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Exhibit 10.5
RENEX CORP.
1994 EMPLOYEE STOCK OPTION PLAN
ARTICLE I
PURPOSE
The purpose of the 1994 Employee Stock Option Plan (the "Plan") of
RENEX CORP., a Florida corporation, is to secure for the Company and its
stockholders the benefits arising from stock ownership by employees of the
Company or its subsidiaries. The Plan will provide a means whereby (i) such
employees may purchase shares of the Common Stock, $.001 par value (the "Common
Stock"), of the Company pursuant to options which will qualify as "incentive
stock options" under Section 422A of the Internal Revenue Code of 1986, as
amended (the "Code"), and (ii) such employees may purchase shares of the Common
Stock pursuant to "non-statutory" stock options.
ARTICLE II
DEFINITIONS
The following capitalized terms used in the Plan shall have the
respective meanings set forth in this Article:
2.1 "Board" shall mean the Board of Directors of RENEX CORP.
2.2 "Change of Control" shall mean the occurrence of any of the
following acts:
(a) The acquisition (other than from the Company directly) by any
person, entity or group within the meaning of ss. 13(d) or 14(d) of the Exchange
Act, of beneficial ownership of twenty-five (25%) percent or more of the
outstanding Common Stock;
(b) If the individuals who serve on the Board as of the date of
stockholder approval of the Plan, no longer constitute a majority of the
members of the Board; provided, however, any person who becomes a director
subsequent to the date of the stockholder approval of the Plan, who was elected
to fill a vacancy by a majority of the individuals then serving on the Board,
shall be considered as if a member prior to stockholder approval of the Plan;
(c) Approval by a majority of the voting stock of the Company of
a merger, reorganization or consolidation whereby the stockholders of the
Company immediately prior to such approval do not, immediately after
consummation of such reorganization merger or consolidation own more than 50%
of the voting stock of the surviving entity; or
(d) A liquidation or dissolution of the Company, or the sale of
all or substantially all of the Company's assets.
2.3 "Code" shall mean the Internal Revenue Code of 1986, as amended.
2.4 "Committee" shall mean the committee appointed by the Board in
accordance with Paragraph 3 of the Plan.
2.5 "Common Stock" shall mean the common stock, $.001 par value, of the
Company.
2.6 "Company" shall mean RENEX CORP. and each of its subsidiaries, if
any.
2.7 "Control Person" shall mean any person who, as of the date of grant
of an option owns (within the meaning of Section 422A(b)(6) of the Code) stock
of the Company possessing more than ten (10%) percent of the total combined
voting power or value of all classes of stock of the Company or of any
subsidiary.
2.8 "Disinterested Director" shall mean a director who is not, during
the one year prior to service on the Committee, granted or awarded equity
securities pursuant to the Plan or any other plan of the Company, except as
would otherwise be permitted, pursuant to Rule 16b-3, promulgated pursuant to
the Exchange Act, for Disinterested Directors.
2.9 "Employee" shall mean any person (who may be an officer or
director) employed by the Company (within the meaning of Section 3401(c) of the
Code and the regulations promulgated thereunder), or any successor corporation
by merger or consolidation.
2.10 "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended.
2.11 "Exercise Price" shall mean the price per share of Common Stock as
determined by the "Committee or the Board at which an Option may be exercised.
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2.12 "Fair Market Value" shall mean the closing price of a share of
Common Stock on the principal securities exchange on which such Common Stock is
traded on the last preceding business day prior to the date as to which Fair
Market Value is being determined, or on the next preceding business day on which
such Common Stock is traded, if no shares of Common Stock were traded on such
date. If the Common Stock is not traded on a securities exchange, Fair Market
Value shall be the closing sales price of the Common Stock as reported on the
NASDAQ-National Market System for the last preceding business day prior to the
date on which Fair Market Value is to be determined or on the next preceding
business day if the Common Stock was not traded on such date. If the Common
Stock is not quoted on the NASDAQ-National Market System, Fair Market Value
shall be the average of the high bid and low asked prices of the Common Stock in
the over-the-counter market on the last preceding business day prior to the day
as of which Fair Market Value is being determined, or on the next preceding day
on which such high bid and low asked prices were recorded. If the Common Stock
is not publicly traded, Fair Market Value shall be determined by the Committee,
or the Board, in good faith. In no case shall Fair Market Value be less than the
par value per share of the Common Stock. Fair market value shall be determined
without regard to any restriction other than a restriction which, by its terms,
will never lapse.
