Document:

Deferred Compensation PLan

 Exhibit 10.28 
  
 RED ROBIN GOURMET BURGERS, INC. 
  
 DEFERRED COMPENSATION PLAN 

 Exhibit 10.28 
  

					
	ARTICLE I             TITLE AND DEFINITIONS	  	1
			
	            1.1  	  	 Definitions.
	  	1
		
	ARTICLE II            PARTICIPATION	  	5
			
	2.1  	  	 Requirements for Participation.
	  	5
			
	2.2  	  	 Application to Previous Deferral Elections.
	  	5
		
	ARTICLE III           DEFERRAL ELECTIONS	  	5
			
	3.1  	  	 Elections to Defer Compensation.
	  	5
			
	3.2  	  	 Investment Elections.
	  	6
		
	ARTICLE IV           DEFERRAL ACCOUNTS	  	7
			
	4.1  	  	 Deferral Accounts.
	  	7
			
	4.2  	  	 Company Contribution Account.
	  	7
		
	ARTICLE V            VESTING	  	8
		
	ARTICLE VI           DISTRIBUTIONS	  	8
			
	6.1  	  	 Distribution of Deferred Compensation and Discretionary Company Contributions.
	  	8
			
	6.2  	  	 Early Non-Scheduled Distributions.
	  	9
			
	6.3  	  	 Hardship Distribution.
	  	10
			
	6.4  	  	 Inability to Locate Participant.
	  	10
		
	ARTICLE VII         ADMINISTRATION	  	11
			
	7.1  	  	 Committee.
	  	11
			
	7.2  	  	 Committee Action.
	  	11
			
	7.3  	  	 Powers and Duties of the Committee.
	  	11
			
	7.4  	  	 Construction and Interpretation.
	  	12
			
	7.5  	  	 Information.
	  	12

  

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 Exhibit 10.28 
  

					
	            7.6  	  	 Compensation, Expenses and Indemnity.
	  	12
			
	7.7  	  	 Quarterly Statements; Delegation of Administrative Functions.
	  	12
			
	7.8  	  	 Disputes.
	  	13
		
	ARTICLE VIII         MISCELLANEOUS	  	14
			
	8.1  	  	 Unsecured General Creditor.
	  	14
			
	8.2  	  	 Insurance Contracts or Policies.
	  	14
			
	8.3  	  	 Restriction Against Assignment.
	  	14
			
	8.4  	  	 Withholding.
	  	14
			
	8.5  	  	 Amendment, Modification, Suspension or Termination.
	  	15
			
	8.6  	  	 Governing Law.
	  	15
			
	8.7  	  	 Receipt or Release.
	  	15
			
	8.8  	  	 Payments on Behalf of Persons Under Incapacity.
	  	15
			
	8.9  	  	 Limitation of Rights and Employment Relationship
	  	15
			
	8.10	  	 Headings.
	  	15

  

 ii 

 Exhibit 10.28 
  
 RED ROBIN GOURMET BURGERS 
  
 DEFERRED COMPENSATION PLAN 
  
 WHEREAS, Red Robin Gourmet Burgers, Inc. (the “Company”) desires to adopt this Deferred Compensation Plan (“Plan”) which applies to a
select group of management or highly compensated employees of the Company and its affiliates; 
  
 WHEREAS, the Company intends that the Plan shall govern the elections to defer compensation made in 2002 by Michael E. Woods, James P. McCloskey and Robert Merullo pursuant to a nonqualified deferred compensation plan
that became effective in 2001; 
  
 NOW, THEREFORE, as of the
Effective Date set forth herein, the Company adopts the Plan that follows: 
  
 ARTICLE I 
  
 TITLE
AND DEFINITIONS 
  

	 	1.1	Definitions. 

  
 Whenever the following words and phrases are used in this Plan, with the first letter capitalized, they shall have the meanings specified below.

  
 (a) “Account” or “Accounts” shall mean all
of such accounts as are specifically authorized for inclusion in this Plan. 
  
 (b) “Affiliate” shall mean each corporation (other than the Company) that is a member of the affiliated group filing consolidated federal income tax returns of which the Company is the common parent.

  
 (c) “Base Salary” shall mean a Participant’s
annual base salary, excluding bonus, commissions, incentive and all other remuneration for services rendered to Company and prior to reduction for any salary contributions to a plan established pursuant to Section 125 of the Code or qualified
pursuant to Section 401(k) of the Code. 
  
 (d)
“Beneficiary” or “Beneficiaries” shall mean the person or persons, including a trustee, personal representative or other fiduciary, last designated in writing by a Participant in accordance with procedures established by the
Committee to receive the benefits specified hereunder in the event of the Participant’s death. No beneficiary designation shall become effective until it is filed with the Committee. Any designation shall be revocable at any time through a
written instrument filed by the Participant with the Committee with or without the consent of the previous Beneficiary. No designation of a Beneficiary other than the Participant’s spouse shall be valid unless consented to in writing by such
spouse. If there is no such designation or if there is no surviving designated Beneficiary, then the Participant’s surviving spouse shall be the Beneficiary. If there is no surviving spouse to receive any benefits payable in accordance with the
preceding sentence, the duly appointed and currently acting personal 
  

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 Exhibit 10.28 
  
 representative of the Participant’s estate (which shall include either the Participant’s probate estate or living trust) shall be the Beneficiary. In any case
where there is no such personal representative of the Participant’s estate duly appointed and acting in that capacity within 90 days after the Participant’s death (or such extended period as the Committee determines is reasonably necessary
to allow such personal representative to be appointed, but not to exceed 180 days after the Participant’s death), then Beneficiary shall mean the person or persons who can verify by affidavit or court order to the satisfaction of the Committee
that they are legally entitled to receive the benefits specified hereunder. In the event any amount is payable under the Plan to a minor, payment shall not be made to the minor, but instead be paid (a) to that person’s living parent(s) to act
as custodian, (b) if that person’s parents are then divorced, and one parent is the sole custodial parent, to such custodial parent, or (c) if no parent of that person is then living, to a custodian selected by the Committee to hold the funds
for the minor under the Uniform Transfers or Gifts to Minors Act in effect in the jurisdiction in which the minor resides. If no parent is living and the Committee decides not to select another custodian to hold the funds for the minor, then payment
shall be made to the duly appointed and currently acting guardian of the estate for the minor or, if no guardian of the estate for the minor is duly appointed and currently acting within 60 days after the date the amount becomes payable, payment
shall be deposited with the court having jurisdiction over the estate of the minor. Payment by Company pursuant to any unrevoked Beneficiary designation, or to the Participant’s estate if no such designation exists, of all benefits owed
hereunder shall terminate any and all liability of Company. 
  
 (e) “Board of Directors” or “Board” shall mean the Board of Directors of the Company. 
  
