Document:

Exhibit
10.1

ALLIANT TECHSYSTEMS INC.

2005 STOCK INCENTIVE PLAN

(As Amended and Restated Effective July 31, 2007)

Section 1.   Purpose of the Plan;
Effect on Prior Plans.

(a)           Purpose of the Plan.   The purpose of the Plan is to aid
the Company in recruiting and retaining employees, officers and non-employee
Directors capable of assuring the future success of the Company through the
grant of Awards to such persons under the Plan. The Company expects that Awards
of stock-based compensation and opportunities for stock ownership in the
Company will provide incentives to Plan participants to exert their best
efforts for the success of the Company’s business and thereby align the
interests of Plan participants with those of the Company’s stockholders.

(b)           Effect on Prior Plans.   From and after the date of
stockholder approval of the Plan, no awards shall be granted under the Company’s
Amended and Restated 1990 Equity Incentive Plan, as amended, but all
outstanding awards previously granted under that plan shall remain outstanding
in accordance with their terms. From and after the date of stockholder approval
of the Plan, the remaining shares authorized under the Company’s Management
Compensation Plan shall not be awarded or issued. The Company’s Amended and
Restated Non-Employee Director Restricted Stock Plan shall remain in effect,
but no restricted stock awards may be made under that plan after August 6,
2006.

Section 2.   Definitions.

The following
capitalized terms used in the Plan have the meanings set forth in this Section:

(a)           “Affiliate”
means (i) any entity that, directly or indirectly through one or more
intermediaries, is controlled by the Company and (ii) any entity in which
the Company has a significant equity interest, in each case as determined by
the Committee.

(b)           “Award”
means any Option, Stock Appreciation Right, Restricted Stock, Restricted Stock
Unit, Dividend Equivalent, Performance Award, Stock Award or Other Stock-Based
Award granted under the Plan.

(c)           “Award
Agreement” means any written agreement, contract or other instrument or
document evidencing an Award granted under the Plan. Each Award Agreement shall
be subject to the applicable terms and conditions of the Plan and any other
terms and conditions (not inconsistent with the Plan) determined by the
Committee.

(d)           “Board”
means the Board of Directors of the Company.

(e)           “Code”
means the Internal Revenue Code of 1986, as amended from time to time, and any
regulations promulgated thereunder.

(f)            “Committee”
means the Personnel and Compensation Committee of the Board or any successor
committee of the Board designated by the Board to administer the Plan. The
Committee shall be comprised of not less than such number of Directors as shall
be required to permit Awards granted under the Plan to qualify under
Rule 16b-3, and each member of the Committee shall be a “Non-Employee
Director” within the meaning of Rule 16b-3 and an “outside director”
within the meaning of Section 162(m) of the Code. The Company expects
to have the Plan administered in accordance with the requirements for the award
of “qualified performance-based compensation” within the meaning of
Section 162(m) of the Code.

(g)           “Company”
means Alliant Techsystems Inc., a Delaware corporation.

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(h)           “Director”
means a member of the Board.

(i)            “Dividend
Equivalent” means any right granted under Section 6(d) of the Plan.

(j)            “Eligible
Person” means any employee, officer or non-employee Director of the Company or
any Affiliate whom the Committee determines to be an Eligible Person.

(k)           “Exchange
Act” means the Securities Exchange Act of 1934, as amended.

(l)            “Fair
Market Value” means, with respect to any property (including, without
limitation, any Shares or other securities), the fair market value of such
property determined by such methods or procedures as shall be established from
time to time by the Committee. Notwithstanding the foregoing, unless otherwise
determined by the Committee,  the
Fair Market Value of Shares on a given date for purposes of the Plan shall be
the closing sale price  of the
Shares on the New York Stock Exchange as reported in the consolidated
transaction reporting system on such date or, if such Exchange is not open for
trading on such date, on the most recent preceding date when such Exchange is
open for trading.

(m)          “Incentive
Stock Option” means an option granted under Section 6(a) of the Plan
that is intended to meet the requirements of Section 422 of the Code or
any successor provision.

(n)           “Non-Qualified
Stock Option” means an option granted under Section 6(a) of the Plan
that is not intended to be an Incentive Stock Option.

(o)           “Option”
means an Incentive Stock Option or a Non-Qualified Stock Option.

(p)           “Other
Stock-Based Award” means any right granted under Section 6(g) of the
Plan.

(q)           “Participant”
means an Eligible Person who is designated by the Committee to be granted an
Award under the Plan.

(r)            “Performance
Award” means any right granted under Section 6(e) of the Plan.

(s)           “Performance
Goal” means an objective and measurable performance goal or goals providing for
a targeted level or levels of achievement using one or more of the following
measures: (i) sales or revenues (including, without limitation, sales or
revenue growth); (ii) gross profit; (iii) income before interest and
taxes; (iv) income before interest, taxes, depreciation and amortization;
(v) net income; (vi) net income from operations; (vii) earnings
per Share; (viii) return measures (including, without limitation, return
on assets, capital, invested capital, equity, sales or revenues);
(ix) productivity ratios; (x) expense or cost reduction measures;
(xi) margins; (xii) operating efficiency; (xiii) market share; (xiv) orders;
(xv) customer satisfaction; (xvi) working capital targets; (xvii) budget
comparisons; (xviii) implementation or completion of specified projects or
processes; (xix) the formation of joint ventures, establishment of research or
development collaborations or the completion of other transactions; (xx) cash
flow (including, without limitation, operating cash flow, free cash flow and
cash flow return on equity); (xxi) Share price (including, without limitation,
growth in Share price and total stockholder return); (xxii) profitability of an
identifiable business unit or product; (xxiii) economic profit or economic
value added; or (xxiv) cash value added. The foregoing measures may relate to
the Company, one or more of its subsidiaries or one or more of its divisions or
units, or any combination of the foregoing, and may be applied on an absolute
basis and/or be relative to one or more peer group companies or indices, or any
combination thereof, all as the Committee shall determine. On or before the 90th day of the applicable performance period for
which Performance Goals are established, the Committee may specify that the
achievement of the Performance Goals will be calculated without regard to the
negative or positive effect of certain events, including, without limitation,
any of the following events: charges for extraordinary items and other unusual
or non-recurring items of loss or gain; asset impairments; litigation or claim
judgments or settlements; changes in the Code or tax rates; changes in
accounting principles; changes in other laws or regulations affecting reported
results; charges relating to restructurings, discontinued operations, severance
and contract termination and other

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costs incurred in
rationalizing certain business activities; and gains or losses from the
acquisition or disposition of businesses or assets or from the early
extinguishment of debt.

(t)            “Person”
means any individual, corporation, partnership, association or trust.

(u)           “Plan”
means this Alliant Techsystems Inc. 2005 Stock Incentive Plan, as amended from
time to time.

(v)           “Restricted
Stock” means any Share granted under Section 6(c) of the Plan.

(w)          “Restricted
Stock Unit” means any unit granted under Section 6(c) of the Plan
evidencing the right to receive a Share (or a cash payment equal to the Fair
Market Value of a Share) at some future date.

(x)            “Rule 16b-3”
means Rule 16b-3 promulgated by the Securities and Exchange
Commission under the Exchange Act or any successor rule or regulation.

(y)           “Section 162(m)”
means Section 162(m) of the Code, or any successor provision, and the
applicable Treasury Regulations promulgated thereunder.

(z)            “Shares”
means shares of common stock, par value of $0.01 per share, of the Company or
such other securities or property as may become subject to Awards pursuant to
an adjustment made under Section 4(c) of the Plan.

(aa)         “Stock
Appreciation Right” means any right granted under Section 6(b) of the
Plan.

(bb)         “Stock
Award” means any Share granted under Section 6(f) of the Plan.

Section 3.   Administration.

(a)           Power and Authority of the Committee.   The Plan shall
be administered by the Committee. Subject to the express provisions of the Plan
and to applicable law, the Committee shall have full power and authority to:
(i) designate Participants; (ii) determine the type or types of
Awards to be granted to each Participant under the Plan; (iii) determine
the number of Shares to be covered by (or the method by which payments or other
rights are to be calculated in connection with) each Award; (iv) determine
the terms and conditions of any Award or Award Agreement; (v) amend the
terms and conditions of any Award or Award Agreement, provided, however, that,
except as otherwise provided in Section 4(c) hereof, the Committee
shall not reprice, adjust or amend the exercise price of Options or the grant
price of Stock Appreciation Rights previously awarded to any Participant,
whether through amendment, cancellation and replacement grant, or any other
means; (vi) accelerate the exercisability of any Award or the lapse of
restrictions relating to any Award; (vii) determine whether, to what
extent and under what circumstances Awards may be exercised in cash, Shares,
other securities, other Awards or other property, or canceled, forfeited or
suspended; (viii) determine whether, to what extent and under what
circumstances cash, Shares, other securities, other Awards, other property and
other amounts payable to a Participant with respect to an Award under the Plan
shall be deferred either automatically or at the election of the holder of the
Award or the Committee; (ix) interpret and administer the Plan and any
instrument or agreement, including any Award Agreement, relating to the Plan;
(x) establish, amend, suspend or waive such rules and regulations and
appoint such agents as it shall deem appropriate for the proper administration
of the Plan; and (xi) make any other determination and take any other action
that the Committee deems necessary or desirable for the administration of the
Plan. Unless otherwise expressly provided in the Plan, all designations,
determinations, interpretations and other decisions under or with respect to
the Plan or any Award or Award Agreement shall be within the sole discretion of
the Committee, may be made at any time and shall be final, conclusive and
binding upon any Participant, any holder or beneficiary of any Award or Award
Agreement, and any employee of the Company or any Affiliate.

