Document:

Exhibit

10.1

 

THE HOME DEPOT, INC.

 

1997 OMNIBUS STOCK INCENTIVE PLAN, AS

AMENDED

 

 

1.             History

and Purpose.  The Home Depot,

Inc. Omnibus Stock Incentive Plan (this Plan) is an amendment and restatement

of The Home Depot, Inc. 1991 Omnibus Stock Option Plan.  The purpose of this Plan is to attract and

retain employees and directors for The Home Depot, Inc. and its subsidiaries

and to provide such persons with incentives and rewards for superior

performance.

 

2.             Definitions.  As used in this Plan, the following terms

shall be defined as set forth below:

 

“Award” means any Option, Stock Appreciation

Right, Restricted Shares, Deferred Shares, Performance Shares or Performance

Unit.

 

“Base

Price”  means the price to be used as the basis for

determining the Spread upon the exercise of a Freestanding Stock Appreciation

Right.

 

“Board” means the Board of Directors of the

Company.

 

“Code” means the Internal Revenue Code of 1986,

as amended from time to time.

 

“Committee” means the committee described in Section

4 of this Plan.

 

“Company” means The Home Depot, Inc., a Delaware

corporation, or any successor corporation.

 

“Deferral

Period” means the

period of time during which Deferred Shares are subject to deferral limitations

under Section 8 of this Plan.

 

“Deferred

Shares”  means an Award pursuant to Section 8 of this

Plan of the right to receive Shares at the end of a specified Deferral Period.

 

“Employee” means any person, including an officer,

employed by the Company or a Subsidiary.

 

“Fair

Market Value”

means the fair market value of the Shares as determined by the Committee from

time to time.  Unless otherwise

determined by the Committee, the fair market value shall be the closing price

for the Shares reported on a consolidated basis on the New York Stock Exchange

on the relevant date or, if there were no sales on such date, the closing price

on the nearest preceding date on which sales occurred.

 

“Freestanding

Stock Appreciation Right” means a Stock Appreciation Right granted pursuant to Section 6 of this

Plan that is not granted in tandem with an Option or similar right.

 

“Grant

Date” means the

date specified by the Committee on which a grant of an Award shall become

effective, which shall not be earlier than the date on which the Committee

takes action with respect thereto.

 

“Incentive

Stock Options”

means any Option that is intended to qualify as an “incentive stock option”

under Section 422 of the Code or any successor provision.

 

“Nonemployee

Director”  means a member of the Board who is not an

Employee.

 

 

 

“Nonqualified

Stock Option”

means an Option that is not intended to qualify as an Incentive Stock Option.

 

“Option” means any option to purchase Shares

granted under Section 5 of this Plan.

 

“Optionee” means the person so designated in an

agreement evidencing an outstanding Option.

 

“Option

Price” means the

purchase price payable upon the exercise of an Option.

 

“Participant” means an Employee or Nonemployee

Director who is selected by the Committee to receive benefits under this Plan,

provided that Nonemployee Directors shall not be eligible to receive grants of

Incentive Stock Options.

 

“Performance

Objectives” means

the performance objectives established pursuant to this Plan for Participants

who have received grants of Performance Shares or Performance Units or, when so

determined by the Committee, Deferred Shares or Restricted Shares.  Performance Objectives may be described in

terms of Company-wide objectives or objectives that are related to the

performance of the individual Participant or the Subsidiary, division,

department or function within the Company or Subsidiary in which the

Participant is employed.  Any

Performance Objectives applicable to Awards to the extent that such an Award is

intended to qualify as “performance-based compensation” under Section 162(m) of

the Code shall be limited to specified levels of or increases in the Company’s

or Subsidiary’s return on equity, earnings per share, total earnings, earnings

growth, return on capital, return on assets, economic value added, earnings before

interest and taxes, sales growth, gross margin return on investment, increase

in the Fair Market Value of the Shares, share price (including, but not limited

to, growth measures and total shareholder return), net operating profit, cash

flow (including, but not limited to, operating cash flow and free cash flow),

cash flow return on investments (which equals net cash flow divided by total

capital), internal rate of return, increase in net present value or expense

targets.  Except in the case of such an

Award intended to qualify under Section 162(m) of the Code, if the Committee

determines that a change in the business, operations, corporate structure or

capital structure of the Company, or the manner in which it conducts its

business, or other events or circumstances render the Performance Objectives

unsuitable, the Committee may modify such Performance Objectives or the related

minimum acceptable level of achievement, in whole or in part, as the Committee

deems appropriate and equitable.

