Document:

Exhibit 10.17

 

Execution Copy

 

September 19, 2008

 

Conbulk Corporation

c/o Palmosa Shipping Corporation

107 A. Papanastasiou Street

Kastella-Piraeus, Greece 18533

 

[                                                    ]

 

AGREEMENT made this
19th day of September, 2008 by and between Conbulk Corporation, a
Marshall Islands corporation (the “Company”), and Raven International Corp., a Marshall
Islands corporation (the “Consultant”).

 

By which, in consideration of the mutual
covenants and agreements set forth herein, the parties hereto agree as follows:

 

1.             The Company.  The Company will initially be engaged, directly and/or through
subsidiaries, in the ownership, operation and management of feeder sector
container vessels trading worldwide, and may in the future engage in the
ownership, operation and/or management of cargo vessels in other sectors.

 

2.             Engagement.  The Company hereby engages the Consultant to act as consultant for the
Company and for any of the Company’s affiliates or subsidiaries (collectively the
“Conbulk Group Affiliates”) and to develop new business for the Company and the
Conbulk Group Affiliates outside of Greece and the Consultant hereby agrees to
such engagement.  The work of Consultant
shall be performed by Mr. [                              ],
the principal of the Consultant (the “Principal”).

 

3.             Duration. 
The duration of the engagement shall be for a term of five (5) years,
commencing on the Effective Date, as such term is defined in Section 17
below, and ending (unless terminated earlier on the basis of any other
provision of this Agreement) on the day before the fifth (5th) anniversary of
the Effective Date (such period as it may be extended is referred to as the “Term”).  Thereafter the Term shall automatically renew
for successive one year terms, unless the Consultant or the Company provides
written notice not less than ninety (90) days prior to the expiration of any
such Term of the Consultant’s or the Company’s intent not to renew for a
successive one year Term. 
Notwithstanding the foregoing, the Term shall terminate if any party
terminates the Consultant’s engagement hereunder in accordance with the terms
of Section 8 below.

 

4.             Duties. 
The Consultant’s duties shall be the development of new business outside
of Greece.  The Consultant shall at all
times act in the best interests of, and owe its duties to, the Company and the
Conbulk Group Affiliates.  The Consultant
shall report directly to the Board of Directors of the Company (the “Board”).

 

5.             Hours of Work.  During the Term, the Consultant shall devote the requisite amount of
time, attention and energy to the business and affairs of the Company as
necessary to fulfill its duties and responsibilities as may be assigned to it
by the Board, and in the absence of such assignment, such duties,
responsibilities and authority as are customary to those positions to which its
has been appointed.  The Consultant
agrees that it shall not engage in or be interested in any capacity in any
activity that is contrary to the interests of the Company, or that is
reasonably deemed by the Company to be harmful to the Company’s business
interests, unless 

 

 

such activity is fully
disclosed and approved in writing prior to the undertaking by the Board.  To the extent that it does not interfere with
the Consultant’s duties hereunder, the Consultant may (A) engage in
charitable, educational or community affairs; (B) manage passive
investments; and (C) engage in any other activities that do not compete
with the interests of the Company or the Conbulk Group Affiliates.

 

6.             Fee.

 

In consideration of its services hereunder, the Consultant shall be
paid as follows:

 

a.             Base Fee.  For each calendar month during
the Term or part thereof, the Consultant shall be paid a base fee of not less
than EURO [                 ],
on an annualized basis (less all applicable deductions and withholdings).  The Consultant’s base fee shall be subject to
review and increase by the Board or by an appropriate committee of the Board on
an annual basis.  The base fee shall be
paid to the Consultant on a monthly basis at the end of each calendar month.

 

b.             Discretionary Bonus. 
For each calendar year during the Term or part thereof, the Consultant
shall be eligible to receive a discretionary cash bonus upon successful
development of any new business or increase in the Company’s and/or Conbulk
Group Affiliates’ business as determined by the Board or a committee thereof.  The discretionary cash bonus, if any, shall
be paid annually at the end of each calendar year.

 

7.             Expenses. 
The Company shall reimburse the Consultant for all reasonable out-of-pocket
business expenses, including travel, incurred in the performance of its duties
under this Agreement, in accordance with the Company’s expense reimbursement
guidelines, as they may be amended from time to time.

 

8.             Termination.

 

(a)           This Agreement may be
terminated in the following manner:

 

(i)            at the end of the
Term in the manner provided in Section 3 of this Agreement;

 

(ii)           by the mutual
agreement of the parties, at any time;

 

(iii)          by the Company at any
time with Cause, as defined under (b) of this Section 8, below;

 

(iv)          by either party for
any material breach of its respective terms and provisions by the other party;

 

(v)           by the Consultant
upon a “Change of Control” of the Company, as defined under (c) of this Section 8,
below; or

 

(vi)          upon the termination of any employments,
consultancy or similar services agreement between the Company and the
Consultant or between the Company and the Principal.

 

(b)           It is expressly
agreed that any of the following shall constitute Cause permitting termination
by the Company:

 

2

 

(i)            Unreasonable failure
by the Consultant to perform its duties, as fixed from time to time by the
Board;

 

(ii)           Infringement of the
obligation of confidentiality and the obligation of non competition, as below
described in Sections 10 and 11; or

 

(iii)          Engagement in
unacceptable activities including by way of indication and not limitation (A) willful
or deliberate failure to perform Consultant’s duties, (B) material breach
of the terms of this Agreement, (C) dishonesty, willful misconduct or
fraud in connection with the performance of Consultant’s duties, or in any way
related to the business of the Company or the Conbulk Group Affiliates; (D) conviction
of any crime involving moral turpitude, (E) engaging in conduct materially
injurious to the business, reputation or goodwill of the Company or the Conbulk
Group Affiliates.

 

For purposes of Subsection 8(b), the act or
omission of the Principal of any of the items set forth in Subsection 8(b)(i) through
(iii) shall be deemed to constitute an act or omission of the Consultant.

