Document:

Exhibit 10.2

 

Exhibit 10.2

BANK OF GRANITE CORPORATION

2007 STOCK INCENTIVE PLAN

ARTICLE I

GENERAL PROVISIONS

          1.1       Purpose of the Plan. This Plan is intended to promote the interests of
the Company by giving Eligible Individuals the opportunity to acquire a proprietary interest, or
otherwise increase their proprietary interest, in the Company as an incentive to provide or
continue their Service. Capitalized terms used in the Plan shall have the meanings given to them
in Appendix A attached hereto.

          1.2       Administration of the Plan.

          (a)       The Plan shall be administered by the Committee, which shall, subject to the terms of the
Plan and applicable law, have sole and plenary power and authority to administer the Plan,
including, but not limited to, the power and authority to:

          (i)       select Eligible Individuals to whom Awards may be made;

          (ii)       determine whether and to what extent any type of Awards, or combination thereof,
are to be awarded to Eligible Individuals;

          (iii)       determine the number of shares of Common Stock to be covered by an Award and the
other terms and conditions of such Award (including, but not limited to, the exercise price,
any vesting condition, restriction or limitation, any payments, rights or other matters to
be calculated in connection with any Awards, any deferred payment arrangement and any
vesting acceleration or forfeiture waiver regarding any Award and any securities or other
rights relating thereto);

          (iv)       determine whether performance criteria must be met as a condition to any rights
associated with any Award, establish any such performance criteria and certify whether, and
to what extent, such performance criteria have been attained;

          (v)       modify, amend or adjust the terms and conditions of any Award, including, but not
limited to, modifications, amendments, adjustments to, or replacement grants for, Awards if
the Committee determines, in its sole discretion, that the tax consequences of an Award to
the Company or a Participant differ from the consequences expected at the time an Award was
granted or changes, clarifications or interpretations of tax laws or regulations permit
Awards to be granted with more favorable tax consequences than originally anticipated;

          (vi)       determine under what circumstances, and the methods by which, an Award may be
settled in cash, Common Stock, other securities, other Awards or other property or canceled,
forfeited or suspended;

          (vii)       adopt, alter and repeal such administrative rules, guidelines and practices
governing the Plan;

 

 

          (viii)       interpret, administer, reconcile any inconsistency in, correct any default in
and supply any omission in, the terms and provisions of the Plan and any Award issued under
the Plan (and any other agreement, document, instrument, instruction or other communication
relating thereto); and

          (ix)       otherwise oversee the administration of the Plan and make any other determination
or take any other action the Committee deems necessary or desirable for the administration
of the Plan.

          (b)       Except to the extent prohibited by applicable law or the applicable rules of a Stock
Exchange, the Committee may allocate all or any portion of its responsibilities and powers to any
one or more of its members and may delegate all or any part of its responsibilities and powers to
any person or persons selected by it. Any such allocation or delegation may be revoked by the
Committee at any time. Except to the extent prohibited by applicable law or the applicable rules
of a Stock Exchange, the authority of the Committee hereunder may also be exercised by the Board at
any time and from time to time.

          (c)       Any determination made in respect of any Award by the Committee, the Board, or any other
person pursuant to delegated authority under the provisions of the Plan, shall be made in the sole
discretion of the Committee, the Board or such delegate at the time the Award is made or, unless in
contravention of any express term of the Plan, at any time thereafter. All decisions made by the
Committee, the Board or any delegate shall be final and binding on all persons, including the
Company and all Participants.

          (d)       Neither the Company nor any of its Affiliates makes any representations with respect to
the tax consequences of any Award to a Participant, and by the acceptance of such Award, each
Participant acknowledges the same and agrees to hold the Company and its Affiliates harmless from
any adverse consequences to the Participant under the Code with respect to the Award or any
underlying Shares or other property, whether resulting from any action or inaction or omission of
the Company or its Affiliates pursuant to the Plan or otherwise.

          (e)       The Committee will approve and oversee procedures to be applied with respect to the
granting of Awards (including the timing thereof) to promote consistency in the Company’s practices
with respect to the granting of Awards and compliance with applicable laws, regulations and any
applicable terms of the Plan regarding the issuance, valuation, dating and accounting treatment of
Awards.

          1.3       Eligible Individuals. Only Employees are eligible to receive Awards of
Incentive Stock Options. The persons eligible to receive all other Awards are (i) Employees, (ii)
non-employee members of the Board or the board of directors or other similar governing body of any
Subsidiary, (iii) consultants and other independent advisors who provide Services, directly or
indirectly, to the Company or any Subsidiary and (iv) to the extent permitted by law, any person
prospectively a member of categories (i), (ii) or (iii) above.

          1.4       Stock Subject to the Plan.

          (a)       The capital stock of the Company with respect to which Awards may be made under the Plan
shall be either currently authorized but unissued shares of Common Stock or shares of Common Stock
held by the Company as treasury shares, including shares acquired by purchase. Subject to
adjustment as provided in Section 1.5 hereof, the maximum number of shares of Common Stock that may

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be delivered to Participants and their beneficiaries under the Plan shall be 750,000 shares of
Common Stock.

          (b)       The shares of Common Stock that may be delivered to Participants and their beneficiaries
under the Plan are subject to the following additional restrictions:

          (i)       The maximum number of shares of Common Stock that may be issued in respect of
Options intending to qualify as Incentive Stock Options shall be 750,000 shares;

          (ii)       The maximum number of Shares that may be issued pursuant to Awards of Restricted
Stock or otherwise as outright grants of Common Stock pursuant to Article VI hereof shall be
400,000 shares; and

          (iii)       For Awards that are intended to be “performance-based compensation” (as that term
is used for purposes of Section 162(m) of the Code) (a “Qualifying Award”), no more
than the following amounts may be granted pursuant to such Qualifying Awards to any one
individual during any one calendar year period: for Common Stock, the greater of (1) 5,000
shares of Common Stock, subject to adjustment as provided in Section 1.5 hereof, and (2)
Common Stock with a Fair Market Value of $100,000 as of the date of grant, and with respect
to Awards settled in cash, $100,000. The Committee, in its sole discretion, may grant an
Award to any Participant with the intent that such award be a Qualifying Award. The right to
receive or retain any award granted as a Qualifying Award (other than an Option or SAR)
shall be conditional upon the achievement of specified performance goals during a calendar
year or such other period (a “Performance Period”) as may be established by the
Committee. Performance goals shall be established in writing by the Committee prior to the
beginning of each Performance Period, or at such other time no later than such time as is
permitted by the applicable provisions of the Code. Such performance goals, which may vary
from Participant to Participant and Award to Award, shall be based upon the attainment of
specific amounts of, or increases in, one or more of the following: the Fair Market Value of
Common Stock, revenues, operating income, cash flow, earnings before or after income taxes
(including earnings before interest, taxes depreciation and amortization), net income, net
income before or after income taxes, earnings per share, stockholders’ equity, return on
equity, return on investment or capital, return on assets, share price profitability or
profit margins, loan growth, deposit growth, market share or strategic business objectives
consisting of one or more objectives based on meeting business expansion goals and goals
relating to acquisitions or divestitures, all whether applicable to the Company or any
relevant subsidiary or any combination thereof as the Committee may deem appropriate. Each
performance goal may be expressed on an absolute and/or relative basis, may be based on, or
otherwise employ, comparisons based on internal targets, the past performance of the Company
and/or the past or current performance of other companies, may provide for the inclusion,
exclusion or averaging of specified items in whole or in part, such as realized gains or
losses on strategic investments, discontinued operations, extraordinary items, accounting
changes, and unusual or nonrecurring items, and, in the case of earnings-based measures, may
use or employ comparisons relating to capital, stockholders’ equity and/or shares
outstanding, assets or net assets. Prior to the payment of any Award granted as a
Qualifying Award, the Committee shall certify in writing that the performance goals were
satisfied. In determining the actual size of a Qualifying Award for a Performance Period,
the Committee may, in its sole and plenary discretion reduce or eliminate the amount of the
Award earned in the Performance Period, even if applicable Performance Goals have been
attained.

          (c)       To the extent any shares of Common Stock covered by an Award are not delivered to a
Participant or beneficiary because the Award is forfeited or canceled, or the shares of Common
Stock are

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not delivered because the Award is settled in cash or such shares are used to satisfy any
exercise price of such Award or any applicable tax withholding obligation, such shares shall not be
deemed to have been delivered for purposes of determining the maximum number of shares of Common
Stock available for delivery under the Plan; provided, however, that in no event shall such
undelivered shares increase the number of shares that may be granted under the Plan as Incentive
Stock Options.

          1.5       Adjustments in Common Stock. Should any change be made to the Common
Stock by reason of any stock split, stock dividend, recapitalization, combination of shares,
exchange of shares, extraordinary distribution, split-up or spin-off or other similar change, the
Committee shall cause appropriate adjustments to be made to (i) the maximum number and/or class of
securities issuable under the Plan and applicable sub-limits regarding specific types of Awards and
(ii) the number and/or class of securities and the exercise price per share in effect under each
outstanding Award, in order to preserve the value of the Award. The adjustments determined by the
Committee shall be final, binding and conclusive.

          1.6       Settlement of Awards. The obligation to make payments and distributions
with respect to Awards may be (i) subject to such conditions, restrictions and contingencies as the
Committee shall determine, and (ii) satisfied through cash payments, the delivery of shares of
Common Stock, the issuance of replacement Awards, or any combination thereof as the Committee shall
determine.

