Document:

Exhibit 10.10 to Puradyn Filter Technologies Incorporated Form 10-K for fiscal year ended 12-31-2008

Exhibit 10.10

Extension of Note to Mr. Vittoria

 

Joseph V. Vittoria

1616 South Ocean Boulevard

Palm Beach, FL 33480

(T) 561 659 0860 (F) 561 659 1045

 

 

Puradyn Filter Technologies, Inc.

2017 High Ridge Road

Boynton Beach, FL 33426

Attention: Cindy L. Gimler, CFO

 

February 23, 2009

 

	
RE:
 	
Standby Commitment Agreement Amendment #11
 

 

Dear Ms. Gimler:

 

Pursuant to the Standby Commitment Agreement letters dated March 28, 2002, and March 14, 2003 and all Amendments thereto, I, Joseph Vittoria (the “Lending Party”), agree to extend the payback dates from December 31, 2009 to December 31, 2010.

 

All other terms defined in the original Standby Commitment Agreement letters and the Amendments thereto, not otherwise in conflict with this Amendment, shall remain in full force and effect.

 

IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed and delivered by the respective officers hereunto duly authorized on the date first written above.

 

 

	
 
 	
By: /s/
 	
Joseph V. Vittoria
 
	
 
 	
 
 	
Joseph V. Vittoria
 

 

 

 

Accepted and Agreed:

Puradyn Filter Technologies, Inc.

 

 

	
By: /s/
 	
Cindy Lea Gimler
 	
 

	
 
 	
Cindy L. Gimler, Chief Financial OfficerEXHIBIT 10.1

                             PASSUR AEROSPACE, INC.

                            2009 STOCK INCENTIVE PLAN
Section 1.

                                    PURPOSES

         The purposes of the PASSUR Aerospace, Inc. 2009 Stock Incentive Plan
(the "Plan") are (i) to enable PASSUR Aerospace, Inc., a New York corporation
(the "Company") and its Related Companies (as defined below) to attract, retain,
and reward directors, employees and consultants of the Company and its Related
Companies ("Eligible Persons") and strengthen the existing mutuality of
interests between such persons and the Company's shareholders by offering such
persons equity interests in the Company. For purposes of the Plan, a "Related
Company" means any corporation, partnership, joint venture or other entity in
which the Company owns, directly or indirectly, at least a 20% beneficial
ownership interest.

                                   Section 2.

                                 TYPES OF AWARDS

         2.1 Awards under the Plan may be in the form of (i) Stock Options; (ii)
Stock Appreciation Rights; (iii) Restricted Stock; (iv) Deferred Stock; and/or
(v) Bonus Stock (collectively, "Awards").

         2.2 An Eligible Person may be granted one or more types of Awards,
which may be independent or granted in tandem. If two Awards are granted in
tandem to an Eligible Person, the Eligible Person may exercise (or otherwise
receive the benefit of) one Award only to the extent he or she relinquishes the
tandem Award.

                                   Section 3.

                                 ADMINISTRATION

         3.1 The Plan shall be administered by the Company's Board of Directors
(the "Board") or such committee of directors as the Board shall designate (the
"Committee"), which shall consist of not less than two directors each of whom is
(a) a non-employee director, as such term is defined in Rule 16b-3 under the
Securities Exchange Act of 1934, as amended (the "Exchange Act") or any
successor rule, and (b) an outside director satisfying the requirements of
Section 162(m) of the Internal Revenue Code of 1986, as amended, or any
successor thereto (the "Code"). The members of the Committee shall serve at the
pleasure of the Board.

