Document:

Online Processing, Inc. Exhibit 10.1

                                                                                                                                 

SHARE EXCHANGE AGREEMENT

This Share Exchange Agreement ("Agreement"), dated as of January ___, 2006, is made and entered into among Online Processing, Inc., a Nevada corporation (“Shell Corp.”), Diguang International Holdings Ltd. ("Operating Corp."), a British Virgin Islands corporation, the owners of record of all of the issued and outstanding stock of Operating Corp. are listed in Exhibit A (the “Shareholders”), and Terri Wonderly (the "Shell Indemnifying Shareholder"). 

RECITALS

A. The common stock of Shell Corp. is currently traded publicly on the Over the Counter Bulletin Board (OTCBB).  

B. In order to enable the Shell Corp., which will wholly-own the Operating Corp. thereafter, to qualify as a publicly listed company to be traded on the NASDAQ National Market in the U.S., the Shareholders have agreed to transfer to Shell Corp., and Shell Corp. has agreed to acquire from the Shareholders, 100% of the common stock of Operating Corp. and their related rights (the “Operating Corp. Stock”) in exchange for 18,250,000 common shares of Shell Corp. and their related rights (the “Shell Corp. Stock”), such that the Shareholders will become the absolute majority shareholders of the Shell Corp., pursuant to the terms and conditions set forth in this Agreement.  

C. As a result of the transaction contemplated by this Agreement (the “Share Exchange”), at the Closing of this Agreement (as defined in Section 2), Operating Corp. will become a wholly owned subsidiary of Shell Corp., and Shell Corp. will change its name to Diguang International Development Co. Limited (“Diguang International”).

Now, therefore, in consideration of the mutual representations, warranties, covenants and agreements contained in this Agreement, the parties agree as follows:

1. Exchange of Stock. 

(a) The Shareholders agree to transfer to Shell Corp., and Shell Corp. agrees to acquire from the Shareholders, all of the Shareholders' right, title and interest in the Operating Corp. Stock, free and clear of all mortgages, liens, pledges, security interests, restrictions, encumbrances or adverse claims of any nature.

(b) Simultaneously with the Closing, Shell Corp. will redomicile to the British Virgin Islands, the capital stock of Shell Corp. will have been reversed split on a 3 shares for 5 shares basis and Terri Wonderly will have agreed to cancel, and Shell Corp. will have cancelled, 4,967,940, shares (after giving effect to the 3 for 5 reverse split discussed herein) of common stock of Shell Corp., all in compliance with the laws of the State of Nevada and the British Virgin Islands, leaving a total of 1,943,000 shares outstanding.  Concurrent with the redomicile and the above duly authorized corporate actions, at the Closing, (i) simultaneously with the surrender by the Shareholders of the certificates or other instruments evidencing the Operating Corp. Stock, duly endorsed for transfer to Shell Corp., Shell Corp. will cause 18,250,000 shares of the Shell Corp. Stock (subject to adjustment for fractionalized shares as set forth in Exhibit A) to be issued to the Shareholders (or their designees) and to be delivered to the Shareholders, in full satisfaction of any right or interest which each Shareholder held in the Operating Corp. Stock, each in the amount and proportion set forth next to the Shareholders' respective names in Exhibit A; and (ii) Shell Corp. will issue another 2,400,000 shares of common stock for raising US$12,000,000 in gross proceeds.  All amounts of Shell Corp. stock to be issued to the Shareholders 

and other investors by Shell Corp. will occur after the 3 for 5 reverse split and cancellation of stock contemplated by this Agreement have been successfully completed.  The parties agree that the 3 for 5 reverse split may occur simultaneously and as a part of the redomicile to British Virgin Islands. A copy of the proposed Memorandum and Articles of Association of Shell Corp. in the British Virgin Islands is attached hereto as Schedule 1(b).   

2. Closing 

(a)The parties to this Agreement will hold a closing (the "Closing") for the purpose of executing and exchanging all of the documents contemplated by this Agreement and otherwise effecting the transactions contemplated by this Agreement.  The Closing will be held as soon as possible, and it is currently anticipated that it will occur on or before January 20, 2006, at the Law Offices of Louis E. Taubman, P.C., 225 Broadway, Suite 1200, New York, NY 10007, unless another place or time is mutually agreed upon in writing by the parties.  All proceedings to be taken and all documents to be executed and exchanged at the Closing will be taken, delivered and executed simultaneously, and no proceeding will be deemed taken, nor any documents deemed executed or delivered, until all have been taken, delivered and executed.  If agreed to by the parties, the Closing may take place through the exchange of documents by fax and/or express courier; provided, however, that any documents received by a party prior to the delivery of all documents required to complete the Closing will be held by the receiving party in trust for the benefit of the delivering party until all documents required to complete the Closing have been exchanged.  

(b) With the exception of any stock certificates that must be in their original form, the parties of this Agreement agree that any copy, fax, e-mail or other accurate reproduction of the writing or transmission required by this Agreement or any signature required thereon may be used in lieu of all the copies for the original writing or transmission or signature. The originals will be promptly delivered thereafter.

 3. Representations and Warranties of Shell Corp..

Shell Corp. represents and warrants as follows: 

(a) Shell Corp. is a corporation duly organized, validly existing, and in good standing under the laws of the State of Nevada in USA and is licensed or qualified in all states in which the nature of its business or the character or ownership of its properties makes such business licensing or qualification necessary.  Simultaneously with the Closing, Shell Corp. will redomicile in the British Virgin Islands.  

(b) The authorized capital stock of Shell Corp. consists of (i) 25,000,000 shares of common stock, US$0.001 par value per share, of which 1,943,000 of which will be issued and remain outstanding as of the Closing Date and prior to the stock exchange contemplated herein, following the completion of the 3 for 5 reverse split of the Shell Corp.’s stock contemplated by Section 7(g) and the cancellation of 4,967,940 shares immediately thereafter as contemplated by Section 7(h).  All issued and outstanding shares of Shell Corp.'s common stock are fully authorized, validly issued, fully paid and nonassessable.

(c) Except for the above-described shares of capital stock, there are no outstanding shares of capital stock or other securities or other equity interests of Shell Corp. or rights of any kind to acquire such stock, other securities or other equity interests, except for 2,400,000 shares of common stock to be issued for raising US$12,000,000 in gross proceeds in connection with, and simultaneously occurring at, the Closing, and 18,250,000 shares of common stock to be issued to the Shareholders at the Closing. No party has any rights to acquire any of the stock of Shell Corp., and there will be no such obligation outstanding at the Closing,except as set forth in Exhibit A. 

(d) Shell Corp. has no subsidiaries.

(e) Shell Corp. has the corporate power and authority to enter into this Agreement and to carry out the transactions contemplated herein.  Execution and delivery of this Agreement and performance by Shell Corp. hereunder (including issuance of the Shell Corp. Stock) have been duly authorized by all requisite corporate action on the part of Shell Corp., and this Agreement constitutes a valid and binding obligation of Shell Corp., and Shell Corp.’s performance hereunder will not violate any provision of any charter, bylaw, indenture, mortgage, lease, or agreement, or any order, judgment, decree, or any law or regulation, to which any property of Shell Corp. is subject or by which Shell Corp. is bound. 

(f) Shell Corp. has minimal assets and liabilities and its liabilities, actual, contingent or otherwise, as of the Closing, other than liabilities incurred in connection with the share exchange or the other activities and transactions contemplated in this Agreement, shall be less than US$30,000. 

(g) There is no litigation or proceeding pending or, to Shell Corp.’s knowledge, threatened, against or relating to Shell Corp., its properties or its business. 

(h) Shell Corp. is not a party to any material contract.  For purposes of Shell Corp. as discussed in this Agreement, “material” shall mean any contract, debt, liability, claim or other obligation valued or otherwise worth US$2,500 or more.

(i) Other than Terri Wonderly, acting as president and sole director, Shell Corp. has no officers, directors or employees.

(j) No current officer, director, affiliate or person known to Shell Corp. to be the record or beneficial owner in excess of 5% of Shell Corp.’s common stock or any person known to be an associate of any of the foregoing is a party adverse to Shell Corp., or has a material interest adverse to Shell Corp. in any material pending legal proceeding. 

(k) Shell Corp. has filed properly and timely all federal, state, and other tax returns of every nature required to be filed by it and has paid all taxes and all assessments, fees and charges which it is obligated to pay by federal, state or other taxing authority to the extent that such taxes, assessments, fees and charges have become due.  Shell Corp. has also paid all taxes which do not require the filing of returns and which are required to be paid by it. The tax liabilities that have accrued, but have not become payable have been adequately reflected as liabilities in the financial statements of Shell Corp.

(l) The audited financial statements provided to Operating Corp. are made in accordance with U.S. Generally Accepted Accounting Principles (US “GAAP”) and fairly present the financial condition of Shell Corp. in such statements dated as of June 30,  2005.  

(m) Shell Corp. has had the opportunity to perform all due diligence investigations of Operating Corp. and its business as Shell Corp. has deemed necessary or appropriate and to ask all questions of the officers and directors of Operating Corp. that Shell Corp. wished to ask, and Shell Corp. has received satisfactory answers to all of its questions regarding the Operating Corp.. Shell Corp. has had access to all documents and information about Operating Corp. and has reviewed sufficient information to allow it to make the satisfactory evaluation on the merits and risks of the transactions contemplated by this Agreement.

