Document:

2016 10K.A Exhibit 10.24 Updated RSU Agreement (Non-Employee Directors)

		

			 

		

		
			 
		

		
			READING INTERNATIONAL, INC.
		

		
			RESTRICTED STOCK UNIT AGREEMENT
		

		
			[Non-Employee Directors]
		

		
			This Restricted Stock Unit Agreement (this "Agreement") is made and entered into as of this ______ day of _________, 2017 ("Grant Date") by and between Reading International, Inc., a Nevada corporation (the "Company") and ______________ (the "Recipient").  Capitalized terms not defined herein shall have the meaning ascribed to them the in the Company’s 2010 Stock Incentive Plan, as amended (the “Plan”).
		

		
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				 1.
			Grant of Restricted Stock Units.  The Company hereby grants to the Recipient _______ share units (such units, the “Restricted Stock Units”), subject to all of the terms and conditions of this Restricted Stock Unit Agreement and the Plan.

			
	
			
				 2.
			Vesting and Payment.

			
	
			
				 2.1
			Vesting Schedule. Subject to the limitations set forth in this Section 2, Restricted Stock Units will vest, if at all, in accordance with the vesting schedule set forth in the Grant Notice.

			
	
			
				 2.2
			Forfeiture upon Termination.  

		
			Subject to the provisions of Sections 2.3, upon termination of the Recipient’s Services, whether by the Company or by the Recipient, any unvested Restricted Stock Units shall be immediately forfeited and neither the Recipient nor any of the Recipient’s successors, heirs, assigns or personal representatives shall thereafter have any further rights or interests in such Restricted Stock Units. 
		

			
	
			
				 2.3
			Acceleration of Vesting.

			
	
			
				 (a)
			In the event that of Recipient’s death or Disability (as defined in the Plan), all unvested Restricted Stock Units shall immediately vest as of the date of death or Disability.  

			
	
			
				 (b)
			In the event of a Change of Control, and the Recipient is not a Participant in such Change in Control, all unvested Restricted Stock Units shall immediately vest as of the date of such Change of Control.  

			
	
			
				 (c)
			In the event of a Corporate Transaction in which the Restricted Stock Units are not to be Appropriately Replaced at or prior to the effective time of such Corporate Transaction, the vesting of all Restricted Stock Units which are not otherwise fully vested shall automatically accelerate so that all such Restricted Stock Units shall, immediately prior to the effective time of the Corporate Transaction, become fully vested, free of all restrictions.

		 

 

			
	
			
				 (d)
			For purposes of this Section 2.3:

			
	
			
				 (i)
			Restricted Stock Units shall be considered “Appropriately Replaced” if, at or prior to the Corporate Transaction, in the judgment of the Committee as constituted at the time the Corporate Transaction is proposed or announced to the Company (the “Evaluating Committee”), the Restricted Stock Units or a substituted award will confer the right to receive, for each share of Common Stock that may be received pursuant to the Restricted Stock Units existing immediately prior to the Corporate Transaction, on substantially the same vesting and other terms and conditions  as were applicable to the Restricted Stock Units immediately prior to the Corporate Transaction, the consideration (whether stock, cash or other securities or property) to be received in the Corporate Transaction by holders of Common Stock for each such share held on the effective date of such transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding shares of Common Stock); provided,  however, that if such consideration to be received in the transaction constituting a Corporate Transaction is not solely cash and/or common stock of the successor company or its parent or subsidiary, the Evaluating Committee may, if the obligations are to be assumed by the successor company, or its parent or subsidiary, approve that the consideration to be received upon the exercise or vesting of the Restricted Stock Units (or the substituted award) will be common stock of the successor company or its parent or subsidiary substantially equal in fair market value to the per-share consideration received by holders of Common Stock in the transaction constituting a Corporate Transaction.  The determination of such substantial equality of value of consideration shall be made by the Evaluating Committee in its sole discretion and its determination shall be conclusive and binding.

			
	
			
				 (ii)
			The term “Change in Control” shall mean:

			
	
			
				 (A)
			a change, after the Grant Date, in the composition of the Board such that the Incumbent Board ceases for any reason to constitute at least a majority of the Board; or

			
	
			
				 (B)
			after the Grant Date a Person (as defined below) other than a Permitted Holder (as defined below) becomes the “Beneficial Owner”  (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of securities of the Company representing  in the aggregate  thirty percent (30%) or more of the then outstanding  Voting Securities of the Company; provided,  however, that a Change in Control shall not be deemed to have occurred for purposes of this clause (B) solely as the result of:

		
			 (1) any acquisition directly from the Company, other than an acquisition by virtue of the exercise of a conversion privilege 
		

		 

 

		unless the security being so converted itself was acquired directly from the Company, 
		

		
			(2) any repurchase of securities by the Company,
		

		
			 (3) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any entity controlled by the Company, and
		

		
			 (4) any acquisition pursuant to a transaction that is excluded from the definition of Corporate Transaction pursuant to approval by the Incumbent Board.
		

			
	
			
				 (iii)
			The term “Corporate Transaction” shall mean: 

			
	
			
				 (A)
			the consummation of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets of the Company, whether directly or indirectly through the sale of any one or more of the Company’s subsidiaries or the assets of such one or more subsidiaries; excluding,  however, any such transaction approved by the Incumbent Board (as defined below); or

			
	
			
				 (B)
			the liquidation or dissolution of the Company.