2.13 "Incentive Stock Option" or "ISO" shall mean an Option granted
pursuant to the Plan intended to qualify under Section 422A of the Code.
2.14 "Non-Statutory Stock Option" or "NSO" shall mean an Option which
is not qualified as an ISO under Section 422A of the Code.
2.15 "Option" shall mean an Option, including Reload Options, to
purchase Common Stock as granted pursuant to the Plan.
2.16 "Optionee" shall mean any person whom the Committee or the Board,
as the case may be, has granted an Option.
2.17 "Permanent Disability" shall mean the condition of an Employee who
is unable to engage in any substantial gainful activity by reason of any
medically determinable physical or mental impairment which can be expected to
result in death or which has lasted or can be expected to last for a continuous
period of not less than twelve (12) months.
2.18 "Plan" shall mean this RENEX CORP. 1994 Employee Stock Option
Plan.
2.19 "Purchase Price" shall mean the Exercise Price multiplied by the
number of whole shares of Common Stock with respect to which an Option can be
exercised.
2.20 "Reload Option" means an Option granted to an Employee equal to
the number of shares of Common Stock tendered by the Employee to pay for the
Exercise Price of an Option as more fully described in Article XVI Reload
Options.
2.21 "Subsidiary" shall mean one or more subsidiaries of the Company as
defined in Section 424 of the Code.
ARTICLE III
ADMINISTRATION
3.1 Committee. The Plan shall be administered by the Board, or by a
Committee consisting of two (2) or more Disinterested Directors appointed by the
Board. The Board from time to time may remove members from, or add members to,
the Committee. Vacancies in the Committee, however caused, shall be filled by
the Board.
3.2 Activities of Committee. Any action of the Board or the Committee
with respect to administration of the Plan shall be taken by a majority vote or
written consent of its members. If a Committee is appointed by the Board, the
Committee shall hold meetings at such times and places as it may determine.
3.3 Construction of Plan. Subject to the provisions of the Plan and
such policies and criteria adopted by the Board, the Board or Committee, as the
case may be, shall have authority: (a) to construe and interpret the Plan, (b)
to define the terms used therein, (c) to prescribe, amend and rescind rules and
regulations relating to the Plan, (d) to determine the individuals to whom and
the time or times at which Options shall be granted, (e) to determine whether
such options will be ISO or NSO, (f) to determine the number of shares subject
to each Option, (g) to determine the Exercise Price, (h) to determine the number
of installments, advertising requirements, if any, in which each Option may be
exercised, (i) to determine the duration of each Option, (j) to approve and
determine the duration of leaves of absence which may be granted to Employees
without constituting a termination of their Employment for the purposes of the
Plan, and (k) to make all other determinations necessary or advisable for the
administration of the Plan.
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The Board, or the Committee, as the case may be, shall have the sole
discretion to make all other determinations which may be necessary or advisable
for the administration of the Plan, including without limitation, the discretion
to construe and interpret the Plan and establish, amend and revoke rules and
regulations for the administration of the Plan. To the extent permitted by law,
and Rule 16b-3 promulgated under the Exchange Act, the Board or the Committee
may delegate its authority as identified hereunder.
3.4 Interpretations Under Plan. All determinations and interpretations
made by the Board or Committee shall be binding and conclusive on all Optionees
and their legal representatives and beneficiaries.