          1.7       Exchange and Buy Out Provisions; Limitations on Repricing. The
Committee may at any time offer to exchange or buy out any previously granted Award for a payment
in cash, shares of Common Stock, other Awards or property based on such terms and conditions as the
Committee shall determine and communicate to a Participant at the time that such offer is made.
Notwithstanding the foregoing, a repricing (as defined for this purpose by Stock Exchange rules and
applicable interpretations thereof), of an Option or SAR shall be permitted only with the approval
of the Company’s stockholders to the extent such approval is required under the rules of the
Company’s Stock Exchange.

          1.8       Substitute Awards. Awards may, in the discretion of the Committee, be
granted under the Plan in assumption of, or in substitution for, outstanding awards previously
granted by the Company or any of its affiliates or a company acquired by the Company or any of its
Affiliates or with which the Company or any of its Affiliates combines (“Substitute
Awards”). The number of Shares underlying any Substitute Awards shall be counted against the
aggregate number of Shares available for Awards under the Plan; provided, however,
that Substitute Awards issued in connection with the assumption of, or in substitution for,
outstanding awards previously granted by an entity that is acquired by the Company or any of its
Affiliates or with which the Company or any of its Affiliates combines shall not be counted against
the aggregate number of Shares available for Awards under the Plan; provided further,
however, that Substitute Awards issued in connection with the assumption of, or in
substitution for, outstanding stock options intended to qualify for special tax treatment under
Sections 421 and 422 of the Code that were previously granted by an entity that is acquired by the
Company or any of its Affiliates or with which the Company or any of its Affiliates combines shall
be counted against the aggregate number of Shares available for Incentive Stock Options under the
Plan.

ARTICLE II

OPTIONS

          2.1       General. The Award of an Option entitles the Participant to purchase a
specified number of shares of Common Stock at an exercise price established by the Committee.

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          2.2       Award of Options. Each Option awarded under this Plan shall be subject
to such terms and conditions determined by the Committee. Each Option shall be evidenced by one or
more documents in the form approved by the Committee, and such Award shall be effective as of the
Grant Date. A Participant’s entitlement to an Award may be conditioned on the Participant’s
execution of such documents as required by the Committee.

          2.3       Exercise Price. Subject to the terms and conditions set forth herein,
except as otherwise established by the Committee at the time an Option is granted and set forth in
the applicable Award Agreement, the exercise price per share associated with each Option shall not
be less than 100% of the Fair Market Value per share of Common Stock on the Grant Date of the
Award.

          2.4       Exercise Procedures. An Option shall be exercisable at the times and in
accordance with the procedures set forth herein and the procedures established by the Committee and
set forth in the documents evidencing the Award.

          2.5       Payment of the Exercise Price.

          (a)       No Common Stock shall be delivered pursuant to any exercise of an Option until payment in
full of the aggregate exercise price therefor is received by the Company, and the Participant has
paid to the Company an amount equal to any federal, state, local and foreign income and employment
taxes required to be withheld. Such payments may be made in cash (or its equivalent) or, (1) by
exchanging shares of Common Stock owned by the Participant (which are not the subject of any pledge
or other security interest) or (2) if there shall be a public market for the Common Stock at such
time, subject to such rules as may be established by the Committee, through delivery of irrevocable
instructions to a broker to sell the Common Stock otherwise deliverable upon the exercise of the
Option and to deliver promptly to the Company an amount equal to the aggregate Exercise Price, or
by a combination of the foregoing; provided that the combined value of all cash and cash
equivalents and the Fair Market Value of any such Common Stock so tendered to the Company as of the
date of such tender is at least equal to such aggregate exercise price and the amount of any
federal, state, local or foreign income or employment taxes required to be withheld.

          (b)       Wherever in the Plan or any Award Agreement a Participant is permitted to pay the exercise
price of an Option or taxes relating to the exercise of an Option by delivering shares of Common
Stock, the Participant may, subject to procedures satisfactory to the Committee, satisfy such
delivery requirement by presenting proof of beneficial ownership of such Common Stock, in which
case the Company shall treat the Option as exercised without further payment and shall withhold
such number of shares from the Common Stock acquired by the exercise of the Option.

          2.6       Termination of Service. The Committee shall determine the terms and
conditions on which a Participant may exercise an Option following the termination of such
Participant’s Service, and such terms and conditions shall be set forth in applicable Award
Agreement.

          2.7       Incentive Stock Options. All Incentive Stock Options shall be subject
to the following:

          (a)       Incentive Stock Options may be awarded only to Employees;

          (b)       An Incentive Stock Option’s exercise price per share of Common Stock shall not be less
than 100% of the Fair Market Value per share of Common Stock on the Grant Date of the Award;

          (c)       The aggregate Fair Market Value of the shares of Common Stock (determined as of the
respective Grant Date(s)) for which one or more Incentive Stock Options awarded to any Employee
under

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the Plan (or any other option plan of the Company or any parent or Subsidiary) may for the
first time become exercisable during any one calendar year shall not exceed $100,000. To the
extent an Employee holds two or more Incentive Stock Options which become exercisable for the first
time in the same calendar year, the foregoing limitation on the exercisability of such Incentive
Stock Options shall be applied on the basis of the order in which such Options are awarded; and

          (d)       If an Employee to whom an Incentive Stock Option is awarded is a 10% Stockholder, then the
Incentive Stock Option’s exercise price per share of Common Stock shall not be less than 110% of
the Fair Market Value per share of Common Stock on the Grant Date of the Award, and the Incentive
Stock Option’s term shall not exceed five years from the date of the Award.

          (e)       If an Option is intended to be an Incentive Stock Option, and if for any reason such
Option (or any portion thereof) shall not qualify as an Incentive Stock Option, then to the extent
of such nonqualification, such Option (or portion thereof) shall be regarded as a Non-Qualified
Stock Option appropriately granted under the Plan; provided that such Option (or portion thereof)
otherwise complies with the Plan’s requirements relating to Non-Qualified Stock Options.

          2.8       Rights as Stockholder. Except as provided in this Plan or in the
applicable Award Agreement, a Participant holding Options shall not have, with respect to such
instruments, any of the rights of a stockholder of the Company, including, the right to vote as a
stockholder of the Company or any right to receive dividends.

ARTICLE III

STOCK APPRECIATION RIGHTS

          3.1       General. The Award of a Stock Appreciation Right entitles the
Participant to receive, in Common Stock (unless otherwise provided in the applicable Award
Agreement), value equal to (or otherwise based on) the excess of: (i) the Fair Market Value of a
specified number of shares of Common Stock; over (ii) the exercise price for such shares
established by the Committee for such Stock Appreciation Right, with cash payable for any
fractional share of Common Stock.

          3.2       Award of Stock Appreciation Rights. Each Stock Appreciation Right
awarded under this Plan shall be subject to such terms and conditions determined by the Committee.
Each Stock Appreciation Right shall be evidenced by an Award Agreement, and such Award shall be
effective as of the Grant Date. A Participant’s entitlement to an Award may be conditioned on the
Participant’s execution of such documents as required by the Committee.

          3.3       Exercise Price. The exercise price per share associated with each Stock
Appreciation Right shall be fixed by the Committee and, subject to the terms and conditions set
forth herein, unless otherwise determined by the Committee at the time of grant and set forth in
the applicable Award Agreement may not be less than the Fair Market Value per share of Common Stock
on the Grant Date of the Award.

          3.4       Exercise Procedures. A Stock Appreciation Right shall be exercisable at
the times and in accordance with the procedures set forth herein and the procedures established by
the Committee and set forth in the applicable Award Agreement. Generally, a Stock Appreciation
Right may be exercised by surrendering the applicable portion of such Stock Appreciation Right and,
upon such exercise and surrender, the Participant shall be entitled to receive the amount described
in Section 3.1.

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          3.5       Termination of Service. The Committee shall determine the terms and
conditions on which a Participant may exercise a Stock Appreciation Right following the termination
of such Participant’s Service, and such terms and conditions shall be set forth in the documents
evidencing the Award.

          3.6       Rights as Stockholder. Except as provided in this Plan or in the
documents evidencing an Award of a Stock Appreciation Right, a Participant holding a Stock
Appreciation Right shall not have, with respect to such instrument, any of the rights of a
stockholder of the Company, including, the right to vote as a stockholder of the Company or any
right to receive dividends.

ARTICLE IV

RESTRICTED STOCK AND RESTRICTED STOCK UNITS

          4.1       General. An Award of Restricted Stock is a grant to a Participant of a
specified number of shares of Common Stock. An Award of Restricted Stock Units is the right to
receive a specified number of shares of Common Stock at a future date upon satisfaction of the
conditions specified in the Award.

          4.2       Awards of Restricted Stock and Restricted Stock Units. Restricted Stock
and Restricted Stock Units awarded under this Plan shall be subject to such terms and conditions
determined by the Committee. Subject to the provisions of this Plan, Awards of Restricted Stock
and Restricted Stock Units shall be evidenced by an Award Agreement, and such Award shall be
effective as of the Grant Date.

          4.3       Termination of Service. The Committee shall determine the terms and
conditions on which a Participant’s Restricted Stock or Restricted Stock Units shall be forfeited
or subject to repurchase following the termination of such Participant’s Service, and such terms
and conditions shall be set forth in the documents evidencing the Award.