			
	
			
				 (iv)
			The term “Incumbent Board” shall mean the individuals who, as of the Grant Date, constitute the entire Board together with any individual(s) who becomes a member of the Board subsequent to the Grant Date, whose election, or nomination for election by the Company’s stockholders, was approved by a vote of at least a majority of those individuals who are members of the Board and who were also members of the then-Incumbent Board (or deemed to be such pursuant to this proviso); provided,  however, that any such individual whose initial assumption of office occurs as a result of either an actual or threatened election contest (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board shall not be so considered as a member of the Incumbent Board.

			
	
			
				 (v)
			The term “Participant” in a Change in Control or a Corporate Transaction shall mean any Person who, after such Change in Control or Corporate Transaction either (a) is or controls any Person whose acquisition or control of securities of the Company gives rise to the Change in Control pursuant to Section 2.3(d)(ii)(B)  above, or (b) is or controls any Permitted Holder as of the effective date of such Change in Control or Corporate Transaction but was not or did not control such Permitted Holder as of the date hereof.

			
	
			
				 (vi)
			The term “Permitted Holder” shall mean (i) the Company or any trustee or other fiduciary holding securities under an employee benefit plan 
		

		 

 

			of the Company, (ii) any Person who, since the Grant Date, has continuously been the Beneficial Owner of not less than thirty percent (30%) of the Voting Securities, or (iii) any Person controlled, directly or indirectly, by one or more of the foregoing Persons referred to in the immediately preceding clause (ii).

			
	
			
				 (vii)
			The term “Person” shall mean any individual  (whether acting in an individual capacity or in a representative capacity so as to have sole or shared voting power of Voting Securities), entity (including, without limitation, any corporation, charitable or not-for profit corporation, private foundation, partnership, limited liability company, trust (including, without limitation, any private, charitable or split-interest trust), joint venture, association or governmental body) or group (as defined in Section 13(d)(3) or 14(d)(2) of the Exchange Act and the rules and regulations thereunder.

			
	
			
				 (viii)
			Services shall mean Recipient’s services as a Director of the Company or any successor.

			
	
			
				 (ix)
			The term “Voting Securities” shall mean all securities of a corporation having the right under ordinary circumstances to vote in an election of the board of directors of such corporation, or other interests having comparable rights to elect managers or fiduciary persons or boards in non-corporate entities.  As of the date hereof, the Voting Securities of the Company includes the shares of Class B common stock of the Company.

			
	
			
				 2.4
			Payment. If Restricted Stock Units vest, then within thirty (30) days after the applicable vesting date (or, if the Recipient has, prior to vesting, delivered a written request to defer delivery in a form specified by the Board or the Committee, but in no event later than March 15 of the next calendar year after the year in which such vesting occurs), the Company shall deliver to the Recipient, or if applicable the Recipient’s estate, that number of shares of Common Stock equal to the number of Restricted Stock Units which vested on such vesting date as set forth above.

			
	
			
				 2.5
			Taxes.   On the vesting date, the Recipient shall recognize taxable income in respect of the Common Stock deliverable and the Company shall report such taxable income to the appropriate taxing authorities in respect thereof as it determines to be necessary and appropriate.  

			
	
			
				 2.6
			Certificate.  Subject to Sections 2.4 and 2.4 above, as soon as practicable after the vesting of the Restricted Stock Units, the Company shall deliver or cause to be delivered one or more certificates issued in the Recipient’s name representing shares of Common Stock equal to the number of vested Restricted Stock Units.  If a valid SEC Form S-8 Registration Statement is not in effect at the time, the Certificate shall set forth restrictive legends advising the Recipient that the shares of Common Stock have not been registered under the securities laws of the United States or the laws of any state and that the sale or other disposition of such shares is prohibited unless such sale or other disposition is made in compliance with all such laws.

		 

 

			
	
			
				 3.
			Adjustments. Pursuant to Section 11 of the Plan, in the event of a change in capitalization, the Board shall make such equitable changes or adjustments to the number and kind of securities or other property (including cash) issued or issuable in respect of outstanding Restricted Stock Units.

			
	
			
				 4.
			Notices.  All notices and other communications under this Restricted Stock Unit Agreement shall be in writing and shall be given by e-mail, first class mail, certified or registered with return receipt requests, and shall be deemed to have been duly given three days after mailing (or one-day in case of delivery by e-mail) to the respective parties, as follows: (i) if to the Company, (a) if by mail, addressed to the Company in care of its Corporate Secretary at the principal executive office of the Company, or (b) if by e-mail, addressed to the care of the Corporate Secretary at corporatesecretary@readingrdi.com and (ii) if to the Recipient, using the contact information on file with the Company.  Either party hereto may change such party’s address for notices by notice duly given pursuant hereto.

			
	
			
				 5.
			Protections against Violations of Agreement.  

			
	
			
				 5.1
			No purported sale, assignment, mortgage, hypothecation, transfer, charge, pledge, encumbrance, gift, transfer in trust (voting or other) or other disposition or creation of a security interest in or lien on, any of the Restricted Stock Units or any agreement or commitment to do any of the foregoing (each a “Transfer”) by any holder thereof in violation of the provisions of this Restricted Stock Unit Agreement will be valid, except (i) a transfer for estate planning purposes, or (ii) with the prior written consent of the Board (such consent shall be granted or withheld in the sole discretion of the Board).