 

(c)           For purposes of this Section 8, a “Change
of Control” shall be deemed to have occur upon any of the following:

 

(i)            the sale, lease, transfer, conveyance or
other disposition (other than by way of merger or consolidation), in one or a
series of related transactions, of all or substantially all of the Company’s
assets, other than a disposition to any Conbulk Group Affiliate that does not
result in a change in the equity holdings of the Company;

 

(ii)           the adoption by the Company’s Board of a
plan of liquidation or dissolution;

 

(iii)          The
consummation of any transaction in which any “person” (as such term is used in
Sections 3(a)(9) and 13(d) of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”)) or “group” (within the meaning of Section 13(d)(3) of
the Exchange Act), other than the Company or a Conbulk Group Affiliate (or any
entity which the Company or a Conbulk Group Affiliate directly or indirectly
controls (as defined in Rule 12b-2 under the Exchange Act)), acquires the “beneficial
ownership” (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of thirty percent (30%) or more of the outstanding voting stock of
the Company;

 

(iv)          the
Company consolidates with, or merges into, any person (other than any Conbulk
Group Affiliate), or any such person consolidates with, or merges with or into,
the Company, in any such event pursuant to a transaction in which any of the
outstanding common shares are converted into or exchanged for cash, securities
or other property, or receive a payment of cash, securities or other property,
other than any such transaction where the Company’s common shares that are
outstanding immediately prior to such transaction are converted into or
exchanged for voting stock of the surviving person constituting a majority of
the outstanding shares of such voting stock of such surviving person immediately
after giving effect to such issuance; or

 

(v)           the
first day on which a majority of the members of the Board of Directors consists
of individuals other than “Incumbent Directors”, which term means for purposes
of this Agreement, the members of the Board on the Effective Date; provided
that any person becoming a director subsequent to such date whose election or
nomination for election 

 

3

 

was supported by a majority of the directors who then
comprised the Incumbent Directors shall be considered to be an Incumbent
Director.

 

(d)           The employment shall cease if the Principal
dies or becomes permanently disabled. In the event that the Principal’s ability
to provide the services of the Consultant hereunder ceases because of his death
or disability during the Term of this Agreement, subject to the terms of
subparagraph (f) of this Section, the Consultant (or its representative or
successors) shall be entitled to receive any payments that have been earned and
are due and payable as of the termination date, but have not yet been
paid.  For purposes of this Agreement
permanent disability shall be mean the Principal’s inability to perform his
duties and responsibilities as contemplated under this Agreement for a period
of more than 180 consecutive days, or for a period aggregating more than 240
days, whether or not continuous, during any 360-day period, due to physical,
mental, or emotional incapacity.

 

(e)           In the event that this Agreement is
terminated without cause, other than in accordance with subparagraph (d) of
this Section 9, or there is a material breach by the Company of the terms
of this Agreement, giving the right of termination to the Consultant, the
Consultant shall be entitled to a lump sum fee, payable upon termination of
this agreement, of an amount equal to two times the annual base fee payable
pursuant to Section 6(a), above, of the full fiscal year immediately
preceding the date of termination.  The Consultant shall
be entitled to the above payments provided that it is not in default of its
obligations hereunder.

 

(f)            The Consultant agrees
that no payment shall be made to it (or its representative or successors)
pursuant to subparagraphs (d) or (e) of this Section unless it
(or its representative or successors) executes and does not revoke a release in
a form reasonably satisfactory to the Company and its counsel in favour of the Company
and/or the Conbulk Group Affiliates and all related entities and each of their
current and former officers, directors, employees and agents from any and all
claims related to the Consultant’s engagement or the termination of this
Agreement permitted to be released by applicable law.

 

9.             Representations by the
Consultant.  The Consultant represents and
warrants the following:

 

(a)           The
Consultant has all necessary capacity, power and authority to enter into this
Agreement and to perform all the obligations to be performed by the Consultant
hereunder; this Agreement and the consummation by the Consultant of the
transactions contemplated hereby has been duly and validly authorized by all
necessary actions of the Consultant; this Agreement has been duly executed and
delivered by the Consultant; and assuming the due execution and delivery of
this Agreement by the Company, this Agreement constitutes the legal, valid and
binding obligation of the Consultant enforceable against the Consultant in
accordance with its terms.

 

(b)           Neither
the execution and delivery of this Agreement by the Consultant, nor the
consummation of the transactions contemplated hereby by the Consultant, will
violate any judgment, order, writ, decree, law, rule or regulation or
agreement applicable to the Consultant. 
The Consultant is not in breach of any agreement requiring the
preservation of the confidentiality of any information, client lists, trade
secrets or other confidential information or any agreement not to compete or
interfere with any prior employer, and neither the execution of this Agreement
nor the performance by the Consultant of its obligations hereunder will
conflict with, result in a breach of, or constitute a default under, any
agreement to which the Consultant is a party or to which the Consultant may be
subject.

 

4

 

10.           Confidentiality. 
Except as directed in writing, the Consultant will not disclose or use
at any time, either during the period of this Agreement or thereafter, any
Confidential Information (as defined below) of which it is or becomes aware,
except to the extent required by applicable law. The Consultant will take all
appropriate steps to safeguard Confidential Information and to protect it
against disclosure, misuse, espionage, loss and theft. As used in this
Agreement, the term “Confidential Information” means information relating to
the vessels of the Company and/or the Conbulk Group Affiliates that is not
generally known to the public or that is used or developed by the Company
including, without limitation, all products and services, fees, costs and
pricing structures, financial and trading information, accounting and business
methods, analyses, reports, data bases, computer software (including operating
systems, applications and program listings), manuals and documentation,
customers and clients and customer and client lists, account files, travel
agents and travel agent lists, charter contracts, salesmen and salesmen lists,
technology and trade secrets and all similar and related information in
whatever form relating to the business of the Company and/or the Conbulk Group
Affiliates, provided however, that the Consultant may disclose or use
Confidential Information at the direction of the Company.

 

11.           Obligation
of Faith and Non – Competition; Corporate opportunities.

 

(a)               The Consultant,
during the Term of this Agreement and for a period of twelve (12) months
following the Term of this Agreement, shall not assume obligations or
participate in any capacity (whether as a consultant, partner, investor,
advisor or otherwise), either directly or indirectly, for its own account or
for the account of another person or legal entity, in any business activity
relating to the feeder container vessel sector or such other sector or sectors
as the Company or the Conbulk Group Affiliates may be engaged in the future,
without express specific written permission of the Company.

 

(b)               The Consultant further
agrees, during the Term of this Agreement and for a period of twelve (12)
months following the Term of this Agreement, not to:

 

(i)                with respect to deals
or transactions under consideration at the time of termination of the engagement,
solicit, induce or encourage any existing or potential client or counterparty
of the Company and/or a Conbulk Group Affiliate to forego the proposed deal or
transaction or to consummate the deal or transaction instead with another firm,
company, business, partnership or enterprise;

 

(ii)               hire, solicit,
recruit, induce, procure or attempt to hire, solicit, recruit, induce or
procure, directly or indirectly, any person who is an employee of the Company
or a Conbulk Group Affiliate or who was such an employee at any time during the
final year of the Consultant’s engagement;

 

(iii)              assist in hiring any
such person by any other individual, sole proprietorship, firm, company,
business, partnership, or other enterprise; or

 

(iv)              encourage any such
person to terminate his or her employment, without the express written consent
of the Company.