          4.4       Rights as Stockholder. Except as provided in this Plan or in the
documents evidencing an Award of Restricted Stock, a Participant holding Restricted Stock shall
have, with respect to the shares of Restricted Stock, all of the rights of a stockholder of the
Company holding the class or series of capital stock that is the subject of the Restricted Stock,
including, if applicable, the right to vote the shares and the right to receive any dividends.
Unless otherwise determined by the Committee, any cash dividends paid in respect of Restricted
Stock shall be deferred and reinvested in additional Restricted Stock, with such additional shares
being subject to the same terms and conditions as the Restricted Stock in respect of which such
dividends were paid. Except as provided in this Plan or in the documents evidencing an Award of a
Restricted Stock Units, a Participant holding Restricted Stock Units shall not have, with respect
to such instrument, any of the rights of a stockholder of the Company, including, the right to vote
as a stockholder of the Company or any right to receive dividends.

ARTICLE V

PERFORMANCE UNITS

          5.1       General. A Performance Unit is the right to receive a specified value,
as established by the Committee at the time of the Award, based on the extent to which specified
performance goals are achieved.

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          5.2       Awards of Performance Units. Performance awarded under this Plan shall
be subject to such terms and conditions determined by the Committee. Subject to the provisions of
this Plan, Awards of Performance Units shall be evidenced by one or more documents in the form
approved by the Committee. The performance goals applicable to a Performance Unit shall be among
those specified in, and established pursuant to, Section 1.4(b)(iii) with respect to Qualified
Awards. Performance Units shall be earned contingent upon the attainment of such performance
goals. At the time of the Award of each Performance Unit, the Committee shall establish, with
respect to each such Award, a Performance Period during which performance shall be measured.

          5.3       Performance Unit Value. Each Performance Unit shall have a maximum
dollar value established by the Committee at the time of the Award. Performance Units earned will
be determined by the Committee in respect of a Performance Period in relation to the degree of
attainment of applicable performance goals. The measure of a Performance Unit may, in the
discretion of the Committee, be equal to the Fair Market Value of one share of Common Stock.

          5.4       Settlement of Performance Units. Following the end of Performance
Period, a Participant holding Performance Units will be entitled to receive payment of an amount,
not exceeding the maximum value of the Performance Units, based on the achievement of the
performance goals for such Performance Period, as determined by the Committee. Payment of
Performance Units shall be made in cash or Common Stock, as determined by the Committee.

ARTICLE VI

OTHER AWARDS

          6.1       Common Stock Related Awards. The Committee may, in its sole and plenary
discretion, grant to any Participant such other awards that may be denominated or payable in,
valued in whole or in part by reference to, or otherwise based on or related to, Common Stock or
factors that may influence the value of such Common Stock, including, without limitation,
convertible or exchangeable debt securities, other rights convertible or exchangeable into Common
Stock, purchase rights for Common Stock, awards with value and payment contingent upon the
performance of the Company or specified subsidiaries, Affiliates or other business units thereof or
other factors determined by the Committee. The Committee shall determine the terms and conditions
of such awards in its sole and plenary discretion.

          6.2       Bonus Shares. The Committee also may, in its sole and plenary
discretion, grant Common Stock as a bonus, or may grant other awards in lieu of obligations of the
Company or a subsidiary to pay cash or deliver other property under this Plan or under other plans
or compensatory arrangements. The Committee shall determine the terms and conditions of such
awards in its sole and plenary discretion.

ARTICLE VII

TRANSFERABILITY

          7.1       Transfer Restrictions. Except as set forth in Section 7.2 or as
otherwise determined by the Committee, Awards may be transferred only by will or the laws of
inheritance upon the death of a Participant and may not be assigned, pledged, hypothecated or
transferred in any manner. Upon any

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attempt to assign, pledge, hypothecate or transfer an Option, a Stock Appreciation Right,
Restricted Stock or Restricted Stock Unit, such Award shall immediately be cancelled and
terminated.

          7.2       Transfer Exceptions. The Committee, may, in its sole discretion, to the
extent permitted by applicable law, permit Awards to be assigned in whole or in part during a
Participant’s lifetime as a gift or without consideration to (i) one or more members of the
Participant’s immediate family, (ii) a trust in which Participant and/or one or more of such family
members hold more than 50% of the beneficial interest, (iii) an entity in which more than 50% of
the voting interests are owned by the Participant and/or one or more of such family members or (iv)
such other transferees as may be permitted by the Committee. The terms applicable to the assigned
Awards shall be the same as those in effect for such Award immediately prior to the assignment.

ARTICLE VIII

CHANGE OF CONTROL TRANSACTIONS

          8.1       General.

          (a)       The Committee may, in its sole and absolute discretion and on such terms and conditions as
it may establish, determine that prior to or in connection with the consummation of a Change of
Control, (i) any or all outstanding Awards shall become fully exercisable (if applicable), vested
(if applicable) and transferable.

          (b)       Unless otherwise determined by the Committee, upon consummation of a Change of Control in
which the Company is not the surviving entity, (i) all outstanding exercisable Awards, to the
extent not exercised, shall terminate and cease to be outstanding, except to the extent expressly
assumed by the successor entity (or parent thereof), and (ii) all unvested Awards shall be
forfeited and cancelled.

          (c)       Unless otherwise determined by the Committee, upon consummation of a Change of Control in
which the Company is the surviving entity, all Awards shall remain outstanding in full force and
effect on the same terms and conditions.

          8.2       Settlement of Awards in Change of Control Transactions. The Committee
may, in its sole and absolute discretion in connection with a Change of Control, cancel any
outstanding Award and pay or deliver, or cause to be paid or delivered, to the holder thereof an
amount in cash or securities having a value (as determined by the Committee) equal to the product
of (i) the number of shares of Common Stock or other amount of other property subject to such
Award, and (ii) the amount, if any, by which (A) the formula or fixed price per share paid to
holders of Common Stock pursuant to such Change of Control, exceeds (B) any exercise price
associated with such Award.

          8.3       Termination of Consent and Purchase Rights. In connection with any
Change of Control, the Committee shall have the right to provide for the immediate termination of
any consent, repurchase or first refusal rights of the Company in respect of any outstanding
Awards.

          8.4       Right to Consummate Change of Control Transactions. The issuance of
Awards under the Plan shall in no way affect the right of the Company to adjust, reclassify,
reorganize or otherwise change its capital or business structure or to merge, enter into a share
exchange, dissolve, liquidate or sell or transfer all or any part of its business or assets.

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ARTICLE IX

MISCELLANEOUS

          9.1       No Right to Company Assets. Neither a Participant nor any other person
shall, by reason of participation in the Plan, acquire any right in or title to any assets, funds
or property of the Company or any parent or Subsidiary, including, without limitation, any specific
funds, assets, or other property which the Company or any parent or Subsidiary, in its sole
discretion, may set aside in anticipation of a liability under the Plan. A Participant shall have
only a contractual right to the Common Stock or amounts, if any, payable under the Plan, unsecured
by any assets of the Company or any parent or Subsidiary, and nothing contained in the Plan shall
constitute a guaranty that the assets of the Company or any parent or Subsidiary shall be
sufficient to pay any benefits to any person.

          9.2       No Rights to Awards. No Participant or other Person shall have any
claim to be granted any Award, and there is no obligation for uniformity of treatment of
Participants or holders or beneficiaries of Awards. The terms and conditions of Awards and the
Committee’s determinations and interpretations with respect thereto need not be the same with
respect to each Participant and may be made selectively among Participants, whether or not such
Participants are similarly situated.

          9.3       No Employment Rights. The Plan does not constitute a contract of
employment, and the selection of an Eligible Individual to receive an Award will not give a
Participant the right to be retained in the employ of the Company or any parent or Subsidiary, nor
any right or claim to any benefit under the Plan, unless such right or claim has specifically
accrued under the terms of the Plan.

          9.4       Form and Time of Elections. Unless otherwise specified herein, each
election required or permitted to be made by any Participant or other person entitled to benefits
under the Plan, and any permitted modification, or revocation thereof, shall be in writing filed
with the Committee at such times, in such form, and subject to such restrictions and limitations,
not inconsistent with the terms of the Plan, as the Committee shall require.

          9.5       Tax Withholding. All distributions under the Plan are subject to
withholding of all applicable taxes, and the Committee may condition the delivery of any shares or
other benefits under the Plan on satisfaction of the applicable withholding obligations. The
Committee, in its discretion, and subject to such requirements as the Committee may impose prior to
the occurrence of such withholding, may permit such withholding obligations to be satisfied through
cash payment by the Participant, through the surrender of shares of Common Stock which the
Participant already owns, or through the surrender of shares of Common Stock to which the
Participant is otherwise entitled under the Plan.

          9.6 Effective Date and Term. The Plan shall become effective when adopted
by the Board, but no Award made under the Plan may be exercised, and no shares of Common Stock
shall be issued pursuant to any Award, until the Plan is approved by the Company’s stockholders.
In addition, no Incentive Stock Option shall be deemed to have been awarded unless and until this
Plan is approved by the Company’s stockholders. If stockholder approval is not obtained within 12
months after the date of the Board’s adoption of the Plan, then all Awards made previously under
the Plan shall terminate and cease to be outstanding. No further Awards may be made under the Plan
upon the earlier of (i) the expiration of the ten-year period from the date the Plan is
adopted by the Board, (ii) the date on which all shares of Common Stock available for issuance
under the Plan shall have been issued.