                                      -1-
<PAGE>

         3.2 The Committee shall have full authority and power, except with
respect to Awards to Outside Directors (as defined below), to grant Awards, to
interpret the Plan and to make such rules and regulations and establish such
practices and procedures as it deems appropriate for the administration of the
Plan. In particular, and without limiting its authority and powers, except with
respect to Awards to Outside Directors, the Committee shall have the authority
and power, subject to the Plan and applicable law and exchange requirements, to
determine:

         (a) whether and to what extent any Award or combination of Awards will
be granted hereunder, including whether any Awards will be granted in tandem
with each other;

         (b) the Eligible Persons to whom Awards will be granted;

         (c) the number of shares of the common stock of the Company (the
"Stock") to be covered by each Award granted hereunder subject to the
limitations contained herein;

         (d) the terms and conditions of any Award granted hereunder, including,
but not limited to, any vesting or other restrictions based solely on such
performance objectives (the "Performance Objectives");

         (e) the treatment of Awards upon an Eligible Person's retirement,
disability, death, termination for cause or other termination of employment or
other service;

         (f) the fair market value of the Stock on a given date pursuant to a
formula or otherwise; provided, however, that if the Committee fails to make a
determination, fair market value of the Stock on a given date shall be the
closing sale price on a given date, or if no such sale of Stock occurs on such
date, the next preceding date on which a sale occurred;

         (g) that an amount of any dividends declared with respect to the number
of shares covered by an Award (i) will be paid to the grantee currently or (ii)
will be deferred and deemed to be reinvested or (iii) will otherwise be credited
to the grantee, or that the grantee has no rights with respect to such
dividends;

         (h) whether, to what extent, and under what circumstances Stock and
other amounts payable with respect to an Award will be deferred either
automatically or at the election of a grantee, including providing for and
determining the amount (if any) of deemed earnings on any deferred amount during
any deferral period;

         (i) whether to amend the terms of any Award, prospectively or
retroactively; provided, however, that no amendment shall impair the rights of
the Award holder without his or her written consent; and

         (j) whether to substitute new Stock Options for previously granted
Stock Options, or for options granted under other plans or agreements, in each
case including previously granted options having higher option prices, and the
terms and conditions of such new Stock Options.

                                      -2-
<PAGE>

         3.3 The Committee shall have the right to designate Awards as
"Performance Awards." Awards so designated shall be granted and administered in
a manner designed to preserve the deductibility of the compensation resulting
from such Awards in accordance with Section 162(m) of the Code. The grant or
vesting of a Performance Award shall be subject to the achievement of
Performance Objectives established by the Committee based on one or more of the
following criteria, in each case applied to the Company on a consolidated basis
and/or to a business unit, and which the Committee may use as an absolute
measure, as a measure of improvement relative to prior performance, or as a
measure of comparable performance relative to a peer group of companies; sales,
operating profits, operating profits before interest expense and taxes, net
earnings, earnings per share, return on equity, return on assets, return on
invested capital, total shareholder return, cash flow, debt to equity ratio,
market share, stock price, economic value added, and market value added. The
Performance Objectives for a particular Performance Award relative to a
particular fiscal year shall be established by the Committee in writing no later
than 90 days after the beginning of such year. The Committee's determination as
to the achievement of Performance Objectives relating to a Performance Objective
shall be made in writing. The Committee shall have discretion to modify the
Performance Objective or vesting conditions of a Performance Award only to the
extent that the exercise of such discretion would not cause the Performance
Award to fail to qualify as "performance-based compensation" within the meaning
of Section 162(m) of the Code.

         3.4 The Committee, in its sole discretion, may delegate the Committee's
authority and duties under the Plan to the Chief Executive Officer of the
Company, or to any other employee or committee of employees of the Company, in
either case to the extent permitted under applicable law, under such conditions
and limitations as the Board or the Committee, as applicable, may from time to
time establish, except that only the Committee may make any determinations
regarding Awards to Eligible Individuals who are subject to Section 16 of the
Exchange Act or Section 162(m) of the Code or which by law may not be delegated.

         3.5 All determinations made by the Committee or the Board pursuant to
the provisions of the Plan shall be final and binding on all persons, unless and
except to the extent that, in the case of determinations by the Committee, the
Board shall have previously directed that all or specified types of
determinations of the Committee shall be subject to approval by the Board.

