Document:

Exhibit
      10.6

    

     

     

     

    Agreement
      on Cooperation

    

    Name
      of
      the Project: Research and Development of the Traction Power Supply System
      of

    Linear
      Induction Motor (LIM) Track Transportation

    

    Parties
      of the Cooperation: Institute of Electrical Engineering of

    The
      Chinese Academy of Sciences; and

    

    Harbin
      Tech Full Electric Co., Ltd.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Featured
      by the advantages in advanced technologies, safety and reliability, reasonable
      economy and environmental friendliness, linear-induction-motor (LIM)-driven
      track transportation system heralds the development trends of future urban
      track
      transportation and is bound to become one major mode of urban track
      transportation of Chinese cities in the next five to ten years.

    

    Linear
      induction motor track transportation system consists of four major sub-systems:
      lines, operation control, traction power supply and vehicles. Among them,
      traction power supply system is the special sub-system characteristic of the
      linear induction motor track transportation. There are significant differences
      between the traditional rotating motor track transportation system and LIM-
      driven track transportation such as high power linear induction motors, track
      reaction plates, traction conversion system and traction control systems.
      Therefore, as the first step toward the home-production of the linear induction
      motor track transportation system, it is imperative to achieve the
      home-production of its traction power supply system, especially that of the
      high-power linear induction motors, track reaction plate, traction conversion
      system and traction control system.

    

    For
      the
      purpose of achieving the home-production of the core equipment of the traction
      power supply system of the linear induction motor track transportation, grasping
      and breaking through its key technologies, the Institute of Electrical
      Engineering of the Chinese Academy of Sciences (hereinafter referred to as
      the
“IEECAS”) and Harbin Tech Full Electric Co., Ltd (hereinafter referred to as
“HTFE”) have, after consultation pursuant to the provisions of the “Contract Law
      of the People’s Republic of China,” reached and signed the following terms of
      the agreement.

    

    
      	
              1.

            	
              Overall
                Objectives and Major Development Work Arrangements
                

            

    

    
      	 	
              1.1.

            	
              Overall
                Research Objectives

            

    

    The
      major
      research contents shall be the key technologies of the linear induction motor
      track transportation system. One compartment of non-adhesive power-efficient
      linear induction motor track transportation car with own intellectual property
      rights shall be successfully developed and produced by the end of 2008 and
      put
      into trial run on the line of Beijing Capital Airport. During the end of the
      “11th
      Five-Year Plan” and the beginning of the “12th
      Five-Year Plan,” a home-production base of the Chinese traction power supply
      equipments of the linear induction motor track transportation shall be
      established, realizing the production capacity of industrial
      scales.

    

    One
      vehicle of linear induction motor tracking transportation is composed of two
      to
      eight compartments with consistent structure and core equipments. Therefore,
      the
      successful development of one vehicle of linear induction motor track
      transportation through the implementation of this project will enable the
      grasping of the design and production technologies of the key equipments of
      this
      transportation system, leading to the production capacity of industrial scales
      of the key equipments of the linear induction motor track transportation
      system.

    

    
      	 	
              1.2.

            	
              Major
                Development Work Contents

            

    

    
      	 	
              1.2.1.

            	
              Theoretical
                analysis and design work of the key technologies (targeted at the
                theoretical analysis research and design work of the key technologies
                of
                the linear induction motor track transportation
                system);

            

    

    
      	 	
              1.2.1.1.

            	
              Put
                forward and perfect the theories of field oriented vector control
                of high
                power linear traction motors;

            

    

    
      	 	
              1.2.1.2.

            	
              Complete
                the optimization design of its structural parameters and electro-magnetic
                parameters;

            

    

    
      	 	
              1.2.1.3.

            	
              Complete
                the overall design work of sample vehicle under
                development;

            

    

    
      	 	
              1.2.1.4.

            	
              Research
                and put forward the integration and testing plans of the sample vehicle
                under development as well as the settings and conditions necessary
                for the
                development and test of the sample
                vehicle.

            

    

    
      	 	
              1.2.2.

            	
              Development
                work of the key equipments (targeted at the development of the key
                equipments of the traction power supply system of the linear induction
                motor track transportation system and other key equipments necessary
                for
                the sample vehicle);

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	 	
              1.2.2.1.