          9.7       Amendment of the Plan. The Board shall have complete and exclusive
power and authority to amend or modify the Plan in any or all respects, except that no such
amendment or

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modification that is prohibited absent stockholder approval under applicable laws,
regulations, or Stock Exchange requirements shall be effective unless such required stockholder
approval is obtained.

          9.8       Amendment, Modification and Cancellation of Outstanding Awards. The
Committee may amend, modify, suspend, cancel, terminate, discontinue, waive any conditions or
rights under, any Award, Award Agreement or related documents in any manner, prospectively or
retroactively; provided, unless otherwise provided in the applicable Award Agreement, however,
except as set forth in the Plan, that no such amendment, modification, alteration, suspension,
discontinuation, cancellation or termination that would materially impair the rights of any
Participant under any outstanding Award shall not to that extent be effective without the consent
of the impaired Participant or such Participant’s representative or beneficiary.

          9.9       Adjustment of Awards Upon the Occurrence of Certain Unusual or Nonrecurring
Events. In addition to, and without limiting authority otherwise granted to the Committee
hereunder, the Committee is hereby authorized to make adjustments in the terms and conditions of,
and the criteria included in, Awards in recognition of unusual or nonrecurring events (including,
without limitation, the events described in Section 1.5 or the occurrence of a Change of Control)
affecting the Company, any Affiliate, or the financial statements of the Company or any Affiliate,
or of changes in applicable rules, rulings, regulations or other requirements of any governmental
body or securities exchange, accounting principles or law (i) whenever the Committee, in its sole
and plenary discretion, determines that such adjustments are appropriate or desirable, including,
without limitation, providing for a substitution or assumption of Awards, accelerating the
exercisability of, lapse of restrictions on, or termination of, Awards or providing for a period of
time for exercise prior to the occurrence of such event, (ii) if deemed appropriate or desirable by
the Committee, in its sole and plenary discretion, by providing for a cash payment to the holder of
an Award in consideration for the cancellation of such Award, including, in the case of an
outstanding Option or SAR, a cash payment to the holder of such Option or SAR

          9.10       Governing Law. This Plan shall be governed and construed in accordance
with the laws of the State of Delaware, without regard to conflicts of law principles thereof.

          9.11       Severability. If any provision of this Plan or the application thereof
to any person or circumstance shall be invalid or unenforceable to any extent, the remainder of
this Plan and the application of such provision to other persons or circumstances shall not be
affected thereby and shall be enforced to the greatest extent permitted by law.

          9.12       Indemnification. No member of the Board, the Committee or any employee
of the Company (each such person, a “Covered Person”) shall be liable for any action taken
or omitted to be taken or any determination made in good faith with respect to the Plan or any
Award hereunder. Each Covered Person shall be indemnified and held harmless by the Company against
and from (i) any loss, cost, liability or expense (including attorneys’ fees) that may be imposed
upon or incurred by such Covered Person in connection with or resulting from any action, suit or
proceeding to which such Covered Person may be a party or in which such Covered Person may be
involved by reason of any action taken or omitted to be taken under the Plan or any Award Agreement
and (ii) any and all amounts paid by such Covered Person, with the Company’s approval, in
settlement thereof, or paid by such Covered Person in satisfaction of any judgment in any such
action, suit or proceeding against such Covered Person; provided that the Company shall
have the right, at its own expense, to assume and defend any such action, suit or proceeding, and,
once the Company gives notice of its intent to assume the defense, the Company shall have sole
control over such defense with counsel of the Company’s choice. The foregoing right of
indemnification shall not be available to a Covered Person to the extent that a court of competent
jurisdiction in a final judgment or other final adjudication, in either case not subject to further
appeal, determines that the acts or omissions of such Covered Person giving rise to the
indemnification

11

 

claim resulted from such Covered Person’s bad faith, fraud or willful criminal act or omission
or that such right of indemnification is otherwise prohibited by law or by the Company’s
Certificate of Incorporation or Bylaws. The foregoing right of indemnification shall not be
exclusive of any other rights of indemnification to which Covered Persons may be entitled under the
Company’s Certificate of Incorporation or Bylaws, as a matter of law, or otherwise, or any other
power that the Company may have to indemnify such persons or hold them harmless.

12

 

APPENDIX A

DEFINED TERMS

          The following terms shall have the following meanings under the Plan:

          “Affiliate” means (a) any entity that, directly or indirectly, is controlled by,
controls or is under common control with, the Company and (b) any entity in which the Company has a
significant equity interest, in either case as determined by the Committee.

          “Award” means the issuance of an Option, Stock Appreciation Right, Restricted Stock,
Restricted Stock Units, Performance Units or other awards described in Article VI hereof.

          “Award Agreement” means agreements, contracts or other instrument or communications
evidencing any Award, which may, but need not, require execution or acknowledgement by a
Participant.

          “Board” means the Board of Directors of the Company.

          A “Change of Control” shall (a) have the meaning set forth in an Award Agreement or
(b) if there is no definition set forth in an Award Agreement, mean the occurrence of any of the
following events:

          (i)       any “person” (as such term is defined in Section 7(j)(8)(A) of the Change in Bank Control
Act of 1978), directly or indirectly, acquires beneficial ownership of voting stock, or acquires
irrevocable proxies or any combination of voting stock and irrevocable proxies, representing fifty
percent (50%) or more of any class of voting securities of the Company, or acquires control of in
any manner the election of a majority of the directors of the Company;

          (ii)       the Company consolidates or merges with or into another corporation, association, or
entity, or is otherwise reorganized, where the Company is not the surviving corporation in such
transaction and the holders of the voting securities of the Company immediately prior to such
acquisition own less than a majority of the voting securities of the surviving entity immediately
after the transaction; or

          (iii)       all or substantially all of the assets of the Company are sold or otherwise transferred
to or are acquired by any other corporation, association, or other person, entity, or group.

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

          “Committee” means the Compensation Committee of the Board or such other committee of
the Board as the Board may designate.

          “Common Stock” means the common stock of the Company.

          “Company” means Bank of Granite Corporation, a Delaware corporation, and any successor
corporation to all or substantially all the assets or voting capital stock of Bank of Granite
Corporation that shall by appropriate action adopt the Plan.

          “Eligible Individuals” means the individuals described in Section 1.3.

          “Employee” means an individual who is in the employ of the Company (or any
Subsidiary), subject to the control and direction of the employer entity as to both the work to be
performed and the manner and method of performance.

A-1

 

          “Exchange Act” means the Securities Exchange Act of 1934, as amended.

          “Fair Market Value” means, (a) with respect to property other than Common Stock on any
relevant date, the fair market value of such property determined by methods or procedures as shall
be established from time to time by the Committee and (b), with respect to any share of Common
Stock on any relevant date shall be determined in accordance with the following provisions:

          (i)       If the Common Stock is at the time neither listed on any Stock Exchange nor traded
on the Nasdaq National Market, then the Fair Market Value shall be determined by the
Committee after taking into account such factors as the Committee shall deem appropriate.

          (ii)       If the Common Stock is at the time traded on any Nasdaq market, then the Fair
Market Value shall be the closing selling price per share of Common Stock on the date in
question, as such price is reported by the National Association of Securities Dealers on
such Nasdaq market.

          (iii)       If the Common Stock is at the time listed on any Stock Exchange, then the Fair
Market Value shall be the closing selling price per share of Common Stock on date in
question on the Stock Exchange determined by the Committee to be the primary market for the
Common Stock, as such price is officially quoted in the composite tape of transactions on
such exchange.

     “Grant Date” with respect to an Award means the grant date for such Award as
determined for financial statement reporting purposes pursuant to Financial Accounting Standards
Board Statement of Financial Accounting Standards No. (revised 2004) Share-Based Payment, as
modified or supplemented or interpreted).

     “Incentive Stock Option” means an Option that satisfies the requirements of Section
422 of the Code.

     “Non-Qualified Stock Option” means an Option that does not satisfy the requirements of
Section 422 of the Code.

     “Option” means an Incentive Stock Option or Non-Qualified Stock Option issued under
the Plan.

     “Participant” means any person to whom an Award is made under the Plan.

     “Plan” means the Bank of Granite Corporation 2007 Stock Incentive Plan, as set forth
herein.

     “Restricted Stock” means Common Stock awarded to a Participant pursuant to the Plan.

     “Restricted Stock Units” mean the right to receive a specified number of shares of
Common Stock at a future date upon satisfaction of specified conditions.

     “Service” means the provision of services to the Company (or any Subsidiary) by a
person in the capacity of an Employee, a non-employee member of the board of directors or a
consultant or independent advisor.

     “Stock Exchange” means The NASDAQ Stock Market, or should the Company’s Common Stock
cease to be listed on The NASDAQ Stock Market, any other stock exchange, automated quotation system
or trading market on which the Company’s Common Stock is then primarily listed or traded.

A-2

 

     “Subsidiary” means any corporation or limited liability company with respect to which
the Company owns, directly or indirectly, equity interests possessing 50% or more of the total
combined voting power of all classes of equity of such entity.

     “10% Stockholder” means the owner of Common Stock (as determined under Section 424(d)
of the Code) possessing more than 10% of the total combined voting power of all classes of Common
Stock of the Company (or any parent or Subsidiary).

A-3EX-10.5 Consulting Agreement

 

Exhibit 10.5

CONSULTING AGREEMENT

     THIS CONSULTING AGREEMENT (this “Agreement”), dated March 18, 2004, (the “Effective Date”),
is made and entered by and between BIOHEART, INC., a Florida corporation (the “Company”) and
Richard Spencer (the “Consultant”).

