Document:

EX-10.1 1999 Officers/Employees Stock Option Plan

 

EXHIBIT
10.1

 

BIOHEART, INC.

1999 OFFICERS AND EMPLOYEES STOCK OPTION PLAN

as amended and restated effective as of October 8, 2001

 

     1. Purpose. The purpose of this Plan is to advance the interests of BIOHEART, INC., a
Florida corporation (the “Company”), and its Related Entities by providing an additional incentive
to attract and retain qualified and competent persons who provide services to the Company and its
Related Entities, and upon whose efforts and judgment the success of the Company and its Related
Entities is largely dependent, through the encouragement of stock ownership in the Company by such
persons.

     2. Definitions. As used herein, the following terms shall have the meanings
indicated:

          (a) “Board” shall mean the Board of Directors of the Company.

          (b) “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.

          (c) “Committee” shall mean the committee appointed by the Board pursuant to Section 14(a)
hereof, or, if such committee is not appointed, the Board.

          (d) “Common Stock” shall mean the Company’s Common Stock, par value $.01 per share.

          (e) “Company” shall mean BIOHEART, INC., a Florida corporation, and its successors and
assignees.

          (f) “Consultant” shall mean any person (other than an Employee or a Director, solely with
respect to rendering services in such person’s capacity as a Director) who is engaged by the
Company or any Related Entity to render consulting or advisory services to the Company or such
Related Entity.

          (g) “Continuous Service” shall mean the continuous service to the Company or Related Entity,
without interruption, in any capacity of Employee, Director or Consultant. Continuous Service
shall not be considered interrupted in the case of (i) any approved leave of absence, (ii)
transfers among the Company, any Related Entity, or any successor, in any capacity of Employee,
Director or Consultant, or (iii) any change in status as long as the individual remains in the
service of the Company or a Related Entity in any capacity of Employee, Director or Consultant
(except as otherwise provided in the Option Agreement). An approved leave of absence shall include
sick leave, military leave, or any other authorized personal leave.

 

 

          (h) “Director” shall mean a member of the Board or of the board of directors of any Related
Entity.

          (i) “Effective Date” shall mean December 1, 1999.

          (j) “Employee” shall mean any person, including an Officer or Director, who is an employee of
the Company or any Related Entity. The payment of a Director’s normal compensation and fee (as
applicable to all Directors or Committee members, as the case may be) by the Company or a Related
Entity shall not be sufficient to constitute “employment” by the Company.

          (k) “Fair Market Value” of a Share on any date of reference shall mean the fair market value
of a Share of the Company’s Common Stock on that date, as determined by the Committee or the Board
in a fair and uniform manner. After the Publicly-Traded Date, Fair Market Value shall mean the
“Closing Price” (as defined below) of the Common Stock on the business day immediately preceding
the date of reference, unless the Committee or the Board in its sole discretion shall determine
otherwise in a fair and uniform manner. For the purpose of determining Fair Market Value, the
“Closing Price” of the Common Stock on any business day shall be (i) if the Common Stock is listed
or admitted for trading on any United States national securities exchange, or if actual
transactions are otherwise reported on a consolidated transaction reporting system, the last
reported sale price of Common Stock on such exchange or reporting system, as reported in any
newspaper of general circulation, (ii) if the Common Stock is quoted on the National Association of
Securities Dealers Automated Quotations System (“NASDAQ”), or any similar system of automated
dissemination of quotations of securities prices in common use, the last reported sale price of
Common Stock on such system or, if sales prices are not reported, the mean between the closing high
bid and low asked quotations for such day of Common Stock on such system, as reported in any
newspaper of general circulation or (iii) if neither clause (i) or (ii) is applicable, the mean
between the high bid and low asked quotations for the Common Stock as reported by the National
Quotation Bureau, Incorporated if at least two securities dealers have inserted both bid and asked
quotations for Common Stock on at least five of the ten preceding days.

          (l) “Incentive Stock Option” shall mean an incentive stock option as defined in Section 422 of
the Internal Revenue Code.

          (m) “Non-Qualified Stock Option” shall mean an Option that is not an Incentive Stock Option.

          (n) “Officer” shall mean the Company’s Chairman of the Board, President, Chief Executive
Officer, principal financial officer, principal accounting officer, any vice-president of the
Company in charge of a principal business unit, division or function (such as sales, administration
or finance), any other officer who performs a policy-making function, or any other person who
performs similar policy-making functions for the Company. Officers of Subsidiaries shall be deemed
Officers of the Company if they perform such policy-making functions for the Company. As used in
this paragraph, the phrase “policy-making function” does not include policy-making functions that
are not significant If pursuant to Item 401(b) of

-2-

 

Regulation S-K (17 C.F.R. § 229.401(b)) the Company identifies a person as an “executive
officer,” the person so identified shall be deemed an “‘Officer” even though such person may not
otherwise be an “Officer” pursuant to the foregoing provisions of this paragraph.

          (o) “Option” (when capitalized) shall mean any option granted under this Plan.

          (p) “Option Agreement” means the agreement between the Company and the Optionee for the grant
of an option.

          (q) “Optionee” shall mean a person to whom a stock option is granted under this Plan or any
person who succeeds to the rights of such person under this Plan by reason of the death of such
person.

          (r) “Outside Director” shall mean a member of the Board who qualifies as an “outside director”
under Section 162(m) of the Internal Revenue Code and the regulations thereunder and as a
“Non-Employee Director” under Rule 16b-3 promulgated under the Securities Exchange Act.

          (s) “Parent” shall mean any corporation (other than the Company), whether now or hereafter
existing, in an unbroken chain of corporations ending with the Company, if each of the corporations
in the chain (other than the Company) owns stock possessing 50% or more of the combined voting
power of all classes of stock in one of the other corporations in the chain.

          (t) “Plan” shall mean this 1999 Officers and Employees Stock Option Plan for the Company.

          (u) “Publicly-Traded Date” shall mean the date on which the Common Stock of the Company, or
the stock of any successor company into which the Option or any substituted option or right becomes
exercisable pursuant to Section 10(c) hereof, is registered pursuant to Section 12(b) or 12(g) of
the Securities Exchange Act.

          (v) “Related Entity” shall mean any Parent, Subsidiary and any business, corporation,
partnership, limited liability company or other entity in which the Company, a Parent or a
Subsidiary holds a substantial ownership interest, directly or indirectly.

