Document:

Exhibit 10.1

                                                                    06011-001

                         EXCLUSIVE OPTION AGREEMENT

   This Exclusive Option Agreement (hereinafter called "Agreement"), to be
effective as of the 15th day of March, 2007 (hereinafter called "Effective
Date"), is by and among The Cleveland Clinic Foundation (hereinafter, "CCF")
with its principal location at 9500 Euclid Ave., Cleveland, Ohio 44195 and
IVPSA, with its principal location at 500 N. Rainbow, Suite 300, Las Vegas,
NV 89107 (hereinafter, "OPTIONEE"). Collectively, both entities may
hereinafter be referenced to as "Party" or "Parties."

RECITALS:
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   Whereas, CCF owns the Licensable Technology as defined below;

   Whereas, OPTIONEE specializes in developing technology and bringing new
technologies to market;

   Whereas, OPTIONEE desires to investigate and conduct due diligence with
respect to the commercial viability of the Licensable Technology prior to
executing the License Agreement;

   NOW, THEREFORE, for and in consideration of the premises and other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, and intending to be legally bound hereby, the Parties hereto
expressly agree as fellows:

1.   DEFINITIONS
     -----------

   A. "Affiliates" means any corporation or other business entity which
controls, is controlled by or is under common control with OPTIONEE. For
purposes of this Section 1.1, "control" shall mean direct or indirect
ownership of (i) at least fifty percent (50%) of the outstanding stock or
other voting rights entitled to elect directors, or (ii) in any country where
the local law shall not permit foreign equity participation of at least fifty
percent (50%) then the maximum percentage of such outstanding stock or voting
rights permitted by local law.

   B. "Confidential Information" means any confidential or proprietary
information furnished by one party (the "Disclosing Party") to the other
party (the "Receiving Party") in connection with this Agreement, provided
that such information is specifically designated as confidential.
Confidential Information shall include, but not be limited to, the following
when specifically designated as confidential: business information, trade
secrets, technical information, know-how, engineering process, intellectual
property, business plans and strategies, business operations and systems,
marketing techniques, material pricing policies, information concerning
employees, customers, licensees and/or vendors, patent applications, patent
prosecution, inventions, ideas, procedures, formulae or data, The term
Confidential Information shall not be deemed to include information which (a)
is now, or hereafter becomes, through no act or failure of the Receiving
Party, in the public domain; (b) is known by the Receiving Party at the time
of receipt of such information; (c) is hereafter furnished to the Receiving
Party by a. third party, who is not subject to any restriction on disclosure
at the time of disclosure to the Receiving Party; or (d) has been developed
by the Receiving Party completely independent of the delivery of Confidential
Information hereunder.

   C. "Field" shall mean clinical use as a catheter for insertion into the
vascular system of a patient to direct fluid flow, sampling of fluids and
oxygenation monitoring.

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   D. "Licensable Know How" shall mean any and all information, including but
not limited to, confidential, proprietary and trade secret information owned,
controlled, originated, conceived, reduced to practice, developed or
otherwise in the possession of CCF as of the Effective Date necessary to
practice Licensable Patents, including without limitation, all methods,
processes, processing techniques, products, compositions, formulas, test
data, and designs.

   E. "Licensable Patents" shall refer to and mean US Patent Application #
60/797,433 entitled "Intra-jugular Catheter" and any U.S. or foreign patent
applications, reissues, extensions, renewals, reexaminations, certificates of
invention, substitutions, divisions, continuations, and continuations-in-part
thereof having the Principal Investigator as an inventor and having the same
priority date as the parent applications.

   G. "Licensable Technology" shall mean Licensable Patents and Licensable
Know How,

   H. "Principal Investigator" shall mean Dr. Rafi Avitsian while an employee
of CCF.

2.   OPTION GRANT
     ------------

   2.1 Option Period For a period of twelve (12) months immediately following
       -------------
the Effective Date of this Agreement ("Option Period"), CCF agrees that it will
not enter into any exclusive agreement with any third party with respect to the
transfer of rights in the Field to the Licensable Technology, whether by
license or otherwise,

   2.2 Negotiation for a License Agreement During the Option Period, Parties
       -----------------------------------
shall negotiate a License Agreement having terms and conditions generally
agreeable to CCF not limited to but including an upfront license fee,
milestones and a royalty. Binding obligations for such a license agreement
will only be created by the execution and delivery of a definitive written
agreement between the Parties and shall be dependant on OPTIONEE providing a
product development plan for the Licensable Technology that is acceptable to
CCF at its sole discretion.  If an agreement has not been reached within said
Option Period, the parties shall have no further obligations under this
Agreement and CCF shall be free to license any and all rights under the
Licensable Technology to any third party without any further obligation to
OPTIONEE.