R E C I T A T I O N S

     A. The Company believes that the Consultant’s Services will be extremely beneficial to the
Company and wishes to obtain such Services and the benefit of the Consultant’s knowledge and
experience.

     B. The Company desires to retain the services of the Consultant and the Consultant desires to
provide services to the Company, subject to the terms and conditions set forth in this Agreement.

O P E R A T I V E   P R O V I S I O N S

     In consideration of the foregoing recitations, the mutual promises hereinafter set forth and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto, intending legally to be bound, hereby covenant and agree as
follows:

ARTICLE I

Engagement

     1.1 Engagement of Consultant. The Company hereby engages the Consultant and
Consultant hereby agrees to provide consulting services as set forth in Section 1.2 of this
Agreement (the “Services”).

     1.2 Services to be Provided.

          A. Services. During the term of this Agreement, the Consultant personally shall perform the
following services: (i) assisting Bioheart in reaching its financial goals; (ii) providing
leadership training to Bioheart’s board of directors, officers, employees and consultants; and
(iii) appearing at selected events as mutually agreed upon by Consultant and Bioheart (collectively
referred to herein as the “Services”).

          B. Performance of Services. The Consultant is responsible for reasonably determining the
method, details and means of performing the services required under this Agreement. Consultant’s
business and affairs shall be conducted in accordance with all applicable federal, state and local
laws and regulations. Such consultation may be by telephone, in writing or by other method of communication which the Company and the Consultant mutually
agree.

-1-

 

          C. Hours. Notwithstanding any other provision of this Agreement, it is agreed that the
Consultant shall not be required to devote any minimum amount of time during any particular week or
year, but shall perform services pursuant to this Agreement on an “as needed” basis at such times
and for such periods as the Company and Consultant mutually agree. The Consultant shall use his
best efforts in good faith to provide consulting services when requested to do so by the Company.

     1.3 Term of Agreement. The term of this Agreement shall commence on the Effective
date and shall continue until March 18, 2007 (the “Term”), unless terminated in accordance with the
provisions of Article 3 hereof. This Agreement may be renewed for an additional period(s) only
upon the mutual written agreement of the parties.

     1.4 Nature of Consulting Relationship. It is agreed and understood by the parties to
this Agreement that, for all purposes, during the term of this Agreement, the Consultant shall
serve solely as an independent contractor of the Company and shall not be an employee of the
Company in any capacity. Nothing in this Agreement shall be interpreted or construed as creating
or establishing the relationship of employer and employee between the Consultant and Company. As
an independent contractor, the Consultant (a) shall accept any directions issued by the Company
pertaining to the goals to be attained and the results to be achieved by him, but shall be solely
responsible for the manner and hours in which he will perform his services under this Agreement,
(b) shall not be entitled to any employee or fringe benefits available to employees of the Company,
and (c) shall be solely responsible for the payment of any federal, state and local taxes
applicable to the fees and expenses paid or payable by the Company in connection with Consultant’s
engagement.

ARTICLE II

Compensation

     2.1 Compensation. In consideration for the Services to be provided by the Consultant
pursuant to Section 1.2 hereof, upon execution of this Agreement and subject to the execution of
all other applicable agreements, the Company shall grant to Consultant an option to purchase 80,000
shares of the common stock of the Company, par value $.001 per share (the “Option”), at an exercise
price equal to $3.50 per share, in accordance with the terms, conditions and provisions of the
Company’s 1999 Directors and Consultants Stock Option Plan, and pursuant to the terms, conditions
and provisions of the Stock Option Agreement, attached hereto as Exhibit A (the “Option
Agreement”), to be entered into by and between the Company and the Consultant. The Option shall
vest equally over a three-year period or immediately upon a “Change in Control” (as defined in the
Option Agreement), whichever occurs first.

-2-

 

     2.2 Expense Reimbursement. Upon the submission of proper substantiation by the
Consultant, and subject to such rules and guidelines as the Company may from time to time
adopt, the Company shall reimburse the Consultant for all reasonable expenses actually paid or
incurred by the Consultant during the Term in the course of and pursuant to the business of the
Company, including without limitation travel and lodging expenses necessarily incurred in
performing the Services required hereunder. The Consultant shall account to the Company in writing
for all expenses for which reimbursement is sought and shall supply to the Company copies of all
relevant invoices, receipts or other evidence reasonably requested by the Company.

ARTICLE III

Termination

     3.1 Termination. Notwithstanding anything to the contrary contained in this Agreement:

          A. Expiration. This Agreement shall terminate upon the expiration of the Term as set forth in
Section 1.3; or

          B. Breach. This Agreement shall terminate on the date on which one party (the “Terminating
Party”) provides written notice of such termination to the other party (the “Breaching Party”) by
reason of the fact that the Breaching Party has materially breached his or its obligations under
this Agreement, which breach is not cured by the Breaching Party within thirty days after the
Terminating Party has given written notice of such breach to the Breaching Party; provided that the
Terminating Party shall not be obligated to offer notice and an opportunity to cure if the breach
is not curable.

          C. Termination by the Company. The Company may terminate this Agreement as follows:

               (i) This Agreement shall terminate upon the death of Consultant, and the Company shall have no
further obligation under this Agreement to make any payments to, or bestow any benefits on, the
Consultant from and after the date of Consultant’s death, other than payments or benefits accrued
and due and payable to Consultant prior to the date of his death.

               (ii) This Agreement shall terminate if as a result of Consultant’s incapacity due to accident
or illness, Consultant shall have been unable to satisfactorily perform his Duties under this
Agreement for a period of thirty consecutive days, or for an aggregate of forty-five days in any
consecutive three-month period. In the event of a termination due to disability under this
Section, the Company shall have no further obligation under this Agreement to make any payments to,
or bestow any benefits on, Consultant from and after the date of the termination, other than
payments or benefits accrued and due and payable to it prior to the date of termination pursuant to
this Agreement.

               (iii) The Company may immediately terminate this Agreement for Cause at any time. For
purposes of this Agreement, the Company shall have “Cause” to terminate this Agreement if
Consultant (1) engages in common law fraud in his relations with the Company or

-3-

 

any of its subsidiaries or affiliates, or with any customer or business contact of the Company or
any of its subsidiaries or affiliates; (2) engages in misconduct injurious to the Company; or (3)
is convicted of any crime involving an act of moral turpitude. In the event of a termination for
Cause, the Company shall have no further obligation under this Agreement to make any payments to,
or bestow any benefits on, the Consultant from and after the date of the termination, other than
payments or benefits accrued and due and payable to it prior to the date of termination.

ARTICLE IV

Restrictive Covenants

     4.1 Confidentiality. The Consultant agrees to keep all Confidential Information (as
defined in Section 4.2 herein) strictly and permanently confidential and agrees that he shall not
at any time (whether during or after the Term) directly or indirectly use for any purpose, or
disclose or permit to be disclosed to any person or entity, any Confidential Information. The
Consultant acknowledges that the Confidential Information constitutes unique and valuable assets of
the Company and such Confidential Information was acquired at great time and expense by the
Company, and that any disclosure or other use of such Confidential Information, other than for the
sole benefit of the Company, would be wrongful and would cause irreparable harm to the Company.

     4.2 Confidential Information. The term “Confidential Information” means any
non-public information (whether or not in written form and whether or not expressly designated as
confidential) relating directly or indirectly to the Company or any of the Company’s subsidiaries
or affiliates or relating to the business, operations, financial affairs, performance, assets,
investments, technology, processes, products, contracts, customers, licensees, sublicensees,
suppliers, personnel, plans or prospects of the Company or any of the Company’s subsidiaries or
affiliates, including such information consisting of or otherwise relating directly or indirectly
to trade secrets, know how, technology, designs, drawings, processes, license or sublicense
arrangements, formulae, proposals, customer lists or preference, pricing lists, referral sources,
marketing or sales techniques or plans, operation manuals, service manuals, financial information,
projections, lists of suppliers or distributors or sources of supply; provided, however, that
“Confidential Information” shall not be deemed to include information which, at the time of initial
disclosure to the Consultant, is part of, or without violation of this Agreement or fault of the
Consultant becomes part of, the public knowledge of literature and is readily accessible to third
parties.

-4-

 

     4.3 Documents, Records, etc. All documents, records, data, apparatus, equipment and
other physical property, whether or not pertaining to Confidential Information, which are furnished
to the Consultant by the Company or are produced by the Consultant in connection with the
Consultant’s service with the Company, if not otherwise indicated by the Consultant, will be and
remain the sole property of the Company. The Consultant will return to the Company all such
materials and property as and when requested by the Company. In any event, the Consultant will
return all such materials and property immediately upon termination of the Consultant’s service
with the Company for any reason. The Consultant will not retain with the Consultant any such
material or property or any copies thereof after such termination.

ARTICLE V

Miscellaneous

     5.1 Entire Agreement; Amendment. This Agreement constitutes the entire agreement
between the parties hereto with respect to the subject matter hereof and supersedes all prior
agreements, understandings, negotiations and discussions, both written and oral, among the parties
hereto. This Agreement may not be amended or modified in any way except by a written instrument
executed by the Company and the Consultant.

