Document:

Plan

SOUTHWEST GEORGIA FINANCIAL CORPORATION

KEY INDIVIDUAL STOCK OPTION PLAN

 

 

March 19, 1997

 

Introduction

               The purpose of the Plan is to promote the long-term success of Southwest Georgia Financial Corporation (the "Company") and its subsidiaries by providing
financial incentives to key individuals who are in positions to make significant contributions toward such success. The Plan is designed to attract individuals of outstanding ability to associate with the Company and its subsidiaries, to encourage key
individuals to acquire a proprietary interest in the Company and to continue their employment with the Company or its subsidiaries, and to render superior performance during such employment.

              This Plan was adopted by the Board of Directors of the Company and will become effective on March 19, 1997 provided that it is approved by the Shareholders of the
Company within twelve months of the adoption of the Plan by the Board of Directors. Any options granted under this Plan shall be subject solely to the provisions of this Plan.

	
Table of Contents

	
 
	
 

	
ARTICLE I.
	
DEFINITIONS; MAXIMUM SHARES

	
 
	
1.1 Definitions

	
 
	
1.2 Maximum Shares Limitation

	
 
	
1.3 Administration of the Plan

	
 
	
1.4 Eligibility for Awards

	
 
	
1.5 Effective Date and Duration of Plan

	
ARTICLE II.
	
STOCK OPTIONS

	
 
	
2.1 Grant of Options

	
 
	
2.2 Option Requirements

	
 
	
2.3 Incentive Stock Option Requirements

	
ARTICLE III.
	
GENERAL PROVISIONS

	
 
	
3.1 Adjustment Provisions

	
 
	
3.2 Additional Conditions

	
 
	
3.3 No Rights as Shareholder or to Employment

	
 
	
3.4 Legal or Other Restrictions

	
 
	
3.5 Rights Unaffected

	
 
	
3.6 Withholding Taxes

	
 
	
3.7 Choice of Law

	
 
	
3.8 Amendment, Suspension and Termination of Plan

 

ARTICLE I

DEFINITIONS: MAXIMUM SHARES

LIMITATION; ADMINISTRATION; ELIGIBILITY

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
1.1
	
Definitions
	
 
	
 

	

	
Unless the context clearly indicates otherwise, for purposes of this Plan the following terms have the respective meanings set forth below:

	
 
	
 
	
 
	
 

	
 
	
(a)
	
"Board of Directors" means the Board of Directors of Southwest Georgia Financial Corporation

	
 
	
 
	
 

	
 
	
(b)
	
"Change in Control" means:

	
 
	
 
	
 

	
 
	
 
	
(1)
	
the acquisition, directly or indirectly, by any "person" (excluding any "person" who on the date of adoption of the Plan owns or controls 10% or more of the voting power of the Company's Common Stock), as such term is used in Sections 13(d) and 14(d)
of the Securities Exchange Act of 1934, as amended, within any twelve month period, of securities of the Company representing an aggregate of 25% or more of the combined voting power of the Company's then outstanding securities provided, that for purposes
of this definition, "acquisition" shall not include shares which are received by a person through gift, inheritance, under a will or otherwise through the laws of descent and distribution;

	
 
	
 
	
 
	
 

	
 
	
 
	
(2)
	
during any period of two consecutive years, individuals who at the beginning of such period constitute the Board of Directors, cease for any reason to constitute at least a majority thereof, unless the election of each new director was approved in
advance by a vote of at least a majority of the directors then still in office who were directors at the beginning of the period;

	
 
	
 
	
 
	
 

	
 
	
 
	
(3)
	
the sale of all or substantially all of the assets of the Company; or

	
 
	
 
	
 
	
 

	
 
	
 
	
(4)
	
the liquidation of the Company.

	
 
	
 
	
The Committee may expand or restrict the events which constitute a "Change in Control" for purposes of all or a portion of the Options covered by a particular option Agreement.

	
 
	
 
	
 

	
 
	
(c)
	
"Code" means the Internal Revenue Code of 1986, as amended.

	
 
	
 
	
 

	
 
	
(d)
	
"Committee" means the personnel committee of the Board of Directors, or such other committee as designated by the Board of Directors.

	
 
	
 
	
 

	
 
	
(e)
	
"Common Stock" means the common stock of Southwest Georgia Financial Corporation, par value $1.00 per share, or such other class of shares or other securities to which the provisions of the Plan may be applicable by reason of the operation of Section
3.1 hereof.

	
 
	
(f)
	
"Company" means Southwest Georgia Financial Corporation, a Georgia corporation, and any successor thereto.