         3.6 Notwithstanding the foregoing and anything else in the Plan to the
contrary, the Board shall have sole authority and power to grant Awards under
the Plan to any Director of the Company who is not also an employee of the
Company or a Related Company (an "Outside Director"). With respect to Awards to
Outside Directors, (i) the Board shall have sole authority and power to make all
determinations contemplated by Section 3.2 above; to interpret the Plan; to
adopt, amend, and rescind administrative regulations to further the purposes of
the Plan; and to take any other action necessary to the proper operation of the
Plan, and (ii) references herein to the "Committee" shall be deemed to be
references to the "Board."

         3.7 Each Award granted under the Plan shall be evidenced by an Award
Agreement between the Company and the recipient of the Award.

                                      -3-
<PAGE>

                                   Section 4.

                              STOCK SUBJECT TO PLAN

         4.1 The total number of shares which may be issued pursuant to Awards
granted under the Plan shall be 500,000 shares of Stock (subject to adjustment
as provided below), all of which may be issued pursuant to Incentive Stock
Options (as defined below). Such shares may consist of authorized but unissued
shares or treasury shares. The exercise of a Stock Appreciation Right for cash
or the payment of any other Award in cash shall not count against this share
limit.

         4.2 To the extent a Stock Option or Stock Appreciation Right terminates
without having been exercised, or an Award terminates without the Award holder
having received payment of the Award, or shares awarded are forfeited, the
shares subject to such Award shall again be available for issuance in connection
with future Awards under the Plan. Shares of Stock equal in number to the shares
surrendered in payment of the exercise price, and shares of Stock which are
withheld in order to satisfy federal, state or local tax liability, shall not
count against the above limit, and shall again be available for grants under the
Plan.

         4.3 No employee shall be granted Stock Options or Stock Appreciation
Rights with respect to more than 100,000 shares of Stock under the Plan in any
fiscal year (subject to adjustments as provided in Section 4.4). No employee
shall be granted Performance Awards (other than Stock Options or Stock
Appreciation Rights) with respect to more than 100,000 shares of Stock under the
Plan in any fiscal year (subject to adjustment as provided in Section 4.4).

         4.4 In the event of any merger, reorganization, consolidation, sale of
substantially all assets, recapitalization, stock dividend, stock split,
spin-off, split-up, split-off, distribution of assets or other change in
corporate structure affecting the Stock, a substitution or adjustment, as may be
determined to be appropriate by the Board in its sole discretion, shall be made
in the aggregate and type number of shares reserved for issuance under the Plan,
the number and type of shares with respect to which Stock Options or Stock
Appreciation Rights may be granted to any individual in any fiscal year, the
number and type of shares subject to outstanding Awards and the amounts to be
paid by Award holders or the Company, as the case may be, with respect to
outstanding Awards; provided, however, that no such adjustment shall increase
the aggregate value of any outstanding Award.

                                   Section 5.

                                   ELIGIBILITY

         Each individual who is an Eligible Person may be granted Awards under
the Plan. Notwithstanding the foregoing, Incentive Stock Options may only be
granted to employees of the Company or any of its parent or subsidiary
corporations, as defined in Section 424 of the Code.

                                   Section 6.

                                  STOCK OPTIONS

         6.1 The Stock Options awarded under the Plan may be of two types: (i)
Incentive Stock Options within the meaning of Section 422 of the Code or any
successor provision thereto; and (ii) Non-Qualified Stock Options; provided,
that Eligible Persons who are not employees of the Company or any of its parent
or subsidiary corporations, as defined in Section 424 of the Code may only be
granted Non-Qualified Stock Options. To the extent that any Stock Option does
not qualify as an Incentive Stock Option, it shall constitute a Non-Qualified
Stock Option.

                                      -4-
<PAGE>

         6.2 Subject to the following provisions, Stock Options awarded to
Eligible Persons under the Plan shall be in such form and shall have such terms
and conditions as the Committee may determine:

         (a) The option price per share of Stock purchasable under a Stock
Option shall be determined by the Committee, and may not be less than the fair
market value of the Stock on the date of the award of the Stock Option.

