Document:

NEURO NUTRITION, INC.
                          (A Development Stage Company)

                              FINANCIAL STATEMENTS
                       For the Period Ended April 30, 2005

<PAGE>

JASPERS + HALL, PC
CERTIFIED PUBLIC ACCOUNTANTS
--------------------------------
9175 E. Kenyon Avenue, Suite 100
Denver, CO 80237
303-796-0099

              REPORT OF INDEPENDENT REGISTED PUBLIC ACCOUNTING FIRM

Board of Directors
Neuro Nutrition, Inc.
Denver, CO

We have audited the accompanying balance sheet of Neuro Nutrition, Inc.. (A
Development Stage Company) as of April 30, 2005 and the related statements of
operations, stockholders' equity, and cash flows for the four-month period ended
April 30, 2005. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on these
financial statements based on our audits.

We conducted our audit in accordance with standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Neuro Nutrition, Inc. as of
April 30, 2005, and the results of their operations and their cash flows for the
four-month period ended April 30, 2005, in conformity with accounting principles
generally accepted in the United States.

The accompanying financial statements have been prepared assuming the Company
will continue as a going concern. As discussed in Note 3, conditions exist which
raises substantial doubt about the Company's ability to continue as a going
concern unless it is able to generate sufficient cash flows to meet its
obligations and sustain its operations. Management's plans in regard to these
matters are also described in Note 3. The financial statements do not include
any adjustments that might result from the outcome of this uncertainty.

Jaspers + Hall, PC
Denver, Colorado
June 27, 2005
/s/Jaspers + Hall, PC

<PAGE>
<TABLE>
<CAPTION>

                             NUERO NUTRITION, INC.
                         (A Development Stage Company)
                                 Balance Sheet
                                 April 30, 2005

                                                                                              April 30,
                                                                                                2005
<S>                                                                                        <C>
                                                                                           ----------------
ASSETS:

   Current Assets:
      Cash                                                                                     $ 46,920
      Accounts Receivable                                                                            1,118
                                                                                           ----------------

Total Current Assets                                                                               48,038
                                                                                           ----------------

TOTAL ASSETS                                                                                   $ 48,038
                                                                                           ================

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT):
    Current Liabilities:
         Notes Payable                                                                              70,000
                                                                                           ----------------

Total Current Liabilities                                                                          70,000
                                                                                           ----------------

 Stockholders Equity (Deficit):
    Common stock, $.001 par value, 50,000,000 shares                                                 7,725
        authorized, 7,725,000 shares issued and outstanding
    Accumulated Deficit                                                                           (29,687)
                                                                                           ----------------
                                                                                           ----------------

Total Stockholders' Equity (Deficit)                                                              (21,962)
                                                                                           ----------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)                                              $ 48,038
                                                                                           ================
</TABLE>
The accompanying notes are an integra part of these financial statemens.

<PAGE>

                             NUERO NUTRITION, INC.
                          (Development Stage Company)
                            Statement of Operations
                 For the Four-Month Period Ended April 30, 2005

                                                        Four-month
                                                          Period
                                                     Ended April 30,
                                                           2005
                                                     -----------------

Revenue:
    Sales                                                     $ 1,268
    Less`Cost of Goods Sold                                      (915)
                                                     -----------------

Gross Profit                                                      353
                                                     -----------------

Costs and Expenses:
     Legal & Accounting                                         9,934
     Business Expenses                                         15,846
     Administrative Expenses                                    4,260
                                                     -----------------

Total Expenses                                                 30,040
                                                     -----------------

Net Loss From Operations                                    $ (29,687)
                                                     -----------------

Per Share Information:
     Weighted average number
     of common shares outstanding                             665,000
                                                     -----------------

Net Loss per common share                                   *
                                                     =================

* Less than $.01

The accompanying notes are an integral part of these financial statements.

<PAGE>
<TABLE>
<CAPTION>

                                                   COMMON STOCK                                             Total
                                                                                   Accumulated          Stockholders'
                                           # of Shares          Amount               Deficit                Equity
                                           -----------          ------               -------                ------
<S>                                            <C>                <C>                 <C>              <C>

Stocks issued for cash                         7,450,000          $ 7,450                   $ -          $ 7,450
Stocks issued for services                       275,000              275                     -              275
Net Loss for Period                                    -                -               (29,687)         (29,687)
                                               ---------          -------             ---------        ---------
Balance - April 30, 2005                       7,725,000          $ 7,725             $ (29,687)       $ (21,962)
                                               =========          =======             =========        =========

</TABLE>
The accompanying notes are an integral part of these financial statements.

<PAGE>
<TABLE>
<CAPTION>

                             NEURO NUTRITION, INC.
                         (A Development Stage Company)
                            Statement of Cash Flows
                 For the Four-Month Period Ended April 30, 2005

                                Indirect Method

                                                                                              Four-Month
                                                                                                Period
                                                                                           Ended April 30,
                                                                                                 2005
                                                                                           -----------------
<S>                                                                                        <C>

Cash Flows from Operating Activities:

     Net Loss                                                                                    $ (29,687)
     Stocks issued for services                                                                        275
     Adjustments to reconcile net loss to net cash used
        by operating activities
     (Increase) in Accounts Receivable                                                              (1,118)
                                                                                           -----------------

Net Cash Used by Operating Activities                                                              (30,530)
                                                                                           -----------------

Cash Flows from Financiang Activities:

     Proceeds from Notes Payable                                                                    70,000
     Proceeds from Sale of Stock                                                                     7,450
                                                                                           -----------------

Net Cash from Financing Activities                                                                  77,450
                                                                                           -----------------

Net Increase in Cash & Cash Equivalents                                                             46,920

Beginning Cash & Cash Equivalents                                                                        -
                                                                                           -----------------

Ending Cash & Cash Equivalents                                                                    $ 46,920
                                                                                           =================

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
     Cash paid for Interest                                                                           $ -
                                                                                           =================
     Cash paid for Income Taxes                                                                       $ -
                                                                                           =================

NON-CASH TRANSACTIONS
     Stock issued for services                                                                       $ 275
                                                                                           =================

</TABLE>
The accompanying notes are an integral part of thesed financial statements.

<PAGE>

                              NEURO NUTRITION, INC.
                          (A Development Stage Company)
                          Notes to Financial Statements
                                 April 30, 2005

Note 1 - Organization and Summary of Significant Accounting Policies:
         ------------------------------------------------------------

Organization:

The Company was incorporated on July 23, 2004 as 4 Your Life Nutrition, Inc., in
the state of Colorado, and has been in the development stage since. On January
6, 2005 the Company name was changed to Neuro Nutrition, Inc. It is primarily
organized for the purpose of distributing health supplements. The Company's
fiscal year end is December 31.