          (w) “Securities Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from
time to time.

          (x) “Share” shall mean a share of Common Stock.

          (y) “Subsidiary” shall mean any corporation (other than the Company), whether now or hereafter
existing, in an unbroken chain of corporations beginning with the Company, if each of the
corporations other than the last corporation in the unbroken chain owns stock possessing 50 percent
or more of the total combined voting power of all classes of stock in one of the other corporations
in such chain.

-3-

 

     3. Shares Available for Option Grants. The Committee or the Board may grant to
Optionees from time to time Options to purchase an aggregate of up to Two Million Seven Hundred
Fifty Thousand (2,750,000) Shares from the Company’s authorized and unissued Shares, less the
number of Shares with respect to issued and outstanding Options granted under the Company’s 1999
Directors and Consultants Stock Option Plan, as amended from time to time (the “Directors Plan”).
If any Option granted under the Plan and/or the Directors Plan shall terminate, expire, or be
canceled or surrendered as to any Shares, new Options may thereafter be granted covering such
Shares.

     4. Incentive and Non-Qualified Options.

          (a) An Option granted hereunder shall be either an Incentive Stock Option or a Non-Qualified
Stock Option as determined by the Committee or the Board at the time of grant of the Option and
shall clearly state whether it is an Incentive Stock Option or Non-Qualified Stock Option. All
Incentive Stock Options shall be granted within 10 years from the effective date of this Plan.
Incentive Stock Options may not be granted to any person who is not an Employee of the Company, the
Parent or a Subsidiary.

          (b) Options otherwise qualifying as Incentive Stock Options hereunder will not be treated as
Incentive Stock Options to the extent that the aggregate fair market value (determined at the time
the Option is granted) of the Shares, with respect to which Options meeting the requirements of
Section 422(b) of the Code are exercisable for the first time by any individual during any calendar
year (under all plans of the Company and its Parent and Subsidiaries, exceeds $100,000.

     5. Conditions for Grant of Options.

          (a) Each Option shall be evidenced by an Option Agreement that may contain any term deemed
necessary or desirable by the Committee or the Board, provided such terms are not inconsistent with
this Plan or any applicable law. Optionees shall be those persons selected by the Committee or the
Board from the class of all Employees, including Officers and Directors who are Employees.

          (b) In granting Options, the Committee or the Board shall take into consideration the
contribution the person has made to the success of the Company or its Subsidiaries and such other
factors as the Committee or the Board shall determine. The Committee or the Board shall also have
the authority to consult with and receive recommendations from officers and other personnel of the
Company and its Subsidiaries with regard to these matters. The Committee or the Board may from
time to time in granting Options under the Plan prescribe such other terms and conditions
concerning such Options as it deems appropriate, including, without limitation, (i) prescribing the
date or dates on which the Option becomes exercisable, (ii) providing that the Option rights accrue
or become exercisable in installments over a period of years, or upon the attainment of stated
goals or both, or (iii) relating an Option to the Continuous Service of the Optionee for a
specified period of time, provided that such terms and conditions are not more favorable to an
Optionee than those expressly permitted herein.

-4-

 

          (c) The Options granted to employees under this Plan shall be in addition to regular salaries,
pension, life insurance or other benefits related to their employment or Continuous Service with
the Company or its Related Entities. Neither the Plan nor any Option granted under the Plan shall
confer upon any person any right to employment or continuance of employment or Continuous Service
by the Company or its Related Entities.

          (d) The Committee or the Board shall have the discretion to grant Options that are exercisable
for unvested Shares. Should the Optionee’s Continuous Service cease while holding such unvested
Shares, the Company shall have the right to repurchase, at the exercise price paid per share, any
or all of those unvested Shares. The terms upon which such repurchase right shall be exercisable
(including the period and procedure for exercise and the appropriate vesting schedule for the
purchased shares) shall be established by the Committee or the Board and set forth in the Option
Agreement for the relevant Option.

          (e) Notwithstanding any other provision of this Plan, an Incentive Stock Option shall not be
granted to any person owning directly or indirectly (through attribution under Section 424(d) of
the Code) at the date of grant, stock possessing more than 10% of the total combined voting power
of all classes of stock of the Company (or of its parent or subsidiary corporation [as defined in
Section 424 of the Code] at the date of grant) unless the option price of such Option is at least
110% of the Fair Market Value of the Shares subject to such Option on the date the Option is
granted, and such Option by its terms is not exercisable after the expiration of five years from
the date such Option is granted.

          (f) Notwithstanding any other provision of this Plan, and in addition to any other
requirements of this Plan, the aggregate number of Options granted to any one Optionee may not
exceed Six Hundred Thousand (600,000), subject to adjustment as provided in Section 10 hereof.

     6. Option Price. The option price per Share of any Option shall be any price
determined by the Committee or the Board but shall not be less than the par value per Share;
provided, however, that in no event shall the option price per Share of any Incentive Stock Option
be less than the Fair Market Value of the Shares underlying such Option on the date such Option is
granted.

     7. Exercise of Options.

          (a) An Option shall be deemed exercised when (i) the Company has received written notice of
such exercise in accordance with the terms of the Option, (ii) full payment of the aggregate option
price of the Shares as to which the Option is exercised has been made, and (iii) arrangements that
are satisfactory to the Committee or the Board in its sole discretion have been made for the
Optionee’s payment to the Company of the amount that is necessary for the Company or Subsidiary
employing the Optionee to withhold in accordance with applicable Federal or state tax withholding
requirements.

-5-

 

          (b) The consideration to be paid for the Shares to be issued upon exercise of an Option, as
well as the method of payment of the exercise price and of any withholding and
employment taxes applicable thereto, shall be determined by the Committee or the Board and
may, in the discretion of the Committee or the Board, consist of: (1) cash, (2) certified or
official bank check, (3) money order, (4) Shares that have been held by the Optionee for at least
six (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), (5) the withholding
of Shares issuable upon exercise of the Option, (6) pursuant to a “cashless exercise” procedure, by
delivery of a properly executed exercise notice together with such other documentation, and subject
to such guidelines, as the Board or the Committee shall require to effect an exercise of the Option
and delivery to the Company by a licensed broker acceptable to the Company of proceeds from the
sale of Shares or a margin loan sufficient to pay the exercise price and any applicable income or
employment taxes, or (7) in such other consideration as the Committee or the Board deems
appropriate, or by a combination of the above. In the case of an Incentive Stock Option, the
permissible methods of payment shall be specified at the time the Option is granted. The Committee
or the Board in its sole discretion may accept a personal check in full or partial payment of any
Shares. If the exercise price is paid, and/or the Optionee’s tax withholding obligation is
satisfied, in whole or in part with Shares, or through the withholding of Shares issuable upon
exercise of the Option, the value of the Shares surrendered or withheld shall be their Fair Market
Value on the date the Option is exercised.