	
 
	
 
	
 

	
 
	
(g)
	
"Employer" means the Company, and also means any corporation of which a majority of the voting capital stock is owned directly or indirectly by the Company or any of its subsidiaries which is an Employer hereunder, and any other corporation designated
by the Committee as being an Employer hereunder (but only during the period of such ownership or designation).

	
 
	
 
	
 

	
 
	
(h)
	
"Fair Market Value" of a share of Common Stock on any particular date means (1) if the Common Stock is not then traded on a national stock exchange or the NASDAQ National Market, the mean between the closing composite inter-dealer "bid" and "ask"
prices for Common Stock, as quoted by NASDAQ (i) on such date, or (ii) if no "bid" and "ask" prices are quoted on such date, then on the next preceding date on which such prices were quoted; or (2) if the Common Stock is then traded on a national stock
exchange or the Nasdaq National Market, the closing price on such date of a share of the Common Stock as traded on the largest stock exchange on which it is then traded; or (3) if the Common Stock is not then traded under either (1) or (2) above, the fair
market value as determined in good faith by the Committee giving consideration to all relevant factors.

	
 
	
 
	
 

	
 
	
(i)
	
"Grant Date," as used with respect to a particular option, means the date as of which such Option is granted by the Committee pursuant to the Plan.

	
 
	
 
	
 

	
 
	
(j)
	
"Grantee" means the key employee or Director of the Employer to whom an Option is granted by the Committee pursuant to the Plan.

	
 
	
(k)
	
"Incentive Stock Option" means an Option that qualifies as an incentive stock option as described in Section 422 of the Code.

	
 
	
 
	
 

	
 
	
(l)
	
"Nonqualified Stock Option" means any Option granted under this Plan, other than an Incentive Stock Option.

	
 
	
 
	
 

	
 
	
(m)
	
"Option" means an Option granted by the Committee pursuant to Article II to purchase shares of Common Stock, which shall be designated at the time of grant as either an Incentive Stock Option or a Nonqualified Stock Option, as provided in Section 2.1
hereof.

	
 
	
 
	
 

	
 
	
(n)
	
"Option Agreement" means the agreement between the Company and a Grantee under which the Grantee is granted an Option pursuant to the Plan.

	
 
	
 
	
 

	
 
	
(o)
	
"Option Period" means, with respect to any Option granted hereunder, the period beginning on the Grant Date and ending at such time not later than the tenth annual anniversary of the Grant Date, as the Committee, in its sole discretion, shall
determine and during which the Option may be exercised.

	
 
	
 
	
 

	
 
	
(p)
	
"Plan" means the Southwest Georgia Financial Corporation Key Individual Stock Option Plan, as set forth herein and as amended from time to time.

	
 
	
 
	
 

	
 
	
(q)
	
"Retirement," as applied to a Grantee, means the Grantee's termination of employment at a time when he qualifies for early or normal retirement under the Company's Pension Retirement Plan, or the successor or replacement of such Plan if it is then no
longer in effect, or under any other retirement plan maintained or adopted by the Company which is determined by the Committee to be the functional equivalent of such Plan or, in the case of a director, a Grantee's retirement from the Board..

	
 
	
 
	
 

	
 
	
(r)
	
"Total and Permanent Disability," as applied to a Grantee, means that the Grantee (1) has established to the satisfaction of the Committee that the Grantee is unable to engage in any substantial gainful activity by reason of any medically determinable
physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months and (2) has satisfied any requirement imposed by the Committee in regard to evidence
of such Total and Permanent Disability.

	
 
	
 
	
 

	
1.2
	
Maximum Shares Limitation

	
 
	
 
	
 
	
 

	
 
	
(a)
	
The maximum number of shares of Common Stock with respect to which Options may be granted under this Plan shall not exceed 150,000 shares of Common Stock, subject to possible adjustments in accordance with Section 3.1.

	
 
	
 
	
 

	
 
	
(b)
	
Any shares of Common Stock to be delivered by the Company upon the exercise of options shall, at the discretion of the Board of Directors, be issued from the Company's authorized but unissued shares of Common Stock or be transferred from any available
treasury stock.

	
 
	
 
	
 

	
 
	
(c)
	
In the event that any Option expires or otherwise terminates prior to being fully exercised, the Committee may grant new Options hereunder to any eligible Grantee for the shares with respect to which the expired or terminated Option was not exercised.