(b) Unless determined otherwise by the Committee, the term of the Stock Option
shall be ten years from the date of grant, subject to earlier termination in the
event of termination of service.

         (c) Stock Options shall be exercisable at such time or times and
subject to such terms as shall be determined by the Committee. The Committee may
waive such exercise provisions or accelerate the exercisability of the Stock
Option at any time in whole or in part. Unless determined otherwise by the
Committee, all options shall vest 20% on each of the first, second, third,
fourth and fifth anniversaries of the grant.

         (d) Stock Options may be exercised in whole or in part at any time
during the option period by giving written notice of exercise to the Company
specifying the number of shares to be purchased, accompanied by payment of the
purchase price. Payment of the purchase price shall be made in such manner and
on such terms as the Committee may provide in the Award, which may include cash
(including cash equivalents), delivery of shares of Stock already owned by the
optionee or subject to Awards hereunder, "cashless exercise", any other manner
permitted by law determined by the Committee, or any combination of the
foregoing. If the Committee determines that a Stock Option may be exercised
using shares of Restricted Stock, then unless the Committee provides otherwise,
a number of the shares received upon such exercise equal to the number of shares
of restricted Stock so used shall be restricted in accordance with the original
terms of the Restricted Stock Award.

         (e) An optionee shall have neither rights to dividends nor other rights
of a shareholder with respect to shares subject to a Stock Option until the
optionee has given written notice of exercise and has paid for such shares.

         (f) Unless otherwise provided by the Committee solely with respect to
Non-Qualified Stock Options, (i) Stock Options shall not be transferable by the
optionee other than by will or by the laws of descent and distribution, and (ii)
during the optionee's lifetime, all Stock Options shall be exercisable only by
the optionee or by his or her guardian or legal representative.

         (g) Following the termination of an optionee's employment or other
service with the Company or a Related Company, the Stock Option shall be
exercisable to the extent provided by the Committee in the Award Agreement
evidencing such Stock Option and the Committee may provide that upon termination
of employment or other service all Stock Options are forfeited and are no longer
exercisable. The Committee may provide different post-termination exercise
provisions with respect to termination for different reasons.

                                      -5-
<PAGE>

         6.3 Notwithstanding the provisions of Section 6.2, no Incentive Stock
Option shall (i) have an option price which is less than 100% of the fair market
value of the Stock on the date of the award of the Incentive Stock Option, (ii)
be exercisable more than ten years after the date such Incentive Stock Option is
awarded, or (iii) be awarded more than ten years after the effective date of the
Plan specified in Section 19. No Incentive Stock Option granted to an employee
who owns more than 10% of the total combined voting power of all classes of
stock of the Company or any of its parent or subsidiary corporations, as defined
in Section 424 of the Code, shall (a) have an option price which is less than
110% of the fair market value of the Stock on the date of award of the Incentive
Stock Option or (b) be exercisable more than five years after the date such
Incentive Stock Option is awarded.

                                   Section 7.

                            STOCK APPRECIATION RIGHTS

         7.1 A Stock Appreciation Right awarded to an Eligible Person shall
entitle the holder thereof to receive payment of an amount, in cash, shares of
Stock or a combination thereof, as determined by the Committee, equal in value
to the excess of the fair market value of the number of shares of Stock as to
which the Award is granted on the date of exercise over an amount, which may not
be less than the fair market value of the Stock on the date of the award of the
Stock Appreciation Right, specified by the Committee. Any such Award shall be in
such form and shall have such terms and conditions as the Committee may
determine. The grant shall specify the number of shares of Stock as to which the
Stock Appreciation Right is granted.

                                   Section 8.

                                RESTRICTED STOCK

         Subject to the following provisions, all Awards of Restricted Stock to
Eligible Persons shall be in such form and shall have such terms and conditions
as the Committee may determine:

         (a) The Restricted Stock Award shall specify the number of shares of
Restricted Stock to be awarded, the price, if any, to be paid by the recipient
of the Restricted Stock and the date or dates on which, or the conditions upon
the satisfaction of which, the Restricted Stock will vest. The grant and/or the
vesting of Restricted Stock may be conditioned upon the completion of a
specified period of service with the Company or a Related Company, upon the
attainment of specified Performance Objectives or upon such other criteria as
the Committee may determine.