 

(c)               The Consultant
recognizes that due to the nature of its work it has an increased obligation of
good faith. More specifically:

 

(i)            No publications,
conferences, declarations, etc., having to do with the Company or the Conbulk
Group Affiliates or any other related companies shall be made by the 

 

5

 

Consultant
without the previous written permission of the Board or the Executive Committee
unless in the ordinary course of business and in order to further the Company’s
goals;

 

(ii)           The Consultant shall
handle with honesty and care all monetary sums, titles, checks, etc., that
would come to its possession or administration in its capacity as a Consultant
to the Company;

 

(iii)          The Consultant must
at all times behave in a manner that shall not offend the business image and
fame of the Company or the Conbulk Group Affiliates;

 

(iv)          The Consultant shall
inform the appropriate officers of the Company about any illegal act or
irregularity that comes to its actual knowledge;

 

(v)           The Consultant must
abstain from any act which would create, or that could be interpreted to
create, liens towards third parties to the detriment of the interests of the
Company or the Conbulk Group Affiliates; and

 

(vi)          The same obligations
of the Consultant apply towards the Conbulk Group Affiliates as well as the
Company, whether expressly spelled out above or not.

 

(d)               The Consultant acknowledges
that the foregoing limitations are reasonable under the circumstances.

 

(e)               The Consultant agrees not to take personal
advantage of any business opportunities relating to the ownership or operation
of container vessels in the feeder sector, or such other shipping sector in
which the Company or the Conbulk Group Affiliates may then be engaged, which
arise during the Term of this Agreement which could reasonably be expected to
be business opportunities that the Company or a Conbulk Group Affiliate might
pursue.

 

12.           Assignments. 
This Agreement and the Consultant’s rights and obligations hereunder,
may not be assigned by the Consultant.  Any
purported assignment in violation hereof shall be null and void. This
Agreement, and the Company’s rights and obligations hereunder, may not be
assigned by the Company, it being understood that the Company’s rights extend
to the Conbulk Group Affiliates; provided, however, that in the event of any
sale, transfer or other disposition of all or substantially all of the Company’s
assets and business, whether by merger, consolidation or otherwise, the Company
shall assign this Agreement and its rights hereunder to the successor to its
assets and business.

 

13.           Notices. 
Every notice, request, demand or other communication under this
Agreement shall:

 

(a) be in writing delivered personally,
by courier or served through a process server;

 

(b) be deemed to have been when
delivered personally or through courier or served at the address below; and

 

(c) be sent:

 

6

 

(i) If to the Company, to:

 

Conbulk Corporation

c/o Palmosa Shipping Corporation

107 A. Papanastasiou Street

Kastella-Piraeus, Greece 18533

Attn: Stefanos Kardamakis

email: skardamakis@conbulk.gr

 

with a copy to:

 

Seward & Kissel LLP

One Battery Park Plaza

New York, New York 10004

Attn: Derick Betts, Esq.

Facsimile:  212-480-8421

email: betts@sewkis.com

 

(ii) If to the Consultant, to:

 

Raven International Corp.

c/o Seward & Kissel LLP

One Battery Park Plaza

New York, New York 10004

Attn: Derick Betts, Esq.

Facsimile:  212-480-8421

email: betts@sewkis.com

 

or to such other person or address, as is
notified by the relevant party to the other parties to this Agreement and such
notification shall not become effective until notice of such change is actually
received by the other parties. Until such change of person or address is
notified, any notification to the above addresses are agreed to be validly
effected for the purposes of this Agreement.

 

14.           Amendments to this
Agreement.  No modification, alteration or waiver of any
of the provisions of this Agreement shall be effective unless in writing and
signed on behalf of each of the parties. The headings in this Agreement do not
form part thereof and have been included for convenience only.

 

15.           Rights
under the Law. Nothing in this Agreement will deprive any party from having or
exercising any of its rights under the law, unless they may be lawfully waived
and have been waived by the terms of this Agreement.

 

16.           Counterparts. This Agreement may
be executed by the parties hereto in counterparts, each of which when executed
shall be deemed to be an original and all of such counterparts together shall
constitute but one and the same instrument.

 

17.           Effectiveness. This Agreement will only come into
effect immediately after the consummation of the merger (the “Merger”) of the
Company and Arcade Acquisition Corp., a Delaware corporation, (the “Effective
Date”).  If the Merger shall not have
occurred prior to 11:59 p.m. New York time, on January 30, 2009, this
Agreement shall be null and void and shall have no further affect on any party
hereto.

 

7

 

18.           Entire Agreement. 
This Agreement constitutes the entire and only agreement between the
parties in relation to its subject matter and replaces and extinguishes all
prior agreements, undertakings, arrangements, understandings or statements of
any nature made by the parties or any of them whether oral or written with
respect to such subject matter.

 

19.           Governing Law and
Jurisdiction.

 

(a)           This Agreement shall
be governed by and construed in accordance with the law of the State of New
York.

 

(b)           The parties hereby
irrevocably submit to the exclusive jurisdiction of the Courts of New York, NY,
USA, in connection with any dispute which may arise out of or is related to
this Agreement.

 

[Signature Page Follows]

 

8

 

AS WITNESS the parties signed the present
document the day and year first above written.

 

For and on behalf of,

 

CONBULK CORPORATION

 

	
   

  	
   

  
	
  By:

  	
   

  
	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  [                                                     ]

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  
	
  Title:

  	
   

  

 

 

[Signature page to [                       ]
Consulting Agreement]

 

9Exhibit
10.18

 

CONBULK
CORPORATION

 

2008
INCENTIVE PLAN

 

1.             Purpose.  Conbulk Corporation, a
Marshall Islands corporation (“Conbulk”), desires to attract and retain
the best available talent and to encourage the highest level of
performance.  This Conbulk Corporation
2008 Incentive Plan (the “Plan”) is intended to contribute significantly
to the attainment of these objectives by affording Eligible Persons (as defined
in Section 3) the opportunity to acquire a proprietary interest in Conbulk
through the grant of (i) stock options (“Options”) to purchase
shares of common stock, $.0001 par value per share, of Conbulk (the “Common
Stock”), (ii) restricted shares of Common Stock (“Restricted Stock”)
and (iii) stock appreciation rights to receive a payment in Common Stock
(or, if permitted by Section 409A of the Internal Revenue Code of 1986, as
amended (the “Code”) without causing the stock appreciation rights to be
treated as deferred compensation subject thereto, cash) equal to the amount of
the excess of the Fair Market Value of the Common Stock on the date of exercise
over the Fair Market Value of the Common Stock on the date of grant (“Stock
Appreciation Rights”; and collectively with Options and Restricted Stock, “Awards”,
and each individually an “Award”).