   The license agreement shall include at least the following provisions.
license fees, royalty payments, required terms for granting sublicenses (if
any), a commitment by OPTIONEE and any sublicensee to exert their best
efforts to introduce the licensed material into public use as rapidly as
practicable, the right of CCF to terminate the license should OPTIONEE not
meet specified due-diligence milestones, and indemnity and insurance
provisions satisfactory to CCF. Provided other terms of a license agreement
negotiated by the Parties upon OPTIONEE's exercise of the Option generally
conform with CCF's standard practices and license terms, such license
agreement shall include financial terms to be negotiated within the following
ranges: (i) OPTIONEE shall pay CCF a License Fee in amounts that total not
less than seventy-five thousand dollars ($75,000) nor more than one hundred
thousand dollars ($100,000); and (ii) OPTIONEE shall remit royalties to CCF
on a quarterly basis based on a percentage of net sales of the products
subject to the license agreement of not less than 7.5% nor more than 15%.

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3.   PAYMENTS
     --------

   3.1 Option Fee. Within fifteen (l5) days of the Effective Date of this
Agreement, OPTIONEE shall pay CCF a nonrefundable fee equal to thirty-six
thousand dollars ($36,000).

   3.2 Patent Prosecution and Maintenance.  CCF shall notify OPTIONEE of any
and all costs associated with prosecuting and maintaining the Licensable
Patents throughout the Option Period, and OPTIONEE shall reimburse CCF up to
$2,500 any and all reasonable costs associated therewith, reimbursement
payments shall be due within 15 days of receiving invoices from CCF. If
OPTIONEE fails to make such reimbursement payments, it shall automatically
relinquish all rights under this Agreement.

4.   INTELLECTUAL PROPERTY RIGHTS
     ----------------------------

   Title to all Licensable Technology (including but not limited to
prototypes developed by the OPTIONEE) shall remain in CCF. Any materials
developed by OPTIONEE shall be returned to CCF at the end of the Option
Period.

5.   TERMINATION
     -----------

   5.1 Term  Unless otherwise terminated by operation of law or by acts of the
       ----
parties in accordance with the terms of this Agreement, this Agreement shall
automatically terminate upon conclusion of the Option Period.

   5.2 Termination for Breach
       ----------------------

       (a) This Agreement shall be terminable upon the material breach of
either party. In the event of a material breach by a party ("Defaulting
Party") the other party ("Non-Defaulting Party") shall give the Defaulting
Party written notice of the default and its termination of this Agreement,
subject to a thirty (30) day right to cure. If the Defaulting Party (i) fails
to cure the breach within thirty (30) days after receipt of notice from the
Non-Defaulting Party, or (ii) fails to provide a written explanation
satisfactory to the Non-Defaulting Party for the cure or other resolution of
the default, then this Agreement shall be terminated as of the date of the
notice. All termination rights shall be in addition to and not in
substitution for any other remedies that may be available to the Non-
Defaulting Party.

       (b) Termination pursuant to this section shall not relieve the
Defaulting Party from liability and damages to the Non-Defaulting Party for
default. Waiver by either party of a single default or a succession of
defaults shall not deprive such party of any right to terminate this
Agreement arising by reason of a subsequent default

   5.3 Termination Without Cause. Either party may terminate this Agreement
       --------------------------
at any time prior to the expiration of the Option Period, by providing thirty
(30) days written notice of same to the non-terminating party..

   5.4 Effects of Termination. Any termination of this Agreement for any
       -----------------------
reason, does not relieve either party of any obligation or liability accrued
prior to the termination or rescind anything done by either party and the
termination does not affect in any manner any rights of either party arising
under

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this Agreement prior to the termination. Upon expiration of this Agreement,
the obligations set forth in Sections 8, 9.2, 9.3, 9.7 and 9.13, 9.14 shall
survive.

6.   ASSIGNABILITY
     -------------

This Agreement shall be binding upon and shall inure to the benefit of the
Parties and their respective assigns and successors in interest. The
Agreement may not be assigned by either Party without the consent in writing
of the other Party.

7.   ADDRESSES
     ---------

   All notices, reports or other required, material communications pursuant
to this Agreement shall be sent to such Party via (i) United States Postal
Service certified mail, return receipt requested, postage prepaid, (ii)
overnight courier, charges prepaid or (iii) facsimile transmission, addressed
to it at its address set forth below or as it shall designate by written
notice given to the other Parties. Notice shall be sufficiently made or given
(a) on the date of mailing, (b) when deposited with the overnight courier, or
(c) when facsimile printer reflects receipt.