 

“Performance

Period” means a

period of time established under Section 9 of this Plan within which the

Performance Objectives relating to a Performance Share, Performance Unit,

Deferred Shares or Restricted Shares are to be achieved.

 

“Performance

Share” means a

bookkeeping entry that records the equivalent of one Share awarded pursuant to

Section 9 of this Plan.

 

“Performance

Unit” means a

bookkeeping entry that records a unit equivalent to $1.00 awarded pursuant to

Section 9 of this Plan.

 

“Predecessor

Plan” means The

Home Depot, Inc. 1991 Omnibus Stock Option Plan.

 

“Restricted

Shares” mean

Shares granted under Section 7 of this Plan subject to a substantial risk of

forfeiture.

 

“Shares” means shares of the Common Stock of the

Company, $.05  par value, or any

security into which Shares may be converted by reason of any transaction or

event of the type referred to in Section 11 of this Plan.

 

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“Spread” means, in the case of a Freestanding

Stock Appreciation Right, the amount by which the Fair Market Value on the date

when any such right is exercised exceeds the Base Price specified in such right

or, in the case of a Tandem Stock Appreciation Right, the amount by which the

Fair Market Value on the date when any such right is exercised exceeds the

Option Price specified in the related Option.

 

“Stock

Appreciation Right”

means a right granted under Section 6 of this Plan, including a

Freestanding Stock Appreciation Right or a Tandem Stock Appreciation Right.

 

“Subsidiary” means a corporation or other entity (i)

more than 50 percent of whose outstanding shares or securities (representing

the right to vote for the election of directors or other managing authority)

are, or (ii) which does not have outstanding shares or securities (as may be

the case in a partnership, joint venture or unincorporated association), but

more than 50 percent of whose ownership interest (representing the right

generally to make decisions for such other entity) is, now or hereafter owned

or controlled directly or indirectly by the Company, provided that for purposes

of determining whether any person may be a Participant for purposes of any

grant of Incentive Stock Options, “Subsidiary” means any corporation in which

the Company owns or controls directly or indirectly more than 50 percent of the

total combined voting power represented by all classes of stock issued by such

corporation at the time of such grant.

 

“Tandem

Stock Appreciation Right” means a Stock Appreciation Right granted pursuant to Section 6 of this

Plan that is granted in tandem with an Option or any similar right granted

under any other plan of the Company.

 

3.             Shares Available Under

the Plan.

 

(a)           Subject to adjustment as provided in

Section 11 of this Plan, the number of Shares that may be (i) issued or

transferred upon the exercise of Options or Stock Appreciation Rights, (ii)

awarded as Restricted Shares and released from substantial risk of forfeiture,

or (iii) issued or transferred in payment of Deferred Shares or Performance

Shares, on or after the effective date specified in Section 17 shall not in the

aggregate exceed (y) the number of Shares then remaining available under the

Predecessor Plan, plus (z) one-half percent (1/2%) of the total number of

issued Shares (including Treasury Shares) as of the first day of each fiscal

year of the Company that the Plan is in effect.  The number of Shares available for issuance in any one fiscal

year shall be increased by any Shares available in prior fiscal years but not

issued in such fiscal years.  In no

event, however, shall the number of Shares issued upon the exercise of

Incentive Stock Options exceed 50,000,000 Shares or the number of Restricted

Shares released from substantial risk of forfeiture exceed 5,000,000 Shares,

subject to adjustment as provided in Section 11.  Such Shares may be Shares of original issuance, Shares held in

Treasury, or Shares that have been reacquired by the Company.

 

(b)           Upon payment of the Option Price upon

exercise of a Nonqualified Stock Option by the transfer to the Company of

Shares or upon satisfaction of tax withholding obligations under the Plan by

the transfer or relinquishment of Shares, there shall be deemed to have been

issued or transferred only the number of Shares actually issued or transferred

by the Company, less the number of Shares so transferred or relinquished.  Upon the payment in cash of a benefit

provided by any Award under the Plan, any Shares that were subject to such

Award shall again be available for issuance or transfer under the Plan.