 

2.             Administration.

 

(a)           The Plan shall be administered by a committee (the “Committee”)
of not fewer than three members of the board of directors of Conbulk (the “Board”)
who shall be appointed by and serve at the pleasure of the Board. To the extent
necessary to comply with Rule 16b-3 under the Securities Exchange Act of
1934, as amended (the “Exchange Act”), each member of the Committee shall be a “nonemployee
director” within the meaning of Rule 16b-3, and, to the extent necessary
to exclude Options granted under the Plan from the calculation of the income
tax deduction limit under Section 162(m) of the Code, each member of
the Committee shall be an “outside director” within the meaning of Section 162(m) of
the Code and Treasury Regulations promulgated thereunder. A majority of the
Committee shall constitute a quorum.

 

(b)           The Committee shall have and may exercise all of the powers of the
Board under the Plan, other than the power to appoint a director to Committee
membership. The Committee shall have plenary authority in its discretion,
subject to and consistent with the express provisions of the Plan, to direct
the grants of Awards; to determine the numbers of shares of Common Stock
covered by each Award, the purchase price, if any, of the Common Stock covered
by each Award, the individuals to whom an Award is given (each a “Grantee”),
the time or times at which the Award shall be granted or may vest; to
prescribe, amend and rescind rules and regulations relating to the Plan,
including, without limitation, such rules and regulations as it shall deem
advisable so that transactions involving Awards may qualify for exemption under
such rules and regulations as the Securities and Exchange Commission may
promulgate from time to time exempting transactions from Section 16(b) of
the Exchange Act; to determine the terms and provisions of, and to cause the
Company (as defined in Section 3) to enter into, agreements with Grantees
in connection with Awards under the Plan (“Award Agreements”), which
Award Agreements may vary from one another, as the Committee shall deem
appropriate; to amend any Award Agreement from time to time with the consent of
the Grantee; and to make 

 

 

all other determinations the Committee may
deem necessary or advisable for the administration of the Plan. Every action,
decision, interpretation or determination made by the Committee or the Board
with respect to the application or administration of the Plan shall be
conclusive and binding upon the Company and any person having or claiming any interest
pursuant to any Award granted under the Plan.

 

(c)           Except as otherwise required by law, no member of the Board or the
Committee shall be liable for anything whatsoever in connection with the
administration of the Plan other than such member’s own willful
misconduct.  Under no circumstances shall
any member of the Board or the Committee be liable for any act or omission of
any other member of the Board or the Committee. The Board and the Committee
shall be entitled to rely, in the performance of its functions with respect to
the Plan, upon information and advice furnished by Conbulk’s officers, Conbulk’s
accountants, Conbulk’s legal counsel and any other party the Board and
Committee deems necessary. No member of the Board or Committee shall be liable
for any action taken or not taken in reliance upon any such advice.

 

(d)           Each Award under the Plan shall be deemed to have been granted when the
determination of the Committee with respect to such Award is made. Once an
Award has been granted, all conditions and requirements of the Plan with
respect to such Award shall be deemed conditions on exercise, not grant.

 

(e)           Notwithstanding the forgoing or any other provision of the Plan, the
Committee shall have no authority to issue Awards under the Plan to persons
subject to U.S. income tax under terms and conditions which would cause such
Awards to be considered nonqualified “deferred compensation” subject to the
provisions of Code Section 409A, including by way of example but not
limitation, no Options or Stock Appreciation Rights shall be issued with an
exercise price below Fair Market Value and all Restricted Stock shall be issued
and reported as income to the Grantee no later than two and one half (21⁄2)
months after the end of the calendar year in which the right to the shares
covered by such Award becomes vested.

 

3.             Eligible Persons. 
Subject in the case of ISOs to Section 7(g)(i), Awards may be
granted to employees, officers and directors of, and consultants and advisors
to, Conbulk and its Affiliates (as defined in Section 19) (collectively,
with Conbulk, the “Company”)(such persons, “Eligible Persons”).
In determining the persons to whom Awards shall be made and the number of
shares to be covered by each Award, the Committee shall take into account the
duties of the respective persons, their present and potential contributions to
the success of the Company and other factors deemed relevant by the Committee
in connection with accomplishing the purposes of the Plan.

 

4.             Share Limitations under the Plan.

 

(a)           Subject to adjustment as provided in Section 13 and the provisions
of this Section 4, a maximum of one million four hundred thousand
(1,400,000) shares of Common Stock shall be reserved for issuance pursuant to
Awards granted under the Plan. If an Award is cancelled, forfeited or expires
without being exercised, or if Restricted Stock is repurchased by the Company
as provided in Section 8(d), the shares of Common Stock subject to the
Award shall be available for additional grants under the Plan.  If an Option is exercised in whole or in 

 

 

part by a Grantee tendering shares of Common
Stock which such Grantee has owned for not less than six (6) months, or if
any shares are withheld in connection with the exercise of an Option to satisfy
the Grantee’s tax liability in connection therewith, the full number of shares
in respect of which the Option has been exercised shall be applied against the
limit set forth in this Section 4(a).

 

(b)           Conbulk may grant Options under the Plan in substitution for options
held by persons of another corporation who become Eligible Persons of Conbulk
or an Affiliate as the result of a merger or consolidation of the employing
corporation with Conbulk or an Affiliate, or as a result of the acquisition by
Conbulk or an Affiliate of property or stock of the employing corporation.  Substitute Options shall be granted on such
terms as the Committee considers appropriate in the circumstances. Substitute
Options shall be in addition to the limit set forth in Section 4(a).

 

(c)           Subject to adjustment as provided in Section 13 and the provisions
of this Section 4, the maximum aggregate number of shares of Common Stock
issuable pursuant to Awards that a Grantee may be granted within one fiscal
year of Conbulk shall be five hundred thousand (500,000).

 

(d)           The aggregate numbers set forth in this Section 4 shall be subject
to adjustment as provided in Section 13.

