exv4w6



 





Exhibit 4.6




2003 STOCK OPTION PLAN, AS AMENDED




Of




UTIX GROUP, INC.




1. PURPOSES OF THE PLAN




     The purposes of the 2003 Stock Option Plan (the “Plan”) of Utix Group, Inc. (f/k/a Chantal
Skin Care Corporation), a Delaware corporation (the “Company”), are to:



     (a) Encourage selected employees, directors and consultants to improve operations and increase
profits of the Company;



     (b) Encourage selected employees, directors and consultants to accept or continue employment
or association with the Company or its Affiliates; and



     (c) Increase the interest of selected employees, directors and consultants in the Company’s
welfare through participation in the growth in value of the common stock of the Company (the
“Shares”).



     Options granted under this Plan (“Options”) may be “incentive stock options” (“ISOs”) intended
to satisfy the requirements of Section 422 of the Internal Revenue Code of 1986, as amended, and
the regulations thereunder (the “Code”), or “non-qualified stock options” (“NQSOs”).



2. ELIGIBLE PERSONS




     Every person who at the date of grant of an Option is an employee of the Company or of any
Affiliate (as defined below) of the Company is eligible to receive NQSOs or ISOs under this Plan.
Every person who at the date of grant is a consultant to, or non-employee director of, the Company
or any Affiliate (as defined below) of the Company is eligible to receive NQSOs under this Plan.
The term “Affiliate” as used in the Plan means a parent or subsidiary corporation as defined in the
applicable provisions (currently Sections 424(e) and (f), respectively) of the Code. The term
“employee” includes an officer or director who is an employee of the Company. The term
“consultant” includes persons employed by, or otherwise affiliated with, a consultant.



3. STOCK SUBJECT TO THIS PLAN; MAXIMUM NUMBER OF GRANTS




     Subject to the provisions of Section 6.1.1 of the Plan, the total number of Shares which may
be issued under Options granted pursuant to this Plan shall not exceed Seven Hundred and Fifty
Thousand (750,000) Shares. The Shares covered by the portion of any grant under the Plan which
expires unexercised shall become available again for grants under the Plan.



 









 





4. ADMINISTRATION




     (a) The Plan shall be administered by either the Board of Directors of the Company (the
“Board”) or by a committee (the “Committee”) to which administration of the Plan, or of part of the
Plan, may be delegated by the Board (in either case, the “Administrator”). The Board shall appoint
and remove members of such Committee, if any, in its discretion in accordance with applicable laws.
If necessary in order to comply with Rule 16b-3 under the Securities Exchange Act of 1934, as
amended (the “Exchange Act”) and Section 162(m) of the Code, the Committee shall, in the Board’s
discretion, be comprised solely of “non-employee directors” within the meaning of said Rule 16b-3
and “outside directors” within the meaning of Section 162(m) of the Code. The foregoing
notwithstanding, the Administrator may delegate nondiscretionary administrative duties to such
employees of the Company as it deems proper and the Board, in its absolute discretion, may at any
time and from time to time exercise any and all rights and duties of the Administrator under the
Plan.



     (b) Subject to the other provisions of this Plan, the Administrator shall have the authority,
in its discretion: (i) to grant Options; (ii) to determine the fair market value of the Shares
subject to Options; (iii) to determine the exercise price of Options granted; (iv) to determine the
persons to whom, and the time or times at which, Options shall be granted, and the number of shares
subject to each Option; (v) to interpret this Plan; (vi) to prescribe, amend, and rescind rules and
regulations relating to this Plan; (vii) to determine the terms and provisions of each Option
granted (which need not be identical), including but not limited to, the time or times at which
Options shall be exercisable; (viii) with the consent of the optionee, to modify or amend any
Option; (ix) to defer (with the consent of the optionee) the exercise date of any Option; (x) to
authorize any person to execute on behalf of the Company any instrument evidencing the grant of an
Option; and (xi) to make all other determinations deemed necessary or advisable for the
administration of this Plan. The Administrator may delegate nondiscretionary administrative duties
to such employees of the Company as it deems proper.



     (c) All questions of interpretation, implementation, and application of this Plan shall be
determined by the Administrator. Such determinations shall be final and binding on all persons.



5. GRANTING OF OPTIONS; OPTION AGREEMENT




     (a) No Options shall be granted under this Plan after 10 years from the date of adoption of
this Plan by the Board.



