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2009 STOCK OPTION AND INCENTIVE PLAN

Option Agreement

2009 STOCK OPTION AND INCENTIVE PLAN | Document Parties: TECHMEDIA ADVERTISING, INC. | Directors, Consultants | TECHMEDIA ADVERTISING, INC You are currently viewing:
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TECHMEDIA ADVERTISING, INC. | Directors, Consultants | TECHMEDIA ADVERTISING, INC

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Title: 2009 STOCK OPTION AND INCENTIVE PLAN
Governing Law: Nevada     Date: 9/10/2009

2009 STOCK OPTION AND INCENTIVE PLAN, Parties: techmedia advertising  inc. , directors  consultants , techmedia advertising  inc
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TECHMEDIA ADVERTISING, INC.

 

2009 STOCK OPTION AND INCENTIVE PLAN

 

1.           Purposes of the Plan.

 

The purposes of this Plan are to (i) attract and retain the best available personnel for positions of responsibility within TechMedia Advertising, Inc. (the "Corporation"), (ii) provide additional incentives to Employees of the Corporation, (iii) provide Directors, Consultants and Advisors of the Corporation with an opportunity to acquire a proprietary interest in the Corporation to encourage their continued provision of services to the Corporation and to provide such persons with incentives and rewards for superior performance more directly linked to the profitability of the Corporation's business and increases in shareholder value, and (iv) generally to promote the success of the Corporation's business and the interests of the Corporation and all of its stockholders, through the grant of options to purchase shares of the Corporation's Common Stock and other incentives.

 

Incentive benefits granted hereunder may be either Incentive Stock Options, Non-qualified Stock Options, stock awards, Restricted Shares, cash awards or other incentives determined by the board, as such terms are hereinafter defined.  The types of options or other incentives granted shall be reflected in the terms of written agreements.

 

2.           Definitions.

 

As used herein, the following definitions shall apply:

 

2.1           " Board " shall mean the Board of Directors of TechMedia Advertising, Inc.

 

2.2           " Change of Control " means a change in ownership or control of the Corporation effected through any of the following transactions:

 

(a)           the direct or indirect acquisition by any person or related group of persons (other than by the Corporation or a person that directly or indirectly controls, is controlled by, or is under common control with, the Corporation) of beneficial ownership (within the meaning of Rule 13d-3 of the Exchange Act) of securities possessing more than 50% of the total combined voting power of the Corporation's outstanding securities pursuant to a tender or exchange offer made directly to the Corporation's shareholders, or other transaction, in each case which the Board does not recommend such shareholders to accept; or

 

(b)           a change in the composition of the Board over a period of 12 consecutive months or less such that a majority of the Board members (rounded up to the next whole number) ceases, by reason of one or more contested elections for Board membership, to be comprised of individuals who either (i) have been Board members continuously since the beginning of such period or (ii) have been elected or nominated for election as Board members during such period by at least a majority of the Board members described in clause (i) who were still in office at the time such election or nomination was approved by the Board; or

 

 

 


 

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(c)           a Corporate Transaction as defined below.

 

2.3           " Code " shall mean the US Internal Revenue Code or analogous legislation, as amended from time to time, and the rules and regulations promulgated thereunder.

 

2.4           " Committee " shall mean the Committee constituting the Board in accordance with Section 4.1 of the Plan, if one is appointed.

 

2.5           " Common Stock " or " Common Shares " shall mean (i) shares of the common stock, $0.001 par value, of the Corporation described in the Corporation's Articles of Incorporation, as amended, and (ii) any security into which Common Shares may be converted by reason of any transaction or event of the type referred to in Section 12 of this Plan.

 

2.6           " Corporation " shall mean TechMedia Advertising, Inc., a Nevada corporation, and shall include any parent or subsidiary corporation of the Corporation.

 

2.7           " Consultants " and " Advisors " shall include any third party retained or engaged by the Corporation to provide service to the Corporation, including any employee of such third party providing such services.