(n) Shell Corp. is acquiring the Operating Corp. Shares to be transferred to it under this Agreement for investment and not with a view to the sale or distribution thereof. There are no other agreements purporting to restrict the issuance or transfer of the Shell Corp.’s Shares nor any voting agreements, voting trusts or other arrangements restricting or affecting the voting of the Shell Corp. Shares.  The Shell Corp. Shares to be issued to the Shareholders will be duly authorized and validly issued, fully paid 

and non-assessable by the Shell Corp., and the issuing procedures shall be in full compliance with all US federal, and state laws and SEC rules and regulations and the laws of the British Virgin Islands.

(o) Since June 30, 2005, Shell Corp. has not  experienced or suffered any Material Adverse Effect.

(p) Shell Corp. has not incurred any liabilities, obligations, claims or losses as of the date of this Agreement (whether liquidated or unliquidated, secured or unsecured, absolute, accrued, contingent or otherwise) other than those incurred in the ordinary course of Shell Corp.’s business or which, individually or in the aggregate, are not reasonably likely to have a Material Adverse Effect.

(q) As of the date of this Agreement, no event or circumstance has occurred or to the knowledge of Shell Corp. exists with respect to Shell Corp. or its business, properties, operations or financial condition, which has not been disclosed to Operating Corp. in writing or has not otherwise been disclosed in Shell Corp.’s public filings made with the SEC.

(r) Shell Corp. has good and valid title to all of its real and personal property reflected in the Financial Statements, free and clear of any mortgages, pledges, charges, liens, security interests or other encumbrances, except to the extent that any such mortgages, pledges, charges, liens, security interests or other encumbrances would not, individually or in the aggregate, cause a Material Adverse Effect. All said leases of Shell Corp. are valid and subsisting and in full force and effect.

(s) The business of Shell Corp. has been and is presently being conducted in accordance with all applicable US federal, state and local governmental laws, rules, regulations and ordinances.  Shell Corp. has all franchises, permits, licenses, consents and the regulatory authorizations and approvals required by government necessary for the conduct of its business as now being conducted by it, except to the extent the failure to possess such franchises, permits, licenses, consents and the regulatory authorizations and approvals would not, in the individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 (t) Except as set forth on Schedule 3(t) hereto, Shell Corp. has not employed any broker or finder or incurred any liability for any brokerage or investment banking fees, commissions, finders' structuring fees, financial advisory fees or other similar fees in connection with this Agreement.

(u) Neither this Agreement nor the Schedules hereto nor any other documents, certificates or instruments furnished to Operating Corp. by or on behalf of Shell Corp. in connection with the transactions contemplated by this Agreement contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made herein or therein, in the light of the circumstances under which they were made herein or therein, not misleading.

(v) Shell Corp. owns or possesses the rights to all patents, trademarks, domain names (whether or not registered) and any patentable improvements or copyrightable derivative works thereof, websites and intellectual property rights relating thereto, service marks, trade names, copyrights, licenses and authorizations which are necessary for the conduct of its business as now conducted without any conflict with the rights of others.

(w) Shell Corp. has obtained all material approvals, authorization, certificates, consents, licenses, orders and permits or other similar authorizations of all governmental authorities, or from any other person, that are required under any Environmental Laws issued from US Federal and State government.  “Environmental Laws” shall mean all applicable laws relating to the protection of the environment including (but not limited to) all requirements pertaining to reporting, licensing, permitting, controlling, investigating or remediating emissions, discharges, releases or threatened releases of hazardous substances, chemical substances, pollutants, contaminants or toxic substances, materials or wastes, 

whether solid, liquid or gaseous in nature, into the air, surface water, groundwater or land, or relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of hazardous substances, chemical substances, pollutants, contaminants or toxic substances, material or wastes, whether solid, liquid or gaseous in nature.  To the best of Shell Corp.’s knowledge, Shell Corp. has all necessary governmental approvals required under all Environmental Laws as necessary for Shell Corp.’s business.  To the best of Shell Corp.’s knowledge, Shell Corp. is also in compliance with all other limitations, restrictions, conditions, standards, requirements, schedules and timetables required or imposed under all Environmental Laws.  Except for such instances as would not individually or in the aggregate have a Material Adverse Effect, there are no past or present events, conditions, circumstances, incidents, actions or omissions relating to or in any way affecting Shell Corp. that violate or may violate any Environmental Law after the Closing Date or otherwise form the basis of any claim, action, demand, suit, proceeding, hearing, study or investigation.

  

 (x) There are no loans, leases, agreements, contracts, royalty agreements, management contracts or arrangements or other continuing transactions between (a) Shell Corp., or any of its customers or suppliers and (b) any officer, employee, consultant or director of Shell Corp., or any person owning at least 5% of the outstanding capital stock of Shell Corp. or any member of the immediate family of such officer, employee, consultant, director or stockholder or any corporation or other entity controlled by such officer, employee, consultant, director or stockholder, or a member of the immediate family of such officer, employee, consultant, director or stockholder,which, in each case, has not been disclosed in writing to Operating Corp.

(y) Shell Corp. has not been the subject of any enforcement or other actions which have questioned its compliance with applicable rules (including without limitation US Securities and Exchange Commission (" SEC")  rules and regulations) and the trading rules (OTCBB) since the inception of its trading on OTCBB in USA.  To the best of Shell Corp.’s knowledge, its shares are eligible for trading publicly on OTCBB as of the date of this agreement. Shell Corp. has received no notice that its common stock is not eligible for quotation and is unaware of any legal encumbrance and contrived encumbrance to suspend, stop or terminate the trading in its shares which could negatively affect its application for being transferred to the Nasdaq National Market in USA, provided all substantive listing criteria are otherwise also met by Operating Corp.’s business.

(z)    Shell Corp. is a voluntary filer under Section 15 of the Securities Exchange Act of 1934, as amended (the "Exchange Act").  Shell Corp. files reports with the SEC pursuant to Section 15(d) of the Exchange Act.  During the periods which its stock has been publicly traded on OTCBB, Shell Corp. has duly submitted all documents and filings, which are required by the Nasdaq and/or the SEC in accordance with applicable securities laws, rules and regulations (including without limitation, Section 13(a) or 15(d) of the Exchange Act, the applicable rules and regulations of the SEC promulgated thereunder and the listing requirements of the OTCBB).

(aa)   Shell Corp. has filed all reports, schedules, forms and statements required to be filed by it with the SEC pursuant to the reporting requirements of the Exchange Act (the "SEC Documents").  As of their respective dates, none of the SEC Documents contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.  The financial statements of Shell Corp. included in the SEC Documents were prepared in accordance with US GAAP, consistently applied, during the periods involved (except (i) as may be otherwise indicated in such financial statements or the notes thereto, or (ii) in the case of unaudited interim statements, to the extent they may not include footnotes or may be condensed or summary statements) and fairly present in all material respects the consolidated financial position of Shell Corp. and its consolidated subsidiaries and results of their operations and cash flows for the periods covered thereby (subject, in the case of unaudited statements, to normal year-end audit adjustments).

(bb) For the purposes of this Agreement, "Material Adverse Effect" means any adverse effect on the business, operations, properties, prospects, or financial condition of the Shell Corp. on any condition, circumstance, or situation that could result in litigation, claims, disputes or property loss in excess of US$30,000 in the future, and that would prohibit or otherwise materially interfere with the ability of any party to this Agreement to perform any of its obligations under this Agreement in any material respect. 

(cc)

Indemnity by Shell Indemnifying Shareholder

For a period of six months following the Closing, the Shell Indemnifying Shareholder will indemnify and hold harmless the Shareholders, Operating Corp., and each of its officers, directors and employees, (the "Shareholder Indemnified Parties"), from any loss, damage, liability, or expense (including, without limitation, expenses of investigation and reasonable attorneys' fees and expenses in connection with any action, suit or proceeding against any thereof) incurred or suffered by the Shareholder Indemnified Parties, and arising out of or resulting from (i) a breach of the representations and warranties of Shell Corp. provided in Section 3 hereto, or (ii) any liability, contingent or otherwise, of Shell Corp. before the Closing Date not otherwise disclosed herein or in the Shell Corp.’s filings made pursuant to the Securities Exchange Act of 1934 (the “SEC Filings”), except to the extent that such breach or liability does not result in a Material Adverse Effect (as defined in paragraph 3(bb)). Notwithstanding anything provided for herein, the Shell Indemnifying Shareholder’s total obligation under this Section 3(cc) shall be limited to and shall not under any circumstances exceed US $700,000.  

4. Representations and Warranties of Operating Corp.

Operating Corp. represents and warrants as follows:

(a) Operating Corp. is a corporation duly incorporated, validly existing and in good standing under the laws of the British Virgin Islands and has the requisite corporate power to own, lease and operate its properties and assets and to conduct its business as it is now being conducted.  Operating Corp. does not have any Subsidiaries or own securities of any kind in any other entity except as set forth on Schedule 4(h) hereto.  Operating Corp. and each of its Subsidiaries are non-American corporations and are duly qualified in their respective countries to do business in permissible areas and are in good standing, except for any jurisdiction (alone or in the aggregate) in which the failure to be so qualified will not have a Material Adverse Effect. 

(b) There is no litigation or proceeding pending, or to the Operating Corp.’s knowledge, threatened, against or relating to Operating Corp., its Subsidiaries or to the Operating Corp. Shares or to the shares of each of the Subsidiaries. 

(c) The authorized capital stock of Operating Corp. consists of 50,000,000 shares of common stock, US$0.01 par value per share, 12,803,339 shares issued and outstanding as of the date of this Agreement  To the knowledge of Operating Corp., all of its issued and outstanding shares of common stock are fully paid and nonassessable. 