            	
              Complete
                the development of the full traction power supply system complementary
                to
                the sample vehicle (including such core equipments as the three level
                traction converter, linear traction motor, traction control system
                and
                failure analysis system);

            

    

    
      	 	
              1.2.2.2.

            	
              Complete
                the ordered making of such equipments as the body of the sample vehicle,
                locomotive bogie, current collector, arrester, vehicle DC/AC power,
                vehicle group battery and other auxiliary
                equipments;

            

    

    
      	 	
              1.2.2.3.

            	
              Complete
                the establishment of the integrated testing environment for the
                development of the sample vehicle and other preparation work before
                the
                integrated testing.

            

    

    
      	 	
              1.2.3.

            	
              System
                integration, test and appraisal work for the sample vehicle under
                development (targeted at the integration, on-site tests and appraisal
                of
                the equipments and sample vehicle under
                development);

            

    

    
      	 	
              1.2.3.1.

            	
              Complete
                the installation and debugging of the sub-systems and components
                of the
                sample vehicle under development;

            

    

    
      	 	
              1.2.3.2.

            	
              Complete
                the debugging of general system of the sample vehicle under
                development;

            

    

    
      	 	
              1.2.3.3.

            	
              Complete
                the comprehensive testing work of the sample vehicle under
                development.

            

    

    
      	 	
              1.2.4.

            	
              Preparation
                work before the production of industrial scale (targeted at the
                preparation work before the production of industrial scale of such
                core
                equipments as high power linear traction motors, traction conversion
                system and traction control
                system);

            

    

    
      	 	
              1.2.5.

            	
              Production
                of industrial scale (achieving the production of industrial scale
                of high
                power linear traction motors, traction conversion system and traction
                control system under development, and establishing the industrial-scale
                production base of the core equipments of traction power supply of
                the
                Chinese linear induction motor track
                transportation).

            

    

    

    
      	
              2.

            	
              Design
                and Development Objectives 

            

    

    
      	 	
              2.1.

            	
              Progress
                and Objectives of the Design and
                Development

            

    

    

    
      	
              Number
                

            	
              Design
                and Development Objectives

            	
              Design
                and Development Time

            	
              Contents
                and Objectives of the Design and Development 

            
	
              1

            	
              Theoretic
                Analysis and Design Work of Key Technologies

            	
              January
                1, 2006—September 31, 2006

            	
              Put
                forward and perfect the theories of field oriented vector control
                of high
                power linear traction motors;

            
	
              January
                1, 2006—September 31, 2006

            	
              Complete
                the optimization design of the structural parameters and electro-magnetic
                parameters of high power linear traction motors;

            
	
              January
                1, 2006—September 31, 2006

            	
              Complete
                the overall design work of sample vehicle under
                development;

            
	
              January
                1, 2006—September 31, 2006

            	
              Research
                and put forward the integration and testing plans of the sample vehicle
                under development as well as the settings and conditions necessary
                for the
                development and test of the sample vehicle;

            
	
              2

            	
              Development
                work of the key equipments

            	
              October
                1, 2006—May 31, 2007

            	
              Complete
                the development of the full traction power supply system complementary
                to
                the sample vehicle (including such core equipments as the three level
                traction converter, linear traction motor, traction control system
                and
                failure analysis system);

            
	
              October
                1, 2006—May 31, 2007

            	
              Complete
                the ordered making of such equipments as the body of the sample vehicle,
                locomotive bogie, current collector, arrester, vehicle DC/AC power,
                vehicle group battery and other auxiliary equipments;

            
	
              October
                1, 2006—May 31, 2007

            	
              Complete
                the establishment of the integrated testing environment for the
                development of the sample vehicle and other preparation work before
                the
                integrated testing;

            
	
              3

            	
              System
                integration, test and appraisal work for the sample vehicle under
                development

            	
              June
                1, 2007—December 1, 2008

            	
              Complete
                the installation and debugging of the sub-systems and components
                of the
                sample vehicle under development;

            
	
              June
                1, 2007—December 1, 2008

            	
              Complete
                the debugging of general system of the sample vehicle under
                development;

            
	