 

2.8           " Corporate Transaction " means any of the following shareholder-approved transactions to which the Corporation is a party:

 

(a)           a merger or consolidation in which the Corporation is not the surviving entity, except for a transaction the principal purpose of which is to change the state in which the Corporation is incorporated;

 

(b)           the sale, transfer or other disposition of all or substantially all of the assets of the Corporation in complete liquidation or dissolution of the Corporation; or

 

(c)           any reverse merger in which the Corporation is the surviving entity but in which securities possessing more than 50% of the total combined voting power of the Corporation's outstanding securities are transferred to a person or persons different from the persons holding those securities immediately prior to such merger.

 

2.9           " Date of Grant " means the date specified by the Board or the Committee on which a grant of Options, Stock Appreciation Rights, Performance Shares of Performance Units or a grant or sale of Restricted Shares or Deferred Shares shall become effective.

 

2.10           " Deferral Period " means the period of time during which Deferred Shares are subject to deferral limitations under Section 9.3 of this Plan.

 

2.11           " Deferred Shares " means an award pursuant to Section 9 of this Plan of the right to receive Common Shares at the end of a specified Deferral Period.

 

 

 


 

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2.12           " Director " shall mean a member of the Board.

 

2.13           " Effective Date " shall have the meaning ascribed thereto in Section 6.

 

2.14           " Employee " shall mean any person, including officers and directors, employed by the Corporation.  The payment of a director's fee by the Corporation shall not be sufficient to constitute "employment" by the Corporation.  For inclusiveness purposes, but not having legal effect as to obligations and liabilities, Employee in this Agreement may also encompass Consultants and Advisors where such is appropriate or where such is intended by the Board or by a particular grant hereunder.

 

2.15           " Exchange Act " shall mean the Securities Exchange Act of 1934, as amended, and all pertinent rules and regulations.

 

2.16           " Fair Market Value " shall mean, with respect to the date a given Option or other incentive is granted or exercised, the value of the Common Stock determined by the Board in such manner as it may deem equitable for Plan purposes but, in the case of an Incentive Stock Option, no less than is required by applicable laws or regulations; provided, however, that where there is a public market for the Common Stock, the Fair Market Value per share shall be not less than the closing price for the Common Stock on the last trading day preceding the Date of Grant, as reported by any national securities exchange or the Over-the-Counter Bulletin Board or other exchange on which the Corporation is listed and as determined by the Board; provided, further, that if the Common Stock is not listed on any exchange, the Fair Market Value per share shall not be less than the average of the means between the bid and asked prices quoted on each such date by any two independent persons or entities making a market for the Common Stock, such persons or entities to be selected by the Board.

 

2.17           " Incentive Agreement " shall mean the written agreement between the Corporation and the Participant relating to Incentive Stock Options, Non-qualified Stock Options, stock awards, Restricted Shares and cash awards granted under the Plan, and shall include an Incentive Stock Option Agreement, Non-qualified Stock Option Agreement or other form of Agreement which may be approved by the Board.

 

2.18           " Incentive Award " shall mean the award of one or more Incentives.

 

2.19           " Incentive Stock Option " shall mean an Option which is intended to qualify as an incentive stock option within the meaning of Section 422 of the Code, or any successor provision thereto.

 

2.20           " Incentives " shall mean those incentive benefits which may be granted from time to time under the terms of the Plan which include Incentive Stock Options, Non-qualified Stock Options, stock awards, Restricted Shares and cash awards.

 

2.21           " Management Objectives " means the achievement of performance objectives established pursuant to this Plan for Participants who have received grants of Performance Shares or Performance Units or, when so determined by the Board or the Committee, Restricted Shares.

 

 

 


 

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2.22           " Non-qualified Stock Option " means an Option that is not intended to qualify as a Tax-Qualified Option.

 

2.23           " Option Price " means the purchase price payable upon the exercise of an Option.

 

2.24           " Option " means the right to purchase Common Shares from the Corporation upon the exercise of a Non-qualified Stock Option or a Tax-Qualified Option granted pursuant to Section 7 of this Plan.

 

2.25           " Optioned Stock " shall mean the Common Stock subject to an Option.

 

2.26           " Option Term " shall have the meaning ascribed to it in Section 7.3.

 

2.27           " Optionee " shall mean an Employee, Director, Consultant or Advisor of the Corporation who has been granted one or more Options.

