Exhibit 3.1
ADIRONDACK PURE SPRINGS MT. WATER CO., INC.
1998 STOCK OPTION PLAN
I. PURPOSE OP PLAN; ADMINISTRATION
1.1 Purpose
The Adirondack Pure Springs Mt. Water Co., Inc. 1998 Stock Option Plan
(hereinafter, the "Plan") is hereby established to grant to officers, directors
and other employees of Adirondack Pure Springs Mt. Water Co., Inc. or of its
parents or subsidiaries (as defined in Sections 424(e) and (f) respectively, of
the Internal Revenue Code of 1986, as amended (the `Code"), if any (individually
and collectively, the "Company"), and to non-employee consultants and advisors
and other persons who may perform significant services for on or behalf of the
Company a favorable opportunity to acquire common stock ("Common Stock"), of the
Company and, thereby to create an incentive for such persons to remain, in the
employ of or provide services to the Company and to contribute to its Success.
The Company may grant under the Plan both incentive stock options
within the meaning of Section 422 of the Code ("Incentive Stock Options") and
stock options that do not qualify for treatment as Incentive Stock Options
("Nonstatutory Options"). Unless expressly provided to the contrary herein, all
references herein to "options," shall include both incentive Stock Options and
Nonstatutory Options.
1.2 Administration
The Plan shall be administered by members of the Board of Directors of
the Company (the `Board"), if each such member administering the Plan is a
"Non-Employee Director" within the meaning of Rule l6b-3 under the Securities
Exchange Act of 1934, as amended ("Rule 16b-3), or a committee (the "Committee")
of two or more directors, each of whom is a disinterested person. Appointment of
Committee members shall be effective upon acceptance of appointment. Committee
members may resign at any time by delivering written notice to the Board.
Vacancies in the Committee may be filled by the Board.
A majority of the members of the Committee shall constitute a quorum
for the purposes of the Plan. Provided a quorum is present, the Committee may
take action by affirmative role or consent of a majority of its members present
at a meeting. Meetings may be held telephonically as long as all members are
able to hear one another, and a member of the Committee shall be deemed to be
present for this purpose if he or she is in simultaneous communication by
telephone with the other members who are able to hear one another. In lieu of
action at a meeting, the Committee may act by written consent or a majority of
its members.
Subject to the express provisions of the Plan the Committee shall have
the authority to construe and interpret the Plan and all Stock Option Agreements
(as defined in Section 3.4)
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entered into pursuant hereto and to define the terms used therein, to prescribe,
adopt, amend, and rescind rules and regulations relating to the administration
of the Plan and to make all other determinations necessary or advisable for the
administration of the Plan; provided, however, hat the Committee may delegate
nondiscretionary administrative duties to such employees of the Company as it
deems proper; and provided, further, in its absolute discretion, the Board may
at any time and from time to time exercise any and all rights and duties of the
Committee under the Plan. Subject to the express limitations of the Plan, the
Committee shall designate the individuals from among the class of persons
eligible to participate as provided in Section 1.3 who shall receive options,
whether an optionee will receive Incentive Stock Options or Nonstatutory
Options, or both, and the amount, price, restrictions and all other terms and
provisions of such options (which need not he identical).
Members of the Committee shall receive such compensation for their
services as members as nay be determined by the Board. All expenses and
liabilities which members of the Committee incur in connection with the
administration of this Plan shall be borne by the Company. The Committee may,
with the approval of the Board, employ attorneys, consultants, accountants,
appraisers, brokers or other persons. The Committee, the Company and the
Company's officers and directors shall be entitled to rely upon the advise,
opinions or valuations of any such persons. No members of the Committee or Board
shall be personally liable for any action, determination or interpretation made
in good faith with respect to the Plan, and all members of the Committee shall
be fully protected by the Company in respect of any such action, determination
or interpretation.
1.3 Participation
Officers, Directors, employees of the Company and consultants shall be
eligible for selection to participate in the Plan upon approval by the
Committee; provided, however that only `employees' (within the meaning of
Section 3401(c) of the Code) of the Company shall be eligible for the grant of
Incentive Stock Options. An individual who has been granted an options may, if
otherwise eligible, be granted additional options if the Committee shall so
determine, provided that no recipient may be granted options to purchase more
than 20% of the shares of Common Stock initially reserved for issuance under the
Plan. No person is eligible to participate in the Plan by mater of right; only
those eligible persons who are selected by the Committee in its discretion shall
participate in the Plan.