     (b) Each Option shall be evidenced by a written stock option agreement, in form satisfactory
to the Administrator, executed by the Company and the person to whom such Option is granted.



     (c) The stock option agreement shall specify whether each Option it evidences is an NQSO or an
ISO.



     (d) Subject to Section 6.3.3 with respect to ISOs, the Administrator may approve the grant of
Options under this Plan to persons who are expected to become employees, directors or consultants
of the Company, but are not employees, directors or consultants at the date of approval, and the
date of approval shall be deemed to be the date of grant unless otherwise specified by the
Administrator.



 









 





6. TERMS AND CONDITIONS OF OPTIONS




     Each Option granted under this Plan shall be subject to the terms and conditions set forth in
Section 6.1. ISOs shall also be subject to the terms and conditions set forth in Section 6.3.



     6.1 Terms and Conditions to Which All Options Are Subject. All Options granted under this
Plan shall be subject to the following terms and conditions:




          6.1.1 Changes in Capital Structure. Subject to Section 6.1.2, if the stock of the Company is
changed by reason of a stock split, reverse stock split, stock dividend, or recapitalization,
combination or reclassification, appropriate adjustments shall be made by the Board in (a) the
number and class of shares of stock subject to this Plan and each Option outstanding under this
Plan, and (b) the exercise price of each outstanding Option; provided, however, that the Company
shall not be required to issue fractional shares as a result of any such adjustments. Each such
adjustment shall be subject to approval by the Board in its sole discretion.




          6.1.2 Corporate Transactions. In the event of the proposed dissolution or liquidation of the
Company, the Administrator shall notify each optionee at least 30 days prior to such proposed
action. To the extent not previously exercised, all Options will terminate immediately prior to
the consummation of such proposed action; provided, however, that the Administrator, in the
exercise of its sole discretion, may permit exercise of any Options prior to their termination,
even if such Options were not otherwise exercisable. In the event of a merger or consolidation of
the Company with or into another corporation or entity in which the Company does not survive, or in
the event of a sale of all or substantially all of the assets of the Company in which the
stockholders of the Company receive securities of the acquiring entity or an affiliate thereof, all
Options shall become immediately vested and exercisable by the Participant.




          6.1.3 Time of Option Exercise. Subject to Section 5 and Section 6.3.4, Options granted under
this Plan shall be exercisable (a) immediately as of the effective date of the stock option
agreement granting the Option, or (b) in accordance with a schedule as may be set by the
Administrator (each such date on such schedule, the “Vesting Base Date”) and specified in the
written stock option agreement relating to such Option. In any case, no Option shall be
exercisable until a written stock option agreement in form satisfactory to the Company is executed
by the Company and the optionee.




          6.1.4 Option Grant Date. The date of grant of an Option under this Plan shall be the date as
of which the Administrator approves the grant.




          6.1.5 Nontransferability of Option Rights. Except with the express written approval of the
Administrator which approval the Administrator is authorized to give only with respect to NQSOs, no
Option granted under this Plan shall be assignable or otherwise transferable by the optionee except
by will, by the laws of descent and distribution or pursuant to a qualified domestic relations
order. During the life of the optionee, an Option shall be exercisable only by the optionee.




          6.1.6 Payment. Except as provided below, payment in full, in cash, shall be made for all
stock purchased at the time written notice of exercise of an Option is given to the Company, and
proceeds of any payment shall constitute general funds of the Company. The Administrator, in the
exercise of its absolute discretion, may authorize any one or more of the following additional
methods of payment:




 









 








               (a) Subject to the discretion of the Administrator and the terms of the stock option agreement
granting the Option, delivery by the optionee of Shares already owned by the optionee for all or
part of the Option price, provided the fair market value (determined as set forth in Section
6.1.10) of such Shares being delivered is equal on the date of exercise to the Option price, or
such portion thereof as the optionee is authorized to pay by delivery of such stock; and



               (b) Subject to the discretion of the Administrator, through the surrender of Shares then
issuable upon exercise of the Option, provided the fair market value (determined as set forth in
Section 6.1.10) of such Shares is equal on the date of exercise to the Option price, or such
portion thereof as the optionee is authorized to pay by surrender of such stock.



