Document:

Exhibit 10.48

 

EMPLOYMENT AGREEMENT

 

between

 

AdCare Health Systems, Inc. (the “Company”)

 

and

 

Melissa L. Green (the “Officer”)

 

This Employment Agreement (“Agreement”) is entered into August 6, 2012, to be effective July 1, 2012 (the “Effective Date”).

 

Background

 

The Company employs the Officer as of the Effective Date as Senior Vice President, Clinical Services of the Company and desire to enter into this Agreement to reflect the terms and conditions of the Officer’s employment.

 

Statement of Agreement

 

For good and valuable consideration (including the respective obligations of the parties hereunder), the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as of the Effective Date as follows:

 

Section 1.               Employment.  For the purposes and upon the terms and conditions hereinafter set forth, the Company agrees to employ the Officer and the Officer accepts such employment.  The Officer’s employment shall be based in the Atlanta, Georgia greater metropolitan area, subject to business travel as necessary.  The Company shall provide the Officer with an office that is initially based at its Roswell Service Center Location at 1145 Hembree Road, Roswell, Georgia 30076.

 

Section 2.               Duties.  The Officer shall be employed by the Company or one of its wholly owned subsidiaries during the Employment Term (as defined in Section 5(a)).  The Officer shall be employed by the Company as of the Effective Date, as Senior Vice President — Clinical Services of the Company.  The Officer shall report as of the Effective Date to the Chief Executive Officer.  The Company reserves the right to change the Officer’s job position(s) or the position to which the Officer reports, but any such change shall not affect any other provision of this Agreement, including without limitation, the provisions of Section 3(a).  The Officer shall devote such time, attention and energy to the business of the Company and the performance of her duties hereunder as are necessary to properly perform her duties hereunder.  The Officer represents that her entry into, and performance of services under, this Agreement does not violate the terms of any other agreement.  The Officer also represents and warrants that he is bound by no agreement that would in any way restrict her ability to perform her duties for the Company.  The Officer will be expected to carry out her duties with the highest degree of ethical and moral standards and to comply with all terms and conditions regarding the nature and manner in carrying out her duties as may be established from time to time by the Company and set forth in its employee handbook or manual.

 

 

Section 3.               Compensation.

 

(a)             Salary.  As of the Effective Date, the Officer shall be paid a salary of $200,000 per year (the “Annual Salary”), payable in installments on the date of the Company’s regular pay periods or such other installments as the Officer and the Company from time to time mutually agree upon.  Thereafter, the Annual Salary shall be reviewed at least annually by the Compensation Committee of the Board of Directors of the Company (the “Compensation Committee”) for possible increases, and if so increased, the increased amount shall thereafter be deemed to be the “Annual Salary” for all purposes under this Agreement.

 

(b)            Bonus.  The Officer shall be eligible to earn an annual bonus each year.  The target amount of the annual bonus, based on reasonably expected performance, shall be sixty percent (60%) of the Executive’s Annual Salary as of December 31st of the year for which the bonus is awarded (the “Target Bonus”).  The performance criteria for earning the bonus and the formula for determining the amount of the bonus shall be established by the CEO and Compensation Committee under the Company’s management incentive plan for executive officers.  The criteria and the formula for each year will be provided to the Officer no later than the ninetieth (90th) day of that year.  The bonus earned shall be paid in the following year as soon as feasible following the end of the year, but not later than March 30th  of the following year.  The bonus for any year will be earned and accrued and payable only if the Officer is employed by the Company on the last day of the year for which the bonus is earned.

 

(c)             Equity Compensation.  The Officer shall be eligible to receive grants of equity compensation at the discretion of the CEO and Compensation Committee.

 

Section 4.               Officer Benefits; Vacation.  During the Employment Term, the Officer shall be entitled to participate in life insurance, hospitalization medical insurance, retirement, and other benefits as are presently or may hereafter be provided to other executive officers of the Company and paid vacation in accordance with the Company’s vacation policy for executive officers.   In addition to the benefits generally available to executive officers of the Company, the Company agrees to continue to pay the Officer at the rate of 100% of her Annual Salary for a period of three (3) months after the date of “Disability” and at the rate of 60% of his Annual Salary as of the date of Disability for an additional twenty-one (21) months.  For purposes of this Agreement, the term “Disability” means the inability of the Officer to perform her duties for medical reasons for a period of ninety (90) days in any three hundred sixty-five (365) day period.  In the event there is a question as to whether or not the Officer is subject to a Disability, the Board of Directors of the Company will select a qualified physician who will make the determination which will be binding on both the Officer and the Company.

 

Section 5.               Term of Employment.

 

(a)             The term of this Agreement shall begin on the Effective Date and remain in effect thereafter while the Officer is employed by the Company (the “Employment Term”).

 

(b)            The Company and the Officer shall at all times have the right to terminate the Officer’s employment, in the case of the Company with or without Cause, and in the case of the Officer with or without Good Reason, and in either case subject to the terms of this

 

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Agreement.  Upon termination of the Officer’s employment, the Officer shall have no obligation or duty to further serve the Company in any capacity (other than to comply with the obligations set forth in Section 6 below), nor shall the Company be under any obligation or duty to employ the Officer or provide the benefits specified in Section 4 or make any of the payments provided for in Sections 3 or 4 (except to the extent any such benefits are required to be provided by this Agreement, the applicable plan or law, or any such payments under Sections 3 or 4 have accrued prior to and remain unpaid and owing to the Officer as of the effective date of such termination).  For purposes of this Agreement, the following terms shall have the following meanings:  Resignation for “Good Reason” means the Officer’s resignation within ninety (90) days following the Company’s failure to cure a material breach of this Agreement within thirty (30) days after the Officer gives the Company written notice of such breach within ninety (90) days of the occurrence of such breach.  “Cause” means the Officer’s fraud, dishonesty, willful misconduct, or gross negligence in her performance of her duties hereunder, or the Officer’s conviction for a crime of moral turpitude, or material breach by the Officer of this Agreement which the Officer fails to cure within thirty (30) days after the Company gives the Officer written notice of such breach.

