Document:

Exhibit 10.5
      

    

    PHINDER
      TECHNOLOGIES, INC.

    2007
      STOCK OPTION PLAN

    ______________________________________
      

    

    1.  Purpose.
      The
      purpose of this Plan is to advance the interests of Phinder Technologies Inc.,
      a
      Florida corporation (the “Company”), by providing an additional incentive to
      attract, retain and motivate highly qualified and competent persons who are
      key
      to the Company, including key employees, consultants, independent contractors,
      Officers and Directors, and upon whose efforts and judgment the success of
      the
      Company and its Subsidiaries is largely dependent, by authorizing the grant
      of
      options to purchase Common Stock of the Company and other related benefits
      to
      persons who are eligible to participate hereunder, thereby encouraging stock
      ownership in the Company by such persons, all upon and subject to the terms
      and
      conditions of this Plan.

    

    2.  Definitions.
      As used
      herein, the following terms shall have the meanings indicated:

    (a)  “Board”
      shall mean the Board of Directors of the Company.

    

    (b)  “Cause”
      shall mean any of the following:

    

    (i)  a
      determination by the Company that there has been a willful, reckless or grossly
      negligent failure by the Optionee to perform his or her duties as an employee
      of
      the Company;

    

    (ii)  a
      determination by the Company that there has been a willful breach by the
      Optionee of any of the material terms or provisions of any employment agreement
      between such Optionee and the Company;

    

    (iii)  any
      conduct by the Optionee that either results in his or her conviction of a felony
      under the laws of the United States of America or any state thereof, or of
      an
      equivalent crime under the laws of any other jurisdiction;

    

    (iv)  a
      determination by the Company that the Optionee has committed an act or acts
      involving fraud, embezzlement, misappropriation, theft, breach of fiduciary
      duty
      or material dishonesty against the Company, its properties or
      personnel;

    

    (v)  any
      act
      by the Optionee that the Company determines to be in willful or wanton disregard
      of the Company’s best interests, or which results, or is intended to result,
      directly or indirectly, in improper gain or personal enrichment of the Optionee
      at the expense of the Company;

    

    (vi)  a
      determination by the Company that there has been a willful, reckless or grossly
      negligent failure by the Optionee to comply with any rules, regulations,
      policies or procedures of the Company, or that the Optionee has engaged in
      any
      act, behavior or conduct demonstrating a deliberate and material violation
      or
      disregard of standards of behavior that the Company has a right to expect of
      its
      employees; or

     

    
      
         

      

      
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    (vii)  if
      the
      Optionee, while employed by the Company and for two years thereafter, violates
      a
      confidentiality and/or noncompete agreement with the Company, or fails to
      safeguard, divulges, communicates, uses to the detriment of the Company or
      for
      the benefit of any person or persons, or misuses in any way, any Confidential
      Information; provided,
      however,
      that, if
      the Optionee has entered into a written employment agreement with the Company
      which remains effective and which expressly provides for a termination of such
      Optionee’s employment for “cause,” the term “Cause” as used herein shall have
      the meaning as set forth in the Optionee’s employment agreement in lieu of the
      definition of “Cause” set forth in this Section 2(b).

    

    (c)  “Change
      of Control” shall mean the acquisition by any person or group (as that term is
      defined in the Exchange Act, and the rules promulgated pursuant to that act)
      in
      a single transaction or a series of transactions of thirty percent (30%) or
      more
      in voting power of the outstanding stock of the Company and a change of the
      composition of the Board of Directors so that, within two years after the
      acquisition took place, a majority of the members of the Board of Directors
      of
      the Company, or of any corporation with which the Company may be consolidated
      or
      merged, are persons who were not directors or officers of the Company or one
      of
      its Subsidiaries immediately prior to the acquisition, or to the first of a
      series of transactions which resulted in the acquisition of thirty percent
      (30%)
      or more in voting power of the outstanding stock of the Company.

    

    (d)  “Code”
      shall mean the Internal Revenue Code of 1986, as amended.

     

    (e)  “Committee”
      shall mean the stock option committee appointed by the Board or, if not
      appointed, the Board.

    

    (f)  “Common
      Stock” shall mean the Company’s Common Stock, par value $.0001 per
      share.

    

    (g)  “Director”
      shall mean a member of the Board.

    

    (h)  “Employee”
      shall mean any person, including officers, directors, consultants and
      independent contractors employed by the Company or any parent or Subsidiary
      of
      the Company within the meaning of Section 3401(c) of the regulators promulgated
      thereunder.

    

    (i)  “Exchange
      Act” shall mean the Securities Exchange Act of 1934, as amended.