   CCF:

   CCF Innovations - Mailstop D20
   The Cleveland Clinic Foundation
   500 Euclid Avenue
   Cleveland, OH 44195
   Attn: Neil Veloso
   Facsimile No. 216-445-6514

   With copy to:

   Office of General Counsel - Mailstop
   Attn: Karen Shanahan, Esq.
   Facsimile No. 216-297-7005

   OPTIONEE:

   IVPSA
   500 N. Rainbow, Suite 300,
   Las Vegas NV _89107

8.   DISPUTE RESOLUTION
     ------------------

   8.1 Except in the event that a party shall reasonably determine that it
must seek a preliminary injunction, temporary restraining order or other
provisional relief; upon the occurrence of a dispute between parties,
including, without limitation, any breach of this Agreement or any obligation
relating thereto, the matter shall be referred first to authorized officers
of CCF and OPTIONEE, or their designees. The authorized officers or their
designees as the CCF may be, shall negotiate in good faith to resolve such
dispute in a mutually satisfactory manner for thirty (30) days. If such
efforts do not result in mutually satisfactory resolution of the dispute, the
matter shall be handled by arbitration in accordance with Section 8.2.

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   8.2 Any arbitration shall be conducted in Cleveland, Ohio in accordance
with the Commercial Dispute Resolution Procedures of the American Arbitration
Association and in the English language. The arbitrators shall include one
nominee of CCF and one nominee of OPTIONEE, and a third person selected by
said nominees. The parties agree that any arbitration panel shall include
members knowledgeable as to evaluation of the biotechnology industry.
Judgment upon the award rendered may be entered in the highest court or
forum, state or federal, having jurisdiction; provided however that the
provisions of this Section 8 (Dispute Resolution) shall not apply to any
dispute or controversy as to which any treaty or law prohibits such
arbitration,

   8.3 Notwithstanding the foregoing, nothing in this Section 8 shall be
construed to waive any rights or timely performance of any obligations
existing under this Agreement.

9.   ADDITIONAL PROVISIONS
     ---------------------

   9.1 Use of Parties' Names. Each Party agrees that it shall not use in any
       ----------------------
way the name or logo of the other Party without the prior consent of the
Party whose name is to be used.

   9.2 Independent Contractors. The Parties hereby acknowledge and agree that
       ------------------------
each is an independent contractor and that no Party shall be considered to be
the agent, representative, master or servant of any other Party for any
purpose whatsoever, and that no Party has any authority to enter into a
contract, to assume any obligation or to give warranties or representations
on behalf of any other Party. Nothing in this relationship shall he construed
to create a relationship of joint venture, partnership, fiduciary or other
similar relationship between or among the Parties,

   9.3 Indemnification OPTIONEE shall indemnify, hold harmless and defend CCF
       ---------------
and its respective trustees, officers, employees and agents (the
"Indemnitees") against any and all claims and suits of third parties ("Third
Party Claims"), and any damages, costs, fees, and expenses incurred by the
Indemnitees in connection with such Third Party Claims, resulting from or
arising out of this Option Agreement (each a "Loss"). OPTIONEE shall have no
obligation to indemnify any Indemnitees to the extent that a Loss arises out
of the gross negligence or intentional misconduct of an Indemnitee or the
breach of this Agreement by an Indemnitee.

   9.4 Representations and Warranties. Each Party represents and warrants
       -------------------------------
that it has the right, power and authority 1.0 enter into this Agreement. CCF
represents and warrants to OPTIONEE that it owns the Licensable Technology.
CCF represents that to its knowledge, as of the Effective Date of this
Agreement, there are no third party infringement claims against the Licensed
Patents.

   9.5 Disclaimer of Further Warranties. Other than as specifically provided
       ---------------------------------
in section 9.4, CCF makes no warranties or representations, express or
implied, with respect to the Licensable Technology including, but not limited
to, warranties of fitness or merchantability.

9.6 Non-Waiver. The Parties covenant and agree that if a Party fails or
    -----------
neglects for any reason to take advantage of any of the terms providing for
the termination of this Agreement or if a Party, having the right to declare
this Agreement terminated, shall fail to do so, any such failure or neglect
by such Party shall not be a waiver or be deemed or be construed to be a
waiver of any cause for the termination of this Agreement subsequently
arising, or as a waiver of any of the terms, covenants or conditions of this
Agreement or of the performance thereof None of the terms, covenants and
conditions of this Agreement may be waived by a Party except by its written
consent.

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   9.7 Confidentiality. CCF and OPTIONEE agree for the Term and three (3)
       ----------------
years thereafter to hold all Confidential Information in confidence, and to
use the same only in accordance with this Agreement, unless required to do so
by federal or stale securities laws. OPTIONEE shall have the right to share
Confidential Information with affiliates, partners, and consultants, provided
such third party enters into a confidentiality agreement with OPTIONEE having
terms at least as protective as set forth in this Agreement. Except as
required by applicable law, CCF and the OPTIONEE will hold, and will cause
its respective directors, officers, employees, accountants, counsel,
financial advisors and other representatives and affiliates to hold, any
nonpublic information in confidence.