	
 
	
 
	
 

	
 
	
1.3
	
Administration of the Plan

	
 
	
 
	
 
	
 

	
 
	
(a)
	
The Plan shall be administered by the Committee which shall have the discretionary authority:

	
 
	
 
	
 

	
 
	
(1)
	
To determine those key individuals to whom, and the times at which, Options shall be granted and the number of shares of Common Stock to be subject to such option, taking into consideration the nature of the services rendered (or to be rendered) by
the particular individual, the individual's potential contribution to the long-term success of the Employer, and such other factors as the Committee in its discretion shall deem relevant;

	
 
	
 
	
 

	
 
	
(2)
	
To interpret and construe the provisions of the Plan and to establish rules and regulations relating to it;

	
 
	
 
	
 

	
 
	
(3)
	
To prescribe the terms and conditions of the Option Agreements for the grant of Options (which need not be identical) in accordance and consistent with the requirements of the Plan; and

	
 
	
 
	
 

	
 
	
(4)
	
To make all other determinations necessary or advisable to administer the Plan in a proper and effective manner.

	
 
	
 
	
 

	
 
	
(b)
	
All decisions and determinations of the Committee in the administration of the Plan and on questions or other matters concerning the Plan or any Option shall be final, conclusive and binding on all persons, including, without limitation, the Company,
the shareholders and directors of the Company and any persons having any interest in any options which may be granted under the Plan. The Committee shall be entitled to rely in reaching its decisions on the advice of counsel (who may be counsel to the
Company).

	
 
	
 
	
 

	
1.4
	
Eligibility for Awards

	
 
	
 
	
 
	
 

	
 
	
The Committee shall in accordance with Articles II and III designate from time to time the key individuals and directors of the Employer who are to be granted Options.

	
 
	
 
	
 
	
 

	
1.5
	
Effective Date and Duration of Plan

	
 
	
 
	
 
	
 

	
 
	
The Plan shall become effective on March 19, 1997; provided, that any grant of Options under the Plan prior to approval of the Plan by the shareholders of the Company is subject to such shareholder approval within twelve months of adoption of the Plan
by the Board of Directors. Unless previously terminated by the Board of Directors, the Plan (but not any then outstanding Options which have not yet expired or otherwise terminated) shall terminate on the tenth (10th) annual anniversary of its adoption by
the Board of Directors.

	
 
	
 

	
 
	
 

	
ARTICLE II

	
STOCK OPTIONS

	
2.1
	
Grant of Options

	
 
	
 
	
 
	
 

	
 
	
The Committee may from time to time, subject to the provisions of the Plan, grant Options to key individuals and directors of the Employer under appropriate Option Agreements to purchase shares of Common Stock up to the maximum number of shares of
Common Stock set forth in Section 1.2(a). The Committee may designate any Option (or portion thereof) which satisfies the requirements of Section 2.3 hereof as an Incentive Stock Option. Any portion of an Option that is not designated as an Incentive
Stock Option (or that otherwise fails to be treated as an Incentive Stock Option) shall be a Nonqualified Stock Option. A Nonqualified Stock Option must satisfy the requirements of Section 2.2 hereof, but shall not be subject to the requirements of
Section 2.3.

	
 
	
 

	
2.2
	
Option Requirements

	
 
	
 
	
 
	
 

	
 
	
(a)
	
An Option shall be evidenced by an Option Agreement specifying the number of shares of Common Stock that may be purchased by its exercise and containing such other terms and conditions consistent with the Plan as the Committee shall determine to be
applicable to that particular option.

	
 
	
 
	
 

	
 
	
(b)
	
No Option shall be granted under the Plan on or after the tenth (10th) annual anniversary of the date upon which the Plan became effective.

	
 
	
 
	
 

	
 
	
(c)
	
No Option shall be exercisable during the first six (6) months commencing on the Grant Date, except (A) in the event of a Change in Control (as defined in Section 1.1(b)), or (B) in the event the Committee in its sole discretion, otherwise determines
and specifies in the applicable Option Agreement.

	
 
	
 
	
 

	
 
	
(d)
	
An Option shall expire by its terms at the expiration of the Option Period and shall not be exercisable thereafter. The Committee may provide in the Option Agreement for the expiration or termination of the Option prior to the expiration of the Option
Period, upon the occurrence of any event specified by the Committee.

	
 
	
 
	
 

	
 
	
(e)
	
The option price per share of Common Stock for an Incentive Stock Option shall be not less than the Fair Market Value of a share of Common Stock on the Grant Date. A Nonqualified Stock Option may, in the discretion of the Committee, be granted at a
price less than the Fair Market Value of a share of Common Stock on the Grant Date.

	
 
	
 
	
 

	
 
	
(f)
	
An Option shall not be transferable other than by will or the laws of descent and distribution. During the lifetime of the Grantee, an Option shall be exercisable only by the Grantee, or if the Grantee is disabled, by his duly appointed guardian or
legal representative. Upon his death, but only to the extent that such Option is otherwise exercisable hereunder, an Option may be exercised by the Grantee's legal representative or by a person who receives the right to exercise such Option under the
Grantee's will or by the applicable laws of descent and distribution.