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(b)           Delegation.   The Committee may delegate its powers and
duties under the Plan to one or more Directors (including a Director who is
also an officer of the Company) or a committee of Directors, subject to such
terms, conditions and limitations as the Committee may establish in its sole
discretion; provided, however, that the Committee shall not delegate its powers
and duties under the Plan (i) with regard to officers or directors of the
Company or any Affiliate who are subject to Section 16 of the Exchange Act
or (ii) in such a manner as would cause the Plan not to comply with the
requirements of Section 162(m) of the Code.

(c)           Power and Authority of the Board of Directors.   Notwithstanding
anything to the contrary contained herein, the Board may, at any time and from
time to time, without any further action of the Committee, exercise the powers
and duties of the Committee under the Plan, unless the exercise of such powers
and duties by the Board would cause the Plan not to comply with the
requirements of Section 162(m) of the Code.

Section 4.   Shares Available for Awards.

(a)           Shares Available.   Subject to adjustment as provided in
Section 4(c) of the Plan, the aggregate number of Shares that may be
issued under all Awards under the Plan shall be 1,532,360. Shares to be issued
under the Plan will be authorized but unissued Shares or Shares that have been
reacquired by the Company and designated as treasury shares. Shares that are
subject to Awards that terminate, lapse or are cancelled or forfeited shall be
available again for grant under the Plan. Shares that are tendered by a
Participant or withheld by the Company as full or partial payment to the
Company of the purchase or exercise price relating to an Award or to satisfy
tax withholding obligations relating to an Award shall not be available for
future grants under the Plan. In addition, if Stock Appreciation rights are
settled in Shares upon exercise, the aggregate number of Shares subject to the
Award rather than the number of Shares actually issued upon exercise shall be
counted against the number of Shares authorized under the Plan.

(b)           Accounting for Awards.   For purposes of this
Section 4, if an Award entitles the holder thereof to receive or purchase
Shares, the number of Shares covered by such Award or to which such Award
relates shall be counted on the date of grant of such Award against the aggregate
number of Shares available for granting Awards under the Plan.

(c)           Adjustments.   In the event that an equity
restructuring, as defined as a nonreciprocal transaction between the Company
and its stockholders that causes the per-share fair value of the Shares
underlying an Option or similar Award to change (e.g.,
stock dividend, stock split, spinoff, etc.), has
occurred, the Committee shall make an equitable adjustment to (i) the
number and type of Shares (or other securities) that thereafter may be made the
subject of Awards, (ii) the number and type of Shares (or other
securities) subject to outstanding Awards and (iii) the purchase or
exercise price with respect to any Award.

In the event that
the Committee shall determine that an event other than an equity restructuring,
as defined above, affects the Shares such that an adjustment is determined by
the Committee to be appropriate in order to prevent dilution or enlargement of
the benefits or potential benefits intended to be made available under the Plan,
then the Committee shall, in such manner as it may deem equitable, adjust any
or all of (i) the number and type of Shares (or other securities or other
property) that thereafter may be made the subject of Awards, (ii) the
number and type of Shares (or other securities or other property) subject to
outstanding Awards and (iii) the purchase or exercise price with respect
to any Award.

(d)           Award Limitations Under the Plan.

(i)            Section 162(m) Limitation for Certain Types of Awards.   No
Participant may be granted Options, Stock Appreciation Rights or any other
Award or Awards under the Plan, the value of which Award or Awards is based
solely on an increase in the value of the Shares after the date of grant of
such Award or Awards, for more than 100,000 Shares (subject to adjustment as
provided in

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Section 4(c) of
the Plan) in the aggregate in any calendar year. The foregoing annual
limitation specifically applies to any Award or Awards representing “qualified
performance-based compensation” within the meaning of Section 162(m) of
the Code.

(ii)           Section 162(m) Limitation for Performance Awards.   No
Participant may be granted Performance Awards in excess of 150,000 Shares
(subject to adjustment as provided in Section 4(c) of the Plan) in
the aggregate in any calendar year. This limitation does not apply to any Award
subject to the limitation contained in Section 4(d)(i) of the Plan.

(iii)          Plan Limitation on Restricted Stock, Restricted Stock Units, Dividend
Equivalents, Performance Awards and Stock Awards.   No more than 1,500,000 Shares
(subject to adjustment as provided in Section 4(c) of the Plan) shall
be available under the Plan for issuance pursuant to grants of Restricted
Stock, Restricted Stock Units, Dividend Equivalents, Performance Awards and
Stock Awards; provided, however, that Shares subject to such Awards that
terminate, lapse or are cancelled or forfeited shall again be available for
grants of Restricted Stock, Restricted Stock Units, Dividend Equivalents,
Performance Awards and Stock Awards for purposes of this limitation on grants
of such Awards. Of the 1,500,000 Shares authorized under this
Section 4(d)(iii), only 50,000 Shares may be used for Stock Awards in
accordance with Section 6(f) of the Plan.

(iv)          Limitation on Awards Granted to Non-Employee Directors.   Directors
who are not also employees of the Company or an Affiliate may not be granted
Awards in the aggregate for more than 5% of the Shares available for Awards
under the Plan, subject to adjustment as provided in Section 4(c) of
the Plan.

(v)           Limitation on Incentive Stock Options.   The number of
Shares available for granting Incentive Stock Options under the Plan shall not
exceed 100,000, subject to adjustment as provided in Section 4(c) of
the Plan and subject to the provisions of Section 422 or 424 of the Code
or any successor provision.

Section 5.   Eligibility.

Any Eligible Person may be designated to be a
Participant. In determining which Eligible Persons shall receive an Award and
the terms of any Award, the Committee may take into account the nature of the
services provided by the respective Eligible Persons, their present and
potential contributions to the success of the Company or such other factors as
the Committee, in its discretion, shall deem relevant. Notwithstanding the
foregoing, an Incentive Stock Option may only be granted to full-time or
part-time employees (which term as used herein includes, without limitation,
officers and Directors who are also employees), and an Incentive Stock Option
shall not be granted to an employee of an Affiliate unless such Affiliate is
also a “subsidiary corporation” of the Company within the meaning of
Section 424(f) of the Code or any successor provision.

Section 6.   Awards.

(a)           Options.   The Committee may grant Options with the
following terms and conditions and with such additional terms and conditions
not inconsistent with the provisions of the Plan as the Committee shall
determine:

(i)            Exercise Price.   The purchase price per Share
purchasable under an Option shall be determined by the Committee and shall not
be less than 100% of the Fair Market Value of a Share on the date of grant of
such Option;  provided, however,
that the Committee may designate a per share exercise price below Fair Market
Value on the date of grant if the Option is granted in substitution for a stock
option previously granted by an entity that is acquired by or merged with the
Company or an Affiliate.

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(ii)           Option Term.   The term of each Option shall be fixed by
the Committee but shall not be longer than 10 years from the date of grant.

(iii)          Time and Method of Exercise.   The Committee shall
determine the time or times at which an Option may be exercised in whole or in
part and the method or methods by which, and the form or forms (including,
without limitation, cash, Shares, other securities, other Awards or other
property, or any combination thereof, having a Fair Market Value on the
exercise date equal to the applicable exercise price) in which, payment of the
exercise price with respect thereto may be made or deemed to have been made.

(b)           Stock Appreciation Rights.   The Committee may grant
Stock Appreciation Rights subject to the terms of the Plan and such additional
terms and conditions not inconsistent with the provision of the Plan as the
Committee shall determine. A Stock Appreciation Right granted under the Plan
shall confer on the holder thereof a right to receive upon exercise thereof the
excess of (i) the Fair Market Value of one Share on the date of exercise
over (ii) the grant price of the Stock Appreciation Right as specified by
the Committee, which price shall not be less than 100% of the Fair Market Value
of one Share on the date of grant of the Stock Appreciation Right; provided,
however, that the Committee may designate a per share grant price below Fair
Market Value on the date of grant if the Stock Appreciation Right is granted in
substitution for a stock appreciation right previously granted by an entity
that is acquired by or merged with the Company or an Affiliate.