   9.8 Publications and Copyrights. CCF will be free to publish the results
       ----------------------------
of its research during the Term of this Agreement.

   9.9 Reformation. The Parties hereby agree that no Party intends to violate
       ------------
any public policy, statutory or common law, rule, regulation, treaty or
decision of any government agency or executive body thereof of any country or
community or association of countries, and that if any word, sentence,
paragraph or clause or combination thereof of this Agreement is found, by a
court or executive body with judicial powers having jurisdiction over this
Agreement or any of the Parties hereto, in a final, unappealable order to be
in violation of any such provision in any country or community or association
of countries, such words, sentences, paragraphs or clauses or combination
shall be inoperative in such country or community or association of
countries, and the remainder of this Agreement shall remain binding upon the
Parties hereto.

   9.10 Execution in Counterparts. This Agreement may be executed in one or
        --------------------------
more counterparts, each of which shall be deemed to be an original and
executed versions sent by facsimile transmission shall also be deemed to be
originals.

   9.11 Disclaimers. The parties acknowledge and agree that, unless and until
        ------------
the Option is exercised, neither OPTIONEE nor any affiliate of OPTIONEE has
any right or interest in the Licensable Technology.

   9.12 Governing Law This Agreement shall he governed by the laws of the
        -------------
State of Ohio.

   9.13 Press Releases. Both OPTIONEE and CCF will not, without the other
        ---------------
party's prior review and express written consent, issue any press release, or
issue or make any other public comment, or publish or broadcast any
advertisement in any media, or disseminate any sales promotion or
solicitation materials, that in any way refers to the other party, or any
subsidiary or affiliate of the other party, or to the specific terms of this
Agreement unless such item is substantially similar to that which has already
been approved by the other party.

   9.14 Access to Records. If Section 952 of the Omnibus Reconciliation Act
        ------------------
of 1980, which amended Section l861(v)(1) of the Social Security Act, and the
regulations promulgated there under, applies to this Agreement, each party
will make available to the Secretary of Health and Human Services, and to the
Comptroller General of the United States upon written request, such books,
documents and records necessary to verify the nature and extent of the costs
of the services provided hereunder. Access will be granted until the
expiration of four (4) years after the furnishing of services hereunder.
Access will also be granted to any books, documents or records related to
this Agreement between a party and organizations related to that party, but
only an as needed basis.

   9.15 Compliance with Laws. By entering into this Agreement, the parties
        ---------------------
specifically intend to comply with all applicable laws, rules and regulations
as they may be amended from time to time. In the event that any part of this
Agreement is determined to violate federal, state, or local laws, rules, or

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regulations, the parties agree to negotiate in good faith revisions to the
provision or provisions that are in violation. In the event the parties are
unable to agree to new or modified terms as required to bring the entire
Agreement into compliance, either party may terminate this Agreement without
penalty upon thirty (30) days written notice to the other party.

   9.16 Debarment. IVPSA hereby represents and warrants that it has not been
        ----------
debarred, suspended, excluded or otherwise determined to be ineligible to
participate in federal healthcare programs (collectively, "Debarred") and
acknowledges that CCF shall have the right to terminate this Agreement
immediately in the event that IVPSA is Debarred.

   IN WITNESS WHEREOF, the Parties hereto have executed and delivered this
Agreement in multiple originals by their duly authorized officers and
representatives on the respective dates shown below, hut effective as of the
Agreement Date.

IVPSA                                  THE CLEVELAND CLINIC FOUNDATION

By: /s/ T. J. Jesky                    By: /s/ Michael P. O'Boyle
    ---------------                        ----------------------

Name:   T. J. Jesky                      Name: Michael P. O'Boyle
    ---------------                        ----------------------

Title: President/CEO                   Title: Chief Operating Officer
       -------------                          -----------------------

Date: March 20, 2007                   Date: 3-27, 2007
      --------------                         ----------

                                               APPROVED AS TO FORM
                                                  CCF-OFFICE OF
                                                 GENERAL COUNSEL
                                                      BY KDS
                                                         ---
                                                   DATE 3/26/07
                                                        -------
                                                   CMSI#
                                                         ------

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<PAGE>CHYRON CORPORATION

CHYRON CORPORATION

5 Hub Drive

Melville, New York 11747

 

October 26, 2007

Mr. Michael Wellesley-Wesley

145 East 81st St., Apt. 11A

New York, N.Y. 10028

Re:  Change-in-Control Agreement

 