	
 
	
(g)
	
Notwithstanding the Option Period applicable to an option granted hereunder and except as otherwise provided in the Option Agreement, such Option, to the extent that it has not previously been exercised, shall terminate upon the earliest to occur of:
(1) the expiration of the applicable Option Period as set forth in the Option Agreement granting such Option, (2) the expiration of three months after the Grantee's Retirement, (3) the expiration of one year after the Grantee ceases to be an employee or
director of the Employer due to Total and Permanent Disability, (4) the expiration of two years after the Grantee ceases to be an employee or director of the Employer due to the death of the Grantee or such later time as may be approved by the Committee,
or (5) the date that a Grantee terminates employment or a directorship with the Employer for any reason other than Retirement, Total and Permanent Disability, or death.

	
 
	
 
	
 

	
 
	
(h)
	
A person electing to exercise an Option shall give written notice of such election to the Company, in such form as the Committee may require, accompanied by payment in the manner determined by the Committee, of the full purchase price of the shares of
Common Stock for which the election is made. Payment of the purchase price shall be made in cash or in such other form as the Committee may approve, including shares of Common Stock valued at their Fair Market Value on the date of exercise of the Option.

	
 
	
 
	
 

	
2.3
	
Incentive Stock Option Requirements

	
 
	
 
	
 
	
 

	
 
	
(a)
	
An Option designated by the Committee as an Incentive Stock Option is intended to qualify as an "incentive stock option" within the meaning of Section 422(b) of the Code, and shall satisfy, in addition to the conditions of Section 2.2 above, the
conditions set forth in this Section 2.3.

	
 
	
 
	
 

	
 
	
(b)
	
An Incentive Stock Option shall not be granted to an individual who, on the Grant Date, owns stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company, unless the Committee provides in the
Option Agreement with any such individual that the option price per share of Common Stock will not be less than 110% of the Fair Market Value of a share of Common Stock on the Grant Date and that the Option Period will not extend beyond five years from
the Grant Date.

	
 
	
 
	
 

	
 
	
(c)
	
The aggregate Fair Market Value (determined on the Grant Date) of the shares of Common Stock with respect to which such Incentive Stock Options are exercisable for the first time by a Grantee during any calendar year (under all such plans maintained
by the Company) shall not exceed $100,000.

	
 
	
 
	
 

	
 
	
 
	
 

	
ARTICLE III

	
GENERAL PROVISIONS

	
 

	
3.1
	
Adjustment Provisions

	
 
	
 
	
 
	
 

	
 
	
(a)
	
In the event of:

	
 
	
 
	
 

	
 
	
 
	
(1)
	
any dividend payable in shares of Common Stock,

	
 
	
 
	
 
	
 

	
 
	
 
	
(2)
	
any recapitalization, reclassification, split-up or consolidation of, or other change in, the Common Stock, or

	
 
	
 
	
 
	
 

	
 
	
 
	
(3)
	
an exchange of the outstanding shares of Common Stock, in connection with a merger, consolidation or other reorganization of or involving the Company or a sale by the Company of all or a portion of its assets, for a different number or class of shares
of stock or other securities of the Company or for shares of the stock or other securities of any other corporation,

	
 
	
 
	
 
	
 

	
 
	
 
	
 then the Committee shall, in such manner as it shall determine in its sole discretion, appropriately adjust the number and class of shares or other securities which shall be subject to Options and/or the purchase price per share which must be
paid thereafter upon exercise of any Option. Any such adjustments made by the Committee shall be final, conclusive and binding upon all persons, including, without limitation, the Company, the shareholders and directors of the Company and any persons
having any interest in any Options which may be granted under the Plan.

	
 
	
 
	
 

	
 
	
(b)
	
Except as provided in paragraph (a) immediately above, issuance by the Company of shares of stock of any class or securities convertible into shares of stock of any class shall not affect the Options.

	
 
	
 
	
 

	
3.2
	
Additional Conditions

	
 
	
 
	
 
	
 

	
 
	
Any shares of Common Stock issued or transferred under any provision of the Plan may be issued or transferred subject to such conditions, in addition to those specifically provided in the Plan, as the Committee or the Company may impose.

	
 
	
 

	
3.3
	
No Rights as Shareholder or to Employment

	
 
	
 
	
 
	
 

	
 
	
No Grantee or any other person authorized to purchase Common Stock upon exercise of an Option shall have any interest in or shareholder rights with respect to any shares of Common Stock which are subject to any Option until such shares have been
issued and delivered to the Grantee or any such person pursuant to the exercise of such Option. Furthermore, the Plan shall not confer upon any Grantee any rights of employment with the Employer, including, without limitation, any right to continue in the
employ of the Employer, or affect the right of the Employer to terminate the employment of a Grantee at any time, with or without cause.