          (c) The Committee or the Board in its sole discretion may, on an individual basis or pursuant
to a general program established in connection with this Plan, cause the Company to lend money to
an Optionee, guarantee a loan to an Optionee, or otherwise assist an Optionee to obtain the cash
necessary to exercise all or a portion of an Option granted hereunder or to pay any tax liability
of the Optionee attributable to such exercise. If the exercise price is paid in whole or part with
the Optionee’s promissory note, such note shall (i) provide for full recourse to the maker, (ii) be
collateralized by the pledge of the Shares that the Optionee purchases upon exercise of the Option,
(iii) bear interest at the prime rate of the Company’s principal lender, and (iv) contain such
other terms as the Committee or the Board in its sole discretion shall reasonably require.

          (d) No Optionee shall be deemed to be a holder of any Shares subject to an Option unless and
until a stock certificate or certificates for those Shares are issued to that person(s) under the
terms of this Plan. No adjustment shall be made for dividends (ordinary or extraordinary, whether
in cash, securities or other property) or distributions or other rights for which the record date
is prior to the date the stock certificate is issued, except as expressly provided in Section 10
hereof.

     8. Exercisability of Options.

          (a) Any Option shall become exercisable in such amounts, at such intervals and upon such terms
as the Committee or the Board shall provide in the Option Agreement for that Option, except as
otherwise provided in this Section 8.

          (b) The expiration date of an Option shall be determined by the Committee or the Board at the
time of grant, but in no event shall an Option be exercisable after the expiration of 10 years from
the date of grant of the Option.

-6-

 

          (c) Unless otherwise provided in any Option, each outstanding Option shall become immediately
fully exercisable in the event of a “Change in Control” or in the event that the Committee or the
Board exercises its discretion to provide a cancellation notice with respect to the Option pursuant
to Section 9(b) hereof. For this purpose, the term “Change in Control” shall mean:

               (i) Approval by the shareholders of the Company of a reorganization, merger, consolidation or
other form of corporate transaction or series of transactions (other than an initial public
offering, private placement or other offering of the Company), in each case, with respect to which
persons who were the shareholders of the Company immediately prior to such reorganization, merger
or consolidation or other transaction do not, immediately thereafter, own more than 50% of the
combined voting power entitled to vote generally in the election of directors of the reorganized,
merged or consolidated company’s then outstanding voting securities, in substantially the same
proportions as their ownership immediately prior to such reorganization, merger, consolidation or
other transaction, or a liquidation or dissolution of the Company or the sale of all or
substantially all of the assets of the Company (unless such reorganization, merger, consolidation
or other corporate transaction, liquidation, dissolution or sale is subsequently abandoned); or

               (ii) The acquisition (other than from the Company) by any person, entity or “group”, within
the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act, of beneficial ownership
(within the meaning of Rule 13-d promulgated under the Securities Exchange Act, of more than 50% of
either the then outstanding shares of the Company’s Common Stock or the combined voting power of
the Company’s then outstanding voting securities entitled to vote generally in the election of
directors (hereinafter referred to as the ownership of a “Controlling Interest”) excluding, for
this purpose, any acquisitions by (1) the Company or its Subsidiaries, (2) any person, entity or
“group” that as of the date on which the Option is granted owns beneficial ownership (within the
meaning of Rule 13d-3 promulgated under the Securities Exchange Act) of a Controlling Interest, (3)
any employee benefit plan of the Company or its Subsidiaries, or (4) Howard Leonhardt.

          (d) The Committee or the Board may in its sole discretion accelerate the date on which any
Option may be exercised and may accelerate the vesting of any Shares subject to any Option or
previously acquired by the exercise of any Option.

     9. Termination of Option Period.

          (a) Unless otherwise provided in any Option Agreement, the unexercised portion of any Option
shall automatically and without notice terminate and become null and void at the time of the
earliest to occur of the following:

               (i) three months after the date on which the Optionee’s Continuous Service is terminated other
than by reason of (A) Cause, which, solely for purposes of this Plan, shall mean the termination of
the Optionee’s Continuous Service by reason of the Optionee’s willful misconduct or gross
negligence, (B) a mental or physical disability (within the meaning
of Internal Revenue Code Section nee)) of the Optionee as determined by a medical doctor
satisfactory to the Committee, or (C) death of the Optionee;

-7-

 

               (ii) immediately upon the termination of the Optionee’s Continuous Service for Cause;

               (iii) twelve months after the date on which the Optionee’s Continuous Service is terminated by
reason of a mental or physical disability (within the meaning of Section 22(e) of the Code) as
determined by a medical doctor satisfactory to the Committee or the Board;

               (iv) (A) twelve months after the date of termination of the Optionee’s Continuous Service by
reason of the death of the Optionee, or, if later, (B) three months after the date on which the
Optionee shall die if such death shall occur during the one year period specified in Subsection
9(a)(iii) hereof;

               (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; or

               (vi) the tenth anniversary of the date of grant of the Option.

          (b) To the extent not previously exercised, (i) each 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 (each a “Corporate Transaction”) in which
either the Company does not survive or the Shares are exchange for or converted into securities
issued by another entity, unless the successor or acquiring entity, or an affiliate thereof,
assumes the Option or substitutes an equivalent option or right pursuant to Section 10(c) hereof,
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(c)(i) hereof, 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 9(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 Optionees may have a reasonable
period of time prior to the closing date of such transaction within which to exercise any Options
that then are exercisable (including any Options that may become exercisable upon the closing date
of such transaction). An Optionee may condition his exercise of any Option upon the consummation
of a transaction referred to in this Section 9(b).