 

(c)           No Participant may receive Awards

representing more than 1,000,000 Shares in any one calendar year.  In addition, the maximum number of

Performance Units that may be granted to a Participant in any one calendar year

is 5,000,000.

 

                (d)           In

addition to the foregoing limitations, the number of Shares made subject to

grants of (i) Restricted Shares with vesting restrictions of less than three

years if performance-based objectives or one year if time-based objectives are

established for the Performance Objectives or (ii) Performance Shares that are

not issued in lieu of a salary or cash bonus, shall not exceed five percent

(5%) of the Shares authorized for issuance under the Plan.  This limitation shall be applied as of any

date by taking into account the 

 

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number of Shares

available to be made the subject of new Awards as of such date, plus the number

of Shares previously issued under the Plan and the number of Shares subject to

outstanding Awards as of such date.

 

4.             Administration of the

Plan.  This Plan shall be

administered by one or more committees appointed by the Board.  The interpretation and construction by the

Committee of any provision of this Plan or of any agreement or document

evidencing the grant of any Award and any determination by the Committee

pursuant to any provision of this Plan or any such agreement, notification or

document, shall be final and conclusive. 

No member of the Committee shall be liable to any person for any such

action taken or determination made in good faith.

 

5.             Options.  The Committee may from time to time

authorize grants to Participants of options to purchase Shares upon such terms

and conditions as the Committee may determine in accordance with the following

provisions:

 

(a)           Each grant shall specify the number

of Shares to which it pertains.

 

(b)           Each grant shall specify an Option

Price per Share, which shall be equal to or greater than the Fair Market Value

on the Grant Date.

 

(c)           Each grant shall specify the form of

consideration to be paid in satisfaction of the Option Price and the manner of

payment of such consideration, which may include (i) cash in the form of

currency or check or other cash equivalent acceptable to the Company, (ii)

nonforfeitable, unrestricted Shares owned by the Optionee which have a value at

the time of exercise that is equal to the Option Price, (iii) any other legal

consideration that the Committee may deem appropriate, including without

limitation any form of consideration authorized under Section 5(d) below, on

such basis as the Committee may determine in accordance with this Plan, or (iv)

any combination of the foregoing.

 

(d)           On or after the Grant Date of any

Option other than an Incentive Stock Option, the Committee may determine that

payment of the Option Price may also be made in whole or in part in the form of

Restricted Shares or other Shares that are subject to risk of forfeiture or

restrictions on transfer.  Unless

otherwise determined by the Committee, whenever any Option Price is paid in

whole or in part by means of any of the forms of consideration specified in

this Section 5(d), the Shares received by the Optionee upon the exercise of the

Options shall be subject to the same risks of forfeiture or restrictions on

transfer as those that applied to the consideration surrendered by the

Optionee, provided that such risks of forfeiture and restrictions on transfer

shall apply only to the same number of Shares received by the Optionee as

applied to the forfeitable or restricted Shares surrendered by the Optionee.

 

(e)           Any grant may provide for deferred

payment of the Option Price from the proceeds of sale through a bank or broker

on the date of exercise of some or all of the Shares to which the exercise

relates.

 

(f)            On or after the Grant Date of any

Option, the Committee may provide for the automatic grant to the Optionee of a

reload Option in the event the Optionee surrenders Shares in satisfaction of

the Option Price upon the exercise of an Option as authorized under Sections

5(c) and (d) above.  Each reload Option

shall pertain to a number of Shares equal to the number of Shares utilized by

the Optionee to exercise the original Option. 

Each reload Option shall have an exercise price equal to Fair Market

Value on the date it is granted and shall expire on the stated exercise date of

the original Option.

 

(g)           Each Option grant may specify a

period of continuous employment of the Optionee by the Company or any

Subsidiary (or, in the case of a Nonemployee Director, service on the Board)

that is necessary before the Options or installments thereof shall become

exercisable, and any grant may provide for the earlier exercise of such rights

in the event of a change in control of the Company or other similar transaction

or event.

 

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(h)           Options granted under this Plan may

be Incentive Stock Options, Nonqualified Stock Options or a combination of the

foregoing, provided that only Nonqualified Stock Options may be granted to

Nonemployee Directors.  Each grant shall

specify whether (or the extent to which) the Option is an Incentive Stock

Option or a Nonqualified Stock Option. 