 

5.             Term of Award.  The
term of each Award shall be fixed by the Committee and specified in the
applicable Award Agreement, but in no event shall it be more than ten years
from the date of grant.  Subject in the
case of ISOs to Section 7(g), the term of an Award may be extended from
time to time by the Committee, provided that no extension shall extend the term
beyond ten years from the date of grant.

 

6.             Vesting.  The Committee shall determine
the vesting schedule applicable to a particular Award and specify the vesting
schedule in the applicable Award Agreement. 
Notwithstanding the foregoing the Committee may accelerate the vesting
of an Award at any time.

 

7.             Options.

 

(a)           Type of Options. 
Options granted under the Plan may be either incentive stock options (“ISOs”)
intended to meet the requirements of Code Section 422 or nonqualified
stock options (“NSOs”) which are not intended to meet such Code
requirements.

 

(b)           Rights to Purchase.  The
Committee may grant Options to Eligible Persons, in such amounts, and subject
to such terms and conditions as the Committee may determine in its sole
discretion, including such restrictions on transferability and other
restrictions as the Committee may impose, which restrictions may lapse
separately or in combination at such times, under such circumstances, in such
installments, or otherwise, as the Committee shall determine.

 

(c)           Option Agreement.  The terms
and conditions of each Option shall be set forth in an Award Agreement (“Option
Agreement”) in the form approved by the Committee. 

 

 

Each Option Agreement shall, at a minimum,
specify (i) the number of shares of Common Stock subject to the Option, (ii) whether
the Option is intended to be an ISO or NSO, (iii) the provisions related
to vesting and exercisability of the Option, including the Option exercise
price, and (iv) that the Option is subject to the terms and provisions of
the Plan. Option Agreements may differ from one another.

 

(d)           Termination of Relationship to the Company.

 

i.              With respect to an Option granted to an
individual who is an employee of the Company at the time of Option grant,
unless the Option Agreement expressly provides to the contrary, (i) the
Option shall terminate immediately upon the Grantee’s termination of employment
for Cause (as defined in Section 19); (ii) subject in the case of
ISOs to Section 7(g), the Option shall terminate two years following the
Grantee’s termination of employment by reason of death or Disability (as
defined in Section 19) of the Grantee; (iii) subject in the case of
ISOs to Section 7(g), the Option shall terminate two years after
Retirement (as defined in Section 19); (iv) the Option shall terminate
three months after the Grantee’s termination of employment for any other
reason; and (v) vesting of the Option will terminate in all cases
immediately upon termination of employment. 
In no event shall an Option remain exercisable beyond the expiration
date specified in the applicable Option Agreement.  An Option Agreement may contain such
provisions as the Board shall approve with reference to the determination of
the date employment terminates for purposes of the Plan and the effect of
leaves of absence, which provisions may vary from one another.

 

ii.             With respect to an Option granted to an
individual who is not an employee of the Company at the time of Option grant,
the Board shall determine and specify in the applicable Option Agreement the
consequences, if any, of the termination of the Grantee’s relationship with the
Company.

 

(e)           Option Price. 
Subject in the case of ISOs to Section 7(g), the exercise price per
share of Common Stock covered by an Option shall be established by the
Committee; provided, however, that (a) the exercise price per share for
any Option shall not be less than one-hundred-percent (100%) of the Fair Market
Value of a share of Common Stock on the date the Option is granted and (b) no
ISO granted to a 10% Shareholder (as defined in Section 7(g)) shall have
an exercise price per share less than one hundred ten percent (110%) of the
Fair Market Value of a share of Common Stock on the date the ISO is
granted.  Notwithstanding the foregoing,
an Option (whether an ISO or NSO) may be granted with an exercise price lower
than the minimum exercise price set forth above if such Option is granted
pursuant to an assumption or substitution for another option in a manner
qualifying under the provisions of Section 424(a) of the Code.

 

(f)            No Stockholder Rights.  No
Grantee shall have the rights of a stockholder with respect to shares covered
by an Option until such person becomes the holder of record of such shares.

 

 

(g)           ISO Provisions.

 

i.              Employment Requirement; Termination of
Employment, Death or Disability.  ISOs may only be awarded to employees of
Conbulk or a corporation which, with respect to Conbulk, is a “parent
corporation” or “subsidiary corporation” within the meaning of Code Sections
424(e) and (f).  No ISO may be
exercised unless, at the time of such exercise, the Grantee is, and has been
continuously since the date of grant of his or her ISO, employed by the
Company, except that:

 

(1)   an ISO may be exercised within the period of three months after the
date the Grantee ceases to be an employee of the Company (or within such lesser
period as may be specified in the applicable Option Agreement); provided, that
the Option Agreement may designate a longer exercise period and that the
exercise after such three-month period shall be treated as the exercise of a
NSO under the Plan;

 

(2)   if the Grantee dies while in the employ of the Company, or within three
months after the Grantee ceases to be such an employee, the ISO may be
exercised by the person to whom it is transferred by will or the laws of
descent and distribution within the period of one year after the date of death
(or within such lesser period as may be specified in the applicable Option
Agreement); provided, that the Option Agreement may designate a longer exercise
period, in which case the exercise after such one-year period shall be treated
as the exercise of a NSO under the Plan; and

 

(3)   if while in the employ of the Company the Grantee becomes disabled
within the meaning of Section 22(e)(3) of the Code or any successor
provisions thereto, the ISO may be exercised within the period of one year
after the date the Grantee ceases to be such an employee because of such
disability (or within such lesser period as may be specified in the applicable
Option Agreement); provided, that the Option Agreement may designate a longer
exercise period, in which case the exercise after such one-year period shall be
treated as the exercise of a NSO under the Plan.

 

For all purposes of the Plan and any ISO granted
hereunder, “employment” shall be defined in accordance with the provisions of Section 1.421-1(h) of
the Income Tax Regulations (or any successor regulations).  Notwithstanding the foregoing provisions, no
ISO may be exercised after its expiration date.

 

ii.             10% Shareholders.  In
the case of an individual who at the time an ISO is granted owns stock
possessing more than 10% of the total combined voting power of all classes of
the stock of Conbulk or of a parent or subsidiary corporation of Conbulk (a “10%
Shareholder”), (i) the Option exercise price of any ISO granted to
such person shall in no event be less than 110% of the Fair Market Value of the
Common Stock on the date the ISO is granted and (ii) the term of an ISO
granted to such person may not exceed five years from the date of grant.

 

iii.            $100,000 Limit.  The
aggregate Fair Market Value (determined at the time an ISO is granted) of the
Common Stock covered by ISOs exercisable for the first time by an employee
during any calendar year (under all plans of the Company) may not exceed
$100,000.