Basis of Presentation - Development Stage Company:

The Company has not earned significant revenues from limited principal
operations. Accordingly, the Company's activities have been accounted for as
those of a "Development Stage Enterprise" as set forth in Financial Accounting
Standards Board Statement No. 7 ("SFAS 7"). Among the disclosures required by
SFAS 7 are that the Company's financial statements be identified as those of a
development stage company, and that the statements of operations, stockholders'
equity (deficit) and cash flows disclose activity since the date of the
Company's inception.

Basis of Accounting:

The accompanying financial statements have been prepared on the accrual basis of
accounting in accordance with accounting principles generally accepted in the
United States.

Cash and Cash Equivalents:
-------------------------

The Company considers all highly liquid debt instruments, purchased with an
original maturity of three months or less, to be cash equivalents.

Use of Estimates:

The preparation of financial statements, in conformity with accounting
principles generally accepted in the United States, requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities, and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenue and expenses during
the reporting period. Actual results could differ from those estimates.

Net Gain/Loss Per Share:

Net gain/loss per share is based on the weighted average number of common shares
and common shares equivalents outstanding during the period.

<PAGE>

                              NEURO NUTRITION, INC.
                          (A Development Stage Company)
                          Notes to Financial Statements
                                 April 30, 2005

Other Comprehensive Income:

The Company has no material components of other comprehensive income (loss), and
accordingly, net loss is equal to comprehensive loss in all periods.

Revenue Recognition:

Revenue is recognized as soon as a health supplement is sold.
Note 2 - Federal Income Taxes:
         ---------------------

The Company has made no provision for income taxes because there have been no
operations to date causing income for financial statements or tax purposes.

The Financial Accounting Standards Board (FASB) has issued Statement of
Financial Accounting Standards Number 109 ("SFAS 109"). "Accounting for Income
Taxes", which requires a change from the deferred method to the asset and
liability method of accounting for income taxes. Under the asset and liability
method, deferred income taxes are recognized for the tax consequences of
"temporary differences" by applying enacted statutory tax rates applicable to
future years to differences between the financial statement carrying amounts and
the tax basis of existing assets and liabilities.

                                                                   2004
Deferred tax assets
         Net operating loss carryforwards                     $  29,687
         Valuation allowance                                    (29,687)
                                                               ----------
         Net deferred tax assets                              $       0
                                                               ==========

As of April 30, 2005, the Company had net operating loss carryforwards of
approximately $29,687 for federal income tax purposes. These carryforwards if
not utilized to offset taxable income will begin to expire in 2010.

<PAGE>

                              NEURO NUTRITION, INC.
                          (A Development Stage Company)
                          Notes to Financial Statements
                                 April 30, 2005

Note 3 - Going Concern

The Company's financial statements have been presented on the basis that it is a
going concern, which contemplated the realization of assets and the satisfaction
of liabilities in the normal course of business.

The Company's ability to continue as a going concern is dependent upon its
ability to develop additional sources of capital or locate a merger candidate
and ultimately, achieve profitable operations. The accompanying financial
statements do not include any adjustments that might result from the outcome of
these uncertainties. Management is seeking new capital to revitalize the
Company.

Note 4 - Capital Stock Transactions:

The authorized capital stock of the Company was established at 50,000,000 with a
$.001 par value.  The Company  issued  7,725,000  shares of common stock through
April 30, 2005.

Note 5 - Notes Payable:

The Notes Payable as of April 30, 2005 include:

                  Diane Wolta with interest accrued at 15%
                  per annum, due February 28, 2006.                    $20,000

                   Robert Wolta with interest accrued at 15%
                  per annum, due February 28, 2006.                     50,000
                                                                       --------
                           Total Notes Payable                         $70,000
                                                                       ========

Note 6 - Warrants and Options:

The promissory note for Diane Wolta and Robert Wolta include options for the
holder and/or his assignee to have the right to convert the Principal amount and
all accrued interest on their note into shares of common stock equal to the
share payment amount of $.65 per share. If executed the Option will represent
payment in full of the Note, including interest. All shares shall have piggyback
registration rights and Maker agrees to register all shares in its `FIRST'
registration. In addition the Holder shall, upon exercising the Option, receive
warrants redeemable for common stock in a quantity equal to the number of shares
received upon exercising the Option with an equivalent value of $.65 per share.
Redemption period shall expire 24 months from the date of issue.

<PAGE>

                              NEURO NUTRITION, INC.
                          (A Development Stage Company)
                          Notes to Financial Statements
                                 April 30, 2005

Note 7 - Segment Information:

Neuro Nutrition,  Inc.  operates  primarily in a single operating  segment,  the
distribution of health supplements.

Note 8 - Financial Accounting Developments:

Recently issued Accounting Pronouncements

In February 2003, the Financial Accounting Standards Board ("FASB") issued SFAS
No. 150, "Accounting for Certain Financial Instruments with Characteristics of
Both Liabilities and Equity". The provisions of SFAS 150 are effective for
financial instruments entered into or modified after May 31, 2003, and otherwise
are effective at the beginning of the first interim period beginning after June
15, 2003, except for mandatorily redeemable financial instruments of nonpublic
entities. The Company has not issued any financial instruments with such
characteristics.

In December 2003, the FASB issued FASB Interpretation No 46 (revised December
2003), "Consolidation of Variable Interest Entities" (FIN No. 46R), which
addresses how a business enterprise should evaluated whether it has a
controlling financial interest in an entity through means other than voting
rights and according should consolidate the entity. FIN No. 46R replaces FASB
Interpretation No. 46, "Consolidation of Variable Interest Entities", which was
issued January 2003. Companies are required to apply FIN 46R to variable
interests in variable interest entities ("VIEs") created after December 31,
2003. For variable interest in VIEs created before January 1, 2004, the
Interpretation is applied beginning January 1, 2005. For any VIEs that must be
consolidated under FIN No. 46R that were created before January 1, 2004, the,
assets, liabilities and non-controlling interests of the VIE initially are
measured at their carrying amounts with any difference between the net amount
added to the balance sheet and any previously recognized interest being
recognized as the cumulative effect of an accounting change. If determining the
carrying amount is not practicable, fair value at the date FIN No.46R first
applies may be used to measure the assets, liabilities and non-controlling
interest of the VIE. The Company does not have any interest in any VIEs.

In December 2004, the FASB issued SFAS No. 123R (revised 2004), "Share-Based
Payment" which amends FASB Statement No. 123 and will be effective for public
companies for interim or annual periods after June 15, 2005. The new standard
will require entities to expense employee stock options and other share-based
payments. The new standard may be adopted in one of three ways - the modified
prospective transition method, a variation of the modified transition method or
the modified retrospective transition method. The Company is to evaluate how it
will adopt the standard and the evaluating the effect hat the adoption of SFAS
123R will have on our financial position and results of operations.

