Document:

cix_10k12312010exh1013.htm

Exhibit 10.13

FIRST AMENDED AND RESTATED

UNSECURED REVOLVING

DEMAND PROMISSORY NOTE

 

 

	
$8,000,000.00

	
December 31, 2010

Section 1.  Promise to Pay.  For and in consideration of value received, the undersigned, NL Industries, Inc., a corporation duly organized under the laws of the state of New Jersey  (“Borrower”), promises to pay to the order of CompX International Inc., a corporation duly organized under the laws of the state of Delaware (“CompX”), or the holder hereof (as applicable, CompX or such holder shall be referred to as the “Noteholder”), the principal sum of EIGHT MILLION and NO/100ths United States Dollars ($8,000,000.00) or such lesser amount as shall equal the unpaid principal amount of the loan made by the Noteholder to Borrower together with interest on the unpaid principal balance from time to time pursuant to the terms of this First Amended and Restated Unsecured Revolving Demand Promissory Note, as it may be amended from time to time (this “Note”).  This Note shall be unsecured and will bear interest on the terms set forth in Section 7 below. Capitalized terms not otherwise defined shall have the meanings given to such terms in Section 17 of this Note.

Section 2.  Amendment and Restatement  This Note renews and replaces, amends and restates in its entirety the Unsecured Revolving Promissory Note dated February 3, 2010 in the original principal amount of $8,000,000.00 payable to the order of the Noteholder and executed by the Borrower (the “Original Note”).  As of the close of business on December 31, 2010, the unpaid principal balance of the Original Note was nil and the accrued and unpaid interest thereon was nil, which principal and accrued and unpaid interest is the principal and accrued interest owed under this Note as of the close of business on the date of this Note at that time.

Section 3.  Place of Payment.  All payments will be made at Noteholder’s address at Three Lincoln Centre, 5430 LBJ Freeway, Suite 1700, Dallas, Texas 75240-2697, Attention:  Treasurer, or such other place as the Noteholder may from time to time appoint in writing.

Section 4.  Payments.  The unpaid principal balance of this Note and any unpaid and accrued interest thereon shall be due and payable on the Final Payment Date.  Prior to the Final Payment Date, any unpaid and accrued interest on an unpaid principal balance shall be paid in arrears quarterly on the last day of each March, June, September and December, commencing March 31, 2011.  All payments on this Note shall be applied first to accrued and unpaid interest, next to accrued interest not yet payable and then to principal.  If any payment of principal or interest on this Note shall become due on a day that is not a Business Day, such payment shall be made on the next succeeding Business Day and the payment shall be the amount owed on the original payment date.

Section 5.  Prepayments.  This Note may be prepaid in part or in full at any time without penalty.

Section 6.  Borrowings.  Prior to the Final Payment Date, Noteholder expressly authorizes Borrower to borrow, repay and re-borrow principal under this Note in increments of $100,000 on a daily basis so long as:

	
·  

	
the aggregate outstanding principal balance does not exceed $8,000,000.00;

	
·  

	
no Event of Default has occurred and is continuing.

Notwithstanding anything else in this Note, in no event will Noteholder be required to lend money to Borrower under this Note and loans under this Note shall be at the sole and absolute discretion of Noteholder.