 (f) “Bonuses” shall mean the bonuses earned as of the last day of the Plan Year, provided a Participant is in the employ of the Company on the
last day of the Plan Year. 
  
 (g) “Code” shall mean the
Internal Revenue Code of 1986, as amended. 
  
 (h)
“Committee” shall mean the committee appointed by the Board to administer the Plan in accordance with Article VII; provided that, if the Board has not appointed a committee in accordance with Article VII, the Committee shall be the
Compensation Committee of the Board. 
  
 (i) “Company”
shall mean Red Robin Gourmet Burgers, Inc. 
  
 (j) “Company
Contribution Account” shall mean the bookkeeping account maintained by Company for each Participant that is credited with an amount equal to the Company Discretionary Contribution Amount, if any, and earnings and losses on such amounts pursuant
to Section 4.2. 
  
 (k) “Company Discretionary Contribution
Amount” with respect to a Participant shall mean such amount, if any, contributed by the Company, on a purely discretionary basis, under the Plan for the benefit of Participant for a Plan Year. Such amount may differ from Participant to
Participant both in amount, if any, and as a percentage of Compensation. 
  
 (l) “Compensation” shall be base salary, bonus and commissions. 
  

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 Exhibit 10.28 
  
 (m) “Deferral Account” shall mean the bookkeeping account maintained by the Committee for each Participant that is credited with amounts equal
to (1) the portion of the Participant’s Compensation that he or she elects to defer, and (2) earnings and losses pursuant to Section 4.1. 
  
 (n) “Deferral Election Form” shall mean a form provided by the Committee pursuant to which an Eligible Employee may elect to defer or redefer
compensation in accordance with the Plan. The form and content of the Deferral Election Form may be revised from time to time consistent with the Plan, by or at the direction of the Company’s chief executive officer, chief financial officer or
chief legal officer. 
  
 (o) “Distributable Amount” at
any time shall mean the vested balance in the Participant’s Deferral Account and Company Contribution Account at such time. 
  
 (p) “Distribution Election Form” shall mean a form provided by the Committee pursuant to which an Eligible Employee may elect an Elected
Withdrawal Schedule and/or an Elected Termination Schedule in accordance with the Plan. The form and content of the Distribution Election Form may be revised from time to time consistent with the Plan, by or at the direction of the Company’s
chief executive officer, chief financial officer or chief legal officer. 
  
 (q) “Early Distribution” shall mean an election by Participant in accordance with Section 6.2 to receive a withdrawal of amounts from his or her Deferral Account and Company Contribution Account prior to the
time at which such Participant would otherwise be entitled to such amounts. 
  
 (r) “Effective Date” shall be January 1, 2003. 
  
 (s) “Elected Termination Schedule” shall mean a distribution schedule elected by a Participant, as set forth on the Distribution Election Form for such Plan Year or as otherwise elected by the Participant
pursuant to the Plan, which shall govern certain withdrawals in accordance with Section 6.1(a) in the case of a Participant who retires or terminates employment. Each Elected Termination Schedule shall satisfy the requirements of Section 6.1(a).

  
 (t) “Elected Withdrawal Schedule” shall mean a
distribution schedule elected by a Participant as set forth on the Distribution Election Form for such Plan Year or as otherwise elected by the Participant pursuant to the Plan, which shall govern certain in-service withdrawals in accordance with
Section 6.1(b). Each Elected Withdrawal Schedule shall satisfy the requirements of Sections 6.1(c) and 6.1(d). 
  
 (u) “Eligible Employee” shall be a select group of management and/or highly compensated employees of Red Robin Gourmet Burgers, Inc., or any of
its Affiliates, designated by the Committee as eligible to participate under the Plan. 
  
 (v) “Fund” or “Funds” shall mean one or more of the investment funds selected by the Committee pursuant to Section 3.2(b). 
  

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 Exhibit 10.28 
  
 (w) “Hardship Distribution” shall mean a severe financial hardship to the Participant resulting from a sudden and unexpected illness or accident
of the Participant or of his or her Dependent (as defined in Section 152(a) of the Code), loss of a Participant’s property due to casualty, or other similar or extraordinary and unforseeable circumstances arising as a result of events beyond
the control of the Participant. The circumstances that would constitute an unforseeable emergency will depend upon the facts of each case, but, in any case, a Hardship Distribution may not be made to the extent that such hardship is or may be
relieved (i) through reimbursement or compensation by insurance or otherwise, (ii) by liquidation of the Participant’s assets, to the extent the liquidation of assets would not itself cause severe financial hardship, or (iii) by cessation of
deferrals under this Plan. 
  
 (x) “Initial Election
Period” shall mean the 30-day period prior to the Effective Date of the Plan, or the 30-day period following the time the Committee designates an employee as an Eligible Employee. 
  
 (y) “Interest Rate” shall mean, for each Fund, an amount equal to the net gain or loss on the assets of such Fund
during each month or other period, expressed as a percentage of the balance of the Fund at the beginning of the month or other period. 
  
 (z) “Participant” shall mean any Eligible Employee who becomes a Participant in this Plan in accordance with Article II. 
  
 (aa) “Payment Date” shall mean (i) with respect to distributions
pursuant to an Elected Withdrawal Schedule for a Plan Year, the last regularly scheduled pay day during February of the calendar year elected by the Participant on the Distribution Election Form for the Plan Year, provided such year must begin no
earlier than two (2) years after the last day of the Plan Year, and (ii) with respect to distributions upon the termination or retirement of a Participant, the last regularly scheduled pay day during February of the calendar year beginning after the
event of termination or retirement. 
  
 (bb) “Plan”
shall be this Red Robin Gourmet Burgers Deferred Compensation Plan. 
  
 (cc) “Plan Year” shall be January 1 to December 31. 
  
 (dd) “Previous Deferral Elections” shall mean the elections to defer compensation pursuant to a nonqualified deferred compensation plan established in 2001, which elections were made by Michael E. Woods, James P. McCloskey and
Robert Merullo. 
  

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 Exhibit 10.28 
  
 ARTICLE II 
  
 PARTICIPATION 
  

	 	2.1	Requirements for Participation. 

  
 An Eligible Employee shall become a Participant in the Plan by (i) timely completing and submitting a Deferral Election Form for a Plan Year in accordance
with Section 3.1(a), and all other relevant and appropriate forms as required by the Committee, and (ii) completing any medical examination required pursuant to Section 8.2. 
  