     

    
      
         

      

      
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    (j)  “Fair
      Market Value” of a Share on any date of reference shall be the Closing Price of
      a share of Common Stock on the business day immediately preceding such date,
      unless the Committee in its sole discretion shall determine otherwise in a
      fair
      and uniform manner. For this purpose, the “Closing Price” of the Common Stock on
      any business day shall be (i) if the Common Stock is listed or admitted for
      trading on any United States national securities exchange, or if actual
      transactions are otherwise reported on a consolidated transaction reporting
      system, the last reported sale price of the Common Stock on such exchange or
      reporting system, as reported in any newspaper of general circulation,
      (ii) if the Common Stock is quoted on The Nasdaq Stock Market (“Nasdaq”),
      or any similar system of automated dissemination of quotations of securities
      prices in common use, the mean between the closing high bid and low asked
      quotations for such day of the Common Stock on such system, or (iii) if
      neither clause (i) nor (ii) is applicable, the mean between the high bid and
      low
      asked quotations for the Common Stock as reported by the National Quotation
      Bureau, Incorporated if at least two securities dealers have inserted both
      bid
      and asked quotations for the Common Stock on at least five of the 10 preceding
      days. If the information set forth in clauses (i) through (iii) above is
      unavailable or inapplicable to the Company (e.g., if the Company’s Common Stock
      is not then publicly traded or quoted), then the “Fair Market Value” of a Share
      shall be the fair market value (i.e., the price at which a willing seller would
      sell a Share to a willing buyer when neither is acting under compulsion and
      when
      both have reasonable knowledge of all relevant facts) of a share of the Common
      Stock on the business day immediately preceding such date as the Committee
      in
      its sole and absolute discretion shall determine in a fair and uniform
      manner.

    

    (k)  “Incentive
      Stock Option” shall mean an incentive stock option as defined in Section 422 of
      the Code.

    

    (l)  “Non-Statutory
      Stock Option” or “Nonqualified Stock Option” shall mean an Option which is not
      an Incentive Stock Option.

    

    (m)  “Officer”
      shall mean the Company’s chairman, president, principal financial officer,
      principal accounting officer (or, if there is no such accounting officer, the
      controller), any vice-president of the Company in charge of a principal business
      unit, division or function (such as sales, administration or finance), any
      other
      officer who performs a policy-making function, or any other person who performs
      similar policy-making functions for the Company. Officers of Subsidiaries shall
      be deemed Officers of the Company if they perform such policy-making functions
      for the Company. As used in this paragraph, the phrase “policy-making function”
does not include policy-making functions that are not significant. Unless
      specified otherwise in a resolution by the Board, an “executive officer”
pursuant to Item 401(b) of Regulation S-K (17 C.F.R. § 229.401(b)) shall be only
      such person designated as an “Officer” pursuant to the foregoing provisions of
      this paragraph.

    

    (n)  “Option”
      (when capitalized) shall mean any stock option granted under this
      Plan.

     

    
      
         

      

      
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    (o)  “Optionee”
      shall mean a person to whom an Option is granted under this Plan or any person
      who succeeds to the rights of such person under this Plan by reason of the
      death
      of such person.

    

    (p)  “Plan”
      shall mean this 2006 Stock Option Plan of the Company, which Plan shall be
      effective upon approval by the Board, subject to approval, within 12 months
      of
      the date thereof by holders of a majority of the Company’s issued and
      outstanding Common Stock of the Company.

    

    (q)  “Share”
      or “Shares” shall mean a share or shares, as the case may be, of the Common
      Stock, as adjusted in accordance with Section 10 of this Plan.

    

    (r)  “Subsidiary”
      shall mean any corporation (other than the Company) in any unbroken chain of
      corporations beginning with the Company if, at the time of the granting of
      the
      Option, each of the corporations other than the last corporation in the unbroken
      chain owns stock possessing 50 percent or more of the total combined voting
      power of all classes of stock in one of the other corporations in such
      chain.

    

    3.  Shares
      and Options.
      Subject
      to adjustment in accordance with Section 10 hereof, the Company may issue up
      to25% (twenty five per-cent) of the total number of Shares then outstanding
      (on
      a non-diluted basis) immediately prior to the proposed grant of the applicable
      Option from Shares held in the Company’s treasury or from authorized and
      unissued Shares through the exercise of Options issued pursuant to the
      provisions of this Plan. If any Option granted under this Plan shall terminate,
      expire, or be canceled, forfeited or surrendered as to any Shares, the Shares
      relating to such lapsed Option shall be available for issuance pursuant to
      new
      Options subsequently granted under this Plan. Upon the grant of any Option
      hereunder, the authorized and unissued Shares to which such Option relates
      shall
      be reserved for issuance to permit exercise under this Plan. Subject to the
      provisions of Section 14 hereof, an Option granted hereunder shall be either
      an
      Incentive Stock Option or a Non-Statutory Stock Option as determined by the
      Committee at the time of grant of such Option and shall clearly state whether
      it
      is an Incentive Stock Option or Non-Statutory Stock Option. All Incentive Stock
      Options shall be granted within 10 years from the effective date of this Plan.
      