	
 
	
 

	
3.4
	
Legal or Other Restrictions

	
 
	
 
	
 
	
 

	
 
	
If in the opinion of legal counsel for the Company the issuance or sale of any shares of Common Stock pursuant to the exercise of an option would not be lawful for any reason, including without limitation the inability of the Company to obtain from
any governmental authority or regulatory body having jurisdiction the authority deemed necessary by such counsel for such issuance or sale, or such shares of Common Stock will not be listed on any national securities exchange or the Nasdaq National Market
on which the Company's Common Stock is then listed, the Company shall not be obligated to issue or sell any Common Stock pursuant to the exercise of an Option to a Grantee or any other authorized person unless a registration statement that complies with
the provisions of the Securities Act of 1933, as amended (the "Act"), in respect of such shares is in effect at the time thereof, or other appropriate action has been taken under and pursuant to the terms and provisions of the Act, applicable state
securities laws or the regulations of such national securities exchange or the Nasdaq National Market. The Company agrees to use reasonable efforts to make, in the opinion of such counsel, the issuance or sale of shares of Common Stock pursuant to the
exercise of an Option granted hereunder lawful and the Shares of Common Stock pursuant to the Option to be listed on the Nasdaq National Market or such national securities exchange, as the case may be, but the Company shall be under no obligation to
prepare and file a registration statement or any other application or filing with the Securities and Exchange Commission, any state securities administrator, the Nasdaq National Market or any national securities exchange with respect to such shares.

	
 
	
 

	
3.5
	
Rights Unaffected

	
 
	
 
	
 
	
 

	
 
	
The existence of the Options shall not affect: the right or power of the Company or its shareholders to make adjustments, recapitalizations, reorganizations or other changes in the Company's capital structure or its business; any issue of bonds,
debentures, preferred or prior preference stocks affecting the Common Stock or the rights thereof; the dissolution or liquidation of the Company, or sale or transfer of any part of its assets or business; or any other corporate act, whether of a similar
character or otherwise.

	
 
	
 
	
 
	
 

	
3.6
	
Withholding Taxes

	
 
	
 
	
 
	
 

	
 
	
As a condition of exercise of an Option, the Company or the Employer may, in its sole discretion, withhold or require the Grantee to pay or reimburse the Company or the Employer for any taxes which the Company or the Employer determines are required
to be withheld in connection with the grant or any exercise of an Option.

	
3.7
	
Choice of Law

	
 
	
 
	
 
	
 

	
 
	
The validity, interpretation and administration of the Plan and of any rules, regulations, determinations or decisions made thereunder, and the rights of any and all persons having or claiming to have any interest therein or thereunder, shall be
determined exclusively in accordance with the laws of the State of Georgia.

	
 
	
Without limiting the generality of the foregoing, the period within which any action in connection with the Plan must be commenced shall be governed by the Laws of the State of Georgia, without regard to the place where the act or omission complained
of took place, the residence of any party to such action, or the place where the action may be brought or maintained.

	
 
	
 

	
3.8
	
Amendment, Suspension and Termination of Plan

	
 
	
 
	
 
	
 

	
 
	
The Board of Directors may, at any time and from time to time, alter, amend, suspend or terminate the Plan in whole or in part; provided, that, unless approved by the holders of a majority of the total number of shares of Common Stock of the Company
represented and entitled to vote at a meeting at which a quorum is present, no amendment shall be made to the Plan if such amendment would:

	
 
	
 

	
 
	
(a)
	
materially modify the eligibility requirements provided in Section 1.4;

	
 
	
 
	
 

	
 
	
(b)
	
increase the total number of shares of Common Stock (except as provided in Section 3.1) which may be granted or awarded under the Plan as provided in Section 1.2;

	
 
	
 
	
 

	
 
	
(c)
	
extend the term of the Plan; or

	
 
	
 
	
 

	
 
	
(d)
	
amend the Plan in any other manner in which the Board, in its discretion, determines should become effective only if approved by the shareholders (even if shareholder approval is not expressly required by the Plan or by law).

 

 

AS APPROVED BY THE BOARD OF DIRECTORS OF SOUTHWEST GEORGIA FINANCIAL CORPORATION on the 19th day of March, 1997.

	
 
	
 

	
 
	
SOUTHWEST GEORGIA FINANCIAL CORPORATION

	
 
	
 

	
 
	
By:         /s/ John H. Clark                             
                    

	
 
	
Title:      Vice Chairman and Chief Executive OfficerEMPLOYMENT AGREEMENT

                  THIS AGREEMENT (this  "Agreement") is made as of
July 31, 2000, between Gerald Stevens, Inc., a Florida corporation (the
"Company"), and Gregory J. Royer ("Executive").