 

(c)             If the Officer resigns her employment for Good Reason or the Company terminates the Officer’s employment without Cause (other than due to the Officer’s Disability) the Officer or her successors and assigns shall receive the severance pay and benefits hereafter provided.  The severance pay shall be an amount equal to one (1) times Annual Salary payable in substantially equal installments at least monthly for twelve (12) months after the termination date, plus if such termination occurs within three (3) months before or twenty-four (24) months after the occurrence of a “Change in Control,” an additional half times Annual Salary plus Target Bonus payable in substantially equal installments at least monthly for six (6) months beginning immediately after twelve (12) months following the termination date.  For purposes of this Agreement, “Change in Control” means one or more sales or dispositions, within a twelve (12) month period, of assets representing a majority of the value of the assets of the Company or the acquisition (whether by purchase or through a merger or otherwise) of common stock of the Company immediately following which the holders of common stock of the Company immediately prior to such acquisition cease to own directly or indirectly common stock of the Company or its legal successor representing more than fifty percent (50%) of the voting power of the common stock of the Company or its legal successor.

 

For the period for which severance pay is paid, i.e., twelve (12) or twenty-four (24) months following termination of employment (the “Severance Period”), the Officer and her family shall be entitled to continue to be covered under all employee benefit plans of the Company under which executive officers of the Company are covered and at the same cost and under the same terms and conditions as apply to executive officers, provided, however, that if the Company is unable under applicable law or the insurer will not permit the Officer to be covered under any such plan, the Company shall pay to the Officer an amount each month during the Severance Period equal to the Company’s cost of coverage for similarly situated executive officers.  For purposes of this Agreement, termination of employment and similar terms means a termination of employment constituting a “separation from service” within the meaning of Code Section 409A.  Notwithstanding the foregoing, to the extent necessary to avoid the Officer incurring a tax under Code Section 409A, any amount that is otherwise due within six (6) months following termination of employment shall be delayed until six months after termination of

 

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employment.  The provisions contained in this Section shall survive the termination of the Officer’s employment.

 

Section 6.               Certain Officer Covenants.  The Officer expressly covenants and agrees to and with the Company as hereinafter set forth in this Section 6.

 

(a)             Non-Competition.  During the Employment Term, and in the event that the Officer’s employment is voluntarily terminated by the Officer other than for Good Reason or is terminated by the Company for Cause, then for a period of twelve (12) months after the date of termination, the Officer shall not within the Area, directly or indirectly, acting alone or with others, on behalf of a competitor of the Company undertake to perform executive management responsibilities similar to those the Officer provides for the Company during the last twenty-four (24) months of her employment with the Company.  For purposes of this Agreement “Area” shall be defined as any state in which any skilled nursing facility or business office owned or operated by the Company as of the date of the termination of this Agreement.  The foregoing restrictions shall not, however, prohibit the Officer from performing services for a division or business unit of a competitor of the Company if such division or business unit does not provide goods or services competitive with those offered by the Company.  Notwithstanding anything herein to the contrary, the provisions of this Section shall not prohibit the Officer from acquiring less than 1% of the securities of any corporation which competes with the Company and whose shares are regularly traded on a nationally recognized stock exchange or over-the-counter market.

 

(b)            Prohibition Against Hiring Employees.  During the Employment Term and for a period of twelve (12) months after the date of termination, regardless of the reason for termination, the Officer shall not directly or indirectly solicit for employment, or directly or indirectly assist others in soliciting for employment, any person employed by the Company whom the Officer managed or supervised, or with whom the Officer worked directly, during the then last twelve (12) months of the Officer’s termination of employment, whether or not such person is a full-time or part-time employee of the Company.

 

(c)             Confidential Information.  The Officer shall receive and hold all Confidential Information and Trade Secrets in trust for the Company and in the strictest confidence.   Except to the extent required in the performance of her duties hereunder, the Officer shall not at any time while he is employed by the Company or after termination of her employment, directly or indirectly, use, disclose, disseminate or otherwise publish “Confidential Information” or Trade Secrets.  For purposes of this Agreement, the term “Confidential Information” means data and information relating to the business of the Company (whether constituting a Trade Secret or not) which is or has been disclosed to the Officer or of which the Officer became aware as a consequence of or through her relationship with Company and which has value to the Company and is not generally known to the Company’s competitors.  Confidential Information shall include, without limitation, trade secrets, methods of operation, names of customers, price lists, financial information, personnel data and similar information, but shall not include any data or information which has been voluntarily disclosed to the public by the Company (except where such disclosure has been made by the Officer without authorization) or that has been independently developed and disclosed by others, or otherwise has entered the public domain through lawful means.  “Trade Secrets” means information of the Company, without regard to form, including, but not limited to, technical or nontechnical data,

 

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formulas, patterns, compilations, programs, devices, methods, techniques, drawings, processes, financial data, financial plans, product or service plans or lists of actual or potential customers or suppliers which is not commonly known by or available to the public and which information (i) derives economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use; and (ii) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.  The restrictions on use and disclosure of Confidential Information shall survive following the Officer’s termination of employment for so long as the information remains Confidential Information as defined by this Agreement.  The restrictions on use and disclosure of Trade Secrets shall survive following the Officer’s termination of employment for so long as the information is a trade secret under applicable law.