    

    4.  Limitations.
      Options
      otherwise qualifying as Incentive Stock Options hereunder will not be treated
      as
      Incentive Stock Options to the extent that the aggregate Fair Market Value
      (determined at the time the Option is granted) of the Shares, with respect
      to
      which Options meeting the requirements of Code Sec-tion 422(b) are
      exercisable for the first time by any individual during any calendar year (under
      all stock option or similar plans of the Company and any Subsidiary), exceeds
      $100,000.

    

    5.  Conditions
      for Grant of Options.

    

    (a)  Each
      Option shall be evidenced by an option agreement that may contain any term
      deemed necessary or desirable by the Committee, provided such terms are not
      inconsistent with this Plan or any applicable law. Optionees shall be those
      persons selected by the Committee from the class of all regular Employees of
      the
      Company or its Subsidiaries, including Employee Directors and Officers who
      are
      regular or former regular employees of the Company, Directors who are not
      regular employees of the Company, as well as consultants to the Company. Any
      person who files with the Committee, in a form satisfactory to the Committee,
      a
      written waiver of eligibility to receive any Option under this Plan shall not
      be
      eligible to receive any Option under this Plan for the duration of such
      waiver.

     

    
      
         

      

      
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    (b)  In
      granting Options, the Committee shall take into consideration the contribution
      the person has made, or is expected to make, to the success of the Company
      or
      its Subsidiaries and such other factors as the Committee shall determine. The
      Committee shall also have the authority to consult with and receive
      recommendations from Officers and other personnel of the Company and its
      Subsidiaries with regard to these matters. The Committee may from time to time
      in granting Options under this Plan prescribe such terms and conditions
      concerning such Options as it deems appropriate, provided that such terms and
      conditions are not more favorable to an Optionee than those expressly permitted
      herein; provided further, however, that to the extent not cancelled pursuant
      to
      Section 9(b) hereof, upon a Change in Control, any Options that have not yet
      vested, may, in the sole discretion of the Committee, vest upon such Change
      in
      Control.

    

    (c)  The
      Options granted to employees under this Plan shall be in addition to regular
      salaries, pension, life insurance or other benefits related to their employment
      with the Company or its Subsidiaries. Neither this Plan nor any Option granted
      under this Plan shall confer upon any person any right to employment or
      continuance of employment (or related salary and benefits) by the Company or
      its
      Subsidiaries.

    

    6.  Exercise
      Price.
      The
      exercise price per Share of any Option shall be any price determined by the
      Committee but in no event shall the exercise price per Share of any Option
      be
      less than the Fair Market Value of the Shares underlying such Option on the
      date
      such Option is granted and, in the case of an Incentive Stock Option granted
      to
      a 10% stockholder, the per Share exercise price will not be less than 110%
      of
      the Fair Market Value. Re-granted Options, or Options which are canceled and
      then re-granted covering such canceled Options, will, for purposes of this
      Section 6, be deemed to have been granted on the date of the
      re-granting.

    

    7.  Exercise
      of Options.

    

    (a)  An
      Option
      shall be deemed exercised when (i) the Company has received written notice
      of such exercise in accordance with the terms of the Option, (ii) full
      payment of the aggregate option price of the Shares as to which the Option
      is
      exercised has been made, (iii) the Optionee has agreed to be bound by the
      terms, provisions and conditions of any applicable stockholders’ agree-ment, and
      (iv) arrangements that are satisfactory to the Committee in its sole
      discretion have been made for the Optionee’s payment to the Company of the
      amount that is necessary for the Company or the Subsidiary employing the
      Optionee to withhold in accordance with applicable Federal or state tax
      withholding requirements. Unless further limited by the Committee in any Option,
      the exercise price of any Shares purchased pursuant to the exercise of such
      Option shall be paid in cash, by certified or official bank check, by money
      order, with Shares or by a combination of the above; provided, however, that
      the
      Committee in its sole discretion may accept a personal check in full or partial
      payment of any Shares. The Company in its sole discretion may, on an individual
      basis or pursuant to a general program established by the Committee in
      connection with this Plan, lend money to an Optionee to exercise all or a
      portion of the Option granted hereunder. If the exercise price is paid in whole
      or part with the Optionee’s promissory note, such note shall (i) provide
      for full recourse to the maker, (ii) be collateralized by the pledge of the
      Shares that the Optionee purchases upon exercise of such Option, (iii) bear
      interest at a rate no less than the rate of interest payable by the Company
      to
      its principal lender, and (iv) contain such other terms as the Committee in
      its sole discretion shall require.