<PAGE>

                              NEURO NUTRITION, INC.
                          (A Development Stage Company)
                          Notes to Financial Statements
                                 April 30, 2005

Note 8 - Financial Accounting Developments (cont):

In November 2004, the FASB issued SFAS No. 151, "Inventory Costs, an amendment
of ARB No. 43, Chapter 4." The statement amends the guidance in ARB No. 43,
Chapter 4, Inventory Pricing, to clarify the accounting for abnormal amounts of
idle facility expense, freight, handling costs and wasted material (spoilage).
Paragraph 5 of ARB No. 43, Chapter 4 previously stated that "under some
circumstances, items such as idle facility expense, excessive spoilage, double
freight and rehandling costs may be so abnormal as to require treatment as
current period charges". SFAS No. 151 requires that those items be recognized as
current-period charges regardless of whether they meet the criterion of "so
abnormal". In addition, this statement requires that allocation of fixed
production overhead to the costs of conversion be based on the prospectively and
are effective for inventory costs incurred during fiscal years beginning after
June 15, 2005, with earlier application permitted for inventory costs incurred
during fiscal years beginning after the date this Statement was issued. The
adoption of SFAS No. 151 is not expected to have a material impact on the
Company's financial position and results of operation.

In December 2004, the FASB issued SFAS No. 153, Exchange of Non-monetary Assets,
an amendment of APB Opinion No. 23. The guidance in APB Opinion No. 29,
Accounting for Non-monetary Transactions, is based on the principle that
exchanges of non-monetary assets should be measured on the fair value of assets
exchanged. The guidance in that Opinion, however, included certain exceptions to
that principle. This Statement amends Opinion 29 to eliminated of the exception
for non-monetary exchanges of similar productive assets that do not have
commercial substance. A non-monetary exchange has commercial substance if the
future cash flows of the entity are expected to change significantly as a result
of the exchange. SFAS No. 153 is effective for non-monetary exchanges occurring
in fiscal periods beginning after June 15, 2005. The adoption of SFAS No. 153 is
not expected to have a material impact on the Company's financial position and
results of operations.Exhibit
4.3

 

As amended through 5/11/05

THE MIDDLEBY CORPORATION

1998 STOCK INCENTIVE PLAN

Introduction

This
document contains the provisions of The Middleby Corporation 1998 Stock
Incentive Plan, as adopted effective as of February 19, 1998 (the “Effective
Date”).  The purpose of this Plan is to
provide a means to attract and retain employees of experience and ability and
to furnish additional incentives to them.

ARTICLE I

Definitions

1.1.          “Board” means the Company’s Board of Directors.

1.2.          “Code” means the Internal Revenue Code of 1986, as
amended.

1.3.          “Company” means The Middleby Corporation, a Delaware
corporation.

1.4.          “Eligible Employee” means any employee of an
Employer.

1.5.          “Employer”
means the Company or any affiliate or subsidiary of the Company.

1.6.          “Fair
Market Value” means, as of any date, the closing price of Stock on the
national stock exchange or automated quotation system on which the Stock is
then listed or, if there was no trading in Stock on that date, the closing
price of Stock on such exchange or automated quotation system on the next
preceding date on which there was trading in Stock.

1.7.          “Grant”
means any award of Options, Stock Appreciation Rights, Restricted Stock or
Performance Stock (or any combination thereof) made under this Plan to an
Eligible Employee.

1.8.          “Option” means any stock option granted under this
Plan.

1.9.          “Performance
Stock” means Stock issued pursuant to Article VII of this Plan.

1.10.        “Plan”
means The Middleby Corporation 1998 Stock Incentive Plan, as set out in this
document and as subsequently amended.

1.11.        “Recipient”
means an Eligible Employee to whom a Grant has been made.

 

 

1.12.        “Restricted
Stock” means Stock transferred to a Recipient in a Grant which is, at the
date on which the Grant is made, both (i) not “transferable” and (ii) “subject
to a substantial risk of forfeiture,” within the meaning of Section 83 of the
Code.

1.13.        “Stock”
means the Company’s authorized common stock, par value $.01 per share.

1.14.        “Stock
Appreciation Right” means a right transferred to a Recipient under a Grant
which entitles the Recipient, upon exercise, to receive a payment (in cash,
Stock or a combination of cash and Stock) which is equal to the increase (if
any) in the Fair Market Value of a share of Stock between the date as of which
the Grant was made and the date as of which the right is exercised.

1.15.        The
masculine gender includes the feminine, and the singular number includes the
plural, unless a different meaning is clearly required by the context.

ARTICLE II

Stock Available for Grants

2.1.          1,750,000
shares of Stock are available for Grants under the Plan.  The Stock available for Grants may include
unissued or reacquired shares.  If a
Grant expires or is canceled, any shares which were not issued or fully vested
under the Grant at the time of expiration or cancellation will again be
available for Grants.

2.2.          If
there is a merger, consolidation, stock dividend, split-up, combination or
exchange of shares, recapitalization or change in capitalization with respect
to Stock, the total number of shares provided for in Section 2. 1. will be
adjusted by the Board to accurately reflect that event.

ARTICLE III

Making Grants

3.1.          (a)           The Board may, at any time while the
Plan is in effect and there is Stock available for Grants, make Grants to
Eligible Employees; provided, that the selection of Eligible Employees for
participation and decisions concerning the timing, pricing and amount of a
Grant shall be made solely by a committee consisting solely of  two or more directors.  The number of shares of Stock granted in a
fiscal year to each executive officer whose compensation is subject to
reporting in the Company’s annual proxy statement (an “Executive Officer”)
shall not exceed 200,000 shares for any fiscal year during which he serves as
an Executive Officer, except that (i) a grant of 200,000 shares may be made to
Selim A. Bassoul in 2002, (ii) a grant of 325,000 shares may be made to Selim
A. Bassoul in 2003, and (iii) a grant of 170,000 shares may be made to William
F. Whitman, Jr. in 2003.

(b)           No
Grant may be made after February 19, 2008.

(c)           All Grants and any exercises of
Grants are conditioned upon stockholder approval of the Plan as described in
Section 9.2.

 

2

 

(d)           If there is a merger, consolidation,
stock dividend, split-up, combination or exchange of shares, recapitalization
or change in capitalization with respect to Stock, or any other corporate
action with respect to Stock which, in the opinion of the Board, adversely
affects the relative value of a Grant, the number of shares and the exercise
price (in the case of an Option) of any Grant which is outstanding at the time
of that event will be adjusted by the Board to the extent necessary to remedy
the adverse effect on the Grant’s value.

3.2.          (a)           The
terms of each Grant will be set out in a written agreement.

(b)           Subject to the applicable provisions
of Article IV, VI, VI or VII, a Grant may contain any terms and conditions
which the Board determines, as long as they are consistent with the provisions
of the Plan.  Such terms may, without
limitation, include provisions that Grants shall terminate upon termination of
employment in specified circumstances.

ARTICLE IV

Options

4.1.          The terms of each Option must include the following:

(i)            The
name of the Recipient.

(ii)           The
number of shares which are subject to the Option.

(iii)          The
term over which the Option may be exercised.

