Document:

EXHIBIT 10.8  

EXACTTARGET, INC. 2008 EQUITY INCENTIVE PLAN  

        ExactTarget, Inc.
("Company") hereby establishes the ExactTarget, Inc. 2008 Equity Incentive Plan ("Plan"), effective February 1, 2008. 

ARTICLE I

RESTATEMENT AND PURPOSE  

        Section 1.01.    Approval of Plan.    The Company's Board of Directors approved this Plan on January 23,
2008, contingent on approval by the Company's shareholders within 12 months following its adoption by the Board. The Company's shareholder's approved the Plan on
                        , 2008. 

        Section 1.02.    Description of Plan.    The Plan is designed to promote the interests of the Company and its
shareholders by providing a means by which the Board can award stock-based incentives to employees and directors of the Company or any Subsidiary ("Participants"). The Plan permits the Board to grant
Incentive Stock Options, Non-Qualified Stock Options, Restricted Stock, and Stock Appreciation Rights, all as provided herein. 

        Section 1.03.    Purpose of Plan.    The purpose of the Plan is to further the growth, development, and
financial success of the Company by providing for stock-based incentives to Participants that align their interests more closely with those of the Company's shareholders. The Company also believes
that the Plan will assist it in its efforts to attract and retain quality employees and directors. 

ARTICLE II

DEFINITIONS AND RULES OF CONSTRUCTION  

        Section 2.01.    Definitions.    When capitalized in this Plan, the following terms shall have the meanings
specified below, unless the context otherwise requires: 

        (a)   "Award"
means a grant made to a Participant pursuant to Article VI. 

        (b)   "Award
Agreement" means a written instrument between the Company and a Participant evidencing an Award and prescribing the terms, conditions, and restrictions applicable
to the Award. 

        (c)   "Board
of Directors" or "Board" means the Company's Board of Directors, as constituted from time to time. 

        (d)   "Cause"
means, with respect to a Participant, that, in the Board's reasonable good faith judgment, the Participant (i) has materially breached the terms of any
employment Agreement with the Employer and failed to correct the breach within ten (10) days after receiving the Board's written notice of such cure; (ii) has committed gross negligence
or willful misconduct in the performance or intentional non-performance of any material duty of his employment; and/or (iii) has engaged in dishonesty, fraud, or intentional
misconduct with respect to the business or affairs of the Employer (monetarily or otherwise). 

        (e)   "Code"
means the Internal Revenue Code of 1986, as amended from time to time. 

        (f)    "Committee"
means the committee described in Section 3.01; provided however, to the extent that the Board has not designated a Committee, "Committee" means the
"Board." 

        (g)   "Company"
means ExactTarget, Inc. 

        (h)   "Director"
means a director of the Company or a Subsidiary who is not also an Employee. 

 

        (i)    "Employee"
means any individual employed by the Company or a Subsidiary, including an employee who is a member of the Board or the board of directors of a Subsidiary. 

        (j)    "Employer"
means the Company and/or a Subsidiary. 

        (k)   "Exercise
Price" means the price, if any, required to be paid to the Company upon the exercise of an Award. 

        (l)    "Fair
Market Value" means, with respect to a Share on any date, as follows: 

        (1)   if
the Shares are listed or admitted to trade and are readily tradable on a national securities exchange, the closing price of a Share on the principal national
securities exchange on which the Shares are listed or admitted to trade on such date, or, if there is no trading of the Shares on such date, the closing price of a Share as quoted on the next
preceding date on which there was trading in Shares; 

        (2)   if
the Shares are not subject to paragraph (1) above, but are readily tradable on an established securities market, the closing price of a Share on such date on
such market, or if there is no trading of the Shares on such date, the closing price of a Share on the next preceding date on which there was trading in Shares; and 

        (3)   if
the Shares are not subject to paragraph (1) or (2) above, the fair market value of the Shares on such date, as determined by the Committee in a manner
that satisfies the requirements of Code Section 409A and the guidance thereunder for exempt equity-based compensation. 

        (m)  "Grant
Date" means the date on which the Committee approves the grant. 

        (n)   "Incentive
Stock Option" means an option for Shares granted pursuant to the Plan that satisfies the requirements of Code Section 422. 

        (o)   "Non-Qualified
Stock Option" means an option for Shares granted pursuant to the Plan that that is not an Incentive Stock Option. 

        (p)   "Option"
means an Incentive Stock Option or a Non-Qualified Stock Option. 

        (q)   "Participant"
means a person to whom an Award has been granted under the Plan, provided, however, a Participant shall cease to be such at such time as all Awards granted
to him under the Plan have been exercised and/or forfeited. 

        (r)   "Performance-Based
Compensation" means compensation described in Code Section 162(m)(4)(C) that is excluded from "applicable employee remuneration" under Code
Section 162(m). 

        (s)   "Performance-Based
Restricted Stock" means Restricted Stock that is subject to forfeiture unless specified Performance Targets are satisfied during the Performance
Period. 

        (t)    "Performance
Measures" means, with respect to Performance-Based Restricted Stock, the objective factors used to determine whether the restrictions on the Restricted
Stock have lapsed. "Performance Measures" shall be based on any of the factors listed below, alone or in combination, as determined by the Committee. Such factors may be applied (i) on a
corporate-wide or business-unit basis, (ii) including or excluding one or more Subsidiaries; (iii) in comparison with plan, budget, or prior performance; and/or
(iv) on an absolute basis or in comparison with peer-group performance. The factors that may be used as Performance Measures are (i) return on assets; (ii) return on
equity; (iii) total shareholder return; (iv) operating income; (v) net income; (vi) earnings per share; and (vii) income before interest and taxes. Performance
Measures may differ from Participant to Participant and Award to Award. 

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        (u)   "Performance
Period" means the period of time during which Performance Targets must be achieved with respect to an Award of Restricted Stock, as established by the
Committee. 

        (v)   "Performance
Targets" means, with respect to an Award of Performance-Based Restricted Stock, the objective performance under the Performance Measures for that
Performance Period that will result in payments under the Award. Performance Targets may differ from Participant to Participant and Award to Award. 

        (w)  "Period
of Restriction" means the period during which a Share of Restricted Stock is subject to restrictions and a substantial risk of forfeiture. 

        (x)   "Plan"
means the ExactTarget, Inc. 2008 Equity Incentive Plan, as set out in this document, as amended from time to time. 

        (y)   "Prior
Plan" means the ExactTarget, Inc. 2004 Stock Option Plan. 

        (z)   "Restricted
Stock" means Shares awarded pursuant to the Plan that, at the time of grant, are nontransferable and are subject to a substantial risk of forfeiture. 

        (aa) "Rule 16b-3"
means Rule 16b-3 under the Securities Exchange Act of 1934, as amended. 

        (bb) "Separation
from Service," "Separates from Service," or any variation of such term means, (i) in the case of an Employee, a complete termination of the
employment relationship between the Employee and all Employers and, (ii) in the case of a Director, termination of the Director's service as a Director. 

        (cc) "Service-Based
Restricted Stock" means Restricted Stock with restrictions based solely on the Participant's continued service with the Company or an Affiliate. 

        (dd) "Share"
means a share of the Company's common stock. 

        (ee) "Stock
Appreciation Right" or "SAR" has the meaning given to it in Section 6.02(a). 

        (ff)  "Subsidiary"
means any company (other than the Company) that is a "subsidiary corporation" within the meaning of Code Section 424. 

        Section 2.02.    Rules of Construction.    The following rules shall apply in construing the Plan and any Award
Agreement: 

        (a)   Except
as expressly provided below, this Plan, the Awards, all documents evidencing Awards and all other related documents shall be governed by, and construed in
accordance with, the laws of the State of Indiana without regard to conflict of law principles. 

        (b)   Words
used in the masculine shall be construed to include the feminine gender, where appropriate, and words used in the singular or plural shall be construed as being in
the plural or singular, where appropriate. 

        (c)   Provisions
of the Plan applicable to Incentive Stock Options shall be construed to effect compliance with Code Section 422. 

        (d)   Captions
and headings are for convenience only, and they shall not affect the construction of the Plan or any Award Agreement. 

        (e)   Reference
to any provision of the Code or other law shall be deemed to include a reference to the successor of such provision. 

        (f)    The
Plan and the Awards are intended to comply with and shall be construed to effect compliance with, the exemptions under Rule 16b-3, in the case of
Participants who are subject to Section 16 of the Securities Exchange Act of 1934; provided, however, the Company shall have no liability to any Participant for Section 16 consequences
of an Award. 

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        (g)   It
is intended that Awards granted with an Exercise Price not less than Fair Market Value on the date of grant shall qualify as performance-based compensation or
otherwise be exempt from deductibility limitations under Code Section 162(m), and the Plan and the Awards shall be construed accordingly. 