     

    
      
         

      

      
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    (b)  No
      Optionee shall be deemed to be a holder of any Shares subject to an Option
      unless and until a stock certificate or certificates for such Shares are issued
      to such person(s) under the terms of this Plan. No adjustment shall be made
      for
      dividends (ordinary or extraordinary, whether in cash, securities or other
      property) or distributions or other rights for which the record date is prior
      to
      the date such stock certificate is issued, except as expressly provided in
      Section 10 hereof.

    

    (c)  Any
      Option may, in the discretion of the Committee, be exercised pursuant to a
      “cashless” or “net issue” exercise. In
      lieu
      of exercising the Option as specified in subsection (a) above, the Optionee
      may
      pay in whole or in part with Shares, the number of which shall be determined
      by
      dividing (a) the aggregate Fair Value of such Shares otherwise issuable upon
      exercise of the Option minus the aggregate Exercise Price of such Option by
      (b)
      the Fair Value of one such Share, or the Optionee may pay in whole or in part
      through a reduction in the number of Shares received through the exercise of
      the
      Option equal to the quotient of the (a) aggregate Fair Value of all the Shares
      issuable upon exercise of the Option minus the aggregate Exercise Price of
      such
      Option (b) divided by the Fair Value of one such share. If
      the exercise price is paid in whole or in part with Shares, the value of the
      Shares surrendered shall be their Fair Market Value on the date the Option
      is
      exercised.

    

    8.  Exercisability
      of Options.
      Any
      Option shall become exercisable in such amounts, at such intervals, upon such
      events or occurrences and upon such other terms and conditions as shall be
      provided in an individual Option agreement evidencing such Option, except as
      otherwise provided in Section 5(b) or this Section 8.

    

    (a)  The
      expiration date(s) of an Option shall be determined by the Committee at the
      time
      of grant, but in no event shall an Option be exercisable after the expiration
      of
      10 years from the date of grant of the Option.

    

    (b)  Unless
      otherwise expressly provided in any Option as approved by the Committee,
      notwithstanding the exercise schedule set forth in any Option, each outstanding
      Option, may, in the sole discretion of the Committee, become fully exercisable
      upon the date of the occurrence of any Change of Control, but, unless otherwise
      expressly provided in any Option, no earlier than six months after the date
      of
      grant, and if and only if Optionee is in the employ of the Company on such
      date.

     

    
      
         

      

      
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    (c)  The
      Committee may in its sole discretion accelerate the date on which any Option
      may
      be exercised and may accelerate the vesting of any Shares subject to any Option
      or previously acquired by the exercise of any Option.

    

    9.  Termination
      of Option Period.

    

    (a)  Unless
      otherwise expressly provided in any Option, the unexercised portion of any
      Option shall automatically and without notice immediately terminate and become
      forfeited, null and void at the time of the earliest to occur of the
      following:

    

    (i)  three
      months after the date on which the Optionee’s employment is terminated for any
      reason other than by reason of (A) Cause, (B) the termination of the
      Optionee’s employment with the Company by such Optionee following less than 60
      days’ prior written notice to the Company of such termination (an “Improper
      Termination”), (C) a mental or physical disability (within the meaning of
      Section 22(e) of the Code) as determined by a medical doctor satisfactory to
      the
      Committee, or (D) death;

    

    (ii)  immediately
      upon (A) the termination by the Company of the Optionee’s employment for
      Cause, or (B) an Improper Termination;

    

    (iii)  one
      year
      after the date on which the Optionee’s employment is terminated by reason of a
      mental or physical disability (within the meaning of Code Section 22(e)) as
      determined by a medical doctor satisfactory to the Committee or the later of
      three months after the date on which the Optionee shall die if such death shall
      occur during the one-year period specified herein; or

    

    (iv)  the
      later
      of (a) one year after the date of termination of the Optionee’s employment by
      reason of death of the employee, or (b) three months after the date on which
      the
      Optionee shall die if such death shall occur during the one year period
      specified in Subsection 9(a)(iii) hereof.

    

    (b)  The
      Committee in its sole discretion may, by giving written notice (“cancellation
      notice”), cancel effective upon the date of the consummation of any corporate
      transaction described in Sub-sec-tion 10(d) hereof, any Option that remains
      unexercised on such date. Such cancellation notice shall be given a reasonable
      period of time prior to the proposed date of such cancellation and may be given
      either before or after approval of such corporate transaction.

    

    (c)  Upon
      termination of Optionee’s employment as described in this Section 9, or
      otherwise, any Option (or portion thereof) not previously vested or not yet
      exercisable pursuant to Section 8 of this Plan or the vesting schedule set
      forth
      in such Option shall be immediately canceled.

     

    
      
         

      

      
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    10.  Adjustment
      of Shares.