          6.1.7 Termination of Employment. If for any reason other than death or permanent and total
disability, an optionee ceases to be employed by the Company or any of its Affiliates (such event
being called a “Termination”), Options held at the date of Termination (to the extent then
exercisable) may be exercised in whole or in part at any time within three months of the date of
such Termination, or such other period of not less than 30 days after the date of such Termination
as is specified in the Option Agreement or by amendment thereof (but in no event after the
Expiration Date); provided, however, that if such exercise of the Option would result in liability
for the optionee under Section 16(b) of the Exchange Act, then such three-month period
automatically shall be extended until the tenth day following the last date upon which optionee has
any liability under section 16(b) (but in no event after the Expiration Date). If an optionee dies
or becomes permanently and totally disabled (within the meaning of Section 22(e) (3) of the Code)
while employed by the Company or an Affiliate or within the period that the Option remains
exercisable after Termination, Options then held (to the extent then exercisable) may be exercised,
in whole twelve months after the permanent and total disability of the optionee or any longer
period specified in the Option or in part, by the optionee, by the optionee’s personal
representative or by the person to whom the Option is transferred by devise or the laws of descent
and distribution, at any time within twelve months after the death or Agreement or by amendment
thereof (but in no event after the Expiration Date). For purposes of this Section 6.1.7,
“employment” includes service as a director or as a consultant. For purposes of this Section
6.1.7, 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 Administrator, if the period of any such leave does
not exceed 90 days or, if longer, if the optionee’s right to reemployment by the Company or any
Affiliate is guaranteed either contractually or by statute.




          6.1.8 Withholding and Employment Taxes. At the time of exercise of an Option and as a
condition thereto, or at such other time as the amount of such obligations becomes determinable
(the “Tax Date”), the optionee shall remit to the Company in cash all applicable federal and state
withholding and employment taxes. Such obligation to remit may be satisfied, if authorized by the
Administrator in its sole discretion, after considering any tax, accounting and financial
consequences, by the optionee’s (i) delivery of a promissory note in the required amount on such
terms as the Administrator deems appropriate, (ii) tendering to the Company previously owned Shares
or other securities of the Company with a fair market value equal to the required amount, or (iii)
agreeing to have Shares (with a fair market equal to the required amount) which are acquired upon
exercise of the Option withheld by the Company.




          6.1.9 Other Provisions. Each Option granted under this Plan may contain such other terms,
provisions, and conditions not inconsistent with this Plan as may be determined by the
Administrator, and each ISO granted under this Plan shall include such provisions and conditions as
are necessary to qualify the Option as an “incentive stock option” within the meaning of Section
422 of the Code.




 









 








          6.1.10 Determination of Value. For purposes of the Plan, the fair market value of Shares or
other securities of the Company shall be determined as follows:




               (a) Fair market value shall be the closing price of such stock on the date before the date the
value is to be determined on the principal recognized securities exchange or recognized securities
market on which such stock is reported, but if selling prices are not reported, its fair market
value shall be the mean between the high bid and low asked prices for such stock on the date before
the date the value is to be determined (or if there are no quoted prices for such date, then for
the last preceding business day on which there were quoted prices).



               (b) In the absence of an established market for the stock, the fair market value thereof shall
be determined in good faith by the Administrator, with reference to the Company’s net worth,
prospective earning power, dividend-paying capacity, and other relevant factors, including the
goodwill of the Company, the economic outlook in the Company’s industry, the Company’s position in
the industry, the Company’s management, and the values of stock of other corporations in the same
or similar line of business.



          6.1.11 Option Term, Subject to Section 6,3 4, no Option shall be exercisable more than 10
years after the date of grant, or such lesser period of time as is set forth in the stock option
agreement (the end of the maximum exercise period stated in the stock option agreement is referred
to in this Plan as the “Expiration Date”).




     6.2 Intentionally Omitted.



     6.3 Terms and Conditions to Which Only ISOs Are Subject. Options granted under this Plan
which are designated as ISOs shall be subject to the following terms and conditions:



          6.3.1 Exercise Price.




               (a) Except as set forth in Section 6.3.1(b), the exercise price of an ISO shall be determined
in accordance with the applicable provisions of the Code and shall in no event be less than the
fair market value (determined in accordance with Section 6.1.10) of the stock covered by the Option
at the time the Option is granted.