3.5 Section 16 Compliance. It is the intention of the Company that the
Plan, and the administration of the Plan, comply in all respects with ss. 16 of
the Exchange Act and the rules and regulations promulgated thereunder. If any
Plan provision, or any aspect of the administration of the Plan, is found not to
be in compliance with ss. 16 of the Exchange Act, the provision or
administration shall be deemed null and void, and in all events the Plan shall
be construed in favor of its meeting the requirements of Rule 16b-3 promulgated
under the Exchange Act.
ARTICLE IV
SHARES SUBJECT TO PLAN
The total number of shares of Common Stock available for grants under
the Plan shall be 2,000,000 subject to adjustment in accordance with Articles
XII and XVI of the Plan. These shares may be either authorized, but unissued, or
reacquired shares of Common Stock. If an Option or portion thereof shall expire
or terminate for any reason without having been exercised in full, the
unpurchased shares covered by such Option shall be available for future grants
of Option. For purposes of determining the number of shares that have been
issued or are available for issuance under the Plan, any shares received in
connection with the issuance of a Reload Option shall be added to the number of
shares available for grants under the Plan.
ARTICLE V
ELIGIBILITY
5.1 Incentive Stock Options. Incentive Stock Options shall only be
granted to Employees (including individuals who may be officers and directors of
the Company) for services connected with an Employee's employment by the Company
or any of the Company's subsidiaries.
5.2 Non-Statutory Stock Option. Non-Statutory Stock Options may be
granted to Employees who have performed, or reasonably may be expected to
perform, services of special importance to the management, operation or
development of the business of the Company or any subsidiary as the Committee or
the Board, as the case may be, shall determine, but subject to the terms and
conditions set forth in the Plan.
5.3 Board Members. Options may be granted to members of the Board if
such individuals are Employees, provided such Optionee is not a member of the
Committee.
ARTICLE VI
TERMS OF OPTIONS
6.1 Option Agreements. Each Option shall be evidenced by a written
agreement executed by the Company and the Optionee. Such Options shall be
subject to the applicable provisions of the Plan, and shall contain such
provisions as are required by the Plan and any other provisions the Board or
Committee may prescribe. All agreements evidencing Options shall among other
things specify the total number of shares of Common Stock subject to each grant,
the Exercise Price, the dates after which Options may be exercised, the Option
term and vesting requirements. Those Options that comply with the requirement of
an Incentive Stock Option shall be designated as such and all other Options
shall be designated as Non-Statutory Stock Options.
6.2 Exercise Price. The Exercise Price of the shares of Common Stock
covered by each Option shall be determined by the Board or the Committee, as the
case may be, but in the case of Incentive Stock Options shall not be less than
one hundred (100%) percent of the Fair Market Value of such Common Stock at the
time of grant. The Board, or the Committee, as the case may be, shall have the
authority, subject to the requirements of the Code and the Exchange Act, to
reduce the exercise price at any time after the grant in its sole discretion.
6.3 Duration of Options. Each Option and all rights associated
therewith shall expire on such date as the Board or Committee, as the case may
be, may determine, but in no event later than ten (10) years from the date on
which the Option is granted, and shall be subject to earlier termination as
provided herein. Notwithstanding any determination by the Board or the Committee
regarding the exercise periods of any installments of Options, all such
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Options shall immediately become exercisable upon a Change of Control of the
Company, subject in all cases to the provision of Paragraph 6.7, which shall
prevail.
6.4 Limitations on Grants to Control Persons. No Incentive Stock Option
may be granted to an Employee, if at the time of the grant, the Employee is a
Control Person. However, a Control Person shall be eligible to receive Options
if:
(a) the exercise price of any Incentive Stock Option is at
least 110% of the Fair Market Value and the Incentive Stock Option by its terms
is not exercisable after the expiration of five (5) years from the date such
Option was granted; and
(b) The exercise price of an NSO is at least 85% of the Fair
Market Value.