         (b) Stock certificates representing the Restricted Stock awarded to an
Eligible Person shall be registered in the person's name, but the Committee may
direct that such certificates be held by the Company on behalf of the person.
Except as may be permitted by the Committee, no share of Restricted Stock may be
sold, transferred, assigned, pledged or otherwise encumbered by the recipient
until such share has vested in accordance with the terms of the Restricted Stock
Award. At the time Restricted Stock vests, a certificate for such vested shares
shall be delivered to the recipient (or his or her designated beneficiary in the
event of death), free of all restrictions.

                                      -6-
<PAGE>

         (c) The Committee may provide that the Eligible Person shall have the
right to vote or receive dividends on Restricted Stock. Unless the Committee
provides otherwise, Stock received as a dividend on, or in connection with a
stock split of, Restricted Stock shall be subject to the same restrictions as
the Restricted Stock.

         (d) Except as may be provided by the Committee, in the event of a
recipient's termination of employment or other service before all of his or her
Restricted Stock has vested, or in the event any conditions to the vesting of
Restricted Stock have not been satisfied prior to any deadline for the
satisfaction of such conditions set forth in the Award, the shares of Restricted
Stock which have not vested shall be forfeited, and the Committee may provide
that (i) any purchase price paid by the recipient shall be returned to the
recipient or (ii) a cash payment equal to the Restricted Stock's fair market
value on the date of forfeiture, if lower, shall be paid to the recipient.

         (e) The Committee may waive, in whole or in part, any or all of the
conditions to receipt of, or restrictions with respect to, any or all of the
recipient's Restricted Stock, other than Performance Awards whose vesting was
made subject to satisfaction of one or more Performance Objectives (except that
the Committee may waive conditions or restrictions with respect to Performance
Awards if such waiver would not cause the Performance Award to fail to qualify
as "performance-based compensation" within the meaning of Section 162(m) of the
Code).

                                   Section 9.

                              DEFERRED STOCK AWARDS

         Subject to the following provisions, all Awards of Deferred Stock to
Eligible Persons shall be in such form and shall have such terms and conditions
as the Committee may determine:

         (a) The Deferred Stock Award shall specify the number of shares of
Deferred Stock to be awarded to any Eligible Person and the duration of the
period (the "Deferral Period") during which, and the conditions under which,
receipt of the Stock will be deferred. The Committee may condition the grant or
vesting of Deferred Stock, or receipt of Stock or cash at the end of the
Deferral Period, upon the attainment of specified Performance Objectives or such
other criteria as the Committee may determine.

         (b) Except as may be provided by the Committee, Deferred Stock Awards
may not be sold, assigned, transferred, pledged or otherwise encumbered during
the Deferral Period.

         (c) At the expiration of the Deferral Period, the recipient (or his or
her designated beneficiary in the event of death) shall receive (i) certificates
for the number of shares of Stock equal to the number of shares covered by the
Deferred Stock Award, (ii) cash equal to the fair market value of such Stock, or
(iii) a combination of shares and cash, as the Committee may determine.

                                      -7-
<PAGE>

         (d) In the event of a recipient's termination of employment or other
service before the Deferred Stock has vested, his or her Deferred Stock Award
shall be forfeited.

         (e) The Committee may waive, in whole or in part, any or all of the
conditions to receipt of, or restrictions with respect to, Stock or cash under a
Deferred Stock Award, other than with respect to Performance Awards (except that
the Committee may waive conditions or restrictions with respect to Performance
Awards if such waiver would not cause the Performance Award to fail to qualify
as "performance-based compensation" within the meaning of Section 162(m) of the
Code).

                                  Section 10.