(c)           Restricted Stock and Restricted Stock Units.   The
Committee may grant Awards of Restricted Stock and Restricted Stock Units with
the following terms and conditions and with such additional terms and
conditions not inconsistent with the provisions of the Plan as the Committee
shall determine:

(i)            Restrictions.   Shares of Restricted Stock and
Restricted Stock Units shall be subject to such restrictions as the Committee
may impose (including, without limitation, any limitation on the right to vote
a Share of Restricted Stock or the right to receive any dividend or other right
or property with respect thereto), which restrictions may lapse separately or
in combination at such time or times, in such installments or otherwise, as the
Committee may deem appropriate. The minimum vesting period of such Awards shall
be one year from the date of grant. Notwithstanding the foregoing, the
Committee may permit acceleration of vesting of such Awards in the event of the
Participant’s death, disability or retirement or a change in control of the
Company.

(ii)           Issuance and Delivery of Shares.   Any Restricted Stock
granted under the Plan shall be issued at the time such Awards are granted and
may be evidenced in such manner as the Committee may deem appropriate,
including book-entry registration or issuance of a stock certificate or
certificates, which certificate or certificates shall be held by the Company.
Such certificate or certificates shall be registered in the name of the
Participant and shall bear an appropriate legend referring to the restrictions
applicable to such Restricted Stock. Shares representing Restricted Stock that
is no longer subject to restrictions shall be delivered to the Participant
promptly after the applicable restrictions lapse or are waived. In the case of
Restricted Stock Units, no Shares shall be issued at the time such Awards are granted.
Upon the lapse or waiver of restrictions and the restricted period relating to
Restricted Stock Units evidencing the right to receive Shares, such Shares
shall be issued and delivered to the holder of the Restricted Stock Units.

(iii)          Forfeiture.   Except
as otherwise determined by the Committee, upon a Participant’s termination of
employment or resignation or removal as a Director (in either case, as
determined under criteria established by the Committee) during the applicable
restriction period, all Shares of Restricted Stock and all Restricted Stock
Units held by the Participant at such time shall be forfeited and reacquired by
the Company; provided, however, that the Committee may, when it finds that a
waiver would be in the best interest of the Company, waive in whole or in part
any or all remaining restrictions with respect to Shares of Restricted Stock or
Restricted Stock Units.

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(d)           Dividend Equivalents.   The Committee may grant Dividend
Equivalents under which the Participant shall be entitled to receive payments
(in cash, Shares, other securities, other Awards or other property as
determined in the discretion of the Committee) equivalent to the amount of any
cash dividends paid by the Company to holders of Shares with respect to a
number of Shares determined by the Committee. Subject to the terms of the Plan,
such Dividend Equivalents may have such terms and conditions as the Committee
shall determine.

(e)           Performance Awards.   The Committee may grant
Performance Awards denominated in Shares that may be settled or payable in
Shares (including, without limitation, Restricted Stock or  Restricted Stock Units) or cash.
Performance Awards granted to Participants who may be “covered employees” under
Section 162(m) of the Code are intended to be “qualified
performance-based compensation” within the meaning of Section 162(m).
Performance Awards shall, to the extent required by Section 162(m), be
conditioned solely on the achievement of one or more objective Performance
Goals, and such Performance Goals shall be established by the Committee within
the time period prescribed by, and shall otherwise comply with the requirements
of, Section 162(m). Subject to the terms of the Plan and any applicable
Award Agreement, the Performance Goals to be achieved during any performance
period, the length of any performance period, the amount of any Performance
Award granted, the amount of any payment or transfer to be made pursuant to any
Performance Award, and any other terms and conditions of any Performance Award
shall be determined by the Committee. The Committee shall also certify in
writing that such Performance Goals have been met prior to payment of the
Performance Awards to the extent required by Section 162(m).

(f)            Stock Awards.   The Committee may grant Shares without
restrictions thereon, but only for the purpose of paying annual incentive
compensation earned by an Eligible Person that otherwise would have been paid
in cash by the Company. Subject to the terms of the Plan, Stock Awards may have
such terms and conditions as the Committee shall determine.

(g)           Other Stock-Based Awards.   The Committee may grant such
other Awards that are denominated or payable in, valued in whole or in part by
reference to, or otherwise based on or related to, Shares (including, without
limitation, securities convertible into Shares), as are deemed by the Committee
to be consistent with the purpose of the Plan. The Committee shall determine
the terms and conditions of such Awards, subject to the terms of the Plan and
the Award Agreement. Shares, or other securities delivered pursuant to a
purchase right granted under this Section 6(g), shall be purchased for
consideration having a value equal to at least 100% of the Fair Market Value of
such Shares or other securities on the date the purchase right is granted.

(h)           General.

(i)            Consideration for Awards.   Awards may be granted for no
cash consideration or for any cash or other consideration as may be determined
by the Committee or required by applicable law.

(ii)           Awards May Be Granted Separately or Together.   Awards
may, in the discretion of the Committee, be granted either alone or in addition
to, in tandem with or in substitution for any other Award or any award granted
under any other plan of the Company or any Affiliate. Awards granted in
addition to or in tandem with other Awards or in addition to or in tandem with
awards granted under any other plan of the Company or any Affiliate may be
granted either at the same time as or at a different time from the grant of
such other Awards or awards.

(iii)          Forms of Payment under
Awards.   Subject to the terms of the Plan and of any applicable
Award Agreement, payments or transfers to be made by the Company or an
Affiliate upon the grant, exercise or payment of an Award may be made in such
form or forms as the Committee shall determine (including, without limitation,
cash, Shares, other securities, other Awards or other property, or any
combination thereof), and may be made in a single payment or transfer, in

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installments or on a
deferred basis, in each case in accordance with rules and procedures
established by the Committee. Such rules and procedures may include,
without limitation, provisions for the payment or crediting of reasonable
interest on installment or deferred payments or the grant or crediting of
Dividend Equivalents with respect to installment or deferred payments.

(iv)          Term of Awards.   The term of each Award shall be for a
period not longer than 10 years from the date of grant.

(v)           Limits on Transfer of Awards.   No Award and no right
under any such Award shall be transferable by a Participant other than (1) by
will or by the laws of descent and distribution or (2) by transfer of an Award
back to the Company, including a transfer of an Award (but not any Stock
Options) to the Company in connection with a deferral election under a Company
deferred compensation plan. The Committee may establish procedures as it deems
appropriate for a Participant to designate a Person or Persons, as beneficiary
or beneficiaries, to exercise the rights of the Participant and receive any
property distributable with respect to any Award in the event of the
Participant’s death. Each Award under the Plan or right under any such Award
shall be exercisable during the Participant’s lifetime only by the Participant
or, if permissible under applicable law, by the Participant’s guardian or legal
representative. No Award or right under any such Award may be pledged,
alienated, attached or otherwise encumbered, and any purported pledge,
alienation, attachment or encumbrance thereof shall be void and unenforceable against
the Company or any Affiliate.

(vi)          Restrictions; Securities Exchange Listing.   All Shares
or other securities delivered under the Plan pursuant to any Award or the
exercise thereof shall be subject to such restrictions as the Committee may
deem advisable under the Plan, applicable federal or state securities laws and
regulatory requirements, and the Committee may cause appropriate entries to be
made or legends to be placed on the certificates for such Shares or other
securities to reflect such restrictions. If the Shares or other securities are
traded on a securities exchange, the Company shall not be required to deliver
any Shares or other securities covered by an Award unless and until such Shares
or other securities have been admitted for trading on such securities exchange.

Section 7.   Amendment
and Termination; Corrections.

(a)           Amendments to the Plan.   The Board of Directors of the
Company may amend, alter, suspend, discontinue or terminate the Plan; provided,
however, that, notwithstanding any other provision of the Plan or any Award
Agreement, prior approval of the stockholders of the Company shall be required
for any amendment to the Plan that:

(i)            requires
stockholder approval under the rules or regulations of the Securities and
Exchange Commission, the New York Stock Exchange, any other securities exchange
or the National Association of Securities Dealers, Inc. that are
applicable to the Company;

(ii)           increases
the number of shares authorized under the Plan as specified in
Section 4(a) of the Plan;

(iii)          increases the number of shares subject to the
limitations contained in Section 4(d) of the Plan;

(iv)          permits
repricing of Options or Stock Appreciation Rights which is prohibited by
Section 3(a)(v) of the Plan;

(v)           permits the
award of Options or Stock Appreciation Rights at a price less than 100% of the
Fair Market Value of a Share on the date of grant of such Option or Stock
Appreciation Right, contrary to the provisions of Sections 6(a)(i) and
6(b)(ii) of the Plan; or

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(vi)          would
cause Section 162(m) of the Code to become unavailable with respect
to the Plan.

(b)           Amendments to Awards.   Subject to the provisions of the
Plan, the Committee may waive any conditions of or rights of the Company under
any outstanding Award, prospectively or retroactively. Except as otherwise
provided in the Plan, the Committee may amend, alter, suspend, discontinue or
terminate any outstanding Award, prospectively or retroactively, but no such
action may adversely affect the rights of the holder of such Award without the
consent of the Participant or holder or beneficiary thereof.

