Document:

2001 STOCK INCENTIVE PLAN

 Exhibit 4.01 
  
 ENVIRONMENTAL POWER CORPORATION 
 2001
STOCK INCENTIVE PLAN 
  
 Section 1. Purpose 
  
 The purpose of the Plan is to promote the interests of the Company and its
shareholders by aiding the Company in attracting and retaining employees, officers, consultants, independent contractors and non-employee directors capable of assuring the future success of the Company, to offer such persons incentives to put forth
maximum efforts for the success of the Company’s business and to afford such persons an opportunity to acquire a proprietary interest in the Company. 
  
 Section 2. Definitions 
  
 As used in the Plan, the following terms shall have the meanings set forth below: 
  
 (a) “Affiliate” shall mean (i) any entity that, directly or indirectly through one or more
intermediaries, is controlled by the Company and (ii) any entity in which the Company has a significant equity interest, in each case as determined by the Committee. 
  
 (b) “Award” shall mean any Option, Stock Appreciation Right, Restricted Stock, Performance Award,
Other Stock Grant or Other Stock-Based Award granted under the Plan. 
  
 (c) “Award Agreement” shall mean any written agreement, contract or other instrument or document evidencing any Award granted under the Plan. 
  
 (d) “Board” shall mean the Board of Directors of the Company. 
  
 (e) “Code” shall mean the Internal Revenue Code of
1986, as amended from time to time, and any regulations promulgated thereunder. 
  
 (f) “Committee” shall mean a committee of Directors designated by the Board to administer the Plan. The Committee shall be
comprised of not less than such number of Directors as shall be required to permit Awards granted under the Plan to qualify under Rule 16b-3, and each member of the Committee shall be a “Non-Employee Director” within the meaning of Rule
16b-3 and an “outside director” within the meaning of Section 162(m) of the Code. The Company expects to have the Plan administered in accordance with the requirements for the award of “qualified performance-based compensation”
within the meaning of Section 162(m) of the Code. 
  
 (g) “Company” shall mean Environmental Power Corporation, a Delaware corporation, and any successor corporation. 
  
 (h) “Director” shall mean a member of the Board. 

 (i) “Eligible Person” shall mean any employee, officer, consultant, independent
contractor or Director providing services to the Company or any Affiliate whom the Committee determines to be an Eligible Person. 
  
 (j) “Fair Market Value” shall mean, with respect to any property (including, without limitation, any Shares or other
securities), the fair market value of such property determined by such methods or procedures as shall be established from time to time by the Committee. Notwithstanding the foregoing, unless otherwise determined by the Committee, the Fair Market
Value of Shares as of a given date shall be determined as follows: 
  
 (i) If the Shares are then listed on a national securities exchange or reported on the National Association of Securities Dealers Automated Quotation system (“NASDAQ”) or other system reporting a closing
price, the closing price of a Share on such date; 
  
 (ii) If the Shares are then not so listed or reported but traded in the over-the-counter market, the average closing bid and asked prices per Share on such date; or 
  
 (iii) In all other cases, the fair market value per Share, as estimated in good faith by the Committee.

  
 (k) “Incentive Stock Option” shall
mean an option granted under Section 6(a) of the Plan that is intended to meet the requirements of Section 422 of the Code or any successor provision. 
  
 (l) “Non-Qualified Stock Option” shall mean an option granted under Section 6(a) of the Plan that is not intended to be an
Incentive Stock Option. 
  
 (m)
“Option” shall mean an Incentive Stock Option or a Non-Qualified Stock Option. 
  
 (n) “Other Stock Grant” shall mean any right granted under Section 6(e) of the Plan. 
  
 (o) “Other Stock-Based Award” shall mean any right
granted under Section 6(f) of the Plan. 
  
 (p)
“Participant” shall mean an Eligible Person designated to be granted an Award under the Plan. 
  
 (q) “Performance Award” shall mean any right granted under Section 6(d) of the Plan. 
  
 (r) “Person” shall mean any individual,
corporation, partnership, association or trust. 
  
 (s) “Plan” shall mean the Environmental Power Corporation 2001 Stock Incentive Plan, as amended from time to time, the provisions of which are set forth herein. 
  

