal year.

     

    (v)           “Return on Assets”
means the percentage equal to the Company’s or a business unit’s Operating
Income before incentive compensation, divided by average net Company or business
unit, as applicable, assets, determined in accordance with generally accepted
accounting principles.

     

    (w)           “Return on Equity”
means the percentage equal to the Company’s Net Income divided by average
shareholder’s equity, determined in accordance with generally accepted
accounting principles.

     

    (x)           “Return on Sales”
means the percentage equal to the Company’s or a business unit’s Operating
Income before incentive compensation, divided by the Company’s or the business
unit’s, as applicable, revenue, determined in accordance with generally accepted
accounting principles.

     

    (y)           “Revenue Growth” means
the Company’s or a business unit’s net sales for the Fiscal Quarter or Fiscal
Year, determined in accordance with generally accepted accounting principles,
compared to the net sales of the immediately preceding quarter.

    
      
         

      

      
        -2- 

        
          

        

      

      
         

      

    

     

    (z)           “Section 162(m)” means
Section 162(m) of the Code, or any successor to Section 162(m), as that Section
may be interpreted from time to time by the Internal Revenue Service, whether by
regulation, notice or otherwise.

     

    (aa)           “Total Stockholder
Return” means the total return (change in share price plus reinvestment
of any dividends) of a share of the Company’s common stock.

    

    3.           Plan
Administration.

     

    (a)           The
Plan may be administered by different administrators with respect to different
groups of Participants.  The Committee shall be responsible for the general
administration and interpretation of the Plan and for carrying out its
provisions.  The Committee may delegate its general administration and
interpretation authority to a committee of employees as the Plan relates to
Participants other than executive officers.  The Committee may
delegate specific administrative tasks to Company employees or others as
appropriate for proper administration of the Plan.  The Committee and
its delegates shall have such powers as may be necessary to discharge their
duties hereunder, including, but not by way of limitation, the following powers
and duties, but subject to the terms of the Plan:

    

    (i)           discretionary
authority to construe and interpret the terms of the Plan, and to determine
eligibility, Awards and the amount, manner and time of payment of any Awards
hereunder;

    

    (ii)          to
prescribe forms and procedures for purposes of Plan participation and
distribution of Awards; and

    

    (iii)         to
adopt rules, regulations and bylaws and to take such actions as it deems
necessary or desirable for the proper administration of the Plan.

    

    (b)           Any
rule or decision by the Committee or its delegates that is not inconsistent with
the provisions of the Plan shall be conclusive and binding on all persons, and
shall be given the maximum deference permitted by law.

    

    4.           Eligibility.  The
employees eligible to participate in the Plan for a given Performance Period
shall be those employees of the Company who based on their individual position
and Company criteria have a significant impact on the Company’s performance as
determined by the Committee.  No person shall be automatically
entitled to participate in the Plan.

    

    5.           Performance Goal
Determination.  The Company’s Chief Executive Officer shall
provide the Committee with recommendations as to the criteria underlying the
Performance Goals.  The CEO may make recommendations as to
discretionary elements to reward additional performance.  The
Committee shall have complete authority to accept, modify or reject such
recommendations, or to eliminate the Awards entirely.

     

    6.           Determination of Payout
Basis.  The Committee, in its sole discretion, shall establish
a Payout Basis for purposes of determining the Award (if any) payable to each
Participant.  Each Payout Basis shall (a) be based on a
comparison performance to the Performance Goals, (b) provide for the
payment of Awards if the Performance Goals for the Performance Period are
achieved.  Discretionary elements may be identified at the same time
as the criteria underlying the Performance Goals are set, or they may be later
determined at the Committee’s discretion.  Awards may be a specific
dollar amount, or a percentage of base salary.

    

    7.           Determination of Awards;
Award Payment.

     

    (a)           Determination and
Certification.  After the end of each Performance Period, the
Committee shall determine the extent to which the Performance Goals applicable
to each Participant for the Performance Period were

    
      
         

      

      
        -3- 

        
          

        

      

      
         

      

    

     

    achieved
or exceeded.  The Award for each Participant shall be determined by
applying the Payout Basis to the level of actual performance that has been
determined by the Committee, and adding any discretionary element that has been
determined by the Committee.  Notwithstanding any contrary provision
of the Plan, the Committee, in its sole discretion, may increase, eliminate or
reduce the Award payable to any Participant below that which otherwise would be
payable under the Payout Basis.