 

(d)            Return of Information.  Upon termination of the Officer’s employment for whatever reason, the Officer shall return to or leave with the Company, without making or retaining copies thereof, all documents, records, notebooks and similar repositories containing Confidential Information.

 

(e)             Reasonableness of Covenants.  The Officer has carefully considered the nature and extent of the restrictions upon him and the rights and remedies conferred upon the Company under this Section 6, and hereby acknowledges and agrees that, in light of her position, the information to which he will be privy, and the nature of the business, the restrictions are reasonable in time and territory, are designed to eliminate unfair competition to the Company, are fully required to protect the Company’s legitimate interests, and do not confer a benefit upon the Company disproportionate to any detriment to the Officer.

 

If the Officer breaches any of the agreements contained in this Section 6, then, in addition to any other rights or remedies which the Company may have, the Company shall have the right to an accounting and repayment of all profits or other benefits directly realized as a result of any such breach, to collect any damages caused by such breach in addition to those specifically listed herein, and to enforce any legal or equitable remedy (including injunctive relief) that it may have against the Officer to prevent further injury to the Company resulting from such breach.

 

The Officer acknowledges that any breach of the agreements contained in this Section could cause irreparable harm to the Company.  The Officer acknowledges that damages in the event of Officer’s breach of this Agreement will be difficult, if not impossible, to ascertain and therefore it is agreed that the Company, in addition to, and without limiting any other remedy or right it may have under this Agreement or the law, will have the right to an injunction enjoining any such breach.  The Officer agrees to reimburse the Company for all costs and expenses, including reasonable attorney’s fees, incurred by the Company because of any breach of this provision, but only in the event that the Officer fails to cure such breach, within ten (10) days after being provided written notice thereof by the Company.

 

All covenants and provisions contained in Section 6 shall survive the termination of the Officer’s employment, regardless of the reason of such termination.

 

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The Officer acknowledges that the Company recommends that the Officer review this Agreement with her own legal counsel prior to signing this Agreement and the Officer confirms that the Officer has had ample opportunity to do so.

 

Section 7.               Notices.  Any notice or other communication required or desired to be given hereunder shall be in writing and shall be deemed duly given when personally delivered or when deposited in the United States mail, first class postage prepaid, properly addressed to the parties at their respective addresses below or such addresses as shall be given by notice of any party.

 

The Company:

 

Chief Executive Officer

AdCare Health Systems, Inc.

Two Buckhead Plaza

3050 Peachtree Road NW

Suite 355

Atlanta, GA  30305

 

The Officer:                                                         The most recent address that the Company has on file.

 

Section 8.               Actions by the Company.  Any determination, consent, waiver, agreement, or other action under or with respect to this Agreement and its implementation of or by the Company shall not be deemed made, taken or effected hereunder unless made, taken or effected in a writing signed by a duly authorized officer of the Company.

 

Section 9.               Waiver; Remedies Cumulative.  No waiver of any right or option hereunder by any party shall operate as a waiver of any other right or option, or the same right or option as respects any subsequent occasion for its exercise, or of any legal remedy.  No waiver by any party of any breach of this Agreement or of any agreement or covenant contained herein shall be held to constitute a waiver of any other breach or a continuation of the same breach.  All remedies provided by this Agreement are in addition to all other remedies by it or the law provided.

 

Section 10.             Assignment.  This Agreement shall be binding upon and inure to the benefit of the legal successors of the Company.  Neither this Agreement nor any rights hereunder shall be assignable and any such purported assignment by her shall be void and of no force or effect; provided, however, that in the event of the Officer’s death, any amounts that are unpaid and owing to the Officer or rights that are exercisable by the Officer shall be paid to or exercisable by her estate.

 

Section 11.             Applicable Law.  This Agreement shall be governed and construed in accordance with the laws of the State of Georgia.  Any action for breach or to enforce the terms of this Agreement, or in any way arising out of or related to Officer’s employment with the company or this Agreement, including without limitation the covenants and provisions contained in Section 6, shall be brought in the Superior Court of Fulton County, Georgia or in a federal

 

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court sitting in Atlanta, Georgia, and the parties hereto each consent to jurisdiction and venue in such courts.

 

Section 12.             Indemnification.  The Company shall indemnify the Officer for her actions and omissions as an officer and provide for advancement of expenses in connection therewith to the maximum extent permitted by its state of incorporation, but not for the Officer’s gross negligence or willful misconduct.  The Company shall maintain, during the Employment Term and for at least three (3) years thereafter, an adequate officer’s liability policy covering the Officer for actions and omissions during the Employment Term.

 

Section 13.             Severability and Judicial Modification.  The parties agree that each provision of this Agreement is separate, distinct and severable from the other remaining provisions of this Agreement, and that the invalidity or unenforceability of any Agreement provision shall not effect the validity and unenforceability of any other provision or provisions of this Agreement.  Further, if any provision of this Agreement is ruled invalid or unenforceable by a court of competent jurisdiction because of the conflict between such provision and any applicable law or public policy, it is the intent of the parties that such provision shall be modified by the Court to the extent appropriate to render the provision reasonable valid and enforceable.  If any court of competent jurisdiction shall at any time deem the duration of the restrictions of Section 6, the “Area” as defined in Section 6, or any provisions of Section 6 unenforceable, the duration of the applicable restrictions set forth in Section 6 shall be deemed to be the longest duration permissible by law under the circumstances, the “Area” shall be deemed to comprise the largest territory permissible by law under the circumstances, and the remainder of the Agreement shall nevertheless stand.  The court in each case shall reduce the aforementioned provisions to permissible duration or territory.