              June
                1, 2007—December 1, 2008

            	
              Complete
                the comprehensive testing work of the sample vehicle under
                development;

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              4

            	
              Preparation
                work before the production of industrial scale

            	
              June
                1, 2007—May 31, 2009

            	
              Targeted
                at the preparation work before the production of industrial scale
                of such
                core equipments as high power linear traction motors, traction conversion
                system and traction control system

            
	
              5

            	
              Production
                of industrial scale

            	
              June
                1, 2009—December 31, 2010

            	
              Achieve
                the production of industrial scale of high power linear traction
                motors,
                traction conversion system and traction control system under development,
                and establishing the industrial-scale production base of the core
                equipments of traction power supply of the Chinese linear induction
                motor
                track transportation.

            

    

    
      	
              2.2

            	
              Distribution
                of the Development Work

            

    

    
      	
              2.2.1

            	
              The
                optimization design work of the high power linear traction motors
                and
                track reaction plates shall be completed by both Parties to this
                agreement
                on corporation;

            

    

    
      	
              2.2.2

            	
              The
                production work of the high power linear traction motors and track
                reaction plates shall be completed by
                HTFE;

            

    

    
      	
              2.2.3

            	
              The
                development work of traction converter and traction control system
                shall
                be completed by the IEECAS while the functional testing of the components
                of the traction control system under development and of the entire
                system
                shall be completed by both Parties;

            

    

    
      	
              2.2.4

            	
              The
                ordered making of the body of the sample vehicle, locomotive bogie,
                current collectors, arresters, vehicle DC/AC power, vehicle group
                batteries and other auxiliary equipments shall be principally completed
                by
                HTFE;

            

    

    
      	
              2.2.5

            	
              The
                integration and testing of the sample vehicle shall be completed
                by both
                Parties in conjunction with other cooperative
                entities.

            

    

    

    
      	
              3.

            	
              Research
                and Development Fees and Payment
                Terms

            

    

    The
      budget for this project shall be RMB 25 million in Chinese currency, of which
      RMB 10 million shall be paid by the IEECAS while RMB 15 million shall be paid
      by
      HTFE RMB 10 million shall be transferred by HTFE to the IEECAS for the purpose
      of the development and making of such core equipments as three-level traction
      converter, traction control system and failure analysis system, as well as
      the
      integration, testing and debugging of the sample vehicle under
      development.

    

    Method
      of
      Payment: HTFE shall, two weeks after the signing of this agreement, make the
      first transfer of RMB 5 million to the IEECAS. The second payment of RMB 3
      million shall be made upon the completion of the second phase of this project
      on
      May 31, 2007 and the third payment of RMB 2 million shall be made upon the
      completion of the third phase of this project at the end of 2008.

    

    
      	
              4.

            	
              Property
                Ownership of the Equipments and Materials Purchased from Research
                and
                Development Fund:

            

    

    The
      property ownership of the equipments and materials purchased from the research
      and development fund shall be decided by the two Parties through
      consultation.

    

    
      	
              5.

            	
              Duration,
                Place and Method of the
                Performance:

            

    

    This
      Agreement shall be performed in the IEECAS (Zhongguancun of Beijing) and HTFE
      (Development Zone of Harbin) from August 2006 till the early part of
      2009.

    

    
      	
              6.

            	
              Confidentiality
                of the Technical Information and
                Materials:

            

    

    No
      Party
      to this Agreement shall be allowed to divulge any project-related technical
      information and materials to third parties without the permission of the other
      Party.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              7.

            	
              Bearing
                the Risks:

            

    

    Both
      Parties shall make their pledged payments on time and shall be held responsible
      for any losses or damages as a result of failure to comply.

    

    During
      the performance of this Agreement, both Parties shall share the partial or
      full
      failure risks caused by any insurmountable technical difficulties under the
      current conditions and expertise.

    

    Two
      Parties shall evenly divide the risks as the confirmed method.

    

    
      	
              8.