Notwithstanding any such designation, to the extent that the aggregate

Fair Market Value of the Shares with respect to which Options designated as

Incentive Stock Options are exercisable for the first time by an Optionee

during any calendar year (under all plans of the Company) exceeds $100,000,

such Options shall be treated as Nonqualified Stock Options.

 

(i)            No Option granted under this Plan

may be exercised more than ten years from the Grant Date.

 

(j)            Each grant shall be evidenced by an

agreement delivered to and accepted by the Optionee and containing such terms

and provisions as the Committee may determine consistent with this Plan.

 

6.             Stock Appreciation

Rights.  The Committee may

also authorize grants to Participants of Stock Appreciation Rights.  A Stock Appreciation Right is the right of

the Participant to receive from the Company an amount, which shall be

determined by the Committee and shall be expressed as a percentage (not

exceeding 100 percent) of the Spread at the time of the exercise of such

right.  Any grant of Stock Appreciation

Rights under this Plan shall be upon such terms and conditions as the Committee

may determine in accordance with the following provisions:

 

(a)           Any grant may specify that the amount

payable upon the exercise of a Stock Appreciation Right may be paid by the

Company in cash, Shares or any combination thereof and may (i) either grant to

the Participant or reserve to the Committee the right to elect among those

alternatives or (ii) preclude the right of the Participant to receive and the

Company to issue Shares or other equity securities in lieu of cash.

 

(b)           Any grant may specify that the amount

payable upon the exercise of a Stock Appreciation Right shall not exceed a

maximum specified by the Committee on the Grant Date.

 

(c)           Any grant may specify (i) a waiting

period or periods before Stock Appreciation Rights shall become exercisable and

(ii) permissible dates or periods on or during which Stock Appreciation Rights

shall be exercisable.

 

(d)           Any grant may specify that a Stock

Appreciation Right may be exercised only in the event of a change in control of

the Company or other similar transaction or event.

 

(e)           On or after the Grant Date of any

Stock Appreciation Rights, the Committee may provide for the payment to the

Participant of dividend equivalents thereon in cash or Shares on a current,

deferred or contingent basis.

 

(f)            Each grant shall be evidenced by an

agreement delivered to and accepted by the Optionee, which shall describe the

subject Stock Appreciation Rights, identify any related Options, state that the

Stock Appreciation Rights are subject to all of the terms and conditions of

this Plan and contain such other terms and provisions as the Committee may

determine consistent with this Plan.

 

(g)           Each grant of a Tandem Stock

Appreciation Right shall provide that such Tandem Stock Appreciation Right may

be exercised only (i) at a time when the related Option (or any similar right

granted under any other plan of the Company) is also exercisable and the Spread

is positive; and (ii) by surrender of the related Option (or such other

right) for cancellation.

 

(h)           Regarding Freestanding Stock Appreciation

Rights only:

 

(i)            Each grant shall specify in respect

of each Freestanding Stock 

 

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Appreciation Right a Base

Price per Share, which shall be equal to or greater than the Fair Market Value

on the Grant Date;

 

(ii)           Successive grants may be made to the

same Participant regardless of whether any Freestanding Stock Appreciation

Rights previously granted to such Participant remain unexercised;

 

(iii)          Each grant shall specify the period or

periods of continuous employment of the Participant by the Company or any

Subsidiary that are necessary before the Freestanding Stock Appreciation Rights

or installments thereof shall become exercisable, and any grant may provide for

the earlier exercise of such rights in the event of a change in control of the

Company or other similar transaction or event; and

 

(iv)          No Freestanding Stock Appreciation

Right granted under this Plan may be exercised more than ten years from the

Grant Date.

 

7.             Restricted Shares.  The Committee may also authorize grants to

Participants of Restricted Shares upon such terms and conditions as the

Committee may determine in accordance with the following provisions:

 

(a)           Each grant shall constitute an

immediate transfer of the ownership of Shares to the Participant in

consideration of the performance of services, subject to the substantial risk

of forfeiture and restrictions on transfer hereinafter referred to.

 

(b)           Each grant may be made without

additional consideration from the Participant or in consideration of a payment

by the Participant that is less than the Fair Market Value on the Grant Date.

 

(c)           Each grant shall provide that the

Restricted Shares covered thereby shall be subject to a substantial risk of

forfeiture within the meaning of Section 83 of the Code for a period to be

determined by the Committee on the Grant Date, and any grant or sale may

provide for the earlier termination of such risk of forfeiture in the event of

a change in control of the Company or other similar transaction or event.