 

Section 14.             Miscellaneous.  This Agreement constitutes the entire understanding between the parties concerning the Officer’s employment with the Company and supersedes any and all previous agreements between the Officer and the Company concerning such employment.  Except for judicial modification as set forth in Section 13, this Agreement cannot be amended or modified in any respect, unless such amendment or modification is evidenced by a written instrument signed by both the Company and the Officer.  The captions of the various sections of this Agreement are not a part of the context hereof, are inserted merely for convenience in locating the different provisions hereof and shall be ignored in construing this Agreement.

 

The parties have executed multiple counterparts of this Agreement, each of which shall be deemed to be an original, as of the date set forth at the beginning hereof.

 

	
THE COMPANY:
    	
 
    	
THE   OFFICER:
    
	
 
    	
 
    	
 
    
	
ADCARE HEALTH SYSTEMS, INC.
    	
 
    	
MELISSA   L. GREEN
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Boyd P. Gentry
    	
 
    	
/s/   Melissa L. Green
    
	
 
    	
Boyd   P. Gentry,
    	
 
    	
Melissa   L. Green
    
	
 
    	
President   and CEO
    	
 
    	
 
    

 

7June 30, 2012 10-Q  Exhibit 10.1

Exhibit 10.1 

(As amended through June 7, 2012)

MICROVISION, INC.

2006 INCENTIVE PLAN, AS AMENDED

	DEFINED TERMS 

Exhibit A, which is incorporated by reference, defines the terms used in the Plan and sets forth certain operational rules related
to those terms. 

	EFFECTIVE DATE 

This Microvision, Inc. 2006 Incentive Plan, as amended, amends, restates and renames the Company's 1996 Stock Option
Plan. The Plan was originally adopted by the Board on July 10, 1996 and approved by the stockholders of the Company on August 9,
1996. This amendment and restatement of the Plan, shall become effective if, and at such time as, the stockholders of the Company
have approved this amendment and restatement. 

	PURPOSE 

The purpose of the Microvision, Inc. 2006 Incentive Plan, as amended, is to provide means by which the Company may
attract, reward and retain the services or advice of current or future employees, officers, consultants or independent contractors of, and
other advisors to, the Company and to provide added incentives to them by encouraging stock ownership in the Company.

	ADMINISTRATION 

The Administrator has discretionary authority, subject only to the express provisions of the Plan, to interpret the Plan;
determine eligibility for and grant Awards; determine, modify or waive the terms and conditions of any Award; prescribe forms, rules and
procedures; and otherwise do all things necessary to carry out the purposes of the Plan. In the case of any Award intended to be
eligible for the performance-based compensation exception under Section 162(m), the Administrator will exercise its discretion
consistent with qualifying the Award for that exception. Determinations of the Administrator made under the Plan will be conclusive and
will bind all parties. 

	LIMITS ON AWARDS UNDER THE PLAN 

	Number of Shares. A maximum of 2,750,000 shares of Stock may be delivered in satisfaction of Awards under the
Plan. The number of shares of Stock delivered in satisfaction of Awards shall, for purposes of the preceding sentence, be determined
net of shares of Stock withheld by the Company in payment of the exercise price of the Award or in satisfaction of tax withholding
requirements with respect to the Award. The limit set forth in this Section 5(a) shall be construed to comply with Section 422 of the
Code and regulations thereunder. To the extent consistent with the requirements of Section 422 of the Code and regulations
thereunder, and with other applicable legal requirements (including applicable stock exchange requirements), Stock issued under
awards of an acquired company that are converted, replaced, or adjusted in connection with the acquisition shall not reduce the number
of shares available for Awards under the Plan. 

	Type of Shares. Stock delivered by the Company under the Plan may be authorized but unissued Stock
or previously issued Stock acquired by the Company. No fractional shares of Stock will be delivered under the Plan.

	Section 162(m) Limits. The maximum number of shares of Stock for which Stock Options may be granted to any
person in any calendar year and the maximum number of shares of Stock subject to SARs granted to any person in any calendar year
will each be 250,000. The maximum number of shares subject to other Awards granted to any person in any calendar year will be
250,000 shares. The maximum amount payable to any person in any year under Cash Awards will be $3,000,000. The foregoing
provisions will be construed in a manner consistent with Section 162(m).

	ELIGIBILITY AND PARTICIPATION 

The Administrator may grant Awards to any current or future Employee, officer, director, consultant or independent contractor
of, or other advisor to, the Company or its subsidiaries. Eligibility for ISOs is limited to employees of the Company or of a "parent
corporation" or "subsidiary corporation" of the Company as those terms are defined in Section 424 of the Code.

	RULES APPLICABLE TO AWARDS 

	All Awards 

	Award Provisions. The Administrator will determine the terms of all Awards, subject to the limitations provided herein. By
accepting any Award granted hereunder, the Participant agrees to the terms of the Award and the Plan. Notwithstanding any provision
of this Plan to the contrary, awards of an acquired company that are converted, replaced or adjusted in connection with the acquisition
may contain terms and conditions that are inconsistent with the terms and conditions specified herein, as determined by the
Administrator. 

	Term of Plan. No Awards may be made after September 21, 2016, but previously granted Awards may continue
beyond that date in accordance with their terms. 

	Transferability. Neither ISOs nor, except as the Administrator otherwise expressly provides, other Awards may
be transferred other than by will or by the laws of descent and distribution, and during a Participant's lifetime ISOs (and, except as the
Administrator otherwise expressly provides, other non-transferable Awards requiring exercise) may be exercised only by the
Participant. 