     10. Adjustment of Shares.

          (a) If at any time while the Plan is in effect or unexercised Options are outstanding, there
shall be any increase or decrease in the number of issued and outstanding Shares through the
declaration of a stock dividend or through any recapitalization resulting in a stock split-up,
combination or exchange of Shares, then and in that event, the Board or the Committee:

-8-

 

               (i) shall make appropriate adjustment in the maximum number of Shares available for grant
under the Plan, or available for grant to any person under the Plan, so that the same percentage of
the Company’s issued and outstanding Shares shall continue to be subject to being so optioned; and

               (ii) may, in its discretion, make any adjustments it deems appropriate in the number of Shares
and the exercise price per Share thereof then subject to any outstanding Option, so that the same
percentage of the Company’s issued and outstanding Shares shall remain subject to purchase at the
same aggregate exercise price.

          (b) Unless otherwise provided in any Option Agreement, the Board or the Committee may change
the terms of Options outstanding under this Plan, with respect to the option price or the number of
Shares subject to the Options, or both, when, in the sole discretion of the Board or the Committee,
such adjustments become appropriate so as to preserve benefits under the Plan.

          (c) In the event of any Corporate Transaction as defined in Section 9(b) hereof, in which the
Company does not survive, or in which the Shares are exchanged for or converted into securities
issued by another entity, then the successor or acquiring entity or an affiliate thereof may, with
the consent of the Committee or the Board, assume each outstanding Option or substitute an
equivalent option or right pursuant to and in accordance with the terms and conditions of the
agreement effectuating the Corporate Transaction.

          (d) Except as otherwise expressly provided herein, the issuance by the Company of shares of
its capital stock of any class, or securities convertible into shares of capital stock of any
class, either in connection with a direct sale or upon the exercise of rights or warrants to
subscribe therefor, or upon conversion of shares or obligations of the Company convertible into
such shares or other securities, shall not affect, and no adjustment by reason thereof shall be
made to, the number of or exercise price for Shares then subject to outstanding Options granted
under the Plan.

          (e) Without limiting the generality of the foregoing, the existence of outstanding Options
granted under the Plan shall not affect in any manner the right or power of the Company to make,
authorize or consummate (i) any or all adjustments, recapitalizations, reorganizations or other
changes in the Company’s capital structure or its business; (ii) any merger or consolidation of the
Company; (iii) any issue by the Company of debt securities, or preferred or preference stock that
would rank above the Shares subject to outstanding Options; (iv) the dissolution or liquidation of
the Company; (v) any sale, transfer or assignment of all or any part of the assets or business of
the Company; or (vi) any other corporate act or proceeding, whether of a similar character or
otherwise.

     11. Transferability of Options and Shares. No Incentive Stock Option, and unless the
prior written consent of the Committee or the Board is obtained (which consent may be withheld for
any reason) and the transaction does not violate the requirements of Rule 16b-3 promulgated under
the Securities Exchange Act no Non-Qualified Stock Option, shall be subject to alienation,
assignment, pledge, charge or other transfer other than by the Optionee by will or the laws of

-9-

 

descent and distribution, and any attempt to make any such prohibited transfer shall be void.
Each Option shall be exercisable during the Optionee’s lifetime only by the Optionee, or in the
case of a Non-Qualified Stock Option that has been assigned or transferred with the prior written
consent of the Committee or the Board, only by the permitted assignee.

     12. Restrictive Covenants. As a condition to an Optionee receiving a grant of an
Option under this Plan, or the receiving of Shares upon exercise of such Option, the Committee or
the Board may require that the Optionee comply with certain restrictive covenants to be specified
in the Optionee’s Option Agreement. In such a case, the Optionee must execute an Option Agreement
acknowledging the restrictive covenants set forth therein, consenting to comply with such
restrictive covenants, and that the Option Agreement is conditioned on compliance with those
restrictive covenants.

     13. Issuance of Shares.

          (a) Notwithstanding any other provision of this Plan, the Company shall not be obligated to
issue any Shares unless it is advised by counsel of its selection that it may do so without
violation of the applicable Federal and State laws pertaining to the issuance of securities, and
may require any stock so issued to bear a legend, may give its transfer agent instructions, and may
take such other steps, as in its judgment are reasonably required to prevent any such violation.

          (b) As a condition to any sale or issuance of Shares upon exercise of any Option, the
Committee or the Board may require such agreements or undertakings as the Committee or the Board
may deem necessary or advisable to facilitate compliance with any applicable law or regulation
including, but not limited to, the following:

               (i) a representation and warranty by the Optionee to the Company, at the time any Option is
exercised, that he is acquiring the Shares to be issued to him for investment and not with a view
to, or for sale in connection with, the distribution of any such Shares;

               (ii) a representation, warranty and/or agreement to be bound by any legends endorsed upon the
certificate(s) for the Shares that are, in the opinion of the Committee or the Board, necessary or
appropriate to facilitate compliance with the provisions of any securities laws deemed by the
Committee or the Board to be applicable to the issuance and transfer of those Shares; and

               (iii) a Stockholders Agreement in a form prescribed by the Board or the Committee respecting
the transfer and disposition of the Shares and restrictions thereon prior to the Publicly-Traded
Date.

     14. Administration of the Plan.

          (a) The Plan shall be administered by the Board or, at the discretion of the Board, by a
committee appointed by the Board (the “Committee”) which shall be composed of two or more
Directors. At any time after the Publicly Traded Date, the membership of the

-10-

 

Committee shall be constituted so as to comply at all times with the then applicable
requirements for Outside Directors of Rule 16b-3 promulgated under the Securities Exchange Act and
Section 162(m) of the Code. The Committee shall serve at the pleasure of the Board and shall have
the powers designated herein and such other powers as the Board may from time to time confer upon
it.

          (b) The Committee or the Board from time to time, may adopt rules and regulations for carrying
out the purposes of the Plan. The determinations of the Committee or the Board, and its
interpretation and construction of any provision of the Plan or any Option Agreement, shall be
final and conclusive.

          (c) Any and all decisions or determinations of the Committee shall be made either (i) by a
majority vote of the members of the Committee at a meeting or (ii) without a meeting by the
unanimous written approval of the members of the Committee.

     15. Withholding or Deduction for Taxes. If at any time specified herein for the
making of any issuance or delivery of any Option or Common Stock to any Optionee, any law or
regulation of any governmental authority having jurisdiction in the premises shall require the
Company to withhold, or to make any deduction for, any taxes or to take any other action in
connection with the issuance or delivery then to be made, the issuance or delivery shall be
deferred until the withholding or deduction shall have been provided for by the Optionee or
beneficiary, or other appropriate action shall have been taken.