            	
              Ownership
                and Sharing of Technical Results:

            

    

    
      	8.1	
              The
                technical research and development results of this project shall
                be shared
                by both Parties to this Agreement and they all have the ownership
                of the
                patents;

            

    

    
      	8.2	
              The
                Right of Use and Right of Transfer of the non-patent technical results
                shall be decided by both Parties through
                consultation;

            

    

    
      	8.3	
              The
                economic benefits as a result of the industrialization of the research
                results through this project shall be divided between the two Parties
                according to the ratio of the funds paid, technical and personnel
                commitments actually made by the two
                Parties.

            

    

    

    
      	9.	
              Standards
                and Means of Inspection and
                Acceptance

            

    

    Inspection
      and acceptance shall be carried out on the basis of the technical materials
      (including technical regulations, drawings, database, proprietary design
      software and documents of techniques) and sample machine inspection after the
      research and development results have achieved the technical contents described
      under Article Two of this Agreement and those further determined by both
      Parties. A third party will be commissioned by both Parties to produced
      certificate of technical project inspection and acceptance. 

    

    
      	10.	
              Dispute
                Settlement

            

    

    Any
      disputes arising out of the performance of this Agreement shall be settled
      though friendly consultation between the two Parties.

    

    (Seal)
      The Institute of Electrical Engineering of the Chinese Academy of Sciences
      

    

    /s/
      Li
      Kong

    Legal
      Representative

    Date:
      August 18, 2006

    

    (Seal)
      Harbin Tech Full Electric Co., Ltd.

    

    /s/
      Tianfu Yang

    Legal
      Representative

    Date:
      August 21, 2006EXHIBIT
      4.1

     

    AURIGA
      LABORATORIES, INC.

     

    2006
      Equity Incentive Plan

     

    *
      * * *
      *

     

              1.
      Purpose
      . The
      purpose of the Auriga Laboratories, Inc. 2006 Equity Incentive Plan (the “Plan”)
      is to further and promote the interests of Auriga Laboratories, Inc. (the
“Company”), its Subsidiaries (as defined below) and its stockholders by enabling
      the Company and its Subsidiaries to attract, retain and motivate employees,
      non-employee directors and consultants, and advisors or those who will become
      employees, non-employee directors or consultants and advisors, and to align
      the
      interests of those individuals and the Company’s stockholders.

     

              2.
      Certain
      Definitions
      . For
      purposes of the Plan, the following terms shall have the meanings set forth
      below:

     

                        2.1.
      “Award” shall mean an award or grant made to a Participant under Sections 6, 7,
      8 and/or 9 of the Plan.

     

                        2.2.
      “Award Agreement” shall mean the agreement executed by a Participant pursuant to
      Section 13.4 of the Plan in connection with the granting of an
      Award.

     

                        2.3.
      “Board” shall mean the Board of Directors of the Company, as constituted from
      time to time.

     

                        2.4.
      “Code” shall mean the Internal Revenue Code of 1986, as in effect and as amended
      from time to time, or any successor statute thereto, together with any rules,
      regulations and interpretations promulgated thereunder or with respect
      thereto.

     

                        2.5.
      “Committee” shall mean the compensation committee of the Board, if any,
      otherwise the full Board may act as the Committee.

     

                        2.6.
      “Common Stock” shall mean the Common Stock, par value $0.001 per share, of the
      Company or any security of the Company issued by the Company in substitution
      or
      exchange therefore.

     

                        2.7.
      “Company” shall mean Auriga Laboratories, Inc., a Delaware corporation, or any
      successor corporation to Auriga Laboratories, Inc.

     

                        2.8.
      “Covered Employee” means an employee of the Company who is, or could be, a
“covered employee” within the meaning of Section 162(m) of the
      Code.

     