Section 7.  Interest.  The unpaid principal balance of this Note (exclusive of any past due principal) shall bear interest at the rate per annum of the Prime Rate less three quarters of a percent (0.75%).  In the event that an Event of Default occurs and is continuing, the unpaid principal amount shall bear interest from the Event of Default at the rate per annum of the Prime Rate plus four percent (4.00%) until such time as the Event of Default is cured.  Accrued interest on the unpaid principal of this Note shall be computed on the basis of a 365- or 366-day year for actual days (including the first, but excluding the last day) elapsed, but in no event shall such computation result in an amount of accrued interest that would exceed accrued interest on the unpaid principal balance during the same period at the Maximum Rate. Notwithstanding anything to the contrary, this Note is expressly limited so that in no contingency or event whatsoever shall the amount paid or agreed to be paid to the Noteholder exceed the Maximum Rate.  If, from any circumstances whatsoever, the Noteholder shall ever receive as interest an amount that would exceed the Maximum Rate, such amount that would be excessive interest shall be applied to the reduction of the unpaid principal balance and not to the payment of interest, and if the principal amount of this Note is paid in full, any remaining excess shall be paid to Borrower, and in such event, the Noteholder shall not be subject to any penalties provided by any laws for contracting for, charging, taking, reserving or receiving interest in excess of the highest lawful rate permissible under applicable law.  All sums paid or agreed to be paid to Noteholder for the use, forbearance or detention of the indebtedness of the Borrower to Noteholder shall, to the extent permitted by applicable law, be amortized, prorated, allocated and spread throughout the full term of such indebtedness until payment in full of the principal (including the period of any renewal or extension thereof) so that the interest on account of such indebtedness shall not exceed the Maximum Rate.  If at any time the Contract Rate is limited to the Maximum Rate, any subsequent reductions in the Contract Rate shall not reduce the rate of interest on this Note below the Maximum Rate until the total amount of interest accrued equals the amount of interest that would have accrued if the Contract Rate had at all times been in effect.  In the event that, upon the Final Payment Date the total amount of interest paid or accrued on this Note is less than the amount of interest that would have accrued if the Contract Rate had at all times been in effect with respect thereto, then at such time, to the extent permitted by law, in addition to the principal and any other amounts Borrower owes to the Noteholder, the Borrower shall pay to the Noteholder an amount equal to the difference between:  (i) the lesser of the amount of interest that would have accrued if the Contract Rate had at all times been in effect or the amount of interest that would have accrued if the Maximum Rate had at all times been in effect; and (ii) the amount of interest actually paid on this Note.

 

 

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Section 8.  Remedy.  Upon the occurrence and during the continuation of an Event of Default, the Noteholder shall have all of the rights and remedies provided in the applicable Uniform Commercial Code, this Note or any other agreement among Borrower and in favor of the Noteholder, as well as those rights and remedies provided by any other applicable law, rule or regulation.  In conjunction with and in addition to the foregoing rights and remedies of the Noteholder, the Noteholder may declare all indebtedness due under this Note, although otherwise unmatured, to be due and payable immediately without notice or demand whatsoever.  All rights and remedies of the Noteholder are cumulative and may be exercised singly or concurrently.  The failure to exercise any right or remedy will not be a waiver of such right or remedy.

Section 9.  Right of Offset.  The Noteholder shall have the right of offset against amounts that may be due by the Noteholder now or in the future to Borrower against amounts due under this Note.

Section 10.  Record of Outstanding Indebtedness.  The date and amount of each repayment of principal outstanding under this Note or interest thereon shall be recorded by Noteholder in its records.  The principal balance outstanding and all accrued or accruing interest owed under this Note as recorded by Noteholder in its records shall be the best evidence of the principal balance outstanding and all accrued or accruing interest owed under this Note; provided that the failure of Noteholder to so record or any error in so recording or computing any such amount owed shall not limit or otherwise affect the obligations of the Borrower under this Note to repay the principal balance outstanding and all accrued or accruing interest.

Section 11.  Waiver.  Borrower and each surety, endorser, guarantor, and other party now or subsequently liable for payment of this Note, severally waive demand, presentment for payment, notice of nonpayment, notice of dishonor, protest, notice of protest, notice of the intention to accelerate, notice of acceleration, diligence in collecting or bringing suit against any party liable on this Note, and further agree to any and all extensions, renewals, modifications, partial payments, substitutions of evidence of indebtedness, and the taking or release of any collateral with or without notice before or after demand by the Noteholder for payment under this Note.

Section 12  Costs and Attorneys’ Fees.  In addition to any other amounts payable to Noteholder pursuant to the terms of this Note, in the event the Noteholder incurs costs in collecting on this Note, this Note is placed in the hands of any attorney for collection, suit is filed on this Note or if proceedings are had in bankruptcy, receivership, reorganization, or other legal or judicial proceedings for the collection of this Note, Borrower and any guarantor jointly and severally agree to pay on demand to the Noteholder all expenses and costs of collection, including, but not limited to, reasonable attorneys’ fees incurred in connection with any such collection, suit, or proceeding, in addition to the principal and interest then due.

Section 13.  Time of Essence.  Time is of the essence with respect to all of Borrower’s obligations and agreements under this Note.