	Vesting, Etc. The Administrator may determine the time or times at which an Award will vest or become
exercisable and the terms on which an Award requiring exercise will remain exercisable. Without limiting the foregoing, the
Administrator may at any time accelerate the vesting or exercisability of an Award, regardless of any adverse or potentially adverse tax
consequences resulting from such acceleration. Unless the Administrator expressly provides otherwise, however, the following rules will
apply: immediately upon the cessation of the Participant's Employment, each Award requiring exercise that is then held by the
Participant or by the Participant's permitted transferees, if any, will cease to be exercisable and will terminate, and all other Awards that
are then held by the Participant or by the Participant's permitted transferees, if any, to the extent not already vested will be forfeited,
except that: 

	subject to (B) and (C) below, all Stock Options and SARs held by the Participant or the Participant's permitted transferees, if any,
immediately prior to the cessation of the Participant's Employment, to the extent then exercisable, will remain exercisable for the lesser
of (i) a period of three months or (ii) the period ending on the latest date on which such Stock Option or SAR could have been exercised
without regard to this Section 7(a)(4), and will thereupon terminate; 

	all Stock Options and SARs held by a Participant or the Participant's permitted transferees, if any, immediately prior to the
Participant's death or Disability, to the extent then exercisable, will remain exercisable for the lesser of (i) the one year period ending
with the first anniversary of the Participant's death or Disability or (ii) the period ending on the latest date on which such Stock Option or
SAR could have been exercised without regard to this Section 7(a)(4), and will thereupon terminate; and 

	all Stock Options and SARs held by a Participant or the Participant's permitted transferees, if any, immediately prior to the
cessation of the Participant's Employment will immediately terminate upon such cessation if the Administrator in its sole discretion
determines that such cessation of Employment has resulted for reasons which cast such discredit on the Participant as to justify
immediate termination of the Award. 

	Taxes. The Administrator will make such provision for the withholding of taxes as it deems necessary. The
Administrator may, but need not, hold back shares of Stock from an Award or permit a Participant to tender previously owned shares of
Stock in satisfaction of tax withholding requirements (but not in excess of the minimum withholding required by law). 

	Dividend Equivalents, Etc. The Administrator may provide for the payment of amounts in lieu of cash dividends
or other cash distributions with respect to Stock subject to an Award. Any entitlement to dividend equivalents or similar entitlements
shall be established and administered consistent either with exemption from, or compliance with, the requirements of Section 409A to
the extent applicable.

	Foreign Qualified Grants. Awards under this Plan may be granted to officers and Employees of the Company
and other persons described in Section 6 who reside in foreign jurisdictions as the Administrator may determine from time to time. The
Administrator may adopt supplements to the Plan as needed to comply with the applicable laws of such foreign jurisdictions and to give
Participants favorable treatment under such laws; provided, however that no award shall be granted under any such
supplement on terms more beneficial to such Participants than those permitted by this Plan. 

	Corporate Mergers, Acquisitions, Etc. The Administrator may grant Awards under this Plan having terms,
conditions and provisions that vary from those specified in this Plan provided that such Awards are granted in substitution for, or in
connection with the assumption of, existing Awards granted or issued by another corporation and assumed or otherwise agreed to be
provided for by the Company pursuant to or by reason of a transaction involving a corporate merger, consolidation, acquisition of
property or stock, reorganization or liquidation to which the Company is a party. 

	Rights Limited. Nothing in the Plan will be construed as giving any person the right to continued employment or
service with the Company or its Affiliates, or any rights as a stockholder except as to shares of Stock actually issued under the Plan.
The loss of existing or potential profit in Awards will not constitute an element of damages in the event of termination of Employment for
any reason, even if the termination is in violation of an obligation of the Company or Affiliate to the Participant. 

	Section 162(m). This Section 7(a)(10) applies to any Performance Award intended to qualify as performance-based
for the purposes of Section 162(m) other than a Stock Option or SAR. In the case of any Performance Award to which this
Section 7(a)(10) applies, the Plan and such Award will be construed to the maximum extent permitted by law in a manner consistent
with qualifying the Award for such exception. With respect to such Performance Awards, the Administrator will preestablish, in writing,
one or more specific Performance Criteria no later than 90 days after the commencement of the period of service to which the
performance relates (or at such earlier time as is required to qualify the Award as performance-based under Section 162(m)). Prior to
grant, vesting or payment of the Performance Award, as the case may be, the Administrator will certify whether the applicable
Performance Criteria have been attained and such determination will be final and conclusive. No Performance Award to which this
Section 7(a)(10) applies may be granted after the first meeting of the stockholders of the Company held in 2011 until the listed
performance measures set forth in the definition of "Performance Criteria" (as originally approved or as subsequently amended) have
been resubmitted to and reapproved by the stockholders of the Company in accordance with the requirements of Section 162(m) of the
Code, unless such grant is made contingent upon such approval.

	Awards Requiring Exercise 

	Time And Manner Of Exercise. Unless the Administrator expressly provides otherwise, an Award requiring
exercise by the holder will not be deemed to have been exercised until the Administrator receives a notice of exercise (in form
acceptable to the Administrator) signed by the appropriate person and accompanied by any payment required under the Award. If the
Award is exercised by any person other than the Participant, the Administrator may require satisfactory evidence that the person
exercising the Award has the right to do so. Awards may be exercised in whole or in part. 