	 	2.2	Application to Previous Deferral Elections. 

  
 The Plan shall apply to the Previous Deferral Elections as if such elections were made pursuant to the provisions of the Plan. The Committee shall have
authority to take all actions deemed necessary or appropriate for the purpose of causing the Previous Deferral Elections to be treated in the same manner as other Deferral Elections under the Plan; provided, however, that the Committee shall be
entitled to interpret or vary the Plan with respect to the Previous Deferral Elections to the extent necessary or appropriate to subsume the Previous Deferral Elections without altering any previous commitments to or understandings with the
individuals who made the Previous Deferral Elections. In order to subsume the Previous Deferral Elections within the Plan, the employees who made the Previous Deferral Elections may be asked to execute new Distribution Election Forms, which may be
customized to their particular situations, with respect to compensation deferred under Previous Deferral Elections. 
  
 ARTICLE III 
  
 DEFERRAL ELECTIONS 
  

	 	3.1	Elections to Defer Compensation. 

  
 (a) Initial Election Period. Subject to the provisions of Article II, each Eligible Employee may elect to defer Compensation by filing with the
Committee a signed and completed election that conforms to the requirements of this Section 3.1, on a Deferral Election Form, no later than the last day of his or her Initial Election Period. 
  
 (b) General Rule. The Compensation that an Eligible Employee may elect
to defer in accordance with Section 3.1(a) shall not exceed seventy-five (75) percent of the Eligible Employee’s base salary; provided that an Eligible Employee may defer up to 100% of bonuses and 100% of commissions for a Plan year; and
provided further that the total amount deferred by a Participant shall be limited in any calendar year, if necessary, to satisfy Social Security Tax (including Medicare), income tax and employee benefit plan withholding requirements as determined in
the sole and absolute discretion of the Committee. The minimum contribution that may be made in any Plan Year by an Eligible Employee shall not be less than $5,000, provided such minimum contribution can be satisfied from any element of
Compensation. An Eligible Employee may elect to change or revoke an election to defer salary during a Plan Year by submitting an executed and completed form to be provided by the Company. 
  
 (c) Duration of Compensation Deferral Election. An Eligible Employee’s initial election to defer Compensation
must be made prior to the end of the Initial Election Period 
  

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 Exhibit 10.28 
  
 and shall be effective with respect to Compensation received in the applicable Plan Year after such deferral election is processed. A Participant who remains an Eligible
Employee for a subsequent Plan Year may increase, decrease or terminate a deferral election with respect to Compensation for any subsequent Plan Year by filing a new signed and completed Deferral Election Form not less than 15 days prior to the
beginning of the next Plan Year, which election shall be effective on the first day of the next following Plan Year. In the case of an employee who becomes an Eligible Employee during a Plan Year, such Eligible Employee shall have 30 days from the
date he or she has become an Eligible Employee to make an initial election with respect to Compensation for such Plan Year, and such election shall be for the remainder of the Plan Year. 
  
 (d) Elections other than Elections during the Initial Election Period. Subject to the limitations of Section 3.1(b)
above, any Eligible Employee who has previously made a Compensation deferral election may elect to again defer Compensation, by filing a signed and completed Deferral Election Form to defer Compensation as described in Sections 3.1(b) and 3.1(c)
above. An election to defer Compensation must be filed in a timely manner in accordance with Section 3.1(c). 
  

	 	3.2	Investment Elections. 

  
 (a) At the time of making the deferral elections described in Section 3.1, the Participant shall designate on a form provided by the Committee the
investment funds or types of investment funds in which the Participant’s Account will be deemed to be invested for purposes of determining the amount of earnings to be credited to that Account. In making the designation pursuant to this Section
3.2, the Participant may specify that all or any percentage (in whole percentage increments) of his or her Account be deemed to be invested in one or more of investment funds or types of investment funds provided under the Plan as communicated from
time to time by the Committee. On a form provided by the Committee, a participant may change each of the investment allocations monthly while employed or after termination. Changes made by the 25th of the month will be effective the first business day of the following month. If a Participant fails to elect a fund or type of fund under this Section 3.2,
he or she shall be deemed to have elected a money market type of investment fund. 
  
 (b) Although the Participant may designate an investment fund or type of investments, the Committee shall not be bound by such designation. The Committee shall select from time to time, in its sole and absolute
discretion, commercially available investments of each of the types communicated by the Committee to the Participant pursuant to Section 3.2(a) above to be the Funds. The Interest Rate of each such commercially available investment fund shall be
used to determine the amount of earnings or losses to be credited to Participant’s Account under Article IV. Participants shall have no ownership interests in any investments made by the Company. 
  

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 Exhibit 10.28 
  
 ARTICLE IV 
  
 DEFERRAL ACCOUNTS 
  

	 	4.1	Deferral Accounts. 

  
 The Committee shall establish and maintain a Deferral Account for each Participant under the Plan. Each Participant’s Deferral Account shall be
further divided into separate subaccounts (“investment fund subaccounts”), each of which corresponds to an investment fund elected by the Participant pursuant to Section 3.2(a). A Participant’s Deferral Account shall be credited as
follows: 
  
 (a) On the third business day after amounts are
withheld and deferred from a Participant’s Compensation, the Committee shall credit the investment fund subaccounts of the Participant’s Deferral Account with an amount equal to Compensation deferred by the Participant in accordance with
the Participant’s election under Section 3.2(a); that is, the portion of the Participant’s deferred Compensation that the Participant has elected to be deemed to be invested in a certain type of investment fund shall be credited to the
investment fund subaccount corresponding to that investment fund; 
  
 (b) Each business day, each investment fund subaccount of a Participant’s Deferral Account shall be credited with earnings or losses in an amount equal to that determined by multiplying the balance credited to such investment fund
subaccount as of the prior day plus contributions credited that day to the investment fund subaccount by the Interest Rate for the corresponding fund selected by the Company pursuant to Section 3.2(b); 
  
 (c) In the event that a Participant elects for a given Plan Year’s
deferral of Compensation to have a Elected Withdrawal Schedule, all amounts attributed to the deferral of Compensation for such Plan Year shall be accounted for in a manner which allows separate accounting for the deferral of Compensation and
investment gains and losses associated with such Plan Year’s deferral of Compensation. 
  

	 	4.2	Company Contribution Account. 

  
 The Committee shall establish and maintain a Company Contribution Account for each Participant under the Plan. Each Participant’s Company
Contribution Account shall be further divided into separate investment fund subaccounts corresponding to the investment fund elected by the Participant pursuant to Section 3.2(a). A Participant’s Company Contribution Account shall be credited
as follows: 
  
 (a) On the third business day after a Company
Discretionary Contribution Amount, the Committee shall credit the investment fund subaccounts of the Participant’s Company Contribution Account with an amount equal to the Company Discretionary Contribution Amount, if any, applicable to that
Participant, that is, the proportion of the Company Discretionary Contribution Amount, if any, which the Participant elected to be deemed to be invested in a certain type of investment fund shall be credited to the corresponding investment fund
subaccount; and 
  
 (b) Each business day, each investment fund
subaccount of a Participant’s Company Contribution Account shall be credited with earnings or losses in an amount equal to that determined by multiplying the balance credited to such investment fund subaccount as of the prior day plus
contributions credited that day to the investment fund subaccount by the Interest Rate for the corresponding Fund selected by the Company pursuant to Section 3.2(b). 
  