        (h)   It
is intended that all Awards shall be exempt from the provisions of Code Section 409A, and the provisions of the Plan and any Agreement applicable to an Award
shall be construed in accordance with such intent. 

        (i)    If
a court of competent jurisdiction holds any provision invalid and unenforceable, the remaining provisions of the Plan shall continue in effect, provided that the
essential economic terms of the Plan and any Award can still be enforced. 

ARTICLE III

ADMINISTRATION  

        Section 3.01.    Committee.    Except as otherwise provided herein, the Plan shall be administered by the Board
or, at the Board's option, by a compensation committee thereof to which the Board has duly delegated the administration of the Plan. The Committee shall consist solely of two or more
non-employee directors (within the meaning of Rule 16b-3) who are "outside directors" for purposes of Code Section 162(m) and the regulations thereunder. Any
action of the Committee with respect to administration of the Plan shall be taken by a majority vote or written consent of its members. 

        Section 3.02.    Powers of Committee.    Subject to the express provisions of the Plan and any express
limitations on its delegated authority, the Committee is authorized and empowered to administer the Plan and to (i) designate those persons who are Participants; (ii) grant Awards;
(iii) determine the effective date of each Award, the number of Shares subject to the Award, and the other terms and conditions of the Award, which terms and conditions need not be the same for
each Award; (iv) interpret the Plan; (v) determine the Fair Market Value of the Shares; (vi) accelerate the time during which an Award may be exercised, either in accordance with
Section 6.09 or otherwise, in each case notwithstanding the provisions of the Award Agreement stating the time during which the Award may be exercised; (vii) prescribe, amend, and
rescind rules relating to the Plan; (viii) authorize any person to execute on behalf of the Company any instrument required to effectuate the grant of an Award previously granted by the
Committee; (ix) determine the rights and obligations of Participants under the Plan; and (x) make all other determinations deemed necessary or advisable for the administration of the
Plan. Notwithstanding the preceding provisions, the Committee is not authorized to take any action that would cause an Award hereunder to become subject to the provisions of Code Section 409A. 

        Section 3.03.    Binding Determinations.    Any action taken by, or inaction of, the Company, the Board, or the
Committee relating or pursuant to the Plan (including, without limitation, any determination of Fair Market Value) shall be within the sole discretion of that entity or body and shall be conclusive
and binding upon all persons. Subject only to compliance with the express provisions hereof, the Board and Committee may act in their sole discretion in matters within their authority related to the
Plan. 

        Section 3.04.    Reliance on Experts.    In making any determination or in taking or not taking any action
under the Plan, the Committee or the Board, as the case may be, may obtain and rely upon the advice of experts, including employees of and professional advisors to the Company. 

        Section 3.05.    Delegation.    The Committee may delegate ministerial non-discretionary functions
to one or more Company officers or employees. Subject to applicable law, the Committee may delegate to the Company's Chief Executive Officer all or part of its authority and duties with respect to the
granting of Awards to individuals who are not (i) subject to the reporting and other provisions of 

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Section 16
of the Securities Exchange Act of 1934 or (ii) covered employees within the meaning of Code Section 162(m)(3). Any delegation pursuant to this Section shall specify the
duration of the delegation and limit the amount of Awards that may be granted pursuant thereto. 

        Section 3.06.    Limitations on Liability.    No director, officer, or agent of the Company shall be liable for
any action, omission, or decision under the Plan that is taken, made, or omitted in good faith. 

ARTICLE IV

ELIGIBILITY  

        The Committee shall, from time to time, designate those persons eligible to receive Awards under the Plan from among employees and directors of the Company or any
Subsidiary. The Committee may grant more than one Award to any Participant. 

ARTICLE V

SHARES SUBJECT TO AWARDS  

        Section 5.01.    Shares Available    The only shares subject to Awards shall be the Company's authorized, but
unissued, or reacquired Shares. Upon the expiration or termination, in whole or in part, for any reason of an outstanding Award or any portion thereof that shall not have vested or shall not have been
exercised in full, or upon forfeiture of any Share of Restricted Stock, or upon the surrender of Shares as payment for an Option, any Shares subject to the Award that have not been acquired by the
Participant or that are forfeited by the Participant shall again become available for the granting of additional Awards. 

        Section 5.02.    Aggregate Share Limit.    Subject to adjustment as provided in Section 5.05 and any
limitations specified elsewhere in the Plan, the maximum number of Shares cumulatively available for issuance under the Plan shall not exceed the sum of the following: 

        (a)   500,000
Shares, plus 

        (b)   any
Shares available for Options under the Prior Plan that are not subject to outstanding Options under the Prior Plan upon its January 31, 2008 termination; plus 

        (c)   any
Shares covered by an Award or an option under the Prior Plan that are forfeited or remain unpurchased or undistributed upon termination or expiration of the Award or
option under the Prior Plan, plus 

        (d)   any
Shares exchanged by a Participant as full or partial payment to the Company of the Exercise Price of an Option under the Plan; plus 

        (e)   at
the beginning of each calendar year during the term of the Plan, beginning January 1, 2009, an additional number of Shares equal to the lesser of
(i) 500,000 Shares or (ii) the number of Shares that would result in the number of Shares available for Awards as of such date being equal to 4% of the total number of the Company's
Shares outstanding as of the immediately preceding December 31, on a fully-diluted basis. 

        Section 5.03.    Limitation Applicable to Specific Awards.    The maximum number of Shares that may be
delivered pursuant to Incentive Stock Options granted under the Plan is 500,000 Shares. The only limitations on the number of Shares available for Non-Qualified Stock Options, Stock
Appreciation Rights, and Restricted Stock Awards shall be those specified in Sections 5.02 and 5.04. 

        Section 5.04.    Annual Limitations on Awards to Any Participant.    The maximum number of Shares subject to
all Awards granted in any calendar year to a Participant shall be limited to 150,000. 

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        Section 5.05.    Adjustments Upon Recapitalization or Reorganization.    If the outstanding Shares are changed
into, or exchanged for, a different number or kind of shares or securities of the Company through any capital reorganization or reclassification, or if the number of outstanding Shares is changed
through a stock split or stock dividend, an appropriate adjustment shall be made by the Committee in the number, kind, and/or Exercise Price with respect to Shares as to which Awards may be granted
under the Plan. A corresponding adjustment shall likewise be made in the number, kind, and/or Exercise Price for Shares with respect to which there are unexercised outstanding Awards. Any such
adjustment in an outstanding Award, however, shall be made without change in the total price applicable to the unexercised portion of the Award but with a corresponding adjustment in the price for
each Share covered by the Award. In making such adjustments, or in determining that no such adjustments are necessary, the Committee may rely upon the advice of counsel and accountants to the Company,
and the good faith determination of the Committee shall be final, conclusive, and binding. No fractional shares of stock shall be issued or issuable under the Plan on account of any such adjustment.
No adjustment shall be made pursuant to this Section, if it would cause an Award to become subject to Code Section 409A. 

ARTICLE VI

AWARDS  

        Section 6.01.    Grant of Awards.    Awards authorized under this Article VI may be granted pursuant to
another incentive program that incorporates by reference the terms and conditions of this Plan. Awards may be granted singly or in combination or tandem with other Awards. Awards may also be granted
in replacement of, or as substitution for, other awards granted by the Company, whether or not such other awards were granted under this Plan. Without limiting the foregoing, if a Participant pays all
or part of the Exercise Price or taxes associated with an Award by the transfer of Shares or the surrender of all or part of an Award (including the Award being exercised), the Committee may, in its
discretion, grant a new Award to replace the Shares that were transferred or the Award that was surrendered. The Company may assume awards granted by an organization acquired by the Company or may
grant Awards in replacement of, or in substitution for, any such awards. 

        Section 6.02.    Types of Awards.    Awards under the Plan shall consist of the following: 

        (a)    Stock Appreciation Rights.    A right to receive a payment, in cash or Shares, equal to the excess of
(A) the Fair Market Value of a specified number of Shares on the date the right is exercised over (B) the Fair Market Value of the same number of Shares on the date the right is granted,
all as determined by the Committee ("Stock Appreciation Right" or "SAR"). The right may be conditioned upon the occurrence of certain events, such as a change in control, or may be unconditional, as
determined by the Committee. No Stock Appreciation Right shall be exercisable after the tenth (10th) anniversary of its grant. 

        (b)    Restricted Stock Award.    An Award that is made in Restricted Stock. All or part of any Restricted Stock Award
may be subject to conditions, restrictions, and risks of forfeiture, as and to the extent established by the Committee. Such Shares may be either Performance-Based Restricted Stock or Service-Based
Restricted Stock. 