(c)           Correction of Defects, Omissions and Inconsistencies.   The
Committee may correct any defect, supply any omission or reconcile any
inconsistency in the Plan or in any Award or Award Agreement in the manner and
to the extent it shall deem desirable to implement or maintain the
effectiveness of the Plan.

Section 8.   Tax
Withholding.

The Company may take such action as it deems
appropriate to withhold or collect from a Participant the applicable federal,
state, local or foreign payroll, withholding, income or other taxes that are
required to be withheld or collected by the Company upon the grant, exercise,
vesting or payment of an Award. The Committee may require the Company to
withhold Shares having a Fair Market Value equal to the amount necessary to
satisfy the Company’s minimum statutory withholding requirements upon the
grant, exercise, vesting or payment of an Award from Shares that otherwise
would have been delivered to a Participant. The Committee may, subject to any
terms and conditions that the Committee may adopt, permit a Participant to
elect to pay all or a portion of the minimum statutory withholding taxes by
(a) having the Company withhold Shares otherwise to be delivered upon the
grant, exercise, vesting or payment of an Award with a Fair Market Value equal
to the amount of such taxes, (b) delivering to the Company Shares other
than Shares issuable upon the grant, exercise, vesting or payment of an Award
with a Fair Market Value equal to the amount of such taxes or (c) paying
cash. Any such election must be made on or before the date that the amount of tax
to be withheld is determined.

Section 9.   General
Provisions.

(a)           No Rights to Awards.   No Eligible Person, Participant
or other Person shall have any claim to be granted any Award under the Plan,
and there is no obligation for uniformity of treatment of Eligible Persons,
Participants or holders or beneficiaries of Awards under the Plan. The terms
and conditions of Awards need not be the same with respect to any Participant
or with respect to different Participants.

(b)           Award Agreements.   No Participant shall have rights
under an Award granted to such Participant unless and until an Award Agreement
shall have been duly executed on behalf of the Company and, if requested by the
Company, signed by the Participant.

(c)           No Rights of Stockholders.   Except with respect to
Restricted Stock and Stock Awards, neither a Participant nor the Participant’s
legal representative shall be, or have any of the rights and privileges of, a
stockholder of the Company with respect to any Shares issuable upon the
exercise or payment of any Award, in whole or in part, unless and until the
Shares have been issued.

(d)           No Limit on Other Compensation Plans or Arrangements.   Nothing
contained in the Plan shall prevent the Company or any Affiliate from adopting
or continuing in effect other or additional compensation plans or arrangements.

(e)           No Right to Employment or Directorship.   The grant of
an Award shall not be construed as giving a Participant the right to be
retained as an employee of the Company or any Affiliate, or a Director to be
retained as a Director, nor will it affect in any way the right of the Company
or an Affiliate to terminate a Participant’s employment at any time, with or
without cause. In addition, the Company or an Affiliate may

 9
 

at any time dismiss a
Participant from employment free from any liability or any claim under the Plan
or any Award, unless otherwise expressly provided in the Plan or in any Award
Agreement.

(f)            Governing Law.   The internal law, and not the law of
conflicts, of the State of Delaware, shall govern all questions concerning the
validity, construction and effect of the Plan or any Award, and any
rules and regulations relating to the Plan or any Award.

(g)           Severability.   If any provision of the Plan or any
Award is or becomes or is deemed to be invalid, illegal or unenforceable in any
jurisdiction or would disqualify the Plan or any Award under any law deemed
applicable by the Committee, 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 determination of the Committee, materially
altering the purpose or intent of the Plan or the Award, such provision shall
be stricken as to such jurisdiction or Award, and the remainder of the Plan or
any such Award shall remain in full force and effect.

(h)           No Trust or Fund Created.   Neither the Plan nor any
Award shall create or be construed to create a trust or separate fund of any
kind or a fiduciary relationship between the Company or any Affiliate and a
Participant or any other Person. To the extent that any Person acquires a right
to receive payments from the Company or any Affiliate pursuant to an Award,
such right shall be no greater than the right of any unsecured general creditor
of the Company or any Affiliate.

(i)            Securities Matters.   The Company shall not be required
to deliver any Shares until the requirements of any federal or state securities
or other laws, rules or regulations (including the rules of any
securities exchange) as may be determined by the Company to be applicable are
satisfied.

(j)            No Fractional Shares.   No fractional Shares shall be
issued or delivered pursuant to the Plan or any Award, and the Committee shall
determine whether cash shall be paid in lieu of any fractional Share or whether
such fractional Share or any rights thereto shall be canceled, terminated or
otherwise eliminated.

(k)           Headings.   Headings are given to the Sections and
subsections of the Plan solely as a convenience to facilitate reference. Such
headings shall not be deemed in any way material or relevant to the
construction or interpretation of the Plan or any provision thereof.

Section 10.   Effective
Date of the Plan.

The Plan shall be subject to approval by the
stockholders of the Company at the annual meeting of stockholders of the
Company to be held on August 2, 2005 and the Plan shall be effective as of
the date of such stockholder approval. Any amendments to the Plan that require
stockholder approval pursuant to Section 7(a) of the Plan shall be
effective as of the date of stockholder approval of such amendments.

Section 11.   Term of the
Plan.

The Plan shall terminate at midnight on August 1,
2015, unless terminated before then by the Board. Awards may be granted under
the Plan until the Plan terminates or until all Shares available for Awards
under the Plan have been purchased or acquired; provided, however, that
Incentive Stock Options may not be granted following the 10-year
anniversary of the Board’s adoption of the Plan. The Plan shall remain in
effect as long as any Awards are outstanding.

 10Exhibit
10.1

INDEMNIFICATION AGREEMENT

This Indemnification Agreement (this “Agreement”)
is made and entered into as of the 5th day of July, 2007, between CLST
Holdings, Inc. (formerly known as CellStar Corporation), a Delaware corporation
(the “Company”), and  Sherrian Gunn (“Indemnitee”).

WHEREAS, Indemnitee is a director or an officer of the Company; and

WHEREAS, the Company is aware that
because of the increased exposure to litigation subjecting directors and
officers to expensive litigation risks, talented and experienced persons are
increasingly reluctant to serve or continue to serve as directors and officers
of corporations unless they are appropriately indemnified; and

WHEREAS, the Company is also aware that
statutes and judicial decisions regarding the duties of directors and officers
are often difficult to apply, ambiguous or conflicting and therefore fail to
provide directors with adequate guidance regarding the proper course of action;
and

WHEREAS, the Company desires to attract
and retain the services of highly experienced and capable individuals, such as
Indemnitee, to serve as directors and officers of the Company and to indemnify
its directors and officers to provide them with the maximum protection
permitted by law; and

WHEREAS, the Company believes that it is
fair and proper to protect the Company’s directors and officers from the risk
of judgments, settlements and other expenses which may occur as a result of
their service to the Company, even in cases in which such persons received no
personal profit or were not otherwise culpable; and

WHEREAS, this
Agreement is separate from and in addition to the Bylaws of the Company and any
resolutions adopted pursuant thereto, and shall not be deemed a substitute
therefor, nor to diminish or abrogate any rights of Indemnitee thereunder; and

WHEREAS, each of
Section 145 of the General Corporation Law of the State of Delaware (“DGCL”)
and the Bylaws of the Company is nonexclusive, and therefore contemplates that
contracts may be entered into with respect to indemnification of directors,
officers and employees;

NOW, THEREFORE, in consideration of the
premises and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Company and Indemnitee,
intending to be legally bound, hereby agree as follows:

Section 1.  Definitions. For purposes of this
Agreement, the following terms shall have the meanings set forth below:

(a)           “Change of
Control” shall mean any of the following events:

(i) any consolidation or
merger of the Company in which the Company is not the continuing or surviving
corporation or pursuant to which shares of the Company’s common stock

would be converted into cash, securities or
other property, other than a merger of the Company in which the holders of the
Company’s common stock immediately prior to the merger have the same
proportionate ownership of common stock of the surviving corporation
immediately after the merger (subject to adjustment for rounding or fractional
interests resulting therefrom);

(ii) any sale, lease,
exchange or other transfer (in one transaction or a series of related
transactions) of all or substantially all of the assets of the Company or of
any significant business unit of the Company;

(iii) any approval by
the stockholders of the Company of any plan or proposal for the liquidation or
dissolution of the Company;

(iv) the cessation of
control (by virtue of their not constituting a majority of directors) of the
Company’s Board of Directors by the individuals (the “Continuing Directors”)
who (x) at the date of this Agreement were directors or (y) become directors
after the date of this Agreement and whose election or nomination for election
by the Company’s stockholders, was approved by a vote of at least two-thirds of
the directors then in office who were directors at the date of this Agreement
(or whose election or nomination for election was previously so approved);