1.4 Stock Subject to the Plan
Subject to adjustment as provided in Section 3.5, the stock to be
offered under the Plan shall be shares of authorized but unissued Common Stock,
including any shares repurchased under the terms of the Plan or any Stock Option
Agreement entered into pursuant hereto, the cumulative aggregate number of
shares of Common Stock to be issued under the Plan shall not exceed 1,500,000,
subject to adjustment as set forth in Section 3.5.
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If any options granted hereunder shall expire or terminate for any
reason without having been fully exercised, the unpurchased shares subject
thereto shall again be available for the purposes of the Plan. For purposes of
this Section 1.4, where the exercise price of options is paid by means of the
grantees surrender of previously owned shares of Common Stock, only the net
number of additional shares issued and which remain outstanding in connection
with such exercise shall be deemed "issued" for purposes of the Plan.
2. STOCK OPTIONS
2.1 Option Price
The exercise price of each Incentive Stock option granted under the
Plan shall be determined by the Committee, but shall not be less than 100% of
the `Fair Market Value' (as defined below) of Common Stock on the date of grant.
If an Incentive Stock Option is granted to an employee who at the time such
option is granted owns (within the meaning of section 424(d) of the Code) more
than 10% of the total combined voting power of all classes of capital stock of
the Company, the option exercise price shall be at least 110% of the Fair Market
Value of Common Stock on the date of grant and the option by its terms shall not
be exercisable after the expiration of 5 years from the date such option is
granted. The exercise price of each Nonstatutory Option also shall be determined
by the committee, but shall not be less than 85% of the Fair Market Value of
Common Stock on the date of grant. The status of each option granted under the
Plan as either an Incentive Stock Option or a Nonstatutory Stock Option shall be
determined by the Committee at the time the Committee acts to grant the options,
and shall be clearly identified as such in the Stock Option Agreement relating
thereto.
'Fair Market Value' for purposes of the Plan shall mean (i) the closing
price of a share of Common Stock on the principal exchange on which shares of
Common Stock are then trading, if any, on the day previous to such date, or, if
shares were not traded on the day previous to such date, then on the next
preceding trading day during which a sale occurred; or (ii) if Common Stock is
not traded on an exchange but is quoted on Nasdaq or a successor quotation
system, (1) the last sales price (if Common Stock is then listed on the Nasdaq
Stock Market) or (2) the mean between the closing representative bid and asked
price (in all other cases) for Common Stock on the day prior to such date as
reported by Nasdaq or such successor quotation system; or (iii) if there is no
listing or trading of Common Stock either on a national exchange or
over-the-counter, that price determined in good faith by the Committee to be the
fair value per share of Common Stock, based upon such evidence as it deems
necessary or advisable.
In the discretion of the Committee exercised at the time the option is
exercised, the exercise price of any options granted under the Plan shall be
paid in full in cash, by check or by the optionees interest-bearing promissory
note (subject to any limitations of applicable state corporations law) delivered
at the time of exercise; provided, however, that subject to the timing
requirements of Section 2.7, in the discretion of the Committee and upon receipt
of all regulatory approvals, the person exercising the options may deliver as
payment in whole or in part of such exercise price certificates for Common Stock
of the Company (duly endorsed or with duly executed stock powers attached),
which shall be valued at its Fair Market Value on the day of exercise of the
option, or other property deemed appropriate by the Committee; and, provided
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further, that subject to Section 422 of the Code so-called cashless exercises as
permitted under applicable rules and regulations of the Securities and Exchange
Commission and the Federal Reserve Board shall be permitted in the discretion of
the Committee or the Board. Without limiting the Committee's discretion in this
regard, consecutive book entry stock-for-stock exercises of options (or
"pyramiding") also are permitted in he Committee's discretion.
Irrespective of the form of payment, the delivery of shares pursuant to
the exercise of an option shall be conditioned upon payment by the optionee to
the Company of amounts sufficient to enable the Company to pay all federal,
state, and local withholding taxes applicable, in the Company's judgment, to the
exercise. In the discretion of the Committee, such payment to the Company may be
effected trough (i) the Company's withholding from the number of shares of
Common Stock that would otherwise be delivered to the optionee by the Company on
exercise of the option a number of shares of Common Stock equal in value (as
determined by the Fair Market Value of Common Stock on the date of exercise) to
the aggregate withholding taxes, (ii) withholding by the Company from other
amounts contemporaneously owned by the Company to the optionee, or (iv) any
combination of these three methods, as determined by the Committee in its
discretion.