 

2.28           " Parent " shall mean a "parent corporation," whether now or hereafter existing, as defined in Section 424(e) of the Code.

 

2.29           " Participant " means a person who is selected by the Board or a Committee to receive benefits under this Plan and (i) is at that time an officer, including without limitation an officer who may also be a member of the Board, director, or other employee of, or a Consultant or Advisor, to the Corporation, or (ii) has agreed to commence serving in any such capacity.

 

2.30           " Performance Period " means, in respect of a Performance Share or Performance Unit, a period of time established pursuant to Section 10 of this Plan within which the Management objectives relating thereto are to be achieved.

 

2.31           " Performance Share " means a bookkeeping entry that records the equivalent of one Common Share awarded pursuant to Section 10 of this Plan.

 

2.32           " Performance Unit " means a bookkeeping entry that records a unit equivalent to the Board selected monetary unit awarded pursuant to Section 10 of this Plan.

 

2.33           " Plan " shall mean this Stock Option and Incentive Plan, as amended from time to time in accordance with the terms hereof.

 

2.34           " Restricted Shares " means Common Shares granted or sold pursuant to section 8 of this Plan as to which neither the substantial risk of forfeiture nor the restrictions on transfer referred to in Section 8.9 hereof has expired.

 

2.35           " Rule 16b-3 " means Rule 16b-3, as promulgated and amended from time to time by the Securities and Exchange Commission under the Exchange Act, or any successor rule to the same effect.

 

 

 


 

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2.36           " Share " shall mean a share of the Common Stock, as adjusted in accordance with Section 11 of the Plan.

 

2.37           " Subsidiary " shall mean a "subsidiary corporation," whether now or hereafter existing, as defined in Section 424(f) of the Code.

 

2.38           " Tax Date " shall mean the date an Optionee is required to pay the Corporation an amount with respect to tax withholding obligations in connection with the exercise of an option.

 

2.39           " Tax-Qualified Option " means an Option that is intended to qualify under particular provisions of the Code, including without limitation an Incentive Stock Option.

 

2.40           " Termination Date " shall have the meaning ascribed thereto in Section 6.

 

3.           Common Stock Subject to the Plan.

 

3.1           Subject to the provisions of Section 11 of the Plan, the maximum aggregate number of shares which may be optioned and sold or otherwise awarded under the Plan is five million (5,000,000) Common Shares.  Any Common Shares available for grants and awards at the end of any calendar year shall be carried over and shall be available for grants and awards in the subsequent calendar year.  For the purposes of this Section 3:

 

(a)           Upon payment of cash in lieu of exercise provided by any award granted under this Plan, or upon expiration or cancellation of any award granted under this Plan, any Common Shares that were covered by such award and not issued shall again be available for issuance hereunder.

 

(b)           Common Shares covered by any award granted under this Plan shall be deemed to have been issued or transferred, and shall cease to be available for future issuance or transfer in respect of any other award granted hereunder, at the earlier of the time when they are actually issued or transferred or the time when dividends or dividend equivalents are paid thereon; provided, however, that Restricted Shares shall be deemed to have been issued or transferred at the earlier of the time when they cease to be subject to a substantial risk of forfeiture or the time when dividends are paid thereon.

 

(c)           Performance Units that are granted under this Plan and are paid in Common Shares but are not earned by the Participant at the end of the Performance Period shall be available for future grants of incentives hereunder.

 

 

 


 

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4.           Administration of the Plan.

 

4.1            Procedure .

 

(a)           The Board shall administer the Plan and is the body responsible for the Plan; provided, however, that the Board may appoint a Committee consisting solely of two (2) or more "Non-Employee Directors" to conduct day-to-day administration of the Plan on behalf of the Board, in accordance with Rule 16b-3 and subject to the authority of the Board.

 

(b)           Once appointed, the Committee shall continue to serve until otherwise directed by the Board.  From time to time the Board may increase the size of the Committee and appoint additional members thereof, remove members (with or without cause), appoint new members in substitution therefor, and fill vacancies however caused; provided , however , that at no time may any person serve on the Committee if that person's membership would cause the committee not to satisfy the requirements of Rule 16b-3.