 

 

iv.            Options Which Do Not Satisfy ISO Requirements.  To
the extent that any Option which is issued under the Plan with the intention of
its being an ISO exceeds the limit set forth in paragraph (g) or otherwise
does not comply with the requirements of Code Section 422, it shall be
treated as a NSO.

 

(h)           Cancellation and New Grant of Options, Etc. The Committee shall have the authority to
effect, at any time and from time to time, with the consent of the affected
Grantees, (i) the cancellation of any or all outstanding Options under the
Plan and the grant in substitution therefor of new Options under the Plan
covering the same or different numbers of shares of Common Stock and having an
Option exercise price per share which may be lower or higher than the exercise
price per share of the cancelled Options or (ii) the amendment of the
terms of any and all outstanding Options under the Plan to provide an Option
exercise price per share which is higher or lower than the then-current
exercise price per share of such outstanding Options; provided, however, that
the Committee shall not take any of the actions described in (i) or (ii) hereof
without receiving the approval of Conbulk’s stockholders. The provisions of
this Section 7(h) may not be altered or amended without stockholder
approval.

 

(j)            Buyout
Provisions.  The Committee may at any time offer to buy
out for a payment in cash or shares, an Option previously granted, based on
such terms and conditions as the Committee shall establish and communicate to
the Grantee at the time that such offer is made.

 

(i)            No Deferral Feature.  No
Option Agreement shall provide for any deferral feature with respect to an
Option constituting a deferral of compensation under Section 409A of the
Code.

 

8.             Restricted Stock.

 

(a)           Rights to Purchase.  The
Committee may grant Restricted Stock to Eligible Persons, in such amounts, and
subject to such terms and conditions as the Committee may determine in its sole
discretion, including such restrictions on transferability and other
restrictions as the Committee may impose, which restrictions may lapse
separately or in combination at such times, under such circumstances, in such
installments, or otherwise, as the Committee shall determine.  Grantees shall not be required to pay cash or
other consideration for Restricted Stock granted hereunder, other than in the
form of services performed under such terms and conditions as the Committee may
determine.

 

(b)           Restricted Stock Grant Agreement. 
Restricted Stock shall be granted under an Award Agreement (“Restricted
Stock Grant Agreement”) and shall be evidenced by certificates registered
in the name of the Grantee and bearing an appropriate legend referring to the
terms, conditions, and restrictions applicable to such Restricted Stock.  The Company may retain physical possession of
any such certificates, and the Company may require a Grantee awarded Restricted
Stock to deliver a stock power to the Company, endorsed in blank, relating to
the Restricted Stock for so long as the Restricted Stock is subject to a risk
of forfeiture.

 

(c)           Termination of Employment Prior to Vesting of
Restricted Stock.  Immediately upon the termination of the
Grantee’s status as an employee, officer or director of, 

 

 

or consultant or advisor to, the Company for any reason other than the
death or Disability of the Grantee, Restricted Stock granted to such Grantee
that has not vested prior to such time may no longer vest, and Grantee shall
forfeit all rights (and the Company shall have no further obligations) with
respect to such Restricted Stock. In the event of the death or Disability of a
Grantee, the Award shall immediately vest in full.

 

(d)           Repurchase Right. 
Unless the Committee determines otherwise, the Restricted Stock Grant
Agreement shall grant the Company the right to repurchase the Restricted Stock
upon the termination of the Grantee’s status as an employee, officer or
director of, or consultant or advisor to, the Company for Cause.  The purchase price for the Restricted Stock
repurchased by the Company pursuant to such repurchase right and the rate at
which such repurchase right shall lapse shall be determined by the Committee in
its sole discretion, and shall be set forth in the Restricted Stock Grant
Agreement.

 

(e)           Other Provisions.  The
Restricted Stock Grant Agreement shall contain such other terms, provisions and
conditions not inconsistent with the Plan as may be determined by the Committee
in its sole discretion.

 

(f)            Rights as a Shareholder.  The
holder of Restricted Stock shall have rights equivalent to those of a
stockholder and shall be a stockholder when the Restricted Stock grant is
entered upon the records of the duly authorized transfer agent of Conbulk.

 

(g)           No Deferral Provisions.  A
Restricted Stock Award shall not provide for any deferral of compensation
recognition after vesting with respect to Restricted Stock which would cause
the Award to constitute a deferral of compensation subject to Section 409A
of the Code.

 

9.             Stock Appreciation Rights.

 

(a)           Rights to Purchase.  The
Committee may grant Stock Appreciation Rights to Eligible Persons, in such
amounts, and subject to such terms and conditions as the Committee may
determine in its sole discretion, including such restrictions on
transferability and other restrictions as the Committee may impose, which
restrictions may lapse separately or in combination at such times, under such
circumstances, in such installments, or otherwise, as the Committee shall
determine.  No Stock Appreciation Rights shall
be granted under the term and conditions which would cause such Rights to be
treated as deferred compensation subject to Section 409A of the Code.  Grantees shall not be required to pay cash or
other consideration for Stock Appreciation Rights granted hereunder, other than
in the form of services performed under such terms and conditions as the
Committee may determine.

 

(b)           Stock Appreciation Rights Agreement. 
Stock Appreciation Rights shall be granted under an Award Agreement (a “Stock
Appreciation Rights Agreement”).

 

(c)           Termination of Employment Prior to Vesting of
Stock Appreciation Rights.  Immediately upon the termination of the
Grantee’s status as an employee, officer or director of, or consultant or
advisor to, the Company for any reason other than the death or Disability of
the Grantee, Stock Appreciation Rights granted to such Grantee that have not
vested prior to such time may no longer vest, and the Grantee shall forfeit all
rights (and the 

 

 

Company shall have no further obligations)
with respect to such Stock Appreciation Rights. 
In the event of the death or Disability of the Grantee, the Grantee’s
Stock Appreciation Rights shall immediately vest in full.

 

(d)           Other Provisions.  The
Stock Appreciation Rights Agreement shall contain such other terms, provisions
and conditions not inconsistent with the Plan as may be determined by the
Committee in its sole discretion.

 

(e)           Rights as a Shareholder.  The
Grantee of an Award of Stock Appreciation Rights shall have none of the rights
of a shareholder with respect to the Stock Appreciation Rights, until and
unless shares of Common Stock are actually issued with respect to the Stock
Appreciation Rights.