    

    (a)  If
      at any
      time while this Plan is in effect or unexercised Options are outstanding, there
      shall be any increase or decrease in the number of issued and outstanding Shares
      through the declaration of a stock dividend or through any recapitalization
      resulting in a stock split, combination or exchange of Shares (other than any
      such exchange or issuance of Shares through which Shares are issued to effect
      an
      acquisition of another business or entity or the Company’s purchase of Shares to
      exercise a “call” purchase option), then and in such event:

    

    (i)  appropriate
      adjustment shall be made in the number of Shares and the exercise price per
      Share thereof then subject to any outstanding Option, so that the same
      percentage of the Company’s issued and outstanding Shares shall remain subject
      to purchase at the same aggregate exercise price; and

    

    (ii)  such
      adjustments shall be made by the Committee, whose determination in that respect
      shall be final, binding and conclusive.

    

    (b)  Subject
      to the specific terms of any Option, the Committee may change the terms of
      Options outstanding under this Plan, with respect to the option price or the
      number of Shares subject to the Options, or both, when, in the Committee’s sole
      discretion, such adjustments become appropriate by reason of a corporate
      transaction described in Subsection 10(d) hereof, or otherwise.

    

    (c)  Except
      as
      otherwise expressly provided herein, the issuance by the Company of shares
      of
      its capital stock of any class, or securities convertible into or exchangeable
      for shares of its capital stock of any class, either in connection with a direct
      or underwritten sale, or upon the exercise of rights or warrants to subscribe
      therefor or purchase such Shares, or upon conversion of obligations of the
      Company into such Shares or other securities, shall not affect, and no
      adjustment by reason thereof shall be made with respect to, the number of or
      exercise price of Shares then subject to outstanding Options granted under
      this
      Plan.

    

    (d)  Without
      limiting the generality of the foregoing, the existence of outstanding Options
      granted under this Plan shall not affect in any manner the right or power of
      the
      Company to make, authorize or consummate (i) any or all adjustments,
      reclassifications, recapitalizations, reorganizations or other changes in the
      Company’s capital structure or its business; (ii) any merger or
      consolidation of the Company or to which the Company is a party; (iii) any
      issuance by the Company of debt securities, or preferred or preference stock
      that would rank senior to or above the Shares subject to outstanding Options;
      (iv) any purchase or issuance by the Company of Shares or other classes of
      common stock or common equity securities; (v) the dissolution or
      liquidation of the Company; (vi) any sale, transfer, encumbrance, pledge or
      assignment of all or any part of the assets or business of the Company; or
      (vii) any other corporate act or proceeding, whether of a similar character
      or otherwise.

     

    
      
         

      

      
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    (e)  The
      Optionee shall receive written notice within a reasonable time prior to the
      consummation of such action advising the Optionee of any of the foregoing.
      The
      Committee may, in the exercise of its sole discretion, in such instances declare
      that any Option shall terminate as of a date fixed by the Board and give each
      Optionee the right to exercise his or her Option.

    

    11.  Transferability.
      No
      Option or stock appreciation right granted hereunder shall be sold, pledged,
      assigned, hypothecated, disposed or otherwise transferred by the Optionee other
      than by will or the laws of descent and distribution, unless otherwise
      authorized by the Board, and no Option or stock appreciation right shall be
      exercisable during the Optionee’s lifetime by any person other than the
      Optionee.

    

    12.  Issuance
      of Shares.
      As a
      condition of any sale or issuance of Shares upon exercise of any Option, the
      Committee may require such agreements or undertakings, if any, as the Committee
      may deem necessary or advisable to assure compliance with any such law or
      regulation including, but not limited to, the following:

    

    (i)  a
      representation and warranty by the Optionee to the Company, at the time any
      Option is exercised, that he is acquiring the Shares to be issued to him for
      investment and not with a view to, or for sale in connection with, the
      distribution of any such Shares; and

    (ii)  an
      agreement and undertaking to comply with all of the terms, restrictions and
      provisions set forth in any then applicable stockholders’ agreement relating to
      the Shares, including, without limitation, any restrictions on transferability,
      any rights of first refusal and any option of the Company to “call” or purchase
      such Shares under then applicable agreements, and

    (iii)  any
      restrictive legend or legends, to be embossed or imprinted on Share
      certificates, that are, in the discretion of the Committee, necessary or
      appropriate to comply with the provisions of any securities law or other
      restriction applicable to the issuance of the Shares. 

    

    13.  Stock
      Appreciation Rights.
      The
      Committee may grant stock appreciation rights to Employees, either or tandem
      with Options that have been or are granted under the Plan or with respect to
      a
      number of Shares on which an Option is not granted. A stock appreciation right
      shall entitle the holder to receive, with respect to each Share as to which
      the
      right is exercised, payment in an amount equal to the excess of the Share’s Fair
      Market Value on the date the right is exercised over its Fair Market Value
      on
      the date the right was granted. Such payment may be made in cash or in Shares
      valued at the Fair Market Value as of the date of surrender, or partly in cash
      and partly in Shares, as determined by the Committee in its sole discretion.
      The
      Committee may establish a maximum appreciation value payable for stock
      appreciation rights.