 

(d)           Unless otherwise determined by the

Committee, an award of Restricted Shares shall entitle the Participant to

dividend, voting and other ownership rights during the period for which such

substantial risk of forfeiture is to continue.

 

(e)           Each grant shall provide that, during

the period for which such substantial risk of forfeiture is to continue, the

transferability of the Restricted Shares shall be prohibited or restricted in

the manner and to the extent prescribed by the Committee on the Grant

Date.  Such restrictions may include,

without limitation, rights of repurchase or first refusal in the Company or

provisions subjecting the Restricted Shares to a continuing substantial risk of

forfeiture in the hands of any transferee.

 

(f)            Any grant or the vesting thereof may

be further conditioned upon the attainment of Performance Objectives

established by the Committee in accordance with the applicable provisions of

Section 9 of this Plan regarding Performance Shares and Performance Units.

 

(g)           Any grant may require that any or all

dividends or other distributions paid on the Restricted Shares during the

period of such restrictions be automatically sequestered and reinvested on an

immediate or deferred basis in additional Shares, which may be subject to the

same restrictions as the underlying Award or such other restrictions as the

Committee may determine.

 

(h)           Each grant shall be evidenced by an

agreement delivered to and accepted by the Participant and containing such

terms and provisions as the Committee may determine consistent with this

Plan.  Unless otherwise directed by the

Committee, all certificates representing Restricted Shares, together with a

stock power that shall be endorsed in blank by the Participant with respect to

such Shares, shall be 

 

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held in custody by

the Company until all restrictions thereon lapse.

 

8.             Deferred Shares.  The Committee may authorize grants of

Deferred Shares to Participants upon such terms and conditions as the Committee

may determine in accordance with the following provisions:

 

(a)           Each grant shall constitute the

agreement by the Company to issue or transfer Shares to the Participant in the

future in consideration of the performance of services, subject to the

fulfillment during the Deferral Period of such conditions as the Committee may

specify.

 

(b)           Each grant may be made without

additional consideration from the Participant or in consideration of a payment

by the Participant that is less than the Fair Market Value on the Grant Date.

 

(c)           Each grant shall provide that the

Deferred Shares covered thereby shall be subject to a Deferral Period, which

shall be fixed by the Committee on the Grant Date, and any grant or sale may

provide for the earlier termination of such period in the event of a change in

control of the Company or other similar transaction or event.

 

(d)           During the Deferral Period, the

Participant shall not have any right to transfer any rights under the subject

Award, shall not have any rights of ownership in the Deferred Shares and shall

not have any right to vote such shares, but the Committee may on or after the

Grant Date authorize the payment of dividend equivalents on such shares in cash

or additional Shares on a current, deferred or contingent basis.

 

(e)           Any grant or the vesting thereof may

be further conditioned upon the attainment of Performance Objectives

established by the Committee in accordance with the applicable provisions of

Section 9 of this Plan regarding Performance Shares and Performance Units.

 

(f)            Each grant shall be evidenced by an

agreement delivered to and accepted by the Participant and containing such

terms and provisions as the Committee may determine consistent with this Plan.

 

9.             Performance Shares and

Performance Units.  The

Committee may also authorize grants of Performance Shares and Performance

Units, which shall become payable to the Participant upon the achievement of

specified Performance Objectives, upon such terms and conditions as the

Committee may determine in accordance with the following provisions:

 

(a)           Each grant shall specify the number

of Performance Shares or Performance Units to which it pertains, which may be

subject to adjustment to reflect changes in compensation or other factors.

 

(b)           The Performance Period with respect

to each Performance Share or Performance Unit shall commence on the Grant Date

and may be subject to earlier termination in the event of a change in control

of the Company or other similar transaction or event.

 

(c)           Each grant shall specify the

Performance Objectives that are to be achieved by the Participant.

 

(d)           Each grant may specify in respect of

the specified Performance Objectives a minimum acceptable level of achievement

below which no payment will be made and may set forth a formula for determining

the amount of any payment to be made if performance is at or above such minimum

acceptable level but falls short of the maximum achievement of the specified

Performance Objectives.

 

(e)           Each grant shall specify the time and

manner of payment of Performance Shares or Performance Units that shall have

been earned, and any grant may specify that any such amount may be 

 

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paid by the

Company in cash, Shares or any combination thereof and may either grant to the

Participant or reserve to the Committee the right to elect among those

alternatives.