        (c)    Option    A right to purchase a specified number of Shares during a specified period and at a specified
exercise price, all as determined by the Committee. An Option may be an Incentive Stock Option or a Non-Qualified Stock Option. In addition to the terms, conditions, vesting periods, and
restrictions established by the Committee in the Award Agreement, Incentive Stock Options must comply with the requirements of Code Section 422, Section 6.04, and this Article VI. 

        Section 6.03.    Terms and Conditions of Awards; Agreements.    Awards granted under the Plan shall be
evidenced by an Award Agreement executed by the Company and the Participant, which shall 

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contain
such terms and be in such form as the Committee may from time to time approve, subject to the following limitations and conditions: 

        (a)    Grant and Notice of Award.    The date of an Award grant shall, for all purposes, be the date on which the
Board makes the determination granting such an Award. Notice of the determination shall be given to each Participant to whom an Award is granted within a reasonable time after the date of grant. The
grant of an Award shall not obligate the Participant to exercise it. 

        (b)    Number of Shares.    The Award Agreement shall state, as appropriate, the type and total number of Shares
(i) granted as Restricted Stock, (ii) with respect to which Stock Appreciation Rights are granted, and/or (iii) with respect to which Options are granted. 

        (c)    Exercise Price.    The Award Agreement shall state, as applicable, the Exercise Price per share of the Shares
with respect to which Options are issued, the Fair Market Value of Shares with respect to which Stock Appreciation Rights are issued, and the purchase price for any Restricted Stock. The Exercise
Price for an Option shall not be less than its Fair Market Value on the Grant Date. For Incentive Stock Options, the Exercise Price shall satisfy the requirements of Section 6.04 and the
provisions of the Code applicable to incentive stock options. 

        (d)    Exercise and Payment of Exercise Price.    A Participant may exercise a vested Option by (i) giving
written notice to the Company specifying the number of Shares to be purchased and accompanied by payment of the full Exercise Price therefor in cash, by check, or in such other form of lawful
consideration as the Committee may approve, including without limitation and in the sole discretion of the Committee, the transfer by the Participant to the Company of outstanding Shares held by the
Participant in a manner intended to comply with the provisions of Rule 16b-3, if applicable, and
(ii) satisfying any other requirements set forth herein (including, without limitation, the tax withholding requirements of Article VII) or in the applicable Award Agreements. Any Shares
delivered by the Participant in connection with the exercise of an Award must have been owned by the Participant for at least six months as of the date of delivery. Shares used to satisfy the Exercise
Price of an Award shall be valued at their Fair Market Value on the date of exercise. 

        (e)    Restrictions on Grants.    Notwithstanding any other provisions set forth herein or in an Award Agreement, no
Award may be granted under the Plan after January 22, 2018. 

        (f)    Vesting of Awards.    Awards shall vest based on longevity of service and/or other schedules established by the
Committee, as set forth in each Award Agreement. The Committee may grant Awards that are fully vested and exercisable at grant. 

        (g)    Issuance of Shares and Compliance with Securities Laws.    The Company may postpone the issuance and delivery
of certificates representing Shares until (i) the admission of such Shares to listing on any stock exchange on which Shares are then listed and (ii) the completion of such registration
or other qualification of Shares under any state or federal law, rule, or regulation as the Company shall determine to be necessary or advisable, which registration or other qualification the Company
shall use its best efforts to complete; provided, however, a person purchasing or otherwise receiving Shares pursuant to the Plan has no right to require the Company to register the Shares under
federal or state securities laws at any time. Any person purchasing or otherwise receiving Shares pursuant to the Plan may be required to make such representations and furnish such information as may,
in the opinion of counsel for the Company, be appropriate to permit the Company, in light of the existence or non-existence with respect to such Shares of an effective registration under
the Securities Act of 1933, as amended, or any similar state statute, to issue the Shares in compliance with the provisions of those or any comparable acts. 

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        Section 6.04.    Additional Limitations Applicable to Incentive Stock Options.    

        (a)    General.    To the extent that any Award granted pursuant to this Plan contains an Incentive Stock Option, the
limitations and conditions of this Section shall apply to such Incentive Stock Option and the Award Agreement relating thereto in addition to the terms and conditions otherwise specified by the Plan
and the Award Agreement. 

        (b)    Price.    The price of an Incentive Stock Option shall be an amount per share not less than the Fair Market
Value per share of the Shares on the Grant Date. In the case of Incentive Stock Options
granted to an employee of the Company who is a 10% shareholder, the option price shall be an amount per share not less than one hundred ten percent (110%) of the Fair Market Value per share of the
Shares on the Grant Date. 

        (c)    Exercise Period.    Unless terminated earlier pursuant to other terms and provisions of the Award Agreement,
the term of each Incentive Stock Option shall expire within the period prescribed in the Agreement relating thereto, which shall not be more than five years from the Grant Date, if the Participant is
a 10% shareholder (as defined in Code Section 422(b)(6)), and not more than ten years from the Grant Date, if the Participant is not a 10% shareholder (as defined in Code
Section 422(b)(6)). 

        (d)    Limitation on Grants.    No Incentive Stock Option shall be granted under this Plan after January 22,
2018. 

        (e)    Limitation on Transferability.    No Incentive Stock Option shall be assignable or transferable except by will
or under the laws of descent and distribution. During the lifetime of a Participant, an Incentive Stock Option shall be exercisable only by the Participant and may not be transferred or assigned. 

        (f)    Maximum Exercise Rule.    The aggregate Fair Market Value (determined as of the Grant Date) of the Shares with
respect to which Incentive Stock Options are exercisable for the first time by any Participant during any calendar year under this Plan and any other incentive stock option plan (within the meaning of
Code Section 422) of the Company or any parent or subsidiary corporation of the Company shall not exceed $100,000. 

        (g)    Other Code Limits.    Incentive Stock Options may be granted only to employees of the Company (or a Subsidiary)
that satisfy the other eligibility requirements of the Code. There shall be imposed in any Award Agreement relating to Incentive Stock Options such other terms and conditions as from time to time are
required for the Option be an "incentive stock option" within the meaning of Code Section 422. 

        Section 6.05.    Additional Provisions Related to Restricted Stock.    

        (a)   The
Committee may impose restrictions on Restricted Stock based upon any one or more of the following criteria: (i) the achievement of specific Performance
Targets, (ii) vesting based on period of service with the Company and any of its Subsidiaries, (iii) applicable federal or state securities laws, or (iv) any other basis
determined by the Committee, in its sole discretion. 

        (b)   Notwithstanding
any other provision of this Section to the contrary, for purposes of qualifying grants of Restricted Stock as Performance-Based Compensation, the
Committee shall establish restrictions based upon the achievement of pre-established Performance Targets. The specific Performance Targets that must be satisfied for the Period of
Restriction to lapse or terminate shall be established the Committee on or before the latest date permissible to enable the Restricted Stock to qualify as Performance-Based Compensation. In granting
Restricted Stock that is intended to qualify as Performance-Based Compensation, the Committee shall follow any procedures that it determines to be necessary, advisable, or appropriate to ensure such
qualification. 

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Section 6.06.    Termination of Awards.  

        (a)   Each
Award granted under the Plan shall set forth a termination date, which shall be not later than ten years from the Grant Date, subject to earlier termination as set
forth in this Plan or the Award Agreement. 

        (b)   The
Committee shall establish the effect of a Separation from Service on the rights and benefits under each Award and in so doing may make distinctions based upon, among
other factors, the cause of termination and type of Award. A Participant's Separation from Service as a Director shall not, unless otherwise expressly provided by the Committee, accelerate or
otherwise increase the number of Shares subject to an Award. Following Separation from Service, an Award may be exercised only in accordance with the applicable Award Agreement and, unless otherwise
expressly provided by the Committee, only with respect to that number of Shares for which the Award could have been exercised by the Participant on the date of Severance from Service. 

        (c)   The
Committee may cancel any unexpired or unpaid Awards at any time, if the Participant is not in compliance with all applicable provisions of this Plan or with any
Award Agreement, or if the Participant, whether or not he is currently employed by an Employer, engages in any of the following activities without the prior written consent of the Employer: 

        (1)   directly
or indirectly renders services to or for an organization, or engages in a business, that is, in the judgment of the Committee, in competition with the Employer;
or 

        (2)   discloses
to anyone outside of the Employer, or uses for any purpose other than the Employer's business, any confidential or proprietary information or material relating
to the Employer, whether acquired by the Participant during or after employment with the Employer. 

The
Committee may, in its discretion and as a condition to the exercise of an Award, require a Participant to acknowledge in writing that he is in compliance with all applicable provisions of the Plan
and of any Award Agreement and has not engaged in any activities referred to in clauses (1) and (2) above. 