(v) (A) the
acquisition of beneficial ownership (“Beneficial Ownership”), within the
meaning of Rule 13d-3 under the Securities Exchange Act of 1934, as amended
(the “Exchange Act”), of an aggregate of fifteen percent (15%) or more of the
voting power of the Company’s outstanding voting securities by any person or
group (as such term is used in Rule 13d-5 under the Exchange Act) who
Beneficially Owned less than ten percent (10%) of the voting power of the
Company’s outstanding voting securities on the Effective Date of this
Agreement, (B) the acquisition of Beneficial Ownership of an additional five
percent (5%) of the voting power of the Company’s outstanding voting securities
by a person or group who Beneficially Owned at least ten percent (10%) of the
voting power of the Company’s outstanding voting securities on the Effective
Date of this Agreement, or (C) the execution by the Company and a stockholder
of a contract that by its terms grants such stockholder (in its, his or her
capacity as a stockholder) or such stockholder’s Affiliate (as defined in Rule
405 promulgated under the Securities Act of 1933 (an “Affiliate”)) including,
without limitation, such stockholder’s nominee to the Company’s Board of
Directors (in its, his or her capacity as an Affiliate of such stockholder),
the right to veto or block decisions or actions of the Company’s Board of
Directors; provided, however, that notwithstanding the foregoing,
the events described in items (A), (B) or (C) above shall not constitute a
Change of Control hereunder if the acquiror is (1) a trustee or other fiduciary
holding securities under an employee benefit plan of Employer, the Company or
one of their affiliated entities and acting in such capacity, (2) a corporation
owned, directly or indirectly, by the stockholders of the Company in
substantially the same proportions as their ownership of voting securities of the
Company, (3) a person or group meeting the requirements of clauses (i) and (ii)
of Rule 13d-1(b)(1) under the Exchange Act or (4) in the case of an acquisition
described in items (A) or (B) above (but not in the case of an acquisition
described in item (C) above), any other person whose ownership or acquisition
of shares of voting securities is approved by a majority of the Continuing
Directors; provided further, that none of the following shall constitute
a Change of Control: (aa) the right of the holders of any voting securities of
the Company to vote as a class on any matter or (bb) any vote required of
disinterested or unaffiliated directors or stockholders including, without
limitation, 

 2
 

pursuant to Section 144
of the Delaware General Corporation Law or Rule 16b-3 promulgated pursuant to
the Exchange Act; or

(vi) subject to
applicable law, in a Chapter 11 bankruptcy proceeding, the appointment of a
trustee or the conversion of a case involving The Company to a case under
Chapter 7.

(b)           “Enterprise”
means any Person of which Indemnitee is or was a Fiduciary.

(c)           “Expenses”
means all direct and indirect costs (including, without limitation, attorneys’
fees, retainers, court costs, transcripts, fees of experts, witness fees,
travel expenses, duplicating costs, printing and binding costs, telephone
charges, postage, delivery service fees, expenses incurred in connection with
any appeal resulting from any Proceeding, including without limitation, the
premium, security fee and other costs relating to any cost bond, supersedeas
bond, or other appeal bond or its equivalent, and all other disbursements or
out-of-pocket expenses) actually incurred in connection with (i) any
Proceeding, (ii) establishing or enforcing any right to indemnification for
Liabilities and expenses or advancement of expenses under this Agreement,
applicable law, any other agreement or provision of the Company’s Certificate
of Incorporation or Bylaws now or hereafter in effect or otherwise, or (iii)
the review and preparation of this Agreement on behalf of Indemnitee; provided,
however, that “Expenses” shall not include any Liabilities.

(d)           “Fiduciary”
means an individual serving as a director, officer, trustee, general partner,
managing member, fiduciary, board of directors’ committee member (including,
without limitation, a committee chairman), employee or agent of (i) the Company
or any Subsidiary, (ii) any resulting corporation in connection with a
consolidation or merger to which the Company or any Subsidiary is a party, or
(iii) any other Person (including an employee benefit plan) at the request of
the Company or any Subsidiary, including any service with respect to an
employee benefit plan, its participants or its beneficiaries.

(e)           “Independent
Counsel” means a nationally recognized law firm, or a member of a
nationally recognized law firm, that is experienced in matters of corporate law
and neither currently is, nor in the five years previous to its selection or
appointment has been, retained to represent the Company or the Indemnitee in
any matter material to either such party. For the avoidance of doubt, any law
firm or member of a law firm that shall have advised either party with respect
to the review and preparation of this Agreement shall not be Independent
Counsel for the purposes of this Agreement.

(f)            “Liabilities”
means liabilities of any type whatsoever incurred by reason of (i) the fact
that Indemnitee is or was a Fiduciary, or (ii) any action taken (or failure to
act) by him or on his behalf in his capacity as a Fiduciary, including, but not
limited to, any judgments, fines (including any excise taxes assessed on
Indemnitee with respect to an employee benefit plan), ERISA excise taxes and
penalties, and penalties and amounts paid in settlement of any Proceeding
(including all interest, assessments and other charges paid or payable in
connection with or in respect of such judgments, fines, penalties or amounts
paid in settlement).

 3
 

(g)           “Person”
means any individual, partnership, joint venture, firm, corporation,
association, limited liability company, trust, estate, governmental unit or
other enterprise or entity, or as the term person is used for purposes of
Section 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended (the “1934
Act”).

(h)
          “Potential Change of Control”
means if (i) the Company enters into an agreement, the consummation of which
would result in the occurrence of a Change of Control; (ii) any Person,
including the Company, publicly announces an intention to take or to consider
taking actions that, if consummated, would constitute a Change of Control; or
(iii) the Board of Directors of the Company adopts a resolution to the effect
that, for purposes of this Agreement, a Potential Change of Control has
occurred.

(i)            “Proceeding”
means any pending or completed investigation, civil or criminal action,
third-party action, derivative action, claim, suit, arbitration, counterclaim,
cross claim, alternative dispute resolution mechanism, inquiry, administrative
hearing or any other proceeding whether civil, criminal, administrative,
legislative or investigative, including any appeal therefrom, in any such case
in which Indemnitee was involved as a party, potential party, non-party witness
or otherwise by reason of (i) the fact that Indemnitee is or was a Fiduciary,
or (ii) any action taken (or failure to act) by him or on his behalf in his
capacity as a Fiduciary.

(j)            “Subsidiary”
means any Person of which a majority of the outstanding voting securities or
other voting equity interests are owned, directly or indirectly, by the
Company.

Section 2.  Services by the Indemnitee. The
Indemnitee agrees to serve as a director or an officer of the Company at the
will of the Company for so long as the Indemnitee is duly elected and
qualified, appointed or until such time as the Indemnitee tenders a resignation
or is removed as a director or an officer. 
This Agreement shall not be deemed to be an employment contract between
the Company (or any Subsidiary of the Company) and Indemnitee, and the
Indemnitee may at any time and for any reason resign from such position.

Section 3.  Indemnification.

(a)           Indemnification.
Subject to the further provisions of this Agreement, the Company shall
indemnify Indemnitee and hold him harmless from and against any and all
Expenses and Liabilities incurred by Indemnitee or on Indemnitee’s behalf, to
the fullest extent permitted by applicable law in effect on the date hereof,
and to such greater extent as applicable law may thereafter permit or
authorize.

(b)           Presumptions.

(i)            Upon
making any request for indemnification for Expenses and Liabilities, or
advancement of Expenses under this Agreement, Indemnitee shall be presumed to
be entitled to such indemnification for Expenses and Liabilities or advancement
of Expenses, as the case may be, under this Agreement and, in connection with
any determination with respect to entitlement to indemnification under Section
4(c) below, the Company shall have the burdens of coming forward with evidence
and by a preponderance of the evidence to

 4
 

overcome
that presumption in connection with the making by any Person of any
determination contrary to that presumption. 
It shall not be a defense or admissible as evidence in any such action
by Indemnitee, nor shall it create a presumption that Indemnitee has not met the
applicable standard of conduct, if (i) any Person fails to have made such
determination prior to the commencement of any action pursuant to this
Agreement that indemnification is proper in the circumstances because
Indemnitee has met the applicable standard of conduct, or (ii) any Person fails
to make an actual determination that Indemnitee has not met any applicable
standard of conduct.

(ii)           For
purposes of any determination of good faith, Indemnitee shall be deemed to have
acted in good faith if Indemnitee’s action is based on (w) the records or books
of account of any Enterprise, including, without limitation, financial
statements, (x) information supplied to Indemnitee by the officers, employees
or other appropriate agents of such Enterprise in the course of their duties,
or (y) the advice of legal counsel for such Enterprise or on information or
records given or reports made to such Enterprise by an independent certified
public accountant or by an appraiser or other expert selected by such
Enterprise. The provisions of this Section 3(b) shall not be deemed to be
exclusive or to limit in any way the other circumstances in which Indemnitee
may be deemed or found to have met the applicable standard of conduct set forth
in this Agreement.