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 (t) “Restricted Stock” shall mean any Shares granted under Section 6(c) of the
Plan. 
  
 (u) “Rule 16b-3” shall mean
Rule 16b-3 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended, or any successor rule or regulation. 
  
 (v) “Share” or “Shares” shall mean shares of common stock, $.01 par value per share, of the Company or such other
securities or property as may become subject to Awards pursuant to an adjustment made under Section 4(c) of the Plan. 
  
 (w) “Stock Appreciation Right” shall mean any right granted under Section 6(b) of the Plan. 
  
 Section 3. Administration 
  
 (a) Power and Authority of the Committee. The Plan
shall be administered by the Committee. Subject to the express provisions of the Plan and to applicable law, the Committee shall have full power and authority to: (i) designate Participants; (ii) determine the type or types of Awards to be granted
to each Participant under the Plan; (iii) determine the number of Shares to be covered by (or with respect to which payments, rights or other matters are to be calculated in connection with) each Award; (iv) determine the terms and conditions of any
Award or Award Agreement; (v) amend the terms and conditions of any Award or Award Agreement and accelerate the exercisability of Options or the lapse of restrictions relating to Restricted Stock or other Awards; (vi) determine whether, to what
extent and under what circumstances Awards may be exercised in cash, Shares, other securities, other Awards or other property, or canceled, forfeited or suspended; (vii) determine whether, to what extent and under what circumstances cash, Shares,
promissory notes, other securities, other Awards, other property and other amounts payable with respect to an Award under the Plan shall be deferred either automatically or at the election of the holder thereof or the Committee; (viii) interpret and
administer the Plan and any instrument or agreement, including an Award Agreement, relating to the Plan; (ix) establish, amend, suspend or waive such rules and regulations and appoint such agents as it shall deem appropriate for the proper
administration of the Plan; and (x) make any other determination and take any other action that the Committee deems necessary or desirable for the administration of the Plan. Unless otherwise expressly provided in the Plan, all designations,
determinations, interpretations and other decisions under or with respect to the Plan or any Award shall be within the sole discretion of the Committee, may be made at any time and shall be final, conclusive and binding upon any Participant, any
holder or beneficiary of any Award and any employee of the Company or any Affiliate. 
  
 (b) Delegation. The Committee may delegate its powers and duties under the Plan to one or more Directors or to a committee of
Directors, subject to such terms, conditions and limitations as the Committee may establish in its sole discretion. 
  
 (c) Power and Authority of the Board of Directors. In the event the Committee has not been designed, the Board shall exercise the
powers and duties of the Committee under the Plan. Furthermore, notwithstanding anything to the contrary contained herein, the Board may, at any time and from time to time, without any further action of the Committee, exercise the powers and duties
of the Committee under the Plan. 
  

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 Section 4. Shares Available for Awards 
  
 (a) Shares Available. Subject to adjustment as provided in Section 4(c) of the Plan, the aggregate
number of Shares that may be issued under all Awards under the Plan shall be 3,000,000. Shares to be issued under the Plan may be either authorized but unissued Shares or Shares acquired in the open market or otherwise. Any Shares that are used by a
Participant as full or partial payment to the Company of the purchase price relating to an Award, or in connection with the satisfaction of tax obligations relating to an Award, shall again be available for granting Awards (other than Incentive
Stock Options) under the Plan. In addition, if any Shares covered by an Award or to which an Award relates are not purchased or are forfeited, or if an Award otherwise terminates without delivery of any Shares, then the number of Shares counted
against the aggregate number of Shares available under the Plan with respect to such Award, to the extent of any such forfeiture or termination, shall again be available for granting Awards under the Plan. Notwithstanding the foregoing, the number
of Shares available for granting Incentive Stock Options under the Plan shall not exceed 3,000,000, subject to adjustment as provided in the Plan and subject to the provisions of Section 422 or 424 of the Code or any successor provision. 

 
 (b) Accounting for Awards. For purposes of this
Section 4, if an Award entitles the holder thereof to receive or purchase Shares, the number of Shares covered by such Award or to which such Award relates shall be counted on the date of grant of such Award against the aggregate number of Shares
available for granting Awards under the Plan. 
  