        (d)   Subject
to Section 6.09, (i) upon the dissolution, liquidation, or sale of all or substantially all of the business, properties, and assets of the Company,
(ii) upon any reorganization, merger, consolidation, sale, or exchange of securities in which the Company does not survive, (iii) upon any sale, reorganization, merger, consolidation, or
exchange of securities in which the Company does survive and any of the Company's shareholders have the opportunity to receive cash, securities of another corporation, partnership, or limited
liability company and/or other property in exchange for their capital stock of the Company, or (iv) upon any acquisition by any person or group (as defined in Section 13d of the Exchange
Act) of beneficial ownership of more than 50% of the then outstanding Shares (each of the events described in clauses (i), (ii), (iii) or (iv) is referred to herein as an
"Extraordinary Event"), the Plan and each outstanding Award shall terminate, subject to any provision that has been made by the Committee through a plan of reorganization or otherwise for the
substitution, assumption, settlement, or other continuation of the Awards. If Awards are to terminate (with no substitution, assumption, settlement, or other continuation) in such circumstances, each
Participant shall have the right, by giving notice at least ten days before the effective date of the Extraordinary Event ("Effective Date"), to exercise on or before the Effective Date, in whole or
in part, any unexpired Award issued to the Participant, to the extent that the Award is vested and exercisable as of the Effective Date. 

        Section 6.07.    Rights as a Shareholder.    Unless otherwise provided by the Board or the Committee, a
Participant shall have rights as a shareholder with respect to Shares covered by an Award, including voting rights or rights to dividends, only upon the date of issuance of a certificate to him and,
if payment is required, only after payment if full has been made for such Shares. 

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        Section 6.08.    Limits On Exercise and Transfer.    

        (a)   Except
as expressly provided in (or pursuant to) Subsection (b), by applicable law, or by the Award Agreement, as the same may be amended: 

        (1)   all
Awards are non-transferable and shall not be subject in any manner to sale, transfer, anticipation, alienation, assignment, pledge, encumbrance, or
charge; 

        (2)   Awards
must be exercised only by the Participant; and 

        (3)   amounts
payable or shares issuable pursuant to an Award must be delivered only to (or for the account of) the Participant. 

In
addition, the Shares shall be subject to the restrictions, if any, imposed in the applicable Award Agreement. 

        (b)   The
exercise and transfer restrictions in Subsection (a) shall not apply to: 

        (1)   transfers
to the Company; 

        (2)   the
designation of a beneficiary to receive benefits if the Participant dies or, if the Participant has died, transfers to or exercises by the Participant's beneficiary,
or, in the absence of a validly designated beneficiary, transfers by will or the laws of descent and distribution; or 

        (3)   if
the Participant has suffered a disability, transfers or exercises on behalf of the Participant by the Participant's duly authorized legal representative in accordance
with the applicable Award Agreement. 

        Section 6.09.    Acceleration of Awards.    

        (a)   Notwithstanding
the provisions of Article VI or any provision to the contrary contained in a particular Award Agreement, the Committee, in its sole discretion,
may accelerate the vesting and exercisability of all or any portion of any Award then outstanding. The decision by the Committee to accelerate an Award or to decline to accelerate an Award shall be
final. In the event of the acceleration of the exercisability of Awards as the result of a decision by the Committee pursuant to this Section, each outstanding Award so accelerated shall be
exercisable for a period from and after the date of such acceleration and upon such other terms and conditions as the Committee may determine in its sole discretion, provided that such terms and
conditions (other than terms and conditions relating solely to the acceleration of exercisability and the related termination of an Award) may not materially adversely affect the rights of any
Participant without the consent of that Participant. Any outstanding
Award that has not been exercised by the holder at the end of such period shall terminate automatically at that time. 

        (b)   If
the vesting of an Award has been accelerated in anticipation of an event, and the Committee or the Board later determines that the event will not occur, the Committee
may rescind the effect of the acceleration as to any then outstanding and unexercised or otherwise unvested Awards. 

        Section 6.10.    Substitute Awards.    If the Company at any time should succeed to the business of another
entity through a merger, consolidation, corporate reorganization or exchange, or through the acquisition of stock or assets of such entity or its subsidiaries or otherwise, Awards may be granted under
the Plan to option holders of such entity or its subsidiaries, in substitution for options to purchase shares in such entity held by them at the time of succession. The Committee, in its sole and
absolute discretion, shall determine the extent to which such substitute Awards shall be granted (if at all), the person or persons to receive such substitute Awards (who need not be all option
holders of 

10

 

such
entity), the number of Awards to be received by each such person, the exercise price of such Award, and the other terms and conditions of such substitute Awards. 

ARTICLE VII

WITHHOLDING OF TAXES  

        The Company (or a Subsidiary) may deduct and withhold from the wages, salary, bonus, and other income paid by the Company (or Subsidiary) to the Participant the
requisite tax upon the amount of taxable income, if any, recognized by the Participant in connection with the exercise in whole or in part of any Award, the lapse of restrictions with respect to
Restricted Stock, or the sale of the Shares issued to the Participant upon the exercise of an Award, as may be required from time to time under any federal or state tax laws and regulations. This
withholding of tax shall be made from the Company's (or Subsidiary's) concurrent or next payment of wages, salary, bonus, or other income to the Participant or by payment to the Company by the
Participant of the required withholding tax, as the Committee may determine; provided, however, that, in the sole discretion of the Committee, the Participant may pay such tax by reducing the number
of Shares or amount of cash issued upon exercise of an Award (for which purpose such Shares shall be valued at Fair Market Value at the time of exercise). Notwithstanding the foregoing, the Company
shall not be obligated to issue certificates representing the Shares to be acquired through the exercise of an Award, if the Participant fails to provide the Company with adequate assurance that the
Participant will pay such amounts to the Company as required herein. Participants shall notify the Company in writing of any amounts included as income in the Participants' federal income tax returns
in connection with an Award. Any Shares or cash withheld by the Company to satisfy a Participant's withholding tax obligation in connection with an Award shall not exceed the number of Shares or
amount of cash necessary to satisfy the minimum required levels of withholding under applicable law. 

ARTICLE VIII

COMPLIANCE WITH LAWS  

        Section 8.01.    General.    The Plan, the granting and vesting of Awards under the Plan, the offer, issuance,
and delivery of the Shares, and the payment of money under the Plan or under Awards are subject to compliance with all applicable federal and state laws, rules, and regulations (including but not
limited to state and federal securities laws and federal margin requirements) and to such approvals by any listing, regulatory, or governmental authority as may, in the opinion of counsel for the
Company, be necessary or advisable in connection therewith. A person acquiring any securities under the Plan shall, if requested by the Company, provide such assurances and representations to the
Company as the Committee may deem necessary or desirable to assure compliance with all applicable legal and accounting requirements. 

        Section 8.02.    Compliance with Securities Laws.    No Participant shall sell, pledge, or otherwise transfer
Shares acquired pursuant to an Award or any interest in such Shares except in accordance with the express terms of the Plan and the applicable Award Agreement. Any attempted transfer in violation of
this Section shall be void and of no effect. Without in any way limiting the provisions set forth above, no Participant shall make any disposition of all or any portion of Shares acquired or to be
acquired pursuant to an Award, except in compliance with all applicable federal and state securities laws. Notwithstanding anything else herein to the contrary, the Company has no obligation to
register the Shares or file any registration statement under either federal or state securities laws. 

ARTICLE IX

EFFECTIVENESS AND TERMINATION OF THE PLAN  

        The Plan shall terminate at the close of business on January 22, 2018, provided, however, the Board may, in its sole discretion, terminate the Plan at any
prior time. Subject to Section 6.06 and 6.09, 

11

 

no
such termination shall in any way affect any Award then outstanding or the Committee's authority hereunder with respect to such Award. 

ARTICLE X

AMENDMENT OF PLAN  

        Subject to Article VI, the Committee may make such amendments to the Plan and/or an Award Agreement as it shall deem advisable; provided, however, except
as permitted by Article VI, no
amendment shall materially adversely affect any Award then outstanding without the written consent of the affected Participant. Adjustments contemplated by Section 5.05 shall not be deemed to
be amendments for purposes of the foregoing. Shareholder approval for any amendment shall be required only to the extent required under applicable law, including Code Section 162(m) and Code
Section 422 and other provisions of the Code applicable to incentive stock options, or to the extent deemed necessary or advisable by the Board. 