 

(f)            Any grant of Performance Shares may

specify that the amount payable with respect thereto may not exceed a maximum

specified by the Committee on the Grant Date. 

Any grant of Performance Units may specify that the amount payable, or

the number of Shares issued, with respect thereto may not exceed maximums

specified by the Committee on the Grant Date.

 

(g)           Any grant of Performance Shares may

provide for the payment to the Participant of dividend equivalents thereon in

cash or additional Shares on a current, deferred or contingent basis.

 

(h)           If provided in the terms of the

grant, the Committee may adjust Performance Objectives and the related minimum

acceptable level of achievement if, in the sole judgment of the Committee,

events or transactions have occurred after the Grant Date that are unrelated to

the performance of the Participant and result in distortion of the Performance

Objectives or the related minimum acceptable level of achievement.

 

(i)            Each grant shall be evidenced by an

agreement delivered to and accepted by the Participant, which shall state that

the Performance Shares or Performance Units are subject to all of the terms and

conditions of this Plan and such other terms and provisions as the Committee

may determine consistent with this Plan.

 

10.           Transferability.

 

(a)           Except as provided in Section 10(b),

no Award granted under this Plan shall be transferable by a Participant other

than by will or the laws of descent and distribution, and Options and Stock

Appreciation Rights shall be exercisable during a Participant’s lifetime only

by the Participant or, in the event of the Participant’s legal incapacity, by

his guardian or legal representative acting in a fiduciary capacity on behalf

of the Participant under state law.  

Any attempt to transfer an Award in violation of this Plan shall render

such Award null and void.

 

(b)           The Committee may expressly provide

in an Award agreement (or an amendment to an Award agreement) that a

Participant may transfer such Award (other than an Incentive Stock Option), in

whole or in part, to a spouse or lineal descendant (a Family Member), a trust

for the exclusive benefit of Family Members, a partnership or other entity in

which all the beneficial owners are Family Members, or any other entity

affiliated with the Participant that may be approved by the Committee.  Subsequent transfers of Awards shall be

prohibited except in accordance with this Section 10(b).  All terms and conditions of the Award,

including provisions relating to the termination of the Participant’s

employment or service with the Company or a Subsidiary, shall continue to apply

following a transfer made in accordance with this Section 10(b).

 

(c)           Any Award made under this Plan may

provide that all or any part of the Shares that are (i) to be issued or

transferred by the Company upon the exercise of Options or Stock Appreciation

Rights, upon the termination of the Deferral Period applicable to Deferred

Shares or upon payment under any grant of Performance Shares or Performance

Units, or (ii) no longer subject to the substantial risk of forfeiture and

restrictions on transfer referred to in Section 7 of this Plan, shall be

subject to further restrictions upon transfer.

 

11.           Adjustments.  The Committee may make or provide for such

adjustments in the (a) number of Shares covered by outstanding Options, Stock

Appreciation Rights, Deferred Shares, Restricted Shares and Performance Shares

granted hereunder, (b) prices per share applicable to such Options and Stock

Appreciation Rights, and (c) kind of Shares covered thereby, as the Committee

in its sole discretion may in good faith determine to be equitably required in

order to prevent dilution or enlargement of the rights of Participants that

otherwise would result from (x) any stock dividend, stock split, combination or

exchange of Shares, recapitalization or other change in the capital structure

of the Company, (y) any 

 

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merger, consolidation,

spin–off, spin–out, split–off, split–up,

reorganization, partial or complete liquidation or other distribution of assets

(other than a normal cash dividend), issuance of rights or warrants to purchase

securities or (z) any other corporate transaction or event having an effect

similar to any of the foregoing. 

Moreover, in the event of any such transaction or event, the Committee

may provide in substitution for any or all outstanding Awards under this Plan

such alternative consideration as it may in good faith determine to be

equitable under the circumstances and may require in connection therewith the

surrender of all Awards so replaced. 

The Committee may also make or provide for such adjustments in the

number of Shares specified in Section 3 of this Plan as the Committee in its

sole discretion may in good faith determine to be appropriate in order to

reflect any transaction or event described in this Section 11.