 (c) Adjustments. In the event that the Committee shall determine that any dividend or other distribution (whether in the form of cash, Shares, other securities or other property), recapitalization, stock split, reverse stock split,
reorganization, merger, consolidation, split-up, spin-off, combination, repurchase or exchange of Shares or other securities of the Company, issuance of warrants or other rights to purchase Shares or other securities of the Company or other similar
corporate transaction or event affects the Shares such that an adjustment is determined by the Committee to be appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the
Plan, then the Committee shall, in such manner as it may deem equitable, adjust any or all of (i) the number and type of Shares (or other securities or other property) that thereafter may be made the subject of Awards, (ii) the number and type of
Shares (or other securities or other property) subject to outstanding Awards and (iii) the purchase or exercise price with respect to any Award; provided, however, that the number of Shares covered by any Award or to which such Award
relates shall always be a whole number. 
  
 (d)
Award Limitations Under the Plan. No Eligible Person may be granted any Award or Awards under the Plan, the value of which Award or Awards is based solely on an increase in the value of the Shares after the date of grant of such Award or
Awards, for more than 1,000,000 Shares (subject to adjustment as provided for in Section 4(c) of the Plan), in the aggregate in any calendar year. The foregoing annual limitation specifically includes the grant of any Award or Awards representing
“qualified performance-based compensation” within the meaning of Section 162(m) of the Code. 
  

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 Section 5. Eligibility 
  

Any Eligible Person shall be eligible to be designated a Participant. In determining which Eligible Persons shall receive an Award and the terms of any
Award, the Committee may take into account the nature of the services rendered by the respective Eligible Persons, their present and potential contributions to the success of the Company or such other factors as the Committee, in its discretion,
shall deem relevant. Notwithstanding the foregoing, an Incentive Stock Option may only be granted to full or part-time employees (which term as used herein includes, without limitation, officers and Directors who are also employees), and an
Incentive Stock Option shall not be granted to an employee of an Affiliate unless such Affiliate is also a “subsidiary corporation” of the Company within the meaning of Section 424(f) of the Code or any successor provision. 
  
 Section 6. Awards 
  
 (a) Options. The Committee is hereby authorized to grant Options to Participants with the following
terms and conditions and with such additional terms and conditions not inconsistent with the provisions of the Plan as the Committee shall determine: 
  
 (i) Exercise Price. The purchase price per Share purchasable under an Option shall be determined by the Committee; provided,
however, that such purchase price shall not be less than 100% of the Fair Market Value of a Share on the date of grant of such Option. 
  
 (ii) Option Term. The term of each Option shall be fixed by the Committee. 
  
 (iii) Time and Method of Exercise. The Committee
shall determine the time or times at which an Option may be exercised in whole or in part and the method or methods by which, and the form or forms (including, without limitation, cash, Shares, promissory notes, other securities, other Awards or
other property, or any combination thereof, having a Fair Market Value on the exercise date equal to the relevant exercise price) in which, payment of the exercise price with respect thereto may be made or deemed to have been made. 
  
 (iv) Incentive Stock Options. Notwithstanding
anything in the Plan to the contrary, the following additional provisions shall apply to the grant of stock options which are intended to qualify as Incentive Stock Options: 
  
 (A) The aggregate Fair Market Value (determined as of the time the option is granted) of the Shares with respect to which
Incentive Stock Options are exercisable for the first time by any participant during any calendar year (under this Plan and all other plans of the Company and its Affiliates) shall not exceed $100,000. 
  
 (B) All Incentive Stock Options must be granted within ten years from the
earlier of the date on which this Plan was adopted by Board of Directors or the date this Plan was approved by the shareholders of the Company. 
  

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 (C) Unless sooner exercised, all Incentive Stock Options shall expire and no longer be exercisable no
later than 10 years after the date of grant; provided, however, that in the case of a grant of an Incentive Stock Option to a participant who, at the time such Option is granted, owns (within the meaning of Section 422 of the Code) stock possessing
more than 10% of the total combined voting power of all classes of stock of the Company or of its Affiliate, such Incentive Stock Option shall expire and no longer be exercisable no later than 5 years from the date of grant. 
  