     

    (b)           Right to Receive
Payment.  Each Award under the Plan shall be paid solely from
the general assets of the Company.  Nothing in this Plan shall be
construed to create a trust or to establish or evidence any Participant’s claim
of any right to payment of an Award other than as an unsecured general creditor
with respect to any payment to which he or she may be
entitled.  Unless otherwise approved by the Committee, a Participant
needs to be employed by the Company from the beginning of the applicable
Performance Period through the Award payment date to receive an Award payout
hereunder.

     

    (c)           Form of
Distributions.  The Company shall distribute all Awards to the
Participant in cash, restricted stock units or awards, or a combination thereof
at the discretion of the Committee.

     

    (d)           Deferral.  The
Committee may defer payment of Awards, or any portion thereof, to Participants
as the Committee, in its discretion, determines to be necessary or desirable to
preserve the deductibility of such amounts under
Section 162(m).  In addition, the Committee, in its sole
discretion, may permit a Participant to defer receipt of the payment of cash
that would otherwise be delivered to a Participant under the
Plan.  Any such deferral elections shall be subject to such rules and
procedures as shall be determined by the Committee in its sole
discretion.

    

    8.           Term of
Plan.  The Plan shall become effective October 1,
2006.  The Plan shall continue until terminated under Section 9
of the Plan.

    

    9.           Amendment and Termination of
the Plan.  The Committee may amend, modify, suspend or
terminate the Plan, in whole or in part, at any time, including the adoption of
amendments deemed necessary or desirable to correct any defect or to supply
omitted data or to reconcile any inconsistency in the Plan or in any Award
granted hereunder; provided, however, that no amendment, alteration, suspension
or discontinuation shall be made which would impair any payments to Participants
made prior to such amendment, modification, suspension or termination, unless
the Committee has made a determination that such amendment or modification is in
the best interests of all persons to whom Awards have theretofore been
granted.  To the extent necessary or advisable under applicable law,
Plan amendments shall be subject to shareholder approval.  At no time
before the actual distribution of funds to Participants under the Plan shall any
Participant accrue any vested interest or right whatsoever under the Plan except
as otherwise stated in this Plan.

    

    10.           Withholding.  Distributions
pursuant to this Plan shall be subject to all applicable federal and state tax
and withholding requirements.

    

    11.           At-Will
Employment.  No statement in this Plan should be construed to
grant any employee an employment contract of fixed duration or any other
contractual rights, nor should this Plan be interpreted as creating an implied
or an expressed contract of employment or any other contractual rights between
the Company and its employees.  The employment relationship between
the Company and its employees is terminable at-will.  This means that
an employee or the Company may terminate the employment relationship at any time
and for any reason or no reason.

    

    12.           Successors.  All
obligations of the Company under the Plan, with respect to awards granted
hereunder, shall be binding on any successor to the Company, whether the
existence of such successor is the result of a direct or indirect purchase,
merger, consolidation, or otherwise, of all or substantially all of the business
or assets of the Company.

    

    13.           Indemnification.  Each
person who is or shall have been a member of the Committee, of the Board, or
their delegates shall be indemnified and held harmless by the Company against
and from (a) any loss, cost, liability, or expense that may be imposed upon
or reasonably incurred by him or her in connection with or resulting from any
claim, action, suit, or proceeding to which he or she may be a party or in which
he or she may be involved by reason of any action
taken or failure to act under the Plan or any award, and (b) from any and
all amounts paid by him or her in settlement thereof, with the Company’s
approval, or paid by him or her in satisfaction of any judgment in any such
claim, action, suit, or proceeding against him or her, provided he or she shall
give the Company an opportunity, at its own expense, to handle and defend the
same before he or she undertakes to handle and defend it on his or her own
behalf.  The foregoing right of indemnification shall not be exclusive
of any other rights of indemnification to which such persons may be entitled
under the Company’s Certificate of Incorporation or Bylaws, by contract, as a
matter of law, or otherwise, or under any power that the Company may have to
indemnify them or hold them harmless.

    

    14.           Nonassignment.  The
rights of a Participant under this Plan shall not be assignable or transferable
by the Participant except by will or the laws of intestacy.

    

    15.           Governing
Law.  The Plan shall be governed by the laws of the State of
Arizona, without regard to conflicts of law provisions thereunder.

    

    

    
      
         

      

      
        -4-

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