Document:

ex10-2.htm

    EXHIBIT
      10.2

     

    EMPLOYMENT
      AGREEMENT

     

    THIS
      EMPLOYMENT AGREEMENT, dated as of September 21, 2007 (the “Effective
      Date”) is entered into by and between TIDELANDS OIL & GAS
      CORPORATION, a Nevada limited liability company (the
“Company”), and  JULIO BASTARRACHEA
      (“Executive”).

     

     

    RECITAL

     

    The
      Company desires to employ Executive, and Executive desires to be employed by
      the
      Company, in accordance with and subject to the terms and conditions set forth
      herein.

     

     

    AGREEMENT

     

    Accordingly,
      the parties hereby agree as follows:

     

    1.  Term.  Subject
      to Section 4, the Company hereby employs Executive, and Executive
      hereby accepts employment by the Company, to render services on behalf of the
      Company in the position and with the duties and responsibilities described
      in
Section 2 for the period commencing on the date of this Agreement
      and continuing in effect for a period of three (3) years (the
“Term”).  The Company and
      Executive may extend the Term of this Agreement by mutual written
      agreement.

     

    2.  Position,
      Duties, Responsibilities.  Executive shall be employed by the
      Company as  Vice President – Mexico reporting directly to the
      President of the Company.  Executive shall devote Executive’s best
      efforts and Executive’s full time and attention to the performance of the
      services customarily incident to such offices (collectively, the
“Services”).  Executive acknowledges that
      the Services may include services for other entities, as directed by the Board
      of Directors.  Executive and Executive’s wholly owned Mexican entity,
      KIINERA, S.A. de C.V. specifically agree to be bound by the covenants contained
      in Sections 4, 9 and 11 of the Independent Consulting Agreement between Company
      and Frontera Pipeline, LLC as described in said agreement. Executive shall
      be
      based at such place(s) as mutually agreed between the Company and
      Executive.

     

    3.  Compensation,
      Benefits, Expenses.

     

    3.1.  Salary.  In
      consideration of the Services to be rendered hereunder, Executive shall receive
      an annual salary in the amount of One Hundred Sixty-eight Thousand Dollars
      ($168,000), payable directly to Executive in semi-monthly installments of $2,600
      and to Executive’s wholly owned Mexican entity, KIINERA, S.A. de C.V. in monthly
      installments of $8,800, all in accordance with the Company’s standard payroll
      policies including compliance with applicable withholding requirements. At
      the
      request of Executive but subject to the approval of the Board of Directors,
      the
      Company may increase the cash salary payable under this Section 3.1 with
      commensurate decrease in the equity compensation payable for the respective
      annual period under Section 3.2.  The first and last payment by the
      Company to Executive will be adjusted, if necessary, to reflect a commencement
      or termination date other than the first or last working day of a pay
      period.

     

    3.2.  Equity
      Compensation.  The first year during the term of this Agreement,
      the Company will issue Executive shares of  S-8 common stock with a
      value of Fifty Thousand Dollars ($50,000), valued  as of September 21
      of each year of this Agreement or the next closest trading day if September
      21
      falls on a weekend or holiday.  In each succeeding annual period of
      this Agreement, the Company will issue Executive of shares of S-8 common stock
      with values as follows:

     

    Year
      Two:        $100,000 – valued on the
      date of annual grant,

     

    Year
      Three:      $150,000 – valued on the date of
      annual grant.

     

    The
      Executive may also be eligible to
      receive stock option grants from time to time in the sole discretion of the
      Board of Directors.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    3.3.  Benefits.  The
      Company shall provide Executive with the right to participate in and to receive
      benefits from all present and future life, accident, disability, medical,
      pension, stock and savings plans and all similar benefits made available
      generally to all employees of the Company.  Executive shall be
      entitled to the twenty (20) days of vacation annually, which shall accrue in
      equal monthly installments. .