ARTICLE XI

INDEMNIFICATION  

        In addition to such other rights of indemnification as they may have as members of the Board, the members of the Committee shall be indemnified by the Company to
the fullest extent permitted by law against reasonable expenses, including attorneys' fees, actually and necessarily incurred in connection with the defense of any action, suit, or proceeding, or in
connection with any appeal thereof, to which they or any of them may be a party by reason of any act or failure to act under or in connection with the Plan or any Award, and against all amounts paid
by them in satisfaction of a judgment in any such action, suit, or proceeding except in relation to matters as to which it shall be adjudged in such action, suit, or proceeding that such Committee
member is not entitled to indemnification under applicable law; provided, however, within 60 days after institution of any such action, suit, or proceeding, such Committee member shall in
writing offer the Company the opportunity, at the Company's expense, to handle and defend the same, and such Committee member shall cooperate with and assist the Company in the defense of any such
action, suit, or proceeding. The Company shall not be obligated to indemnify any Committee member with regard to the settlement of any action, suit, or proceeding to which the Company did not give its
prior written consent. 

ARTICLE XII

NOT AN EMPLOYMENT OR CONSULTING AGREEMENT  

        Nothing contained in the Plan or in any Award Agreement shall confer, intend to confer, or imply any right of employment or right to continued employment by, or
rights to a continued relationship with, the Company (or any affiliate) in favor of any Participant or limit the ability of the Company (or any affiliate) to terminate, with or without cause, in its
sole and absolute discretion, the employment of any Participant, subject to the terms of any written employment to which a Participant is a party. In addition, nothing contained in the Plan or in any
Award Agreement shall preclude any lawful action by the Company or the Board. Status as an eligible person under the Plan shall not be construed as a commitment that any Award will be granted to the
eligible person. 

ARTICLE XIII

MISCELLANEOUS  

        Section 13.01.    Non-Exclusivity of Plan.    Nothing in the Plan shall limit or be deemed to limit
the authority of the Board or the Committee to grant awards or authorize any other compensation, with or without reference to the Shares, under any other plan or independent authority. 

12

 

        Section 13.02.    No Restriction on Corporate Powers.    The existence of the Plan and the Awards granted
hereunder shall not affect or restrict in any way the right or power of the Board or the shareholders of the Company to make or authorize any adjustment, recapitalization, reorganization or other
change in the Company's capital structure or its business, any merger or consolidation of the Company, any issue of bonds, debentures, preferred or prior preference stocks ahead of or affecting the
Company's capital stock or the rights thereof, the dissolution or liquidation of the Company or any sale or transfer of all or any part of its assets or business, or any other corporate act or
proceeding. 

        Section 13.03.    No Fiduciary Duties.    Neither the provisions of this Plan (or of any related documents),
nor the creation or adoption of this Plan, nor any action taken pursuant to the provisions of this Plan shall create, or be construed to create, a trust of any kind or a fiduciary relationship between
the Company and any Participant or other person. 

13Filed by Automated Filing Services Inc. (604) 609-0244 - Royal Mines And Minerals Corp. - Exhibit 10.1

ROYAL MINES AND MINERALS CORP. 

2008 STOCK INCENTIVE PLAN 

Established February 1, 2008 

ARTICLE 1. 
THE PLAN 

1.1        Title 

This plan is entitled the "2008 Stock Incentive Plan" (the
"Plan") of Royal Mines And Minerals Corp., a Nevada corporation (the "Company").

1.2        Purpose

The purpose of the Plan is to enhance the long-term stockholder
value of the Company by offering opportunities to directors, officers, employees
and eligible consultants of the Company and any Related Company, as defined
below, to acquire and maintain stock ownership in the Company in order to give
these persons the opportunity to participate in the Company's growth and
success, and to encourage them to remain in the service of the Company or a
Related Company.

ARTICLE 2. 
DEFINITIONS

2.1        Definitions

The following terms will have the following meanings in the
Plan:

"Award" means any Option granted under this Plan.

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

"Cause," unless otherwise defined in the
instrument evidencing the award or in an employment or services agreement
between the Company or a Related Company and a Participant, means a material
breach of the employment or services agreement, dishonesty, fraud, misconduct,
unauthorized use or disclosure of confidential information or trade secrets, or
conviction or confession of a crime punishable by law (except minor violations),
in each case as determined by the Plan Administrator, and its determination
shall be conclusive and binding.

"Code" means the Internal Revenue Code of 1986, as
amended from time to time.

"Common Stock" means the shares of common stock, par
value $0.001 per share, of the Company.

“Consultant” means any consultant, agent, advisor or
independent contractor who provides services to the Company or a Related
Company, but does not include an officer or director of the Company. 

"Consultant Participant" means a Participant who is
defined as a Consultant Participant in Article 5.

"Corporate Transaction," unless otherwise defined in the
instrument evidencing the Award or in a written employment or services agreement
between the Company or a Related Company and a Participant, means consummation
of either:

	(a) 	
      a merger or consolidation of the Company with or into any
      other corporation, entity or person or

1

	(b) 	
      a sale, lease, exchange or other transfer in one
      transaction or a series of related transactions of all or substantially
      all the Company's outstanding securities or all or substantially all the
      Company's assets; provided, however, that a Corporate Transaction shall
      not include a Related Party Transaction.

"Disability," unless otherwise defined by the
Plan Administrator, means a mental or physical impairment of the Participant
that is expected to result in death or that has lasted or is expected to last
for a continuous period of twelve (12) months or more and that causes the
Participant to be unable, in the opinion of the Company, to perform his or her
duties for the Company or a Related Company and to be engaged in any substantial
gainful activity.

"Employment Termination Date" means, with respect to a
Participant, the first day upon which the Participant no longer has an
employment or service relationship with the Company or any Related Company.

"Exchange Act" means the Securities Exchange Act of
1934, as amended.

"Fair Market Value" means the per share value of the
Common Stock determined as follows:

	(a) 	
      if the Common Stock is listed on an established stock
      exchange or exchanges or the NASDAQ National Market, the lesser of (i) the
      closing price per share on the date immediately preceding the date of the
      granting of the options; or (ii) the average closing price per share
      during the ten (10) trading days immediately preceding such date on the
      principal exchange on which it is traded or as reported by
  NASDAQ;

	 	 
	(b) 	
      if the Common Stock is not then listed on an exchange or
      the NASDAQ National Market, but is quoted on the NASDAQ Capital Market,
      the OTC Bulletin Board service or the Pink Sheets electronic quotation
      service, the lesser of (i) the closing price per share on the date
      immediately preceding the date of the granting of the options; or (ii) the
      average of the closing bid and ask prices per share for the Common Stock
      as quoted by NASD, the OTC Bulletin Board or the Pink Sheets, as the case
      may be, during the ten (10) trading days immediately preceding such date;
      or

	 	 
	(c) 	
      if there is no such reported market for the Common Stock
      for the date in question, then an amount determined in good faith by the
      Plan Administrator.

"Grant Date" means the date on which the Plan
Administrator completes the corporate action relating to the grant of an Award
or such later date specified by the Plan Administrator, and on which all
conditions precedent to the grant have been satisfied, provided that conditions
to the exercisability or vesting of Awards shall not defer the Grant Date.

"Incentive Stock Option" means an Option granted with
the intention, as reflected in the instrument evidencing the Option, that it
qualify as an "incentive stock option" as that term is defined in Section 422 of
the Code.

"Non-Qualified Stock Option" means an Option other than
an Incentive Stock Option. 

"Option" means the right to purchase Common Stock
granted under Article 7. 

"Option Expiration Date" has the meaning set forth in
Article 7.6.

"Option Term" has the meaning set forth in Article
7.3.

"Participant" means the person to whom an Award is
granted and who meets the eligibility requirements imposed by Article 5,
including Consultant Participants, as defined in Article 5.

2

"Plan Administrator" has the meaning set forth in
Article 3.1.

"Related Company" means any entity that, directly or
indirectly, is in control of or is controlled by the Company.

"Related Party Transaction" means: (a) a merger or
consolidation of the Company in which the holders of shares of Common Stock
immediately prior to the merger hold at least a majority of the shares of Common
Stock in the Successor Corporation immediately after the merger; (b) a sale,
lease, exchange or other transaction in one transaction or a series of related
transactions of all or substantially all the Company's assets to a wholly-owned
subsidiary corporation; (c) a mere reincorporation of the Company; or (d) a
transaction undertaken for the sole purpose of creating a holding company that
will be owned in substantially the same proportion by the persons who held the
Company's securities immediately before such transaction.

"Securities Act" means the Securities Act of 1933, as
amended.

"Successor Corporation" has the meaning set forth in
Article 11.3(a) .

"Vesting Commencement Date" means the Grant Date or such
other date selected by the Plan Administrator as the date from which the Option
begins to vest for purposes of Article 7.4.