6.5 Manner of Exercise and Payment. An Option, or any portion thereof,
shall be exercised by delivery of a written notice of exercise to the Company
and payment of the full price of the shares being purchased pursuant to the
Option. An Optionee may exercise an Option with respect to less than the full
number of shares for which the Option may then be exercised, but an Optionee
must exercise the Option in full shares of Common Stock. The Exercise Price of
Common Stock purchased pursuant to an Option, or portion thereof, may be paid:
(a) in United States dollars, in cash or by check, bank draft or
money order payable to the order of the Company;
(b) through the delivery of shares of Common Stock with an
aggregate Fair Market Value on the date of exercise equal to the Exercise
Price;
(c) to the extent authorized by the Committee or the Board, by
delivery of irrevocable instructions to a financial institution to deliver
promptly to the Company the portion of sale or loan proceeds sufficient to pay
the Exercise Price;
(d) to the extent authorized by the Board, or the Committee, as
the case may be, through the written election of the Optionee to have shares
of Common Stock withheld by the Company from the shares otherwise to be
received, with such withheld shares having an aggregate Fair Market Value on
the date of exercise equal to the Purchase Price;
(e) to the extent authorized by the Board, or the Committee, as
the case may be, or if specified in the Option being exercised, by a promissory
note made by the Optionee in favor of the Company, upon the terms and
conditions as determined by the Board or the Committee, and secured by the
Common Stock issuable upon exercise of the Option, or
(f) by any combination of the above methods of payment.
The Board, or Committee, shall determine acceptable methods for
tendering or withholding Common Stock as payment upon exercise of an Option and
may impose such limitations and prohibitions on the use of Common Stock to
exercise an Option as it deems appropriate, including, without limitation, any
limitation or prohibition designed to avoid certain accounting consequences
which may result from the use of Common Stock as payment upon exercise of an
Option.
6.6 Notification of Sales of Common Stock. Any Optionee who disposes of
shares of Common Stock acquired upon the exercise of an Incentive Stock Option
either (a) within two years after the date of the grant of the Incentive Stock
Option under which the Common Stock was acquired or (b) within one year after
the transfer of such shares to the Optionee, shall notify the Company of such
disposition and of the amount received upon such disposition.
6.7 Restriction on Exercise. No Option shall be exercisable until the
end of six months after the date of grant, except in the case of the Employee's
death or Permanent Disability, upon which event the Option will become
immediately exercisable.
ARTICLE VII
GOVERNMENT AND OTHER REGULATIONS
7.1 Delivery of Common Stock. The obligation of the Company to issue or
transfer and deliver shares for Options exercised under the Plan shall be
subject to all applicable laws, regulations, rules, orders and approvals which
shall then be in effect and required by governmental entities.
7.2 Holding of Stock After Exercise of Option. At the discretion of the
Board or Committee, any Option may provide that the Optionee, by accepting such
Option, represents and agrees, for the Optionee and his permitted
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transferees (by will or the laws of descent and distribution), that none of the
Common Stock purchased upon exercise of the Option will be acquired with a view
to any sale, transfer or distribution of said Common Stock in violation of the
Securities Act of 1933 as amended (the "Act"), and the person entitled to
exercise the same shall furnish evidence satisfactory to the Company (including
a written and signed representation) to that effect in form and substance
satisfactory to the Company, including an indemnification of the Company in the
event of any violation of the Act by such person.
ARTICLE VIII
WITHHOLDING TAX
The Company may, in its discretion, require an Optionee to pay to the
Company at the time of exercise, an amount that the Company deems necessary to
satisfy its obligations to withhold Federal, state or local income or other
taxes (which for purposes of this Article includes an Optionees FICA
obligation), incurred by reason of such exercise. When the exercise of an Option
does not give rise to an obligation to withhold Federal income taxes on the date
of exercise, the Company may, in its discretion, require an Optionee to place
shares of Common Stock purchased under the Option in escrow for the benefit of
the Company until such time as Federal income tax withholding is required on
amounts included in the gross income of the Optionee as a result of the exercise
of an Option. At such time, the Company in its discretion may require an
Optionee to pay to the Company the amount that the Company deems necessary to
satisfy its obligation to withhold Federal, state or local taxes incurred by
reason of the exercise of the Option, in which case the shares of Common Stock
will be released from escrow upon such payment by Optionee.