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 Exhibit 10.28 
  
 ARTICLE V 
  
 VESTING 
  
 A Participant shall be 100% vested in his or her Deferral Account. 
  
 ARTICLE VI 
  
 DISTRIBUTIONS 
  

	 	6.1	Distribution of Deferred Compensation and Discretionary Company Contributions. 

  
 (a) Distribution upon Termination of Employment. In the case of a Participant who retires or terminates employment
with Company or an Affiliate (and, as a result of such retirement or termination is no longer employed by the Company or its Affiliates) and has an Account balance of more than $50,000 at the time of such retirement or termination, the Distributable
Amount shall be paid to the Participant in substantially equal annual installments over ten (10) years commencing on the Participant’s Payment Date, or as otherwise set forth in a properly and timely completed and filed Election Termination
Schedule. A Participant may elect an optional form of Elected Termination Schedule on the Distribution Election Form provided by Company during his or her enrollment period for the Plan Year to which the election applies, provided that the Elected
Termination Schedule provides for one of the following alternatives: 
  
 (1) A lump sum distribution beginning on the Participant’s Payment Date. 
  
 (2) Substantially equal annual installments over five (5) years beginning on the Participant’s Payment Date. 
  
 (3) Substantially equal annual installments over fifteen (15) years beginning on the Participant’s Payment Date. 
  
 A Participant may modify the Elected Termination Schedule that he or she has
previously elected, provided such modification occurs at least one (1) year before the Participant terminates employment with the Company or an Affiliate. If an attempted modification does not occur at least one (1) year before the Participant
terminates employment, it shall be void, and the Elected Termination Schedule in effect prior to such attempted modification shall remain effective. 
  
 In the case of a Participant who terminates employment with Company or an Affiliate and has an Account balance of $50,000 or less the Distributable
Amount shall be paid to the Participant in a lump sum distribution on the Participant’s Payment Date. 
  
 The Participant’s Account shall continue to be credited with earnings pursuant to Section 4.1 of the Plan until all amounts credited to his or her
Account under the Plan have been distributed. 
  

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 Exhibit 10.28 
  
 (b) Distribution Under Elected Withdrawal Schedule. In the case of a Participant who has elected an Elected Withdrawal Schedule for a distribution
while still in the employ of the Company or an Affiliate, such Participant shall receive his or her Distributable Amount, as has been elected by the Participant to be subject to the Elected Withdrawal Schedule. A Participant may initially elect an
Elected Withdrawal Schedule for deferrals made during a Plan year by submitting a completed and signed Distribution Election Form by the due date for the Deferral Election Form for the same Plan Year. 
  
 (c) Permitted Withdrawal Schedules. A Participant’s Elected
Withdrawal Schedule with respect to deferrals of Compensation deferred in a given Plan Year can be no earlier than two (2) years from the last day of the Plan Year for which the deferrals of Compensation, are made. A Participant’ Elected
Withdrawal Schedule shall otherwise conform with the choices available on the applicable Distribution Election Form. In the case of a Participant with an Account balance of more than $25,000, an Elected Withdrawal Schedule shall provide for the
Distributable Amount to be paid to the Participant from among the following alternatives: 
  
 (1) A lump sum distribution beginning on the Participant’s Payment Date. 
  
 (2) Annual installments over two (2) to five (5) years beginning on the Participant’s Payment Date. 
  
 (d) Extensions. A Participant may extend the Elected Withdrawal
Schedule for any Plan Year, provided such extension occurs at least one year before the initial payment is due under the Elected Withdrawal Schedule in effect prior to the extension and extends the Payment Date under the Elected Withdrawal Schedule
for at least two (2) years. The Participant shall have the right to twice modify any Elected Withdrawal Schedule in accordance with the preceding sentence. In the event a Participant terminates employment with Company or an Affiliate prior to the
last scheduled distribution under an Elected Withdrawal Schedule, other than by reason of death, the portion of the Participant’s Account associated with a Elected Withdrawal Schedule, which has not occurred prior to such termination, shall be
distributed in accordance with Section 6.1(a). 
  
 (e)
Distribution for Termination of Employment due to Death. A Participant who dies while employed by the Company or an Affiliate will receive the total undistributed account balance in a lump sum. 
  

	 	6.2	Early Non-Scheduled Distributions. 

  
 A Participant shall be permitted to elect an Early Distribution from his or her Account prior to the Payment Date, subject to the following restrictions:

  
 (a) The election to take an Early Distribution shall be made
by filing a form provided by and filed with the Committee prior to the end of any calendar month. 
  
 (b) The amount of the Early Distribution shall equal up to 90% of his vested Account balance. 
  

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 Exhibit 10.28 
  
 (c) The amount described in subsection (b) above shall be paid in a single cash lump sum as soon as practicable after the end of the calendar month in
which the Early Distribution election is made. 
  
 (d) If a
Participant requests an Early Distribution of his or her entire vested Account, the remaining balance of his or her Account (10% of the Account) shall be permanently forfeited and the Company shall have no obligation to the Participant or his
Beneficiary with respect to such forfeited amount. If a Participant receives an Early Distribution of less than his or her entire vested Account, such Participant shall forfeit ten percent (10%) of the gross amount by which the Participant’s
account will be reduced, and shall receive a distribution of the remaining 90% of such gross amount, and the Company shall have no obligation to the Participant or his or her Beneficiary with respect to such forfeited amount. 
  
 (e) If a Participant receives an Early Distribution of either all or a part
of his or her Account, the Participant will be ineligible to participate in the Plan for the balance of the Plan Year and the following Plan Year. All distributions shall be made on a pro rata basis from among a Participant’s Accounts.

  

	 	6.3	Hardship Distribution. 

  
 A Participant shall be permitted to elect a Hardship Distribution from his or her vested Accounts prior to the Payment Date, subject to the following
restrictions: 
  
 (a) The election to take a Hardship
Distribution shall be made by filing a form provided by and filed with Committee prior to the end of any calendar month. 
  
 (b) The Committee shall have made a determination that the requested distribution constitutes a Hardship Distribution in accordance with Section 1.1(w) of
the Plan. 
  
 (c) The amount determined by the Committee as a
Hardship Distribution shall be paid in a single cash lump sum as soon as practicable after the end of the calendar month in which the Hardship Distribution election is made and approved by the Committee. 
  
 (d) If a Participant receives a Hardship Distribution, the Participant will
be ineligible to participate in the Plan for the balance of the Plan Year and the following Plan Year. 
  