     

    3.4.  Expenses.  The
      Company shall reimburse Executive for reasonable and properly documented travel,
      entertainment and other business expenses incurred by Executive in the
      performance of his duties hereunder in accordance with the Company’s general
      policies, as they may be amended from time to time during the course of this
      Agreement. The Company shall also reimburse Executive $950 in monthly housing
      allowance to maintain living quarters in Mexico City, Mexico for the convenience
      of the Company.

     

    4.  Termination
      of Employment.

     

    4.1.  By
      Death.  The Term shall terminate automatically upon the death of
      Executive.  The Company shall pay to Executive’s beneficiaries or
      estate, as appropriate, the compensation to which Executive is entitled pursuant
      to Section 3.1(a) (including any accrued vacation), and reimburse
      Executive for any expenses properly incurred by Executive pursuant to
Section 3.4.  Thereafter, the Company’s obligations
      hereunder shall terminate.  Nothing in this Section 4.1
      shall affect any entitlement of Executive’s heirs to any vested benefits of
      Executive or to the benefits of any life insurance plan.

     

    4.2.  By
      Disability.  If, in the sole and reasonable opinion of the Board
      of Directors, Executive shall be prevented from properly performing his duties
      hereunder by reason of any physical or mental incapacity for a period of more
      than ninety (90) days in the aggregate in any twelve-month (12-month)
      period, then, to the extent permitted by law, the Term shall terminate on,
      and
      the Company shall pay to Executive the compensation to which Executive is
      entitled pursuant to Section 3.1(a) (including any accrued
      vacation), and reimburse Executive for any expenses properly incurred by
      Executive pursuant to Section 3.4, in each case through the last day
      of the month in which the 90th day of incapacity
      occurs.  Thereafter the Company’s obligations hereunder shall
      terminate.  Nothing in this Section 4.2 shall affect
      Executive’s rights to any vested benefits of Executive or under any disability
      plan in which he is a participant.

     

    4.3.  By
      the
      Company with Cause.  The Company may terminate, without liability,
      the Term with Cause (as defined below) solely pursuant to this
Section 4.3.  In the event the Company intends to
      terminate Executive with Cause, the Company may thereupon terminate Executive’s
      employment with Cause immediately upon notice to Executive.  In such
      event, the Company shall (i) pay Executive the compensation to which Executive
      is entitled pursuant to Section 3.1(a) (including any accrued
      vacation); and (ii) reimburse Executive for any expenses properly incurred
      by
      Executive pursuant to Section 3.4, in each case through the end of
      the day on which the Company terminates Executive.   Thereafter
      the Company’s obligations hereunder shall terminate.  Nothing in this
Section 4.3 shall affect Executive’s rights to any benefits vested
      as of the date of termination.

     

    Termination
      shall be with “Cause” if:

     

    (a)  Executive
      willfully engages in conduct that is in bad faith and materially injurious
      to
      the Company, including but not limited to, misappropriation of trade secrets,
      fraud, or embezzlement;

     

    (b)  Executive
      engages in malfeasance demonstrated by a pattern of failure to perform job
      duties diligently and professionally;

     

    (c)  Executive
      willfully refuses to implement or follow a reasonable and lawful policy or
      directive of the Company, which breach is not cured within thirty (30) days
      after written notice to Executive from the Company; or

     

    (d)  Executive
      materially breaches any term of this Agreement which breach is not cured within
      thirty (30) days after written notice to Executive from the
      Company.

     

    4.4.  Without
      Cause.  At any time, either the Company or Executive may terminate
      the Term for any reason, without Cause, by giving fifteen (15) days’
advance written notice to the other party.  In the event that
      Executive’s employment is terminated by either party pursuant to this
Section 4.4, the Company shall:  (i) pay Executive
      the compensation to which Executive is entitled pursuant to
Section 3.1(a) (including any accrued vacation) through the end of
      the day on which Executive’s employment is terminated; and (ii) reimburse
      Executive for any expenses properly incurred by Executive pursuant to
Section 3.4 through the end of the day on which Executive’s
      employment is terminated.  In the event that Executive’s employment is
      terminated by the Company without Cause pursuant to this
Section 4.4, the Company shall also pay Executive the severance
      payment as set forth in Section 5.  Thereafter the
      Company’s obligations hereunder shall terminate.  Nothing in this
      Section shall affect Executive’s rights to any benefits vested as of the date of
      termination (including, without limitation, stock options that have
      vested).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    5.  Severance.