                        2.9.
      “Fair Market Value” of the Company’s Common Stock on a Trading Day shall mean
      the last reported sale price for Common Stock or, in case no such reported
      sale
      takes place on such Trading Day, the average of the closing bid and asked prices
      for the Common Stock for such Trading Day, in either case on the principal
      national securities exchange on which the Common Stock is listed or admitted
      to
      trading, or if the Common Stock is not listed or admitted to trading on any
      national securities exchange, but is traded in the over-the-counter market,
      the
      closing sale price of the Common Stock or, if no sale is publicly reported,
      the
      average of the closing bid and asked quotations for the Common Stock, as
      reported by the National Association of Securities Dealers Automated Quotation
      System (“NASDAQ”) or any comparable system or, if the Common Stock is not listed
      on NASDAQ or a comparable system, the closing sale price of the Common Stock
      or,
      if no sale is publicly reported, the average of the closing bid and asked
      prices, as furnished by two members of the National Association of Securities
      Dealers, Inc. who make a market in the Common Stock selected from time to time
      by the Company for that purpose. In addition, for purposes of this definition,
      a
“Trading Day” shall mean, if the Common Stock is listed on any national
      securities exchange, a business day during which such exchange was open for
      trading and at least one trade of Common Stock was effected on such exchange
      on
      such business day, or, if the Common Stock is not
      listed
      on any national securities exchange but is traded in the over-the-counter
      market, a business day during which the over-the-counter market was open for
      trading and at least one “eligible dealer” quoted both a bid and asked price for
      the Common Stock. An “eligible dealer” for any day shall include any
      broker-dealer who quoted both a bid and asked price for such day, but shall
      not
      include any broker-dealer who quoted only a bid or only an asked price for
      such
      day. In the event the Company’s Common Stock is not publicly traded, the Fair
      Market Value of such Common Stock shall be determined by the Committee in good
      faith in whatever manner it considers appropriate.

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

                        2.10.
      “Grant Date” means the date that an Award is granted.

     

                        2.11.
      “Incentive Stock Option” means a Stock Option that is designated as an Incentive
      Stock Option and is intended by the Board to meet the requirements of Section
      422 of the Code.

     

                        2.12.
      “Non-Qualified Stock Option” means a Stock Option that is not an Incentive Stock
      Option.

     

                        2.13.
      “Participant” shall mean any individual who is selected from time to time under
      Section 5 to receive an Award under the Plan.

     

                        2.14.
      “Performance-Based Award” shall mean any Award that is granted pursuant to
      Section 9 of the Plan.

     

                        2.15.
      “Performance Units” shall mean the monetary units granted under Section 9 of the
      Plan and the relevant Award Agreement.

     

                        2.16.
      “Plan” shall mean the Auriga Laboratories, Inc. 2006 Equity Incentive Plan, as
      set forth herein and as in effect and as amended from time to time (together
      with any rules and regulations promulgated by the Board or the Committee with
      respect thereto).

     

                        2.17.
      “Qualified Performance-Based Compensation” means any compensation awarded in
      accordance with Section 9 that is intended to qualify as “qualified
      performance-based compensation” as described in Section 162(m) of the
      Code.

     

                        2.18.
      “Restricted Shares” shall mean the restricted shares of Common Stock granted
      pursuant to the provisions of Section 8 of the Plan and the relevant Award
      Agreement.

     

                        2.19.
      “Restricted Stock Unit” shall mean an Award granted to a Participant pursuant to
      the provisions of Section 8 of the Plan and the relevant Award Agreement, except
      no shares of Common Stock are actually awarded to the Participant on the date
      of
      grant.

     

                        2.20.
      “Stock Appreciation Right” shall mean an Award described in Section 7.2 of the
      Plan and granted pursuant to the provisions of Section 7 of the
      Plan

     

                        2.21.
      “Stock Option” shall mean an Award granted to a Participant pursuant to Section
      6 of the Plan.

     

                        2.22.
      “Subsidiary(ies)” shall mean any corporation (other than the Company),
      partnership or limited liability company in an unbroken chain of entities,
      including and beginning with the Company, if each of such entities, other than
      the last entity in the unbroken chain, owns, directly or indirectly, more than
      fifty percent (50%) of the voting stock, partnership or membership interests
      in
      one of the other entities in such chain.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

                        2.23.
      “Ten Percent Holder” means an employee of the Company or its Subsidiaries
      (together with persons whose stock ownership is attributed to such employee
      pursuant to Section 424(d) of the Code) who, at the time a Stock Option is
      granted, owns stock representing more than ten percent of the voting power
      of
      all classes of stock of the Company.