	Exercise Price. The exercise price (or the base value from which appreciation is to be measured) of each Award
requiring exercise shall be 100% (in the case of an ISO granted to a ten-percent shareholder within the meaning of Section 422(b)(6) of
the Code, 110%) of the fair market value of the Stock subject to the Award, determined as of the date of grant, or such higher amount
as the Administrator may determine in connection with the grant. Fair market value shall be determined by the Administrator consistent
with the requirements of Section 422 and Section 409A. Without the affirmative vote of holders of a majority of the shares of
Stock cast in person or by proxy at a meeting of the stockholders of the Company at which a quorum representing a majority
of all outstanding shares of Stock is present or represented by proxy, the Committee shall not approve a program providing for either
(a) the cancellation of outstanding Awards requiring exercise and the grant in substitution therefor of new Awards having a lower
exercise price that has the effect of a repricing or (b) the amendment of such Awards to reduce the exercise price thereof.  The
preceding sentence shall not be construed to apply to: (i) "issuing or assuming a stock option in a transaction to which section 424(a)
applies," within the meaning of Section 424 of the Code or (ii) the substitution or assumption of an Award by reason of or pursuant to a
corporate transaction, to the extent such substitution or assumption would not be treated as a grant of a new stock right or a change in
the form of payment for purposes of Section 409A of the Code within the meaning of Prop. Treas. Reg.
Section 1.409A-1(b)(5)(iii)(D)(3), Notice 2005-1, A-4(d) and any subsequent Section 409A guidance. 

	Payment Of Exercise Price. Where the exercise of an Award is to be accompanied by payment, the Administrator may
determine the required or permitted forms of payment, subject to the following: all payments will be by cash or check acceptable to the
Administrator, or, if so permitted by the Administrator and if legally permissible, (i) through the delivery of shares of Stock that have
been outstanding for at least six months (unless the Administrator approves a shorter period) and that have a fair market value equal to
the exercise price, (ii) by delivery to the Company of a promissory note of the person exercising the Award, payable on such terms as
are specified by the Administrator, (iii) through a broker-assisted exercise program acceptable to the Administrator, (iv) by other means
acceptable to the Administrator, or (v) by any combination of the foregoing permissible forms of payment. The delivery of shares in
payment of the exercise price under clause (a)(i) above may be accomplished either by actual delivery or by constructive delivery
through attestation of ownership, subject to such rules as the Administrator may prescribe. 

	409A Exemption. Except as the Administrator otherwise determines, no Award requiring exercise shall have
deferral features, or shall be administered in a manner, that would cause such Award to fail to qualify for exemption from Section
409A.

	Awards Not Requiring Exercise

Restricted Stock and Unrestricted Stock, whether delivered outright or under Awards of Stock Units or other Awards that
do not require exercise, may be made in exchange for such lawful consideration, including services, as the Administrator determines.
Any Award resulting in a deferral of compensation subject to Section 409A shall be construed to the maximum extent possible, as
determined by the Administrator, consistent with the requirements of Section 409A.

	EFFECT OF CERTAIN TRANSACTIONS 

	Mergers, etc. Except as otherwise provided in an Award, the following provisions shall apply in the event of a
Covered Transaction: 

	Assumption or Substitution. If the Covered Transaction is one in which there is an acquiring or surviving entity,
the Administrator may provide for the assumption of some or all outstanding Awards or for the grant of new awards in substitution
therefor by the acquiror or survivor or an affiliate of the acquiror or survivor. 

	Cash-Out of Awards. If the Covered Transaction is one in which holders of Stock will receive upon
consummation a payment (whether cash, non-cash or a combination of the foregoing), the Administrator may provide for payment (a
"cash-out"), with respect to some or all Awards, equal in the case of each affected Award to the excess, if any, of (A) the fair market
value of one share of Stock (as determined by the Administrator in its reasonable discretion) times the number of shares of Stock
subject to the Award, over (B) the aggregate exercise or purchase price, if any, under the Award (in the case of an SAR, the aggregate
base price above which appreciation is measured), in each case on such payment terms (which need not be the same as the terms of
payment to holders of Stock) and other terms, and subject to such conditions, as the Administrator determines. 

	Acceleration of Certain Awards. If the Covered Transaction (whether or not there is an acquiring or
surviving entity) is one in which there is no assumption, substitution or cash-out, each Award requiring exercise will become fully
exercisable, and the delivery of shares of Stock deliverable under each outstanding Award of Stock Units (including Restricted Stock
Units and Performance Awards to the extent consisting of Stock Units) will be accelerated and such shares will be delivered, prior to the
Covered Transaction, in each case on a basis that gives the holder of the Award a reasonable opportunity, as determined by the
Administrator, following exercise of the Award or the delivery of the shares, as the case may be, to participate as a stockholder in the
Covered Transaction. 

	Termination of Awards Upon Consummation of Covered Transaction. Each Award (unless assumed pursuant to
Section 8(a)(1) above), other than outstanding shares of Restricted Stock (which shall be treated in the same manner as other shares
of Stock, subject to Section 8(a)(5) below), will terminate upon consummation of the Covered Transaction. 

	Additional Limitations. Any share of Stock delivered pursuant to Section 8(a)(2) or Section 8(a)(3) above
with respect to an Award may, in the discretion of the Administrator, contain such restrictions, if any, as the Administrator deems
appropriate to reflect any performance or other vesting conditions to which the Award was subject. In the case of Restricted Stock, the
Administrator may require that any amounts delivered, exchanged or otherwise paid in respect of such Stock in connection with the
Covered Transaction be placed in escrow or otherwise made subject to such restrictions as the Administrator deems appropriate to
carry out the intent of the Plan.