ARTICLE IX
NON-TRANSFERABILITY
No Option granted under the Plan shall be transferable by the Optionee,
otherwise than by will or the laws of descent and distribution, or pursuant to a
qualified domestic relations order as defined by the Code or Title I of the
Employee Retirement Income Security Act or the rules thereunder. Options shall
be exercisable during the Optionee's lifetime only by the Optionee, regardless
of any community property interest therein of the Optionee's spouse, or such
spouse's successors in interest. If the Optionee's spouse shall have acquired a
community property interest in such Option, the Optionee, or the Optionee's
permitted successors in interest, may exercise the Option on behalf of the
Optionee's spouse or such spouse's successors in interest.
ARTICLE X
TERMINATION OF EMPLOYMENT
10.1 Resignation of Employee. If an Optionee ceases to be employed by
the Company for any reason other than the Optionee's death or Permanent
Disability, the Optionee's Options shall immediately become void and of no
further force or effect; provided, however, that if such cessation of Employment
shall be due to the Optionee's voluntary resignation with the consent of the
Board, or the Committee, or to the Optionee's retirement under the provisions of
any pension or retirement plan of the Company or any Subsidiary then in effect,
such Option may be exercised to the extent exercisable on the date of such
cessation of Employment within three (3) months after the date the Optionee
ceases to be an Employee of the Company; provided, however that in no event
shall the exercise period extend beyond the term of the Option.
10.2 Leaves of Absence. For the purpose contained herein, the
employment relationship will be treated as continuing intact while the Optionee
is on military leave, approved sick leave or other bona fide leave of absence to
be approved in writing by the Board or Committee. However, no Option may be
exercised during any such leave of absence, except during the first three (3)
months thereof; provided, however that in no event shall the exercise period
extend beyond the term of the Option.
10.3 Termination by Reason of Death or Permanent Disability. If the
holder of an Option dies or suffers a Permanent Disability while the Optionee is
employed by the Company, the Optionee's Option shall expire one (1) year after
the date of such death or Permanent Disability; provided, however that in no
event shall the exercise period extend beyond the term of the Option. During
such period after death, such Option may, to the extent that it remains
unexercised (but exercisable by the Optionee according to such Option's term) on
the date of such death, be exercised by the person or persons to whom the
Optionee's rights under the Option shall pass by the Optionee's will or by the
laws of descent and distribution.
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ARTICLE XI
LIMITATION ON GRANTS OF INCENTIVE STOCK OPTIONS
No one individual may be granted Incentive Stock Options under this
Plan or any other plan of the Company in any calendar year for Common Stock
having an aggregate Fair Market Value determined at the time the Option is
granted, in excess of $100,000.
ARTICLE XII
ADJUSTMENTS
12.1 Proportionate Adjustments. If the outstanding shares of Common
Stock are increased, decreased, changed into or exchanged for a different number
or kind of shares or securities of the Company through reorganization,
recapitalization, reclassification, stock dividend, stock split, reverse stock
split or other similar transaction, an appropriate and proportionate adjustment
shall be made in the maximum number and kind of shares as to which Options may
be granted under this Plan. A corresponding adjustment changing the number of
kind or shares allocated to unexercised Options or portions thereof, which shall
have been granted prior to any such change, shall likewise be made. Any such
adjustment in the outstanding Options shall be made without change in the
aggregate Purchase Price applicable to the unexercised portion of the Option but
with a corresponding adjustment in the Exercise Price for the Common Stock
covered by the Option. Notwithstanding the foregoing, there shall be no
adjustment for the issuance of Common Stock upon conversion of notes, preferred
stock or exercise of warrants or Common Stock issued by the Board for such
consideration as the Board deems appropriate.