                                  BONUS STOCK

         The Committee may award Bonus Stock to an Eligible Person subject to
such terms and conditions as the Committee shall determine, provided no person
who is the beneficial owner of 5% or more of the outstanding shares of the
Company shall be entitled to receive such an Award. The grant of Bonus Stock may
be conditioned upon the attainment of specified Performance Objectives or upon
such other criteria as the Committee may determine. The Committee may waive such
conditions in whole or in part other than with respect to Performance Awards
(except that the Committee may waive conditions or restrictions with respect to
Performance Awards if such waiver would not cause the Performance Award to fail
to qualify as "performance-based compensation" within the meaning of Section
162(m) of the Code). Unless otherwise specified by the Committee, no money shall
be paid by the recipient for Bonus Stock. Alternatively, the Committee may offer
Eligible Persons the opportunity to purchase Bonus Stock at a discount from its
fair market value. The Bonus Stock Award shall be satisfied by the delivery of
the designated number of shares of Stock which are not subject to restriction.

                                  Section 11.

                            ELECTION TO DEFER AWARDS

         Subject to compliance with applicable law, including, without
limitation, Section 409A of the Code, the Committee may permit an Eligible
Person to elect to defer receipt of an Award for a specified period or until a
specified event, upon such terms as are determined by the Board.

                                  Section 12.

                                 TAX WITHHOLDING

         12.1 Each employee shall, no later than the date as of which the value
of an Award first becomes includable in such person's gross income for tax
purposes, pay to the Company, or make arrangements satisfactory to the Committee
regarding payment of any federal, state, local or other taxes of any kind
required by law to be withheld with respect to the Award. The obligations of the
Company under the Plan shall be conditional on such payment or arrangements, and
the Company (and, where applicable, any Related Company), shall, to the extent
permitted by law, have the right to deduct any such taxes from any payment of
any kind otherwise due to the employee.

                                      -8-
<PAGE>

         12.2 To the extent permitted by the Committee, and subject to such
terms and conditions as the Committee may provide, an employee may elect to have
the withholding tax obligations, or any additional tax obligation with respect
to any Awards hereunder, satisfied by (i) having the Company withhold shares of
Stock otherwise deliverable to such person with respect to the Award (not in
excess of the statutory minimum withholding requirement) or (ii) delivering to
the Company shares of unrestricted Stock. Alternatively, the Committee may
require that a portion of the shares of Stock otherwise deliverable be applied
to satisfy the withholding tax obligations with respect to the Award.

                                  Section 13.

                            AMENDMENT AND TERMINATION

         The Board may discontinue the Plan at any time and may amend it from
time to time. No amendment or discontinuation of the Plan shall adversely affect
any Award previously granted without the Award holder's written consent.
Amendments may be made without shareholder approval except as required to
satisfy applicable law or exchange requirements, including Sections 162(m) or
422 of the Code.

                                  Section 14.

                                CHANGE OF CONTROL

         14.1 In the event of a Change of Control, unless otherwise determined
by the Committee at the time of grant or by amendment (with the holder's
consent, to the extent required hereunder) of such grant:

         (a) all outstanding Stock Options and all outstanding Stock
Appreciation Rights (including Limited Stock Appreciation Rights) awarded under
the Plan shall become fully exercisable and vested;

         (b) the restrictions and deferral limitations applicable to any
outstanding Restricted Stock and Deferred Stock Awards under the Plan shall
lapse and such shares and Awards shall be deemed fully vested; and

         (c) The Committee may, in its discretion and upon at least ten days
advance notice to the affected persons, cancel any outstanding Awards, and pay
to the holders thereof within five business days of such event, in cash, the
value of such Awards based upon the highest price per share of Company Common
Stock received or to be received by shareholders of the Company in connection
with the Change in Control (which in the case of Stock Options or Stock
Appreciation Rights shall be deemed to be equal to the difference, if any, of
such highest price and the exercise or base price thereof multiplied by the
number of shares of Stock subject thereto), provided that, with respect to any
Award that constitutes a deferral of compensation within the meaning of Section
409A of the Code that is so cancelled, settlement of such Award may only be
accelerated if such Change of Control constitutes a change in control event
within the meaning of Section 409A of the Code.