     

    5.1.  Without
      Cause.  In the event Executive’s employment with the Company is
      terminated by the Company without Cause as set forth in Section 4.4 above,
      the
      Company shall continue to pay Executive (i) his base salary on a semi-monthly
      basis plus (ii) the annual equity grant of shares as set froth in Section 3.2
      for the remainder of the Term (or the remainder of any written extension of
      the
      Term) as severance in return for a written release of any and all claims against
      the Company.  Executive shall be under no obligation to mitigate
      severance and any income or future employment of Executive with another company
      shall not offset or reduce the severance payments due under this Section
      5.

     

    6.  Assignment;
      Successors and Assigns.  Each party agrees that such party will
      not assign, sell, transfer, delegate or otherwise dispose of, whether
      voluntarily or involuntarily, or by operation of law, any rights or obligations
      under this Agreement, nor shall such party’s rights be subject to encumbrance or
      the claims of creditors.  Any purported assignment, transfer, or
      delegation thereof shall be null and void.  Nothing in this Agreement
      shall prevent the consolidation of the Company with, or its merger into, any
      other corporation, or the sale by the Company of all or substantially all of
      its
      properties or assets, or the assignment by the Company of this Agreement and
      the
      performance of its obligations hereunder to any successor in
      interest.  Subject to the foregoing, this Agreement shall be binding
      upon and shall inure to the benefit of the parties and their respective heirs,
      legal representatives, successors, and permitted assigns, and shall not benefit
      any person or entity other than those enumerated above.

     

    7.  Notices.  Unless
      otherwise agreed to, all notices, requests, instructions or other documents
      to
      be given hereunder shall be in writing or by written telecommunication, and
      shall be deemed to have been duly given if: (a) delivered personally (effective
      upon delivery); (b) mailed by certified mail, return receipt requested, postage
      prepaid (effective five (5) business days after dispatch); (c) sent by a
      reputable, established courier service that guarantees next business day
      delivery (effective the next business day); or (d) sent by facsimile (effective
      upon electronic confirmation of valid transmission of the
      facsimile).

     

    All
      notices and other documents hereunder shall be given to the Company
      at:

    

    Tidelands
      Oil & Gas Corporation

    1862
      W.
      Bitters Rd.

    San
      Antonio, TX 78248

    

    and
      to
      the Executive at the address of record on file with the Company.

    

    Notice
      of
      change of address shall be effective only when done in accordance with this
      Section 7.

     

    8.  Governing
      Law.  The validity, interpretation, enforceability, and
      performance of this Agreement shall be governed by and construed in accordance
      with the law of the State of Texas, without giving effect to its conflict of
      laws rules.

     

    9.  Outside
      Activities of Executive.  The Company acknowledges that Executive
      has commitments and business activities not related to the Company and that
      certain of these commitments and business affairs involve activities in the
      oil,
      gas and real estate industries. There shall be no restriction on Executive’s
      ability to fulfill such commitments or engage in such business
      activities.

     

    10.  Confidentiality.  Executive
      agrees that all confidential and proprietary information relating to the
      business of the Company shall be kept and treated as confidential both during
      and after the term of this Agreement, except as may be permitted in writing
      by a
      Company's Board of Directors or as such information is within the public domain
      or comes within the public domain without any breach of this
      Agreement.