 (D) The purchase price per Share for an Incentive Stock Option shall be not
less than 100% of the Fair Market Value of a Share on the date of grant of the Incentive Stock Option; provided, however, that, in the case of the grant of an Incentive Stock Option to a participant who, at the time such Option is granted, owns
(within the meaning of Section 422 of the Code) stock possessing more than 10% of the total combined voting power of all classes of stock of the Company or of its Affiliate, the purchase price per Share purchasable under an Incentive Stock Option
shall be not less than 110% of the Fair Market Value of a Share on the date of grant of the Inventive Stock Option. 
  
 (E) Any Incentive Stock Option authorized under the Plan shall contain such other provisions as the Committee shall deem advisable, but shall in all
events be consistent with and contain all provisions required in order to qualify the Option as an Incentive Stock Option. 
  
 (b) Stock Appreciation Rights. The Committee is hereby authorized to grant Stock Appreciation Rights to Participants subject to the
terms of the Plan and any applicable Award Agreement. A Stock Appreciation Right granted under the Plan shall confer on the holder thereof a right to receive upon exercise thereof the excess of (i) the Fair Market Value of one Share on the date of
exercise (or, if the Committee shall so determine, at any time during a specified period before or after the date of exercise) over (ii) the grant price of the Stock Appreciation Right as specified by the Committee, which price shall not be less
than 100% of the Fair Market Value of one Share on the date of grant of the Stock Appreciation Right. Subject to the terms of the Plan and any applicable Award Agreement, the grant price, term, methods of exercise, dates of exercise, methods of
settlement and any other terms and conditions of any Stock Appreciation Right shall be as determined by the Committee. The Committee may impose such conditions or restrictions on the exercise of any Stock Appreciation Right as it may deem
appropriate. 
  
 (c) Restricted Stock. The
Committee is hereby authorized to grant Restricted Stock to Participants with the following terms and conditions and with such additional terms and conditions not inconsistent with the provisions of the Plan as the Committee shall determine:

  
 (i) Restrictions. Shares of Restricted
Stock shall be subject to such restrictions as the Committee may impose (including, without limitation, a waiver by the Participant of the right to vote or to receive any dividend or other right or property with respect thereto), which restrictions
may lapse separately or in combination at such time or times, in such installments or otherwise as the Committee may deem appropriate. 
  

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 (ii) Stock Certificates. Any Restricted Stock granted under the Plan shall be
registered in the name of the Participant and shall bear an appropriate legend referring to the terms, conditions and restrictions applicable to such Restricted Stock. 
  
 (iii) Forfeiture. Except as otherwise determined by the Committee, upon termination of employment (as
determined under criteria established by the Committee) during the applicable restriction period, all Shares of Restricted Stock subject to restriction at such time shall be forfeited and reacquired by the Company; provided, however,
that the Committee may, when it finds that a waiver would be in the best interest of the Company, waive in whole or in part any or all remaining restrictions with respect to Shares of Restricted Stock. 
  
 (d) Performance Awards. The Committee is hereby
authorized to grant Performance Awards to Participants subject to the terms of the Plan and any applicable Award Agreement. A Performance Award granted under the Plan (i) may be denominated or payable in cash, Shares (including, without limitation,
Restricted Stock), other securities, other Awards or other property and (ii) shall confer on the holder thereof the right to receive payments, in whole or in part, upon the achievement of such performance goals during such performance periods as the
Committee shall establish. Subject to the terms of the Plan and any applicable Award Agreement, the performance goals to be achieved during any performance period, the length of any performance period, the amount of any Performance Award granted,
the amount of any payment or transfer to be made pursuant to any Performance Award and any other terms and conditions of any Performance Award shall be determined by the Committee. 
  
 (e) Other Stock Grants. The Committee is hereby authorized, subject to the terms of the Plan and any
applicable Award Agreement, to grant to Participants Shares without restrictions thereon as are deemed by the Committee to be consistent with the purpose of the Plan. 
  