12.2 Dissolution or Liquidation. Upon the dissolution or liquidation of
the Company, or upon a reorganization, merger or consolidation of the Company
with one (1) or more corporations as a result of which the Company is not the
surviving corporation, or upon a sale of substantially all the property or more
than eighty (80%) percent of the then outstanding shares of Common Stock of the
Company to another corporation, the Board or Committee may provide in writing in
connection with such transaction for any or all of the following choices
(separately or in combinations): (i) for the Options theretofore granted to
become immediately exercisable; (ii) for the assumption by the successor
corporation of the Options theretofore granted or the substitution by such
corporation for such Options of new Options covering the stock of the successor
corporation, or a parent or subsidiary thereof, with appropriate adjustments as
to the number and kind of shares and prices; (iii) for the continuance of the
Plan by each successor corporation in which event the Plan and the Options
theretofore granted shall continue in the manner and under the terms so
provided; or (iv) for termination of the Plan and any Option theretofore granted
hereunder.
12.3 Board Determination. Adjustments under this Article 12 shall be
made by the Board or Committee, whose determination as to what adjustments shall
be made, and the extent thereof, shall be final, binding and conclusive. No
fractional shares of Common Stock shall be issued under the Plan on any such
adjustment.
ARTICLE XIII
AMENDMENT AND TERMINATION OF PLAN
13.1 Amendments. The Board or the Committee may at any time suspend or
terminate the Plan. The Board or the Committee may also at any time amend or
revise the terms of the Plan, provided that no such amendment or revision shall,
unless appropriate stockholder approval of such amendment or revision is
obtained:
(a) materially increase the benefits accruing to participants
under the Plan;
(b) materially increase the number of securities which may be
issued under Plan; or
(c) materially modify the requirements as to eligibility for
participation in the Plan.
13.2 Optionee Consent. No amendment, suspension or termination of the
Plan shall, without the consent of the Optionee, alter or impair any rights or
obligations under any Option theretofore granted under the Plan.
ARTICLE XIV
MISCELLANEOUS PROVISIONS
14.1 Privileges of Stock Ownership. No person entitled to exercise any
Option granted under the Plan shall have any of the rights or privileges of a
stockholder of the Company in respect of any shares of Common Stock issuable
upon exercise of such Option until certificates representing such shares shall
have been issued and delivered. No shares shall be issued and delivered upon
exercise of any Option unless and until, in the opinion of counsel for the
Company, there shall have been full compliance with any applicable registration
requirements of the Act, any applicable listing requirements of any national
securities exchange on which stock of the same class is then listed, and any
other requirements of law or of any regulatory bodies having jurisdiction over
such issuance and delivery.
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14.2 Plan Expenses. Any expenses incurred in the administration of the
Plan shall be borne by the Company.
14.3 Use of Exercise Proceeds. Payments received from an Optionee upon
the exercise of Options shall be used for the general corporate purposes of the
Company, except that any Common Stock received in payment may be retired or
retained in the Company's treasury and reissued.
14.4 No Employment Rights. Neither the Plan, nor any action taken under
the Plan shall be construed as giving any Employee the right to become a
participant, nor shall any Option under the Plan be construed as giving a
participant any right with respect to continuance of employment by the Company.
The Company expressly reserves the right to terminate, whether by dismissal,
discharge or otherwise a participant's employment at any time, with or without
cause, except as may otherwise be provided in any written agreement between the
Company and the Employee.
14.5 Indemnification. In addition to such other rights of
indemnification as they may have as members of the Board, or the Committee, the
members of the Committee and the Board shall be indemnified by the Company
against all costs and expenses reasonably incurred by them in connection with
any action, suit or proceeding to which they or any of them may be party by
reason of any action taken or failure to act under or in connection with the
Plan or any Option granted thereunder, and against all amounts paid by them in
settlement thereof (provided such settlement is approved by independent legal
counsel selected by the Company) or paid by them in satisfaction of a judgment
in any such action suit or proceeding, except a judgment based upon a finding of
bad faith; provided that upon the institution of any such action, suit or
proceeding, such indemnified party shall in writing give the Company notice
thereof and an opportunity, at its own expense, to handle and defend the same
before such indemnified party undertakes to handle and defend it on such
member's behalf.