 

 

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Section 14.  Jurisdiction and Venue.  THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE DOMESTIC LAWS OF THE STATE OF TEXAS, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICT OF LAW PROVISION OR RULE (WHETHER OF THE STATE OF TEXAS OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF TEXAS.  BORROWER CONSENTS TO JURISDICTION IN THE COURTS LOCATED IN DALLAS, TEXAS.

Section 15.  Notice.  Any notice or demand required by this Note shall be deemed to have been given and received on the earlier of (i) when the notice or demand is actually received by the recipient or (ii) 72 hours after the notice is deposited in the United States mail, certified or registered, with postage prepaid, and addressed to the recipient.  The address for giving notice or demand under this Note (i) to the Noteholder shall be the place of payment specified in Section 3 or such other place as the Noteholder may specify in writing to the Borrower and (ii) to Borrower shall be the address below the Borrower’s signature or such other place as the Borrower may specify in writing to the Noteholder.

Section 16.  Successors and Assigns.  All of the covenants, obligations, promises and agreements contained in this Note made by Borrower shall be binding upon its successors and permitted assigns, as applicable.  Notwithstanding the foregoing, Borrower shall not assign this Note or its performance under this Note without the prior written consent of the Noteholder.

Section 17.  Definitions.  For purposes of this Note, the following terms shall have the following meanings:

(a)           “Business Day” shall mean any day banks are open in the state of Texas.

(b)           “Contract Rate” means the amount of any interest (including fees, charges or expenses or any other amounts that, under applicable law, are deemed interest) contracted for, charged or received by or for the account of Noteholder.

(c)           “Event of Default” wherever used herein, means any one of the following events:

(i)           the Borrower fails to pay any amount due on this Note and/or any fees or sums due under or in connection with this Note after any such payment otherwise becomes due and payable and three Business Days after demand for such payment;

(ii)           the Borrower otherwise fails to perform or observe any other provision contained in this Note and such breach or failure to perform shall continue for a period of thirty days after notice thereof shall have been given to the Borrower by the Noteholder;

(iii)           a case shall be commenced against Borrower, or Borrower shall file a petition commencing a case, under any provision of the Federal Bankruptcy Code of 1978, as amended, or shall seek relief under any provision of any other bankruptcy, reorganization, arrangement, insolvency, readjustment of debt, dissolution or liquidation law of any jurisdiction, whether now or hereafter in effect, or shall consent to the filing of any petition against it under such law, or Borrower shall make an assignment for the benefit of its creditors, or shall admit in writing its inability to pay its debts generally as they become due, or shall consent to the appointment of a receiver, trustee or liquidator of Borrower or all or any part of its property; or

(iv)           an event occurs that, with notice or lapse of time, or both, would become any of the foregoing Events of Default.

 

 

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(d)           “Final Payment Date” shall mean the earlier of:

	
·  

	
written demand by the Noteholder for payment of all or part of the principal and interest accrued and unpaid thereon, but in any event no earlier than March 31, 2012;

	
·  

	
December 31, 2012; or

	
·  

	
acceleration as provided herein.

(e)           “Maximum Rate” shall mean the highest lawful rate permissible under applicable law for the use, forbearance or detention of money.

(f)           “Prime Rate” shall mean the fluctuating interest rate per annum in effect from time to time equal to the base rate on corporate loans as reported as the Prime Rate in the Money Rates column of The Wall Street Journal or other reliable source.

 

 

 

 

	
  

	
BORROWER:

	
  

	
NL Industries, Inc.

 

 

 

	
  

	
By: /s/Gregory M. Swalwell                                                                                 

	
  

	
Gregory M. Swalwell, Vice President, Finance and Chief Financial Officer

    Address:

    5430 LBJ Freeway, Suite 1700

    Dallas, Texas   75240-2697

As of the date hereof, CompX International Inc., as the Noteholder, hereby agrees that this Note renews and replaces, amends and restates in its entirety the Original Note and that the unpaid principal and accrued interest on the Original Note as of the close of business on December 31, 2010 is the principal and accrued interest owed under this Note as of that date and time.

	
  

	
CompX International Inc.

 

 

 

	
  

	
By: /s/Darryl R. Halbert                                                                                     

	
  

	
Darryl R. Halbert, Finance and Chief Financial Officer and Controller

 

 

 

 

 

Page 4 of 4Destiny Media Technologies Inc. - Exhibit 10.1 - Filed by newsfilecorp.com

DESTINY MEDIA TECHNOLOGIES INC. 