(iv)          A requirement that the Option is not
transferable by the Recipient except by will or the laws of descent and
distribution and that, during his lifetime, it is exercisable only by him.  Provided that, subject to the approval of the
Board, an Option may be transferable as permitted under 17 C.F.R. sec. 240.16b-3
and 5, as long as such transfers are made to one or more of the following:
family members, including children of the Recipient, the spouse of the
Recipient, or grandchildren of the Recipient, trusts for such family members or
charities (“Transferees”), and provided that such transfer is a bona fide gift
and accordingly, the Recipient receives no consideration for the transfer, and
that the Options transferred continue to be subject to the same terms and
conditions that were applicable to the Options immediately prior to the
transfer.  In the event of such a
transfer, the Transferee may not subsequently transfer this Option.  The designation of a beneficiary shall not
constitute a transfer.

(v)           A statement of whether the Option is
intended to be an “incentive stock option” under Section 422 of the Code or a “nonstatutory
stock option”.

(vi)          The exercise price per share must be
at least 100% of the Stock’s Fair Market Value on the date the Option is
granted.

4.2.          An
Option which is intended to be an incentive stock option under Section 422 of
the Code must contain the following terms:

(i)            The exercise price per share must be
at least 100% of the Stock’s Fair Market Value on the date the Option is
granted.

 

3

 

(ii)           The aggregate Fair Market Value (as
of the date the Option is granted) of Stock with respect to which incentive
stock options are exercisable for the first time by the Recipient during any
calendar year (under all stock option plans of the Employers) may not exceed
$100,000.

(iii)          The term over which the Option may be
exercised may never exceed ten years from the date of Grant.

(iv)          If the Recipient, at the time the
option is granted, owns 10% or more of the voting stock of an Employer
(including Stock which he is deemed to own under Section 424(d) of the Code),
the exercise price must be at least 110% of the Stock’s Fair Market Value as of
the Option’s date of grant, and the term of the Option may not be more than
five years from the date of grant.

4.3.          (a)           An Option may be exercised, in whole
or part, at any time during its term, subject to any specific conditions in the
Option’s terms and any rules adopted by the Board for the exercise of Options.

(b)           A Recipient may pay the exercise
price of an Option in cash or, in the Board’s discretion, in shares of Stock
owned by him (valued at Fair Market Value) or in a combination of cash and
shares of Stock owned by him.

(c)           The
following rules apply to the exercise of Options:

(i)            If a Recipient dies, any Option may,
to the extent it was exercisable at his death, be exercised by his estate,
within one year after his date of death or such shorter period as the Option
may provide.

(ii)           If a Recipient terminates employment
because he has become permanently and totally disabled, he may exercise any
Option to the extent it was exercisable at his termination of employment, but
only within one year after his termination of employment or such shorter period
as the Option may provide.

(iii)          If a Recipient terminates employment
for any reason other than death or permanent and total disability, he may
exercise any Option to the extent it was exercisable at his termination of
employment, but only within three months after his termination of employment or
such shorter or longer period as the Option may provide.

(iv)          Subparagraph (i), (ii) or (iii) can
never operate to make an Option exercisable beyond the term for which it was
granted.

(d)           To the extent an Option is not
exercised before the expiration of its term or before the expiration of any
shorter exercise period under paragraph (c), it will be canceled.

ARTICLE V

Stock Appreciation Rights

5.1.          The
terms of each Grant of Stock Appreciation Rights must include the following:

 

4

 

(i)            The
name of the Recipient.

(ii)           The
number of Stock Appreciation Rights which are being granted.

(iii)          The term over which the Stock
Appreciation Rights may be exercised. 
This term may never exceed ten years from the date of Grant.

(iv)          A description of any events which will
cause cancellation of the Stock Appreciation Rights before the end of the term
described in subparagraph (iii).

(v)           Whether or not the Stock Appreciation
Rights are issued in tandem with any Option, and, if so, the manner in which
the Recipient’s exercise of one affects his right to exercise the other.

(vi)          A requirement that the Stock
Appreciation Rights are not transferable by the Recipient except by will or the
laws of descent and distribution and that during his lifetime such Rights are
exercisable only by him.

5.2.          Stock
Appreciation Rights which are issued in tandem with an Option which is intended
to be an incentive stock option under Section 422 of the Code must contain the
following terms:

(i)            They
will expire no later than at the expiration of the Option.

(ii)           Payment under the Stock Appreciation
Rights may not exceed 100% of the difference between the exercise price of the
Option and the Fair Market Value of Stock on the date the Stock Appreciation
Rights are exercised.

(iii)          They are transferable only when the
Option is transferable, and under the same conditions.

(iv)          They
are exercisable only when the Option is exercisable.

(v)           They may only be exercised when the
Fair Market Value of Stock exceeds the exercise price of the Option.

5.3.          (a)           Stock Appreciation Rights may be
exercised at any time during their term, subject to Section 5.2., to any
specific conditions in their terms and to any rules adopted by the Board for
the exercise of Stock Appreciation Rights.

(b)           Determination of the form of payment
upon exercise of a Stock Appreciation Right (cash, Stock or a combination of
cash and Stock) is solely in the discretion of the Board.

ARTICLE
VI

Restricted
Stock

6.1.          The
terms of each Grant of Restricted Stock must include the following:

(i)            the
name of the Recipient.

 

5

 

(ii)           the
number of shares of Restricted Stock which are being granted.

(iii)          whether the Recipient must pay any
amount in connection with the Grant and if so, the amount and terms of that
payment.  Such amount shall not exceed
10% of the Fair Market Value of the Restricted Stock at the time the Grant is
made, and may be such lesser amount as shall be determined by the Board.

(iv)          description of the restrictions
applicable to the Grant and the conditions on which the restriction may be
removed.

ARTICLE VII

Performance Stock

7.1.          The
terms of each grant of Performance Stock must include the following:

(i)            the
name of the Recipient.

(ii)           the
number of shares of Performance Stock which are being granted.

(iii)          details of the applicable performance
period, if any, and performance criteria, if any.

(iv)          whether the Recipient must pay any
amount in connection with the Grant and if so, the amount and terms of that
payment.

ARTICLE VIII

Administration

8.1.          Subject
to Section 3.l(a) hereof, the complete authority to control and manage the
operation and administration of the Plan is placed in the Board.

8.2.          Subject
to Section 3.l(a) hereof, the Board has all authority which is necessary or
appropriate for the operation and administration of the Plan, including the
following:

(a)           To make Grants and determine their
terms, subject to the provisions of the Plan.

(b)           To
interpret the provisions of the Plan.

(c)           To adopt any rules, procedures and
forms necessary for the operation and administration of the Plan which are
consistent with its provisions.

(d)           To determine all questions relating
to the eligibility and other rights of all persons under the Plan.

(e)           To keep all records necessary for the
operation and administration of the Plan.

(f)            To designate or employ agents and
counsel (who may also be employed by an Employer) to assist in the
administration of the Plan.

 

6

 

(g)           To cause any shares of Stock acquired
by a Recipient through exercise of a Grant to be recorded on the Company’s
records in the Recipients’ name, and to cause such shares to be issued to the
Recipient or to his brokerage account, as he elects.