ARTICLE 3. 
ADMINISTRATION

3.1        Plan
Administrator 

The Plan shall be administered by the Board or a committee
appointed by, and consisting of two or more members of, the Board (the "Plan
Administrator"). If and so long as the Common Stock is registered under Section
12(b) or 12(g) of the Exchange Act, the Board shall consider in selecting the
members of any committee acting as Plan Administrator, with respect to any
persons subject or likely to become subject to Section 16 of the Exchange Act,
the provisions regarding (a) "outside directors" as contemplated by Section
162(m) of the Code and (b) "non-employee directors" as contemplated by Rule
16b-3 under the Exchange Act. Committee members shall serve for such term as the
Board may determine, subject to removal by the Board at any time. At any time
when no committee has been appointed to administer the Plan, then the Board will
be the Plan Administrator. 

3.2        Administration
and Interpretation by Plan Administrator 

Except for the terms and conditions explicitly set forth in the
Plan, the Plan Administrator shall have exclusive authority, in its discretion,
to determine all matters relating to Awards under the Plan, including the
selection of individuals to be granted Awards, the type of Awards, the number of
shares of Common Stock subject to an Award, all terms, conditions, restrictions
and limitations, if any, of an Award and the terms of any instrument that
evidences the Award. The Plan Administrator shall also have exclusive authority
to interpret the Plan and the terms of any instrument evidencing the Award and
may from time to time adopt and change rules and regulations of general
application for the Plan's administration. The Plan Administrator's
interpretation of the Plan and its rules and regulations, and all actions taken
and determinations made by the Plan Administrator pursuant to the Plan, shall be
conclusive and binding on all parties involved or affected. The Plan
Administrator may delegate administrative duties to such of the Company's
officers as it so determines.

3

ARTICLE 4.
STOCK SUBJECT TO THE PLAN 

4.1        Authorized
Number of Shares 

Subject to adjustment from time to time as provided in this
Article 4.1 and in Article 11.1, the maximum aggregate number of shares of
Common Stock available for issuance under the Plan shall be Four Million Six
Hundred Thousand (4,600,000) shares. The maximum aggregate number of shares
of the Company’s Common Stock that may be optioned and sold under the Plan will
be increased effective the first day of each of the Company’s fiscal quarters,
beginning with the fiscal quarter commencing May 1, 2008, by an amount equal to
the lesser of: 

	(1) 	
      10% of the total increase in the number of shares of
      Common Stock outstanding during the previous fiscal quarter; or

	 	 
	(2) 	
      a lesser number of shares of Common Stock as may be
      determined by the Board.

4.2        Reuse of
Shares 

Any shares of Common Stock that have been made subject to an
Award that cease to be subject to the Award (other than by reason of exercise or
settlement of the Award to the extent it is exercised for or settled in shares)
shall again be available for issuance in connection with future grants of Awards
under the Plan. In the event shares issued under the Plan are reacquired by the
Company pursuant to any forfeiture provision or right of repurchase, such shares
shall again be available for the purposes of the Plan; provided, however, that
the maximum number of shares that may be issued upon the exercise of Incentive
Stock Options shall equal the share number stated in Article 4.1, subject to
adjustment from time to time as provided in Article 11.1; and provided, further,
that for purposes of Article 4.3, any such shares shall be counted in accordance
with the requirements of Section 162(m) of the Code.

ARTICLE 5. 
ELIGIBILITY 

5.1        Plan
Eligibility 

An Award may be granted to any officer, director or employee of
the Company or a Related Company that the Plan Administrator from time to time
selects. An Award may also be granted to any consultant, agent, advisor or
independent contractor who provides services to the Company or any Related
Company (a “Consultant Participant”), so long as such Consultant Participant:
(a) is a natural person; (b) renders bona fide services that are not in
connection with the offer and sale of the Company's securities in a
capital-raising transaction; and (c) does not directly or indirectly promote or
maintain a market for the Company's securities.

ARTICLE 6.
 AWARDS 

6.1        Form and
Grant of Awards 

The Plan Administrator shall have the authority, in its sole
discretion, to determine the type or types of Awards to be granted under the
Plan. Awards may be granted singly or in combination.

4

6.2        Settlement
of Awards 

The Company may settle Awards through the delivery of shares of
Common Stock, the granting of replacement Awards or any combination thereof as
the Plan Administrator shall determine. Any Award settlement, including payment
deferrals, may be subject to such conditions, restrictions and contingencies as
the Plan Administrator shall determine. The Plan Administrator may permit or
require the deferral of any Award payment, subject to such rules and procedures
as it may establish, which may include provisions for the payment or crediting
of interest, or dividend equivalents, including converting such credits into
deferred stock equivalents.

ARTICLE 7. 
AWARDS OF OPTIONS 

7.1        Grant of
Options 

The Plan Administrator shall have the authority, in its sole
discretion, to grant Options to Participants as Incentive Stock Options or as
Non-Qualified Stock Options, which shall be appropriately designated. 

7.2        Option
Exercise Price 

The exercise price for shares purchased under an Option shall
be as determined by the Plan Administrator, provided that: 

	(a) 	
      the exercise price for Options granted to Participants
      other than Consultant Participants shall not be less than the minimum
      exercise price required by Article 8.3 with respect to Incentive Stock
      Options and shall not be less than 75% of the Fair Market Value of the
      Common Stock on the Grant Date with respect to Non-Qualified Stock
      Options;

	 	 
	(b) 	
      the exercise price for Options granted to Consultant
      Participants shall not be less than 75% of the Fair Market Value of the
      Common Stock on the Grant Date.

7.3        Term of
Options 

Subject to earlier termination in accordance with the terms of
the Plan and the instrument evidencing the Option, the maximum term of an Option
(the "Option Term") shall be as established for that Option by the Plan
Administrator or, if not so established, shall be ten (10) years from the Grant
Date.

7.4        Exercise of
Options 

The Plan Administrator shall establish and set forth in each
instrument that evidences an Option the time at which, or the installments in
which, the Option shall vest and become exercisable, any of which provisions may
be waived or modified by the Plan Administrator at any time.

The Plan Administrator, in its sole discretion, may adjust the
vesting schedule of an Option held by a Participant who works less than
"full-time" as that term is defined by the Plan Administrator or who takes a
Company-approved leave of absence.

To the extent an Option has vested and become exercisable, the
Option may be exercised in whole or from time to time in part by delivery to the
Company of a written stock option exercise agreement or notice, in a form and in
accordance with procedures established by the Plan Administrator, setting forth
the number of shares with respect to which the Option is being exercised, the
restrictions imposed on the shares purchased under such exercise agreement, if
any, and such representations and agreements as may be required by the Plan
Administrator, accompanied by payment in full as described in Article 7.5. An
Option may be exercised only for whole shares and may not be exercised for less
than a reasonable number of shares at any one time, as determined by the Plan
Administrator.

5

7.5        Payment
of Exercise Price 

The exercise price for shares purchased under an Option shall
be paid in full to the Company by the delivery of consideration equal to the
product of the Option exercise price and the number of shares purchased. Such
consideration must be paid before the Company will issue the shares being
purchased and must be delivered in the form of a check or bank draft or other
method of payment or some combination thereof as may be acceptable to the Plan
Administrator for that purchase.

7.6        Post-Termination
Exercises 

The Plan Administrator shall establish and set forth, in each
instrument that evidences an Option, whether the Option shall continue to be
exercisable, and the terms and conditions of such exercise, if the Participant
ceases to be employed by, or to provide services to, the Company or a Related
Company, which provisions may be waived or modified by the Plan Administrator at
any time. If not so established in the instrument evidencing the Option, the
Option shall be exercisable according to the following terms and conditions,
which may be waived or modified by the Plan Administrator at any time:

	(a) 	 Except as otherwise set forth in this Article
        7.6, any portion of an Option that is not vested and exercisable on the
        Employment Termination Date shall expire on such date.

	 	 	 
	(b) 	 Any portion of an Option that is vested and
        exercisable on the Employment Termination Date shall expire on the earliest
        to occur of:

	 	 	 
		(i) 	 if the Participant's Employment Termination Date occurs
        by reason of retirement, resignation or for any other reasons other than
        for Cause, Disability or death, the day which is thirty (30) days after
        such Employment Termination Date;

	 	 	 
		(ii) 	 if the Participant's Employment Termination Date occurs
        by reason of Disability or death, the day which is six (6) months after
        such Employment Termination Date; and

	 	 	 
		(iii) 	 the last day of the Option Term (the "Option Expiration
        Date").

	 	 	 
		 Notwithstanding the foregoing, if the Participant
        dies after his or her Employment Termination Date, but while an Option
        is otherwise exercisable, the portion of the Option that is vested and
        exercisable on such Employment Termination Date shall expire upon the
        earlier to occur of: (A) the Option Expiration Date, and (B) the day which
        is six (6) months after the date of death, unless the Plan Administrator
        determines otherwise.