                  In consideration of the mutual covenants contained herein and
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:

                  1. EMPLOYMENT. The Company shall employ Executive, and
Executive hereby accepts employment with the Company, upon the terms and
conditions set forth in this Agreement for the period beginning on the date
hereof and ending on the Termination Date, as defined in Section 4 hereof (the
"Employment Period"). Executive's principal place of business during the
Employment Period shall be in Fort Lauderdale, Florida. The Company will not
require Executive to relocate from this place of business.

                  2.       POSITION AND DUTIES.

                  (a) During the Employment Period, Executive shall serve as a
Senior Vice President and Chief Operating Officer of the Retail Division of the
Company and shall have the duties and responsibilities customarily associated
with such position, with such reasonable changes in duties and responsibilities
as requested by the Company.

                  (b) Executive shall initially report to the Company's
President of Retail Operations and shall devote Executive's reasonable best
efforts and Executive's full business time and attention (except for permitted
vacation periods, periods of illness or other incapacity) to the business and
affairs of the Company.

                  (c) For purposes of this Agreement, all references to
"Company" shall include any corporation of which the securities having a
majority of the voting power in electing directors are, at the time of
determination, owned by the Company, directly or through one or more
subsidiaries.

                  3.       BASE SALARY AND BENEFITS.

                  (a) Executive's base salary shall be $160,000 per annum (the
"Base Salary") through the Company's next annual salary review, which salary
shall be payable in regular installments in accordance with the Company's
general payroll practices (but at least monthly) and shall be subject to
required withholding. In addition, during the Employment Period, Executive shall
be entitled to participate in all of the Company's employee benefit programs for
which employees of the Company are generally eligible, including annual grants

                                       1
<PAGE>

of stock options under the Company's Stock Option Plan and other stock option
plans that the Company may adopt from time to time (all such plans, as they may
be adopted and amended from time to time being hereinafter referred to
collectively as the "Stock Option Plan"), at a level commensurate with
Executive's position in the Company.

                  (b) The Company shall reimburse Executive for all reasonable
expenses incurred by Executive in the course of performing Executive's duties
under this Agreement which are consistent with the Company's policies in effect
from time to time for senior executives with respect to travel, entertainment
and other business expenses, subject to the Company's requirements for its
executives with respect to reporting and documentation of such expenses.

                  (c) In addition to the Base Salary, during the Employment
Period, Executive shall be eligible to receive an annual bonus (the "Bonus") at
such time as the Company pays such bonuses (if any) to its other executives,
based upon Executive's performance and the Company's financial results.

                  4.       TERM AND TERMINATION.

                  (a) This Agreement shall terminate on March 31, 2002 (the
"Expiration Date") unless terminated earlier (i) by Executive's resignation with
or without Good Reason, (ii) Executive's death or Disability, or (iii) by the
Company with or without Cause. The date on which Executive's employment with the
Company is terminated is referred to herein as the "Termination Date."

                  (b) (i) If Executive's employment with the Company is
terminated by the Company without Cause or by Executive with Good Reason, (x)
Executive shall be entitled to receive his Base Salary through the earlier to
occur of (I) the Expiration Date or (II) the first anniversary of the
Termination Date, payable in accordance with paragraph 3 above, (y) all stock
options granted to Executive under the Stock Option Plan which are not vested at
such time shall automatically, and without further action, become vested as of
the Termination Date, and all such options (together with all of Executive's
then vested stock options) shall remain exercisable until the later to occur of
(I) the Expiration Date and (II) the expiration of such stock options pursuant
to the terms of the Stock Option Plan and (z) Executive's obligations under
paragraph 6(a) below shall terminate and be of no further force or effect.

                      (ii) If Executive's employment with the Company is
terminated for any reason other than as described in item (i) above, Executive
shall be entitled to receive his Base Salary through the Termination Date.

                  (c) All of Executive's rights to benefits shall cease upon the
Termination Date.

                                       2
<PAGE>

                  (d) For purposes of this Agreement, the following terms shall
have the meanings set forth below:

                  "Cause" shall mean (i) the conviction of Executive for a
felony or a crime involving moral turpitude or the plea of guilty or no lo
contendre by Executive to a charge of any such crime, (ii) Executive's theft or
embezzlement, or attempted theft or embezzlement, of money or property of the
Company, (iii) Executive's perpetration or attempted perpetration of fraud, or
Executive's participation in a fraud or an attempted fraud, on the Company or
Executive's unauthorized appropriation or attempted appropriation of any
tangible or intangible material assets or property of the Company, (iv)
Executive's dishonesty with respect to any matter concerning the Company or (v)
Executive's substantial and repeated failure to perform Executive's duties
hereunder in accordance with the reasonable directions of the Company.