2.2 Option Period
(a) The Committee shall provide, in the terms of each Stock Option
Agreement, when the option subject to such agreement expires and becomes
unexercisable, but in no event will an Incentive Stock Option granted under the
Plan be exercisable after the expiration of ten years from the date it is
granted. Without limiting the generality of the foregoing, the Committee may
provide in the Stock Option Agreement that the option thereto expires 30 days
following a Termination of Employment for any reason other than the death or
disability or sic months following a Termination of employment for disability or
following an optionee's death.
(b) Outside Date for Exercise: Notwithstanding any provision of this
Section 2.2, in no event shall any option granted under the Plan be exercised
after the expiration date of such option set forth in the applicable Stock
Option Agreement.
2.3 Exercise of Options
Each option granted under the Plan shall become exercisable and the
total number of shares subject thereto be purchasable, in a lump sum or in such
installments which need not be equal, as the Committee shall determine;
provided, however, that each option shall become exercisable in full no later
than ten years after such option is granted, and each option shall become
exercisable as to at least 10% of the shares of Common Stock covered thereby on
each anniversary of the date such option is granted; and provided, further, that
if the holder of an option shall not in any given installment period purchase
all of the shares which such holder is entitled to purchase in such installment
period, such holder's right to purchase any shares not purchased in such
installment period shall continue until the expiration or sooner termination of
such holder's option. The Committee may, at any time after grant of the option
and from to time, Increase the number of shares purchasable in any installment,
subject to the total number of
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shares subject to the option and the limitations set forth in Section 2.5. At
any time and from time to time prior to the time when any exercisable option or
exercisable option thereof becomes unexercisable under the Plan or the
applicable Stock Option Agreement, such option or portion thereof may be
exercised in whole or in part; provided, however that the Committee may, by the
terms of option, require any partial exercise to be with respect to a specified
minimum number of shares. No option or installment thereof shall be exercisable
except with respect to whole shares. Fractional share interests shall he
disregarded, except that they may be accumulated as provided above and except
that if such a fractional share interest constitutes the total shares of Common
Stock remaining available for purchase under an option at the time of exercise,
the optionee shall be entitled to receive on exercise a certified or bank
cashier's check in an amount equal to the Fair Market Value of such fractional
share of stock.
2.4 Transferability of Options
Except as the Committee may determine as aforesaid, an option granted
under the Plan shall, by its terms, be nontransferable by the optionee other
than by will or the laws of descent and distribution, or pursuant to a qualified
domestic relations order (as defined by the Code), and shall be exercisable
during the optionee's lifetime only by the optionee or by his or her guardian or
legal representative. More particularly, but without limiting the generality of
the immediately preceding sentence, an option may not be assigned, transferred
(except as provided in the preceding sentence), pledged or hypothecated (whether
by operation of law or otherwise), and shall not be subject to execution
attachment or similar process. Any attempted assignment, transfer, pledge,
hypothecation or other disposition of any option contrary to the provisions of
the Plan and the applicable Stock Option Agreement, and any levy of any
attachment or similar process upon an option, shall be null and void, and
otherwise without effect, and the Committee may, in its sole discretion, upon
the happening of any such event, terminate such option forthwith.
2.5 Limitation on Exercise of Incentive Stock Options
To the extent that the aggregate Fair Market Value (determined on the
date of grant) of the Common Stock with respect to which Incentive Stock Options
granted hereunder (together with all other Incentive Stock Option plans of the
Company) are exercisable for the first time by an optionee in any calendar year
under the Plan exceeds $100,000, such options granted hereunder shall be treated
as Nonstatutory Options to the extent required by Section 422 of the Code. The
rule set forth in the preceding sentence shall be applied taking options into
account in the order in which they were granted.
2.6 Disqualifying Dispositions of Incentive Stock Options
If Common Stock acquired upon exercise of any Incentive Stock Option is
disposed of in a disposition that, under Section 422 of the Code, disqualifies
the option holder from the application of Section 421(a) of the code, the holder
of the Common Stock immediately before the disposition shall comply with any
requirements imposed by the Company in order to enable the Company to secure the
related income tax deduction to which it is entitled in such event.
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2.7 Certain Timing Requirements.