(d) There are no outstanding obligations of Operating Corp. or its Subsidiaries to repurchase, redeem or otherwise acquire any of their respective shares, and no party has the right to acquire any shares of Operating Corp, except for the shareholders identified in Exhibit A, and only to the extent set forth in Exhibit A.  Except as set forth in this Agreement, the representations set forth herein will be true at the time of the Closing as well.

(e) Execution of this Agreement and performance by Operating Corp. hereunder has been duly 

authorized by all requisite corporate action on the part of Operating Corp., and this Agreement constitutes a valid and binding obligation of Operating Corp., and Operating Corp.’s performance hereunder will not violate any provision of any charter, bylaw, indenture, mortgage, lease, or agreement, or any order, judgment, decree. Operating Corp. does not violate any law or regulation, by which Operating Corp. is bound. 

(f) To the best of Operating Corp.’s knowledge, there is no taxation in the BVI. Operating Corp. has completed all the tax liabilities in its country and all its subsidiaries have paid all taxes that are required to be paid. The tax liabilities that have accrued but not become payable have been reflected in the financial report provided to Shell Corp. 

(g) Operating Corp.'s audited financial statements for the years ended December 31, 2002 through 2004 and  its unaudited financial statements for the period ended June  30, 2005, have been delivered to Shell Corp., are made in accordance with U.S. Generally Accepted Accounting Principles (US “GAAP”) and fairly present the financial condition of Operating Corp. as of the date of such statements. 

(h) The basic information of each Subsidiary of Operating Corp. is hereto set forth in Schedule 4(h), in which the place of its incorporation and the authorized capitalization are indicated, together with the amount of the issued and outstanding shares or paid-up capital and the ownership percentage of each of the shareholders.  For the purposes of this Agreement, "Subsidiary" shall mean any corporation or other entity of which at least a majority of the securities or other ownership interest having ordinary voting power (absolutely or contingently) for the election of directors or other persons performing similar functions are at the time owned directly or indirectly by Operating Corp. and/or any of its other Subsidiaries.  All of the outstanding shares of capital stock and paid-up capital of each Subsidiary have been duly authorized and legally validated and are fully paid and nonassessable.  There are no outstanding preemptive, conversion or other rights, options, warrants or agreements granted or issued by or binding upon any Subsidiary for the purchase or acquisition of any shares of capital stock of any Subsidiary or any other securities convertible into, exchangeable for or evidencing the rights to subscribe for any shares of such capital stock.  Neither Operating Corp. nor any Subsidiary is subject to any obligation (contingent or otherwise) to repurchase or otherwise acquire or retire any shares of the capital stock of any Subsidiary or any convertible securities, rights, warrants or options of the type described in the preceding sentence except as set forth on Schedule 4 (h) hereto.  Neither Operating Corp. nor any Subsidiary is party to any agreement, which restricts the voting, or transfer of any shares of the capital stock of any Subsidiary. 

(i) Since June 30, 2005, Operating Corp. has not experienced or suffered any Material Adverse Effect. 

(j) Except as indicated in the financial statements and those incurred in the ordinary business hereto, neither Operating Corp. nor any of its Subsidiaries has incurred any external liabilities, obligations, claims or losses (whether liquidated or unliquidated, secured or unsecured, absolute, accrued, contingent or otherwise) which, individually or in the aggregate, are not reasonably likely to have a Material Adverse Effect. 

 (k)  Starting from June  30, 2005 and ending on the date of the execution of this Agreement, no material event exists with respect to Operating Corp. or its Subsidiaries or their respective businesses, properties, operations or financial condition, which has not been disclosed to in writing as of the date of this Agreement. 

(l) Schedule 4(l) hereto sets forth as of the date of the signature hereof all secured and unsecured external Indebtedness of Operating Corp. or any Subsidiary, or for which Operating Corp. or any Subsidiary has commitments.  For the purposes of this Agreement, “Indebtedness” shall mean (a) any liabilities for borrowed money or amounts owed in excess of US$250,000  (other than trade accounts 

payable incurred in the ordinary course of business), (b) all guaranties, endorsements and other contingent obligations in respect of Indebtedness of others, whether or not the same are or should be reflected in Operating Corp.’s balance sheet (or the notes thereto), except guaranties by endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of business; ­­and (c) the present value of any lease payments in excess of US$100,000 due under leases possibly required to be capitalized in accordance with US GAAP.

(m) Each of Operating Corp. and the Subsidiaries has the right to use all of its real property and the personal property reflected in the Financial Statements, free and clear of any mortgages, pledges, charges, liens, security interests or other encumbrances, except to the extent that such mortgages, pledges, charges, liens, security interests or other encumbrances, individually or in the aggregate, do not cause a Material Adverse Effect.  All said leases of Operating Corp. and each of its Subsidiaries are valid and subsisting and in full force and effect.    

(n) The business of Operating Corp. and the Subsidiaries has been and is presently being conducted in accordance with all applicable governmental laws, rules, regulations and ordinances. Operating Corp. and each of its Subsidiaries have all permits, licenses, consents and the authorizations and approvals in its country required in the governmental regulations necessary for the conduct of its business as now being conducted by it.

(o) Except as set forth on Schedule 4(o) or in the Financial Statements, Operating Corp. has not employed any broker or finder or incurred any liability for any brokerage or investment banking fees, commissions, finders' structuring fees, financial advisory fees or other similar fees in connection with this Agreement. 

(p) To the best of Operating Corp.’s knowledge, neither this Agreement, the Schedules hereto nor any other documents, certificates or instruments furnished to Shell Corp. by or on behalf of Operating Corp. or any Subsidiary in connection with the transactions contemplated by this Agreement contains any untrue statement of a material fact or omits to state a material fact necessary in order to make the statements made herein or therein, in the light of the circumstances under which they were made herein or therein, not misleading. 

(q) Operating Corp. and each of the Subsidiaries have the rights to the relevant patents free of charge that are being assigned by Mr. Song Yi and the trade mark (under the name of Diguang Engine) as well as own websites and domain names (whether or not registered), which are necessary for the conduct of its business as now conducted without any conflict with the rights of others. 

(r) Operating Corp. and each of its Subsidiaries are in material compliance with the Chinese environmental requirements in the operation of their respective business, except to the extent that any non compliance, individually or in the aggregate, do not cause a Material Adverse Effect.  .

(s) Except as incurred or entered into in the ordinary course of business of Operating Corp. and its Subsidiaries, there are no loans, royalty agreements, management contracts or arrangements or other continuing transactions between (a) Operating Corp., any Subsidiary and any of their external customers or suppliers or (b) any officer, employee, consultant or director of Operating Corp., or any of its Subsidiaries, or any person owning at least 5% of the outstanding capital stock of Operating Corp. or any Subsidiary or any member of the immediate family of such officer, employee, consultant, director or stockholder or any corporation or other entity controlled by such officer, employee, consultant, director or stockholder, or a member of the immediate family of such officer, employee, consultant, director or stockholder which, in each case, has not been disclosed in writing to Shell Corp. 

(t) Neither Operating Corp. nor any Subsidiary has any collective bargaining arrangements or 

agreements covering any of its employees, except as set forth on Schedule 4(t) hereto. 

(u) There are no agreements purporting to restrict the transfer of the Operating Corp. Shares, nor any other voting agreements, voting trusts or other arrangements restricting or affecting the voting of the Operating Corp. Shares.  The Operating Corp. Shares held by the Shareholders are duly and validly issued, fully paid and non-assessable, and the issuing procedures are in full compliance with all BVI governmental laws, rules and regulations.

(v) Operating Corp. has had the opportunity to perform all due diligence investigations of Shell Corp. and its business that they have deemed necessary or appropriate. Operating Corp. has had access to the documents and information about Shell Corp. and has reviewed sufficient information to allow it to evaluate the merits and risks with Shell Corp. for completing this Agreement. 

(w) No current officer, director, affiliate or person known to Operating Corp. to be the record or beneficial owner in excess of 5% of Operating Corp.’s common stock, or any person known to be an associate of any of the foregoing is a party adverse to Operating Corp. or has a material interest adverse to Operating Corp. in any material pending legal proceeding.

(x) For the purposes of “Operating Corp.” of this Agreement, "Material Adverse Effect" means any adverse effect on the business, operations, properties, prospects, or financial condition of either Operating Corp. or its Subsidiaries (if any) and/or on any condition, circumstance, or situation that could result in litigation, claims, disputes or property loss in excess of US$500,000 in the future, and that would prohibit or otherwise materially interfere with the ability of any other party to this Agreement to perform any of its obligations under this Agreement in any material respect.

5. Representations and Warranties of the Shareholders 

The Shareholders represent and warrant as follows:

(a) The Shareholders have full right, power and authority to sell, transfer and deliver the Operating Corp. Shares, and simultaneously with delivery of the certificates thereof as contemplated in this Agreement, the Shareholders will transfer to Shell Corp. valid and marketable title to the Operating Corp. Shares, including all voting and other rights to the Operating Corp. Shares free and clear of all pledges, liens, security interests, adverse claims, options, rights of any third party, or other encumbrances. Each of the Shareholders owns and holds that number and percentage of Operating Corp. Shares listed next to their names on Exhibit A, which represent 100% of the issued and outstanding capital stock of Operating Corp.

(b) The communication address of the Shareholders is as listed on Exhibit A, attached hereto.