     

              3.
      Administration
      .

     

                        3.1.
      General
      . The
      Plan shall be administered by the Committee.

     

                        3.2.
      Plan
      Administration and Plan Rules
      . The
      Committee is authorized to construe and interpret the Plan and to promulgate,
      amend and rescind rules and regulations relating to the implementation and
      administration of the Plan. Subject to the terms and conditions of the Plan,
      the
      Committee shall make all determinations necessary or advisable for the
      implementation and administration of the Plan including, without limitation,
      (a)
      selecting the Plan’s Participants, (b) making Awards in such amounts and form as
      the Committee shall determine, (c) imposing such restrictions, terms and
      conditions upon such Awards as the Committee shall deem appropriate, and (d)
      correcting any technical defect(s) or technical omission(s), or reconciling
      any
      technical inconsistency(ies), in the Plan, any Award Agreement and/or any other
      applicable agreement. The Committee may designate persons other than members
      of
      the Committee to carry out the day-to-day ministerial administration of the
      Plan
      under such conditions and limitations as it may prescribe, except that the
      Committee shall not delegate its authority with regard to the selection for
      participation in the Plan and/or the granting of any Awards to Participants.
      The
      Committee’s determinations under the Plan need not be uniform and may be made
      selectively among Participants, whether or not such Participants are similarly
      situated. Any determination, decision or action of the Committee in connection
      with the construction, interpretation, administration, or implementation of
      the
      Plan shall be final, conclusive and binding upon all Participants and any
      person(s) claiming under or through any Participants. The Company shall effect
      the granting of Awards under the Plan, in accordance with the determinations
      made by the Committee by execution of written agreements and/or other
      instruments in such form as is approved by the Committee.

     

              4.
      Term
      of Plan/Common Stock Subject to Plan
      .

     

                        4.1.
      Term
      . The
      Plan shall terminate on the tenth anniversary of the Board’s approval of the
      Plan, except with respect to Awards then outstanding. After such date no further
      Awards shall be granted under the Plan.

     

                        4.2.
      Common
      Stock
      . The
      maximum number of shares of Common Stock in respect of which Awards may be
      granted under the Plan, subject to adjustment as provided in Section 11.2 of
      the
      Plan, shall not exceed 1,500,000 shares of Common Stock. In the event of a
      change in the Common Stock that is limited to a change in the designation
      thereof to “Capital Stock” or other similar designation, or to a change in the
      par value thereof, or from par value to no par value, without increase or
      decrease in the number of issued shares, the shares resulting from any such
      change shall be deemed to be the Common Stock for purposes of the Plan. Common
      Stock which may be issued under the Plan may be either authorized and unissued
      shares or issued shares which have been reacquired by the Company (in the
      open-market or in private transactions) and which are being held as treasury
      shares. No fractional shares of Common Stock shall be issued under the Plan.
      Shares of Common Stock subject to an Award that expires unexercised, that is
      forfeited, terminated or canceled, that is settled in cash or other forms of
      property, or otherwise does not result in the issuance of shares of Common
      Stock, in whole or in part, shall thereafter again be available for grant under
      the Plan. If the exercise price of any Stock Option is satisfied by delivering
      shares of Common Stock to the Company (by tender of such shares or attestation)
      or by authorizing the Company to retain shares of Common Stock, only the number
      of shares of Common Stock delivered to the Participant net of shares of Common
      Stock delivered to the Company (by tender or attestation) or retained by the
      Company shall be deemed delivered for purposes of determining the maximum number
      of shares of Common Stock available for grant under the Plan. To the extent
      any
      shares of Common Stock subject to an Award are not delivered to a Participant
      because such shares are used to satisfy an applicable tax or other withholding
      obligations, such shares shall not be deemed to have been delivered for purposes
      of determining the maximum number of shares of Common Stock available for grant
      under the Plan. Shares of Common Stock purchased by the Company on the open
      market using proceeds from Stock Option exercise shall also be available for
      grant under the Plan; provided, however, that the increase in the number of
      shares of Common Stock available for grant pursuant to such market purchases
      shall not be greater than the number that could be repurchased at Fair Market
      Value on the date of exercise of the Stock Option giving rise to such
      proceeds.