			
	
			
				 5.2
			Any purported Transfer of Restricted Stock Units or any economic benefit or interest therein in violation of this Restricted Stock Unit Agreement shall be null and void ab initio, and shall not create any obligation or liability of the Company, and any person purportedly acquiring any Restricted Stock Units or any economic benefit or interest therein transferred in violation of this Restricted Stock Unit Agreement shall not be entitled to receive any Common Stock.

			
	
			
				 6.
			Taxes. BY SIGNING THIS RESTRICTED STOCK UNIT AGREEMENT, THE RECIPIENT REPRESENTS THAT HE OR SHE HAS REVIEWED WITH HIS OR HER OWN TAX ADVISORS THE FEDERAL, STATE, LOCAL AND FOREIGN TAX CONSEQUENCES OF THE TRANSACTIONS CONTEMPLATED BY THIS RESTRICTED STOCK UNIT AGREEMENT AND THAT HE OR SHE IS RELYING SOLELY ON SUCH ADVISORS AND NOT ON ANY STATEMENTS OR REPRESENTATIONS OF THE COMPANY OR ANY OF ITS AGENTS.  THE RECIPIENT UNDERSTANDS AND AGREES THAT HE OR SHE (AND NOT THE COMPANY) SHALL BE RESPONSIBLE FOR ANY TAX LIABILITY THAT MAY ARISE AS A RESULT OF THE TRANSACTIONS CONTEMPLATED BY THIS RESTRICTED STOCK UNIT AGREEMENT.

			
	
			
				 7.
			Failure to Enforce Not a Waiver. The failure of the Company to enforce at any time any provision of this Restricted Stock Unit Agreement shall in no way be construed to be a waiver of such provision or of any other provision hereof.

		 

 

			
	
			
				 8.
			Governing Law. This Restricted Stock Unit Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Nevada applicable to contracts made and to be performed herein.  Any suit, action or proceeding with respect to this Restricted Stock Unit Agreement, or any judgment entered by any court in respect of any thereof, shall be brought in any court of competent jurisdiction in the State of Nevada, and the Company and the Recipient hereby submit to the exclusive jurisdiction of such courts for the purpose of any such suit, action, proceeding or judgment.  The Recipient and the Company hereby irrevocably waive (i) any objections which it may now or hereafter have to the laying of the venue of any suit, action or proceeding arising out of or relating to this Restricted stock Unit Agreement brought in any court of competent jurisdiction in the State of Nevada, (ii) any claim that any such suit, action or proceeding brought in any such court has been brought in any inconvenient forum and (iii) any right to a jury trial.

			
	
			
				 9.
			Incorporation of Plan. The Plan is hereby incorporated by reference and made a part hereof, and the Restricted Stock Units and this Restricted Stock Unit Agreement shall be subject to all terms and conditions of the Plan and this Restricted Stock Unit Agreement.

			
	
			
				 10.
			Amendments / Construction. The Board may amend the terms of this Restricted Stock Unit Agreement prospectively or retroactively at any time, but no such amendment shall impair the rights of the Recipient hereunder without Recipient’s consent. Headings to Sections of this Restricted Stock Unit Agreement are intended for convenience of reference only, are not part of this Restricted Stock Unit Agreement and shall have no effect on the interpretation hereof.

			
	
			
				 11.
			Survival of Terms. This Restricted Stock Unit Agreement shall apply to and bind the Recipient and the Company and their respective permitted assignees and transferees, heirs, legatees, executors, administrators and legal successors.

			
	
			
				 12.
			Rights as a Stockholder.  The Recipient shall have no rights of a stockholder (including the right to vote and the right to receive distributions or dividends) until the Recipient has received the shares of Common Stock equal to the number of Restricted Stock Units which vested.  On the date that the Recipient receives Common Stock with respect to Restricted Stock Units, the Recipient shall receive distributions or dividends that would have been paid to or made with respect to the number of shares of Common Stock that relate to this Restricted Stock Unit Award from the date of vesting until such date of delivery of the Common Stock.  The Recipient shall be able to exercise voting rights upon receipt of the shares of Common Stock.

			
	
			
				 13.
			Agreement Not a Contract for Continued Service. Neither the Plan, the granting of the Restricted Stock Units, this Restricted Stock Unit Agreement nor any other action taken pursuant to the Plan shall constitute or be evidence of any agreement or understanding, express or implied, that the Recipient has a right to continue to serve as a director of the Company for any period of time or at any specific rate of compensation.    

			
	
			
				 14.
			Authority of the Board; Disputes. The Board, directly or through its delegation of authority to the Committee, shall have full authority to interpret and construe the terms of the Plan and this Restricted Stock Unit Agreement. Notwithstanding the above, nothing within this provision shall restrict the Company or the Recipient from seeking to enforce the terms of this Restricted Stock Unit Agreement under and as provided in Section 8, above.

		 

 

			
	
			
				 15.
			Severability. Should any provision of this Restricted Stock Unit Agreement be held by a court of competent jurisdiction to be unenforceable, or enforceable only if modified, such holding shall not affect the validity of the remainder of this Restricted Stock Unit Agreement, the balance of which shall continue to be binding upon the parties hereto with any such modification (if any) to become a part hereof and treated as though contained in this original Recipient Restricted Stock Unit Agreement.

			
	
			
				 16.
			Amendment. The Board, directly or through its delegation of authority to the Committee,  has the right to amend, alter, suspend, discontinue or cancel the Restricted Stock Unit, prospectively or retroactively; provided, that, no such amendment shall adversely affect the Recipient’s material rights under this Agreement without the Recipient’s consent. 