 (f) Other Stock-Based Awards. The Committee is hereby authorized to grant to Participants subject to
the terms of the Plan and any applicable Award Agreement, such other Awards that are denominated or payable in, valued in whole or in part by reference to, or otherwise based on or related to, Shares (including, without limitation, securities
convertible into Shares), as are deemed by the Committee to be consistent with the purpose of the Plan. Shares or other securities delivered pursuant to a purchase right granted under this Section 6(f) shall be purchased for such consideration,
which may be paid by such method or methods and in such form or forms (including, without limitation, cash, Shares, promissory notes, other securities, other Awards or other property or any combination thereof), as the Committee shall determine, the
value of which consideration, as established by the Committee, shall not be less than 100% of the Fair Market Value of such Shares or other securities as of the date such purchase right is granted. 
  
 (g) General 
  
 (i) No Cash Consideration for Awards. Awards shall be
granted for no cash consideration or for such minimal cash consideration as may be required by applicable law. 
  
 (ii) Awards May Be Granted Separately or Together. Awards may, in the discretion of the Committee, be granted either alone or in
addition to, in tandem with or in 

  

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substitution for any other Award or any award granted under any plan of the Company or any Affiliate other than the Plan. Awards granted in addition to or in
tandem with other Awards or in addition to or in tandem with awards granted under any such other plan of the Company or any Affiliate may be granted either at the same time as or at a different time from the grant of such other Awards or awards.

  
 (iii) Forms of Payment under Awards.
Subject to the terms of the Plan and of any applicable Award Agreement, payments or transfers to be made by the Company or an Affiliate upon the grant, exercise or payment of an Award may be made in such form or forms as the Committee shall
determine (including, without limitation, cash, Shares, promissory notes, other securities, other Awards or other property or any combination thereof), and may be made in a single payment or transfer, in installments or on a deferred basis, in each
case in accordance with rules and procedures established by the Committee. Such rules and procedures may include, without limitation, provisions for the payment or crediting of reasonable interest on installment or deferred payments or the grant or
crediting of dividend equivalents with respect to installment or deferred payments. 
  
 (iv) Limits on Transfer of Awards. No Award (other than Other Stock Grants) and no right under any such Award shall be transferable
by a Participant otherwise than by will or by the laws of descent and distribution and the Company shall not be required to recognize any attempted assignment of such rights by any participant. Each Award or right under any Award shall be
exercisable during the Participant’s lifetime only by the Participant or, if permissible under applicable law, by the Participant’s guardian or legal representative. No Award or right under any such Award may be pledged, alienated,
attached or otherwise encumbered, and any purported pledge, alienation, attachment or encumbrance thereof shall be void and unenforceable against the Company or any Affiliate. 
  
 (v) Term of Awards. The term of each Award shall be for such period as may be determined by the
Committee; provided, however, that in the case of an Incentive Stock Option such option shall not be exercisable after the expiration of 10 years from the date such option is granted. 
  
 (vi) Restrictions; Securities Exchange Listing. All Shares or other securities delivered under the
Plan pursuant to any Award or the exercise thereof shall be subject to such restrictions as the Committee may deem advisable under the Plan, applicable federal or state securities laws and regulatory requirements, and the Committee may cause
appropriate entries to be made or legends to be affixed to reflect such restrictions. If any securities of the Company are traded on a securities exchange or system, the Company shall not be required to deliver any Shares or other securities covered
by an Award unless and until such Shares or other securities have been admitted for trading on such securities exchange or system. 
  
 Section 7. Amendment and Termination; Adjustments 
  
 (a) Amendments to the Plan. The Board may amend, alter, suspend, discontinue or terminate the Plan at any time; provided, however,
that, notwithstanding any other provision of the Plan or any Award Agreement, without the approval of the shareholders of the Company, no such amendment, alteration, suspension, discontinuation or termination shall be made that, absent such
approval: 
  

 8 

 (i) would violate the rules or regulations of the NASDAQ National Market System or any
securities exchange that are applicable to the Company; or 
  
 (ii) would cause the Company to be unable, under the Code, to grant Incentive Stock Options under the Plan. 
  
 (b) Amendments to Awards. The Committee may waive any conditions of or rights of the Company under any outstanding Award,
prospectively or retroactively. Except as otherwise provided herein or in the Award Agreement, the Committee may not amend, alter, suspend, discontinue or terminate any outstanding Award, prospectively or retroactively, if such action would
adversely affect the rights of the holder of such Award, without the consent of the Participant or holder or beneficiary thereof. 
  