	 	6.4	Inability to Locate Participant. 

  
 In the event that the Committee is unable to locate a Participant or Beneficiary within two (2) years following the required Payment Date, the amount
allocated to the Participant’s Deferral Account shall be forfeited. If, after such forfeiture, the Participant or Beneficiary later claims such benefit, such benefit shall be reinstated without interest or earnings. 
  

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 Exhibit 10.28 
  
 ARTICLE VII 
  
 ADMINISTRATION 
  

	 	7.1	Committee. 

  
 The Board may appoint a committee to serve, at the pleasure of the Board, as the Committee. The number of members comprising such committee shall be
determined by the Board, which may from time to time vary the number of members. A member of the Committee appointed pursuant to this Section 7.1 may resign by delivering a written notice of resignation to the Board. The Board may remove any member
by delivering a certified copy of its resolution of removal to such member. 
  

	 	7.2	Committee Action. 

  
 The Committee shall act at meetings by affirmative vote of a majority of the members of the Committee. A majority of the members of the Committee shall
constitute a quorum in any meeting of the Committee. Any action permitted to be taken at a meeting may be taken without a meeting if, prior to such action, a written consent to the action is signed by all members of the Committee and such written
consent is filed with the minutes of the proceedings of the Committee. A member of the Committee shall not vote or act upon any matter which relates solely to himself or herself as a Participant. The Chairman or any other member or members of the
Committee designated by the Chairman may execute any certificate or other written direction on behalf of the Committee. 
  

	 	7.3	Powers and Duties of the Committee. 

  
 (a) The Committee, on behalf of the Participants and their Beneficiaries, shall enforce the Plan in accordance with its terms, shall be charged with the
general administration of the Plan, and shall have all powers necessary to accomplish its purposes, including, but not by way of limitation, the following: 
  
 (1) To select the Funds in accordance with Section 3.2(b) hereof; 
  
 (2) To construe and interpret the terms and provisions of this Plan; 
  
 (3) To compute and certify to the amount and kind of benefits payable to
Participants and their Beneficiaries; 
  
 (4) To maintain all
records that may be necessary for the administration of the Plan; 
  
 (5) To provide for the disclosure of all information and the filing or provision of all reports and statements to Participants, Beneficiaries or governmental agencies as shall be required by law; 
  
 (6) To make and publish such rules for the regulation of the Plan and
procedures for the administration of the Plan as are not inconsistent with the terms hereof; 
  
 (7) To appoint one or more Plan administrators or any other agent, and to delegate to them such powers and duties in connection with the administration of the Plan as the Committee may from time to time prescribe; and

  

 11 

 Exhibit 10.28 
  
 (8) To take all actions necessary for the administration of the Plan, including determining whether to hold or discontinue the Policies. 
  

	 	7.4	Construction and Interpretation. 

  
 The Committee shall have full discretion to construe and interpret the terms and provisions of this Plan, which interpretations or construction shall be
final and binding on all parties, including but not limited to the Company and any Participant or Beneficiary. The Committee shall administer such terms and provisions in a uniform and nondiscriminatory manner and in full accordance with any and all
laws applicable to the Plan. 
  

	 	7.5	Information. 

  
 To enable the Committee to perform its functions, the Company shall supply full and timely information to the Committee on all matters relating to the
Compensation of all Participants, their death or other events which cause termination of their participation in this Plan, and such other pertinent facts as the Committee may require. 
  

	 	7.6	Compensation, Expenses and Indemnity. 

  
 (a) The members of the Committee shall serve without compensation for their services hereunder. 
  
 (b) The Committee is authorized at the expense of the Company to employ such
legal counsel as it may deem advisable to assist in the performance of its duties hereunder. Expenses and fees in connection with the administration of the Plan shall be paid by the Company. 
  
 (c) To the extent permitted by applicable state law, the Company shall
indemnify and hold harmless the Committee and each member thereof, the Board of Directors and any delegate of the Committee who is an employee of the Company against any and all expenses, liabilities and claims, including legal fees to defend
against such liabilities and claims arising out of their discharge in good faith of responsibilities under or incident to the Plan, other than expenses and liabilities arising out of willful misconduct. This indemnity shall not preclude such further
indemnities as may be available under insurance purchased by the Company or provided by the Company under any bylaw, agreement or otherwise, as such indemnities are permitted under state law. 
  

	 	7.7	Quarterly Statements; Delegation of Administrative Functions. 

  
 (a) Under procedures established by the Committee, a Participant shall receive a statement with respect to such Participant’s Accounts on a quarterly
basis. 
  
 (b) The Committee may delegate administrative duties
under the Plan to any one or more persons or companies selected by the Committee. 
  

 12 

 Exhibit 10.28 
  

	 	7.8	Disputes. 

  

	 	(a)	Claim. 

  
 A person who believes that he or she is being denied a benefit to which he or she is entitled under this Plan (hereinafter referred to as
“Claimant”) must file a written request for such benefit with the Company, setting forth his or her claim. The request must be addressed to the President of the Company at its then principal place of business. 
  

	 	(b)	Claim Decision. 

  
 Upon receipt of a claim, the Company shall advise the Claimant that a reply will be forthcoming within ninety (90) days and shall, in fact, deliver such
reply within such period. The Company may, however, extend the reply period for an additional ninety (90) days for special circumstances. 
  
 If the claim is denied in whole or in part, the Company shall inform the Claimant in writing, using language calculated to be understood by the Claimant,
setting forth: (A) the specified reason or reasons for such denial; (B) the specific reference to pertinent provisions of this Plan on which such denial is based; (C) a description of any additional material or information necessary for the Claimant
to perfect his or her claim and an explanation of why such material or such information is necessary; (D) appropriate information as to the steps to be taken if the Claimant wishes to submit the claim for review; and (E) the time limits for
requesting a review under subsection (c). 
  

	 	(c)	Request For Review. 

  
 Within sixty (60) days after the receipt by the Claimant of the written opinion described above, the Claimant may request in writing that the Committee
review the determination of the Company. Such request must be addressed to the Secretary of the Company, at its then principal place of business. The Claimant or his or her duly authorized representative may, but need not, review the pertinent
documents and submit issues and comments in writing for consideration by the Committee. If the Claimant does not request a review within such sixty (60) day period, he or she shall be barred and estopped from challenging the Company’s
determination. 
  

	 	(d)	Review of Decision. 

  
 Within sixty (60) days after the Committee’s receipt of a request for review, after considering all materials presented by the Claimant, the
Committee will inform the Participant in writing, in a manner calculated to be understood by the Claimant, the decision setting forth the specific reasons for the decision containing specific references to the pertinent provisions of this Plan on
which the decision is based. If special circumstances require that the sixty (60) day time period be extended, the Committee will so notify the Claimant and will render the decision as soon as possible, but no later than one hundred twenty (120)
days after receipt of the request for review. 
  