     

                        4.3.
      Limit
      on Individual Awards
      .
      Subject to adjustment as provided in Section 11.2, the maximum number of shares
      of Common Stock with respect to which (a) Stock Options and Stock Appreciation
      Rights, (b) Restricted Stock, RSUs and other Awards that vest only if the
      Participant achieves Performance Goals established by the Committee in
      accordance with Section 162(m) of the Code or (c) any combination of (a) and
      (b), may be granted during any year to any person shall be 500,000 shares of
      Common Stock.

    
      
         

      

      
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              5.
      Eligibility
      .
      Individuals eligible for Awards under the Plan shall be determined by the
      Committee in its sole discretion and shall be limited to the employees and
      non-employee directors of and consultants and advisors to the Company and its
      Subsidiaries, whether nationals or residents of the United States or foreign
      individuals, or those who will become employees or non-employee directors of
      or
      consultants and advisors to the Company and its Subsidiaries, whether nationals
      or residents of the United States or foreign individuals. Eligible consultants
      and advisors must have or will provide bona fide services to the Company, and
      such services must not be in connection with the offer or sale of securities
      in
      a capital-raising transaction.

     

                        5.1.
      Employees
      Based Outside of the United States
      .
      Notwithstanding any provision of the Plan to the contrary, in order to foster
      and promote achievement of the purposes of the Plan or to comply with the
      provisions of laws in other countries in which the Company and its Subsidiaries
      operate or have Employees, the Committee or its delegate, in its sole
      discretion, shall have the power and authority to (1) determine which Employees
      that are subject to the tax laws of nations other than the United States are
      eligible to participate in the Plan, (2) modify the terms and conditions of
      any
      Awards granted to such Employees (including the grant of Stock Appreciation
      Rights or some other comparable form of award (“Substitute Award”), and (3)
      establish subplans, modified Stock Option exercise procedures and other terms
      and procedures to the extent such actions may be necessary or advisable. Any
      subplans established under this Article by the Committee shall be attached
      to
      this Plan as appendices. The terms of this Plan applicable to Stock Options
      shall apply with like effect to Stock Appreciation Rights, Restricted Stock
      Unit
      Awards, Performance-Based Awards and Substitute Awards to the extent legally
      permissible.

     

              6.
      Stock
      Options
      .

     

                        6.1.
      Grant
      . Stock
      Options granted under the Plan shall be in respect of Common Stock and may
      be in
      the form of Incentive Stock Options or Non-Qualified Stock Options (“Stock
      Options”); provided, however, that an Incentive Stock Option may only be granted
      to an employee of the Company or its Subsidiaries and no Incentive Stock Option
      shall be granted more than ten years after the date this Plan is adopted by
      the
      Board.

     

                        6.2.
      Terms
      and Conditions
      . Stock
      Options shall be subject to the terms and conditions set forth in this Section
      6
      and any additional terms and conditions, not inconsistent with the express
      terms
      and provisions of the Plan, as the Committee shall set forth in the relevant
      Award Agreement. The Award Agreement pertaining to a Stock Option shall
      designate such Option as an Incentive Stock Option or a Non-Qualified Stock
      Option. Notwithstanding any such designation, to the extent that the aggregate
      Fair Market Value (determined as of the Grant Date) of Common Stock with respect
      to which Stock Options designated as Incentive Stock Options are exercisable
      for
      the first time by a Participant during any calendar year (under this Plan or
      any
      other plan of the Company, or any parent or subsidiary as defined in Section
      424
      of the Code) exceeds $100,000, such Stock Options shall constitute Non-Qualified
      Stock Options. For purposes of the preceding sentence, Incentive Stock Options
      shall be taken into account in the order in which they are granted.

     

                        6.3.
      Exercise
      Price
      . The
      exercise price per share of Common Stock subject to a Stock Option shall be
      determined by the Committee in its sole discretion at the time of grant and
      shall be indicated in the Participant’s Award Agreement; provided, however, that
      the Exercise Price shall be not less than one hundred percent (100%) of the
      Fair
      Market Value of a share of Common Stock on the Grant Date; and provided further,
      that the Exercise Price with respect to an Incentive Stock Option granted to
      a
      Ten Percent Holder shall not be less than one hundred-ten percent (110%) of
      the
      Fair Market Value of a share of Common Stock on the Grant Date such Stock Option
      is granted

     

                        6.4.
      Term
      . The
      term of each Stock Option shall be such a period of time as is fixed by the
      Committee; provided, however, that the expiration date with respect to a Stock
      Option shall not be later than the tenth anniversary of its Grant Date and
      the
      expiration date with respect to an Incentive Stock Option granted to a Ten
      Percent Holder shall not be later than the fifth anniversary of its Grant
      Date.