 

(c)           A majority of the Committee shall constitute a quorum, and the acts of the members of the Committee who are present at any meeting thereof at which a quorum is present, or acts unanimously approved by the members of the Committee in writing, shall be the acts of the Committee.

 

(d)           Any reference herein to the Board shall, where appropriate, encompass a Committee appointed to administer the Plan in accordance with this Section 4.

 

4.2            Power of the Board or the Committee

 

(a)           Subject to the provisions of the Plan, the Board shall have the authority, in its discretion:  (i) to grant Options or Incentive Awards to Participants; (ii) to determine, upon review of relevant information and in accordance with Section 2.16 of the Plan, the Fair Market Value of the Common stock; (iii) to determine the exercise price per share of Options to be granted, which exercise price shall be determined in accordance with Section 7.4 of the Plan; (iv) to determine the number of Common Shares to be represented by each Option or Incentive Award; (v) to determine the Participants to whom, and the time or times at which, Options and Incentive Awards shall be granted; (vi) to interpret the Plan; (vii) to prescribe, amend and rescind rules and regulations relating to the Plan; (viii) to determine the terms and provisions of each Option and Incentive Award granted (which need not be identical) and, with the consent of the grantee thereof, modify or amend such Option or Incentive Award; (ix) to accelerate or defer (with the consent of the grantee) the exercise date of any Option or Incentive Award; (x) to authorize any person to execute on behalf of the Corporation any instrument required to effectuate the grant of an Option or Incentive Award previously granted by the Board; (xi) to accept or reject the election made by a grantee pursuant to Section 7.5 of the Plan; and (xii) to make all other determinations deemed necessary or advisable for the administration of the Plan.

 

 

 


 

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(b)           The Board or a Committee may delegate to an officer of the Corporation the authority to make decisions pursuant to this Plan, provided that no such delegation may be made that would cause any award or other transaction under the Plan to cease to be exempt from Section 16(b) of the Exchange Act.  A Committee may authorize any one or more of its members or any officer of the Corporation to execute and deliver documents on behalf of the Committee.

 

4.3            Effect of Board or Committee Decisions .  All decisions and determinations and the interpretation and construction by the Board or a Committee of any provision of this Plan or any agreement, notification or document evidencing the grant of Options, Restricted Shares, Deferred Shares, Performance Shares or Performance Units, and any determination by the Board or a Committee pursuant to any provision of this plan or any such agreement, notification or document, shall be final, binding and conclusive with respect to all grantees and any other holders of any Option or Incentive Award granted under the Plan.  No member of the Board or a Committee shall be liable for any such action taken or determination made in good faith.

 

5.           Eligibility.

 

Consistent with the Plan's purposes, Options and Incentive Awards may be granted only to such Directors, Officers, Employees, Consultants and Advisors of the Corporation as determined by the Board.  Subject to the terms of the Plan, an Employee, Officer, Director, Consultant or Advisor who has been granted an Option or Incentive Award may, if he is otherwise eligible, be granted an additional Option or Incentive Award.

 

6.           Board Approval; Effective Date; Termination Date.

 

The Plan shall take effect on August 31, 2009 (the "Effective Date").  The Plan shall terminate on August 31, 2019 (the "Termination Date"); accordingly, no Incentive Award or Option under this Plan may be granted after the Termination Date but the term of an award may extend beyond the Plan Termination Date.

 

7.           Stock Options.

 

The Board or the Committee may from time to time authorize grants to Participants of Options to purchase Common Shares upon such terms and conditions as the Board or the Committee may determine in accordance with the following provisions:

 

7.1            Options to be Granted; Terms.

 

(a)           Options granted pursuant to this Section 7 may be Non-qualified Stock Options or Tax-Qualified Options or combinations thereof.  The Board or the Committee shall determine the specific terms of Options.

 

 

 


 

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(b)           Each grant shall specify the period or periods of continuous employment, or continuous engagement of the consulting or advisory services, of the Optionee by the Corporation or any Subsidiary that are necessary before the Options or installments thereof shall become exercisable.