     16. Interpretation.

          (a) As it is the intent of the Company that after the Publicly-Traded Date, the Plan shall
comply in all respects with Rule 16b-3 promulgated under the Securities Exchange Act (“Rule
16b-3”), any ambiguities or inconsistencies in construction of the Plan shall be interpreted to
give effect to such intention, and if any provision of the Plan is found not to be in compliance
with Rule 16b-3, such provision shall be deemed null and void to the extent required to permit the
Plan to comply with Rule 16b-3. The Committee or the Board may from time to time adopt rules and
regulations under, and amend, the Plan in furtherance of the intent of the foregoing.

          (b) The Plan and any Option Agreements entered into pursuant to the Plan shall be administered
and interpreted so that all Incentive Stock Options granted under the Plan will qualify as
Incentive Stock Options under Section 422 of the Code. If any provision of the Plan or any Option
Agreement relating to an Incentive Stock Option should be held invalid for the granting of
Incentive Stock Options or illegal for any reason, that determination shall not affect the
remaining provisions hereof, but instead the Plan and the Option Agreement shall be construed and
enforced as if such provision had never been included in the Plan or the Option Agreement.

          (c) This Plan shall be governed by the laws of the State of Florida.

          (d) Headings contained in this Plan are for convenience only and shall in no manner be
construed as part of this Plan.

-11-

 

          (e) Any reference to the masculine, feminine, or neuter gender shall be a reference to such
other gender as is appropriate.

     17. Amendment and Discontinuation of the Plan. The Committee or the Board may from
time to time amend, suspend or terminate the Plan or any Option; provided, however, that, any
amendment to the Plan shall be subject to the approval of the Company’s shareholders if such
shareholder approval is required by any applicable federal or state law or regulation (including,
without limitation, Rule 16b-3 or to comply with Section 162(m) of the Code) or the rules of any
stock exchange or automated quotation system on which the Common Stock may then be listed or
granted. Except to the extent provided in Sections 9 and 10 hereof, no amendment, suspension or
termination of the Plan or any Option issued hereunder shall substantially impair the rights or
benefits of any Optionee pursuant to any Option previously granted without the consent of the
Optionee.

     18. Effective Date and Termination Date. The effective date of the Plan is the
Effective Date, and the Plan shall terminate on the 10th anniversary of the Effective Date. This
Plan, as amended and restated, shall be effective as of October 8, 200l (which is the date on which
the Board adopted the Plan, as so amended and restated). The Plan, as amended and restated, shall
be submitted to the shareholders of the Company for their approval and adoption, and Options
hereunder may be granted prior to such approval and adoption; provided, however, that any Incentive
Stock Options hereunder, and but only to the extent otherwise required by law or the rules of any
stock exchange or automated quotation system in which the Common Stock may be listed, any
Non-Qualified Stock Options hereunder, may be granted prior to such approval and adoption but shall
be contingent upon obtaining such approval and adoption.

-12-EX-10.2 1999 Directors/Consultants Stock Option Pl

 

Exhibit 10.2

 

BIOHEART, INC.

1999 DIRECTORS AND CONSULTANTS STOCK OPTION PLAN

 

     1. Purpose. The purpose of this Plan is to advance the interests of BIOHEART, INC., a
Florida corporation (the “Company”), and its Subsidiaries by providing an additional incentive to
attract and retain qualified and competent persons who provide management services and upon whose
efforts and judgment the success of the Company and its Subsidiaries is largely dependent, through
the encouragement of stock ownership in the Company by such persons.

     2. Definitions. As used herein, the following terms shall have the meaning indicated:

          (a) “Board” shall mean the Board of Directors of the Company.

          (b) “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.

          (c) “Committee” shall mean the committee appointed by the Board pursuant to Section 13(a)
hereof; or, if such committee is not appointed, the Board.

          (d) “Common Stock” shall mean the Company’s Common Stock, par value $.01 per share.

          (e) “Company” shall mean BIOHEART, INC., a Florida corporation.

          (f) “Director” shall mean a member of the Board.

          (g) “Effective Date” shall mean December 1, 1999.

          (h) “Fair Market Value” of a Share on any date of reference shall mean the fair market value
of a Share of the Company’s Common Stock on that date, as determined by the Committee in a fair and
uniform manner. After the Publicly-Traded Date, the Fair Market Value shall mean the “Closing
Price” (as defined below) of the Common Stock on the business day immediately preceding the date of
reference, unless the Committee in its sole discretion shall determine otherwise in a fair and
uniform manner. For the purpose of determining Fair Market Value, the “Closing Price” of the Common
Stock on any business day shall be (i) if the Common Stock is listed or admitted for trading on any
United States national securities exchange, or if actual transactions are otherwise reported on a
consolidated transaction reporting system, the last reported sale price of Common Stock on such
exchange or reporting system, as reported in any newspaper of general circulation, (ii) if the
Common Stock is quoted on the National Association of Securities

 

 

Dealers Automated Quotations System (“NASDAQ”), or any similar system of automated
dissemination of quotations of securities prices in common use, the last reported sale price of
Common Stock on such system or, if sales prices are not reported, the mean between the closing high
bid and low asked quotations for such day of Common Stock on such system, as reported in any
newspaper of general circulation or (iii) if neither clause (i) or (ii) is applicable, the mean
between the high bid and low asked quotations for the Common Stock as reported by the National
Quotation Bureau, Incorporated if at least two securities dealers have inserted both bid and asked
quotations for Common Stock on at least five of the ten preceding days.

          (i) “Internal Revenue Code” shall mean the Internal Revenue Code of 1986, as amended from time
to time.

          (j) “Officer” shall mean the Company’s Chairman of the Board, President, Chief Executive
Officer, principal financial officer, principal accounting officer, any vice president of the
Company in charge of a principal business unit, division or function (such as sales, administration
or finance), any other officer who performs a policy-making function, or any other person who
performs similar policy-making functions for the Company. Officers of Subsidiaries shall be deemed
Officers of the Company if they perform such policy-making functions for the Company. As used in
this paragraph, the phrase “policy-making function” does not include policy-making functions that
are not significant. If pursuant to Item 401(b) of Regulation S-K (17 C.F.R. § 229.401(b)) the
Company identifies a person as an “executive officer,” the person so identified shall be deemed an
“Officer” even though such person may not otherwise be an “Officer” pursuant to the foregoing
provisions of this paragraph.