14.6 No Obligation to Exercise Options. The granting of an Option shall
impose no obligation upon the Optionee to exercise such Option.
14.7 Governing Law. The Plan has been adopted under the laws of the
State of Delaware. The Plan, all Options which may be granted hereunder, and all
matters related thereto, shall be governed by and construed and enforced in
accordance with the laws of the State of Delaware as it then exists.
14.8 Gender and Number. Except as otherwise indicated by the context,
reference to the masculine gender shall include the feminine gender, the plural
shall include the singular and the singular shall include the plural.
14.9 Severability. In the event any provision of the Plan shall be held
illegal or invalid for any reason, the illegality or invalidity shall not affect
the remaining parts of the Plan and the Plan shall be construed and enforced as
if the illegal or invalid provision had not been included.
ARTICLE XV
STOCKHOLDER APPROVAL AND EFFECTIVE DATE
The Plan shall be submitted for approval by the holders of the
outstanding voting stock of the Company within twelve (12) months from the date
the Plan is adopted by the Board; provided, however, that if such vote was not
solicited substantially in accordance with the rules and regulations, if any, in
effect under ss. 14(a) of the Exchange Act, at the time of such vote, the
Company will furnish in writing to the holders of record of the securities
entitled to vote for the Plan substantially the same information concerning the
Plan which would be required by the rules and regulations in effect under ss.
14(a) of the Exchange Act, as if proxies to be voted with respect to the
approval or disapproval of the Plan were then being solicited, on or prior to
the date of the first annual meeting of security holders held subsequent to the
later of (i) the first registration of an equity security under ss. 12 of the
Exchange Act; or (ii) the acquisition of an equity security for which an
exemption is claimed. The Plan shall be deemed approved by the holders of the
outstanding voting stock of the Company by the affirmative vote of the holders
of a majority of the voting shares of the Company represented and voting at a
duly held meeting at which a quorum is present. Any Options granted under the
Plan prior to obtaining such stockholder approval shall be granted under the
conditions that the Options so granted (i) shall not be exercisable prior to
such approval, and (ii) shall become null and void if such stockholder approval
is not obtained.
ARTICLE XVI
RELOAD OPTIONS
16.1 Reload Option. Whenever the Optionee holding any Option
outstanding under the Plan (including Reload Options granted under this Article
XVI) exercises the Option and makes payment of the Exercise Price by tendering
Common Stock previously held by the Optionee pursuant to Section 6.5(b), then
the Company shall grant a Reload Option for the number of shares of Common Stock
that is equal to the number of shares tendered by the Optionee on payment of the
Exercise Price of the Option being exercised.
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16.2 Reload Option Exercise Price. The Reload Option Exercise Price per
share shall be an amount equal to the Fair Market Value per share of the
Company's Common Stock determined as of the date of receipt by the Company of
the notice by Optionee to exercise the Option.
16.3 Term of Reload Option. The exercise period of the Reload Option
shall expire, and the Reload Option shall no longer be exercisable, on the later
of (i) the expiration date of the original surrendered Option, or (ii) one year
from the date of granting, unless otherwise determined by the Board or the
Committee, which shall have the discretion to extend the expiration date of the
Reload Options.
16.4 Restriction on Exercise. Any Reload Option granted under this
Article XVI shall vest immediately, but shall not be exercisable until the end
of six months after the date of its issuance, except in the case of the death or
permanent disability of the Optionee, upon which event the Reload Option will
become immediately exercisable.
16.5 Other Terms of Reload Options. All other terms of the Reload
Options granted hereunder shall be identical to the terms and conditions of the
original Option, the exercise of which gives rise to the grant of the Reload
Option.
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