	Change in and Distributions With Respect to Stock 

	Basic Adjustment Provisions. In the event of a stock dividend, stock split or combination of shares (including a reverse
stock split), recapitalization or other change in the Company's capital structure, the Administrator will make appropriate adjustments to
the maximum number of shares specified in Section 5(a) that may be delivered under the Plan and to the maximum share limits
described in Section 5(c), and will also make appropriate adjustments to the number and kind of shares of stock or securities subject to
Awards then outstanding or subsequently granted, any exercise prices relating to Awards and any other provision of Awards affected by
such change. 

	Certain Other Adjustments. The Administrator may also make adjustments of the type described in Section
8(b)(1) above to take into account distributions to stockholders other than those provided for in Section 8(a) and 8(b)(1), or any other
event, if the Administrator determines that adjustments are appropriate to avoid distortion in the operation of the Plan and to preserve
the value of Awards made hereunder, having due regard for the qualification of ISOs under Section 422 of the Code, the
performance-based compensation rules of Section 162(m), and the requirements of Section 409A, where applicable. 

	Continuing Application of Plan Terms. References in the Plan to shares of Stock will be construed to include any
stock or securities resulting from an adjustment pursuant to this Section 8.

	LEGAL CONDITIONS ON DELIVERY OF STOCK 

The Company will not be obligated to deliver any shares of Stock pursuant to the Plan or to remove any restriction from shares
of Stock previously delivered under the Plan until: (i) the Company is satisfied that all legal matters in connection with the issuance and
delivery of such shares have been addressed and resolved; (ii) if the outstanding Stock is at the time of delivery listed on any stock
exchange or national market system, the shares to be delivered have been listed or authorized to be listed on such exchange or system
upon official notice of issuance; and (iii) all conditions of the Award have been satisfied or waived. If the sale of Stock has not been
registered under the Securities Act of 1933, as amended, the Company may require, as a condition to exercise of the Award, such
representations or agreements as counsel for the Company may consider appropriate to avoid violation of such Act. The Company may
require that certificates evidencing Stock issued under the Plan bear an appropriate legend reflecting any restriction on transfer
applicable to such Stock, and the Company may hold the certificates pending lapse of the applicable restrictions. 

	AMENDMENT AND TERMINATION 

The Administrator may at any time or times amend the Plan or any outstanding Award for any purpose which may at the time
be permitted by law, and may at any time terminate the Plan as to any future grants of Awards; provided, that except as
otherwise expressly provided in the Plan the Administrator may not, without the Participant's consent, alter the terms of an Award so as
to affect adversely the Participant's rights under the Award, unless the Administrator expressly reserved the right to do so at the time of
the Award. Any amendments to the Plan shall be conditioned upon stockholder approval only to the extent, if any, such approval is
required by law (including the Code and applicable stock exchange requirements), as determined by the Administrator.

	OTHER COMPENSATION ARRANGEMENTS 

The existence of the Plan or the grant of any Award will not in any way affect the Company's right to Award a person bonuses
or other compensation in addition to Awards under the Plan.

	MISCELLANEOUS 

	Waiver of Jury Trial. By accepting an Award under the Plan, each Participant waives any right to a trial by jury in any
action, proceeding or counterclaim concerning any rights under the Plan and any Award, or under any amendment, waiver, consent,
instrument, document or other agreement delivered or which in the future may be delivered in connection therewith, and agrees that
any such action, proceedings or counterclaim shall be tried before a court and not before a jury. By accepting an Award under the Plan,
each Participant certifies that no officer, representative, or attorney of the Company has represented, expressly or otherwise, that the
Company would not, in the event of any action, proceeding or counterclaim, seek to enforce the foregoing waivers. 

	Limitation of Liability. Notwithstanding anything to the contrary in the Plan, neither the Company, any Affiliate, nor
the Administrator, nor any person acting on behalf of the Company, any Affiliate, or the Administrator, shall be liable to any Participant
or to the estate or beneficiary of any Participant or to any other holder of an Award by reason of any acceleration of income, or any
additional tax, asserted by reason of the failure of an Award to satisfy the requirements of Section 422 or Section 409A or by reason of
Section 4999 of the Code; provided, that nothing in this Section 12(b) shall limit the ability of the Administrator or the Company to
provide by separate express written agreement with a Participant for a gross-up payment or other payment in connection with any such
tax or additional tax.

EXHIBIT A

Definition of Terms

The following terms, when used in the Plan, will have the meanings and be subject to the provisions set forth below:

"Administrator": The Board, except that the Board may delegate (i) to one or more of its members such of its duties,
powers and responsibilities as it may determine; provided, that with respect to any delegation described in this clause (i) only the
Board may amend or terminate the Plan as provided in Section 10; (ii) to one or more officers of the Company the power to grant rights
or options to the extent permitted by Section 157(c) of the Delaware General Corporation Law; (iii) to one or more officers of the
Company the authority to allocate other Awards among such persons (other than officers of the Company) eligible to receive Awards
under the Plan as such delegated officer or officers determine consistent with such delegation; provided, that with respect to any
delegation described in this clause (iii) the Board (or a properly delegated member or members of the Board) shall have authorized the
issuance of a specified number of shares of Stock under such Awards and shall have specified the consideration, if any, to be paid
therefor; and (iv) to such Employees or other persons as it determines such ministerial tasks as it deems appropriate. In the event of
any delegation described in the preceding sentence, the term "Administrator" shall include the person or persons so delegated to the
extent of such delegation. 

"Affiliate": Any corporation or other entity owning, directly or indirectly, 50% or more of the outstanding Stock of the
Company, or in which the Company or any such corporation or other entity owns, directly or indirectly, 50% of the outstanding capital
stock (determined by aggregate voting rights) or other voting interests. However, for purposes of determining eligibility for the grant of a
Stock Option or SAR, the term "Affiliate" shall mean a person standing in a relationship to the Company such that the Company and
such person are treated as a single employer under Section 414(b) and Section 414(c) of the Code, in accordance with the definition of
"service recipient" under Section 409A of the Code.