          (k) “Option” (when capitalized) shall mean any option granted under this Plan.

          (l) “Option Agreement” means the agreement between the Company and the Optionee for the grant
of an option.

          (m) “Optionee” shall mean a person to whom a stock option is granted under this Plan or any
person who succeeds to the rights of such person under this Plan by reason of the death of such
person.

          (n) “Outside Director” shall mean a member of the Board who qualifies as an “outside director”
under Section 162(m) of the Internal Revenue Code and the regulations thereunder and as a
“Non-Employee Director” under Rule 16b-3 promulgated under the Securities Exchange Act.

          (o) “Plan” shall mean this Stock Option Plan for the Company.

          (p) “Publicly-Traded Date,” when applied to the Shares, shall mean the date on which the
Common Stock of the Company, or the stock of any successor company into which the Shares are substituted or exchanged, is registered pursuant to Section 12(b) or
12(g) of the Securities Exchange Act.

-2-

 

          (q) “Securities Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

          (r) “Share” shall mean a share of Common Stock.

          (s) “Subsidiary” shall mean any corporation (other than the Company) in any unbroken chain of
corporations beginning with the Company if, at the time of the granting of the Option, each of the
corporations other than the last corporation in the unbroken chain owns stock possessing 50 percent
or more of the total combined voting power of all classes of stock in one of the other corporations
in such chain.

     3. Shares Available for Option Grants. The Committee or the Board may grant to
Optionees from time to time Options to purchase an aggregate of up to Two Million (2,000,000)
Shares from the Company’s authorized and unissued Shares, less the number of Shares with respect to
issued and outstanding Options granted under the Company’s 1999 Officers and Employees Stock Option
Plan (the “Employee Plan”). If any Option granted under the Plan and/or the Employee Plan shall
terminate, expire, or be canceled or surrendered as to any Shares, new Options may thereafter be
granted covering such Shares.

     4. Conditions for Grant of Options.

          (a) Each Option shall be evidenced by an option agreement that may contain any term deemed
necessary or desirable by the Committee or the Board, provided such terms are not inconsistent with
this Plan or any applicable law. Optionees shall be (i) Directors who are not employees of the
Company or of any Subsidiary, and (ii) those persons selected by the Committee or the Board who
provide consulting or other services as independent contractors to the Company. Any person who
files with the Committee, in a form satisfactory to the Committee, a written waiver of eligibility
to receive any Option under this Plan shall not be eligible to receive any Option under this Plan
for the duration of such waiver.

          (b) In granting Options, the Committee or the Board shall take into consideration the
contribution the person has made to the success of the Company or its Subsidiaries and such other
factors as the Committee shall determine. The Committee or the Board shall also have the authority
to consult with and receive recommendations from officers and other personnel of the Company and
its Subsidiaries with regard to these matters. The Committee or the Board may from time to time in
granting Options under the Plan prescribe such other terms and conditions concerning such Options
as it deems appropriate, including, without limitation, (i) prescribing the date or dates on which
the Option becomes exercisable, (ii) providing that the Option rights accrue or become exercisable
in installments over a period of years, or upon the attainment of stated goals or both, or (iii)
relating an Option to the continued service of the Optionee for a specified
period of time, provided that such terms and conditions are not more favorable to an Optionee
than those expressly permitted herein.

-3-

 

          (c) Neither the Plan nor any Option granted under the Plan shall confer upon any person any
right to service or continuance of service with the Company or its Subsidiaries.

          (d) Notwithstanding any other provision of this Plan, and in addition to any other
requirements of this Plan, the aggregate number of Options granted to any one Optionee may not
exceed Six Hundred Thousand (600,000), subject to adjustment as provided in Section 10 hereof.

     5. Option Price. The option price per Share of any Option shall be any price
determined by the Committee but shall not be less than the par value per Share.

     6. Exercise of Options. An Option shall be deemed exercised when (i) the Company has
received written notice of such exercise in accordance with the terms of the Option, and (ii) full
payment of the aggregate option price of the Shares as to which the Option is exercised has been
made. The consideration to be paid for the Shares to be issued upon exercise of an Option, as well
as the method of payment of the exercise price, shall be determined by the Committee or the Board
and may, in the discretion of the Committee or the Board, consist of: (1) cash, (2) certified or
official bank check, (3) money order, (4) Shares that have been held by the Optionee for at least
six (6) months (or such other Shares as the Company determines will not cause the Company to
recognize for a financial accounting purposes a change for compensation expense), (5) the
withholding of Shares issuable upon exercise of the Option, (6) pursuant to a “cashless exercise”
procedure, by delivery of a properly executed exercise notice together with such other
documentation, and subject to such guidelines, as the Board or the Committee shall require to
effect an exercise of the Option and delivery to the Company by a licensed broker acceptable to the
Company of proceeds from the sale of Shares or a margin loan sufficient to pay the exercise price
and any applicable income or employment taxes, or (7) in such other consideration as the Committee
or the Board deems appropriate, or by a combination of the above. The Committee or the Board in its
sole discretion may accept a personal check in full or partial payment of any Shares. If the
exercise price is paid in whole or in part with Shares, or through the withholding of Shares
issuable upon exercise of the Option, the value of the Shares surrendered or withheld shall be
their Fair Market Value on the date the Option is exercised. The Company in its sole discretion
may, on an individual basis or pursuant to a general program established in connection with this
Plan, lend money to an Optionee, guarantee a loan to an Optionee, or otherwise assist an Optionee
to obtain the cash necessary to exercise all or a portion of an Option granted hereunder or to pay
any tax liability of the Optionee attributable to such exercise. If the exercise price is paid in
whole or part with Optionee’s promissory note, such note shall (i) provide for full recourse to the
maker, (ii) be collateralized by the pledge of the Shares that the Optionee purchases upon exercise
of such Option, (iii) bear interest at the prime rate of the Company’s principal lender, and (iv)
contain such other terms as the Board in its sole discretion shall reasonably require. No Optionee
shall be deemed to be a holder of any Shares subject to an Option

-4-

 

unless and until a stock certificate or certificates for such Shares are issued to such
person(s) under the terms of this Plan. No adjustment shall be made for dividends (ordinary or
extraordinary, whether in cash, securities or other property) or distributions or other rights for
which the record date is prior to the date such stock certificate is issued, except as expressly
provided in Section 10 hereof.