(h)           To cause any withholding of tax
required in connection with a Grant to be made.

 

ARTICLE
IX

Amendment
and Termination

9.1.          The
Plan may be amended or terminated at any time by action of the Board.  However, no amendment may, without
stockholder approval:

(i)            increase the aggregate number of
shares available for Grants (except to reflect an event described in section
2.2); or

(ii)           extend
the term of the Plan; or

(iii)          change the definition of Eligible
Employee for purposes of the Plan.

9.2.          If
the Plan is not, within twelve months of its Effective Date, approved by a
majority of the shares voted at a regular or special meeting of the Company’s
stockholders, the Plan will terminate and all Grants made under it will be
canceled.

9.3.          No
amendment or termination of the Plan (other than termination under
Section 9.2.) may adversely modify any person’s rights under an Option
unless he consents to the modification in writing.

ARTICLE
X

Miscellaneous

10.1.        Neither
the provisions of this Plan, nor the fact that a Recipient receives a Grant
will constitute or be evidence of a contract of employment, position or
compensation level, or give such Recipient any right to continued employment
with the Employer.  Neither the
provisions of this Plan nor the fact that a Recipient receives a Grant will be
construed as the Company’s guarantee of the tax effects for the Recipient of
the receipt of a Grant, transfer of the same, exercise of the same, or the
retention or sale of the underlying Stock.

10.2.        If any
provision of this Plan is held illegal or invalid for any reason, such illegality
or invalidity will not affect the remaining provisions.  Instead, each provision is fully severable
and this Plan will be construed and enforced as if any illegal or invalid
provision had never been included.

10.3.        Except as provided in federal law, the
provisions of the Plan will be construed in accordance with the laws of
Illinois, without giving effect to principles of conflicts of laws.

 

7

 

THE
MIDDLEBY CORPORATION

1998
STOCK INCENTIVE PLAN

INCENTIVE
STOCK OPTION AGREEMENT

 

The
Middleby Corporation (the “Company”), desiring to afford an opportunity to the
Grantee named below to purchase certain shares of the Company’s common stock,
$.01 par value (“Common Stock”), in order to provide the Grantee an added
incentive as an employee of the Company, hereby grants to Grantee, pursuant to
the terms of The Middleby Corporation 1998 Stock Option Plan (the “Plan”), an
incentive stock option (“Option”) to purchase the number of such shares
specified below, during the term ending at 5 o’clock p.m. (prevailing local
time at the Company’s principal offices) on the expiration date of this Option
specified below, at the Option exercise price specified below, subject to and
upon the following terms and conditions:

1.             Identifying Provisions.  As used in this Option, the following terms
shall have the following respective meanings:

	
  (a) Grantee:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (b) Date of grant:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (c) Number of shares
  optioned:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (d) Option exercise price
  per share:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (e) Expiration Date:

  	
   

  	
   

  

 

2.             Timing of Purchases.  Subject to the other terms of this Agreement
regarding the exercisability of this Option, this Option may be exercised in
accordance with the following schedule:

	
   

  	
   

  	
  This Option shall be Exercisable

  	
   

  
	
   

  	
   

  	
  With Respect to the Following

  	
   

  
	
  Shall be Exercisable

  	
   

  	
  Cumulative Number of Shares

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

8

 

Any
exercise shall be accompanied by a written notice to the Company specifying the
number of shares as to which the Option is being exercised.  Notation of any partial exercise shall be
made by the Company on a schedule attached hereto.

3.             Exercise:
Payment For and Delivery of Stock.  Grantee shall
acquire shares pursuant to this Option by delivering to the Company a written notice
of exercise, specifying the number of shares as to which Grantee desires to
exercise this Option and the date on which Grantee desires to complete the
transaction.  Grantee shall pay to the
Company the full purchase price of the shares to be acquired hereunder, in
cash, on or before the date specified for completion of the purchase.  Alternatively, such payment may be made in
whole or in part in shares of the same class of stock as that then subject to
the Option, delivered in lieu of cash concurrently with such exercise, the
shares so delivered to be valued on the basis of the fair market value of
stock, provided that the Company is not then prohibited from purchasing or
acquiring shares of such stock.

No
shares shall be issued hereunder until full payment has been made to the
Company.  If the Company is required to
withhold federal income taxes on account of any present or future income or
employment tax imposed in connection with Grantee’s exercise of this Option,
Grantee shall be required to pay all such withholding in cash as a condition to
the receipt of shares.  If the Grantee,
however, fails to tender payment for such withholding, the Company may withheld
from the Grantee sufficient shares or fractional shares having a fair market
value equal to such amount.

4.             Restrictions on
Exercise.  The following
additional provisions shall apply to the exercise of this Option:

a)                                      If the
employment of a Grantee who is not disabled within the meaning of Section
422(c)(6) of the Internal Revenue Code of 1986, as amended (the “Code”) (a “Disabled
Grantee”) is terminated for any reason other than death, any portion of this
Option that is outstanding and exercisable by the Grantee at the time of such
termination shall be exercisable, in accordance with the provisions of this
Agreement, by such Grantee at any time prior to the expiration date of this
Option or within three months after the date of such termination of employment,
whichever is the shorter period;

b)                                     If the
employment of a Grantee who is a Disabled Grantee is terminated by reason of
such Disability, any portion of this Option that is outstanding and exercisable
by the Grantee at the time of such termination shall be exercisable, in
accordance with the provisions of this Agreement, by such Grantee at any time
prior to the expiration date of this Option or within one year after the date
of such termination of employment, whichever is the shorter period; and

c)                                      Following the
death of a Grantee during employment, any portion of this Option that is
outstanding and exercisable by the Grantee at the time of his or her death

 

9

 

shall
be exercisable, in accordance with the provisions of this Agreement, by the
person or persons entitled to do so under the will of the Grantee, or, if the
Grantee shall fail to make testamentary disposition of this Option or shall die
intestate, by the legal representative of the Grantee at any time prior to the
expiration date of this Option or within one year after the date of death, whichever
is the shorter period.

Whether
a Grantee is disabled within the meaning of Section 422(c)(6) of the Code shall
be determined in each case, in its discretion, by the board of directors stock
option committee (the “Committee”), and any such determination by the Committee
shall be final and binding.

5.             Nontransferability.  The Grantee may not transfer
the Option except by will or the laws of descent and distribution, and during
the lifetime of the Grantee, the Option will be exerciseable only by the Grantee
or his guardian or legal representative. 
However, subject to the approval of the Board, the Option may be
transferable as permitted under the Exchange Act, as long as such transfers are
made to one or more of the following: family members, including children of the
Grantee, the spouse of the Grantee, or grandchildren of the Grantee, trusts for
such family members or charities (“Transferees”), and provided that such
transfer is a bona fide gift and accordingly, the Grantee receives no
consideration for the transfer, and that the Option transferred continues to be
subject to the same terms and conditions that were applicable to the Option
immediately prior to the transfer.  In
the event of such a transfer, the Transferee may not subsequently transfer the
Option.  However, the designation of a
beneficiary will not constitute a transfer. 
The Option may not be exercised to any extent by anyone after the
expiration of its term.  The Company
assumes no responsibility and is under not obligation to notify a Transferee of
early termination of the Option on account of the Grantees complete termination
of employment, directorship and/or consultancy.