 

10.           Exercise of Awards.

 

(a)           An Award other than a Restricted Stock Award may be exercised at any
time and from time to time, in whole or in part, as to any or all full shares
as to which such Award is then exercisable. 
An Award may not be exercised with respect to a fractional share. A
Grantee (or other person who, pursuant to Section 11, may exercise the
Award) shall exercise the Award by delivering to Conbulk at the address
provided in the Award Agreement a written, signed notice of exercise, stating
the number of shares of Common Stock with respect to which the exercise is
being made, indicating whether the Grantee wishes to be paid in cash or Common
Stock, if applicable, and, if the Award is an Option, satisfying the
requirements of paragraph (b) of this Section 10.  Upon receipt by Conbulk of any notice of
exercise, the exercise of the Award as set forth in that notice shall be irrevocable.

 

(b)           Upon exercise of an Option, the Grantee shall pay to Conbulk the Option
exercise price per share of Common Stock multiplied by the number of full
shares as to which the Option is then being exercised.  A Grantee may pay the Option exercise price
by tendering or causing to be tendered to Conbulk cash, by delivery or deemed
delivery of shares of Common Stock owned by the Grantee for at least six months
preceding the date of exercise of the Option (or such shorter or longer period
as the Committee may approve or require from time to time) having a Fair Market
Value equal to the exercise price or other property permitted by law and
acceptable to the Board or Committee, or by any other means which the Board or
Committee determines are consistent with the purpose of the Plan and with
applicable laws and regulations (including, without limitation, the provisions
of Rule 16b-3 and Regulation T promulgated by the Federal Reserve Board).

 

(c)           The Company shall, in its sole discretion, take any action reasonably
believed by it to be necessary to comply with any local, state or federal tax
laws relating to the reporting or withholding of taxes.  In the event a Grantee has exercised an
Award, the Grantee shall, upon notification of the amount due and prior to or
concurrently with delivery of the certificate representing the shares as to
which the Award has been exercised if the Grantee is entitled to receive
shares, or upon exercise of the Award if the Grantee is not entitled to receive
shares, promptly pay or cause to be paid the amount determined by the Company
as necessary to satisfy all applicable tax withholding requirements.  A Grantee may satisfy his or her tax
withholding requirement in any manner satisfactory to the Company.

 

 

(d)           Any certificates representing the shares as to which an Award has been
exercised shall bear an appropriate legend setting forth the restrictions
applicable to such shares, if any.

 

11.           Nontransferability.

 

(a)           Except as provided in paragraph (b), Awards granted under the Plan
shall not be assignable or transferable other than by will or the laws of
descent and distribution and Options may be exercised during the lifetime of
the Grantee only by the Grantee or by the Grantee’s guardian or legal
representative.  In the event of any
attempt by a Grantee to transfer, assign, pledge, hypothecate or otherwise
dispose of an Award or any right thereunder, except as provided for herein, or
in the event of the levy of any attachment, execution or similar process upon
the rights or interest hereby conferred, Conbulk may terminate the Award
(making such Award null and void) or repurchase the Restricted Stock as
provided in Section 8(d) by payment and notice to the Grantee.

 

(b)           Notwithstanding paragraph (a), if (and on the terms) so provided in the
applicable Option Agreement, a Grantee may transfer a NSO, by gift or a
domestic relations order, to a Family Member of the Grantee (as defined in Section 19).  If a NSO is transferred in accordance with
this paragraph, the Option shall be exercisable solely by the transferee, but
the determination of the exercisability of the Option shall be based solely on
the activities and state of affairs of the Grantee.  Thus, for example, if, after a transfer with
respect to an Option, a Grantee ceases to be an employee of the Company, such
termination shall trigger the provisions of Section 7(d).  Conversely, if after a transfer a transferee
ceases to be an employee of the Company, such termination shall not trigger the
provisions of Section 7(d).

 

12.           Compliance with Law; Registration of Shares.

 

(a)           The Plan and any Award hereunder shall be subject to all applicable
laws, rules, and regulations of any applicable jurisdiction or authority or
agency thereof and to such approvals by any regulatory or governmental agency
which, in the opinion of the Company’s counsel, may be required or appropriate.

 

(b)           Notwithstanding any other provision of the Plan or Award Agreements
made pursuant hereto, the Company shall not be required to issue or deliver any
certificate or certificates for shares of Common Stock under the Plan prior to
fulfillment of all of the following conditions:

 

i.              Effectiveness of any registration or other
qualification of such shares of Conbulk under any law or regulation of any
applicable jurisdiction or authority or agency thereof which the Board shall,
in its absolute discretion or upon the advice of counsel, deem necessary or
advisable; and

 

ii.             Grant of any other consent, approval or
permit from any applicable jurisdiction or authority or agency thereof or
securities exchange or quotation system which the Board shall, in its absolute
discretion or upon the advice of counsel, deem necessary or advisable.

 

 

The Company shall use all reasonable efforts to
obtain any consent, approval or permit described above; provided, however, that
except to the extent as may be specified in an Award Agreement with respect to
any particular grant, the Company shall be under no obligation to register or
qualify any shares of Common Stock subject to an Award under any federal or
state securities law or on any exchange.

 

13.           Adjustments upon Changes in Capitalization.

 

(a)           In the event that Conbulk or the division, subsidiary or other
Affiliate for which a Grantee performs services is sold (including a stock or an
asset sale), spun off, merged, consolidated, reorganized or liquidated, the
Board may determine that (i) any Award shall be assumed, or a
substantially equivalent Award shall be substituted, by an acquiring or
succeeding entity (or an affiliate thereof) on such terms as the Board
determines to be appropriate;  (ii) upon
written notice to the Grantee, provide that the Award shall terminate
immediately prior to the consummation of the transaction unless exercised by
the Grantee within a specified period following the date of the notice;  (iii) in the event of a sale or similar
transaction under the terms of which holders of Common Stock receive a payment
for each share of Common Stock surrendered in the transaction (the “Sales
Price”), make or provide for a payment to each Grantee equal to the amount
by which (A) the product of the Sales Price multiplied by the number of
shares of Common Stock subject to the Award (to the extent such Award is then
exercisable) exceeds (B) the aggregate exercise price, if any, for all
such shares of Common Stock;  or (iv) may
make such other equitable adjustments as the Board deems appropriate.