	 	 	 
		 Also notwithstanding the foregoing, in case
        of termination of the Participant's employment or service relationship
        for Cause, all Options granted to that Participant shall automatically
        expire upon first notification to the Participant of such termination,
        unless the Plan Administrator determines otherwise. If a Participant's
        employment or service relationship with the Company is suspended pending
        an investigation of whether the Participant shall be terminated for Cause,
        all the Participant's rights under any Option shall likewise be suspended
        during the period of investigation. If any facts that would constitute
        termination for Cause are discovered after the Participant's relationship
        with the Company or a Related Company has ended, any Option then held
        by the Participant may be immediately terminated by the Plan Administrator,
        in its sole discretion.

	 	 	 
	(c) 	 Unless the Plan Administrator determines otherwise,
        upon a termination of the Participant’s status as an employee, officer,
        director or Consultant of the Company or any Related Company (the “Original
        Position”), other than a termination for Cause, death or Disability,
        the Participant shall not be deemed to have ceased to be employed by or
        to have ceased providing services to the Company or any Related Company,
        provided that the Participant acts as an employee, officer, director or
        Consultant of the Company or a Related Company eligible to receive an

6

		
      Award under the provisions of Article 5, in another
      capacity, immediately upon the termination of the Original
  Position.

	 	 
	(d) 	
      The effect of a Company-approved leave of absence on the
      application of this Article 7 shall be determined by the Plan
      Administrator, in its sole discretion.

	 	 
	(e) 	
      If a Participant's employment or service relationship
      with the Company or a Related Company terminates by reason of Disability
      or death, the Option shall become fully vested and exercisable for all the
      shares subject to the Option. Such Option shall remain exercisable for the
      time period set forth in this Article 7.6.

ARTICLE 8.
INCENTIVE STOCK OPTION LIMITATIONS

Notwithstanding any other provisions of the Plan, and to the
extent required by Section 422 of the Code, Incentive Stock Options shall be
subject to the following additional terms and conditions:

8.1        Dollar
Limitation 

To the extent the aggregate Fair Market Value (determined as of
the Grant Date) of Common Stock with respect to which Incentive Stock Options
are exercisable for the first time during any calendar year (under the Plan and
all other stock option plans of the Company) exceeds $100,000, such portion in
excess of $100,000 shall be treated as a Non-Qualified Stock Option. In the
event the Participant holds two or more such Options that become exercisable for
the first time in the same calendar year, such limitation shall be applied on
the basis of the order in which such Options are granted.

8.2        Eligible
Employees 

Individuals who are not employees of the Company or one of its
parent corporations or subsidiary corporations may not be granted Incentive
Stock Options.

8.3        Exercise Price

The exercise price of an Incentive Stock Option shall be at
least 100% of the Fair Market Value of the Common Stock on the Grant Date, and
in the case of an Incentive Stock Option granted to a Participant who owns more
than 10% of the total combined voting power of all classes of the stock of the
Company or of its parent or subsidiary corporations (a "Ten Percent
Stockholder"), shall not be less than 110% of the Fair Market Value of the
Common Stock on the Grant Date. The determination of more than 10% ownership
shall be made in accordance with Section 422 of the Code.

8.4        Exercisability

An Option designated as an Incentive Stock Option shall cease
to qualify for favorable tax treatment as an Incentive Stock Option to the
extent it is exercised (if permitted by the terms of the Option) (a) more than
three (3) months after the Employment Termination Date if termination was for
reasons other than death or disability, (b) more than one (1) year after the
Employment Termination Date if termination was by reason of disability, or (c)
after the Participant has been on leave of absence for more than ninety (90)
days, unless the Participant's reemployment rights are guaranteed by statute or
contract.

8.5        Taxation of
Incentive Stock Options 

In order to obtain certain tax benefits afforded to Incentive
Stock Options under Section 422 of the Code, the Participant must hold the
shares acquired upon the exercise of an Incentive Stock Option for two (2) years
after the Grant Date and one (1) year after the date of exercise. A Participant
may be subject to the alternative minimum tax at the time of exercise of an
Incentive Stock Option. The 

7

Participant shall give the Company prompt notice of any
disposition of shares acquired on the exercise of an Incentive Stock Option
prior to the expiration of such holding periods.

8.6        Code
Definitions 

For the purposes of this Article 8, "parent corporation,"
"subsidiary corporation" and "disability" shall have the meanings attributed to
those terms for purposes of Section 422 of the Code.

ARTICLE 9. 
WITHHOLDING 

9.1        General

The Company may require the Participant to pay to the Company
the amount of any taxes that the Company is required by applicable federal,
state, local or foreign law to withhold with respect to the grant, vesting or
exercise of an Award. The Company shall not be required to issue any shares
Common Stock under the Plan until such obligations are satisfied.

9.2        Payment
of Withholding Obligations in Cash or Shares 

The Plan Administrator may permit or require a Participant to
satisfy all or part of his or her tax withholding obligations by: (a) paying
cash to the Company, (b) having the Company withhold from any cash amounts
otherwise due or to become due from the Company to the Participant, (c) having
the Company withhold a portion of any shares of Common Stock that would
otherwise be issued to the Participant having a value equal to the tax
withholding obligations (up to the employer's minimum required tax withholding
rate), or (d) surrendering any shares of Common Stock that the Participant
previously acquired having a value equal to the tax withholding obligations (up
to the employer's minimum required tax withholding rate to the extent the
Participant has held the surrendered shares for less than six months).

ARTICLE 10. 
ASSIGNABILITY

10.1        Assignment

Neither an Award nor any interest therein may be assigned,
pledged or transferred by the Participant or made subject to attachment or
similar proceedings other than by will or by the applicable laws of descent and
distribution, and, during the Participant's lifetime, such Awards may be
exercised only by the Participant. Notwithstanding the foregoing, and to the
extent permitted by Section 422 of the Code, the Plan Administrator, in its sole
discretion, may permit a Participant to assign or transfer an Award or may
permit a Participant to designate a beneficiary who may exercise the Award or
receive payment under the Award after the Participant's death; provided,
however, that any Award so assigned or transferred shall be subject to all the
terms and conditions of the Plan and those contained in the instrument
evidencing the Award.

ARTICLE 11. 
ADJUSTMENTS

11.1        Adjustment of
Shares 

In the event, at any time or from time to time, a stock
dividend, stock split, spin-off, combination or exchange of shares,
recapitalization, merger, consolidation, distribution to stockholders other than
a normal cash dividend, or other change in the Company's corporate or capital
structure, including, 

8

without limitation, a Related Party Transaction, results in:
(a) the outstanding shares of Common Stock, or any securities exchanged therefor
or received in their place, being exchanged for a different number or kind of
securities of the Company or of any other corporation, or (b) new, different or
additional securities of the Company or of any other corporation being received
by the holders of shares of Common Stock of the Company, then the Plan
Administrator shall make proportional adjustments in: (i) the maximum number and
kind of securities subject to the Plan and issuable as Incentive Stock Options
as set forth in Article 4 and the maximum number and kind of securities that may
be made subject to Awards to any individual as set forth in Article 4.3, and
(ii) the number and kind of securities that are subject to any outstanding Award
and the per share price of such securities, without any change in the aggregate
price to be paid therefor. The determination by the Plan Administrator as to the
terms of any of the foregoing adjustments shall be conclusive and binding.
Notwithstanding the foregoing, a dissolution or liquidation of the Company or a
Corporate Transaction shall not be governed by this Article 11.1 but shall be
governed by Articles 11.2 and 11.3, respectively.

11.2        Dissolution
or Liquidation 

To the extent not previously exercised or settled, and unless
otherwise determined by the Plan Administrator in its sole discretion, Options
denominated in units shall terminate immediately prior to the dissolution or
liquidation of the Company. To the extent a forfeiture provision or repurchase
right applicable to an Award has not been waived by the Plan Administrator, the
Award shall be forfeited immediately prior to the consummation of the
dissolution or liquidation.

11.3        Corporate
Transaction 

Options 

	(a) 	
      In the event of a Corporate Transaction, except as
      otherwise provided in the instrument evidencing an Option (or in a written
      employment or services agreement between a Participant and the Company or
      Related Company) and except as provided in subsection (b) below, each
      outstanding Option shall be assumed or an equivalent option or right
      substituted by the surviving corporation, the successor corporation or its
      parent corporation, as applicable (the "Successor Corporation").

	 	 
	(b) 	
      If, in connection with a Corporate Transaction, the
      Successor Corporation refuses to assume or substitute for an Option, then
      each such outstanding Option shall become fully vested and exercisable
      with respect to 100% of the unvested portion of the Option. In such case,
      the Plan Administrator shall notify the Participant in writing or
      electronically that the unvested portion of the Option specified above
      shall be fully vested and exercisable for a specified time period. At the
      expiration of the time period, the Option shall terminate, provided that
      the Corporate Transaction has occurred.