     

    
      
         

      

      
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    14.  Restricted
      Stock Awards.
      The
      Committee may grant restricted stock awards under the Plan in Shares or
      denominated in units of Shares. The Committee, in its sole discretion, may
      make
      such awards subject to conditions and restrictions, as set forth in the
      instrument evidencing the award, which may be based on continuous service with
      the Company or the attainment of certain performance goals related to profits,
      profit growth, cash-flow or shareholder returns, where such goals may be stated
      in absolute terms or relative to comparison companies or indices to be achieved
      during a period of time.

    

    15.  Administration
      of this Plan.

    

    (a)  This
      Plan
      shall be administered by the Committee, which shall consist of not less than
      two
      Directors. The Committee shall have all of the powers of the Board with respect
      to this Plan. Any member of the Committee may be removed at any time, with
      or
      without cause, by resolution of the Board and any vacancy occurring in the
      membership of the Committee may be filled by appointment by the
      Board.

    

    (b)  Subject
      to the provisions of this Plan, the Committee shall have the authority, in
      its
      sole discretion, to:  (i) grant Options, (ii) determine the
      exercise price per Share at which Options may be exercised, (iii) determine
      the Optionees to whom, and time or times at which, Options shall be granted,
      (iv) determine the number of Shares to be represented by each Option,
      (v) determine the terms, conditions and provisions of each Option granted
      (which need not be identical) and, with the consent of the holder thereof,
      modify or amend each Option, (vi) defer (with the consent of the Optionee)
      or accelerate the exercise date of any Option, and (vii) make all other
      determinations deemed necessary or advisable for the administration of this
      Plan, including re-pricing, canceling and regranting Options.

    

    (c)  The
      Committee, from time to time, may adopt rules and regulations for carrying
      out
      the purposes of this Plan. The Committee’s determinations and its interpretation
      and construction of any provision of this Plan shall be final, conclusive and
      binding upon all Optionees and any holders of any Options granted under this
      Plan.

    

    (d)  Any
      and
      all decisions or determinations of the Committee shall be made either (i) by
      a
      majority vote of the members of the Committee at a meeting of the Committee
      or
      (ii) without a meeting by the unanimous written approval of the members of
      the
      Committee.

    

    (e)  No
      member
      of the Committee, or any Officer or Director of the Company or its Subsidiaries,
      shall be personally liable for any act or omission made in good faith in
      connection with this Plan.

    

    16.  Incentive
      Options for 10% Stockholders.
      Notwithstanding any other provisions of this Plan to the contrary, an Incentive
      Stock Option shall not be granted to any person owning directly or indirectly
      (through attribution under Section 424(d) of the Code) at the date of grant,
      stock possessing more than 10% of the total combined voting power of all classes
      of stock of the Company (or of its Subsidiary) at the date of grant unless
      the
      exercise price of such Option is at least 110% of the Fair Market Value of
      the
      Shares subject to such Option on the date the Option is granted, and such Option
      by its terms is not exercisable after the expiration of 10 years from the date
      such Option is granted.

    

    
      
         

      

      
        10
          of
          11

        
          

        

      

      
         

      

    

    

    17.  Interpretation.

    

    (a)  This
      Plan
      shall be administered and interpreted so that all Incentive Stock Options
      granted under this Plan will qualify as Incentive Stock Options under Section
      422 of the Code. If any provision of this Plan should be held invalid for the
      granting of Incentive Stock Options or illegal for any reason, such
      determination shall not affect the remaining provisions hereof, and this Plan
      shall be construed and enforced as if such provision had never been included
      in
      this Plan.

    (b)  This
      Plan
      shall be governed by the laws of the State of Florida.

    

    (c)  Headings
      contained in this Plan are for convenience only and shall in no manner be
      construed as part of this Plan or affect the meaning or interpretation of any
      part of this Plan.

    

    (d)  Any
      reference to the masculine, feminine, or neuter gender shall be a reference
      to
      such other gender as is appropriate.

    

    (e)  Time
      shall be of the essence with respect to all time periods specified for the
      giving of notices to the company hereunder, as well as all time periods for
      the
      expiration and termination of Options in accordance with Section 9 hereof (or
      as
      otherwise set forth in an option agreement).

    

    18.  Amendment
      and Discontinuation of this Plan.
      Either
      the Board or the Com-mittee may from time to time amend this Plan or any Option
      without the consent or approval of the stockholders of the Company; provided,
      however, that, except to the extent provided in Section 9, no amendment or
      suspension of this Plan or any Option issued hereunder shall substantially
      impair any Option previously granted to any Optionee without the consent of
      such
      Optionee.

    

    19.  Termination
      Date.
      This
      Plan shall terminate ten years after the date of adoption by the Board of
      Directors.