 (c) Correction of Defects, Omissions and Inconsistencies. The Committee may correct any defect, supply any omission or reconcile
any inconsistency in the Plan or any Award in the manner and to the extent it shall deem desirable to carry the Plan into effect. 
  
 Section 8. Income Tax Withholding 
  
 In order to comply with all applicable federal or state income tax laws or regulations, the Company may take such action as it deems appropriate to ensure
that all applicable federal or state payroll, withholding, income or other taxes, which are the sole and absolute responsibility of a Participant, are withheld or collected from such Participant. In order to assist a Participant in paying all or a
portion of the federal and state taxes to be withheld or collected upon exercise or receipt of (or the lapse of restrictions relating to) an Award, the Committee, in its discretion and subject to such additional terms and conditions as it may adopt,
may permit the Participant to satisfy such tax obligation by (i) electing to have the Company withhold a portion of the Shares otherwise to be delivered upon exercise or receipt of (or the lapse of restrictions relating to) such Award with a Fair
Market Value equal to the amount of such taxes or (ii) delivering to the Company Shares other than Shares issuable upon exercise or receipt of (or the lapse of restrictions relating to) such Award with a Fair Market Value equal to the amount of such
taxes. The election, if any, must be made on or before the date that the amount of tax to be withheld is determined. 
  
 Section 9. General Provisions 
  
 (a) No Rights to Awards. No Eligible Person, Participant or other Person shall have any claim to be granted any Award under the
Plan, and there is no obligation for uniformity of treatment of Eligible Persons, Participants or holders or beneficiaries of Awards under the Plan. The terms and conditions of Awards need not be the same with respect to any Participant or with
respect to different Participants. 
  
 (b)
Award Agreements. No Participant will have rights under an Award granted to such Participant unless and until an Award Agreement shall have been duly executed on behalf of the Company and, if requested by the Company, signed by the
Participant. 
  
 (c) Plan Provisions
Control. In the event that any provision of an Award Agreement conflicts with or is inconsistent in any respect with the terms of the Plan as set forth herein or subsequently amended, the terms of the Plan shall control. 
  

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 (d) No Limit on Other Compensation Arrangements. Nothing contained in the Plan
shall prevent the Company or any Affiliate from adopting or continuing in effect other or additional compensation arrangements, and such arrangements may be either generally applicable or applicable only in specific cases. 
  
 (e) No Right to Employment. The grant of an Award
shall not be construed as giving a Participant the right to be retained in the employ of the Company or any Affiliate, nor will it affect in any way the right of the Company or an Affiliate to terminate such employment at any time, with or without
cause. In addition, the Company or an Affiliate may at any time dismiss a Participant from employment free from any liability or any claim under the Plan or any Award, unless otherwise expressly provided in the Plan or in any Award Agreement.

  
 (f) Governing Law. The validity,
construction and effect of the Plan or any Award, and any rules and regulations relating to the Plan or any Award, shall be determined in accordance with the laws of the State of Delaware. 
  
 (g) Severability. If any provision of the Plan or any
Award is or becomes or is deemed to be invalid, illegal or unenforceable in any jurisdiction or would disqualify the Plan or any Award under any law deemed applicable by the Committee, such provision shall be construed or deemed amended to conform
to applicable laws, or if it cannot be so construed or deemed amended without, in the determination of the Committee, materially altering the purpose or intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction or
Award, and the remainder of the Plan or any such Award shall remain in full force and effect. 
  
 (h) No Trust or Fund Created. Neither the Plan nor any Award shall create or be construed to create a trust or separate fund of any
kind or a fiduciary relationship between the Company or any Affiliate and a Participant or any other Person. To the extent that any Person acquires a right to receive payments from the Company or any Affiliate pursuant to an Award, such right shall
be no greater than the right of any unsecured general creditor of the Company or any Affiliate. 
  
 (i) No Fractional Shares. No fractional Shares shall be issued or delivered pursuant to the Plan or any Award, and the Committee
shall determine whether cash shall be paid in lieu of any fractional Shares or whether such fractional Shares or any rights thereto shall be canceled, terminated or otherwise eliminated. 
  