Dear Michael:

The following sets out our agreement to amend (the "Amendment") your Employment Agreement dated October 26, 2007 (the "Agreement") with Chyron Corporation (the "Company") with respect to severance payments to be paid to you if your termination of employment is "related to" a "Change-in-Control" and is either: (i)  without "Cause," or (ii) a "Resignation with Good Reason" (collectively, a "Severance Event") (all as defined below).  This Amendment is an amendment and restatement of the Change-in-Control Agreement dated August 10, 2006 between you and the Company. This Amendment replaces all severance benefits payable to you as a result of a Change-in-Control as previously set forth in the Agreement or in any executive retention program maintained by the Company as of the date hereof. This Amendment shall not affect any other severance benefits set forth in your Agreement.

1. Severance Benefits.

1.1 In the event of a Severance Event, the Company shall pay you severance equal to the following:
(i)    an amount equal to your base salary for a 12 month period based on your base salary rate in effect immediately prior to a Change-in-Control (the "Severance Salary");
(ii) a bonus equal to the greater of (x) the bonus paid to you for the full fiscal year immediately prior to a Change-in-Control and (y) the bonus that you have accrued for the fiscal year in which the Change-in-Control has occurred, with such amount being annualized (the "Severance Bonus"); and (iii) an amount, grossed up for federal, state and local taxes, in lieu of one year of participation in the Company's life, long-term disability, and health insurance plans, as described further below (the "Severance Benefits"). The payments are not subject to mitigation or any right of set-off.  In addition you will be paid for accrued, but unused vacation time up to the Company's maximum permitted accrual of six weeks. Further, all unvested options shall immediately vest and the period to exercise all options held by you shall be the remaining term of each option regardless of any shorter periods provided for by the Stock Option Plan as a result of the termination of your employment.  

 

1.2 Following a Severance Event, the Severance Salary shall be paid in even installments on a bi-weekly basis for a period of 12 months from your date of termination.  The Severance Bonus and Severance Benefits amounts shall be paid in a lump sum within two (2) business days from the date of your termination.

1.3 Recognizing that such amount is subject to income and other taxes, the Severance Benefits payment shall include an amount equal to the amount of federal, state, and local income taxes that you incur as a result of the Severance Benefits payment or any additional tax gross-up payment on such payment. The Severance Benefits payment shall be equal to the sum of the Health Care Payment, the Life Insurance Payment and the Disability Insurance Payment, all as described below, plus the foregoing tax gross-up.

1.4 The Health Care Payment is an amount equal to 12 times the monthly premium amount charged by the Company for COBRA continuation coverage under the health care option in which you are enrolled at the time of your Severance Event. To receive coverage under the Company's health insurance plans, you must elect to receive COBRA coverage and remit the appropriate payment to the Company as per the policy of the Company.

  

1.5 The Company's group term life insurance policy provides you with $500,000 of coverage and, upon termination, offers you the opportunity to convert to Whole Life (subject to acceptance by the insurer). The Life Insurance Payment is an amount equal to 12 times the monthly premium for one of the following, as you elect:  (i) a Whole Life conversion policy through the Company's group life insurer (subject to acceptance by the insurer); (ii) an existing life insurance policy or policies that you may currently have in place; or (iii) a new term life insurance policy. The Company will pay only that pro-rated portion of the premium that represents coverage equal to your coverage under the group life insurance plan as of the date of this Amendment, that is, $500,000.

  

1.6 The Company's long-term disability insurance plan provides you with coverage of 60% of monthly earnings (but not more than $10,000, which amount may be reduced by deductible sources of income and disability earnings) after a 26 weeks elimination (waiting) period, and the insurer offers you a portable policy after termination. The Disability Insurance Payment is an amount equal to 12 times the monthly premium for one of the following, as you elect:  (i) a portable long-term disability policy through the Company's insurer (subject to acceptance by the insurer); (ii) an existing long-term disability insurance policy or policies that you may currently have in place; or (iii) a new personal long-term disability insurance policy obtained through other than the Company's insurance policy. The Company will pay only that pro-rated portion of the premium that represents coverage equal to your coverage under the group long-term disability insurance plan as of the date of this Amendment. 