EMPLOYEE STOCK PURCHASE PLAN 

1.      
PURPOSE OF PLAN 

1.1     Purpose of Plan. This
Employee Stock Purchase Plan (the “Plan”) is created for the purpose of
encouraging stock ownership by officers, directors and employees of Destiny
Media Technologies Inc. and its subsidiaries (the “Company”) so that they may
share in the growth of the Company by acquiring or increasing their proprietary
interest in the Company. 

2.      
DEFINITIONS 

2.1     Definitions. In this Plan,
the following words and phrases shall have the following meanings: 

	 	(a) 	
      “Board of Directors” means the Board of Directors of the
      Company.

	 	 	 	 
	 	(b) 	
      “Company” means Destiny Media Technologies Inc.

	 	 	 	 
	 	(c) 	
      “Compensation” means total compensation received by a
      Participant from the Company in accordance with the terms of employment
      during the applicable payroll period.

	 	 	 	 
	 	(d) 	
      “Director” means a director of the Company or a
      subsidiary of the Company.

	 	 	 	 
	 	(e) 	
      “Employee” means:

	 	 	 	 
	 		(i) 	
      an individual who is considered an employee of the
      Company or a subsidiary of the Company under the Income Tax Act
      (Canada)(and for whom income tax, employment insurance and CPP
      deductions must be made at source);

	 	 	 	 
	 		(ii) 	
      an individual who works full-time for the Company or a
      subsidiary of the Company providing services normally provided by an
      employee and who is subject to the same control and direction by the
      Company over the details and methods of work as an employee of the
      Company, but for whom income tax deductions are not made at source;
    or

	 	 	 	 
	 		(iii) 	
      an individual who works for the Company or a subsidiary
      of the Company on a continuing and regular basis for a minimum amount of
      time per week (the number of hours should be disclosed in the submission)
      providing services normally provided by an employee and who is subject to
      the same control and discretion by the Company over the details and
      methods of work as an employee of the Company, but for whom income tax
      deductions are not made at source.

	 	 	 	 
	 	(f) 	
      “Exchange” means the TSX Venture Exchange.

	 	 	 	 
	 	(g) 	
      “Officer” means a chair or vice-chair of the Board of
      Directors, a chief executive officer, chief financial officer, chief
      operating officer, president, vice-president, secretary, assistant secretary, treasurer or assistant
      treasurer of the Company or any of a subsidiary of the Company or an
      individual designated as an officer by a resolution of the Board of
  Directors or the constating documents of the Company.

	 	(h) 	
      “OTCBB” means the FINRA OTC Bulletin Board.

	 	 	 
	 	(i) 	
      “Participants” has the meaning set out in section
    3.1.

	 	 	 
	 	(j) 	
      “Plan” means this Employee Stock Purchase Plan as
      amended, supplemented or restated.

	 	 	 
	 	(k) 	
      “Plan Agent” means the agent appointed by the Company
      from time to time to administer the Plan.

	 	 	 
	 	(l) 	
      “Shares” means shares of the Company’s common
    stock.

3.      
 PARTICIPATION IN THE PLAN 

3.1     Participants. Any
Officer, Director or Employee will be eligible to participate in the Plan.
Eligible Officers, Directors and Employees who elect to participate in the Plan
shall hereinafter be referred to as “Participants”. 

3.2     Enrolment. A Participant may
enter the Plan by providing written notice to the Company of the Participant’s
intention to enrol in the Plan. In the written notice, the Participant shall
specify his or her contribution amount as set out in section 5.1 of the Plan.
Such authorization will take effect three weeks after the Company receives
written notice and the Participant will be eligible as of the next practicable
payroll period. Unless a Participant authorizes changes to his or her payroll
deductions in accordance with section 5.3 or withdraws from the Plan, his or her
deductions under the latest authorization on file with the Company shall
continue from one payment period to the succeeding payment period as long as the
Plan remains in effect. 

3.3     Restrictions. The Company
may deny the right to participate in the Plan to any Officer, Director or
Employee if such participation would cause a violation of any applicable laws.

4.      
THE PLAN AGENT 

4.1     Administration of the
Plan. The Company may, from time to time, appoint a Plan Agent to administer
the Plan on behalf of the Company and the Participants, pursuant to an agreement
between the Company and the Plan Agent which may be terminated by the Company or
the Plan Agent in accordance with its terms. 