6.             Changes in
Capital Structure.  If
the outstanding shares of Common Stock of the Company are increased or decreased
or changed into or exchanged for a different number or kind of shares or other
securities of the Company or of another corporation by reason of any
reorganization, merger, consolidation, plan of exchange, recapitalization,
reclassification, stock split, combination of shares, or dividend payable in
shares, appropriate adjustment shall be made by the Committee to the end that
the Grantee’s proportionate interest derived under this Option is maintained as
before the occurrence of such event.  The
Committee may also require that any securities issued in respect of or exchange
for shares issued hereunder that are subject to restrictions be subject to
similar restrictions.  Notwithstanding
the foregoing, the Committee shall have no obligation to effect any adjustment
that would or might result in the issuance of fractional shares, and any
fractional shares resulting from any adjustment may be disregarded or provided
for in any manner determined by the Committee. 
Any such adjustments made by the Committee shall be conclusive.

If
any such adjustment provided for in this Paragraph 6 requires the approval of
stockholders of the Company in order to enable the Company to adjust the
Option, then no such adjustment shall be made without the required stockholder
approval.  Notwithstanding the

 

10

 

foregoing,
if the effect of any such adjustment would be to cause this Option to fail to
qualify as an incentive stock option or to cause a modification, extension or
renewal of this Option within the meaning of Section 424(h) of the Code, the
Company may elect that such adjustment not be made but rather shall use
reasonable efforts to effect such other adjustment of this Option as the
Company in its sole discretion shall deem equitable and which will not result
in any disqualification, modification, extension or renewal (within the meaning
of Section 424(h) of the Code) of this Option.

7.             Acceleration of
Vesting and Exercise Upon Certain Transactions.  In anticipation of  (a) the dissolution or liquidation of the
Company; or (b) a reorganization, merger or consolidation of the Company as a
result of which the outstanding securities of the class then subject to this
Option are changed into or exchanged for cash or property or securities not of
the Company’s issue, or upon a sale of substantially all the property of the
Company to, or the acquisition of stock representing more than fifty percent
(50%) of the voting power of the stock of the Company then outstanding by
another corporation or persons unrelated to the Company or one hundred percent
(100%) of the voting power of the stock of the Company then outstanding to
persons related to the Company, the Company may require that this Option be
terminated as of a date certain.  If the
Option is to terminate pursuant to the foregoing sentence, the Grantee shall
have the right, at time designated by the Company prior to the consummation of
the transaction causing such termination, to exercise the unexercised portions
of this Option, including the portions thereof that would, but for this
Paragraph 7, not yet be exercisable.

The
Company is authorized by Grantee to collect from Grantee any additional income,
employment or excise taxes, which the Company may incur on account of this
provision.

All
shares with respect to which this Option would not be exercisable except for
this paragraph shall be deemed to be Non-Qualified Option (as defined in the
Plan) shares to the extent so required by the Plan regarding the $100,000
Incentive Stock Option (as defined in the Plan) exercise limitations.  In such event, Grantee shall recognize
taxable income equal to the difference between the fair market value of the
Non-Qualified Option shares and the exercise price paid for such shares.

8.             Rights in Shares
Before Issuance and Delivery.  Grantee, or his executor, administrator or
legatee if he is deceased, shall have no rights as a stockholder with respect
to any stock covered by this Option until the date of issuance of the stock
certificate to him for such stock after receipt of the consideration in full
set forth herein, or as may be approved by the Company.  No adjustments shall be made for dividends,
whether ordinary or extraordinary, whether in cash, securities, or other
property, for distributions in which the record date is prior to the date for
which the stock certificate is issued.

9.             Requirements of
Law.  The
certificate or certificates representing the shares of the Common Stock to be
issued or delivered upon exercise of this Option may bear a legend evidencing
the foregoing and other legends required by any applicable securities laws.

 

11

 

Furthermore,
nothing herein shall require the Company to issue any stock upon exercise of
this Option if the issuance would, in the opinion of counsel for the Company,
constitute a violation of the Securities Act of 1933, as amended, the Delaware
securities laws, or any other applicable rule or regulation then in effect.

10.          Disposition of
Shares—Restrictions. 
Except as otherwise provided in Sections 422 or 424 of the Code, if any
stock acquired by the exercise of this Option is transferred within two (2)
years after the date the Option is granted or within one (1) year after the
transfer of such share of stock to the Grantee pursuant to the exercise of the
Option, such disposition shall disqualify the Option as an Incentive Stock
Option, and the tax rules applicable to Non-qualified Options shall apply.  If so required by the Company, no stock shall
be acquired upon exercise of this Option unless and until the Optionee has
properly executed a valid stock transfer restriction agreement, provided by the
Company.

11.          No Right to
Continued Service.  This
Option shall not confer upon the Grantee any right with respect to continued
employment with the Company or any subsidiary, nor shall it alter, modify,
limit or interfere with any right or privilege of the Company or any subsidiary
under any employment contract heretofore or hereinafter executed with the
Grantee, including the right to terminate the Grantee’s employment at any time
for or without cause, to change the Grantee’s level of compensation, or to
change the Grantee’s responsibilities or position.

12.          The Middleby
Corporation 1998 Stock Incentive Plan.  Grantee hereby acknowledges receipt of a copy
of the Plan and agrees to be bound by all terms and provisions thereof and as
the same shall have been amended from time to time in accordance with the terms
thereof, provided that no such amend­ment shall deprive the Grantee, without
his consent, of this Option or any of his rights hereunder. Grantee
acknowledges and agrees that such provisions are acceptable to him for all
purposes. Grantee further acknowledges and agrees that in the event of any
conflict herewith, the provisions of the Plan shall govern and control, and
this Agreement or the applicable provision hereof shall automatically be deemed
modified to have conformed at all times.

13.          Notices.  Any notice to be given to the Committee shall
be addressed to the Committee in care of the Company at its principal office,
and any notice to be given to the Grantee shall be addressed to him at the
address given beneath his signature hereto or at such other address as the
Grantee may hereafter designate in writing to the Company.  Any such notice shall be deemed duly given
when enclosed in a properly sealed envelope or wrapper addressed as aforesaid,
registered or certified, and deposited, postage and registry or certification
fee prepaid, in a post office or branch post office regularly maintained by the
United States Postal Service.

14.          Miscellaneous.  This Agreement and the Plan constitute the
entire agreement and understanding between the Company and the Grantee and may
not be changed, modified or amended by oral statements to the contrary, but
only by written document signed by both parties hereto. The titles to each
paragraph herein are for convenience only and are not to be used in the

 

12

 

construction
or interpretation of this document. This Agreement shall be binding on and
inure to the benefit of the parties hereto, and their respective heirs,
legatees, successors and assigns. This Agreement shall be construed in
accordance with the laws of the State of Illinois.