    

    
      
         

      

      
        11
          of
          11EXHIBIT
      10.1

     

    SERVICES
      AGREEMENT

     

    This
      Services Agreement (this “Agreement”)
      is
      made as of February 1, 2007 by and between Applied Medical Devices, Inc., a
      Colorado corporation (the “Company”)
      and
      Fountainhead Capital Partners Limited, an entity registered in Jersey
      (“FHCP”)
      (each
      a “Party”
and
      collectively referred to hereafter as the “Parties”).

     

    WITNESSETH:

    

    WHEREAS,
      the Company is a shell corporation with limited resources to pursue its business
      plan and maintain its status as a publicly-reporting company. 

     

    WHEREAS,
      FHCP has substantial experience in corporate governance and management and
      has
      substantial expertise and contacts which are of value to the Company in the
      identification of prospective business opportunities for the Company and sources
      of financing;

     

    WHEREAS,
      the business plan of the Company is the identification of a suitable target
      for
      a potential merger or acquisition transaction commonly known as a “reverse
      merger” or “alternative public offering” transaction;

     

    WHEREAS,
      to facilitate pursuing the Company’s operation and pursuit of the goals stated
      in its business plan, the Company desires to engage FHCP to provide the services
      specified in this Agreement;

     

    NOW,
      THEREFORE, in consideration of the premises and the mutual covenants herein
      contained and for other good and valuable consideration, the receipt and
      adequacy of which are hereby acknowledged, the Parties, intending to be legally
      bound, hereby agree in good faith as follows:

     

    1. Services.
      The
      services which FHCP shall provide under this Agreement, shall include the
      following:

     

    (a)
      FHCP
      will
      familiarize itself to the extent it deems appropriate with the business,
      operations, financial condition and prospects of the Company;

     

    (b)
      At
      the
      request of the Company’s management, FHCP will provide strategic advisory
      services relative to the achievement of the Company’s business
      plan;

     

    (c)
      FHCP
      will
      undertake to identify potential merger and acquisition targets for the Company
      and assist in the analysis of proposed transactions;

     

    (d)
      FHCP
      will
      assist the Company in identifying potential investment bankers, placement agents
      and broker-dealers who are qualified to act on behalf of the Company to achieve
      its strategic goals.

     

    (e)
      FHCP
      will
      assist in the identification of potential investors which might have an interest
      in evaluating participation in financing transactions with the
      Company;

     

    (f)
      FHCP
      will
      assist the Company in the negotiation of merger, acquisition and corporate
      finance transactions;

     

    (g)
      At
      the
      request of the Company’s management, FHCP will provide advisory services related
      to corporate governance and matters related to the maintenance of the Company’s
      status as a publicly-reporting company; and

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (h)
      At
      the
      request of the Company’s management, FHCP will assist the Company in satisfying
      various corporate compliance matters.

     

    FHCP
      is
      not a licensed broker-dealer. Under no circumstances will FHCP engage in any
      activities which would require licensure as a broker-dealer or
      otherwise.

    

    2. Term
      and Termination.
      The
      term of this engagement shall be for a period of twelve (12) months commencing
      with the date of this Agreement and may be extended upon the mutual written
      agreement of the Parties. 

     

    3. Consideration.
      In
      consideration for FHCP providing the services set forth in Section 1 above,
      the
      Company will pay to FHCP a quarterly fee of $10,000.00, payable in cash or,
      at
      the option of FHCP, in kind, on the first day of each calendar quarter
      commencing February 1, 2007. 

     

    4. Notices.
      All
      notices, requests, demands, claims, and other communications hereunder shall
      be
      in writing. Any notice, request, demand, claim or other communication hereunder
      shall be deemed duly delivered four business days after it is sent by registered
      or certified mail, return receipt requested, postage prepaid, or one business
      day after it is sent for next business day delivery via a reputable overnight
      courier service, in each case to the intended recipient as set forth
      below:

     

    

    
      	
              If
                to the Company:

               

              Applied
                Medical Devices, Inc.

              5528
                Westcott Circle

              Frederick,
                Maryland 21703

               

              Attention:
                Thomas W. Colligan.

            	
              Copy
                to:

               

              Law
                Offices of Robert Diener

              122
                Ocean Park Boulevard

              Suite
                307

              Santa
                Monica, California 90405

               

              Attention:
                Robert Diener

            
	
              If
                to the FHCP:

               

              Fountainhead
                Capital Partners Limited

              Portman
                House

              Hue
                Street, St. Helier

              Jersey
                JE4 5RP

               

              Attention:
                Richard Breeze

            	 

    

     

    Any
      Party
      may give any notice, request, demand, claim or other communication hereunder
      using any other means (including personal delivery, expedited courier, messenger
      service, telecopy, telex, ordinary mail or electronic mail), but no such notice,
      request, demand, claim or other communication shall be deemed to have been
      duly
      given unless and until it actually is received by the party for whom it is
      intended. Any party may change the address to which notices, requests, demands,
      claims, and other communications hereunder are to be delivered by giving the
      other party notice in the manner herein set forth.