                  "Disability" shall mean the inability, due to illness,
accident, injury, physical or mental incapacity or other disability, of
Executive to carry out effectively Executive's duties and obligations to the
Company or to participate effectively and actively in the management of the
Company for a period of at least 90 consecutive days or for shorter periods
aggregating at least 120 days (whether or not consecutive) during any
twelve-month period, as determined in the reasonable and good faith judgment of
the Company.

                  "Good Reason" shall mean the Company's willful and material
breach of this Agreement.

                  (e) A termination of this Agreement pursuant to its terms on
the Expiration Date shall not, in and of itself, constitute a termination of
Executive's employment with the Company. At such time, unless the Company or the
Executive terminate Executive's employment with the Company, Executive shall
become an employee at-will of the Company.

                  5. CONFIDENTIAL INFORMATION. Executive acknowledges that the
information, observations and data obtained by Executive while employed by the
Company concerning the business or affairs of the Company reasonably considered
of a confidential nature ("Confidential Information") are the property of the
Company. Therefore, Executive agrees that Executive shall not disclose to any
unauthorized person or use for Executive's own purposes any Confidential
Information without the prior written consent of the Board, unless and to the
extent that the aforementioned matters become generally known to and available
for use by the public other than as a result of Executive's acts or omissions,
or is otherwise known to Executive from independent sources prior to or outside
of Executive's employment with the Company. Executive shall deliver to the
Company at the termination of the Employment Period, or at any other time the
Company may reasonably request, all memoranda, notes, plans, records, reports,
computer tapes, printouts and software and other documents and data (and copies
thereof) relating to the Confidential Information or the business of the Company

                                       3
<PAGE>

which Executive may then possess or have under Executive's control. Nothing
herein shall prohibit Executive's disclosure of Confidential Information as
directed by judicial, administrative or other governmental law, rule, regulation
or order provided that Executive shall, to the extent possible, give immediate
notice to the Company of any disclosure of Confidential Information so required
so that the Company may seek a protective order.

                  6.       NON-COMPETE, NON-SOLICITATION.

                  (a) In further consideration of the compensation to be paid to
Executive hereunder, Executive acknowledges that in the course of Executive's
employment with the Company Executive shall become familiar with the Company's
trade secrets and with other Confidential Information concerning the Company and
that Executive's services shall be of special, unique and extraordinary value to
the Company. Therefore, Executive agrees that, during the Employment Period and
for two years thereafter (the "Noncompete Period"), Executive shall not directly
or indirectly own any interest in, manage, control, participate in, consult
with, render services for, or in any manner engage in any business competing
with the businesses of the Company, as such businesses exist or are in process
on the date of the termination of Executive's employment, within any
geographical area in which the Company engages or plans to engage in such
businesses. Nothing herein shall prohibit Executive from being a passive owner
of not more than 2% of the outstanding stock of any class of a corporation which
is publicly traded, so long as Executive has no active participation in the
business of such corporation.

                  (b) During the Noncompete Period, Executive shall not directly
or indirectly through another entity (i) induce or attempt to induce any
employee of the Company to leave the employ of the Company, or in any way
interfere with the relationship between the Company and any employee thereof,
(ii) hire any person who was an employee of the Company at any time during the
Employment Period (unless such employee was terminated by the Company), or (iii)
induce or attempt to induce any customer, supplier, licensee, licensor,
franchisee or other business relation of the Company to cease doing business
with the Company, or in any way interfere with the relationship between any such
customer, supplier, licensee or business relation and the Company.

                  (c) If, at the time of enforcement of this Section 6, a court
shall hold that the duration, scope or area restrictions stated herein are
unreasonable under circumstances then existing, the parties agree that the
maximum duration, scope or area reasonable under such circumstances shall be
substituted for the stated duration, scope or area and that the court shall be
allowed to revise the restrictions contained herein to cover the maximum period,
scope and area permitted by law. Executive agrees that the restrictions
contained in this Section 6 are reasonable.

                                       4
<PAGE>

                  (d) In the event of the breach or a threatened breach by
Executive of any of the provisions of this Section 6, the Company, in addition
and supplementary to other rights and remedies existing in its favor, may apply
to any court of law or equity of competent jurisdiction for specific performance
and/or injunctive or other relief in order to enforce or prevent any violations
of the provisions hereof (without posting a bond or other security). In
addition, in the event of an alleged breach or violation by Executive of this
Section 6, the Noncompete Period shall be tolled until such breach or violation
has been duly cured.