			
	
			
				 17.
			Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together will constitute one and the same instrument. Counterpart signature pages to this Agreement transmitted by facsimile transmission, by electronic mail in portable document format (.pdf), or by any other electronic means intended to preserve the original graphic and pictorial appearance of a document, will have the same effect as physical delivery of the paper document bearing an original signature.

			
	
			
				 18.
			Acceptance. The Recipient hereby acknowledges receipt of a copy of the Plan and this Agreement. The Recipient has read and understands the terms and provisions thereof, and accepts the Restricted Stock Units subject to all of the terms and conditions of the Plan and this Agreement. The Recipient acknowledges that there may be adverse tax consequences upon vesting of the Restricted Stock Unit or disposition of the underlying shares and that the Recipient should consult a tax advisor prior to such exercise or disposition.

		
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			[signature page follows]
		

		
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			IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.
		

		
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						READING INTERNATIONAL, INC.

				
	
					
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						By_____________________

					
						Name: Ellen Cotter

					
						Title:   President and Chief Executive Officer

					
						 

				

		
			 
		

			
					
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						RECIPIENT

				
	
					
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						By_____________________

					
						Name: 

				
	
					
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			RESTRICTED STOCK UNIT GRANT NOTICE 
UNDER THE 
READING INTERNATIONAL, INC. 
2010 STOCK INCENTIVE PLAN
		

		
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			Reading International, Inc. (the “Company”), pursuant to its 2010 Stock Incentive Plan, as amended (the “Plan”), hereby grants to the Recipient set forth below the number of Restricted Stock Units set forth below. The Restricted Stock Units are subject to all of the terms and conditions as set forth herein, in the Restricted Stock Unit Agreement (attached hereto), and in the Plan, all of which are incorporated herein in their entirety. Capitalized terms not otherwise defined herein shall have the meaning set forth in the Plan.
		

		
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						Recipient:  

					
					
						 

				
	
					
						Number of Restricted Stock Units:  

					
					
						 

				
	
					
						Grant Date:

					
					
						__________, 20__

				
	
					
						Vesting Schedule:

					
					
						100% of the Restricted Stock Units granted hereunder shall vest on the January 1 of the year first following the Grant Date (the “Vesting Date”); provided that the Recipient has not undergone a termination of his or her services as a Director at the time of the Vesting Date (or an earlier accelerating event).

					
						 

					
						 

				

		
			THE UNDERSIGNED RECIPIENT ACKNOWLEDGES RECEIPT OF THIS RESTRICTED STOCK UNIT GRANT NOTICE, THE RESTRICTED STOCK UNIT AGREEMENT AND THE PLAN, AND, AS AN EXPRESS CONDITION TO THE GRANT OF RESTRICTED STOCK UNITS HEREUNDER, AGREES TO BE BOUND BY THE TERMS OF THIS RESTRICTED STOCK UNIT GRANT NOTICE, THE RESTRICTED STOCK UNIT AGREEMENT AND THE PLAN. 
		

		
			The Restricted Stock Unit Grant Notice is dated as of __________, 20__.
		

		
			Reading International, Inc.     “Recipient”
		

		
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			By: ________________________________       By: 
		

		
			Name: Ellen Cotter      Name: 
		

		
			Title: President and Chief Executive Officer2016 10K.A Exhibit 10.25 Updated Stock Option Agreement (Non-Director)

		
			READING INTERNATIONAL, INC.
		

		
			2010 STOCK INCENTIVE PLAN
		

		
			STOCK OPTION AGREEMENT
		

		
			[Non-Director]
		

		
			Unless otherwise defined herein, capitalized terms used in this Stock Option Agreement (this “Option Agreement”) shall have the meanings ascribed in the Reading International, Inc. 2010 Stock Incentive Plan, as amended (the “Plan”).
		

		
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						I.  

					
					
						NOTICE OF STOCK OPTION GRANT

				

		
			___________________________
		

		
			___________________________
		

		
			The Company is pleased to inform you that, subject to the terms and conditions of the Plan and this Option Agreement, you have been granted an Option to purchase Common Stock, as follows:
		

		
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						Grant Number:

					
					
						   

				
	
					
						   

					
					
						   

				
	
					
						Date of Grant:

					
					
						 

				
	
					
						   

					
					
						   

				
	
					
						Vesting Commencement Date:

					
					
						 

				
	
					
						   

					
					
						   

				
	
					
						Exercise Price per Share:

					
					
						 

				
	
					
						   

					
					
						   

				
	
					
						Number of Option Shares:

					
					
						 

				
	
					
						   

					
					
						   

				
	
					
						Total Exercise Price:

					
					
						 

				
	
					
						   

					
					
						   

					
					
						   

				
	
					
						Type of Option:

					
					
						 

					
					
						Incentive Stock Option (“ISO”)

				
	
					
						   

					
					
						 

					
					
						Nonstatutory Stock Option (“NSO”)

				
	
					
						   

					
					
						   

				
	
					
						Term/Expiration Date:

					
					
						 

				

		
			Vesting Schedule:  The Option shall become vested and exercisable in accordance with the following schedule:
		

		
			(Insert Vesting Schedule)
		

		

		

		 

		

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						II.  

					
					
						AGREEMENT

				
	
					
						A.  

					
					
						Grant of Option.