     

    5. Miscellaneous.

     

    (a)
      Entire
      Agreement.
      This
      Agreement constitutes the entire agreement among the Parties and supersedes
      any
      prior understandings, agreements or representations by or among the Parties,
      written or oral, with respect to the subject matter hereof.

     

    (b)
      Succession
      and Assignment.
      This
      Agreement shall be binding upon and inure to the benefit of the Parties named
      herein and their respective successors and permitted assigns. No Party may
      assign either this Agreement or any of its rights, interests or obligations
      hereunder without the prior written approval of the other party.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (c)
      Counterparts
      and Facsimile Signature.
      This
      Agreement may be executed in two or more counterparts, each of which shall
      be
      deemed an original but all of which together shall constitute one and the same
      instrument. This Agreement may be executed by facsimile signature.

     

    (d)
      Headings.
      The
      section headings contained in this Agreement are inserted for convenience only
      and shall not affect in any way the meaning or interpretation of this
      Agreement.

     

    (e)
      Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the internal
      laws of the State of New York without giving effect to any choice or conflict
      of
      law provision or rule (whether of the State of New York or any other
      jurisdiction) that would cause the application of laws of any jurisdictions
      other than those of the State of New York.
      The
      Parties hereby consent to the exclusive jurisdiction of the courts of the State
      of New York located in Brooklyn County and the United States District Court
      for
      the Southern District of New York for all disputes arising under this
      Agreement.

     

    (f)
      Amendments
      and Waivers.
      The
      Parties may mutually amend any provision of this Agreement at any time during
      the term of this Agreement prior to the termination of this Agreement. No
      amendment of any provision of this Agreement shall be valid unless the same
      shall be in writing and signed by the Parties. No waiver of any right or remedy
      hereunder shall be valid unless the same shall be in writing and signed by
      the
      party giving such waiver. No waiver by any party with respect to any default,
      misrepresentation or breach of warranty or covenant hereunder shall be deemed
      to
      extend to any prior or subsequent default, misrepresentation or breach of
      warranty or covenant hereunder or affect in any way any rights arising by virtue
      of any prior or subsequent such occurrence.

     

    (g)
      Severability.
      Any
      term or provision of this Agreement that is invalid or unenforceable in any
      situation in any jurisdiction shall not affect the validity or enforceability
      of
      the remaining terms and provisions hereof or the validity or enforceability
      of
      the offending term or provision in any other situation or in any other
      jurisdiction. If the final judgment of a court of competent jurisdiction
      declares that any term or provision hereof is invalid or unenforceable, the
      Parties agree that the court making the determination of invalidity or
      unenforceability shall have the power to limit the term or provision, to delete
      specific words or phrases, or to replace any invalid or unenforceable term
      or
      provision with a term or provision that is valid and enforceable and that comes
      closest to expressing the intention of the invalid or unenforceable term or
      provision, and this Agreement shall be enforceable as so modified.

     

    (h)
      Construction.
      The
      language used in this Agreement shall be deemed to be the language chosen by
      the
      Parties to express their mutual intent, and no rule of strict construction
      shall
      be applied against any party. Any
      reference to any federal, state, local or foreign statute or law shall be deemed
      also to refer to all rules and regulations promulgated thereunder, unless the
      context requires otherwise.

     

    (i)
      Remedies. FHCP
      shall be entitled to enforce its rights under this Agreement specifically to
      recover damages by reason of any breach of any provision or term of this
      Agreement and to exercise all other rights existing in its favor. In the event
      of any dispute under this Agreement, the prevailing party shall be entitled
      to
      recover its costs incurred in connection with the resolution thereof, including
      reasonable attorneys fees. 

     

    IN
      WITNESS WHEREOF, the parties hereto have duly executed this Agreement as an
      instrument under seal as of the date first written above. 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    
      	Applied
              Medical Devices, Inc.	 	 	 
	 	 	 	 	 
	By: 	
              /s/
                Thomas W. Colligan

            	 	 	
            
	Name:	
              

               Thomas
                W. Colligan

            	 	 	
            
	Title:	President	 	 	
            

    

    

      
        	 	 	 	 	 
	Fountainhead
                Capital Partners Limited	 	 	 
	 	 	 	 
	By: 	/s/
                Gisele Le Miere	 	 	
              
	Name:	
                
Gisele
                Le Miere	 	 	
              
	Title: 	Director	 	 	
              

      

      
        	 	 	 	 	 
	By: 	/s/
                Carole
                Dodge	 	 	
              
	Name:	
                
Carole
                Dodge	 	 	
              
	Title:  	Director

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