1.7 The
Severance Salary, Severance Bonus, Severance Benefits and the Gross-Up Payments
(as defined in Section 4) provided hereunder are intended to comply 

 

 

with the exemption from Section 409A of the
Internal Revenue Code of 1986, as amended (the "Code"), for involuntary
separation arrangements set forth in Treasury Regulation Section 1.409A-1(b)(9).
Accordingly, notwithstanding any other provision hereof, (i) no amount shall be
payable to you hereunder in such event unless your termination of employment
constitutes a separation from service within the meaning of Section 409A of the
Code, (ii) if the amount payable to you hereunder in such event shall exceed two
times the lesser of (A) your annual compensation (as defined in Treasury
Regulation Section 1.415(d)(2)) for services provided to the Company as an
employee for the calendar year preceding the calendar year in which such
separation from service occurs, or (B) the maximum amount that may be taken into
account under a qualified plan pursuant to Section 401(a)(17) of the Code for
such year, such amount shall be paid as otherwise specified in Section 1.2 and
Section 4, provided that the amount in excess of the foregoing limitation shall
be subject to the provisions of Section 3 and (iii) no payment may be made to
you hereunder in such event later than December 31 of the second calendar year
following the calendar year in which such separation from service occurs.

1.8 The Company shall indemnify you and hold you harmless, on an after-tax basis, from any taxes, costs, expenses, penalties, fines, interest or other liabilities that result from the application of Section 409A of the Code in connection with payments you receive under this Amendment, as long as you have complied with the terms of this Amendment. Any such payments made under this Section shall be made on a grossed-up basis.

2. Definitions.  The defined terms used herein have the following meanings:

2.1 "Cause" means that you (i)
are convicted of a felony crime; (ii) willfully commit any act or willfully omit to take any action in bad faith and to the material detriment of the Company;
(iii) commit an act of active and deliberate fraud against the Company; or
(iv) materially breach any term of the Agreement or any written policy of the Company which could expose the Company to significant damages (including, but not limited to breach of the Company's anti-discrimination or harassment policies) and fail to correct such breach within ten (10) days after written notice thereof.

2.2 "Change-in-Control" means (i)
the acquisition, directly or indirectly, by any individual, entity or group, or a Person (within the meaning of Section 13 (d) (3) or 14 (d) (2) of the Securities and Exchange Act of 1934, as amended (the "Exchange Act")) of ownership of 30% or more of either (a) the then outstanding shares of common stock of the Company (the "Outstanding Company Common Stock") or (b) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the "Outstanding Company Voting Securities");
(ii) individuals who, as the date hereof, constitute the Board (the "Incumbent Board") cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the date hereof whose election, or nomination 

 

 

for election by the Company's stockholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, as a member of the Incumbent Board, any such individual whose initial assumption of office occurs as a result of either an actual or threatened election contest (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board;
(iii) approval by the stockholders of the Company of a reorganization, merger or consolidation, in each case, unless, following such reorganization, merger or consolidation, (x) more than 50% of, respectively, the then outstanding shares of common stock of the Company resulting from such reorganization, merger or consolidation and the combined voting power of the then outstanding voting securities of such corporation entitled to vote generally in the election of directors is then beneficially owned, directly or indirectly, by all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such reorganization, merger or consolidation in substantially the same proportions as their ownership, immediately prior to such reorganization, merger or consolidation of the Outstanding Company Common Stock and Outstanding Company Voting Securities, as the case may be, and (y) at least a majority of the members of the board of directors of the corporation resulting from such reorganization, merger or consolidation were members of the Incumbent Board at the time of the execution of the initial agreement providing for such reorganization, merger or consolidation;
(iv) approval by the stockholders of the Company of a complete liquidation or dissolution of the Company; or
(v) approval by the stockholders of the Company of the sale or other disposition of all or substantially all of the assets of the Company. 

2.3 "Related to" a "Change-in-Control" means the reason for your termination of employment is the Change-in-Control or a reason connected with the Change-in-Control regardless of whether the decision to terminate your employment and/or the effective date of your termination is prior to or after the effective date of the Change-in-Control. However, if the effective date of the termination of employment is eighteen months (18) or more after the effective date of a Change-in-Control, the termination of employment will be deemed to be unrelated to the Change-in-Control.  

2.4 "Resignation with Good Reason" means you giving notice of your resignation as a result of (i) a reduction in your base salary or the cap on your incentive pay; (ii)  the assignment to you of any duties inconsistent in any respect with your position (including status, offices, titles and reporting requirements), authority, duties or responsibilities which result in a diminution in such position, authority, duties or responsibilities, whether immediately prior to or after the occurrence of a Severance Event; (iii) the taking of any action by the Company which 
would adversely affect your participation in, or materially reduce your benefits
under any plans, including incentive pay plans or programs, offered by the
Company 

 

 

prior to the Severance Event; or (iv) in the event of and
after the occurrence of a Severance Event, the Company's requiring you to be
based at any office or location other than in New York City or Long Island. You
must provide notice to the Company of the existence of any of the conditions
described in clauses (i) through (iv) above within a period of 90 days of the
initial existence of such condition and the Company shall have a period of 30
days following receipt of such notice during which it may remedy such condition.
In the event of your failure to deliver timely notice as set forth herein or in
the event of the Company's timely remedy of any condition described in clause
(i) through (iv) you shall not be entitled to a Resignation with Good Reason. 