(iii)          If
the Person empowered or selected under Section 4(c) below to determine whether
Indemnitee is entitled to indemnification for Liabilities and Expenses or
advancement of Expenses shall not have made a determination within twenty (20)
calendar days after receipt by the Company of the request therefor, the
requisite determination of entitlement to indemnification for Liabilities and
Expenses or advancement of Expenses shall be deemed to have been made and
Indemnitee shall be entitled to such indemnification for Liabilities and
Expenses or advancement of Expenses, absent (A) a misstatement by Indemnitee of
a material fact in connection with the request for indemnification for
Liabilities and Expenses or advancement of Expenses, or (B) a prohibition of
such indemnification for Liabilities and Expenses or advancement of Expenses
under applicable law; provided that such
20-day period may be extended for a reasonable time, not to exceed an
additional 20 days, if the Person empowered or selected under Section 4(c)
below to determine whether Indemnitee is entitled to indemnification
for Liabilities and Expenses or advancement of Expenses in good faith requests in writing such additional time for the obtaining or
evaluating of documentation and/or information relating thereto.

(iv)          The
knowledge and/or actions, or failure to act, of any other Fiduciary shall not
be imputed to Indemnitee for purposes of determining any right to
indemnification for Liabilities and Expenses or advancement of Expenses under
this Agreement.

(c)           Effect
of Certain Proceedings. The termination of any Proceeding by judgment,
order, settlement, conviction or upon a plea of nolo
contendre or its equivalent, shall not, of itself, create a
presumption that Indemnitee did not act in good faith and in a manner reasonably
believed to be in or not opposed to the best interests of the Company, and with
respect to any criminal Proceeding, that Indemnitee had reason to believe his
conduct was unlawful.

 5
 

Section 4.  Expenses; Indemnification Procedure.

(a)           Advancement
of Expenses. The Company shall advance or reimburse Indemnitee for all
Expenses incurred by Indemnitee or on Indemnitee’s behalf, without regard to
Indemnitee’s ultimate entitlement to indemnification under the other provisions
of this Agreement. Indemnitee hereby undertakes to repay such amounts advanced
if, and only to the extent that, it shall be determined by a final judgment or
other final adjudication, not subject to further appeal or review, that
Indemnitee is not entitled to be indemnified by the Company as authorized
hereby, or under applicable law or otherwise. The advances to be made hereunder
shall be paid by the Company to Indemnitee within twenty (20) calendar days
following delivery of any written request, which shall reasonably evidence the
Expenses incurred or to be incurred, from time to time, by Indemnitee to the
Company. Advances payable hereunder shall include any and all reasonable
Expenses incurred pursuing an action to enforce this right of advancement,
including Expenses incurred preparing and forwarding any statements to the
Company to support the advances claimed.

(b)           Notice by Indemnitee.  Indemnitee shall, as promptly as reasonably
practicable under the circumstances, use commercially reasonable efforts to
notify the Company in writing upon being served with any summons, citation,
subpoena, complaint, indictment, information or other document relating to any
Proceeding or any other matter which may be subject to indemnification for
Liabilities and Expenses or advancement of Expenses covered by this Agreement; provided,
however, that any delay or failure to so notify the Company shall
relieve the Company of its obligations hereunder only to the extent, if at all,
that the Company is actually and materially prejudiced by reason of such delay
or failure.

(c)           Determination of Entitlement to
Indemnification.  Upon the receipt of
any notice pursuant to Section 4(b) hereof, a determination with respect to
Indemnitee’s entitlement to indemnification for Liabilities and Expenses or
advancement of Expenses hereunder shall be made within ten (10) calendar days
by (i) a majority vote of the Board of Directors who are not parties to the
Proceeding in respect of which indemnification for Liabilities and Expenses or
advancement of Expenses is sought by Indemnitee, even though less than a
quorum, or (ii) by a committee of such directors designated by majority vote of
such directors, even though less than a quorum, or (iii) if there are no such
directors, or if such directors so direct, by Independent Counsel in a written
opinion to the Board of Directors (a copy of which opinion shall be delivered
to Indemnitee); provided, however, that if there has been a
Change of Control at or prior to the time of such notice by Indemnitee,
Indemnitee’s entitlement to indemnification for Liabilities and Expenses or
advancement of Expenses shall be determined within the foregoing time period by
Independent Counsel selected by Indemnitee, such determination to be set forth
in a written opinion to the Board of Directors (a copy of which opinion shall
be delivered to Indemnitee).  The Company
agrees to pay the reasonable fees of any Independent Counsel and to fully
indemnify such Independent Counsel against any and all Expenses, claims,
liabilities and damages arising out of or relating to this Agreement or its
engagement pursuant hereto. If, pursuant to the foregoing, it is determined
that Indemnitee is entitled to indemnification for Liabilities and Expenses or
advancement of Expenses, payment to Indemnitee shall be made within ten (10)
calendar days from the date of notice by Indemnitee pursuant to Section 4(b)
hereof.  Indemnitee shall reasonably
cooperate in the

 6
 

making
of such determination, including providing upon reasonable advance request any
documentation or information which is not privileged or otherwise protected
from disclosure (excluding any information that counsel for Indemnitee advises
Indemnitee not to disclose) and which is reasonably available to Indemnitee and
reasonably necessary to such determination. For the avoidance of doubt, any
costs or expenses (including attorneys’ fees and disbursements) incurred by
Indemnitee in so cooperating with the Person making such determination shall be
included as Expenses for the purposes of this Agreement, shall be recoverable
by Indemnitee even if the Company determines Indemnitee is not entitled to
indemnification or advancement of Expenses for the underlying claim, and shall
be subject to advancement under Section 4(a). 
Nothing in this Section 4(c) shall be construed to limit or modify the
presumptions in favor of Indemnitee set forth in Section 3(b).

(d)           Notice
to Insurers. If, at the time of the receipt of any notice of any Proceeding
pursuant to Section 4(b) hereof, the Company has directors’ and officers’
liability insurance in effect, then the Company shall give prompt notice of the
commencement of such Proceeding to the directors’ and officers’ liability
insurers in accordance with the procedures set forth in the respective
policies.  The Company shall thereafter
take all necessary or appropriate action to cause such insurers to pay, on
behalf of Indemnitee, all amounts payable as a result of such Proceeding in
accordance with the terms of such policies. 
The failure or refusal of the Company to provide such notice to such
insurers or the failure or refusal of such insurers to pay any such amount
shall not affect or impair the obligations of the Company under this Agreement.

(e)           Control
of Defense; Counsel Costs. In connection with paying the Expenses of
Indemnitee under Section 4(a), the Company shall be entitled to elect to assume
the defense of such Proceeding, with counsel experienced in matters that are
the subject of the Proceeding and practicing in the applicable jurisdiction
where the Proceeding is pending and approved by Indemnitee, which approval
shall not be unreasonably withheld, by the delivery to Indemnitee of written
notice of its election to do so. After delivery of such notice, approval of
such counsel by Indemnitee and the retention of such counsel by the Company,
the Company shall not be liable to Indemnitee under this Agreement for any fees
of separate counsel subsequently incurred by Indemnitee with respect to the
same Proceeding; provided, that (i) Indemnitee shall have the right to employ
counsel in any such Proceeding at Indemnitee’s sole expense and (ii) if (A) the
employment of counsel by Indemnitee has been authorized by the Company, (B)
Indemnitee shall have reasonably concluded that there is an actual conflict of
interest between the Company and Indemnitee in the conduct of any such defense,
or (C) the Company shall not have employed counsel to assume the defense of
such Proceeding, then in any such event the fees and expenses of Indemnitee’s
counsel shall be at the expense of the Company. The Company shall not be
entitled to assume the defense of any Proceeding brought in the name of or on
behalf of the Company or as to which Indemnitee shall have made the conclusion
provided for in (B) above. Notwithstanding the foregoing, if at any time the
Company fails to pay any Expenses with respect to any Proceeding in accordance
with Section 4(a) hereof, Indemnitee shall immediately be entitled to assume
and control his own defense in such Proceeding with counsel of his own choice
(by notice to the Company), and will have all rights to indemnification of such
Expenses of counsel hereunder.

(f)            Settlement.  The
Company shall not be liable to indemnify Indemnitee under this Agreement or
otherwise for any amounts paid in settlement of any Proceeding effected without
the

 7
 

Company’s
prior written consent; provided that if a Change of Control has occurred, the
Company shall be liable for indemnification of Indemnitee for amounts paid in
settlement if an Independent Counsel selected by Indemnitee has approved the
settlement.  The Company shall not settle
any Proceeding in any manner that would impose any penalty, liability or
limitation on Indemnitee without Indemnitee’s prior written consent; provided
that the Company shall not be required to obtain the consent of Indemnitee to
the settlement of any Proceeding the Company has undertaken to defend if the
settlement grants Indemnitee a complete and unqualified release in respect of
the potential liability.  Neither the Company
nor Indemnitee will unreasonably withhold their consent to any proposed
settlement.