(c) The Shareholders are acquiring the Shell Corp. Stock for investment and not with a view to the distribution thereof. Therefore, the Shareholders will not sell or otherwise dispose of the Shell Corp. Stock without registration under the Securities Act of 1933, as amended, or an exemption therefrom, and the Shareholders understand that the certificate or certificates representing the Shell Corp. Stock will contain a legend to the foregoing effect.

(d) Shareholders who are not U.S. Persons (as defined in Rule 902 (k) of the Securities Act) understand that the shares of Shell Corp. Stock being exchanged for their shares of Operating Corp. Stock have not been registered under the United States Securities Act of 1933, as amended.  Shell Corp. is offering the Shell Corp. Stock  in a transaction exempt from the registration requirements of the Securities Act pursuant to Regulation S promulgated under it.  All the shares of Shell Corp. will not be offered or sold in 

the United States unless registered under the Securities Act or an exemption from registration is available. Further, hedging transactions with regard to the shares may not be conducted unless in compliance with the Securities Act.  

(e) The Shareholders of Operating  Corp. have complied in all material respects with the “Circular of State Administration of Foreign Exchange on Relevant Issues concerning Foreign Exchange Administration of Financing and Inbound Investment through Offshore Special Purpose Companies by PRC Residents” promulgated by the State Administration of Exchange on October 21, 2005 (the “Circular”).  

6. Conduct Prior to the Closing

Shell Corp. and Operating Corp. covenant that between the dates of this Agreement and the Closing as to each of them:

(a) Other than as contemplated in this Agreement, no change will be made in the charter documents, by-laws, or other corporate documents of Shell Corp. or Operating Corp.

(b) Shell Corp., and Operating Corp. will each make its best efforts to maintain and preserve Shell Corp. and Operating Corp.’s business organization, employee relationships, and goodwill intact, and will not enter into any material commitment except in the ordinary course of business. 

 (c) In accordance with “Agreement for Sale of Stock” to be signed with Sino Olympics Industrial Limited, JLF Asset Management, LLC will acquire 876,941 shares of Operating Corp. to be transferred by Sino Olympics Industrial Limited for an aggregate amount of US$5,000,000 out of the issued and outstanding 12,803,339 shares of common stock of Operating Corp. immediately prior to the Closing. Thereafter, JLF Asset Management, LLC will convert the 876,941 shares of Operating Corp. Stock into 1,250,000 shares of Shell Corp. common stock that it will receive at the Closing.

(e) Except for the shares listed in Exhibit A, none of the Shareholders will sell, transfer, assign, hypothecate, lien, or otherwise dispose or encumber the Operating Corp. Shares owned by them.

7. Conditions to Obligations of Operating Corp.

Shell Corp. must fulfill each of the following clauses in this Agreement on or before the Closing, unless waived in writing by the Shareholders of Operating Corp.:

(a) The representations and warranties of Shell Corp. set forth herein will be true and correct as of the Closing. 

(b) Shell Corp. will have performed all covenants required by this Agreement to be performed by it on or before the Closing.

(c) This Agreement will have been approved by the shareholders, if necessary, and the Board of Directors of Shell Corp. pursuant to properly constituted meetings or by written consent if permitted under applicable corporate law. 

(d) Shell Corp. will have delivered to the Shareholders and Operating Corp. the following documents in form and substance reasonably satisfactory to counsel to the Shareholders, to the requirements that:

(i) Shell Corp. is a corporation duly organized, validly existing, and in good standing in the British 

Virgin Islands after its redomicile from Nevada and is legally qualified to take the necessary corporate  action to carry out this Agreement.  

(ii) Both Shell Corp.'s authorized capital stock and the issued and outstanding shares before and after the Closing are set forth in Schedule 7(d), and supported by the relevant certificate of incorporation and a statement for the issued and outstanding shares from the transfer agent regarding the issued and outstanding shares.  

(iii)  The board of directors and shareholders (if required) of Shell Corp. have authorized the execution, delivery and performance of this Agreement and the related transactions.   

(iv) Any further document as may be reasonably requested by counsel to the Shareholders and Operating Corp. in order to substantiate any of the representations or warranties of Shell Corp. set forth herein.  

(v) An indemnification agreement by and among Chardan Capital LLC, the Placement Agents and the Shareholders, in form and substance satisfactory to Operating Corp. and the Shareholders. 

(e) The business and operations of Shell Corp. will have suffered no Material Adverse Effect.

(f) Shell Corp. will provide audited financial statements in accordance with U.S. GAAP ending December 31, 2002, December 31, 2003 and December 31, 2004; and, unaudited financial statements ending June 30, 2005. 

(g)

Shell Corp. will have completed a 3 for 5 reverse split of its issued and outstanding Common Stock or will have recapitalized itself upon conversion to a British Virgin Islands corporation with the same effect.

(h)

Terri Wonderly will have consented to cancel 4,967,940 (following completion of the reverse split pursuant to Section 7(g)) shares of Shell Corp.’s common stock, and Shell Corp. will have taken action to cancel such shares at the Closing of the transactions contemplated by this Agreement.

(i)

 Shell Corp. will have delivered a legal opinion from Nevada and BVI lawyers in form and substance to the satisfaction of counsel to Operating Corp. to the effect that the redomicile to the British Virgin Islands has been completed, that the above reverse stock split and cancellation have been completed and as to other matters such as due authorization and validity. 

(j)

 Before the execution of this Agreement, JLF Asset Management, LLC or its designee will have remitted US$5,000,000 for the purpose of acquiring 876,941 shares of common stock of Operating Corp., which will be converted to 1,250,000 shares of common stock (the “JLF Shares”) of Shell Corp. out of 18,250,000 shares of Shell Corp. stock to be issued to the shareholders in the Operating Corp. as of the Closing.

 

(k) The Placement Agents will have raised at least US$12,000,000, of gross proceeds, for which the relevant parties will have entered into binding agreements, to acquire 2,400,000 shares of Shell Corp. Stock, the closing of which financing will be held simultaneously with the Closing of this Agreement. 

(l) Shell Corp.'s common stock shall be currently quoted for trading on the OTCBB and Shell Corp. shall have received no notice that its common shares are not eligible for quotation.

(m) Shell Corp. shall indemnify and hold harmless the Shareholder Indemnified Parties from any loss, 

damage, liability, or expense (including, without limitation, expenses of investigation and reasonable attorneys' fees and expenses in connection with any action, suit or proceeding against any thereof) incurred or suffered by the Shareholder Indemnified Parties, and arising out of or resulting from a breach of the representations and warranties of Shell Corp. provided in Section 3 hereto.

8. Conditions to Obligations of the Shell Corp.

The Operating Corp. must fulfill each of the following clauses in this Agreement on or before the Closing, unless waived in writing by the Shell Corp.:

(a) The representations and warranties of Operating Corp. set forth herein will be true and correct at the Closing.

(b) The Shareholders and Operating Corp. will have performed all covenants required in this Agreement on or before the Closing.

(c) This Agreement will have been approved by the Board of Directors of Operating Corp.  

(d) Operating Corp. will have delivered to the Shell Corp. the following documents  in form and substance reasonably satisfactory to counsel to  the Shell Corp., to the requirements that:

(i) Operating Corp. is a corporation duly organized, validly existing, and in good standing and is legally qualified to take the necessary corporate action to carry out the share exchange agreement.

(ii) Operating Corp.'s authorized capital stock and the issued and outstanding shares are set forth Schedule 8 (d) ;    

(iii)The resolutions of the board of directors and, if necessary, the Shareholders of Operating Corp. to execute this Agreement; 

(iv) Any further document as may be reasonably requested by counsel to Shell Corp. in order to substantiate any of the representations or warranties of Operating Corp. set forth herein.  

(e) The business and operations of Operating Corp. will have suffered no Material Adverse Effect.

(f) Operating Corp. will have provided audited financial statements in accordance with U.S. GAAP, on a consolidated basis, for its Subsidiaries ending December 31, 2002, December 31, 2003 and December 31, 2004; and, unaudited financial statements ending June 30, 2005. 

(g) Prior to the Closing under this Agreement, JLF Asset Management, LLC will have remitted US$5,000,000, which is required for acquiring 876,941 shares of Operating Corp. for exchange into 1,250,000 shares of common stock of Shell  Corp. out of 18,250,000 shares of Shell Corp. stock  to be issued to the Shareholders in Shell Corp. .

(h) The Placement Agents will have raised  at least $12,000,000, of gross proceeds, for which the relevant parties will have  entered  into binding agreements, to acquire 2,400,000 shares of Shell Corp. Stock, the closing of which financing will beheld simultaneously  with the Closing of this Agreement. 

9. Additional Covenants. 

(a) Between the dates of this Agreement and the Closing, both Operating Corp. and Shell Corp. will urge 

their respective representatives to (i) afford the respective representatives access to the other personnel, properties, contracts, books and records, and other documents and data, as reasonably requested by the other party; (ii) furnish the other parties and their representatives with copies of all such contracts, books and records, and other existing documents and data as they may reasonably request in connection with the transaction contemplated by this Agreement; and (iii) furnish the other parties and their representatives with such additional financial, operating, and other data and information as they may reasonably request.  Operating Corp. will provide to Shell Corp. and Shell Corp. will provide to Operating Corp., complete copies of all material contracts and other relevant information on a timely basis in order to keep the other parties fully informed of the status of their respective businesses and operations.

 

(b) Shell Corp. will deliver all copies of its corporate books, records and all property to Operating Corp. at the Closing. of this Agreement.