 

(c)           Any grant of a Non-qualified Stock Option may provide for the payment to the Optionee of dividend equivalent thereon in cash or Common Shares on a current, deferred or contingent basis, or the Board or the Committee may provide that any dividend equivalents shall be credited against the Option Price.

 

7.2            Number of Shares Subject to Options.   Each grant shall specify the number of Common Shares to which it pertains.  Successive grants may be made to the same Optionee regardless of whether any Options previously granted to the Optionee remain unexercised.

 

7.3            Term of Option; Earlier Termination.   Subject to the further provisions of this Section 7, unless otherwise provided in the Option Agreement, the term (the "Option Term") of each Option shall be five (5) years from the Date of Grant.

 

7.4            Exercise Price.

 

(a)           Each grant shall specify an Option Price per Common Share for the Common Share to be issued pursuant to exercise of an Option, which shall be determined by the Board or the Committee.  Unless otherwise determined by the Board an Incentive Stock Option shall be no less than one hundred percent (100%) of the Fair Market Value per share on the Date of Grant, and in the case of a Non-qualified Stock Option shall be no less than seventy-five percent (75%) of the Fair Market Value per share on the Date of Grant.

 

(b)           With respect to Incentive Stock Options, the aggregate Fair Market Value (determined as of the respective Date or Dates of Grant) of the Common Shares for which one or more options granted to any Optionee under this Plan may for the first time become exercisable as Incentive Stock Options under the federal tax laws during any one calendar year (under all employee benefit plans of the Corporation) shall not exceed $100,000.  To the extent that the Optionee holds two or more such options which become exercisable for the first time in the same calendar year, the foregoing limitation on the exercisability of such options as Incentive Stock Options under the deferral tax laws shall be applied on the basis of the order in which such options are granted.  Should the number of Common Shares for which any Incentive Stock Option first becomes exercisable in any calendar year exceed the applicable $100,000 limitation, then that Option may nevertheless be exercised in such calendar year for the excess number of Shares as a Non-qualified Stock Option under the federal tax laws.

 

7.5            Payment for Shares.   The price of an exercised Option and any taxes attributable to the delivery of Common Stock under the Plan, or portion thereof, shall be paid as follows:

 

(a)           Each grant shall specify the form of consideration to be paid in satisfaction of the Option Price and the manner of payment of such consideration, which may include (i) cash in the form of United States currency or check or other cash equivalent acceptable to the Corporation, (ii) nonforfeitable, unrestricted or restricted Common Shares, which are already owned by the Optionee and have a market referenced value at the time of exercise that is equal to the Option Price, (iii) any other legal consideration that the Board or the Committee may deem appropriate, including without limitation any form of consideration authorized pursuant to this Section 7 on such basis as the Board or the Committee may determine in accordance with this Plan, and (iv) any combination of the foregoing.  The Board (or Committee) in its sole discretion may permit a so-called "cashless exercise" (net exercise) of the Options.

 

 

 


 

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In the event of a cashless exercise of the Option the Corporation shall issue the Option holder the number of Shares determined as follows:

 

X = Y (A-B)/A

where:

 

X  = the number of Shares to be issued to the Optionholder.

 

Y = the number of Shares with respect to which the Option is being exercised.

 

A = the average of the closing sale prices of the Common Stock for the five (5) Trading Days immediately prior to (but not including) the Date of Exercise.

 

B = the Exercise Price.

 

(b)           Any grant of a Non-qualified Stock Option may provide that payment of the Option Price may also be made in whole or in part in the form of Restricted Shares or other Common Shares that are not subject to risk of forfeiture or restrictions on transfer in the manner determined by the Board.  Unless otherwise determined by the Board or the Committee on or after the Date of Grant, whenever any Option Price is paid in whole or in part by means of any of the forms of consideration specified in this Section 7.5(b), the Common Shares received by the Optionee upon the exercise of the Non-qualified Stock Option shall be subject to the same risks of forfeiture as those that applied to the consideration surrendered by the Optionee; provided, however, that such risks of forfeiture shall apply only to the same number of Common Shares received by the Optionee as applied to the forfeitable Common Shares surrendered by the Optionee.

 

(c)        &


 
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