 (j) Headings. Headings are given to the Sections and subsections of the Plan solely as a convenience
to facilitate reference. Such headings shall not be deemed in any way material or relevant to the construction or interpretation of the Plan or any provision thereof. 
  
 Section 10. Effective Date of the Plan 
  
 The Plan shall be effective as of August     , 2001, subject to approval by the shareholders of the Company within one year
thereafter. 
  
 Section 11. Term of the Plan 
  

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 No Award shall be granted under the Plan after ten years from the date set forth in Section 10 or any
earlier date of discontinuation or termination established pursuant to Section 7(a) of the Plan. However, unless otherwise expressly provided in the Plan or in an applicable Award Agreement, any Award theretofore granted may extend beyond such date.

  

 11Agreement for Waiver and Release of KEYSOP Benefits

 Exhibit 10.1 
  
 AGREEMENT 
 FOR 
 WAIVER AND RELEASE OF KEYSOP BENEFITS 
  
 This Agreement for Waiver and Release of KEYSOP Benefits (the “Agreement”) is entered into as of June 4, 2004 (the
“Execution Date”) between Joseph P. Micatrotto (“Executive”) and BUCA, Inc., a Minnesota corporation (the “Company”) (collectively, the “Parties”). 
  
 WHEREAS, Executive has been employed by the Company as its President and Chief Executive Officer pursuant to the
terms of the Amended and Restated Employment Agreement dated February 17, 1999, with various amendments thereto (the “Employment Agreement”); 
  
 WHEREAS, Executive has participated in the Buca Key Employee Share Option Plan (the “KEYSOP”); 
  
 WHEREAS, Executive has resigned his employment with the Company under
a Separation Agreement with the Company effective May 10, 2004 (the “Separation Agreement”) and the Company has accepted his resignation with the understanding that Executive would enter into this Agreement concerning the KEYSOP on the
terms and conditions set forth herein; and 
  
 WHEREAS, In
connection with such resignation of employment and with Section 3 of the Separation Agreement, Executive and the Company mutually desire to provide terms for Executive to waive and release all rights under the KEYSOP; 
  
 NOW, THEREFORE, In consideration of the premises and mutual agreements
set forth herein and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Parties agree as follows: 
  
 1. Amendment of Option Agreements. Pursuant to Section 5.3(d) of the KEYSOP document, the Parties hereby agree that Executive waives all
rights to receive any payments under the KEYSOP, including both vested and unvested benefits, and hereby releases the Company and the trustee of the KEYSOP from any claims under the KEYSOP. Notwithstanding Section 8(d)(i) of the Separation
Agreement, the release of claims provision of Section 8 of the Separation Agreement shall apply to any claims under the KEYSOP. 
  
 2. Return of Trust Assets to Company. The Parties understand that, pursuant to Section 12(d) of the trust agreement for the KEYSOP entitled
“Buca Key Employee 

 Share Option Plan Hedging Trust Agreement (Effective as of January 1, 2002),” the Executive will be deemed to have
failed to exercise all of his options under the KEYSOP within their respective exercise periods pursuant to the terms of the KEYSOP document and the Company will request that all assets of the trust related to such options of the Executive will be
returned to the Company. 
  
 3. Credit Toward Amounts Owed
by Executive to Company. The value of the vested benefits of the Executive under the KEYSOP shall be determined as of the close of business on June 4, 2004 (estimated to be about $400,000 before withholding described in Section 4 below) and
the trust assets related to such benefits shall be sold. The amount of such vested benefits (based on the actual sales proceeds and reduced by such withholding) shall be a credit towards amounts owed by Executive to Company in connection with the
Separation Agreement. No such credit shall be made with respect to unvested benefits under the KEYSOP. 
  
 4. Withholding of Taxes. The vested benefits described in Section 3 above shall be subject to federal and state income tax reporting and
withholding consistent with recent Company tax and withholding practices with respect to Executive’s pay. 
  
 IN WITNESS WHEREOF, The Parties have executed this Agreement as of the Execution Date set forth in the first paragraph. 
  
 /s/ Joseph P.
Micatrotto                         
 Joseph P. Micatrotto 
  
 BUCA, INC. 
  
 By: /s/ Peter J.
Mihajlov                         
  
 Its:
CEO                                       
           
  

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