"Award": Any or a combination of the following: 

(i) Stock Options. 

(ii) SARs.

(iii) Restricted Stock.

(iv) Unrestricted Stock.

(v) Stock Units, including Restricted Stock Units. 

(vi) Performance Awards.

(vii) Cash Awards.

(viii) Awards (other than Awards described in (i) through (vii) above) that are convertible into or otherwise based on Stock.

"Board": The Board of Directors of the Company.

"Cash Award": An Award denominated in cash.

"Code": The U.S. Internal Revenue Code of 1986 as from time to time amended and in effect, or any successor statute as
from time to time in effect.

"Company": Microvision, Inc.

"Covered Transaction": Any of (i) a consolidation, merger, or similar transaction or series of related transactions, including
a sale or other disposition of stock, in which the Company is not the surviving corporation or which results in the acquisition of all or
substantially all of the Company's then outstanding common stock by a single person or entity or by a group of persons and/or entities
acting in concert, (ii) a sale or transfer of all or substantially all the Company's assets, or (iii) a dissolution or liquidation of the
Company. Where a Covered Transaction involves a tender offer that is reasonably expected to be followed by a merger
described in clause (i) (as determined by the Administrator), the Covered Transaction shall be deemed to have occurred upon
consummation of the tender offer.

"Disability": The total and permanent disability of any Participant, as determined by the Administrator in its sole discretion.
Without limiting the generality of the foregoing, the Administrator may, but is not required to, rely on a determination of disability by the
Company's long term disability carrier or the Social Security Administration.

"Employee": Any person who is employed by the Company or an Affiliate.

"Employment": A Participant's employment or other service relationship with the Company and its Affiliates. Employment
will be deemed to continue, unless the Administrator expressly provides otherwise, so long as the Participant is employed by, or
otherwise is providing services in a capacity described in Section 6 to the Company or its Affiliates. If a Participant's employment or
other service relationship is with an Affiliate and that entity ceases to be an Affiliate, the Participant's Employment will be deemed to
have terminated when the entity ceases to be an Affiliate unless the Participant transfers Employment to the Company or its remaining
Affiliates.

"ISO": A Stock Option intended to be an "incentive stock option" within the meaning of Section 422 of the Code. Each
option granted pursuant to the Plan will be treated as providing by its terms that it is to be a non-incentive stock option unless, as of the
date of grant, it is expressly designated as an ISO. 

"Participant": A person who is granted an Award under the Plan.

"Performance Award": An Award subject to Performance Criteria. The Committee in its discretion may grant Performance
Awards that are intended to qualify for the performance-based compensation exception under Section 162(m) and Performance Awards
that are not intended so to qualify.

"Performance Criteria": Specified criteria, other than the mere continuation of Employment or the mere passage of time,
the satisfaction of which is a condition for the grant, exercisability, vesting or full enjoyment of an Award. For purposes of Awards that
are intended to qualify for the performance-based compensation exception under Section 162(m), a Performance Criterion will mean an
objectively determinable measure of performance relating to any or any combination of the following (measured either absolutely or by
reference to an index or indices and determined either on a consolidated basis or, as the context permits, on a divisional, subsidiary,
line of business, project or geographical basis or in combinations thereof): sales; revenues; assets; expenses; earnings before or after
deduction for all or any portion of interest, taxes, depreciation, or amortization, whether or not on a continuing operations or an
aggregate or per share basis; return on equity, investment, capital or assets; one or more operating ratios; borrowing levels, leverage
ratios or credit rating; market share; capital expenditures; cash flow; stock price; stockholder return; sales of particular products or
services; customer acquisition or retention; acquisitions and divestitures (in whole or in part); joint ventures and strategic alliances;
spin-offs, split-ups and the like; reorganizations; or recapitalizations, restructurings, financings (issuance of debt or equity) or refinancings. A
Performance Criterion and any targets with respect thereto determined by the Administrator need not be based upon an increase, a
positive or improved result or avoidance of loss. To the extent consistent with the requirements for satisfying the performance-based
compensation exception under Section 162(m), the Administrator may provide in the case of any Award intended to qualify for
such exception that one or more of the Performance Criteria applicable to such Award will be adjusted in an objectively determinable
manner to reflect events (for example, but without limitation, acquisitions or dispositions) occurring during the performance period that
affect the applicable Performance Criterion or Criteria.

"Plan": The Microvision, Inc. 2006 Incentive Plan, as amended, as from time to time amended and in effect.

"Restricted Stock": Stock subject to restrictions requiring that it be redelivered or offered for sale to the Company if
specified conditions are not satisfied.

"Restricted Stock Unit": A Stock Unit that is, or as to which the delivery of Stock or cash in lieu of Stock is, subject to the
satisfaction of specified performance or other vesting conditions.

"Section 162(m)": Section 162(m) of the Code.

"Section 409A": Section 409A of the Code.

"SAR": A right entitling the holder upon exercise to receive an amount (payable in shares of Stock of equivalent value)
equal to the excess of the fair market value of the shares of Stock subject to the right over the fair market value of such shares at the
date of grant. 

"Stock": Common Stock of the Company, par value $.001 per share.

"Stock Option": An option entitling the holder to acquire shares of Stock upon payment of the exercise price.

"Stock Unit": An unfunded and unsecured promise, denominated in shares of Stock, to deliver Stock or cash measured by
the value of Stock in the future.

"Unrestricted Stock": Stock not subject to any restrictions under the terms of the Award.

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