 

12.           Fractional

Shares.  The Company shall

not be required to issue any fractional Shares pursuant to this Plan.  The Committee may provide for the

elimination of fractions or for the settlement thereof in cash.

 

13.           Withholding

Taxes.  To the extent that

the Company is required to withhold federal, state, local or foreign taxes in

connection with any payment made or benefit realized by a Participant or other

person under this Plan, it shall be a condition to the receipt of such payment

or the realization of such benefit that the Participant or such other person

make arrangements satisfactory to the Company for payment of all such taxes

required to be withheld.  At the

discretion of the Committee, such arrangements may include relinquishment of a

portion of such benefit.

 

14.           Certain

Terminations of Employment, Hardship and Approved Leaves of Absence.  Notwithstanding any other provision of this

Plan to the contrary, in the event of termination of employment by reason of

death, disability, normal retirement, early retirement with the consent of the

Company or leave of absence approved by the Company, or in the event of

hardship or other special circumstances, of a Participant who holds an Option

or Stock Appreciation Right that is not immediately and fully exercisable, any

Restricted Shares as to which the substantial risk of forfeiture or the

prohibition or restriction on transfer has not lapsed, any Deferred Shares as

to which the Deferral Period is not complete, any Performance Shares or

Performance Units that have not been fully earned, or any Shares that are

subject to any transfer restriction pursuant to Section 10(c) of this Plan, the

Committee may in its sole discretion take any action that it deems to be

equitable under the circumstances or in the best interests of the Company,

including, without limitation, waiving or modifying any limitation or

requirement with respect to any Award under this Plan.

 

15.           Foreign

Employees.  In order to

facilitate the making of any grant or combination of grants under this Plan,

the Committee may provide for such special terms for Awards to Participants who

are foreign nationals, or who are employed by the Company or any Subsidiary

outside of the United States of America, as the Committee may consider

necessary or appropriate to accommodate differences in local law, tax policy or

custom.  Moreover, the Committee may

approve such supplements to, or amendments, restatements or alternative

versions of, this Plan as it may consider necessary or appropriate for such

purposes without thereby affecting the terms of this Plan as in effect for any

other purpose, provided that no such supplements, amendments, restatements or

alternative versions shall include any provisions that are inconsistent with

the terms of this Plan, as then in effect, unless this Plan could have been

amended to eliminate such inconsistency without further approval by the

Stockholders of the Company.

 

16.           Amendments

and Other Matters.

 

(a)           This Plan may be amended from time to

time by the Board, but no such amendment shall increase any of the limitations

specified in Section 3 of this Plan, other than to reflect an adjustment made

in accordance with Section 11, without the further approval of the Stockholders

of the Company.

 

(b)           With the concurrence of the affected

Optionee, the Committee may cancel any agreement evidencing Options or any

other Award granted under this Plan.  In

the event of such cancellation, the Committee may authorize the granting of new

Options or other Awards hereunder, which 

 

9

 

may or may not

cover the same number of Shares that had been the subject of the prior Award,

in such manner, at such Option Price and subject to such other terms,

conditions and discretions as would have been applicable under this Plan had

the canceled Options or other Award not been granted.

 

(c)           This Plan shall not confer upon any

Participant any right with respect to continuance of employment or other

service with the Company or any Subsidiary and shall not interfere in any way

with any right that the Company or any Subsidiary would otherwise have to

terminate any Participant’s employment or other service at any time.

 

(d)           To the extent that any provision of

this Plan would prevent any Option that was intended to qualify under

particular provisions of the Code from so qualifying, such provision of this

Plan shall be null and void with respect to such Option, provided that such

provision shall remain in effect with respect to other Options, and there shall

be no further effect on any provision of this Plan.

 

17.           Effective

Date and Stockholder Approval. 

This Plan, as an amendment and restatement of the Predecessor Plan,

shall become effective upon its approval by the Board, subject to approval by

the Stockholders of the Company at the next Annual Meeting of Stockholders.  The Committee may grant Awards subject to

the condition that this Plan shall have been approved by the Stockholders of

the Company.

 

18.           Termination.  This Plan shall terminate on February 27,

2007, and no Award shall be granted after that date.

 

19.           Governing

Law.  The validity,

construction and effect of this Plan and any Award hereunder will be determined

in accordance with (i) the Delaware General Corporation Law, and

(ii) to the extent applicable, other laws (including those governing

contracts) of the State of Georgia.