4.2     Dealing in the Company’s
Securities. The Plan Agent may, from time to time, for their own account or
on behalf of accounts managed by them, deal in securities of the Company. The
Plan Agent shall not deal in the Shares under this Plan unless in accordance
with the terms of this Plan and shall not purchase for or sell to any account it
is acting as principal. 

4.3     Adherence to
Regulation. The Plan Agent is required to comply with applicable laws,
orders or regulations of any governmental authority which impose on the Plan
Agent a duty to take or refrain from taking any action under the Plan and to
permit any property authorized person to have access to and to examine and make
copies of any records relating to the Plan. 

4.4     Resignation of the Plan
Agent. The Plan Agent may resign as Plan Agent under the Plan in accordance
with the agreement between the Company and the Plan Agent, in which case the
Company will appoint another agent as the Plan Agent. 

5.       METHOD
OF PAYMENT FOR CONTRIBUTIONS 

5.1     Payroll Deduction.
Participants, upon entering the Plan, shall authorize payroll deductions to be
made for the purchase of Shares. A Participant may contribute, on a per pay
period basis, between one percent (1%) to five percent (5%) of a Participant’s
Compensation on each payday. All payroll deductions made by a Participant shall
be credited to his or her account under the Plan. A Participant may not make any
additional payments into such account.

5.2     Company Contribution. The
Company will match each Participant’s contribution by contributing to the Plan
an additional one hundred percent (100%) of the Participant’s payroll deduction.
The Company’s matching contribution will be paid on Participant’s contributions
made to the Plan. For purposes of determining the Company’s contribution in
countries outside the United States, the U.S. dollar equivalent of the
Participant’s contribution for any calendar year will be based on the exchange
rate in effect on the payday.

5.3     Director Contribution. In
event that a Director does not receive Compensation from the Company, a Director
may contribute, on an annual basis, up to $12,500 of their own funds into the
Plan. The Company will match each Director’s contribution by contributing an
additional one hundred percent (100%) of the Director’s contributions. 

5.4     Maximum Contributions. The
maximum annual contributions of the Company under the Plan are in the aggregate
of $200,000 (US) (the “Maximum Annual Contributions”). The Company will match
contributions on a first come first serve basis with the Participants until it
has reached its Maximum Annual Contributions. In the event that the Company
reaches its Maximum Annual Contributions, the Participants will not be allowed
to make any further purchases under the Plan.

5.5     Variation in Amount of
Payroll Deduction. The Participant may authorize increases or decreases in
the amount of payroll deductions. In order to effect such a change in the amount
of the payroll deductions, the Company must receive a minimum of three weeks
written notice of such change in the manner specified by the Company.

6.      
PURCHASE OF SHARES UNDER THE PLAN 

6.1     Purchase of Shares.
Shares purchased under the Plan shall be purchased on the open market by the
Plan Agent. As soon as practicable following each pay period, the Company shall
remit the total contributions to the Plan Agent for the purchase of the Shares.
The Plan Agent will then execute the purchase order and shall allocate Shares
(or fraction thereof) to each Participant’s individual recordkeeping account. In
the event the purchase of Shares takes place over a number of days and at
different prices, then each Participant’s allocation shall be adjusted on the
basis of the average price per Share over such period. 

6.2     Commissions and Administrative
Costs. Commissions relating to the purchase of the Shares under the Plan
will be deducted from the total contributions submitted to the Plan Agent. The
Company will pay all administrative costs associated with the implementation and
operation of the Plan. 

6.3     Shares to be held by Plan
Agent. The Shares purchased under the Plan shall be held by the Plan Agent.
Participants shall receive quarterly statements that will evidence all activity
in the accounts that have been established on their behalf. Such statements will
be issued by the Plan Agent. In the event a Participant wishes to hold
certificates in his or her own name, the Participant must instruct the Plan
Agent independently and bear the costs associated with the issuance of such
certificates and pay, if required, a fee for each certificate so issued.
Fractional Shares shall be liquidated on a cash basis only in lieu of the
issuance of certificates for such fractional Shares upon the Participant’s
withdrawal. 