 (e) Legal
Action. A Claimant’s compliance with the foregoing provisions of this Article VII is a mandatory prerequisite to a Claimant’s right to commence any legal action with respect to any claim for benefits under this Plan. 
  

 13 

 Exhibit 10.28 
  
 ARTICLE VIII 
  
 MISCELLANEOUS 
  

	 	8.1	Unsecured General Creditor. 

  
 Participants and their Beneficiaries, heirs, successors, and assigns shall have no legal or equitable rights, claims, or interest in any specific property
or assets of the Company. No assets of the Company shall be held in any way as collateral security for the fulfilling of the obligations of the Company under this Plan. Any and all of the Company’s assets shall be, and remain, the general
unpledged, unrestricted assets of the Company. The Company’s obligation under the Plan shall be merely that of an unfunded and unsecured promise of the Company to pay money in the future, and the rights of the Participants and Beneficiaries
shall be no greater than those of unsecured general creditors. It is the intention of the Company that this Plan be unfunded for purposes of the Code and for purposes of Title 1 of the Employee Retirement Income Security Act of 1974, as amended
(“ERISA”). 
  

	 	8.2	Insurance Contracts or Policies. 

  
 Amounts payable hereunder may be provided through insurance contracts or policies, the premiums for which are paid by the Company from its general assets,
and which contracts or policies are issued by an insurance company or similar organization. In order to become a Participant under the Plan, an Eligible Participant may be required to complete such insurance application forms and insurance
application worksheets and to undergo such medical examinations as requested by the Committee in connection with the acquisition of any such insurance contract or policy. 
  

	 	8.3	Restriction Against Assignment. 

  
 The Company shall pay all amounts payable hereunder only to the person or persons designated by the Plan and not to any other person or corporation. No
part of a Participant’s Accounts shall be liable for the debts, contracts, or engagements of any Participant, his or her Beneficiary, or successors in interest, nor shall a Participant’s Accounts be subject to execution by levy,
attachment, or garnishment or by any other legal or equitable proceeding, nor shall any such person have any right to alienate, anticipate, sell, transfer, commute, pledge, encumber, or assign any benefits or payments hereunder in any manner
whatsoever. If any Participant, Beneficiary or successor in interest is adjudicated bankrupt or purports to anticipate, alienate, sell, transfer, commute, assign, pledge, encumber or charge any distribution or payment from the Plan, voluntarily or
involuntarily, the Committee, in its discretion, may cancel such distribution or payment (or any part thereof) to or for the benefit of such Participant, Beneficiary or successor in interest in such manner as the Committee shall direct. 

 

	 	8.4	Withholding. 

  
 There shall be deducted from each payment made under the Plan or any other Compensation payable to the Participant (or Beneficiary) all taxes which are
required to be withheld by the Company in respect to such payment or this Plan. The Company shall have the right to reduce any payment (or compensation) by the amount of cash sufficient to provide the amount of said taxes. 
  

 14 

 Exhibit 10.28 
  

	 	8.5	Amendment, Modification, Suspension or Termination. 

  
 The Committee may amend, modify, suspend or terminate the Plan in whole or in part, except that no amendment, modification, suspension or termination
shall have any retroactive effect to reduce any amounts allocated to a Participant’s Accounts. In the event that this Plan is terminated, the amounts allocated to a Participant’s Accounts shall be distributed to the Participant or, in the
event of his or her death, his or her Beneficiary in a lump sum within thirty (30) days following the date of termination. 
  

	 	8.6	Governing Law. 

  
 This Plan shall be construed, governed and administered in accordance with the laws of the State in which the Company is incorporated, except where
pre-empted by federal law. 
  

	 	8.7	Receipt or Release. 

  
 Any payment to a Participant or the Participant’s Beneficiary in accordance with the provisions of the Plan shall, to the extent thereof, be in full
satisfaction of all claims against the Committee and the Company. The Committee may require such Participant or Beneficiary, as a condition precedent to such payment, to execute a receipt and release to such effect. 
  

	 	8.8	Payments on Behalf of Persons Under Incapacity. 

  
 In the event that any amount becomes payable under the Plan to a person who, in the sole judgment of the Committee, is considered by reason of physical or
mental condition to be unable to give a valid receipt therefore, the Committee may direct that such payment be made to any person found by the Committee, in its sole judgment, to have assumed the care of such person. Any payment made pursuant to
such determination shall constitute a full release and discharge of the Committee and the Company. 
  

	 	8.9	Limitation of Rights and Employment Relationship 

  
 Neither the establishment of the Plan nor any modification thereof, nor the creating of any fund or account, nor the payment of any benefits shall be
construed as giving to any Participant, or Beneficiary or other person any legal or equitable right against the Company or any Affiliate except as provided in the Plan; and in no event shall the terms of employment of any Employee or Participant be
modified or in any way be affected by the provisions of the Plan. 
  

	 	8.10	Headings. 

  
 Headings and subheadings in this Plan are inserted for convenience of reference only and are not to be considered in the construction of the provisions
hereof. 
  

 15CENTRA SOFTWARE, INC. AMENDED AND RESTATED 1999 EMPLOYEE STOCK PUR PLAN

 Exhibit 10.4 
  
 Amended and Restated June 2003 
  

CENTRA SOFTWARE, INC. 
  
 AMENDED AND RESTATED 1999 DIRECTOR PLAN 
  
 SECTION 1. General Purpose of the Plan; Definitions 
  

The name of the plan is the 1999 Director Plan (the “Plan”). The purpose of the Plan is to encourage ownership in Centra Software, Inc. (the
“Company”) by non-employee directors of the Company whose continued services are considered essential to the Company’s future progress and to provide them with a further incentive to remain as directors of the Company. 
  
 The following terms shall be defined as set forth below: 
  
 “Board” means the Board of Directors of the Company. 
  
 Change of Control” shall have the meaning set forth in Section 10.

  
 “Code” means the Internal Revenue Code of 1986, as
amended, and any successor Code, and related rules, regulations and interpretations. 
  
 “Common Stock” means the common stock, $.001 par value per share, of the Company, subject to adjustments pursuant to Section 3. 
  
 “Committee” shall have the meaning set forth in Section 2. 
  
 “Effective Date” means the date on which the Plan is approved by
stockholders as set forth in Section 12. 
  
 “Outside
Director” means any director who (i) is not an employee of the Company or of any “affiliated group,” as such term is defined in Section 1504(a) of the Code, which includes the Company (an “Affiliate”), (ii) is not a former
employee of the Company or any Affiliate who is receiving compensation for prior services (other than benefits under a tax-qualified retirement plan) during the Company’s or any Affiliate’s taxable year, (iii) has not been an officer of
the Company or any Affiliate and (iv) does not receive remuneration from the Company or any Affiliate, either directly or indirectly, in any capacity other than as a director. “Outside Director” shall be determined in accordance with
Section 162(m) of the Code and the Treasury regulations issued thereunder. 
  