 

 

10Exhibit 4.1

                          2002 CONSULTANT SERVICES PLAN

         THIS is the 2002 CONSULTANT SERVICES PLAN (the "Plan") and is made as
of the 22th day of August, 2002 between Communitronics of America, Inc. a Utah
Corporation (the "Company"), for the Consultant listed below (the "Consultant").

                                 R E C I T A L S

         WHEREAS, the Company wishes to grant, and the Consultant wishes to
receive, as compensation for services provided to the Company, an aggregate of
40,000 shares of the common stock of the Company, par value $.001 per share (the
"Common Stock"), pursuant to the provisions set forth herein;

         NOW, THEREFORE, in consideration of the mutual promises, covenants,
terms and conditions herein, and other good and valuable considerations, the
receipt and sufficiency of which are hereby acknowledged by the parties, the
parties agree as follows:

1.       Grant of Share. The Company hereby grants to the Consultant the
         following shares of Common Stock ( the "Shares") in the  Company.

                Name               # of Shares          Service Type
           Beadros Asare             40,000          Consulting Services

2.       Services. Consultant has been engaged by the Company to perform
         consulting services and the Company acknowledges that the services to
         be rendered hereby are not in connection with the offer or sale of
         securities in a capital raising  transaction and do not directly or
         indirectly promote or maintain a market for the securities of the
         Company.

3.       Compensation. Consultant's compensation is the Shares identified herein.
         The parties agree the Shares are valued at $.01 each. Consultant is
         responsible for all income taxes.

4.       Registration or Exemption. Notwithstanding anything to the contrary
         contained herein, the Shares will be registered on Form S-8 Registration
         Statement dated August 23, 2002.

5.       Delivery of Shares. The Company shall deliver to the Consultant the
         shares representing the total number granted under number one.

6.       Waiver. No waiver is enforceable unless in writing and signed by the
         waiving party, and any waiver shall not be construed as a waiver by any
          other party or of any other or subsequent breach.

7.       Amendments. This Plan may not be amended unless by the mutual consent
         of all the parties hereto in writing.

8.       Governing Law. This Plan shall be governed by the laws of the State of
         Florida, and the sole venue for any action arising hereunder shall be
         Hillsborough County, Florida.

9.       Assignment and Binding Effect. Neither this Plan nor any of the rights,
         interests or obligations hereunder shall be assigned by any party hereto
         without the prior written consent of the other parties hereto, except as
         otherwise provided herein. This Plan shall be binding upon and for the
         benefit of the parties hereto and their respective heirs, permitted
         successors, assigns and/or delegates.

10.      Integration and Captions. This Plan includes the entire understanding
         of the parties hereto with respect to the subject matter hereof. The
         captions herein are for convenience and shall not control the
         interpretation of this Plan.

11.      Legal Representation. Each party has been represented by independent
         legal counsel in connection with this Plan, or each has had the
         opportunity to obtain independent legal counsel and has waived such
         right, and no tax advice has been provided to any party.

12.      Construction. Each party acknowledges and agrees having had the
         opportunity to review, negotiate and approve all of the provisions of
         this Plan

13.      Cooperation. The parties agree to execute such reasonable necessary
         documents upon advice of legal counsel in order to carry out the intent
         and purpose of this Plan as set forth herein above.

14.      Fees, Costs and Expenses. Each of the parties hereto acknowledges and
         agrees to pay, without reimbursement from the other party(ies), the
         fees, costs, expenses incurred by each such party incident to this Plan.

15.      Consents and Authorizations. By the execution hereinbelow, each party
         acknowledges and agrees that each such party has the full right, power,
         legal capacity and authority to enter into this Plan, and the same
         constitutes a valid and legally binding Plan of each such party in
         accordance with the terms, conditions and other provisions contained
         herein.

16.      Severability. In the event anyone or more of the provisions of this
         Plan shall be deemed unenforceable by any court of competent
         jurisdiction for any reason whatsoever, this Plan shall be construed as
         if such unenforceable provision had never been contained herein.

17.      Counterparts.  This Plan may be executed in counterparts.

18.      Facsimile.  This Plan may be executed by facsimile.

   Communitronics of America, Inc.                   CONSULTANT

   /s/ David R. Pressler                          /s/ Beadros Asare
   --------------------------------                 --------------------------
       David R. Pressler                              Beadros Asare
       President/CFO

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