                                      -9-
<PAGE>

         14.2 A "Change of Control" shall be deemed to occur subsequent to the
date of the Plan on:

         (a) the date that any person or group deemed a person under Sections
3(a)(9) and 13(d)(3) of the Securities Exchange Act of 1934 (other than the
Company and its subsidiaries as determined immediately prior to that date) has
become the beneficial owner, directly or indirectly (with beneficial ownership
determined as provided in Rule 13d-3, or any successor rule, under the
Securities Exchange Act of 1934) of securities of the Company representing 25%
or more of the total combined voting power of all classes of stock of the
Company having the right under ordinary circumstances to vote at an election of
the Board, unless such person has acquired 80% or more of such securities
directly from the Company;

         (b) the date on which one-third or more of the members of the Board
shall consist or persons other than Current Directors (for these purposes, a
"Current Director" shall mean a member of the Board on the effective date of the
Plan, as well as any member of the Board whose nomination or election has been
approved by a majority of the Current Directors then on the Board);

         (c) consummation of a merger or consolidation of the Company with
another corporation where the Company is not the surviving entity and where (i)
the shareholders of the Company, immediately prior to the merger or
consolidation, would not beneficially own, immediately after the merger or
consolidation, shares entitling such shareholders to 50% or more of all votes
(without consideration of the rights of any class of stock to elect directors by
a separate class vote) to which all shareholders of the corporation issuing cash
or securities in the merger or consolidation would be entitled in the election
of directors, or (ii) where the members of the Board, immediately prior to the
merger or consolidation, would not, immediately after the merger or
consolidation constitute a majority of the Board of Directors of the corporation
issuing cash or securities in the merger; or

         (d) consummation of an agreement providing for the sale or disposition
of all or substantially all of the assets of the Company.

                                  Section 15.

                               GENERAL PROVISIONS

         15.1 Each Award under the Plan shall be subject to the requirement
that, if at any time the Company shall determine that (i) the listing,
registration or qualification of the Stock subject or related thereto upon any
securities exchange or under any state or federal law, or (ii) the consent or
approval of any government regulatory body or (iii) an agreement by the
recipient of an Award with respect to the disposition of Stock is necessary or
desirable (in connection with any requirement or interpretation of any federal
or state securities law, rule or regulation) as a condition of, or in connection
with, the granting of such Award or the issuance, purchase or delivery of Stock
thereunder, such Award shall not be granted or exercised, in whole or in part,
unless such listing, registration, qualification, consent, approval or agreement
shall have been effected or obtained free of any conditions not acceptable to
the Company.

                                      -10-
<PAGE>

         15.2 Nothing set forth in this Plan shall prevent the Company from
adopting other or additional compensation arrangements. Neither the adoption of
the Plan nor any Award hereunder shall confer upon any Award recipient any right
to continued employment or other service in any capacity.

         15.3 Determinations by the Committee under the Plan relating to the
form, amount, and terms and conditions of Awards need not be uniform, and may be
made selectively among persons who receive or are eligible to receive Awards
under the Plan, whether or not such persons are similarly situated.

         15.4 No member of the Board or the Committee, nor any officer or
employee of the Company acting on behalf of the Board or the Committee, shall be
personally liable for any action, determination or interpretation taken or made
with respect to the Plan, and all members of the Board or the Committee and all
officers or employees of the Company acting on their behalf shall, to the extent
permitted by law, be fully indemnified and protected by the Company in respect
of any such action, determination or interpretation.

         15.5 This Plan shall be governed by and construed in accordance with
the laws of the State of New York, without regard to its principles of conflicts
of law.

                                  Section 16.

                             EFFECTIVE DATE OF PLAN

         The Plan shall become effective upon the date of its adoption by the
Board (the "Effective Date"), in each case subject to the approval by the
Company's shareholders within twelve months of the date of such adoption.
Section 17.

                                    DURATION

         Unless terminated earlier by the Board, the Plan shall terminate ten
years from the Effective Date.

                                      -11-

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