(c) Except as required  by law, the parties to this Agreement agree that they will not make any public announcements relating to this Agreement or the transactions contemplated herein or disclose same to any irrelevant third party  without the prior written consent of the other parties. The parties will cooperate in the drafting of a press release and Current Report on Form 8-K to be filed by Shell Corp. with the SEC immediately following the Closing.  Nothing in this paragraph shall be construed to prevent Shell Corp. from fulfilling its legal responsibilities to make timely disclosure regarding this Agreement and the transactions contemplated hereby as required by U.S. securities laws.

(d) Terri Wonderly will resign her position as president and director of Shell Corp. and the board of directors of Shell Corp., following the completion of the transactions of this Agreement, will consist of 5 members, 4 of them to be appointed by the Shareholders and 1 by Chardan Capital, LLC (the “Non-Diguang Member”).  The initial term of each director shall be for a period of 18 months.  At least three of the directors will qualify as “independent” under Nasdaq criteria, and at least one will qualify as a financial expert.    

(e)

Shell corp. will have completed its redomicile from Nevada to the British Virgin Islands.

(f)

Following the consummation of the Share Exchange, the new board of directors of Shell Corp. may establish a stock option plan (the “Plan”) for the senior officers of the company.  The Plan may reserve up to 1,500,000 shares of the Company’s common stock, and vesting of granted options shall occur over a period of not less than 3.5 years from the date of an option grant.  No options may be issued under it prior to 18 months following the consummation of the Share Exchange without the consent of the non-Diguang Member of the board of directors.  

(g) In addition to the shares to be issued to the Shareholders under Exhibit A, the parties agree that the Shell Corp. will also issue up to 6,000,000 additional shares (the “Incentive Shares”) for the managing officers of Operating Corp. out of the Company’s common stock in the amounts and to the parties listed on Exhibit 9(g), if the Operating Corp. achieves the yearly financial performance targets set forth on Exhibit 9(g) for the years 2006 through 2009.  If the financial performance target(s) for any year are met, all of the Incentive Shares for that year will be issued.  If the financial performance target(s) for any year are not met, none of the Incentive Shares for that year will be issued. The determination as to whether the financial performance target(s) has (have) been met and the Incentive Shares are issuable shall depend on the financial statements of Shell Corp. audited in accordance with U.S. GAAP as presented in  its SEC filings.  The Incentive Shares to be issued, if any, will be issued at the same time with such filing.  The Incentive Shares will not be registered.  

(h) The Shareholders agree that for a period of 18 months from the date of the Closing they will not 

register for public sale in the United States or any other jurisdiction the shares of Shell Corp. Stock that they will receive as a result of this Agreement.  This prohibition will apply to any transferees of the shares described in this Section 9(h), unless such transferees received the shares pursuant to a sale in the market made in compliance with Rule 144 of the Securities Act. 

(i) Within 90 days of the Closing, Shell Corp. will file a registration statement on Form F-1 (or such other form as available) for the public resale of the JLF Shares.  Shell Corp. agrees to use its best efforts to have this registration statement declared effective within 180
days of filing or 5
days of the date that it is informed by the SEC staff that (i) the SEC will not review the
registration statement or (ii) Shell Corp. may request the acceleration of the effectiveness of the registration statement and Shell Corp. makes such request
.. 

10. Termination. 

This Agreement may be terminated upon the following occurrence: (1) by mutual consent of the parties in writing; (2) by either Operating Corp. or Shell Corp. if there has been a material misrepresentation or material breach of any warranty or covenant by any party that is not cured by the breaching party within 15 days following notice of such breach or such later date as agreed by the parties; or (3) by either the Shell Corp. or the Shareholders or Operating Corp. if the Closing does not occur by or before February 28, 2006. Following any such termination, Operating Corp. and the Shareholders on the one hand and Shell Corp. and Shell Indemnifying Shareholder on the other hand shall be free to negotiate with other reverse merger candidates and/or conduct other fund raising as it/they deem appropriate and all parties hereby acknowledge and agree that they have no claims against the other parties for such activities.  

11.  Expenses

If this transaction does not close or is terminated, each party to this Agreement will pay its respective costs and expenses in connection with the negotiation, preparation and the Closing of this Agreement.

12. Survival of Representations and Warranties. 

The representations and warranties of the Shareholders, Operating Corp. and Shell Corp. etc. set out in this Agreement shall survive the consummation of the transactions contemplated herein and remain in full force and effect  for a period of 36 months after the Closing. 

13. Waiver. 

If one party fails to comply with any of the obligations, agreements or conditions, then, the other parties who comply with the same may waive in writing the failure caused by the non-complying party(ies).  A waiver of any one provision by any party hereto shall not be deemed to be a continuing waiver of any such provision nor shall it constitute a waiver of any other provision not explicitly waived, and all other provisions herein shall continue in full force and effect notwithstanding any such waiver.

14.  Brokers. 

The parties agree to indemnify and hold harmless the other parties against any fee, loss, or expense arising out of claims by brokers or finders employed or alleged to have been employed by the indemnifying party,  which has not otherwise been disclosed in this Agreement or the schedules hereto.  

15. Notices. 

All notices and other communications under this Agreement must be in writing and will be deemed to have been given if delivered in person or sent by prepaid first-class certified mail, return receipt requested, or recognized commercial courier service, as follows:

If to Shell Corp. or the Shell Indemnifying Shareholder, to:

Online Processing Inc. 

750 East Interstate 30, Suite 100,

Rockwell, Texas 75087

Attn: : Terri Wonderly

With a copy, which shall not constitute notice to:

Law Offices of Louis E. Taubman, P.C. 

225 Broadway, Suite 1200

New York, New York 10007

Attn: Louis E. Taubman, Esq.

If to Operating Corp. to:

Diguang International Holdings, Ltd.

8F/64 Bldg, Jinlong Industry District Majialong

Nanshan District Shenzhen, P.R.China

Post Code: 518052

Attn:  Jack Song/Wang Hua

If to a Shareholder, to the above address of Operating Corp.

16. General Provisions. 

(a) This Agreement will be governed by and under the laws of the State of New York, USA without giving effect to conflicts of law principles.  If any provision hereof is found invalid or unenforceable, that part will be amended to achieve as nearly as possible the same effect as the original provision and the remainder of this Agreement will remain in full force and effect. 

(b) Any dispute arising under or in any way related to this Agreement will be, in principle, settled through the consultation to be made by the parties. If the agreement cannot be reached through the consultation, the dispute will be submitted to binding arbitration with the American Arbitration Association, in accordance with its rules then in effect.  All the parties agree that the arbitration will proceed in San Francisco. The arbitration award will be binding on all the parties and shall be enforceable in any court of competent jurisdiction. 

(c) This Agreement constitutes the entire agreement and final understanding of the parties and 

supersedes and terminates all prior and/or contemporaneous understandings and/or discussions between the parties whether written or verbal, express or implied, relating in any way to the subject matter hereof.  This Agreement may not be altered, amended, modified or otherwise changed in any way except by a written agreement, signed by all parties. 

(d) This Agreement will inure to the benefit of, and be binding upon, the parties hereto and their successors and assigns. 

(e) The parties agree to take any further actions and to execute any further documents, which are necessary or appropriate to carry out the purposes of this Agreement.  

(f) The headings of the paragraphs of this Agreement are solely for convenience of reference and will not limit or otherwise affect the meaning of any of the terms or provisions of this Agreement. 

(g) This Agreement may be executed in counterparts, each one of which will constitute an original and all of which taken together will constitute one document. This Agreement may be executed by delivery of a signed signature page by fax to the other parties hereto and such fax execution and delivery will be valid in all respects. This Agreement is signed as of January ___ 2006. This Agreement will come into full force and effect following:(i)deposit of US$5,000,000 into the account designated by the shareholders of Sino Olympics Industrial Ltd. and (ii) infusion of the net proceeds of the US$12,000,000 into the account of Operating Corp. from the aforesaid relevant investors.

The account Numbers are as follows: 

   1) For Inward Payment

Beneficiary Bank Name:                   

    Beneficiary Bank Address:               

Beneficiary Account Name:              

Beneficiary Account Number:          

Swift Code:                                      

Bank Code:                                         

2) For Inward Payment

Correspondent of Beneficiary's bank: 

Swift Code: 

Beneficiary Bank Name:                  

Beneficiary Bank Address:              

Beneficiary Account Name:             

Beneficiary Account Number:         

Swift Code(Hong Kong):                 

(h)

Although the original of this Agreement (the “Original”) is drafted in the English and Chinese  languages, the Parties hereto agree that any disputes regarding the terms and conditions of this Agreement shall be resolved according to the terms of the English language version of the Original. The parties have participated jointly, through the use of the English language, in the negotiation and drafting of this Agreement.  In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if it was drafted jointly by the parties in the English language together with reference in the Chinese versions and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Agreement.

SIGNATURE PAGE FOLLOWS: 

EXECUTED: 

Online Processing, Inc. 

By:________________________________

Terri Wonderly,

    President

Diguang International Holdings, Ltd

By________________________________

     

        SONG Yi 

                    Director

______________________________

Terri WonderlyUntitled Page

		============================================================

		Exhibit 10.1; Direct Response Financial Services, Inc. 2006 Stock Incentive Plan.

				

				

				

			

		
			DIRECT RESPONSE FINANCIAL SERVICES, INC.

						2006 STOCK INCENTIVE PLAN

						

						

					

		

		
			SECTION 1. General Purpose of the Plan; Definitions.