     5.2 Notices. All notices under this Agreement shall be in writing and shall be given
by personal delivery, or by reputable overnight courier, to the address set forth below:

	 	 	 
	If to the Consultant:

	 	Richard Spencer

3641 North 47th Avenue

Hollywood, Florida 33021
	 
	 	 
	If to the Company:

	 	Bioheart, Inc.

2400 N. Commerce Parkway

Suite 408

Weston, Florida 33331

Attn: Howard J. Leonhardt,
         Chief
Executive Officer
	 
	 	 
	With a copy to:

	 	Tobin & Reyes, P.A.

7251 West Palmetto Park Road

Suite 205

Boca Raton, Florida 33433

Attn: David S. Tobin, Esq.

-5-

 

or to such other person or persons or to such other address or addresses as the Consultant and the
Company or their respective successors or assigns may hereafter furnish to the other by notice
similarly given. Notices, if personally delivered, shall be deemed to have been received on the
date of delivery, and if given by registered or certified mail, shall be deemed to have been
received on the fifth business day after mailing.

     5.3 Governing Law. This Agreement shall be governed by, and construed and interpreted
in accordance with, the laws of the State of Florida, without giving effect to the conflict of laws
principles of each State. With respect to any disputes concerning federal law, such disputes shall
be determined in accordance with the law as it would be interpreted and applied by the United
States Court of Appeals for the Eleventh Circuit.

     5.4 Assignment: Successors and Assigns. Neither the Consultant nor the Company may
make an assignment of this Agreement or any interest herein, by operation of laws or otherwise,
without the prior written consent of the other party; provided that the Company may assign its
rights under this Agreement with the consent of the Consultant in the event that the Company shall
effect a reorganization, consolidate with or merge into any other corporation, partnership,
organization or other entity, or transfer all or substantially all of its properties or assets to
any other corporation, partnership, organization or other entity, but only if such assignee or the
surviving entity in any such reorganization agrees to assume all of the Company’s obligations under
this Agreement. This Agreement shall inure to the benefit of and be binding upon the Company and
the Consultant, their respective heirs, personal representatives, executors, administrators, legal
representatives, successors and assigns.

     5.5 Waiver. The waiver by any party hereto of the other party’s prompt and complete
performance or breach or violation of any provision of this Agreement shall not operate nor be
construed as a waiver of any subsequent breach or violation, and the waiver by any party hereto to
exercise any right or remedy which he or it may possess shall not operate nor be construed as the
waiver of such right or remedy by such party or as a bar to the exercise of such right or remedy by
such party upon the occurrence of any subsequent breach or violation.

     5.6 Severability. The invalidity of any one or more of the words, phrases, sentences,
clauses, sections or subsections contained in this Agreement shall not affect the enforceability of
the remaining portions of this Agreement or any part thereof, all of which are inserted
conditionally on their being valid in law, and, in the event that any one or more of the words,
phrases, sentences, clauses, sections or subsections contained in this Agreement shall be declared
invalid by a court of competent jurisdiction, then this Agreement shall be construed as if such
invalid word or words, phrase or phrases, sentence or sentences, clause or clauses, section or
sections, or subsection or subsections had not been inserted.

     5.7 Arbitration of Disputes. Any dispute or controversy arising under or in connection
with this Agreement shall be settled exclusively by arbitration in Broward County, Florida, in
accordance with the Rules of the American Arbitration Association then in effect (except to the
extent that the procedures outlined below differ from such rules). The cost and

-6-

 

expenses of the arbitration and of enforcement of any award in any court shall be borne by the
non-prevailing party. If advances are required, each party will advance one-half of the estimated
fees and expenses of the arbitrators. Judgment may be entered on the arbitrators’ award in any
court having jurisdiction. Although arbitration is contemplated to resolve disputes hereunder,
either party may proceed to court to obtain an injunction to protect its rights hereunder, the
parties agreeing that either could suffer irreparable harm by reason of any breach of this
Agreement. Pursuit of an injunction shall not impair arbitration on all remaining issues. In the
event that either party hereto shall bring suit seeking an injunction of any action constituting a
breach of any of the terms or provisions of this Agreement, then the party at fault shall pay all
reasonable court costs and attorney’s fees of the other.

     5.8 Consent to Jurisdiction. To the extent that any court action is permitted
consistent with or to enforce Section 5.7 of this Agreement, the parties hereby consent to the
jurisdiction of the Supreme Court of Florida, the Florida District Court of Appeal, and the United
States District Court for the District of Florida. Accordingly, with respect to any such court
action, the Consultant (i) submits to the personal jurisdiction of such courts; (ii) consents to
service of process; and (iii) waives any other requirement (whether imposed by statute, rule of
court, or otherwise) with respect to personal jurisdiction or service of process.

     5.9 Compliance with Legal Requirements. The Company shall not provide workers’
compensation, disability insurance, Social Security or unemployment compensation coverage nor any
other statutory benefit to the Consultant. The Consultant shall comply at his expense with all
applicable provisions of workers’ compensation laws, unemployment compensation laws, federal Social
Security law, the Fair Labor Standards Act, federal, state and local income tax laws, and all other
applicable federal, state and local laws, regulations and codes relating to terms and conditions of
employment required to be fulfilled by employers or independent contractors.

     5.10 Gender and Number. Wherever the context shall so require, all words herein in
the male gender shall be deemed to include the female or neuter gender, all singular words shall
include the plural and all plural words shall include the singular.

     5.11 Section Headings. The section or other headings contained in this Agreement are
for reference purposes only and shall not affect in any way the meaning or interpretation of any or
all of the provisions of this Agreement.

     5.12 No Third Party Beneficiary other than Company. Nothing expressed or implied in
this Agreement is intended, or shall be construed, to confer upon or give any person, firm,
corporation, partnership, association or other entity, other than the parties hereto and each of
their respective heirs, personal representatives, legal representatives, successors and assigns,
any rights or remedies under or by reason of this Agreement.

     5.13 No Authority to Bind Company. The Consultant does not and shall not have any
authority to enter into any contract or agreement for, on behalf of or in the name of the
Company, or to legally bind the Company to any commitment or obligation.

-7-

 

     IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first above
written.

	 	 	 	 	 
	 	THE COMPANY:

BIOHEART, INC., a Florida corporation

 	 
	 	/s/
 	 
	 	Howard Leonhardt, Chief Executive Officer 	 
	 	 	 
	 
	 	THE CONSULTANT:

 	 
	 	/s/
 	 
	 	Richard Spencer 	 
	 	 	 
	 

-8-

 

Exhibit
A

BIOHEART, INC.

NON-QUALIFIED STOCK OPTION AGREEMENT

FOR

RICHARD SPENCER III

Agreement

     1. Grant of Option. BIOHEART, INC. (the “Company”) hereby grants, as of March, 18,
2004 (the “Date of Grant”), to Richard Spencer III (the “Optionee”) an option (the “Option”) to
purchase up to 80,000 shares of the Company’s Common Stock, $.001 par value (the “Stock”), at an
exercise price per share equal to $3.50 (the “Exercise Price”). The Option shall be subject to the
terms and conditions set forth herein. The Option was issued pursuant to the Company’s 1999
Directors and Consultants Stock Option Plan (the “Plan”), which is incorporated herein for all
purposes. The Option is a nonqualified stock option, and not an incentive stock option within the
meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”). The Optionee
hereby acknowledges receipt of a copy of the Plan and agrees to be bound by all of the terms and
conditions hereof and thereof.

     2. Definitions. Unless otherwise provided herein, terms used herein that are defined
in the Plan and not defined herein shall have the meanings attributed thereto in the Plan.

     3. Exercise Schedule. Except as otherwise provided in Section 6 or 12 of this
Agreement, or in the Plan, the Option is exercisable in installments as provided below, which shall
be cumulative. To the extent that the Option has become exercisable with respect to a percentage of
Shares as provided below, the Option may thereafter be exercised by the Optionee, in whole or in
part, at any time or from time to time prior to the expiration of the Option as provided herein.
The following table indicates each date (the “Vesting Date”) upon which the Optionee shall be
entitled to exercise the Option with respect to the percentage of Shares granted as indicated
beside the date, provided that the Optionee has continuously provided services to the Company or a
Subsidiary through and on the applicable Vesting Date:

	 	 	 
	Percentage of Shares	 	Vesting Date
	 
	 	 
	33.3%

	 	first anniversary of Date of Grant
	 
	 	 
	33.3%

	 	second anniversary of Date of Grant
	 
	 	 
	33.3%

	 	third anniversary of Date of Grant

     Except as otherwise specifically provided herein, there shall be no proportionate or partial
vesting in the periods prior to each Vesting Date, and all vesting shall occur only on the
appropriate Vesting Date. Upon an Optionee’s termination of service with the Company and its
Subsidiaries, any unvested portion of the Option shall terminate and be null and void.

     4. Method of Exercise. This Option shall be exercisable in whole or in part in
accordance with the exercise schedule set forth in Section 3 hereof by written notice which shall
state the election to exercise the Option, the number of Shares in respect of which the Option is

1

 

being exercised, and such other representations and agreements as to the holder’s investment
intent with respect to such Shares as may be required by the Company pursuant to the provisions of
the Plan. Such written notice shall be signed by the Optionee and shall be delivered in person or
by certified mail to the Chief Financial Officer of the Company. The written notice shall be
accompanied by payment of the Exercise Price. This Option shall be deemed to be exercised after
(a) receipt by the Company of such written notice accompanied by the Exercise Price, and (b)
arrangements that are satisfactory to the Board or the Committee in its sole discretion have been
made for Optionee’s payment to the Company of the amount that is necessary to be withheld in
accordance with applicable Federal or state withholding requirements. No Shares will be issued
pursuant to the Option unless and until such issuance and such exercise shall comply with all
relevant provisions of applicable law, including the requirements of any stock exchange upon which
the Stock then may be traded.