7.      
SALE OF SHARES PURCHASED UNDER THE PLAN 

7.1     Escrow. The Shares purchased
under the Plan will be escrowed (the “Escrowed Shares”) by the Plan Agent for a
period of twelve months from the date of such purchase (the “Escrow Period”).

7.2     Sale of Shares.
Following the Escrow Period, each Participant may sell at any time all or any
portion of the Shares acquired under the Plan and held by the Plan Agent by
notifying the Plan Agent who will execute the sale on behalf of the Participant.
The Participant shall pay commission and any other expenses incurred with regard
to the sale of the Shares. All such sales of the Shares will be subject to
compliance with any applicable federal or state securities, tax or other laws.
Each participant assumes the risk of any fluctuations in the market price of the
Shares. 

8.       WITHDRAWAL FROM THE
PLAN 

8.1     Withdrawal. Upon the
Company receiving three weeks written notice, a Participant may cease making
contributions to the Plan at any time by changing his or her payroll deduction
to zero. If the Participant desires to withdraw from the Plan by liquidating all
or part of his or her shareholder interest, the Participant must contact the
Plan Agent directly and he or she shall receive the proceeds from the sale less
commission and other expenses on such sale. 

9.    
 TERMINATION OF PARTICIPANTS RIGHTS 

9.1    Termination. The
Participant’s rights under the Plan will terminate when he or she ceases to be
an eligible Participant due to retirement, resignation, death, termination or
any other reason. A notice of withdrawal will be deemed to have been received
from a Participant on the day of his or her final payroll deduction. If a
Participant’s payroll deductions are interrupted by any legal process, a
withdrawal notice will be deemed as having been received on the day the
interruption occurs.

9.2    Disposition of Shares. In the
event of the Participant’s termination under section 9.1, the Participant will
be required to: 

	 	(a) 	
      sell any shares then remaining in the Participant’s
      account;

	 	 	 
	 	(b) 	
      transfer all remaining shares to an individual brokerage
      account; or

	 	 	 
	 	(c) 	
      request the Company’s transfer agent to issue a share
      certificate to the Participant for any shares remaining in the
      Participant’s account.

        Notwithstanding
the above, the Escrowed Shares will continue to be held in escrow by the Plan
Agent until the expiry of the Escrow Period. Following the Escrow Period, the
Participant will be required to dispose of his or her shares in accordance with
this section 9.2. 

9.3    Fractional Shares. Any
fractional shares remaining in the Participant’s account will be sold and the
proceeds will be sent to the Participant. 

9.4    Failure to Notify. If the
Participant does not do any of the options set out in section 9.2 within 30
days, the Participant will be sent a certificate representing his or her whole
Shares. The Participant will also receive a check equal to your proceeds from
the sale of your fractional shares, less applicable transaction and handling
fees. 

10.    MISCELLANEOUS 

10.1  Regulatory Rules and Policies. This Plan
and the purchase of the Shares are also subject to such other terms and
conditions as are set out in the rules and policies of the Exchange, the OTCBB
and any securities commission having authority and such rules and policies shall
be deemed to be incorporated into and become part of this Plan. If there is an
inconsistency between the provisions of such rules and policies and of this
Plan, the provisions of such rules and policies shall govern. 

10.2  Termination or Amendment of the Plan.
Subject to regulatory or Exchange approval, the Board of Directors may amend,
suspend, in whole or in part, or terminate the Plan upon notice to the
Participants without their consent or approval. If the Plan is terminated, the
Plan Agent will send to each Participant a certificate for whole Shares under
the Plan together with payment for any fractions of such Shares, and return all
payroll deductions not used in the purchase of the shares. If the Plan is
suspended, the Plan Agent will make no purchase of the Shares following the
effective date of such suspension. 

10.3  Assignment. A Participant may not assign
his or her right to participate in this Plan.

10.4  Governing Law. This Plan shall be governed
by, and construed in accordance with, the laws of British Columbia.

10.5  Shareholder Approval. This Plan is
subject to the shareholders of the Company ratifying the Plan at the Company’s
next Annual General Meeting (“AGM”). In the event that Shares are purchased
under the Plan prior to the Company’s AGM and the shareholders do not ratify the
Plan at the Company’s AGM, the Plan shall terminate immediately and each
Participant shall reimburse the Company, within 90 days of such termination, for
any contributions made by the Company prior to the AGM.

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