 “Option” or “Stock Option” shall refer to a non-statutory stock option not entitled to special tax treatment under Section 422 of the Internal Revenue Code. 
  
 “Subsidiary” means a subsidiary as defined in Section 424 of the
Code. 
  
 SECTION 2. Administration of Plan

  
 (a) Committee. The Plan shall be administered by a
committee of the Board (the “Committee”) consisting of not less than two (2) Outside Directors, but the authority and validity of any act taken or not 

 taken by the Committee shall not be affected if any person administering the Plan is not an “Outside Director.”
Except as specifically reserved to the Board under the terms of the Plan, the Committee shall have full and final authority to operate, manage and administer the Plan on behalf of the Company. Action by the Committee shall require the affirmative
vote of a majority of all members thereof. 
  
 (b) Powers of
Committee. The Committee shall have the power and authority to grant and modify Options consistent with the terms of the Plan, including the power and authority: 
  
 (i) to select the persons to whom Options may from time to time be granted (individually, a
“Participant”); 
  
 (ii) to determine
the time or times of grant; 
  
 (iii) to
determine the number of shares to be covered by any Option; 
  
 (iv) to determine and modify the terms and conditions, including restrictions, not inconsistent with the terms of the Plan, of any Option, which terms and conditions may differ among individual Options and
participants, and to approve the form of written instruments evidencing the Options; provided, however, that no such action shall adversely affect rights under any outstanding Option without the participant’s consent; 
  
 (v) to accelerate the exercisability or vesting of all or
any portion of any Option; 
  
 (vi) to determine
whether, to what extent, and under what circumstances Common Stock and other amounts payable with respect to an Option shall be deferred either automatically or at the election of the participant and whether and to what extent the Company shall pay
or credit amounts equal to interest (at rates determined by the Committee) or dividends or deemed dividends on such deferrals; and 
  
 (vii) to adopt, alter and repeal such rules, guidelines and practices for administration of the Plan and for its own acts and proceedings
as it shall deem advisable; to interpret the terms and provisions of the Plan and any Option (including related written instruments); to make all determinations it deems advisable for the administration of the Plan; to decide all disputes arising in
connection with the Plan; and to otherwise supervise the administration of the Plan. 
  
 All decisions and interpretations of the Committee shall be binding on all persons, including the Company and Plan participants. 
  

SECTION 3. Shares Issuable under the Plan; Mergers; Substitution. 
  
 (a.) Shares Issuable. The maximum number of shares of Common Stock with respect to which Options may be granted under
the Plan shall be two hundred thousand (200,000). For purposes of this limitation, the shares of Common Stock underlying any Options which are forfeited, cancelled, reacquired by the Company or otherwise terminated (other than by exercise) shall be
added back to the shares of Common Stock with respect to which Options may be granted under the Plan so long as the participants to whom such Options had been previously granted received no benefits of ownership of the underlying shares of Common
Stock to which the Option related. Shares issued under the Plan may be authorized but unissued shares or shares reacquired by the Company. 
  

 - 2 - 

 (b.) Stock Dividends, Mergers, etc. In the event that after approval of the Plan by the
stockholders of the Company in accordance with Section 12, the Company effects a stock dividend, stock split or similar change in capitalization affecting the Stock, the Committee shall make appropriate adjustments in (i) the number and kind of
shares of stock or securities with respect to which Options may thereafter be granted (including without limitation the limitations set forth in Sections 3(a) above), (ii) the number and kind of shares remaining subject to outstanding Options, and
(iii) the Option or purchase price in respect of such shares. In the event of any merger, consolidation, dissolution or liquidation of the Company, the Committee in its sole discretion may, as to any outstanding Options, make such substitution or
adjustment in the aggregate number of shares reserved for issuance under the Plan and in the number and purchase price (if any) of shares subject to such Options as it may determine and as may be permitted by the terms of such transaction, or
accelerate, amend or terminate such Options upon such terms and conditions as it shall provide (which, in the case of the termination of the vested portion of any Option, shall require payment or other consideration which the Committee deems
equitable in the circumstances), subject, however, to the provisions of Section 10. 
  
 SECTION 4. Eligibility. 
  
 Options may be granted to directors of the Company who are not employees of the Company or any Subsidiary (“Non-Employee Director”). 
  
 SECTION 5. Stock Options. 
  
 The Committee may grant to Options to purchase stock to Non-Employee Directors. Each Option granted under the Plan shall be evidenced by a written
agreement in such form as the Committee shall from time to time approve, which agreements shall comply with and be subject to the following terms and conditions. 
  
 (a.) Option Grant Dates. Subject to execution by the Non-Employee Director of an appropriate option agreement, the
Committee may grant additional Options to purchase a number of shares to be determined by the Committee in recognition of services provided by a Non-Employee Director in his or her capacity as a director, provided that such grants are in compliance
with the requirements of Rule 16b-3, as promulgated under the Securities Exchange Act of 1934, as amended from time to time (“Rule 16b-3”). Each date of grant of an Option pursuant to this Section 5(a) is hereinafter referred to as an
“Option Grant Date”. 
  
 (b.) Option Exercise
Price. The Option exercise price per share for each Option granted under the Plan shall equal (i) the closing price on any national securities exchange on which the Common Stock is listed, (ii) the closing price of the Common Stock on the Nasdaq
National Market or (iii) the average of the closing bid and asked prices in the over-the-counter market, whichever is applicable, as published in The Wall Street Journal, on the Option Grant Date. If no sales of Common Stock were made on the Option
Grant Date, the price of the Common Stock for purposes of clauses (i) and (ii) above shall be the reported price for the next preceding day on which sales were made. 
  
 (c.) Transferability of Options. Except as the Committee may otherwise determine or provide in an Option granted
under the Plan, any Option granted under the Plan to an optionee shall not be transferable by the optionee other than by will or the laws of descent and distribution, and shall be exercisable during the optionee’s lifetime only by the optionee
or the optionee’s guardian or legal representative. References to an optionee, to the extent relevant in the context, shall include references to authorized transferees. 
  

 - 3 - 

 (d.) Vesting Period. Each Option granted under the Plan pursuant to Section 5(a) above shall
become exercisable on such terms as shall be determined by the Board and set forth in the option agreement with the respective optionee. 
  
 (e.) Termination. Each Option shall terminate, and may no longer be exercised, on the earlier of (i) the date ten years after the Option Grant Date
of such Option or (ii) the first anniversary of the date on which the optionee ceases to serve as a director of the Company. 
  