               (b) The exercise price of an ISO granted to any Ten Percent Stockholder shall in no event be
less than 110% of the fair market value (determined in accordance with Section 6.1.10) of the stock
covered by the Option at the time the Option is granted.



          6.3.2 Disqualifying Dispositions. If stock acquired by exercise of an ISO granted pursuant
to this Plan is disposed of in a “disqualifying disposition” within the meaning of Section 422 of
the Code (a disposition within two years from the date of grant of the Option or within one year
after the transfer of such stock on exercise of the Option), the holder of the stock immediately
before the disposition shall promptly notify the Company in writing of the date and terms of the
disposition and shall provide such other information regarding the Option as the Company may
reasonably require




          6.3.3 Grant Date. If an ISO is granted in anticipation of employment as provided in Section
5(d), the Option shall be deemed granted, without further approval, on the date the grantee assumes
the employment relationship forming the basis for such grant, and, in addition, satisfies all
requirements of this Plan for Options granted on that date.




 









 








          6.3.4 Term. Notwithstanding Section 6.1.11, no ISO granted to any Ten Percent Stockholder
shall be exercisable more than five years after the date of grant.




7. MANNER OF EXERCISE




     (a) An optionee wishing to exercise an Option shall give written notice to the Company at its
principal executive office, to the attention of the officer of the Company designated by the
Administrator, accompanied by payment of the exercise price and withholding taxes as provided in
Sections 6.1.6 and 6.1.8. The date the Company receives written notice of an exercise hereunder
accompanied by payment of the exercise price will be considered as the date such Option was
exercised.



     (b) Promptly after receipt of written notice of exercise of an Option and the payments called
for by Section 7(a), the Company shall, without stock issue or transfer taxes to the optionee or
other person entitled to exercise the Option, deliver to the optionee or such other person a
certificate or certificates for the requisite number of shares of stock. An optionee or permitted
transferee of the Option shall not have any privileges as a stockholder with respect to any shares
of stock covered by the Option until the date of issuance (as evidenced by the appropriate entry on
the books of the Company or a duly authorized transfer agent) of such shares.



8. EMPLOYMENT OR CONSULTING RELATIONSHIP




     Nothing in this Plan or any Option granted hereunder shall interfere with or limit in any way
the right of the Company or of any of its Affiliates to terminate any optionee’s employment or
consulting at any time, nor confer upon any optionee any right to continue in the employ of, or
consult with, the Company or any of its Affiliates.



9. CONDITIONS UPON ISSUANCE OF SHARES




     Shares shall not be issued pursuant to the exercise of an Option unless the exercise of such
Option and the issuance and delivery of such shares pursuant thereto shall comply with all relevant
provisions of law, including, without limitation, the Securities Act of 1933, as amended (the
“Securities Act”)



10. NON-EXCLUSIVITY OF THE PLAN




     The adoption of the Plan shall not be construed as creating any limitations on the power of
the Company to adopt such other incentive arrangements as it may deem desirable, including, without
limitation, the granting of stock options other than under the Plan.



11. AMENDMENTS TO PLAN




     The Board may at any time amend, alter, suspend or discontinue this Plan. Without the consent
of an optionee, no amendment, alteration, suspension or discontinuance may adversely affect
outstanding Options except to conform this Plan and ISOs granted under this Plan to the
requirements of federal or other tax laws relating to incentive stock options. No amendment,
alteration, suspension or discontinuance shall require stockholder approval unless (a) stockholder
approval is required to preserve incentive stock option treatment for federal income tax purposes
or (b) the Board otherwise concludes that stockholder approval is advisable.



 









 





12. EFFECTIVE DATE OF PLAN; TERMINATION




     This Plan shall become effective upon adoption by the Board; provided, however, that no Option
shall be exercisable unless and until written consent of the stockholders of the Company, or
approval of stockholders of the Company voting at a validly called stockholders’ meeting, is
obtained within twelve months after adoption by the Board. If such stockholder approval is not
obtained within such time, Options granted hereunder shall be of the same force and effect as if
such approval was obtained except that all ISOs granted hereunder shall be treated as NQSOs.
Options may be granted and exercised under this Plan only after there has been compliance with all
applicable federal and state securities laws. This Plan shall terminate within ten years from the
date of its adoption by the Board.


As amended by the Board of Directors on January 13, 2006, subject to the Stockholders’ approval at
the 2006 Annual Meeting of Stockholders.