     

    11.  Indemnification.
      In addition to any rights to indemnification to which Executive is entitled
      to
      under the Company's Articles of Incorporation and Bylaws, the Company shall
      indemnify Executive at all times during and after the term of this Agreement
      to
      the maximum extent permitted under Nevada Revised Statutes or any successor
      provision thereof and any other applicable state law, and shall pay Executive's
      expenses in defending any civil action, suit, or proceeding in advance of the
      final disposition of such action, suit or proceeding, to the maximum extent
      permitted under such applicable state laws.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    12.  Entire
      Agreement.  The terms of this Agreement are intended by the
      parties to be the final expression of their agreement with respect to the
      employment of Executive by the Company and may not be contradicted by evidence
      of any prior or contemporaneous agreement.  The parties further intend
      that this Agreement shall constitute the complete and exclusive statement of
      its
      terms and that no extrinsic evidence whatsoever may be introduced in any
      judicial, administrative, or other legal proceeding involving this
      Agreement.

     

    13.  Amendments;
      Waivers.  This Agreement may not be modified, amended, or
      terminated except by an instrument in writing, signed by Executive and by a
      duly
      authorized representative of the Company other than Executive.  By an
      instrument in writing similarly executed, either party may waive compliance
      by
      the other party with any provision of this Agreement that such other party
      was
      or is obligated to comply with or perform; provided, however, that such
      waiver shall not operate as a waiver of, or estoppel with respect to, any other
      or subsequent failure.  No failure to exercise and no delay in
      exercising any right, remedy, or power hereunder shall operate as a waiver
      thereof, nor shall any single or partial exercise of any right, remedy, or
      power
      hereunder preclude any other or further exercise thereof or the exercise of
      any
      other right, remedy, or power provided herein or by law or in
      equity.

     

    14.  Severability;
      Enforcement.  If any provision of this Agreement, or the
      application thereof to any person, place, or circumstance, shall be held by
      a
      court of competent jurisdiction or by arbitrator(s) to be invalid,
      unenforceable, or void, the remainder of this Agreement and such provisions
      as
      applied to other persons, places, and circumstances shall remain in full force
      and effect.

     

    15.  Executive
      Acknowledgment.  Executive acknowledges (i) that Executive
      has consulted with or has had the opportunity to consult with independent
      counsel of his own choice concerning this Agreement and has been advised to
      do
      so by the Company, and (ii) that Executive has read and understands the
      Agreement, is fully aware of its legal effect, and has entered into it freely
      based on Executive’s own judgment.

     

    16.  Counterparts.  This
      Agreement may be signed in multiple counterparts, each of which shall be deemed
      an original but all of which together shall be deemed one and the same
      instrument.  Facsimile signatures shall create a valid and binding
      obligation of the party executing this Agreement with the same force and effect
      as if such facsimile signature page were an original thereof.

     

    

     

    *******************

     

    

     

     

    IN
      WITNESS WHEREOF, the parties hereto have duly executed this Employment Agreement
      as of the date first written above.

     

    TIDELANDS
      OIL & GAS CORPORATION, a Nevada limited liability company

    

    

                                                                                                         
/s/ James B.
      Smith
                                                                             Name:
      James B. Smith

                                                                                                          Title:
      President

    

    

    

    EXECUTIVE:

     

                                                                                  /s/
      Julio
      Bastarrachea
                                                                              Julio
      Bastarrachea, an individual

     

     

    KIINERA,
      S.A. de C.V.

    
 

    /s/
      Julio
      Bastarrachea

    Julio
      Bastarrachea, Director GeneralAmended & Restated Employee Stock Purchase Plan

 Exhibit 4.1.1 
 OSCIENT PHARMACEUTICALS CORPORATION 
 AMENDED AND RESTATED 
 EMPLOYEE STOCK PURCHASE PLAN 
  

	SECTION	1. PURPOSE OF PLAN  

 This Oscient
Pharmaceuticals Corporation Amended and Restated Employee Stock Purchase Plan (the “Plan”), is intended to provide a method by which eligible employees of Oscient Pharmaceuticals Corporation (the “Company”) may use voluntary,
systematic payroll deductions to purchase shares of Common Stock, $.10 par value of the Company (such Common Stock being hereafter referred to as “Stock”) and thereby acquire an interest in the future of the Company. The purpose of the
Plan is to assist the Company in retaining high quality employees and to expand employee stock ownership. The Plan is intended to qualify under Section 423 of the Internal Revenue Code of 1986, as amended (the “Code”), and Options (as
defined below) granted hereunder are intended to be exempt from Section 409A of the Code, and the Plan and all outstanding Options shall be construed and administered accordingly. 
  