At the discretion of the Committee, shares of common Stock issuable to
the optionee upon exercise of an option may be used to satisfy the option
exercise price or the tax withholding consequences of such exercise in the case
of persons subject to Section 6 of the Securities Exchange Act of 1934, as
amended, only (i) during the period beginning on the third business day
following the date of release of the quarterly or annual summary statement of
sales and earnings of the Company and ending on the twelfth business day
following such date or (ii) pursuant to an irrevocable written election by the
optionee to use shares of Common Stock issuable to the optionee upon exercise of
the option to pay all or part of the option price or the withholding taxes made
at least six months prior to the payment of such option price or withholding
taxes.
2.8 No Affect on Employment
Nothing in the Plan or in any Stock Option Agreement hereunder shall
confer upon any optionee any right to continue in the employ of the Company, any
Parent Corporation or any subsidiary or shall interfere with or restrict in any
way the fights of the Company, its Patent Corporation and its Subsidiaries,
which are hereby expressly reserved, to discharge any optionee at any time for
any reason whatsoever, with or without cause.
For purposes of the Plan, 'Parent corporation' shall mean any
corporation in an unbroken chain of corporations ending with the Company if each
of the corporations other than the Company then owns stock possessing 50% or
more of the total combined voting power of all classes of stock in one of the
other corporations in such chain. For purposes of the Plan, "Subsidiary" shall
mean any corporation in an unbroken chain of corporations beginning with the
Company if each of the corporations other than the last corporation in the
unbroken chain then owns stock possessing 50% or more of the total combined
voting power of all classes of stock on one of the other corporations in such
chain.
3. OTHER PROVISIONS
3.1 Sick Leave and Leaves of Absence.
Unless otherwise provided in the Stock Option Agreement and to the
extent permitted by Section 422 of the Code, an optionee's employment shall not
be deemed to terminate by reason of sick leave, military leave or other leave of
absence approved by the Company if the period of any such leave does not exceed
a period approved by the Company, or, if longer, if the optionee's right to
reemployment by the Company is guaranteed either contractually or by statute. A
Stock Option Agreement may contain such additional or different provisions with
respect to leave of absence as time Committee may approve, either at the time of
grant of an option or at a later time.
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3.2 Termination of Employment
For purposes of the Plan "Termination of Employment," shall mean the
time when the employee-employer relationship between the optionee and the
Company, any Subsidiary or any Parent Corporation is terminated for any reason,
including, but not by way of limitation, a termination by resignation,
discharge, death, disability or retirement; but excluding (i) terminations where
there is a simultaneous reemployment or continuing employment of an optionee by
the Company, any Subsidiary or any Parent corporation (ii) at the discretion of
the Committee, terminations which result in a temporary severance of the
employee-employer relationship, and (iii) at the discretion of the Committee,
terminations which are followed by the simultaneous establishment of a
consulting relationship by the Company, a Subsidiary or any Parent Corporation
with the former employee. Subject to Section 3.1, the Committee in its absolute
discretion, shall determine the affect of all matters and questions relating to
Termination of Employment; provided, however, that, with respect to Incentive
Stock Options, a leave of absence or other change in the employee-employer
relationship shall constitute a Termination of Employment if, and to the extent
that such leave of absence or other change interrupts employment for the
purposes of Section 422(a)(2) of the code and then-applicable regulations and
revenue rulings under said Section.
3.3 Issuance of Stock Certificates
Upon exercise of an option, the Company shall deliver to the person
exercising such option a stock certificate evidencing the shares of Common Stock
acquired upon exercise. Notwithstanding the forgoing, the Committee in its
discretion may require the Company to retain possession of any certificate
evidencing stock acquired upon exercise of an option which remains subject to
repurchase under the provisions of the Stock Option Agreement or any other
agreement signed by the optionee in order to facilitate such repurchase
provisions.
3.4 Terms and Conditions of Options
Each option granted under the Plan shall be evidenced by a written
Stock Option Agreement (Stock Option Agreement') between the option holder and
the Company providing that the option is subject to the terms and conditions of
the Plan and to such other terms and conditions not inconsistent therewith as
the Committee may deem appropriate in each case.
3.5 Adjustments Upon Changes in Capitalization; Merger and
Consolidation.