Section 5.               Remedies of Indemnitee.

(a)           In
the event that (i) a determination is made pursuant to Section 4(c) of this
Agreement that Indemnitee is not entitled to indemnification for Liabilities
and Expenses or advancement of Expenses under this Agreement, (ii) advancement
of Expenses is not timely made pursuant to Section 4(a) hereof, (iii) no
determination of entitlement to indemnification for Liabilities and Expenses or
advancement of Expenses shall have been made pursuant to Section 4(c) hereof
within twenty (20) calendar days after receipt by the Company of notice
pursuant to Section 4(b) hereof, or (iv) payment of indemnification is not made
pursuant to the fourth to last sentence of Section 4(c) hereof within twenty
(20) calendar days after the date of notice by Indemnitee pursuant to Section
4(b) hereof, Indemnitee shall be entitled to an adjudication by the Delaware
Court of Chancery or other court of competent jurisdiction of his entitlement
to such indemnification, advancement of Expenses, or to recover damages for
breach of this Agreement.

(b)           In
the event that a determination shall have been made pursuant to Section 4(c) of
this Agreement that Indemnitee is not entitled to indemnification for Liabilities
and Expenses or advancement of Expenses, any judicial proceeding commenced
pursuant to this Section 5 shall be conducted in all respects as a trial de novo,  and Indemnitee
shall not be prejudiced by reason of that adverse determination. In any judicial
proceeding commenced pursuant to this Section 5, the Company shall have the
burdens of coming forward with evidence and proving by a preponderance of the
evidence that Indemnitee is not entitled to indemnification for Liabilities and
Expenses or advancement of Expenses, as the case may be, and the Company may
not refer to or introduce into evidence any determination pursuant to Section
4(c) of this Agreement adverse to Indemnitee for any purpose.  If a determination shall have been made
pursuant to Section 4(c) hereof that Indemnitee is entitled to indemnification
for Liabilities and Expenses or advancement of Expenses, the Company shall be
bound by such determination in any judicial proceeding commenced pursuant to
this Section 5, absent (i) a misstatement by Indemnitee of a material fact, in
connection with the request for indemnification, or (ii) a prohibition of such
indemnification for Liabilities and Expenses or advancement of Expenses under
applicable law.

(c)           In
the event that Indemnitee, pursuant to this Section 5, seeks a judicial
adjudication to enforce his rights under, or to recover damages for breach of,
this Agreement, Indemnitee shall be entitled to recover from the Company, and
shall be indemnified by the Company against, any and all Expenses actually and
reasonably incurred by him in such judicial adjudication. If it shall be
determined in such judicial adjudication that Indemnitee is entitled to receive
part but not all of the indemnification for Liabilities and Expenses or
advancement of Expenses sought, the Indemnitee shall be entitled to recover
from the Company, and shall be indemnified by the Company against, 

 8
 

any and all Expenses reasonably incurred by
Indemnitee in connection with such judicial adjudication.

(d)           The
Company shall be precluded from asserting in any judicial proceeding commenced
pursuant to this Section 5 that the procedures and presumptions of this
Agreement are not valid, binding and enforceable and shall stipulate in any
such court that the Company is bound by all the provisions of this Agreement.

Section 6.  Expansion of DGCL Indemnity Provisions;
Nonexclusivity.  The indemnification
provided by this Agreement shall be in addition to any rights to which
Indemnitee may be entitled under the Company’s Certificate of Incorporation,
the Company’s Bylaws, any agreement, any vote of stockholders or disinterested
directors, the DGCL or otherwise, both as to action in Indemnitee’s official
capacity and as to action in another capacity while holding such office.  To the extent
that a change in the DGCL or the manner in which the DGCL is judicially
construed permits greater indemnification for Liabilities and Expenses or advancement of Expenses
than would be afforded currently under
the Company’s Certificate of Incorporation, Bylaws and this Agreement, it is
the agreement and intent of the parties hereto that Indemnitee shall enjoy by
this Agreement the greater benefits so afforded by such change.  No right or remedy herein conferred is intended
to be exclusive of any other right or remedy, and every other right and remedy
shall be cumulative and in addition to every right and remedy given hereunder
or now or hereafter existing at law or in equity or otherwise.  The assertion or employment of any right or
remedy hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other right or remedy.

Section 7.  Partial Indemnification. If Indemnitee
is entitled under any provision of this Agreement to indemnification by the
Company for some or a portion of the Expenses or Liabilities actually or
reasonably incurred by Indemnitee in investigation, defense, appeal or
settlement of any Proceeding, but not, however, for the total amount thereof,
the Company shall nevertheless indemnify Indemnitee for the portion of such
Expenses and Liabilities to which Indemnitee is entitled.

Section 8.  Mutual Acknowledgment. Each of the
Company and Indemnitee acknowledges that in certain instances, U.S. Federal law
or applicable public policy may prohibit the Company from advancing expenses or
indemnifying its directors under this Agreement or otherwise. Indemnitee
understands and acknowledges that the Company may be required in the future to
undertake with the Securities and Exchange Commission to submit the question of
indemnification to a court in certain circumstances for a determination of the
Company’s right under public policy to indemnify Indemnitee. Any action taken
pursuant to the terms of this Section 8 shall not constitute a breach of this
Agreement.

Section 9. Directors’ and Officers’
Liability Insurance. Upon a Change of Control, the Company shall use its
best efforts to obtain and maintain on an ongoing basis a policy or policies of
insurance on commercially reasonable terms with reputable insurance companies
providing liability insurance for Fiduciaries, including Indemnitee, in respect
of acts or omissions occurring while serving in such capacity, and to ensure
the Company’s performance of its indemnification obligations under this
Agreement, on terms with respect to coverage and amount (including with respect
to the payment of Expenses) no less favorable than those of such policy or
policies of

 9
 

insurance in effect on the date hereof. To the
extent that the Company maintains a policy or policies of insurance pursuant to
this Section 9, Indemnitee shall be covered by such policy or policies in
accordance with its or their terms to the maximum extent of the coverage
available for any Fiduciary under such policy or policies.

Section
10.   Establishment of a Trust.  In the event of a Potential Change of Control
or a Change of Control, the Company shall, upon written request by Indemnitee,
create a trust for the benefit of Indemnitee (the “Trust”) and from time to
time upon written request of Indemnitee shall fund the Trust in an amount equal
to all Expenses and Liabilities reasonably anticipated at the time to be
incurred in connection with any Proceeding. 
The amount to be deposited in the Trust pursuant to the foregoing
funding obligation shall be determined by the party determining the Indemnitee’s
entitlement to indemnification pursuant to Section 4(c) hereof.  The terms of the Trust shall provide that,
upon a Change of Control, (a) the Trust shall not be revoked or the principal
thereof invaded, without the written consent of Indemnitee; (b) the trustee of
the Trust shall advance, within ten (10) days of a request by Indemnitee, any
and all Expenses to Indemnitee (and Indemnitee hereby agrees to reimburse the
Trust under the circumstances in which Indemnitee would be required to
reimburse the Company for Expenses under this Agreement); (c) the Trust shall
continue to be funded by the Company in accordance with the funding obligation
set forth above; (d) the trustee of the Trust shall promptly pay to Indemnitee
all amounts for which Indemnitee shall be entitled to indemnification pursuant
to this Agreement or otherwise; and (e) all unexpended funds in that Trust
shall revert to the Company upon a final determination by the party determining
the Indemnitee’s entitlement to indemnification pursuant to Section 4(c) hereof
or a court of competent jurisdiction, as the case may be, that Indemnitee has
been fully indemnified under the terms of this Agreement.  The trustee of the Trust shall be chosen by
Indemnitee.  Nothing in this Section 10
shall relieve the Company of any of its obligations under this Agreement.

Section 11.  Severability. If any provision or provisions of this Agreement shall be held to be
invalid, illegal or unenforceable for any reason whatsoever: (i) the validity,
legality and enforceability of the remaining provisions of this Agreement
(including without limitation each portion of any Section of this Agreement
containing any such provision held to be invalid, illegal or unenforceable,
that is not itself invalid, illegal or unenforceable) shall not in any way be
affected or impaired thereby and shall remain enforceable to the fullest extent
permitted by law, (ii)  such provision or provisions shall be deemed
reformed to the extent necessary to conform to applicable law and to give the
maximum effect to the intent of the parties hereto, and (iii)  to the
fullest extent possible, the provisions of this Agreement (including without
limitation each portion of any Section of this Agreement containing any such
provision held to be invalid, illegal or unenforceable, that is not itself
invalid, illegal or unenforceable) shall be construed so as to give effect to
the intent manifested thereby.

Section 12.  Duration of Agreement. The
indemnification provided under this Agreement shall continue as to the
Indemnitee for any action taken or not taken while serving as a Fiduciary even
though Indemnitee may have ceased to serve in such capacity at the time of any
action or other covered proceeding.