                  7. MUTUAL REPRESENTATIONS. Executive and the Company each
represents and warrants to the other that (i) the execution, delivery and
performance of this Agreement by such party do not and shall not conflict with,
breach, violate or cause a default under any contract, agreement, instrument,
order, judgment or decree to which such party is a party or by which it is
bound, (ii) such party is not a party to or bound by any employment agreement,
noncompete agreement or confidentiality agreement with any other person or
entity that would be breached or violated by such party's execution and delivery
or performance of this Agreement and (iii) upon the execution and delivery of
this Agreement by such party, this Agreement shall be the valid and binding
obligation of such party, enforceable against such party in accordance with its
terms. Such party hereby acknowledges and represents that it has had an
opportunity to consult with independent legal counsel regarding Executive's
rights and obligations under this Agreement and that Executive fully understands
the terms and conditions contained herein.

                  8. SURVIVAL.  Sections 5 and 6 and  Sections 9 through 16
shall survive and continue in full force in accordance with their terms
notwithstanding any termination of the Employment Period.

                  9. NOTICES.  Any notice provided for in this Agreement shall
be in writing and shall be either personally delivered, or mailed by first class
mail, return receipt requested, to the recipient at the address below indicated:

                  NOTICES TO EXECUTIVE:
                  --------------------

                  Gregory J. Royer
                  1613 10th Street
                  Ft. Lauderdale, FL

                                       5
<PAGE>

                  NOTICES TO THE COMPANY:
                  ----------------------

                  Gerald Stevens, Inc.
                  1800 Eller Drive, Suite 300
                  Fort Lauderdale, FL 33316
                  Attention: President

                  If sent via regular U.S. mail to:

                  P.O. Box 350526
                  Fort Lauderdale, FL  33335-0526

or such other address or to the attention of such other person as the recipient
party shall have specified by prior written notice to the sending party. Any
notice under this Agreement shall be deemed to have been given when so delivered
or three (3) days after so mailed.

                  10. SEVERABILITY. Whenever possible, each provision of this
Agreement shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be invalid,
illegal or unenforceable in any respect under any applicable law or rule in any
jurisdiction, such invalidity, illegality or unenforceability shall not affect
any other provision or any other jurisdiction, but this Agreement shall be
reformed, construed and enforced in such jurisdiction as if such invalid,
illegal or unenforceable provision had never been contained herein.

                  11. COMPLETE AGREEMENT. This Agreement embodies with respect
to the subject matter hereof the complete agreement and understanding among the
parties and supersedes and preempts with respect to the subject matter hereof
any prior understandings, agreements or representations by or among the parties,
written or oral, which may have related to the subject matter hereof in any way,
including the Amended and Restated Employment Agreement between Company and
Executive, dated March 1, 1999.

                  12. NO STRICT CONSTRUCTION. The language used in this
Agreement shall be deemed to be the language chosen by the parties hereto to
express their mutual intent, and no rule of strict construction shall be applied
against any party, it being understood that Section 6(c) contemplates that a
court of competent jurisdiction shall be entitled to "blue pencil" or conform
the express language of Section 6(a) if necessary in order to comply with
Florida law.

                  13. COUNTERPARTS.  This  Agreement may be executed in separate
counterparts, each of which is deemed to be an original and all of which taken
together constitute one and the same agreement.

                                       6
<PAGE>

                  14. SUCCESSORS AND ASSIGNS. This Agreement is intended to bind
and inure to the benefit of and be enforceable by Executive, the Company and
their respective heirs, successors and assigns, except that (x) Executive may
not assign Executive's rights or delegate Executive's obligations hereunder
without the prior written consent of the Company and (y) other than in
connection with the sale of the Company (whether by merger, consolidation, sale
of all of the Company's stock or sale of all or substantially all of the
Company's assets), the Company may not assign its rights to Executive's services
hereunder to any third party.

                  15. CHOICE OF LAW. All issues and questions concerning the
construction, validity, enforcement and interpretation of this Agreement shall
be governed by, and construed in accordance with, the laws of the State of
Florida, without giving effect to any choice of law or conflict of law rules or
provisions (whether of the State of Florida or any other jurisdiction) that
would cause the application of the laws of any jurisdiction other than the State
of Florida.

                  16. AMENDMENT AND WAIVER. The provisions of this Agreement may
be amended or waived only with the prior written consent of the Company and
Executive, and no course of conduct or failure or delay in enforcing the
provisions of this Agreement shall affect the validity, binding effect or
enforceability of this Agreement.

                            [SIGNATURE PAGE FOLLOWS]

                                       7
<PAGE>

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

                                     GERALD STEVENS, INC.

                                     By __________________________
                                     Name: Art Sanders
                                     Title:   Vice President, Human Resources

                                     -----------------------------
                                     GREGORY J. ROYER

                                       8

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