	SECTION	2. OPTIONS TO PURCHASE STOCK  

 Under the Plan,
there is available an aggregate of not more than 2,250,000 shares of Stock (subject to adjustment as provided in Section 15) for sale pursuant to the exercise of options (“Options”) granted under the Plan to employees of the Company
(“Employees”) who meet the eligibility requirements set forth in Section 3 hereof (“Eligible Employees”). The Stock to be delivered upon exercise of Options under the Plan may be either shares of authorized but unissued
Stock or shares of reacquired Stock, as the Board of Directors of the Company (the “Board of Directors”) may determine. 
  

	SECTION	3. ELIGIBLE EMPLOYEES  

 Except as otherwise
provided below, each Employee who, on the first day of an Option Period (as defined below) following his or her employment by the Company, is scheduled to work at least 20 hours per week and is expected to be employed by Company for at least five
months per year will be eligible to participate in the Plan 
 (a) Any Employee who immediately after the grant of an Option would own (or
pursuant to Section 423(b)(3) of the Code would be deemed to own) stock possessing 5% or more of the total combined voting power or value of all classes of stock of the Company, as defined in Section 424 of the Code, will not be eligible
to receive an Option to purchase Stock pursuant to the Plan. 
 (b) No Employee will be granted an Option under the Plan that would permit
his or her rights to purchase shares of stock under all employee stock purchase plans of the Company to accrue at a rate which exceeds $25,000 in fair market value of such stock (determined at the time the Option is granted) for each calendar year
during which any such Option granted to such Employee is outstanding at any time, as provided in Section 423 of the Code. 
  

	SECTION	4. METHOD OF PARTICIPATION  

 The first stock option
period (the “Initial Option Period”) for which Options under the Plan were granted commenced on March 1, 2000 and ended on June 30, 2000. After the Initial Option Period, the periods for which Options may be granted hereunder
have been, and shall be, from January 1 to June 30 and from July 1 to December 31 of each year. 

 
Such periods, together with the Initial Option Period, shall be referred to as the “Option Periods.” Each person who will be an Eligible Employee
on the first day of any Option Period may elect to participate in the Plan by executing and delivering, at least 15 days prior to such day, a payroll deduction authorization in accordance with Section 5. Such Employee will thereby become a
participant (“Participant”) on the first day of such Option Period and will remain a Participant until his or her participation is terminated as provided in the Plan. 
  

	SECTION	5. PAYROLL DEDUCTION  

 The payroll deduction
authorization will request withholding at a rate (in whole percentages) of not less than 1% nor more than 15% from the Participant’s Compensation by means of substantially equal payroll deductions over the Option Period from payroll periods
ending in the Option Period. For purposes of the Plan, “Compensation” means all compensation paid to the Participant by the Company and currently includable in his or her income, including bonuses, commissions and other amounts includible
in the definition of compensation provided in the Treasury Regulations promulgated under Section 415 of the Code, plus any amount that would be so included but for the fact that it was contributed to a qualified plan pursuant to an elective
deferral under Section 401(k) of the Code, but not including payments under stock option plans and other employee benefit plans or any other amounts excluded from the definition of compensation provided in the Treasury Regulations under
Section 415 of the Code. Once per quarter, a Participant may increase or decrease the withholding rate of his or her payroll deduction authorization by written notice delivered to the Company at least 15 days prior to the first day of the
Option Period as to which the change is to be effective. All amounts withheld in accordance with a Participant’s payroll deduction authorization will be credited to a withholding account for such Participant. 
  