     5. Method of Payment. Payment of the exercise price shall be by any of the
following, or a combination thereof, at the election of the Optionee: (a) cash; (b) check; (c)
with Shares that have been held by the Optionee for at least 6 months (or such other Shares as the
Company determines will not cause the Company to recognize for financial accounting purposes a
charge for compensation expense); or (d) such other consideration or in such other manner as may be
determined by the Board or the Committee in its absolute discretion .

     6. Termination of Option.

     (a) Any unexercised portion of the Option shall automatically and without notice terminate and
become null and void at the time of the earliest to occur of:

          (i) three (3) months after the date on which the Optionee’s service with the Company and its
Subsidiaries is terminated for any reason other than by reason of (A) Cause, which, solely for
purposes of this Agreement, shall mean the termination of the Optionee’s service by reason of the
Optionee’s willful misconduct or gross negligence, (B) a mental or physical disability (within the
meaning of Section 22(e) of the Internal Revenue Code of 1986, as amended) of the Optionee as
determined by a medical doctor satisfactory to the Committee, or (C) death;

          (ii) immediately upon the termination of the Optionee’s service with the Company and its
Subsidiaries for Cause;

          (iii) twelve (12) months after the date on which the Optionee’s service with the Company and
its Subsidiaries is terminated by reason of a mental or physical disability (within the meaning of
Section 22(e) of the Internal Revenue Code of 1986, as amended) as determined by a medical doctor
satisfactory to the Committee;

          (iv) twelve (12) months after the date of termination of the Optionee’s service with the
Company and its Subsidiaries by reason of the death of the Optionee (or if later, three months
after the date on which the Optionee shall die if such death shall occur during the one year period
specified in paragraph (iii) of this Section 6);

2

 

          (v) immediately in the event that the Optionee shall file any lawsuit or
arbitration claim against the Company or any Subsidiary, or any of their respective officers,
directors or shareholders of the Company;

          (vi) the tenth (10th) anniversary of the Date of Grant; or

          (vii) termination under Section 12 hereof.

     (b) To the extent not previously exercised, (i) the Option shall terminate immediately in the
event of (1) the liquidation or dissolution of the Company, or (2) any reorganization, merger,
consolidation or other form of corporate transaction in which the Company does not survive, unless
the successor corporation, or a parent or subsidiary of such successor corporation, assumes the
Option or substitutes an equivalent option or right pursuant to Section 10(c) of the Plan, and (ii)
the Committee or the Board in its sole discretion may by written notice (“cancellation notice”)
cancel, effective upon the consummation of any corporate transaction described in Subsection
8(b)(i) of the Plan in which the Company does survive, any Option that remains unexercised on such
date. The Committee or the Board shall give written notice of any proposed transaction referred to
in this Section 6(b) a reasonable period of time prior to the closing date for such transaction
(which notice may be given either before or after approval of such transaction), in order that the
Optionee may have a reasonable period of time prior to the closing date of such transaction within
which to exercise the Option if and to the extent that it then is exercisable (including any
portion of the Option that may become exercisable upon the closing date of such transaction). The
Optionee may condition his exercise of the Option upon the consummation of a transaction referred
to in this Section 6(b).

     7. Transferability. The Option granted hereby is not transferable otherwise than by
will or under the applicable laws of descent and distribution, and during the lifetime of the
Optionee the Option shall be exercisable only by the Optionee or the Optionee’s guardian or legal
representative. In addition, the Option shall not be assigned, negotiated, pledged or hypothecated
in any way (whether by operation of law or otherwise), and the Option shall not be subject to
execution, attachment or similar process. Upon any attempt to transfer, assign, negotiate, pledge
or hypothecate the Option, or in the event of any levy upon the Option by reason of execution,
attachment or similar process contrary to the provisions hereof, the Option shall immediately
become null and void.

     8. No Rights of Stockholders. Neither the Optionee nor any personal representative
(or beneficiary) shall be, or shall have any of the rights and privileges of, a stockholder of the
Company with respect to any shares of Stock purchasable or issuable upon the exercise of the
Option, in whole or in part, prior to the date of exercise of the Option.

     9. Stockholders Agreements; Restrictions.

     (a) Stockholders Agreement. Unless the requirements under this sentence are waived in
writing by the Company, the Optionee shall not be permitted to exercise the Option or to be issued
any shares of Stock thereunder unless and until the Optionee executes and delivers to the Company
the form of stockholders agreement then in effect among the Company and its stockholders (which
agreement may be the stockholders agreement utilized in connection with the Company’s initial
private offering to investors) (the “Stockholders Agreement”). In addition

3

 

to any rights or obligations of Optionee under such Stockholders Agreement, the Optionee is and
shall be subject to the following provisions of this Section 9 and the other provisions of this
Option Agreement.

     (b) Restrictions While Stock is Not Registered; Restricted Shares. The shares of
Stock subject to the Option specified in Section 1 and (i) all shares of the Company’s capital
stock received as a dividend or other distribution upon such shares, and (ii) all shares of capital
stock or other securities of the Company into which such shares may be changed or for which such
shares shall be exchanged, whether through reorganization, recapitalization, stock split-ups or the
like, shall be subject to the provisions of this Section 9 at all times, and only at those times,
that shares of the Company’s Common Stock are not Publicly-Held (such times during which the Stock
is not so Publicly-Held hereinafter being referred to as the “Restricted Period”) and are during
the Restricted Period hereinafter referred to as “Restricted Shares.” For purposes of this
Agreement, “Publicly-Held” means that the Common Stock of the Company, or the stock of any
successor company into which the Common Stock is substituted or exchanged, is registered pursuant
to Section 12(b) or 12(g) of the Securities Exchange Act.

     (c) No Sale or Pledge of Restricted Shares. Except as otherwise provided herein, the
Optionee agrees and covenants that during the Restricted Period he or she will not sell, pledge,
encumber or otherwise transfer or dispose of, and will not permit to be sold, encumbered, attached
or otherwise disposed of or transferred in any manner, either voluntarily or by operation of law
(all hereinafter collectively referred to as “transfers”), all or any portion of the Restricted
Shares or any interest therein except in accordance with and subject to the terms of this Section
9.

     (d) Involuntary Transfer Repurchase Option. Whenever, during the Restricted Period,
the Optionee has any notice or knowledge of any attempted, pending, or consummated involuntary
transfer or lien or charge upon any of the Restricted Shares, whether by operation of law or
otherwise, the Optionee shall give immediate written notice thereof to the Company. Whenever the
Company has any other notice or knowledge of any such attempted, impending, or consummated
involuntary transfer, lien, or charge, it shall give written notice thereof to the Optionee. In
either case, the Optionee agrees to disclose forthwith to the Company all pertinent information in
his possession relating thereto. If during the Restricted Period any of the Restricted Shares are
subjected to any such involuntary transfer, lien, or charge, the Company and its designated
purchaser shall at all times have the immediate and continuing option to purchase such of the
Restricted Shares upon notice by the Company to the Optionee or other record holder at a price
determined according to Section 9(f) below, and any of the Restricted Shares so purchased by the
Company or its designated purchaser shall in every case be free and clear of such transfer, lien,
or charge.

     (e) Repurchase Option on Termination of Service. Anything set forth in this Agreement
to the contrary notwithstanding, the Company shall have the right (but not the obligation) to
purchase or designate a purchaser of all, but not less than all, of the Restricted Shares
(including, without limitation, any Restricted Shares transferred pursuant to Section 2.3.1 of the
Stockholders Agreement) during the Restricted Period and after termination of the Optionee’s
service as a Director or independent contractor with the Company for any reason, for

4

 

the purchase price specified in Section 9(f) hereof. The Company may exercise its right to
purchase or designate a purchaser of the Restricted Shares at any time (without any time
limitation) after the Optionee’s termination of employment or service and during the Restricted
Period. If the Company chooses to exercise its right to purchase the Restricted Shares hereunder,
the Company shall give its notice of its exercise of this right to the Optionee or his or her legal
representative specifying in such notice a date not later than ten (10) days following the date of
giving such notice on which the Company or its designated purchaser shall deliver, or be prepared
to deliver the check or promissory note for the purchase price and the Optionee or his or her legal
representative shall deliver all stock certificates evidencing such Restricted Shares duly endorsed
in blank for transfer or with separate stock powers endorsed in blank for transfer.

     (f) Repurchase Price. For purposes of Section 9(d) and (e) hereof, the per share
purchase price of Restricted Shares shall be an amount equal to the Fair Market Value of such
share, determined by the Board or the Committee as of any date determined by the Board or the
Committee that is not more than one year prior to the date of the event giving rise to the
Company’s right to purchase such Restricted Shares under this Section 9. Any determination of Fair
Market Value made by the Board or the Committee shall be binding and conclusive on all parties
unless shown to have been made in an arbitrary and capricious manner. The purchase price shall, at
the option of the Company, be payable in cash or in the form of the Company’s promissory note
payable in up to three equal annual installments commencing 12 months after the acquisition by the
Company (“Acquisition Date”) of the Restricted Shares, together with interest on the unpaid balance
thereof at the rate equal to the prime rate of interest of Citibank, N.A. on the Acquisition Date.

