TECHMEDIA ADVERTISING,
INC.
2009 STOCK OPTION AND INCENTIVE 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.
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
2
(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.
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.
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.
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.
4. Administration
of the Plan.
(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.
(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.
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.
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.
(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.
(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.
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 =
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) 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.