     7. Exercisability of Options. Any Option shall become exercisable in such amounts, at
such intervals and upon such terms as the Committee or the Board shall provide in such Option,
except as otherwise provided in this Section 8.

          (a) The expiration date of an Option shall be determined by the Committee at the time of
grant, but in no event shall an Option be exercisable after the expiration of 10 years from the
date of grant of the Option.

          (b) Unless otherwise provided in any Option, each outstanding Option shall become immediately
fully exercisable in the event of a “Change in Control” or in the event that the Committee or the
Board exercises its discretion to provide a cancellation notice with respect to the Option pursuant
to Section 9(b) hereof. For this purpose, the term “Change in Control” shall mean:

               (i) Approval by the shareholders of the Company of a reorganization, merger, consolidation or
other form of corporate transaction or series of transactions (other than an initial public
offering, private placement or other offering of the Company), in each case, with respect to which
persons who were the shareholders of the Company immediately prior to such reorganization, merger
or consolidation or other transaction do not, immediately thereafter, own more than 50% of the
combined voting power entitled to vote generally in the election of directors of the reorganized,
merged or consolidated company’s then outstanding voting securities, in substantially the same
proportions as their ownership immediately prior to such reorganization, merger, consolidation or
other transaction, or a liquidation or dissolution of the Company or the sale of all or
substantially all of the assets of the Company (unless such reorganization, merger, consolidation
or other corporate transaction, liquidation, dissolution or sale is subsequently abandoned); or

               (ii) The acquisition (other than from the Company) by any person, entity or “group”, within
the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act, of [more than 50%] [20%
or 30%] of either the then outstanding shares of the Company’s Common Stock or the combined voting
power of the Company’s then outstanding voting securities entitled to vote generally in the
election of directors (hereinafter referred to as the ownership of a “Controlling Interest”)
excluding, for this purpose, any acquisitions by (1) the Company or its Subsidiaries, (2) any
person, entity or “group” that as of the date on which the Option is granted owns beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the Securities Exchange Act) of a
Controlling Interest, (3) any employee benefit plan of the Company or its Subsidiaries, or (4)
Howard Leonhardt.

-5-

 

          (c) The Committee or the Board may in its sole discretion accelerate the date on which any
Option may be exercised and may accelerate the vesting of any Shares subject to any Option or
previously acquired by the exercise of any Option.

     8. Termination of Option Period.

          (a) Unless otherwise provided in any Option agreement, the unexercised portion of any Option
shall automatically and without notice terminate and become null and void at the time of the
earliest to occur of the following:

               (i) three (3) months after the date on which the Optionee’s service with the Company is
terminated other than by reason of (A) Cause, which, solely for purposes of this Plan, 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 Internal Revenue Code
Section 22(e) of the Optionee as determined by a medical doctor satisfactory to the Committee, or
(C) death of the Optionee;

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

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

               (iv) (A) twelve (12) months after the date of termination of the Optionee’s service with the
Company by reason of death of the Optionee, or, if later, (B) three months after the date on which
the Optionee shall die if such death shall occur during the one year period specified in Subsection
9(a)(iii) hereof;

               (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; or

               (vi) ten years from the date of grant of the Option.

          (b) To the extent not previously exercised, (i) each 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) hereof, 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) hereof
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 9(b)
a

-6-

 

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 Optionees may have a
reasonable period of time prior to the closing date of such transaction within which to exercise
any Options that then are exercisable (including any Options that may become exercisable upon the
closing date of such transaction). An Optionee may condition his exercise of any Option upon the
consummation of a transaction referred to in this Section 9(b).

     9. Adjustment of Shares.

          (a) If at any time while the Plan is in effect or unexercised Options are outstanding, there
shall be any increase or decrease in the number of issued and outstanding Shares through the
declaration of a stock dividend or through any recapitalization resulting in a stock split-up,
combination or exchange of Shares, then and in such event:

               (i) appropriate adjustment shall be made in the maximum number of Shares available for grant
under the Plan, so that the same percentage of the Company’s issued and outstanding Shares shall
continue to be subject to being so optioned; and

               (ii) the Board or the Committee may, in its discretion, make any adjustments it deems
appropriate in the number of Shares and the exercise price per Share thereof then subject to any
outstanding Option, so that the same percentage of the Company’s issued and outstanding Shares
shall remain subject to purchase at the same aggregate exercise price.

          (b) Unless otherwise provided in any Option, the Committee may change the terms of Options
outstanding under this Plan, with respect to the option price or the number of Shares subject to
the Options, or both, when, in the Committee’s sole discretion, such adjustments become appropriate
so as to preserve but not increase benefits under the Plan.

          (c) In the event of a proposed sale of all or substantially all of the Company’s assets or any
reorganization, merger, consolidation or other form of corporate transaction in which the Company
does not survive, where the securities of the successor corporation, or its parent company, are
issued to the Company’s shareholders, then the successor corporation or a parent of the successor
corporation may, with the consent of the Committee or the Board, assume each outstanding Option or
substitute an equivalent option or right. If the successor corporation, or its parent, does not
cause such an assumption or substitution to occur, or the Committee or the Board does not consent
to such an assumption or substitution, then each Option shall terminate pursuant to Section 9(b)
hereof upon the consummation of sale, merger, consolidation or other corporate transaction.

          (d) Except as otherwise expressly provided herein, the issuance by the Company of shares of
its capital stock of any class, or securities convertible into shares of capital stock of any
class, either in connection with direct sale or upon the exercise of rights

-7-

 

or warrants to subscribe therefor, or upon conversion of shares or obligations of the Company
convertible into such shares or other securities, shall not affect, and no adjustment by reason
thereof shall be made to, the number of or exercise price for Shares then subject to outstanding
Options granted under the Plan.