				

		
			The Board hereby grants to the Optionee named in the Notice of Grant contained in Part I of this Option Agreement (the “Notice of Grant”) an Option (this “Option”) to purchase the number of Shares set forth in the Notice of Grant, at the exercise price per Share set forth in the Notice of Grant (the “Exercise Price”), subject to the terms and conditions of the Plan, which is incorporated herein by reference. Subject to Section 12 of the Plan, in the event of a conflict between the terms and conditions of the Plan and the terms and conditions of this Option Agreement, the terms and conditions of the Plan shall prevail.
		

		
			If designated in the Notice of Grant as an Incentive Stock Option, this Option is intended to qualify as an Incentive Stock Option under Section 422 of the Code; however, if this Option is intended to be an Incentive Stock Option, to the extent that it exceeds the $100,000 rule described in Section 10(d) of the Plan it shall be treated as a Nonstatutory Stock Option.
		

			
					
						B.  

					
					
						Vesting of Option Shares.

				

		
			(a) Vesting Schedule.  The Option Shares as to which the Option shall have vested at any time in accordance with the terms of the Vesting Schedule set forth in the Notice of Grant are referred to as “Vested Shares,” and the Option Shares that shall not have vested are referred to as “Unvested Shares.”  All of the Option Shares are Unvested Shares as of the date of this Option Agreement.
		

		
			(b) Termination of Unvested Shares Upon Early Termination of Employment.  If the Optionee ceases to remain employed by the Company for any reason, (i) the Option shall immediately and automatically cease to be exercisable for any Unvested Shares as of the date of termination of employment and (ii) the Optionee shall immediately and automatically cease to have any right under the Option with respect to Unvested Shares as of the date of termination of employment.  In such event, this Option Agreement shall remain in full force and effect with respect to any Vested Shares.
		

		
			C.Acceleration of Vesting.
		

			
	
			
				 (a)
			In the event that of Optionee’s death or Disability (as defined in the Plan), all Unvested Options shall immediately vest as of the date of death or Disability.  

			
	
			
				 (b)
			In the event that, within twenty-four months after a Change in Control, Optionee is Terminated Without Cause by the Company or any successor Person, or Resigns For Good Reason, and the Optionee is not a Participant in such Change in Control, the vesting of all Unvested Options which are not otherwise fully vested shall automatically accelerate so that all such Unvested Options shall, immediately when the Optionee is Terminated Without Cause or Resigns for Good Reason, become fully vested, free of all restrictions.  

			
	
			
				 (c)
			In the event of a Corporate Transaction in which the Unvested Options are not to be Appropriately Replaced at or prior to the effective time of such 
		

		 

		

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			Corporate Transaction, the vesting of all Unvested Options which are not otherwise fully vested shall automatically accelerate so that all such Unvested Options shall, immediately prior to the effective time of the Corporate Transaction, become fully vested, free of all restrictions.

			
	
			
				 (d)
			In the event that, within twenty-four months after a Corporate Transaction at or prior to which the Unvested Options have been Appropriately Replaced,  Optionee is Terminated Without Cause by the Company or any successor Person, or Resigns For Good Reason, and the Optionee is not a Participant in such Corporate Transaction, the vesting of all Unvested Options (or the substitute awards by which the Unvested Options are Appropriately Replaced) which are not otherwise fully vested shall automatically accelerate so that all such Unvested Options (or such substitute awards) shall, immediately when the Optionee is Terminated Without Cause or Resigns For Good Reason, become fully vested, free of all restrictions.

			
	
			
				 (e)
			For purposes of this Section II.C.:

			
	
			
				 (i)
			Unvested Options shall be considered “Appropriately Replaced” if, in addition to providing for acceleration as provided in clause (d) of this Section II.C., at or prior to the Corporate Transaction, in the judgment of the Committee as constituted at the time the Corporate Transaction is proposed or announced to the Company (the “Evaluating Committee”), the Unvested Options or a substituted award will confer the right to receive, for each share of Common Stock that may be received pursuant to the Unvested Options existing immediately prior to the Corporate Transaction, on substantially the same vesting and other terms and conditions (including acceleration if the Optionee is Terminated Without Cause or Resigns For Good Reason) as were applicable to the Unvested Options immediately prior to the Corporate Transaction, the consideration (whether stock, cash or other securities or property) to be received in the Corporate Transaction by holders of Common Stock for each such share held on the effective date of such transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding shares of Common Stock); provided,  however, that if such consideration to be received in the transaction constituting a Corporate Transaction is not solely cash and/or common stock of the successor company or its parent or subsidiary, the Evaluating Committee may, if the obligations are to be assumed by the successor company, or its parent or subsidiary, approve that the consideration to be received upon the exercise or vesting of the Unvested Options (or the substituted award) will be common stock of the successor company or its parent or subsidiary substantially equal in fair market value to the per-share consideration received by holders of Common Stock in the transaction constituting a Corporate Transaction.  The determination of such substantial equality of value of consideration shall be made by the Evaluating Committee in its sole discretion and its determination shall be conclusive and binding.