This
document constitutes an offer by the Company to enter into an Agreement under
the terms and conditions herein set forth. 
Said offer will expire and terminate without further notice at 5 o’clock
p.m. (prevailing local time at the Company’s principal office) on                            ,
unless sooner accepted by the Grantee by delivering a copy of this Agreement,
executed by the Grantee, to the Company on or before said time and date.

IN
WITNESS THEREOF, the Company has granted this Option on the date of grant
specified above.

	
  ACCEPTED:

  	
   

  	
   

  	
   

  	
  THE
  MIDDLEBY CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
  Grantee:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Its:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address: c/o

  	
   

  	
  The Middleby Corporation

  
	
   

  	
   

  	
  1400 Toastmaster Drive

  
	
   

  	
   

  	
  Elgin, Il 60120

  
	
   

  	
   

  	
  Attn: Martin Lindsay

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
  Date:

  	
   

  
											

 

13

 

NOTATIONS AS TO PARTIAL EXERCISE

 

	
   

  	
   

  	
  Number of

  	
   

  	
  Balance of

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Purchased

  	
   

  	
  Shares on

  	
   

  	
  Authorized

  	
   

  	
  Notation

  	
   

  
	
  Date of Exercise

  	
   

  	
  Shares

  	
   

  	
  Option

  	
   

  	
  Signature

  	
   

  	
  Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

14

 

THE MIDDLEBY CORPORATION

1998 STOCK INCENTIVE PLAN

NON-QUALIFIED STOCK OPTION AGREEMENT

 

The
Middleby Corporation (the “Company”), desiring to afford an opportunity to the
Grantee named below to purchase certain shares of the Company’s common stock,
$.01 par value (“Common Stock”), in order to provide the Grantee an added
incentive as an employee of the Company, hereby grants to Grantee, pursuant to
the terms of The Middleby Corporation 1998 Stock Option Plan (the “Plan”), a
non-qualified option (“Option”) to purchase the number of such shares specified
below, during the term ending at 5 o’clock p.m. (prevailing local time at the
Company’s principal offices) on the expiration date of this Option specified
below, at the Option exercise price specified below, subject to and upon the
following terms and conditions:

1.             Identifying Provisions.  As used in this Option, the following terms
shall have the following respective meanings:

	
  (a) Grantee:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (b) Date of grant:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (c) Number of shares
  optioned:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (d) Option exercise price
  per share:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (e) Expiration Date:

  	
   

  	
   

  

 

2.             Timing of Purchases.  Subject to the other terms of this Agreement
regarding the exercisability of this Option, this Option may be exercised in
accordance with the following schedule:

	
   

  	
   

  	
  This Option shall be Exercisable

  	
   

  
	
   

  	
   

  	
  With Respect to the Following

  	
   

  
	
  Shall be Exercisable

  	
   

  	
  Cumulative Number of Shares

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

15

 

Any
exercise shall be accompanied by a written notice to the Company specifying the
number of shares as to which the Option is being exercised.  Notation of any partial exercise shall be
made by the Company on a schedule attached hereto.

3.             Exercise:
Payment For and Delivery of Stock.  Grantee shall
acquire shares pursuant to this Option by delivering to the Company a written
notice of exercise, specifying the number of shares as to which Grantee desires
to exercise this Option and the date on which Grantee desires to complete the
transaction.  Grantee shall pay to the
Company the full purchase price of the shares to be acquired hereunder, in
cash, on or before the date specified for completion of the purchase.  Alternatively, such payment may be made in
whole or in part in shares of the same class of stock as that then subject to
the Option, delivered in lieu of cash concurrently with such exercise, the
shares so delivered to be valued on the basis of the fair market value of
stock, provided that the Company is not then prohibited from purchasing or
acquiring shares of such stock.

No
shares shall be issued hereunder until full payment has been made to the
Company.  If the Company is required to
withhold federal income taxes on account of any present or future income or
employment tax imposed in connection with Grantee’s exercise of this Option,
Grantee shall be required to pay all such withholding in cash as a condition to
the receipt of shares.  If the Grantee,
however, fails to tender payment for such withholding, the Company may withheld
from the Grantee sufficient shares or fractional shares having a fair market
value equal to such amount.

4.             Restrictions on
Exercise.  The following
additional provisions shall apply to the exercise of this Option:

d)                                     If the
employment of a Grantee who is not disabled within the meaning of Section
422(c)(6) of the Internal Revenue Code of 1986, as amended (the “Code”) (a “Disabled
Grantee”) is terminated for any reason other than death, any portion of this
Option that is outstanding and exercisable by the Grantee at the time of such
termination shall be exercisable, in accordance with the provisions of this
Agreement, by such Grantee at any time prior to the expiration date of this
Option or within three months after the date of such termination of employment,
whichever is the shorter period;

e)                                      If the
employment of a Grantee who is a Disabled Grantee is terminated by reason of
such Disability, any portion of this Option that is outstanding and exercisable
by the Grantee at the time of such termination shall be exercisable, in
accordance with the provisions of this Agreement, by such Grantee at any time
prior to the expiration date of this Option or within one year after the date
of such termination of employment, whichever is the shorter period; and

f)                                        Following the
death of a Grantee during employment, any portion of this Option that is
outstanding and exercisable by the Grantee at the time of his or her death

 

16

 

shall
be exercisable, in accordance with the provisions of this Agreement, by the
person or persons entitled to do so under the will of the Grantee, or, if the
Grantee shall fail to make testamentary disposition of this Option or shall die
intestate, by the legal representative of the Grantee at any time prior to the
expiration date of this Option or within one year after the date of death,
whichever is the shorter period.

Whether
a Grantee is disabled within the meaning of Section 422(c)(6) of the Code shall
be determined in each case, in its discretion, by the board of directors stock
option committee (the “Committee”), and any such determination by the Committee
shall be final and binding.

5.             Nontransferability.  The Grantee may not transfer
the Option except by will or the laws of descent and distribution, and during
the lifetime of the Grantee, the Option will be exerciseable only by the
Grantee or his guardian or legal representative.  However, subject to the approval of the
Board, the Option may be transferable as permitted under the Exchange Act, as
long as such transfers are made to one or more of the following: family
members, including children of the Grantee, the spouse of the Grantee, or
grandchildren of the Grantee, trusts for such family members or charities (“Transferees”),
and provided that such transfer is a bona fide gift and accordingly, the
Grantee receives no consideration for the transfer, and that the Option
transferred continues to be subject to the same terms and conditions that were
applicable to the Option immediately prior to the transfer.  In the event of such a transfer, the
Transferee may not subsequently transfer the Option.  However, the designation of a beneficiary
will not constitute a transfer.  The
Option may not be exercised to any extent by anyone after the expiration of its
term.  The Company assumes no
responsibility and is under not obligation to notify a Transferee of early
termination of the Option on account of the Grantees complete termination of
employment, directorship and/or consultancy.