	SECTION	6. GRANT OF OPTIONS  

 Each person who is a
Participant on the first day of an Option Period will as of such day be granted an Option for such Period. Such Option will be for the number of whole shares of Stock to be determined by dividing (i) the balance in the Participant’s
withholding account on the last day of the Option Period, by (ii) the purchase price per share of the Stock determined under Section 7; provided, that the maximum number of shares that were purchased by any Participant for the
Initial Option Period equaled that number of shares which had a fair market value of $8,333.33 on the first day of the Initial Option Period; provided, further, that the maximum number of shares that may be purchased by any Participant for
any subsequent Option Period shall be that number of shares which had a fair market value of $12,500 on the first day of the Option Period. The Company will reduce, on a substantially proportionate basis, the number of shares of Stock purchasable by
each Participant upon exercise of his or her Option for an Option Period in the event that the number of shares then available under the Plan is insufficient. 
  

	SECTION	7. PURCHASE PRICE  

 The purchase price of Stock
issued pursuant to the exercise of an Option will be 85% of the fair market value of the Stock at (a) the time of grant of the Option or (b) the time at which the Option is deemed exercised, whichever is less. Fair market value will mean
the Closing Price of the Stock. The “Closing Price” of the Stock on any business day will be the last sale price, regular way, with respect to such Stock, or, in case no such sale takes place on such day, the average of the closing bid and
asked prices, regular way, with respect to such Stock, in either case as reported on the NASDAQ Stock Market (“NASDAQ”); or, if such Stock is not listed or admitted to trading on NASDAQ, as reported on such other principal national
securities exchange on which such Stock is listed or admitted to trading. 

	SECTION	8. EXERCISE OF OPTIONS  

 If any Employee is a
Participant in the Plan on the last business day of an Option Period, he or she will be deemed to have exercised the Option granted to him or her for that period. Upon such exercise, the Company will apply the balance of the Participant’s
withholding account to the purchase of the number of whole shares of Stock determined under Section 6 and as soon as practicable thereafter will issue and deliver certificates for said shares to the Participant and will return to him or her the
balance, if any, of his or her withholding account in excess of the total purchase price of the shares so issued; provided, that if the balance left in the account consists solely of an amount equal to the value of a fractional share it will
be retained in the Account and carried over to the next Period. No fractional shares will be issued hereunder. 
 Notwithstanding anything
herein to the contrary, the Company’s obligation to issue and deliver shares of Stock under the Plan will be subject to the approval required of any governmental authority in connection with the authorization, issuance, sale or transfer of said
shares, to any requirements of any national securities exchange applicable thereto, and to compliance by the Company with other applicable legal requirements in effect from time to time. 
  

	SECTION	9. INTEREST  

 No interest will be payable on
withholding accounts. 
  

	SECTION	10. CANCELLATION AND WITHDRAWAL  

 A Participant who
holds an Option under the Plan may at any time prior to exercise thereof under Section 8 cancel all or any part of his or her Options by written notice delivered to the Company. Upon such cancellation, the balance in the Participant’s
withholding account will be returned to the Participant. 
 A Participant may terminate his or her payroll deduction authorization as of any
date by written notice delivered to the Company and will thereby cease to be a Participant as of such date. Any Participant who voluntarily terminates his or her payroll deduction authorization prior to the last business day of an option period will
be deemed to have canceled his or her Option. 
  

	SECTION	11. TERMINATION OF EMPLOYMENT  

 Upon the
termination of a Participant’s service with the Company by reason of retirement or disability (permanent or temporary) or upon a Participant’s leave of absence with the Company, such Participant, by written notice to the Company, may
request that the balance of his or her withholding account be applied to the exercise of his or her Option as of the last day of the Option Period pursuant to Section 8 of the Plan. 
 In the absence of such a written notice to the Company, subject to Section 12, upon the termination of a Participant’s service with the Company
for any reason, he or she will cease to be a Participant, and any Option held by him or her under the Plan will be deemed canceled, the balance of his or her withholding account will be returned, and he or she will have no further rights under the
Plan. 