			
	
			
				 (ii)
			The term “Change in Control” shall mean:

			
	
			
				 (A)
			a change, after the Grant Date, in the composition of the Board such that the Incumbent Board ceases for any reason to constitute at least a majority of the Board; or

		 

		

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				 (B)
			after the Grant Date a Person (as defined below) other than a Permitted Holder (as defined below) becomes the “Beneficial Owner”  (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of securities of the Company representing  in the aggregate  thirty percent (30%) or more of the then outstanding  Voting Securities of the Company; provided,  however, that a Change in Control shall not be deemed to have occurred for purposes of this clause (B) solely as the result of:

		
			 (1) any acquisition directly from the Company, other than an acquisition by virtue of the exercise of a conversion privilege unless the security being so converted itself was acquired directly from the Company, 
		

		
			(2) any repurchase of securities by the Company,
		

		
			 (3) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any entity controlled by the Company, and
		

		
			 (4) any acquisition pursuant to a transaction that is excluded from the definition of Corporate Transaction pursuant to approval by the Incumbent Board.
		

			
	
			
				 (iii)
			The term “Corporate Transaction” shall mean: 

			
	
			
				 (A)
			the consummation of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets of the Company, whether directly or indirectly through the sale of any one or more of the Company’s subsidiaries or the assets of such one or more subsidiaries; excluding,  however, any such transaction approved by the Incumbent Board (as defined below); or

			
	
			
				 (B)
			the liquidation or dissolution of the Company.

			
	
			
				 (iv)
			The term “Incumbent Board” shall mean the individuals who, as of the Grant Date, constitute the entire Board together with any individual(s) who becomes a member of the Board subsequent to the Grant Date, whose election, or nomination for election by the Company’s stockholders, was approved by a vote of at least a majority of those individuals who are members of the Board and who were also members of the then-Incumbent Board (or deemed to be such pursuant to this proviso); provided,  however, that any such individual whose initial assumption of office occurs as a result of either an actual or threatened election contest (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board shall not be so considered as a member of the Incumbent Board.

			
	
			
				 (v)
			The term “Participant” in a Change in Control or a Corporate Transaction shall mean any Person who, after such Change in Control or 
		

		 

		

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			Corporate Transaction either (a) is or controls any Person whose acquisition or control of securities of the Company gives rise to the Change in Control pursuant to Section 1.C.(e)(ii)(B)  above, or (b) is or controls any Permitted Holder as of the effective date of such Change in Control or Corporate Transaction but was not or did not control such Permitted Holder as of the date hereof.

			
	
			
				 (vi)
			The term “Permitted Holder” shall mean (i) the Company or any trustee or other fiduciary holding securities under an employee benefit plan of the Company, (ii) any Person who, since the Grant Date, has continuously been the Beneficial Owner of not less than thirty percent (30%) of the Voting Securities, or (iii) any Person controlled, directly or indirectly, by one or more of the foregoing Persons referred to in the immediately preceding clause (ii).

			
	
			
				 (vii)
			The term “Person” shall mean any individual  (whether acting in an individual capacity or in a representative capacity so as to have sole or shared voting power of Voting Securities), entity (including, without limitation, any corporation, charitable or not-for profit corporation, private foundation, partnership, limited liability company, trust (including, without limitation, any private, charitable or split-interest trust), joint venture, association or governmental body) or group (as defined in Section 13(d)(3) or 14(d)(2) of the Exchange Act and the rules and regulations thereunder.

			
	
			
				 (viii)
			The term “Resigns For Good Reason” shall mean the termination by Optionee of Optionee’s Services or election not to continue to provide such Services for Good Reason.  The term “Good Reason” shall mean: [in the case of an employee, (A) a material, adverse change in the Optionee’s authority, duties or responsibilities; (B) a material, adverse change in the authority, duties or responsibilities of the Optionee's supervisor (including, for example, requiring the Optionee to report to another officer, instead of the Board); (C) a material reduction in the Optionee's base salary or a  material reduction in the Optionee’s bonus opportunity, equity compensation or other material component of overall compensation;  (D) a material reduction in Optionee’s indemnification rights, directors and officers insurance coverage, (E) a relocation of the Optionee's principal place of employment by more than ten (10)  miles; or (F) the employer's material breach of the Optionee’s employment agreement;][in the case of a consultant: (A) any material, adverse change in the Optionee’s compensation or work arrangements, (B) any reduction in Optionee’s indemnification rights and/or insurance coverage, or (C) any material, adverse change in the manner or location required for the performance of Optionee’s Services)];  provided, however, that Optionee shall give written notice to the Company or the successor entity of any events giving that would constitute Good Reason within ninety (90) days of date on which such facts or events arise, the Company or such successor shall have not less than thirty (30) days’ opportunity to cure, and  Optionee shall terminate his or her [employment/consultancy] not later than thirty (30)  days of the failure of the Company or such successor to timely cure.

			
	
			
				 (ix)
			Services shall mean Optionee’s [services as a consultant to/services as an employee of] the Company or any successor.

		 

		

			5

		

		

			 

		

 

			
	
			
				 (x)
			The term “Terminated without Cause” shall mean the termination of the Optionee’s [services as a consultant to/employment with] the Company or any successor Person (including the failure to renew, extend or continue, as applicable) for any reason other than Cause.  The term “Cause” shall mean: (A) the repeated failure or refusal of Optionee to perform the duties or render the services consistent with Optionee’s title and position, which failure is not cured within thirty (30) days after written notice is delivered to Optionee; (B) fraud, embezzlement or other theft; (C) conviction of, or plea of guilty or nolo contendere to, a felony or gross misdemeanor involving moral turpitude; (D) intentional or gross misconduct or neglect that causes harm to the Company or its successor; or (E) substance abuse that affects the Optionee’s performance.