3. Delayed Payment Under Section 409A. Notwithstanding anything in Section 1 or Section 4 to the contrary, in the event that you become entitled to payment of cash compensation under Section 1 or Section 4 that is not exempt from the requirements of Section 409A of the Internal Revenue Code of 1986 (the "Code"), as amended, including any amount in excess of the limitation set forth in Section 1.7, (i) if you are considered to be a "key employee" for purposes of Section 409A with respect to such payment, then (A) payment shall not commence until the end of the six (6) month period beginning on your "separation from service date" (within the meaning of Section 409A of the Code) and (B) the aggregate amount of payments that would have been made during such six (6) month period but for the application of this Section 3 will be paid in a lump sum at the end of such period; or (ii) if you are not a "key employee," then payment shall not commence until you have incurred a separation from service within the meaning of Section 409A of the Code.

4. Golden Parachute Excise Tax.

4.1 Limitation or Additional Payment.  In the event that any portion of the payments and benefits provided to you under this Amendment and any other payments and benefits under any other agreement with or plan of the Company (in the aggregate, "Total Payments") would be subject to the excise tax imposed by Section 4999 of the Internal Revenue Code (the "Excise Tax"), then (4.1(a)) or (4.2(b)) below shall apply:

(a) In the event that the Total Payments (without regard to this Section 4) do not exceed 115% of the maximum amount that could be paid to you without becoming subject to the Excise Tax, then notwithstanding anything in this Amendment to the contrary the amount payable to you under Section 1 above shall be reduced such that the value of the aggregate Total Payments that you are entitled to receive shall be one dollar ($1) less than such maximum amount.

(b) In the event that the Total Payments (without regard to
this Section 4) exceed 115% of the maximum amount that could be paid to you
without becoming subject to the Excise Tax, then you shall be entitled to
receive an additional payment (a "Gross-Up Payment") in an amount that will
place you in substantially the same after-tax economic position that you 

 

 

would have enjoyed if the Excise Tax had not applied to the
Total Payments.

4.2 Determination by Accounting Firm.  Subject to the provisions of Section 4.3 below, all determinations required to be made under this Section 4, including whether and when a Gross-Up Payment is required and the amount of such Gross-Up Payment and the assumptions to be utilized in arriving at such determination, shall be made by the Company's independent auditors or such other certified public accounting firm reasonably acceptable to you as may be designated by the Company (the "Accounting Firm") which shall provide detailed supporting calculations both to the Company and you.  Any Gross-Up Payment, as determined pursuant to this Section 4, shall be paid by the Company to you as soon as practicable following the date on which you provide the Company evidence of payment of the taxes covered by the Gross-Up Payment, but no later than the end of your taxable year following the end of your taxable year in which you remit such taxes Any determination by the Accounting Firm shall be binding upon the Company and you.  As a result of the uncertainty in the application of Section 4999 of the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible that Gross-Up Payments which will not have been made by the Company should have been made ("Underpayment"), consistent with the calculations required to be made hereunder. In the event that the Company exhausts its remedies pursuant to Section 4.3 and you thereafter are required to make a payment of any Excise Tax, the Accounting Firm shall determine the amount of the Underpayment that has occurred and any such Underpayment shall be promptly paid by the Company to or for your benefit.

4.3 Company's Right to Contest Excise Tax.  You agree to notify the Company in writing of any claim by the Internal Revenue Service that, if successful, would require the payment by the Company of the Gross-Up Payment. Such notification shall be given as soon as practicable but no later than ten (10) business days after you are informed in writing of such claim and shall apprise the Company of the nature of such claim and the date on which such claim is requested to be paid. You shall not pay such claim prior to the expiration of the thirty (30) day period following the date on which you give such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Company notifies you in writing prior to the expiration of such period that it desires to contest such claim, you agree to:

(a) give the Company any information reasonably requested by the Company relating to such claim,

(b) take such action in connection with contesting such claim as the Company shall reasonably request in writing from time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney reasonably selected by the Company;

 

 

(c) cooperate with the Company in good faith in order to effectively contest such claim, and

(d) permit the Company to participate in any proceedings relating to such claim.