     (g) Voting Rights. As a condition to Optionee’s exercise of any Option pursuant to
this Agreement, the Company may in its discretion require that Optionee enter into a voting
agreement that grants to specified persons designated therein the voting rights for all shares of
Stock acquired pursuant to the exercise of such Options, until the earlier of (i) 10 years from the
date of exercise of the Option, or (ii) the end of the Restricted Period, such voting agreement to
be in such form as the Company reasonably may request.

     (h) Legends. The certificate or certificates representing any Shares acquired
pursuant to the exercise of an Option prior to the last day of the Restricted Period shall bear the
following legends (as well as any legends required by applicable state and federal corporate and
securities laws or the Stockholders Agreement):

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933 (THE “ACT”) AND MAY NOT BE OFFERED, SOLD OR OTHERWISE
TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE
ACT OR, IN THE OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE
ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR TRANSFER, PLEDGE OR
HYPOTHECATION IS IN COMPLIANCE THEREWITH.

5

 

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN
RESTRICTIONS ON TRANSFER, RIGHT OF FIRST REFUSAL AND REDEMPTION OR
REPURCHASE OPTIONS HELD BY THE ISSUER OR ITS ASSIGNEE(S) AS SET FORTH IN THE
STOCK OPTION AGREEMENT BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE
SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE
ISSUER. SUCH TRANSFER RESTRICTIONS, RIGHT OF FIRST REFUSAL AND REDEMPTION
OR REPURCHASE RIGHTS ARE BINDING ON TRANSFEREES OF THESE SHARES.

     10. Market Stand-Off Agreement. In the event of an initial public offering
of the Company’s securities and upon request of the Company or the underwriters managing any
underwritten offering of the Company’s securities, the Optionee agrees not to sell, make any short
sale of, loan, grant any option for the purchase of, or otherwise dispose of any Shares (other than
those included in the registration) acquired pursuant to the exercise of the Option, without the
prior written consent of the Company or such underwriters, as the case may be, for such period of
time (not to exceed 180 days) from the effective date of such registration as may be requested by
the Company or such managing underwriters.

     11. Optionee’s Representations. By executing this Agreement, Optionee hereby
represents and warrants to the Company as to all provisions set forth in the Investment
Representation Statement attached hereto as Exhibit A. In addition, in the event the Company’s
issuance of the Shares purchasable pursuant to the exercise of this Option has not been registered
under the Securities Act of 1933, as amended, at the time this Option is exercised, Optionee shall,
if required by the Company, concurrently with the exercise of all or any portion of this Option,
execute and deliver to the Company such Investment Representation Statement or such other form as
the Company may request.

     12. Options Terminate if Optionee Violates Agreements. The Participant
hereby acknowledges and agrees, as a condition to receiving a grant of the Options, and the
receiving of Shares upon exercise of such Options, to be bound by the restrictive covenant
provisions of that certain agreement of even date herewith entered into by and between the Company
and the Optionee, as well as any other agreement between the parties. In the event the Optionee
breaches any of the terms and conditions set forth in any agreement, the Board may, within its sole
and absolute discretion and upon written notice to the Optionee, terminate this Agreement and,
consequently (a) the Options hereunder shall become immediately void and shall no longer have any
force any effect, and (b) any and all Shares Optionee received pursuant to this Agreement must be
returned to the Company immediately upon demand by the Company upon the Company’s return of the
exercise price paid by the Optionee. The determination as to whether the Optionee has breached any
of the restrictive covenant provisions and/or agreements shall be made by the Board, in good faith,
and shall be binding and conclusive on all parties.

     13. Acceleration of Exercisability of Option. Except as otherwise determined by the
Board or the Committee, in its sole and absolute discretion, this Option shall become immediately
exercisable in the event of a Change in Control, or in the event the Committee or the Board
exercises its discretion to cancel the Option pursuant to Sections 6(b) or (c) hereof.

6

 

     14. No Right to Continued Service. Neither the Option nor this Agreement shall confer
upon the Optionee any right to continued service with the Company.

     15. Law Governing. This Agreement shall be governed in accordance with and governed
by the internal laws of the State of Florida.

     16. Interpretation. The Optionee accepts the Option subject to all the terms and
provisions of the Plan and this Agreement. The undersigned Optionee hereby accepts as binding,
conclusive and final all decisions or interpretations of the Committee upon any questions arising
under the Plan and this Agreement.

     17. Notices. Any notice under this Agreement shall be in writing and shall be deemed
to have been duly given when delivered personally or when deposited in the United States mail,
registered, postage prepaid, and addressed, in the case of the Company, to the Company’s Secretary
at 400 N. Commerce Parkway, Suite 408, Weston, Florida 33326, or if the Company should move its
principal office, to such principal office, and, in the case of the Optionee, to the Optionee’s
last permanent address as shown on the Company’s records, subject to the right of either party to
designate some other address at any time hereafter in a notice satisfying the requirements of this
Section.

     18. Tax Consequences. Set forth below is a brief summary as of the date of this
Option of certain of the federal tax consequences of exercise of this Option and disposition of the
Shares under the law in effect as of the date of grant. THIS SUMMARY IS NECESSARILY INCOMPLETE,
AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE. OPTIONEE SHOULD CONSULT A TAX ADVISER
BEFORE EXERCISING THIS OPTION OR DISPOSING OF THE SHARES.

          There may be a regular federal income tax liability upon the exercise of the Option. Optionee
will be treated as having received compensation income (taxable at ordinary income tax rates) equal
to the excess, if any, of the fair market value of the Shares on the date of exercise over the
Exercise Price. If Optionee is an employee, the Company will be required to withhold from
Optionee’s compensation or collect from Optionee and pay to the applicable taxing authorities an
amount equal to a percentage of this compensation income at the time of exercise. Any gain
realized on disposition of the Shares will be treated as short-term or long-term capital gain for
federal income tax purposes, depending upon whether the Shares have been held for at least one year
following exercise of the Option.

     IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the 18th
day of March, 2004.

	 	 	 	 	 
	 	COMPANY:

BIOHEART, INC.

 	 
	 	By:  	 	 
	 	 	Howard J. Leonhardt, Chairman &  	 
	 	 	Chief Executive Officer 	 
	 

7

 

     Optionee acknowledges receipt of a copy of the Plan and represents that he or she is familiar
with the terms and provisions thereof, and hereby accepts this Option subject to all of the terms
and provisions thereof. Optionee has reviewed the Plan and this Option in their entirety, has had
an opportunity to obtain the advice of counsel prior to executing this Option, and fully
understands all provisions of the Option.

	 	 	 	 	 
	 	OPTIONEE:

 	 
	 	By:  	 	 
	 	 	Richard Spencer III 	 
	 	 	 	 
	 	 	Dated: 	 	 
	 

8

 

EXHIBIT A

INVESTMENT REPRESENTATION STATEMENT

	 	 	 	 	 
	PURCHASER

	 	:
	 	RICHARD SPENCER III
	 	 	 	 	 
	COMPANY

	 	:
	 	BIOHEART, INC.
	 	 	 	 	 
	SECURITY

	 	:
	 	COMMON STOCK
	 	 	 	 	 
	AMOUNT

	 	:
	 	80,000 SHARES
	 	 	 	 	 
	DATE

	 	:
	 	March 18, 2004

In connection with the grant and exercise of options to purchase of the above-listed Securities, I,
the Purchaser, represent to the Company the following:

     (a) I am aware of the Company’s business affairs and financial condition, and have acquired
sufficient information about the Company to reach an informed and knowledgeable decision to acquire
the Securities. I am purchasing these Securities for my own account for investment purposes only
and not with a view to, or for the resale in connection with, any “distribution” thereof for
purposes of the Securities Act of 1933, as amended (the “Securities Act”).

     (b) I understand that the Company’s issuance of the Securities has not been registered under
the Securities Act in reliance upon a specific exemption therefrom, which exemption depends upon,
among other things, the bona fide nature of my investment intent as expressed herein. In this
connection, I understand that, in the view of the Securities and Exchange Commission (the “SEC”),
the statutory basis for such exemption may be unavailable if my representation was predicated
solely upon a present intention to hold these Securities for the minimum capital gains period
specified under tax statutes, for a deferred sale, for or until an increase or decrease in the
market price of the Securities, or for a period of one year or any other fixed period in the
future.

     (c) I further understand that the Securities must be held by me indefinitely unless the
transfer is subsequently registered under the Securities Act or unless an exemption from
registration is otherwise available, and that I cannot transfer or sell any Securities unless
permitted under my Stock Option Agreement and the Stockholders Agreement referenced in Section 9(a)
of this Stock Option Agreement. Moreover, I understand that the Company is under no obligation to
register any transfer of the Securities. In addition, I understand that the certificate evidencing
the Securities will be imprinted with a legend which prohibits the transfer of the Securities
unless registered or such registration is not required in the opinion of counsel for the Company.

     (d) I am familiar and agree to comply with the provisions of Rule 701 and Rule 144, each
promulgated under the Securities Act, which, in substance, permit limited public resale of
“restricted securities” acquired, directly or indirectly, from the issuer thereof, in a non-public
offering subject to the satisfaction of certain conditions, subject to the requirements of my
Stock Option Agreement and the Stockholders Agreement.

	 	 	 	 	 
	 	Signature of Purchaser:

 	 
	 	 	 
	 	 	 
	 	Date: _________________, 200__ 	 
	 

9

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