			
	
			
				 (xi)
			The term “Voting Securities” shall mean all securities of a corporation having the right under ordinary circumstances to vote in an election of the board of directors of such corporation, or other interests having comparable rights to elect managers or fiduciary persons or boards in non-corporate entities.  As of the date hereof, the Voting Securities of the Company includes the shares of Class B common stock of the Company.

			
					
						D.  

					
					
						Exercise of Option.

				

		
			(a) Right to Exercise.  This Option is exercisable during its term in accordance with the Vesting Schedule set out in the Notice of Grant and the applicable provisions of the Plan and this Option Agreement.
		

		
			(b) Method of Exercise.  This Option is exercisable by delivery to the Company of an exercise notice in substantially the form attached hereto as Exhibit A, or such other form as the Board may approve (the “Exercise Notice”), which shall state the election to exercise the Option, the number of Shares in respect of which the Option is being exercised (the “Exercised Shares”), and such other representations and agreements as may be required by the Company pursuant to the provisions of the Plan.  The Exercise Notice shall be accompanied by payment of the aggregate Exercise Price as to all Exercised Shares, pursuant to Part II(C)(c) of this Option Agreement.  This Option shall be deemed to be exercised upon receipt by the Company of such fully executed Exercise Notice accompanied by such aggregate Exercise Price.
		

		
			No Shares shall be issued pursuant to the exercise of this Option unless such issuance and exercise complies with Applicable Laws.  Assuming such compliance, for income tax purposes the Exercised Shares shall be considered transferred to the Optionee on the date the Option is exercised with respect to such Exercised Shares.
		

		
			(c) Method of Payment and Consideration.  Payment of the aggregate Exercise Price shall be by any method permitted under the Plan by the payment or transfer of any Consideration permitted under the Plan.      
		

			
					
						E.  

					
					
						Non-Transferability of Option.

				

		
			This Option may not be transferred in any manner otherwise than by will or by the laws of descent or distribution and may be exercised during the lifetime of the Optionee only by the Optionee; provided, however, if the Option granted to Optionee herein is a NSO, the Optionee, may, by delivering written notice to the Company, in a form satisfactory to the 
		

		 

		

			6

		

		

			 

		

 

		Company, designate a third party who, in the event of the death of the Optionee, will thereafter be entitled to exercise this Option. The terms of the Plan and this Option Agreement shall be binding upon the executors, administrators, heirs, successors and assigns of the Optionee.
		

			
					
						 F.  

					
					
						Exercise Period; Term of Option.

				

		
			This Option may be exercised for three months after Optionee ceases to be  employed by the Company, to the extent this Option was exercisable on the date Optionee ceases to be an employee of the Company.  Upon the death or Disability of the Optionee, this Option may be exercised for twelve months after Optionee ceases to be an employee of the Company, to the extent this Option was exercisable on the date Optionee ceases to be an employee.  In no event, however, shall this Option be exercised later than the Term/Expiration Date set out in the Notice of Grant.
		

			
					
						G.  

					
					
						Tax Obligations.

				

		
			(a) Withholding Taxes.  Optionee agrees to make appropriate arrangements with the Company (or the Parent or Subsidiary employing or retaining Optionee) for the satisfaction of all Federal, state, local and/or foreign income and employment tax withholding requirements applicable to the Option exercise as provided in the Plan (including, without limitation, the withholding of Shares otherwise issuable upon exercise of the applicable Option). Optionee acknowledges and agrees that the Company may refuse to honor the exercise and refuse to deliver Shares if such withholding amounts are not delivered (either in cash, or by withholding of Shares otherwise issuable upon exercise of the applicable Option or through such other method of satisfaction as may be provided under the Plan) at the time of exercise.
		

		
			(b) Notice of Disqualifying Disposition of ISO Shares.  If the Option granted to Optionee herein is an ISO, and if Optionee sells or otherwise disposes of any of the Shares acquired pursuant to the ISO on or before the later of (1) the date two years after the Date of Grant, or (2) the date one year after the date of exercise, the Optionee shall immediately notify the Company in writing of such disposition. Optionee agrees that Optionee may be subject to income tax withholding by the Company on the compensation income recognized by the Optionee.
		

			
					
						H.  

					
					
						Entire Agreement; Governing Law.

				

		
			The Plan and this Option Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and Optionee with respect to the subject matter hereof, and may not be modified adversely to the Optionee’s interest except by means of a writing signed by the Company and Optionee. This agreement is governed by the internal substantive laws, but not the choice of law rules, of Nevada.
		

			
					
						I.  

					
					
						NO GUARANTEE OF CONTINUED EMPLOYMENT OR RETENTION.

				

		
			OPTIONEE ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES PURSUANT TO THE VESTING SCHEDULE HEREOF IS EARNED ONLY BY CONTINUING EMPLOYMENT OR RETENTION AT THE WILL OF THE COMPANY (AND NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED AN OPTION OR PURCHASING SHARES HEREUNDER). OPTIONEE FURTHER ACKNOWLEDGES AND AGREES THAT THIS OPTION AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND 
		

		 

		

			7

		

		

			 

		

 

		THE VESTING SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS AN EMPLOYEE OR RETENTION AS A CONSULTANT FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND SHALL NOT INTERFERE WITH OPTIONEE’S RIGHT OR THE COMPANY’S RIGHT TO TERMINATE OPTIONEE’S EMPLOYMENT OR CONSULTANCY AT ANY TIME, WITH OR WITHOUT CAUSE.
		