Without limitation on the foregoing provisions of this Section 4.3, the Company shall control all proceedings taken in connection with such contest and, at its sole option, may pursue or forego any and all administrative appeals, proceedings, hearing and conferences with the taxing authority in respect of such claim. The Company may, at its sole option, either direct you to pay the tax claimed and sue for a refund or contest the claim in any permissible manner, and you agree to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company shall determine; provided, however, that if the Company directs you to pay such claim and sue for a refund, the Company shall reimburse the amount of such payment to you, on an after-tax and interest-free basis (the "Reimbursement"). The Company's control of the contest related to the claim shall be limited to the issues related to the Gross-Up Payment and you shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service or other taxing authority. If the Company does not timely notify you in writing of its desire to contest the claim, the Company shall pay you an additional Gross-Up Payment in respect of the excess parachute payments that are the subject of the claim, and you agree to pay the amount of the Excise Tax that is the subject of the claim to the applicable taxing authority in accordance with applicable law.

4.4 Repayment to the Company.  If, after your receipt of a Reimbursement pursuant to Section 4.3, you become entitled to receive any refund with respect to the claim to which the Reimbursement relates, you shall promptly pay to the Company the amount of such refund (together with any interest paid or credited thereon after taxes applicable thereto). If, after your receipt of a Reimbursement pursuant to Section 4.3, a determination is made that you are not entitled to any refund with respect to such claim and the Company does not notify you in writing of its intent to contest such denial of refund prior to the expiration of thirty (30) days after such determination, then the Reimbursement shall be forgiven and shall not be required to be repaid and the amount of such reimbursement shall offset the amount of the additional Gross-Up Payment then required to be paid to you.

4.5 Additional Amendment.  The Agreement is further amended so that the other severance benefits provided thereunder are intended to comply with the exemption from Section 409A of the Code, for involuntary separation arrangements set forth in Proposed Treasury Regulation Section 1.409A-1(b)(9). Accordingly, notwithstanding any other provision thereof, (i) no amount shall be payable to you hereunder unless your termination of employment constitutes a separation from service within the meaning of Section 409A of the Code, (ii) the amount payable to you/thereunder shall not exceed two times the lesser of (A) your annual compensation (as defined in Treasury Regulation Section  

 

 

1.415(d)(2)) for services provided to the Company as an employee for the calendar year preceding the calendar year in which such separation from service occurs, or (B) the maximum amount that may be taken into account under a qualified plan pursuant to Section 401(a)(17) of the Code for such year, and (iii) no payment may be made to you thereunder later than December 31 of the second calendar year following the calendar year in which such separation from service occurs.

4.6 Further Assurances.  The Company shall indemnify you and hold you harmless, on an after-tax basis, from any costs, expenses, penalties, fines, interest or other liabilities ("Losses") incurred by you with respect to the exercise by the Company of any of its rights under Section 4, including, without limitation, any Losses related to the Company's decision to contest a claim or any imputed income to you resulting from any Advance or action taken on your behalf by the Company pursuant to this Section 4. The Company shall pay all legal fees and expenses incurred under this Section 4 and shall promptly reimburse you for the reasonable expenses you incurred in connection with any actions taken by the Company or required to be taken by you under this Section 4.  The Company also shall pay all of the fees and expenses of the Accounting Firm.

5. Term.  This Amendment shall continue in effect until your employment with the Company is terminated.

6. Miscellaneous. 

6.1 All other terms of the Agreement shall remain in full force and effect.

6.2 This Amendment sets forth the entire agreement between the parties hereto as to the subject matter herein, and cannot be amended, modified or terminated except by an agreement in writing executed by the parties hereto. Notwithstanding the foregoing, the Company may amend this Amendment and/or the Agreement, without your consent, in such manner as the Company may determine, in its sole discretion, to be necessary for such Agreement to comply with, or be exempt from, Section 409A. Any such amendment shall be delivered to you promptly upon adoption.

6.3 In the event that any provision of this Amendment is invalid, illegal or unenforceable, the remainder of hereof shall be construed without taking into effect such invalid, illegal or unenforceable provision.  

6.4 This Amendment shall be governed by the laws of the State of New York without regard to the principles of the conflicts of laws of such state. 

6.5 This Amendment may be executed in several counterparts or by separate instruments and by facsimile transmission and all of such counterparts and instruments shall constitute one agreement, binding on all of the parties hereto.

 

 

6.6 In the event you bring any action or proceeding to enforce your rights under this Amendment, the Company shall be required to reimburse you the reasonable fees and costs of your counsel in the event you prevail in such action or proceeding.

6.7 This Amendment shall be assumed by all successors in interest to the Company.

Please acknowledge your acceptance of this Amendment by signing and dating below.

	
Very truly yours,

	
Chyron Corporation

	 	 
	
By:
	
/s/ Jerry Kieliszak

	
Name:
	
Jerry Kieliszak

	
Title:
	
CFO and Senior Vice President

	 	 
	 	 
	
AGREED TO AND ACCEPTED

	
this 26th day of October 2007

	 	 
	
/s/ Michael Wellesley-Wesley

	
Michael Wellesley-Wesley

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