					

				    The name of the plan is the DIRECT RESPONSE FINANCIAL SERVICES, Inc. 2006 Stock Incentive Plan (the "Plan"). The purpose of the Plan is to encourage and enable officers, directors, and employees of DIRECT RESPONSE FINANCIAL SERVICES, Inc. (the "Company") and its Subsidiaries and other persons to acquire a proprietary interest in the Company. It is anticipated that providing such persons with a direct stake in the Company's welfare will assure a closer identification of their interests with those of the Company and its shareholders, thereby stimulating their efforts on the Company's behalf and strengthening their desire to remain with the Company.

				

				    The following terms shall be defined as set forth below:

		

		    "Award" or "Awards", except where referring to a particular category of grant under the Plan, shall include Incentive Stock Options, Non-Statutory Stock Options, Restricted Stock Awards, Unrestricted Stock Awards, Performance Share Awards and Stock Appreciation Rights.

		    "Board" means the Board of Directors of the Company.

		    "Cause" means (i) any material breach by the participant of any agreement to which the participant and the Company are both parties, and (ii) any act or omission justifying termination of the participant's employment for cause, as determined by the Committee.

		    "Change of Control" shall have the meaning set forth in Section 15.

		    "Code" means the Internal Revenue Code of 1986, as amended, and any successor Code, and related rules, regulations and interpretations.

		    "Conditioned Stock Award" means an Award granted pursuant to Section 6.

		    "Committee" shall have the meaning set forth in Section 2.

		    "Disability" means disability as set forth in Section 22(e)(3) of the Code.

		    "Effective Date" means the date on which the Plan is approved by stockholders as set forth in Section 17.

		    "Eligible Person" shall have the meaning set forth in Section 4.

		    "Fair Market Value" on any given date means the price per share of the Stock on such date as reported by a nationally recognized stock exchange, or, if the Stock is not listed on such an exchange, as reported by NASDAQ, or, if the Stock is not quoted on NASDAQ, the fair market value of the Stock as determined by the Committee.

		    "Incentive Stock Option" means any Stock Option designated and qualified as an "incentive stock option" as defined in Section 422 of the Code.

		    "Non-Statutory Stock Option" means any Stock Option that is not an Incentive Stock Option.

		    "Normal Retirement" means retirement from active employment with the Company and its Subsidiaries in accordance with the retirement policies of the Company and its Subsidiaries then in effect.

		    "Outside Director" means any director who (i) is not an employee of the Company or of any "affiliated group," as such term is defined in Section 1504(a) of the Code, which includes the Company (an "Affiliate"), (ii) is not a former employee of the Company or any Affiliate who is receiving compensation for prior services (other than benefits under a tax-qualified retirement plan) during the Company's or any Affiliate's taxable year, (iii) has not been 

		

		

		

		

		

		

		

		

		an officer of the Company or any Affiliate and (iv) does not receive remuneration from the Company or any Affiliate, either directly or indirectly, in any capacity other than as a director. "Outside Director" shall be determined in accordance with Section 162(m) of the Code and the Treasury regulations issued thereunder.
		    "Option" or "Stock Option" means any option to purchase shares of Stock granted pursuant to Section 5.

		    "Performance Share Award" means an Award granted pursuant to Section 8.

		    "Stock" means the Common Stock, no par value, of the Company, subject to adjustments pursuant to Section 3.

		    "Stock Appreciation Right" means an Award granted pursuant to Section 9.

		    "Subsidiary" means a subsidiary as defined in Section 424 of the Code.

		    "Unrestricted Stock Award" means Awards granted pursuant to Section 7.

			

			SECTION 2. Administration of Plan; Committee Authority to Select Participants and Determine Awards.

				

			    (a)   Committee.  The Plan shall be administered by a committee of the Board (the "Committee") consisting of not less than two (2) Outside Directors, but the authority and validity of any act taken or not taken by the Committee shall not be affected if any person administering the Plan is not an "Outside Director." The Board of Directors may act as the Committee at any time. Except as specifically reserved to the Board under the terms of the Plan, the Committee shall have full and final authority to operate, manage and administer the Plan on behalf of the Company. Action by the Committee shall require the affirmative vote of a majority of all members thereof. The Board may establish an additional single-member committee (consisting of an executive officer) that shall have the power and authority to grant Awards to non-executive officers and to make all other determinations under the Plan with respect thereto.

		    (b)   Powers of Committee.  The Committee shall have the power and authority to grant and modify Awards consistent with the terms of the Plan, including the power and authority:

		            (i)   to select the persons to whom Awards may from time to time be granted;

		           (ii)   to determine the time or times of grant, and the extent, if any, of Incentive Stock Options, Non-Statutory Stock Options, Restricted Stock, Unrestricted Stock, Performance Shares and Stock Appreciation Rights, or any combination of the foregoing, granted to any one or more participants;

		           (iii)   to determine the number of shares to be covered by any Award;

		           (iv)   to determine and modify the terms and conditions, including restrictions, not inconsistent with the terms of the Plan, of any Award, which terms and conditions may differ among individual Awards and participants, and to approve the form of written instruments evidencing the Awards; provided, however, that no such action shall adversely affect rights under any outstanding Award without the participant's consent;

		           (v)   to accelerate the exercisability or vesting of all or any portion of any Award;

		           (vi)   subject to the provisions of Section 5(b), to extend the period in which any outstanding Stock Option or Stock Appreciation Right may be exercised;

		           (vii)   to determine whether, to what extent, and under what circumstances Stock and other amounts payable with respect to an Award shall be deferred either automatically or at the election of the participant and whether and to what extent the Company shall pay or credit amounts equal to interest (at rates determined by the Committee) or dividends or deemed dividends on such deferrals; and

		

		

		

		

		

		

		

		

		

		           (viii)   to adopt, alter and repeal such rules, guidelines and practices for administration of the Plan and for its own acts and proceedings as it shall deem advisable; to interpret the terms and provisions of the Plan and any Award (including related written instruments); to make all determinations it deems advisable for the administration of the Plan; to decide all disputes arising in connection with the Plan; and to otherwise supervise the administration of the Plan.
		    All decisions and interpretations of the Committee shall be binding on all persons, including the Company and Plan participants.

		

		SECTION 3. Shares Issuable under the Plan; Mergers; Substitution.

		

		    (a)   Shares Issuable.  The maximum number of shares of Stock with respect to which Awards (including Stock Appreciation Rights) may be granted under the Plan shall be Five Million (5,000,000). For purposes of this limitation, the shares of Stock underlying any Awards which are forfeited, cancelled, reacquired by the Company or otherwise terminated (other than by exercise) shall be added back to the shares of Stock with respect to which Awards may be granted under the Plan so long as the participants to whom such Awards had been previously granted received no benefits of ownership of the underlying shares of Stock to which the Award related. Subject to such overall limitation, any type or types of Award may be granted with respect to shares, including Incentive Stock Options. Shares issued under the Plan may be authorized but unissued shares or shares reacquired by the Company.

		    (b)   Stock Dividends, Mergers, etc.  In the event that after approval of the Plan by the directors of the Company in accordance with Section 17, the Company effects a stock dividend, stock split or similar change in capitalization affecting the Stock, the Committee shall make appropriate adjustments in (i) the number and kind of shares of stock or securities with respect to which Awards may thereafter be granted (including without limitation the limitations set forth in Section 3(a) and Section 3(b) above), (ii) the number and kind of shares remaining subject to outstanding Awards, and (iii) the option or purchase price in respect of such shares. In the event of any merger, consolidation, dissolution or liquidation of the Company, the Committee in its sole discretion may, as to any outstanding Awards, make such substitution or adjustment in the aggregate number of shares reserved for issuance under the Plan and in the number and purchase price (if any) of shares subject to such Awards as it may determine and as may be permitted by the terms of such transaction, or accelerate, amend or terminate such Awards upon such terms and conditions as it shall provide (which, in the case of the termination of the vested portion of any Award, shall require payment or other consideration which the Committee deems equitable in the circumstances), subject, however, to the provisions of Section 15.

		    (c)   Substitute Awards.  The Committee may grant Awards under the Plan in substitution for stock and stock based awards held by employees of another corporation who concurrently become employees of the Company or a Subsidiary as the result of a merger or consolidation of the employing corporation with the Company or a Subsidiary or the acquisition by the Company or a Subsidiary of property or stock of the employing corporation. The Committee may direct that the substitute awards be granted on such terms and conditions as the Committee considers appropriate in the circumstances. Shares which may be delivered under such substitute awards may be in addition to the maximum number of shares provided for in Section 3(a).

		

		

		

		

		

		

		

		

		

		

		SECTION 4. Eligibility.
		

		    Awards may be granted to officers, directors, and employees of and consultants and advisers to the Company or its Subsidiaries ("Eligible Persons").

		

		SECTION 5. Stock Options.

		

		    The Committee may grant to Eligible Persons options to purchase stock.

		    Any Stock Option granted under the Plan shall be in such form as the Committee may from time to time approve.

		    Stock Options granted under the Plan may be either Incentive Stock Options (subject to compliance with applicable law) or Non-Statutory Stock Options. Unless otherwise so designated, an Option shall be a Non-Statutory Stock Option. To the extent that any option does not qualify as an Incentive Stock Option, it shall constitute a Non-Statutory Stock Option.

		    No Incentive Stock Option shall be granted under the Plan after the tenth anniversary of the earlier of (i) the date of adoption of the Plan by the Board, or (ii) the date on which the Plan is ratified by the stockholders as set forth in Section 17.