          (e) Without limiting the generality of the foregoing, the existence of outstanding Options
granted under the Plan shall not affect in any manner the right or power of the Company to make,
authorize or consummate (i) any or all adjustments, recapitalizations, reorganizations or other
changes in the Company’s capital structure or its business; (ii) any merger or consolidation of the
Company; (iii) any issue by the Company of debt securities, or preferred or preference stock that
would rank above the Shares subject to outstanding Options; (iv) the dissolution or liquidation of
the Company; (v) any sale, transfer or assignment of all or any part of the assets or business of
the Company; or (vi) any other corporate act or proceeding, whether of a similar character or
otherwise.

     10. Transferability of Options. Unless the prior written consent of the Committee or
the Board is obtained (which consent may be withheld for any reason) and the transaction does not
violate the requirements of Rule 16b-3 promulgated under the Securities Exchange Act, no Option
shall be subject to alienation, assignment, pledge, charge or other transfer other than by the
Optionee by will or the laws of descent and distribution, and any attempt to make any such
prohibited transfer shall be void. Each Option shall be exercisable during the Optionee’s lifetime
only by the Optionee, or in the case of an Option that has been assigned or transferred with the
prior written consent of the Committee or the Board, only by the permitted assignee.

     11. Restrictive Covenants. As a condition to a Participant receiving a grant of an
Option under this Plan, or the receiving of Shares upon exercise of such Option, the Committee or
the Board may require that the Participant comply with certain restrictive covenants to be
specified in the Participant’s Option Agreement. In such a case, the Participant must execute an
Option Agreement acknowledging the restrictive covenants set forth therein, consenting to comply
with such restrictive covenants, and that the Option Agreement is conditioned on compliance with
those restrictive covenants

     12. Issuance of Shares.

          (a) Notwithstanding any other provision of this Plan, the Company shall not be obligated to
issue any Shares unless it is advised by counsel of its selection that it may do so without
violation of the applicable Federal and State laws pertaining to the issuance of securities, and
may require any stock so issued to bear a legend, may give its transfer agent instructions, and may
take such other steps, as in its judgment are reasonably required to prevent any such violation.

          (b) As a condition to any sale or issuance of Shares upon exercise of any Option, the
Committee may require such agreements or undertakings as the Committee may deem necessary or
advisable to facilitate compliance with any applicable law or regulation including, but not limited
to, the following:

-8-

 

               (i) a representation and warranty by the Optionee to the Company, at the time any Option is
exercised, that he is acquiring the Shares to be issued to him for investment and not with a view
to, or for sale in connection with, the distribution of any such Shares;

               (ii) a representation, warranty and/or agreement to be bound by any legends endorsed upon the
certificate(s) for such Shares that are, in the opinion of the Committee, necessary or appropriate
to facilitate compliance with the provisions of any securities laws deemed by the Committee to be
applicable to the issuance and transfer of such Shares; and

               (iii) a Stockholders Agreement in a form prescribed by the Board or the Committee respecting
the transfer and disposition of the Shares and restrictions thereon prior to the Publicly-Traded
Date.

13. Administration of the Plan.

          (a) The Plan shall be administered by the Board or, at the discretion of the Board, by a
committee appointed by the Board (the “Committee”) which shall be composed of two or more
Directors. At any time that any shares of the Common Stock of the Company shall be registered under
Section 12 of the Securities Exchange Act of 1934, the membership of the Committee shall be
constituted so as to comply at all times with the then applicable requirements for Outside
Directors of Rule 16b-3 promulgated under the Securities Exchange Act and Section 162(m) of the
Internal Revenue Code. The Committee shall serve at the pleasure of the Board and shall have the
powers designated herein and such other powers as the Board may from time to time confer upon it.

          (b) The Board may grant Options pursuant to this Plan to any persons to whom Options may be
granted under Section 5(a)) hereof.

          (c) The Committee or the Board, from time to time, may adopt rules and regulations for
carrying out the purposes of the Plan. The determinations by the Board or the Committee and its
interpretation and construction of any provision of the Plan or any Option shall be final and
conclusive.

          (d) Any and all decisions or determinations of the Board or the Committee shall be made either
(i) by a majority vote of the members of the Board or the Committee at a meeting or (ii) without a
meeting by the unanimous written approval of the members of the Board or the Committee.

     14. Withholding or Deduction for Taxes. If at any time specified herein for the making
of any issuance or delivery of any Option or Common Stock to any Optionee, any law or regulation of
any governmental authority having jurisdiction in the premises shall require the Company to
withhold, or to make any deduction for, any taxes or take any other action in connection with the
issuance or delivery then to be made, such issuance or
delivery shall be deferred until such withholding or deduction shall have been provided for by
the Optionee or beneficiary, or other appropriate action shall have been taken.

-9-

 

     15. Interpretation.

          (a) As it is the intent of the Company that the Plan comply in all respects with Rule 16b-3
promulgated under the Securities Exchange Act (“Rule 16b-3”), any ambiguities or inconsistencies in
construction of the Plan shall be interpreted to give effect to such intention, and if any
provision of the Plan is found not to be in compliance with Rule 16b-3, such provision shall be
deemed null and void to the extent required to permit the Plan to comply with Rule 16b-3. The
Committee or the Board may from time to time adopt rules and regulations under, and amend, the Plan
in furtherance of the intent of the foregoing.

          (b) This Plan shall be governed by the laws of the State of Florida.

          (c) Headings contained in this Plan are for convenience only and shall in no manner be
construed as part of this Plan.

          (d) Any reference to the masculine, feminine, or neuter gender shall be a reference to such
other gender as is appropriate.

     16. Amendment and Discontinuation of the Plan. The Committee or the Board may from
time to time amend, suspend or terminate the Plan or any Option; provided, however, that, any
amendment to the Plan shall be subject to the approval of the Company’s shareholders if such
shareholder approval is required by any federal or state law or regulation (including, without
limitation, at any time after the Publicly-Traded Date, Rule 16b-3 or to comply with Section 162(m)
of the Internal Revenue Code) or the rules of any Stock exchange or automated quotation system on
which the Common Stock may then be listed or granted. Except to the extent provided in Sections 9
and 10 hereof, no amendment, suspension or termination of the Plan or any Option issued hereunder
shall substantially impair the rights or benefits of any Optionee pursuant to any Option previously
granted without the consent of the Optionee.

     17. Effective Date and Termination Date. The effective date of the Plan is the date on
which the Board adopts this Plan, and the Plan shall terminate on the 10th anniversary of the
Effective Date.

-10-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}]]