If the outstanding shares of Common Stock arc changed into, or
exchange for cash or a different number or kind of shares or securities of the
Company or of another corporation through reorganization, merger.
recapitalization, reclassification, stock split-up, reverse stock split, stock
dividend, stock consolidation, stock combination, stock reclassification or
similar transaction, an appropriate adjustment shall he made by the Committee in
the number and kind of shares as to which options and restricted stock may be
granted. In the vent of such a change or exchange, other than for shares or
securities of another corporation or by reason of
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reorganization, the Committee shall also make a corresponding adjustment
changing the number or kind of shares and the exercise price per share allocated
to unexercised options or portions thereof, which shall have been granted prior
to any such change, shall likewise be made. Any such adjustment, however, shall
be made without change in the total price applicable to the unexercised portion
of the option but with a corresponding adjustment in time price for each share
(except for any change in the aggregate price resulting from rounding-off of
share quantities or prices).
In the event of a "spin-off' or other substantial distribution of
assets of the Company which has a material diminutive effect upon the Fair
Market Value of the Common Stock, the Committee in its discretion shall make an
appropriate and equitable adjustment to the exercise prices of options then
outstanding under the Plan
Where an adjustment under this Section 3.5 of the type described above
is made to an Incentive Stock Option, the adjustment will be made in a manner
which will not be considered a `modification under the provisions of subsection
424(b)(3) of the Code.
In connection with the dissolution or liquidation of the Company or a
partial liquidation involving 50% or more of the assets of The Company, a
reorganization of The Company in which another entity is the survivor, a merger
or reorganization of The Company under which more than 50% of the Common Stock
outstanding prior to the merger or reorganization is converted into cash or into
another security, a sale of more than 50% of the Company's assets, or a similar
event that the Committee determines, in its discretion, would materially alter
the structure of The Company, or its ownership, the Committee, upon 30 days
prior written notice to the option holders, may, in its discretion, do one or
more of the following: (i) shorten the period during which options are
exercisable (provided they remain exercisable for at least 30 days after the
date the notice is given); (ii) accelerate any vesting schedule to which an
option is subject; (iii) arrange to have the surviving or successor entity grant
replacement options with appropriate adjustments in the number and kind of
securities to each option to the extent then exercisable (including any options
as to which the exercise has been accelerated as contemplated in clause (ii)
above), of any amount that is the equivalent of the Fair Market Value of the
Common Stock (at the effective time of the dissolution, liquidation, merger,
reorganization, sale or other event) or the fair market value of the option. In
the case of a change in corporate control, the Committee may, iii considering
the advisability or the terms and conditions of any acceleration of the
exercisability of any option pursuant to this Section 3.5, take into account the
penalties that may result directly or indirectly from such acceleration to
either the Company or the option holder, or both, under Section 280G of the
Code, and may decide to limit such acceleration to the extent necessary to avoid
or mitigate such penalties or their effects.
No fractional share of Common Stock shall be issued under the Plan on
account of any adjustment under this Section 3.5.
3.6 Rights of Participants and Beneficiaries
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The Company shall pay all amounts payable hereunder only to the option
holder or beneficiaries entitled thereto pursuant to the Plan. The Company shall
not be liable for the debts, contracts or engagements of any optionee or his or
her beneficiaries, and rights to cash payments under the Plan may not be taken
in execution by attachment or garnishment, or by any other legal or equitable
proceeding while in the hands of the Company.
3.7 Government Regulations
The Plan, and the grant and exercise of options and the issuance and
delivery of shares of Common Stock under options granted hereunder, shall be
subject to compliance with all applicable federal and state laws, rules arid
regulations including but not limited to state and federal securities law) and
federal margin requirements and to such approvals by any listing, regulatory or
governmental authority as may, in the opinion of counsel for the Company, be
necessary or advisable in connection therewith. Any securities delivered under
the Plan shall be subject to such restrictions, and the person acquiring such
securities shall, if requested by the Company, provide such assurances and
representations to the Company as the Company may deem necessary or desirable to
assure compliance with all applicable legal requirements. To the extent
permitted by applicable law, the Plan and options granted hereunder shall be
deemed amended to the extent necessary to conform to such laws, rules and
regulations.
3.8 Amendment and Termination
The Board or the Committee may at any time suspend, amend or terminate
the Plan and may, with the consent of the option holder, make such modifications
of the terms and conditions of such option holder's option as it shall deem
advisable, provided, however, that, without approval of the Company's
stockholders given within twelve months before or after the action by the Board
or the Committee, no action of the Board or the Committee may, (A) materially
increase the benefits accruing to participants under the Plan; (B) materially
increase the number of securities which may be issued under the Plan; or (C)
materially modify the requirements as to eligibility for participation in the
Plan. No option may he granted during any suspension of the Plan or after such
termination. The amendment, suspension or termination of the Plan shall not,
without the consent of the option holder affected thereby, alter or impair any
rights or obligations under any option theretofore granted under the Plan. No
option may be granted during any period of suspension nor after termination of
the Plan, and in no event may any option be granted under the Plan after the
expiration of ten years from the date the Plan is adopted by the Board.