6.             Changes in
Capital Structure.  If
the outstanding shares of Common Stock of the Company are increased or
decreased or changed into or exchanged for a different number or kind of shares
or other securities of the Company or of another corporation by reason of any
reorganization, merger, consolidation, plan of exchange, recapitalization,
reclassification, stock split, combination of shares, or dividend payable in
shares, appropriate adjustment shall be made by the Committee to the end that
the Grantee’s proportionate interest derived under this Option is maintained as
before the occurrence of such event.  The
Committee may also require that any securities issued in respect of or exchange
for shares issued hereunder that are subject to restrictions be subject to similar
restrictions.  Notwithstanding the
foregoing, the Committee shall have no obligation to effect any adjustment that
would or might result in the issuance of fractional shares, and any fractional
shares resulting from any adjustment may be disregarded or provided for in any
manner determined by the Committee.  Any
such adjustments made by the Committee shall be conclusive.

If
any such adjustment provided for in this Paragraph 6 requires the approval of
stockholders of the Company in order to enable the Company to adjust the
Option, then no such adjustment shall be made without the required stockholder
approval.

 

17

 

7.             Acceleration of Vesting and Exercise Upon Certain
Transactions.  In anticipation
of  (a) the dissolution or liquidation of
the Company; or (b) a reorganization, merger or consolidation of the Company as
a result of which the outstanding securities of the class then subject to this
Option are changed into or exchanged for cash or property or securities not of
the Company’s issue, or upon a sale of substantially all the property of the
Company to, or the acquisition of stock representing more than fifty percent
(50%) of the voting power of the stock of the Company then outstanding by
another corporation or persons unrelated to the Company or one hundred percent
(100%) of the voting power of the stock of the Company then outstanding to
persons related to the Company, the Company may require that this Option be
terminated as of a date certain.  If the
Option is to terminate pursuant to the foregoing sentence, the Grantee shall
have the right, at time designated by the Company prior to the consummation of
the transaction causing such termination, to exercise the unexercised portions
of this Option, including the portions thereof that would, but for this
Paragraph 7, not yet be exercisable.

The
Company is authorized by Grantee to collect from Grantee any additional income,
employment or excise taxes, which the Company may incur on account of this
provision.

8.             Rights in Shares
Before Issuance and Delivery.  Grantee, or his executor, administrator or
legatee if he is deceased, shall have no rights as a stockholder with respect
to any stock covered by this Option until the date of issuance of the stock
certificate to him for such stock after receipt of the consideration in full
set forth herein, or as may be approved by the Company.  No adjustments shall be made for dividends,
whether ordinary or extraordinary, whether in cash, securities, or other
property, for distributions in which the record date is prior to the date for
which the stock certificate is issued.

9.             Requirements of
Law.  The
certificate or certificates representing the shares of the Common Stock to be
issued or delivered upon exercise of this Option may bear a legend evidencing
the foregoing and other legends required by any applicable securities laws.
Furthermore, nothing herein shall require the Company to issue any stock upon
exercise of this Option if the issuance would, in the opinion of counsel for
the Company, constitute a violation of the Securities Act of 1933, as amended,
the Delaware securities laws, or any other applicable rule or regulation then
in effect.

10.          Disposition of
Shares—Restrictions.  If so
required by the Company, no stock shall be acquired upon exercise of this
Option unless and until the Optionee has properly executed a valid stock
transfer restriction agreement, provided by the Company.

11.          No Right to
Continued Service.  This
Option shall not confer upon the Grantee any right with respect to continued
employment with the Company or any subsidiary, nor shall it alter, modify,
limit or interfere with any right or privilege of the Company or any subsidiary
under any employment contract heretofore or hereinafter executed with the
Grantee, including the right to terminate the Grantee’s employment at any time
for or without cause, to change the Grantee’s level of compensation, or to
change the Grantee’s responsibilities or position.

 

18

 

12.          The Middleby Corporation 1998 Stock Incentive Plan.  Grantee hereby acknowledges receipt of a copy
of the Plan and agrees to be bound by all terms and provisions thereof and as
the same shall have been amended from time to time in accordance with the terms
thereof, provided that no such amend­ment shall deprive the Grantee, without
his consent, of this Option or any of his rights hereunder. Grantee
acknowledges and agrees that such provisions are acceptable to him for all
purposes. Grantee further acknowledges and agrees that in the event of any
conflict herewith, the provisions of the Plan shall govern and control, and
this Agreement or the applicable provision hereof shall automatically be deemed
modified to have conformed at all times.

13.          Notices.  Any notice to be given to the Committee shall
be addressed to the Committee in care of the Company at its principal office,
and any notice to be given to the Grantee shall be addressed to him at the
address given beneath his signature hereto or at such other address as the
Grantee may hereafter designate in writing to the Company.  Any such notice shall be deemed duly given
when enclosed in a properly sealed envelope or wrapper addressed as aforesaid,
registered or certified, and deposited, postage and registry or certification
fee prepaid, in a post office or branch post office regularly maintained by the
United States Postal Service.

14.          Miscellaneous.  This Agreement and the Plan constitute the
entire agreement and understanding between the Company and the Grantee and may
not be changed, modified or amended by oral statements to the contrary, but
only by written document signed by both parties hereto. The titles to each
paragraph herein are for convenience only and are not to be used in the construction
or interpretation of this document. This Agreement shall be binding on and
inure to the benefit of the parties hereto, and their respective heirs,
legatees, successors and assigns. This Agreement shall be construed in
accordance with the laws of the State of Illinois.

This
document constitutes an offer by the Company to enter into an Agreement under
the terms and conditions herein set forth. 
Said offer will expire and terminate without further notice at 5 o’clock
p.m. (prevailing local time at the Company’s principal office) on                           ,
unless sooner accepted by the Grantee by delivering a copy of this Agreement,
executed by the Grantee, to the Company on or before said time and date.

IN
WITNESS THEREOF, the Company has granted this Option on the date of grant
specified above.

[Signature page follows.]

 

19

 

	
  ACCEPTED:

  	
   

  	
   

  	
   

  	
  THE
  MIDDLEBY CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
  Grantee:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Its:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address: c/o

  	
   

  	
  The Middleby Corporation

  
	
   

  	
   

  	
  1400 Toastmaster Drive

  
	
   

  	
   

  	
  Elgin, Il 60120

  
	
   

  	
   

  	
  Attn: Martin Lindsay

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
  Date:

  	
   

  
											

 

 

20

 

NOTATIONS AS TO PARTIAL EXERCISE

 

	
   

  	
   

  	
  Number of

  	
   

  	
  Balance of

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Purchased

  	
   

  	
  Shares on

  	
   

  	
  Authorized

  	
   

  	
  Notation

  	
   

  
	
  Date of Exercise

  	
   

  	
  Shares

  	
   

  	
  Option

  	
   

  	
  Signature

  	
   

  	
  Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

21

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}]]