		
			By your signature and the signature of the Company’s representative below, you and the Company agree that this Option is granted under and governed by the terms and conditions of the Plan and this Option Agreement.  By your signature below, you acknowledge and agree that you have reviewed the Plan and this Option Agreement in their entirety, have had an opportunity to obtain the advice of counsel prior to executing this Option Agreement and fully understand all provisions of the Plan and this Option Agreement. Optionee hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Board upon any questions relating to the Plan and this Option Agreement. Optionee further agrees to notify the Company upon any change in the residence address indicated below.
		

		
			﻿
		

		
			[Signature page follows]
		

		
			 
		

		

		

		 

		

			8

		

		

			 

		

 

		
		

		
			This Option Agreement may be executed by facsimile and in counterparts, each of which shall be deemed an original, but both of which shall constitute one and the same instrument.
		

		
			 
		

		
			﻿
		

			
					
						OPTIONEE:

					
					
						   

					
					
						READING INTERNATIONAL, INC.

				
	
					
						   

					
						 

					
						 

					
						 

					
					
						 

					
						 

					
						 

					
						By:

					
					
						   

				
	
					
						Signature

					
					
						   

					
					
						Name: 

					
						Title:   

				
	
					
						   

					
					
						   

					
					
						   

				
	
					
						Print Name

					
					
						   

					
					
						   

				
	
					
						   

					
					
						   

					
					
						   

				

		
			 
		

		

		

		 

		

			9

		

		

			 

		

 

		EXHIBIT A
		

		
			﻿
		

		
			NOTICE OF EXERCISE OF OPTION TO PURCHASE
		

		
			COMMON STOCK
		

		
			 
		

			
					
						Name:

					
					
						   

				
	
					
						Address:

					
					
						   

				
	
					
						SSN:

					
					
						   

				
	
					
						Date:

					
					
						   

				

		
			 
		

		
			Reading International, Inc.
		

		
			Attention: Corporate Secretary
		

		
			6100 Center Drive, Suite 900
		

		
			Los Angeles, California 90045
		

		
			﻿
		

		
			Re:Exercise of Stock Option
		

		
			Ladies and Gentlemen:
		

		
			I elect to purchase ______________ shares of Class A Non-voting Common Stock of Reading International, Inc. (the “Company”) pursuant to the Reading International, Inc. Stock Option Agreement dated ___________ and the Reading International, Inc. 2010 Stock Incentive Plan, as amended.  The purchase will take place on the Exercise Date, which will be (i) as soon as practicable following the date this notice and all other necessary forms and payments are received by the Company, unless I specify a later date (not to exceed 30 days following the date of this notice) or (ii) in the case of a Broker-assisted cashless exercise (as indicated below), the date of this notice.
		

		
			On or before the Exercise Date, I will pay the full exercise price in the form specified below (check one):
		

		
			 [ ]Cash: by delivering cash to the Company for $___________.
		

		
			 [ ]Check: by delivering a check made payable to the Company for $___________.
		

		
			 [ ]Other Company Shares: by delivering for surrender or delivering of an assignment of other shares of the Company’s Common Stock of the same class as the Shares, as provided in the Plan.
		

		
			 [ ]Net Exercise:  as provided in the Plan.
		

		
			 [ ]Approved Cashless Exercise:  as provided in the Plan.
		

		
			 [ ]Cash From Broker: by delivering the purchase price from ________________, a broker, dealer or other “creditor” as defined by Regulation T issued by the Board of Governors of the Federal Reserve System (the “Broker”).  I authorize the Company to issue a stock certificate in the number of shares indicated above in the name of the Broker in accordance with instructions received by the Company from the Broker and to deliver such stock certificate directly to the Broker (or to any other party specified in the instructions from the Broker) upon receiving the exercise price from the Broker.
		

		

		

		 

		

			 Exhibit A, Page 1 of 2

		

		

			 

		

 

		On or before the Exercise Date, I will pay (or otherwise provide for as provided in the Plan) any applicable tax withholding obligations.
		

		
			Please deliver the stock certificate to me (unless I have chosen to pay the purchase price through a broker).
		

		
			 
		

			
					
						   

					
					
						Very truly yours,

					
					
						   

				
	
					
						   

					
					
						   

					
					
						   

				
	
					
						   

					
					
						   

					
					
						   

				
	
					
						   

					
					
						   

					
					
						   

				
	
					
						   

					
					
						   

					
					
						   

				
	
					
						AGREED TO AND ACCEPTED:

				
	
					
						   

					
					
						   

					
					
						   

				
	
					
						READING INTERNATIONAL, INC.

				
	
					
						   

					
					
						   

					
					
						   

				
	
					
						   

					
					
						   

					
					
						   

				
	
					
						By:

					
					
						   

					
					
						   

				
	
					
						   

					
					
						   

					
					
						   

				
	
					
						Title:

					
					
						   

					
					
						   

				
	
					
						   

					
					
						   

					
					
						   

				
	
					
						Number of Option Shares Exercised:

					
					
						   

					
					
						   

				
	
					
						   

					
					
						   

					
					
						   

				
	
					
						   

					
					
						   

					
					
						   

				
	
					
						Number of Option Shares Remaining:

					
					
						   

					
					
						   

				
	
					
						   

					
					
						   

					
					
						   

				
	
					
						   

					
					
						   

					
					
						   

				
	
					
						Date:

					
					
						   

					
					
						   

				

		
			 
		

		 

		

			 Exhibit A, Page 2 of 2

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