		    The Committee in its discretion may determine the effective date of Stock Options, provided, however, that grants of Incentive Stock Options shall be made only to persons who are, on the effective date of the grant, employees of the Company or any Subsidiary. Stock Options granted pursuant to this Section 5(a) shall be subject to the following terms and conditions and the terms and conditions of Section 13 and shall contain such additional terms and conditions, not inconsistent with the terms of the Plan, as the Committee shall deem desirable.

		    (a)   Exercise Price.  The exercise price per share for the Stock covered by a Stock Option granted pursuant to this Section 5(a) shall be determined by the Committee at the time of grant but shall be, in the case of Incentive Stock Options, not less than one hundred percent (100%) of Fair Market Value on the date of grant. If an employee owns or is deemed to own (by reason of the attribution rules applicable under Section 424(d) of the Code) more than ten percent (10%) of the combined voting power of all classes of stock of the Company or any Subsidiary or parent corporation and an Incentive Stock Option is granted to such employee, the option price shall be not less than one hundred ten percent (110%) of Fair Market Value on the grant date.

		    (b)   Option Term.  The term of each Stock Option shall be fixed by the Committee, but no Incentive Stock Option shall be exercisable more than ten (10) years after the date the option is granted. If an employee owns or is deemed to own (by reason of the attribution rules of Section 424(d) of the Code) more than ten percent (10%) of the combined voting power of all classes of stock of the Company or any Subsidiary or parent corporation and an Incentive Stock Option is granted to such employee, the term of such option shall be no more than five (5) years from the date of grant.

		    (c)   Exercisability; Rights of a Shareholder.  Stock Options shall become vested and exercisable at such time or times, whether or not in installments, as shall be determined by the Committee at or after the grant date. The Committee may at any time accelerate the exercisability of all or any portion of any Stock Option. An optionee shall have the rights of a shareholder only as to shares acquired upon the exercise of a Stock Option and not as to unexercised Stock Options.

		    (d)   Method of Exercise.  Stock Options may be exercised in whole or in part, by delivering written notice of exercise to the Company, specifying the number of shares to be purchased. Payment of the purchase price may be made by one or more of the following methods:

		            (i)   In cash or by certified or bank check or other instrument acceptable to the Committee;

		

		

		

		

		

		

		

		

		

		            (ii)   If permitted by the Committee, in its discretion, in the form of shares of Stock that are not then subject to restrictions and that have been owned by the optionee for a period of at least six months. Such surrendered shares shall be valued at Fair Market Value on the exercise date; or
		            (iii)  By the optionee delivering to the Company a properly executed exercise notice together with irrevocable instructions to a broker to promptly deliver to the Company cash or a check payable and acceptable to the Company to pay the purchase price; provided that in the event the optionee chooses to pay the purchase price as so provided, the optionee and the broker shall comply with such procedures and enter into such agreements of indemnity and other agreements as the Committee shall prescribe as a condition of such payment procedure. The Company need not act upon such exercise notice until the Company receives full payment of the exercise price; or

		            (iv)   By any other means (including, without limitation, by delivery of a promissory note of the optionee payable on such terms as are specified by the Committee) which the Committee determines are consistent with the purpose of the Plan and with applicable laws and regulations.

		    The delivery of certificates representing shares of Stock to be purchased pursuant to the exercise of a Stock Option will be contingent upon receipt from the Optionee (or a purchaser acting in his stead in accordance with the provisions of the Stock Option) by the Company of the full purchase price for such shares and the fulfillment of any other requirements contained in the Stock Option or imposed by applicable law.

		    (e)   Non-transferability of Options.  Except as the Committee may provide with respect to a Non-Statutory Stock Option, no Stock Option shall be transferable other than by will or by the laws of descent and distribution and all Stock Options shall be exercisable, during the optionee's lifetime, only by the optionee.

		    (f)   Annual Limit on Incentive Stock Options.  To the extent required for "incentive stock option" treatment under Section 422 of the Code, the aggregate Fair Market Value (determined as of the time of grant) of the Stock with respect to which incentive stock options granted under this Plan and any other plan of the Company or its Subsidiaries become exercisable for the first time by an optionee during any calendar year shall not exceed $100,000.

		    (g)   Form of Settlement.  Shares of Stock issued upon exercise of a Stock Option shall be free of all restrictions under the Plan, except as otherwise provided in this Plan.

			

			SECTION 6. Restricted Stock Awards.

				

			    (a)   Nature of Restricted Stock Award.  The Committee in its discretion may grant Restricted Stock Awards to any Eligible Person, entitling the recipient to acquire, for a purchase price determined by the Committee, shares of Stock subject to such restrictions and conditions as the Committee may determine at the time of grant ("Restricted Stock"), including continued employment and/or achievement of pre-established performance goals and objectives.

		    (b)   Acceptance of Award. A participant who is granted a Restricted Stock Award shall have no rights with respect to such Award unless the participant shall have accepted the Award within sixty (60) days (or such shorter date as the Committee may specify) following the award date by making payment to the Company of the specified purchase price, of the shares covered by the Award and by executing and delivering to the Company a written instrument that sets forth the terms and conditions applicable to the Restricted Stock in such form as the Committee shall determine.

		

		

		

		

		

		

		

		

		

		    (c)   Rights as a Shareholder.  Upon complying with Section 6(b) above, a participant shall have all the rights of a shareholder with respect to the Restricted Stock, including voting and dividend rights, subject to non-transferability restrictions and Company repurchase or forfeiture rights described in this Section 6 and subject to such other conditions contained in the written instrument evidencing the Restricted Award. Unless the Committee shall otherwise determine, certificates evidencing shares of Restricted Stock shall remain in the possession of the Company until such shares are vested as provided in Section 6(e) below.
		    (d)   Restrictions.  Shares of Restricted Stock may not be sold, assigned, transferred, pledged or otherwise encumbered or disposed of except as specifically provided herein. In the event of termination of employment by the Company and its Subsidiaries for any reason (including death, Disability, Normal Retirement and for Cause), the Company shall have the right, at the discretion of the Committee, to repurchase shares of Restricted Stock with respect to which conditions have not lapsed at their purchase price, or to require forfeiture of such shares to the Company if acquired at no cost, from the participant or the participant's legal representative. The Company must exercise such right of repurchase or forfeiture within ninety (90) days following such termination of employment (unless otherwise specified in the written instrument evidencing the Restricted Stock Award).

		    (e)   Vesting of Restricted Stock.  The Committee at the time of grant shall specify the date or dates and/or the attainment of pre-established performance goals, objectives and other conditions on which the non-transferability of the Restricted Stock and the Company's right of repurchase or forfeiture shall lapse. Subsequent to such date or dates and/or the attainment of such preestablished performance goals, objectives and other conditions, the shares on which all restrictions have lapsed shall no longer be Restricted Stock and shall be deemed "vested." The Committee at any time may accelerate such date or dates and otherwise waive or, subject to Section 13, amend any conditions of the Award.

		    (f)   Waiver, Deferral and Reinvestment of Dividends.  The written instrument evidencing the Restricted Stock Award may require or permit the immediate payment, waiver, deferral or investment of dividends paid on the Restricted Stock.

			

			SECTION 7. Unrestricted Stock Awards.

		

		    (a)   Grant or Sale of Unrestricted Stock.  The Committee in its discretion may grant or sell to any Eligible Person shares of Stock free of any restrictions under the Plan ("Unrestricted Stock") at a purchase price determined by the Committee. Shares of Unrestricted Stock may be granted or sold as described in the preceding sentence in respect of past services or other valid consideration.

		    (b)   Restrictions on Transfers.  The right to receive unrestricted Stock may not be sold, assigned, transferred, pledged or otherwise encumbered, other than by will or the laws of descent and distribution.

			

			SECTION 8. Performance Share Awards.

		

		    (a)   Nature of Performance Shares. A Performance Share Award is an award entitling the recipient to acquire shares of Stock upon the attainment of specified performance goals. The Committee may make Performance Share Awards independent of or in connection with the granting of any other Award under the Plan. Performance Share Awards may be granted under the Plan to any Eligible Person. The Committee in its discretion shall determine whether and to whom Performance Share Awards shall be made, the performance goals 

		

		

		

		

		

		

		

		

		

		applicable under each such Award, the periods during which performance is to be measured, and all other limitations and conditions applicable to the awarded Performance Shares.
		

		SECTION 9. Stock Appreciation Rights.

		

		    The Committee in its discretion may grant Stock Appreciation Rights to any Eligible Person (i) alone, or (ii) simultaneously with the grant of a Stock Option and in conjunction therewith or in the alternative thereto. A Stock Appreciation Right shall entitle the participant upon exercise thereof to receive from the Company, upon written request to the Company at its principal offices (the "Request"), a number of shares of Stock (with or without restrictions as to substantial risk of forfeiture and transferability, as determined by the Committee in its sole discretion), an amount of cash, or any combination of Stock and cash, as specified in the Request (but subject to the approval of the Committee in its sole discretion, at any time up to and including the time of payment, as to the making of any cash payment), having an aggregate Fair Market Value equal to the product of (i) the excess of Fair Market Value, on the date of such Request, over the exercise price per share of Stock specified in such Stock Appreciation Right or its related Option, multiplied by (ii) the number of shares of Stock for which such Stock Appreciation Right shall be exercised. Notwithstanding the foregoing, the Committee may specify at the time of grant of any Stock Appreciation Right that such Stock Appreciation Right may be exercisable solely for cash and not for Stock.