 (f.) Exercise Procedure. Stock Options may be exercised in whole or in part, by delivering written notice of exercise to the Company, specifying
the number of shares to be purchased. Payment of the purchase price may be made by one or more of the following methods: 
  
 (i) In cash, by certified or bank check or other instrument acceptable to the Committee; 
  
 (ii) In the form of shares of Stock that are not then subject
to restrictions, if permitted by the Committee, in its discretion. Such surrendered shares shall be valued at Fair Market Value on the exercise date; or 
  
 (iii) By the optionee delivering to the Company a properly executed exercise notice together with irrevocable instructions to a broker to
promptly deliver to the Company cash or a check payable and acceptable to the Company to pay the purchase price; provided that in the event the optionee chooses to pay the purchase price as so provided, the optionee and the broker shall comply with
such procedures and enter into such agreements of indemnity and other agreements as the Committee shall prescribe as a condition of such payment procedure. The Company need not act upon such exercise notice until the Company receives full payment of
the exercise price; or 
  
 (iv) By any other
means (including, without limitation, by delivery of a promissory note of the optionee payable on such terms as are specified by the Committee) which the Committee determines are consistent with the purpose of the Plan and with applicable laws and
regulations. 
  
 The delivery of certificates representing shares
of Stock to the Optionee (or a purchaser acting in his stead in accordance with the provisions of the Stock Option) by the Company of the full purchase price for such shares and the fulfillment of any other requirements contained in the Stock Option
or imposed by applicable law. 
  
 SECTION 6. Termination of Stock
Options. 
  
 Any Option granted under the Plan
shall contain such terms and conditions with respect to its termination as the Committee, in its discretion, may from time to time determine. 
  
 SECTION 7. Amendments and Termination. 
  
 The Board may at any time amend or discontinue the Plan and the Committee may at any time amend or cancel any outstanding Option (or provide substitute
Options at the same or reduced exercise or purchase price or with no exercise or purchase price, but such price, if any, must satisfy the requirements which would apply to the substitute or amended Option if it were then initially granted under this
Plan) for the purpose of satisfying changes in law or for any other lawful purpose, but no such action shall adversely affect rights under any outstanding Option without the holder’s consent. 
  

 - 4 - 

 SECTION 8. Status of Plan. 
  
 With respect to the portion of any Option which has not been exercised and any payments in cash, Common Stock or other
consideration not received by a participant, a participant shall have no rights greater than those of a general creditor of the Company unless the Committee shall otherwise expressly determine in connection with any Option or Options. In its sole
discretion, the Committee may authorize the creation of trusts or other arrangements to meet the Company’s obligations to deliver Common Stock or make payments with respect to Options hereunder, provided that the existence of such trusts or
other arrangements is consistent with the provision of the foregoing sentence. 
  
 SECTION 9. Change of Control Provisions. 
  

	(a)	Upon the occurrence of a Change of Control as defined in this Section 9: 

  
 (i) subject to the provisions of clause (iii) below, after the effective date of such Change of Control, each holder of an outstanding
Option shall be entitled, upon exercise of such Option, to receive, in lieu of shares of Common Stock (or consideration based upon the Fair Market Value of Stock), shares of such stock or other securities, cash or property (or consideration based
upon shares of such stock or other securities, cash or property) as the holders of shares of Common Stock received in connection with the Change of Control; 
  
 (ii) the Committee may accelerate the time for exercise of, and waive all conditions and restrictions on, each unexercised and unexpired
Option, effective upon a date prior or subsequent to the effective date of such Change of Control, specified by the Committee; or 
  
 (iii) each outstanding Stock Option may be cancelled by the Committee as of the effective date of any such Change of Control provided that
(x) notice of such cancellation shall be given to each holder of such an Option and (y) each holder of such an Option shall have the right to exercise such Option to the extent that the same is then exercisable or, in full, if the Committee shall
have accelerated the time for exercise of all such unexercised and unexpired Options, during the thirty (30) day period preceding the effective date of such Change of Control. 
  

	(b)	“Change of Control” shall mean the occurrence of any one of the following events: 

  
 (i) any “person” (as such term is used in Sections 13(d) and 14(d)(2) of the Act) becomes a
“beneficial owner” (as such term is defined in Rule 13d-3 promulgated under the Act) (other than the Company, any trustee or other fiduciary holding securities under an employee benefit plan of the Company, or any corporation owned,
directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company), directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the
combined voting power of the Company’s then outstanding securities; or 
  
 (ii) the stockholders of the Company approve a merger or consolidation of the Company with any other corporation or other entity, other than a merger or consolidation which would result in the voting securities of the
Company outstanding immediately prior thereto continuing to represent (either by 
  

 - 5 - 

 remaining outstanding or by being converted into voting securities of the surviving entity) more than
sixty-five percent (65%) of the combined voting power of the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation; or 
  
 (iii) the stockholders of the Company approve a plan of complete liquidation of the Company or an agreement
for the sale or disposition by the Company of all or substantially all of the Company’s assets. 
  
 SECTION 10. General Provisions. 
  
 (a) No Distribution; Compliance with Legal Requirements. The Committee may require each person acquiring shares pursuant to an Option to represent to and agree with the Company in writing that such person is
acquiring the shares without a view to distribution thereof. No shares of Common Stock shall be issued pursuant to an Option until all applicable securities laws and other legal and stock exchange requirements have been satisfied. The Committee may
require the placing of such stop orders and restrictive legends on certificates for Common Stock and Options as it deems appropriate. 
  
 (b) Delivery of Stock Certificates. Delivery of stock certificates to participants under this Plan shall be deemed effected for all purposes when
the Company or a stock transfer agent of the Company shall have delivered such certificates in the United States mail, addressed to the participant, at the participant’s last known address on file with the Company. 
  
 (c) No Right to Continue as a Director. Nothing contained in this
Plan, nor the granting of any Option nor any other action taken pursuant to this Plan, shall constitute or be evidence of any agreement or understanding, express or implied, that the Company will retain the optionee as a director for any period of
time. 
  
 (d) No Stockholders’ Rights for Options. An
optionee shall have no rights as a stockholder with respect to the shares covered by his or her option until the date of the issuance to him or her of a stock certificate therefor, and no adjustment will be made for dividends or other rights (except
as provided in Section 3) for which the record date is prior to the date such certificate is issued. 
  
 SECTION 11. Effective Date of Plan. 
  
 The Plan shall become effective upon approval by the holders of a majority of the shares of capital stock of the Company present or represented and
entitled to vote at a meeting of stockholders. 
  
 SECTION 12.
Governing Law. 
  
 This Plan shall be
governed by, and construed and enforced in accordance with, the substantive laws of the State of Delaware without regard to its principles of conflicts of laws. 
  

*        *         * 
  

 - 6 -

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