	SECTION	12. DEATH OF PARTICIPANT  

 A Participant may file a
written designation of beneficiary specifying who is to receive any stock and/or cash credited to the Participant under the Plan in the event of the Participant’s death, which designation will also provide for the election by the Participant of
either (i) cancellation of the Participant’s Option upon his or her death, as provided in Section 10 or (ii) application as of the last day of the Option Period of the balance of the deceased Participant’s withholding
account at the time of death to the exercise of his or her Option, pursuant to Section 8 of the Plan. In the absence of a valid election otherwise, the death of a Participant will be deemed to effect a cancellation of his or her Option. A
designation of beneficiary and election may be changed by the Participant at any time, by written notice. In the event of the death of a Participant and receipt by the Company of proof of the identity and existence at the Participant’s death of
a beneficiary validly designated by him or her under the Plan, the Company will deliver such stock and/or cash to which the beneficiary is entitled under the Plan to such beneficiary. In the event of the death of a Participant and in the absence of
a beneficiary validly designated under the Plan who is living at the time of such Participant’s death, the Company will deliver such stock and/or cash to the executor or administrator of the estate of the Participant, if the Company is able to
identify such executor or administrator. If the Company is unable to identify such administrator or executor, the Company in its discretion may deliver such stock and/or cash to the spouse or to any one or more dependents of a Participant as the
Company may determine. No beneficiary will, prior to the death of the Participant by whom he or she has been designated, acquire any interest in the stock or cash credited to the Participant under the Plan. 
  

	SECTION	13. EQUAL RIGHTS; PARTICIPANT’S RIGHTS NOT TRANSFERABLE  

 All Participants granted Options under the Plan will have the same rights and privileges, and each Participant’s rights and privileges under any Option granted under the Plan will be exercisable during his or her
lifetime only by him or her, and will not be sold, pledged, assigned, or transferred in any manner. In the event any Participant violates the terms of this Section, any Options held by him or her may be terminated by the Company and upon return to
the Participant of the balance of his or her withholding account, all his or her rights under the Plan will terminate. 
  

	SECTION	14. EMPLOYMENT RIGHTS  

 Nothing contained in the
provisions of the Plan will be construed to give to any Employee the right to be retained in the employ of the Company or to interfere with the right of the Company to discharge any Employee at any time. 
  

	SECTION	15. CHANGE IN CAPITALIZATION  

 In the event of any
change in the outstanding Stock of the Company by reason of a stock dividend, split-up, recapitalization, merger, consolidation, reorganization, or other capital change, the aggregate number of shares available under the Plan, the number of shares
under Options granted but not exercised, the maximum number of shares purchasable under an Option, and the Option price will be appropriately adjusted. 
  

	SECTION	16. ADMINISTRATION OF PLAN  

 The Plan will be
administered by the Board of Directors, which will have the right to determine any questions which may arise regarding the interpretation and application of the provisions of the Plan and to make, administer, and interpret such rules and regulations
as it will deem necessary or advisable. 

	SECTION	17. AMENDMENT AND TERMINATION OF PLAN  

 The Company
reserves the right at any time or times to amend the Plan to any extent and in any manner it may deem advisable by vote of the Board of Directors; provided, however, that any amendment relating to the aggregate number of shares which may be issued
under the Plan (other than an adjustment provided for in Section 15) will have no force or effect unless it will have been approved by the shareholders within twelve months before or after its adoption. 
 The Plan may be suspended or terminated at any time by the Board of Directors, but no such suspension or termination will adversely affect the rights and
privileges of holders of the outstanding Options. The Plan will terminate in any case when all or substantially all of the Stock reserved for the purposes of the Plan has been purchased. 
  

	SECTION	18. APPROVAL OF SHAREHOLDERS  

 This amendment and
restatement of the Plan will be subject to the approval of the shareholders of the Company secured within twelve months before or after the date the Plan is adopted by the Board of Directors. 
  

	SECTION	19. EFFECTIVE DATE  

 The Plan was originally
adopted by the Board of Directors of the Company on October 27, 1999, and the effective date of the Plan was March 1, 2000 which was the date that the Plan was originally approved by the shareholders of the Company. This amendment and
restatement of the Plan shall be effective on the date that the shareholders of the Company approve this amendment and restatement.

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