			

			SECTION 10. Termination of Stock Options and Stock Appreciation Rights.

				

			    (a)   Incentive Stock Options: 

		           (i)   Termination by Death. If any participant's employment by the Company and its Subsidiaries terminates by reason of death, any Incentive Stock Option owned by such participant may thereafter be exercised to the extent exercisable at the date of death, by the legal representative or legatee of the participant, for a period of two (2) years (or such other period as the Committee shall specify at any time) from the date of death, or until the expiration of the stated term of the Incentive Stock Option, if earlier.

		           (ii)   Termination by Reason of Disability or Normal Retirement. 

		                  (A)   Any Incentive Stock Option held by a participant whose employment by the Company and its Subsidiaries has terminated by reason of Disability may thereafter be exercised, to the extent it was exercisable at the time of such termination, for a period of one (1) year (or such other period as the Committee shall specify at any time) from the date of such termination of employment, or until the expiration of the stated term of the Option, if earlier.

		                  (B)   Any Incentive Stock Option held by a participant whose employment by the Company and its Subsidiaries has terminated by reason of Normal Retirement may thereafter be exercised, to the extent it was exercisable at the time of such termination, for a period of ninety (90) days (or such other period as the Committee shall specify at any time) from the date of such termination of employment, or until the expiration of the stated term of the Option, if earlier.

		                  (C)   The Committee shall have sole authority and discretion to determine whether a participant's employment has been terminated by reason of Disability or Normal Retirement.

		                  (D)   Except as otherwise provided by the Committee at the time of grant, the death of a participant during a period provided in this Section 10(a)(ii) for the exercise of an Incentive Stock Option shall extend such period for 

		

		

		

		

		

		

		

		

		

		two (2) years from the date of death, subject to termination on the expiration of the stated term of the Option, if earlier.
		            (iii)   Termination for Cause. If any participant's employment by the Company and its Subsidiaries has been terminated for Cause, any Incentive Stock Option held by such participant shall immediately terminate and be of no further force and effect; provided, however, that the Committee may, in its sole discretion, provide that such Option can be exercised for a period of up to thirty (30) days from the date of termination of employment or until the expiration of the stated term of the Option, if earlier.

		            (iv)   Other Termination. Unless otherwise determined by the Committee, if a participant's employment by the Company and its Subsidiaries terminates for any reason other than death, Disability, Normal Retirement or for Cause, any Incentive Stock Option held by such participant may thereafter be exercised, to the extent it was exercisable on the date of termination of employment, for ninety (90) days (or such other period as the Committee shall specify at any time) from the date of termination of employment or until the expiration of the stated term of the Option, if earlier.

		    (b)   Non-Statutory Stock Options and Stock Appreciation Rights.  Any Non-Statutory Stock Option or Stock Appreciation Right granted under the Plan shall contain such terms and conditions with respect to its termination as the Committee, in its discretion, may from time to time determine.

		

		SECTION 11. Tax Withholding.

		

		    (a)   Payment by Participant.  Each participant shall, no later than the date as of which the value of an Award or of any Stock or other amounts received thereunder first becomes includable in the gross income of the participant for Federal income tax purposes, pay to the Company, or make arrangements satisfactory to the Committee regarding payment of any Federal, state, local and/or payroll taxes of any kind required by law to be withheld with respect to such income. The Company and its Subsidiaries shall, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to the participant.

		    (b)   Payment in Shares.  A Participant may elect, with the consent of the Committee, to have such tax withholding obligation satisfied, in whole or in part, by (i) authorizing the Company to withhold from shares of Stock to be issued pursuant to an Award a number of shares with an aggregate Fair Market Value (as of the date the withholding is effected) that would satisfy the minimum withholding amount due with respect to such Award, or (ii) transferring to the Company shares of Stock owned by the participant for a period of at least six months and with an aggregate Fair Market Value (as of the date the minimum withholding is effected) that would satisfy the withholding amount due.

		

		SECTION 12. Transfer, Leave of Absence, Etc.

		

		    For purposes of the Plan, the following events shall not be deemed a termination of employment:

		     (i)   a transfer to the employment of the Company from a Subsidiary or from the Company to a Subsidiary, or from one Subsidiary to another;

		    (ii)   an approved leave of absence for military service or sickness, or for any other purpose approved by the Company, if the employee's right to re-employment is guaranteed either by a statute or by contract or under the policy pursuant to which the leave of absence was granted or if the Committee otherwise so provides in writing.

		

		

		

		

		

		

		

		

		

		SECTION 13. Amendments and Termination.
		

		    The Board may at any time amend or discontinue the Plan and the Committee may at any time amend or cancel any outstanding Award (or provide substitute Awards at the same or reduced exercise or purchase price or with no exercise or purchase price, but such price, if any, must satisfy the requirements which would apply to the substitute or amended Award if it were then initially granted under this Plan) for the purpose of satisfying changes in law or for any other lawful purpose, but no such action shall adversely affect rights under any outstanding Award without the holder's consent. However, no such amendment, unless approved by the directors of the Company, shall be effective if it would cause the Plan to fail to satisfy the incentive stock option requirements of the Code.

			

			SECTION 14. Status of Plan.

				

			    With respect to the portion of any Award which has not been exercised and any payments in cash, Stock or other consideration not received by a participant, a participant shall have no rights greater than those of a general creditor of the Company unless the Committee shall otherwise expressly determine in connection with any Award or Awards. In its sole discretion, the Committee may authorize the creation of trusts or other arrangements to meet the Company's obligations to deliver Stock or make payments with respect to Awards hereunder, provided that the existence of such trusts or other arrangements is consistent with the provision of the foregoing sentence.

			

			SECTION 15. Change of Control Provisions.

				

			    Upon the occurrence of a Change of Control as defined in this Section 15:

		            (i)   subject to the provisions of clause (iii) below, after the effective date of such Change of Control, each holder of an outstanding Stock Option, Restricted Stock Award, Performance Share Award or Stock Appreciation Right shall be entitled, upon exercise of such Award, to receive, in lieu of shares of Stock (or consideration based upon the Fair Market Value of Stock), shares of such stock or other securities, cash or property (or consideration based upon shares of such stock or other securities, cash or property) as the holders of shares of Stock received in connection with the Change of Control;

		           (ii)   the Committee may accelerate the time for exercise of, and waive all conditions and restrictions on, each unexercised and unexpired Stock Option, Restricted Stock Award, Performance Share Award and Stock Appreciation Right, effective upon a date prior or subsequent to the effective date of such Change of Control, specified by the Committee; or

		           (iii)   each outstanding Stock Option, Restricted Stock Award, Performance Share Award and Stock Appreciation Right may be cancelled by the Committee as of the effective date of any such Change of Control provided that (x) notice of such cancellation shall be given to each holder of such an Award and (y) each holder of such an Award shall have the right to exercise such Award to the extent that the same is then exercisable or, in full, if the Committee shall have accelerated the time for exercise of all such unexercised and unexpired Awards, during the thirty (30) day period preceding the effective date of such Change of Control.

		    (b)   "Change of Control" shall mean the occurrence of any one of the following events:

		            (i)   any "person" (as such term is used in Sections 13(d) and 14(d)(2) of the Act) becomes a "beneficial owner" (as such term is defined in Rule 13d-3 promulgated under the Act) (other than the Company, any trustee or other fiduciary holding securities under an employee benefit plan of the Company, 

		

		

		

		

		

		

		

		

		

		or any corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company), directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the combined voting power of the Company's then outstanding securities; or
		           (ii)   the stockholders of the Company approve a merger or consolidation of the Company with any other corporation or other entity, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than sixty-five percent (65%) of the combined voting power of the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation; or

		           (iii)   the stockholders of the Company approve a plan of complete liquidation of the Company or an agreement for the sale or disposition by the Company of all or substantially all of the Company's assets.

		

		SECTION 16. General Provisions.

		

		    (a)   No Distribution; Compliance with Legal Requirements.  The Committee may require each person acquiring shares pursuant to an Award to represent to and agree with the Company in writing that such person is acquiring the shares without a view to distribution thereof.

		    No shares of Stock shall be issued pursuant to an Award until all applicable securities laws and other legal and stock exchange requirements have been satisfied. The Committee may require the placing of such stop orders and restrictive legends on certificates for Stock and Awards as it deems appropriate.

		    (b)   Delivery of Stock Certificates.  Delivery of stock certificates to participants under this Plan shall be deemed effected for all purposes when the Company or a stock transfer agent of the Company shall have delivered such certificates in the United States mail, addressed to the participant, at the participant's last known address on file with the Company.

		    (c)   Other Compensation Arrangements; No Employment Rights.  Nothing contained in this Plan shall prevent the Board from adopting other or additional compensation arrangements, including trusts, subject to stockholder approval if such approval is required; and such arrangements may be either generally applicable or applicable only in specific cases. The adoption of the Plan or any Award under the Plan does not confer upon any employee any right to continued employment with the Company or any Subsidiary.

		

		SECTION 17. Effective Date of Plan.

		

		    The Plan shall become effective upon approval by the board of directors of the Company; however, no Incentive Stock Option shall be granted unless and until the Plan is ratified at a meeting of the stockholders of the Company.

		

		SECTION 18. Governing Law.

		

		    This Plan shall be governed by, and construed and enforced in accordance with, the substantive laws of the State of Colorado without regard to its principles of conflicts of laws.

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