 

(b)           In the event of any stock dividend or split, recapitalization,
combination, exchange or similar change affecting the Common Stock, or any
other increase or decrease in the number of issued shares of Common Stock
effected without receipt of consideration by Conbulk, the Committee shall make
any or all of the following adjustments as it deems appropriate to equitably
reflect such event:  (i) adjust the
aggregate number of shares (or such other security as is designated by the
Board) which may be acquired pursuant to the Plan, (ii) adjust the
purchase price to be paid for any or all such shares subject to the then
outstanding Awards, (iii) adjust the number of shares of Common Stock (or
such other security as is designated by the Board) subject to any or all of the
then outstanding Awards and (iv) make any other equitable adjustments or
take such other equitable action as the Board, in its discretion, shall deem
appropriate.  For purposes hereof, the
conversion of any convertible securities of Conbulk shall not be deemed to have
been “effected without receipt of consideration.”

 

(c)           Any and all adjustments or actions taken by the Board pursuant to this Section 13
shall be conclusive and binding for all purposes.

 

14.           No Right to Continued Employment or
Consulting Engagement.  Neither the Plan nor any action taken
hereunder shall be construed as giving any employee or any independent contractor
any right to continue in the employ of or to be engaged as an independent
contractor by the Company or affect the right of the Company to terminate such
person’s employment or other relationship with the Company at any time.

 

15.           Amendment; Early Termination. 
Subject to Section 7(h), the Board may at any time and from time to
time alter, amend, suspend or terminate the Plan in whole or in part; 

 

 

provided, however, that no amendment
requiring stockholder approval by applicable law or by the rules of any
stock exchange, inter-dealer quotation system, or other market in which shares
of Common Stock are traded, shall be effective unless and until such
stockholder approval has been obtained in compliance with such rule or
law; and provided, further, that no such amendment shall materially adversely
affect the rights of a Grantee in any Award previously granted thereto under
the Plan without the Grantee’s written consent.

 

16.           Effective Date.  The
Plan shall be effective as of the date of its adoption by the Board (the “Effective
Date”), subject to the approval thereof by the stockholders of Conbulk
entitled to vote thereon within 12 months of such date.  In the event that such stockholder approval
is not obtained within such time period, the Plan and any Awards granted under
the Plan on or prior to the expiration of such 12 month period shall be void
and of no further force and effect.

 

17.           Termination of Plan. 
Unless terminated earlier by the Board in accordance with Section 16
above, the Plan shall terminate on, and no further Awards may be granted after,
the tenth anniversary of the Effective Date.

 

18.           Severability.  In
the event that any one or more provisions of the Plan or an Award Agreement, or
any action taken pursuant to the Plan or an Award Agreement, should, for any
reason, be unenforceable or invalid in any respect under the laws of the United
States, any state of the United States or any other applicable jurisdiction,
such unenforceability or invalidity shall not affect any other provision of the
Plan or Award Agreement, but in such particular jurisdiction and instance the
Plan and/or Award Agreement, as applicable, shall be construed as if such
unenforceable or invalid provision had not been contained therein or if the
action in question had not been taken thereunder.

 

19.           Definitions.

 

(a)           Affiliate.  As used herein, the term “Affiliate”
means any entity, whether or not incorporated, that directly or through one or
more intermediaries, controls, is controlled by or is under common control with
Conbulk.  In this regard, each of Conbulk
Management S.A., a Marshalls Island corporation to be engaged by Conbulk to
commercially and technically manage its vessels, and Conbulk Shipping S.A. and
Tsakos Shipping and Trading S.A., to which Conbulk Management S.A. will
subcontract the technical management of such vessels, and the Affiliates of any
of the foregoing,. shall be deemed an Affiliate of Conbulk.

 

(b)           Cause.  As used herein, the term “Cause”
when used herein in conjunction with termination of employment (or other
service relationship) means (i) if the Grantee is a party to an employment
or similar agreement with the Company which defines “cause” (or a similar
term), the meaning set forth in such agreement (other than death or
disability), or (ii) otherwise, termination by the Company of the
employment (or other service relationship) of the Grantee by reason of the
Grantee’s (1) intentional failure to perform reasonably assigned duties, (2) dishonesty
or willful misconduct in the performance of his duties, (3) involvement in
a transaction which is materially adverse to the Company, (4) breach of
fiduciary duty involving personal profit, (5) willful violation of any
law, rule, regulation or court order (other than misdemeanor traffic violations
and misdemeanors not involving misuse or misappropriation of 

 

 

money or property), (6) commission of an
act of fraud or intentional misappropriation or conversion of any asset or
opportunity of the Company, or (7) material breach of any provision of this
Plan, the Grantee’s Award Agreement or any other written agreement between the
Grantee and the Company, in each case as determined in good faith by the Board,
whose determination shall be final, conclusive and binding on all parties.

 

(c)           Disability. Except as otherwise specified in the applicable Award Agreement or in
the Grantee’s Employment Agreement with the Company, the Grantee shall be
deemed to have a “Disability” if the Grantee is unable to engage in any
substantial gainful activity by reason of any medically determined 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 twelve (12)
months, as reasonably determined by the Board in good faith and in its
discretion.

 

(d)           Fair Market Value.  As
used herein, the term “Fair Market Value” of a share of Common Stock as
of a specified date for the purposes of the Plan means the value of a share of
Common Stock determined consistent with the requirements of Sections 422 and
409A of the Code as follows: the arithmetic mean of the high and low sales
prices of a share of Common Stock on the date of grant on the principal
securities exchange (including the Nasdaq National Market) on which such shares
are traded on the relevant date for which Fair Market Value is being
determined, or if the shares are not traded on a securities exchange, Fair
Market Value shall be deemed to be the average of the high bid and low asked
prices of the Common Stock on the date of grant in the over-the-counter market
on which such shares are traded on the relevant date for which Fair Market
Value is being determined.  If the shares
are not publicly traded, Fair Market Value of a share of Common Stock (including,
in the case of any repurchase of shares, any distributions with respect thereto
which would be repurchased with the shares) shall be determined in good faith
by the Board or the Committee.  In no
case shall Fair Market Value be determined with regard to restrictions other
than restrictions which, by their terms, will never lapse.

 

(e)           Family Member of the Grantee.  As
used herein, the term “Family Member of the Grantee” means the Grantee’s
child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former
spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law,
daughter-in-law, brother-in-law, or sister-in-law, including adoptive
relationships, any person sharing the Grantee’s household (other than a tenant
or employee), a trust in which these persons have more than 50% of the
beneficial interest, a foundation in which these persons (or the Grantee)
control the management of assets, and any other entity in which these persons
(or the Grantee) own more than 50% of the voting interests.

 

(f)            Retirement. As used herein, the term “Retirement” means the termination of
employment of a Grantee who has attained the age of 62 and has at least 10
years of continuous service to the Company.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}]]