	 	 
	(c) 	
      For the purposes of this Article 11.3, the Option shall
      be considered assumed or substituted for if following the Corporate
      Transaction the option or right confers the right to purchase or receive,
      for each share of Common Stock subject to the Option immediately prior to
      the Corporate Transaction, the consideration (whether stock, cash, or
      other securities or property) received in the Corporate Transaction by
      holders of Common Stock for each share held on the effective date of the
      transaction (and if holders were offered a choice of consideration, the
      type of consideration chosen by the holders of a majority of the
      outstanding shares); provided, however, that if such consideration
      received in the Corporate Transaction is not solely common stock of the
      Successor Corporation, the Plan Administrator may, with the consent of the
      Successor Corporation, provide for the consideration to be received upon
      the exercise of the Option, for each share of Common Stock subject
      thereto, to be solely common stock of the Successor Corporation
      substantially equal in fair market value to the per share consideration
      received by holders of Common Stock in the Corporate Transaction. The
      determination of such substantial equality of value of consideration shall
      be made by the Plan Administrator and its determination shall be
      conclusive and binding.

9

	(d) 	
      All Options shall terminate and cease to remain
      outstanding immediately following the Corporate Transaction, except to the
      extent assumed by the Successor Corporation.

11.4        Further
Adjustment of Awards 

Subject to Articles 11.2 and 11.3, the Plan Administrator shall
have the discretion, exercisable at any time before a sale, merger,
consolidation, reorganization, liquidation or change of control of the Company,
as defined by the Plan Administrator, to take such further action as it
determines to be necessary or advisable, and fair and equitable to the
Participants, with respect to Awards. Such authorized action may include (but
shall not be limited to) establishing, amending or waiving the type, terms,
conditions or duration of, or restrictions on, Awards so as to provide for
earlier, later, extended or additional time for exercise, lifting restrictions
and other modifications, and the Plan Administrator may take such actions with
respect to all Participants, to certain categories of Participants or only to
individual Participants. The Plan Administrator may take such action before or
after granting Awards to which the action relates and before or after any public
announcement with respect to such sale, merger, consolidation, reorganization,
liquidation or change of control that is the reason for such action.

11.5        Limitations

The grant of Awards shall in no way affect the Company's right
to adjust, reclassify, reorganize or otherwise change its capital or business
structure or to merge, consolidate, dissolve, liquidate or sell or transfer all
or any part of its business or assets.

11.6        Fractional
Shares 

In the event of any adjustment in the number of shares covered
by any Award, each such Award shall cover only the number of full shares
resulting from such adjustment.

ARTICLE 12. 
AMENDMENT AND TERMINATION 

12.1        Amendment or
Termination of Plan 

The Board may suspend, amend or terminate the Plan or any
portion of the Plan at any time and in such respects as it shall deem advisable;
provided, however, that to the extent required for compliance with Section 422
of the Code or any applicable law or regulation, stockholder approval shall be
required for any amendment that would: (a) increase the total number of shares
available for issuance under the Plan, (b) modify the class of employees
eligible to receive Options, or (c) otherwise require stockholder approval under
any applicable law or regulation. Any amendment made to the Plan that would
constitute a "modification" to Incentive Stock Options outstanding on the date
of such amendment shall not, without the consent of the Participant, be
applicable to such outstanding Incentive Stock Options but shall have
prospective effect only.

12.2        Term of
Plan 

Unless sooner terminated as provided herein, the Plan shall
terminate ten (10) years after the earlier of the Plan's adoption by the Board
and approval by the stockholders.

12.3        Consent
of Participant 

The suspension, amendment or termination of the Plan or a
portion thereof or the amendment of an outstanding Award shall not, without the
Participant's consent, materially adversely affect any rights under any Award
theretofore granted to the Participant under the Plan. Any change or adjustment
to an outstanding Incentive Stock Option shall not, without the consent of the
Participant, be made in a 

10

manner so as to constitute a "modification" that would cause
such Incentive Stock Option to fail to continue to qualify as an Incentive Stock
Option. Notwithstanding the foregoing, any adjustments made pursuant to Article
11 shall not be subject to these restrictions.

ARTICLE 13. 
GENERAL 

13.1        Evidence
of Awards 

Awards granted under the Plan shall be evidenced by a written
instrument that shall contain such terms, conditions, limitations and
restrictions as the Plan Administrator shall deem advisable and that are not
inconsistent with the Plan.

13.2        No
Individual Rights 

Nothing in the Plan or any Award granted under the Plan shall
be deemed to constitute an employment contract or confer or be deemed to confer
on any Participant any right to continue in the employ of, or to continue any
other relationship with, the Company or any Related Company or limit in any way
the right of the Company or any Related Company to terminate a Participant's
employment or other relationship at any time, with or without Cause.

13.3        Issuance
of Shares 

Notwithstanding any other provision of the Plan, the Company
shall have no obligation to issue or deliver any shares of Common Stock under
the Plan or make any other distribution of benefits under the Plan unless, in
the opinion of the Company's counsel, such issuance, delivery or distribution
would comply with all applicable laws (including, without limitation, the
requirements of the Securities Act), and the applicable requirements of any
securities exchange or similar entity.

The Company shall be under no obligation to any Participant to
register for offering or resale or to qualify for exemption under the Securities
Act, or to register or qualify under state securities laws, any shares of Common
Stock, security or interest in a security paid or issued under, or created by,
the Plan, or to continue in effect any such registrations or qualifications if
made. The Company may issue certificates for shares with such legends and
subject to such restrictions on transfer and stop-transfer instructions as
counsel for the Company deems necessary or desirable for compliance by the
Company with federal and state securities laws.

To the extent the Plan or any instrument evidencing an Award
provides for issuance of stock certificates to reflect the issuance of shares of
Common Stock, the issuance may be effected on a noncertificated basis, to the
extent not prohibited by applicable law or the applicable rules of any stock
exchange.

13.4        No
Rights as a Stockholder 

No Option denominated in units shall entitle the Participant to
any cash dividend, voting or other right of a stockholder unless and until the
date of issuance under the Plan of the shares that are the subject of such
Award.

13.5        Compliance
With Laws and Regulations 

Notwithstanding anything in the Plan to the contrary, the Plan
Administrator, in its sole discretion, may bifurcate the Plan so as to restrict,
limit or condition the use of any provision of the Plan to Participants who are
officers or directors subject to Section 16 of the Exchange Act without so
restricting, limiting or conditioning the Plan with respect to other
Participants. Additionally, in interpreting and applying the provisions of the
Plan, any Option granted as an Incentive Stock Option pursuant to the Plan
shall, to 

11

the extent permitted by law, be construed as an "incentive
stock option" within the meaning of Section 422 of the Code.

13.6        Participants
in Other Countries 

The Plan Administrator shall have the authority to adopt such
modifications, procedures and subplans as may be necessary or desirable to
comply with provisions of the laws of other countries in which the Company or
any Related Company may operate to assure the viability of the benefits from
Awards granted to Participants employed in such countries and to meet the
objectives of the Plan.

13.7        No Trust
or Fund 

The Plan is intended to constitute an "unfunded" plan. Nothing
contained herein shall require the Company to segregate any monies or other
property, or shares of Common Stock, or to create any trusts, or to make any
special deposits for any immediate or deferred amounts payable to any
Participant, and no Participant shall have any rights that are greater than
those of a general unsecured creditor of the Company.

13.8        Severability

If any provision of the Plan or any Award is determined to be
invalid, illegal or unenforceable in any jurisdiction, or as to any person, or
would disqualify the Plan or any Award under any law deemed applicable by the
Plan Administrator, such provision shall be construed or deemed amended to
conform to applicable laws, or, if it cannot be so construed or deemed amended
without, in the Plan Administrator's determination, materially altering the
intent of the Plan or the Award, such provision shall be stricken as to such
jurisdiction, person or Award, and the remainder of the Plan and any such Award
shall remain in full force and effect.

13.9        Choice
of Law 

The Plan and all determinations made and actions taken pursuant
hereto, to the extent not otherwise governed by the laws of the United States,
shall be governed by the laws of the State of Nevada without giving effect to
principles of conflicts of law.

ARTICLE 14. 
EFFECTIVE DATE 

14.1        Effective
Date of Plan 

The effective date is the date on which the Plan is adopted by
the Board. If the stockholders of the Company do not approve the Plan within
twelve (12) months after the Board's adoption of the Plan, any Incentive Stock
Options granted under the Plan will be treated as Non-Qualified Stock
Options.

12

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