3.9 Time of Grant and Exercise Option
An option shall be deemed to be exercised when the Secretary of the
Company receives written notice from an option holder of such exercised, payment
of the purchase price determined pursuant to Section 2.1 of the Plan and set
forth in the Stock Option Agreement, and all representations, indemnifications
and documents reasonably requested by the Committee.
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3.10 Privileges of Stock Ownership; Non-Distributive Intent;
Reports to Option Holders
A participant in the Plan shall be entitled to the privilege of stock
ownership as to any shares of Common Stock not actually issued to the optionee.
Upon exercise of an option at a time when there is not in effect under the
Securities Act of 1933, as amended, a Registration Statement relating to the
Common Stock issuable upon exercise or payment therefore and available for
delivery a Prospectus meeting the requirements of Section 10(a)(3) of said Act,
the optionee shall represent and warrant in writing to the Company that the
shares purchased are being acquired for investment and not with a view to the
distribution thereof
The Company shall furnish to each optionee under the Plan the
Company's annual report and such other periodic reports, if any, as are
disseminated by the Company in the ordinary course to its stockholders.
3.11 Legending Share Certificates
In order to enforce any restrictions imposed upon Common Stock issued
upon exercise of an option granted under the Plan or to which such Common Stock
may be subject, the Committee may cause a legend or legends to be placed on any
share certificates representing such Common Stock, which legend or legends shall
make appropriate reference to such restrictions, including, but not limited to,
a restriction against all or such Common Stock for any period of time as may be
required by applicable laws or regulations. If any restriction with respect to
which a legend was placed on any certificate ceases to apply to Common Stock
represented by such certificate, the owner of the Common Stock represented by
such certificates may require the Company to cause the issuance of a new
certificate not bearing the legend.
Additionally, and not by way of limitation the Committee may impose
such restrictions on any Common Stock issued pursuant to the Plan as it may deem
advisable, including, without mutation, restrictions under the requirements of
any stock exchange or market upon which Common Stock is then traded.
3.12 Use of Proceeds
Proceeds realized pursuant to the exercise of options under the Plan
shall constitute general funds of the Company.
3.13 Chances in Capital Structure; No Impediment to Corporate
Transactions
The existence of outstanding options under the Plan shall not affect
the Company's right to effect adjustment, recapitalization, reorganizations or
other changes in its or any other corporations capital structure or business,
any merger or consolidation, any issuance of bonds, debentures, preferred or
prior preference stock ahead of or affecting Common Stock, the dissolution or
liquidation of the Company's or any other corporations assets or business, or
any other corporate act, whether similar to the events described above or
otherwise.
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3. 14 Effective Date of the Plan.
The Plan shall be effective as of the date of its approval by the
stockholders of The Company within twelve months after the date of the Bard's
initial adoption of the Plan. Options may be granted but not exercised prior to
stockholder approval of the Plan. If any options are so granted and stockholder
approval shall not have been obtained within twelve months of the date of
adoption of this Plan by the Board of Directors, such options shall terminate
retroactively as of the date they were granted.
3.15 Termination
The Plan shall terminate automatically as of the close of business on
the day preceding the tenth anniversary date of its adoption by the Board or
earlier as provided in Section 3.8. Unless otherwise provided herein, the
termination of the Plan shall not affect the validity of any option agreement
outstanding at the date of such termination.
3.16 Effective Date of the Plan
The adoption of the Plan shall not affect any other compensation or
incentive plans in effect for the Company, any subsidiary or any Parent
Corporation. Nothing in the Plan shall be construed to limit the right of the
Company (i) to establish any other forms of incentives or compensation for
employees of the company, any Subsidiary or any Parent Corporation or (ii) to
grant or assume options or other rights otherwise than under the Plan in
connection with any proper corporation purpose including but not by way of
limitation, the grant or assumption of options in connection with the
acquisition by purchase, lease, merger. consolidation or otherwise, of the
business, stock or assets of any corporation, partnership, firm or association.