 10

Section 13.  Exceptions. Notwithstanding any other
provision to the contrary herein, the Company shall not be obligated pursuant
to the terms of this Agreement to indemnify Indemnitee as follows:

(a)           Excluded
Acts. No indemnification shall be made for any acts or omissions or
transactions, if and to the extent that it shall be determined by a final
judgment or other final adjudication, not subject to further appeal or review,
that a director or officer may not be relieved of liability arising from any
such acts or omissions or transactions under the DGCL or applicable securities
laws;

(b)           Indemnitee
Liable to Company. No indemnification shall be made in respect of any
Proceeding, claim, issue or matter as to which it shall have been determined by
a final judgment or other final adjudication, not subject to further appeal or
review, that Indemnitee is liable to the Company unless and only to the extent
that such final judgment or other final adjudication shall determine that,
despite the adjudication of liability but in view of all of the circumstances
of the case, Indemnitee is fairly and reasonably entitled to indemnity for such
Expenses as the court deems proper and then only to the extent that the court
shall determine;

(c)           Claims
Initiated by Indemnitee. No indemnification for Liabilities and Expenses or
advancement of Expenses to Indemnitee shall be made with respect to Proceedings
or claims initiated or brought voluntarily by Indemnitee and not by way of
defense, except with respect to such Proceedings brought to establish or
enforce a right to indemnification for Liabilities and Expenses or advancement
of Expenses under this Agreement or any other statute or applicable law or
otherwise as required under Section 145(c) of the DGCL or any other provision of
the Certificate of Incorporation or Bylaws of the Company, unless (i) the Board
of Directors has approved the initiation or bringing of such Proceeding (or any
part of any Proceeding) or (ii) the Company provides the indemnification, in
its sole discretion, pursuant to the powers vested in the Company under
applicable law;

(d)           Lack
of Good Faith. No indemnification shall be made to indemnify Indemnitee for
any Expenses or Liabilities incurred by Indemnitee with respect to any
Proceedings instituted by Indemnitee to enforce or interpret this Agreement, if
it shall be determined by a final judgment or other final adjudication, not
subject to further appeal or review, that each of the material assertions made
by Indemnitee in such proceeding was not made in good faith or was frivolous;

(e)           Insured
Claims. No indemnification shall be made to indemnify Indemnitee for
Expenses or Liabilities of any type whatsoever if, but only to the extent that,
Indemnitee shall have actually received payment with respect to any such
Expenses or Liabilities from an insurer under any policy of directors’ and
officers’ liability insurance maintained by the Company, and any such payment
shall not be recovered (in whole or in part) from Indemnitee by such insurer;

(f)            Claims
under Section 16(b).  No
indemnification shall be made under this Agreement for Expenses, Liabilities
and the payment of profits arising from the purchase and sale by Indemnitee of
securities in violation of Section 16(b) of the 1934 Act, or any similar state
or local law with respect to the disgorgement of “short swing” profits;

 11
 

(g)           Claims
under Section 304 of the Sarbanes-Oxley Act.  No indemnification shall be made under this
Agreement for Expenses, Liabilities, the reimbursement of the Company of
bonuses or other incentive-based or equity-based compensation, and the
reimbursement of the Company of profits realized from the sale of securities of
the Company incurred by Indemnitee, to the extent that such Expenses,
Liabilities and reimbursements directly arise from an accounting restatement of
the Company pursuant to Section 304 of the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley
Act”); or

(h)           Claims
under Section 306 of the Sarbanes-Oxley Act.  No indemnification shall be made under this
Agreement for Expenses, Liabilities and the payment of profits arising from the
purchase and sale by Indemnitee of securities in violation of Section 306 of
the Sarbanes-Oxley Act.

Section 14.  Counterparts.  This Agreement may be executed in two or more
counterparts, each of which shall constitute an original, and all of which
shall constitute one and the same agreement.

Section 15.  Successors and Assigns.

(a)           This
Agreement shall be binding upon and inure to the benefit of and be enforceable
by the parties hereto and their respective successors, assigns, including any
direct or indirect successor by purchase, merger, consolidation or otherwise to
all or substantially all of the business and/or assets of the Company, spouses,
heirs, and executors, administrators, personal and legal representatives. The
Company shall require and cause any successor (whether direct or indirect by
purchase, merger, consolidation or otherwise) to all or substantially all, or a
substantial part of the business or assets of the Company, by written agreement
in the form and substance satisfactory to Indemnitee, expressly to assume and
agree to perform this Agreement in the manner and to the same extent that the
Company would be required to perform if no such succession had taken place.

(b)           The
indemnification for Liabilities and Expenses or advancement of Expenses
provided by, or granted pursuant to this Agreement shall continue as to a
person who has ceased to be a Fiduciary. 
If the Indemnitee is deceased and is entitled to indemnification for
Liabilities and Expenses or advancement of Expenses under any provision of this
Agreement, when requested in writing by the spouse of the Indemnitee, and/or
the Indemnitee’s heirs, executors, administrators, legatees or assigns, the
Company shall provide appropriate evidence of the Company’s agreement set out
herein to indemnify the Indemnitee against and to itself assume such Expenses.

Section 16. Modification and Waiver.
No supplement, modification or amendment of this Agreement shall be binding
unless executed in writing by both of the parties hereto. The observance of any
term of this Agreement may be waived (either generally or in a particular
instance and either retroactively or prospectively) by the party entitled to
enforce such term only by a writing signed by the party against which such
waiver is to be asserted. No waiver of any of the provisions of this Agreement
shall be deemed or shall constitute a waiver of any other provisions hereof
(whether or not similar) nor shall such waiver constitute a continuing waiver.

 12
 

Section 17.  Notices.  All notices, requests, demands and other
communications required or permitted hereunder shall be in writing and shall be
deemed to have been duly given when delivered by hand, by overnight express
delivery service, or when mailed by certified registered mail, return receipt
requested, with postage prepaid:

If to Indemnitee, to:

Sherrian
Gunn

213
Silverleaf Drive

Ft. Worth, Texas 76112

or
to such other person or address which Indemnitee shall furnish to the Company
in writing pursuant to the above.

If to the Company, to

CLST Holdings, Inc.

601 S. Royal Lane

Coppell, TX 75019

Attention: 
CEO

or to such person or address as the Company
shall furnish to Indemnitee in writing pursuant to the above.

Section 18.  Subrogation. In the event of payment
under this Agreement, the Company shall be subrogated to the extent of such
payment to all of the rights of recovery of the Indemnitee, who shall, at the
Company’s expense, execute all documents reasonably required and do all acts
that may be reasonably necessary to secure such rights and to enable the
Company effectively to bring suit to enforce such rights.

Section 19.  Evidence of Coverage. Upon request by
Indemnitee, the Company shall provide copies of any and all directors’ and
officers’ liability insurance policies obtained and maintained in accordance
with Section 9 of this Agreement.

Section 20.  Contribution.  To the fullest extent permissible under
applicable law, if the indemnification provided for in this Agreement is
unavailable to Indemnitee for any reason whatsoever, the Company, in lieu of
indemnifying Indemnitee, shall contribute to the amount incurred by Indemnitee,
whether for judgments, fines, penalties, excise taxes, amounts paid or to be
paid in settlement and/or for Expenses, in connection with any claim relating
to an indemnifiable event under this Agreement, in such proportion as is deemed
fair and reasonable in light of all of the circumstances of such Proceeding in
order to reflect (i) the relative benefits received by the Company and
Indemnitee as a result of the event(s) and/or transaction(s) giving rise to
such Proceeding, and/or (ii) the relative fault of the Company (and its
directors, officers, employees and agents) and Indemnitee in connection with
such event(s) and/or transaction(s).

 13
 

Section 21.  Governing Law.
The parties agree that this Agreement shall be governed by, and construed and
enforced in accordance with, the laws of the State of Delaware without
application of the conflict of laws principles thereof.

Section 22.  Consent to Jurisdiction. The Company
and Indemnitee each hereby irrevocably consent to the jurisdiction and venue of
the courts of the State of Delaware for all purposes in connection with any
action or proceeding which arises out of or relates to this Agreement.

Section 23.  No Third Party Beneficiary.  Nothing contained in this Agreement, express
or implied, is intended to or shall confer upon any other Person (other than
the parties hereto) any rights, benefits or remedies of any nature whatsoever
under or by reason of this Agreement.

Section 24.  Entire Agreement. This Agreement and
the documents referred to herein constitute the entire agreement between the
parties hereto with respect to the matters covered hereby, and any other prior or
contemporaneous oral or written understandings or agreements with respect to
the matters covered hereby are superseded by this Agreement.

* * * * *

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

	
  

  	
  CLST HOLDINGS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Dale V. Kesler

  
	
   

  	
  Name:

  	
  Dale V. Kesler

  
	
   

  	
  Title:

  	
  Chairman of the Board

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Sherrian Gunn

  
	
   

  	
  Sherrian Gunn

  
				

 

 15

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