     

                        6.5.
      Method
      of Exercise
      . A
      Stock Option may be exercised, in whole or in part, by giving written notice
      of
      exercise to the Secretary of the Company or such other person as may be
      designated by the Committee specifying the number of shares to be purchased.
      Such notice shall be accompanied by payment in full of the exercise price in
      cash, by certified check, bank draft or money order payable to the order of
      the
      Company, or by any other mechanism permitted by the Committee in its sole
      discretion. Payment instruments shall be received by the Company subject to
      collection. The proceeds received by the Company upon exercise of any Stock
      Option may be used by the Company for general corporate purposes. Any portion
      of
      a Stock Option that is exercised may not be exercised again.

    
      
         

      

      
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              7.
      Stock
      Appreciation Rights
      .

     

                        7.1.
      Terms
      and Conditions
      . The
      grant of Stock Appreciation Rights under the Plan shall be subject to the terms
      and conditions set forth in this Section 7 and any additional terms and
      conditions, not inconsistent with the express terms and provisions of the Plan,
      as the Committee shall set forth in the relevant Award Agreement.

     

                        7.2.
      Stock
      Appreciation Rights
      . A
      Stock Appreciation Right is an Award granted with respect to a specified number
      of shares of Common Stock entitling a Participant to receive an amount equal
      to
      the excess of the Fair Market Value of a share of Common Stock on the date
      of
      exercise over the Fair Market Value of a share of Common Stock on the date
      of
      grant of the Stock Appreciation Right, multiplied by the number of shares of
      Common Stock with respect to which the Stock Appreciation Right shall have
      been
      exercised.

     

                        7.3.
      Grant
      . A
      Stock Appreciation Right may be granted in addition to any other Award under
      the
      Plan or in tandem with or independent of a Stock Option.

     

                        7.4.
      Date
      of Exercisability
      . In
      respect of any Stock Appreciation Right granted under the Plan, unless otherwise
      (a) determined by the Committee (in its sole discretion) at any time and from
      time to time in respect of any such Stock Appreciation Right, or (b) provided
      in
      the Award Agreement, a Stock Appreciation Right may be exercised by a
      Participant, in accordance with and subject to all of the procedures established
      by the Committee, in whole or in part at any time and from time to time during
      its specified term. Notwithstanding the preceding sentence, in no event shall
      a
      Stock Appreciation Right be exercisable prior to the exercisability of any
      Stock
      Option with which it is granted in tandem. The Committee may also provide,
      as
      set forth in the relevant Award Agreement and without limitation, that some
      Stock Appreciation Rights shall be automatically exercised and settled on one
      or
      more fixed dates specified therein by the Committee.

     

                        7.5.
      Form
      of Payment
      . Upon
      exercise of a Stock Appreciation Right, payment may be made in cash, in
      Restricted Shares or in shares of unrestricted Common Stock, or in any
      combination thereof, as the Committee, in its sole discretion, shall determine
      and provide in the relevant Award Agreement.

     

                        7.6.
      Tandem
      Grant
      . The
      right of a Participant to exercise a tandem Stock Appreciation Right shall
      terminate to the extent such Participant exercises the Stock Option to which
      such Stock Appreciation Right is related.

     

              8.
      Restricted
      Shares and Restricted Stock Units.
      

     

                        8.1.
      Terms
      and Conditions
      . Awards
      of Restricted Shares and/or Restricted Stock Units shall be subject to the
      terms
      and conditions set forth in this Section 8 and any additional terms and
      conditions, not inconsistent with the express terms and provisions of the Plan,
      as the Committee shall set forth in the relevant Award Agreement or other
      applicable agreement. Subject to the terms of the Plan, the Committee shall
      determine the number of Restricted Shares and/or Restricted Stock Units to
      be
      granted to a Participant and the Committee may provide or impose different
      terms
      and conditions on any particular Restricted Shares and/or Restricted Stock
      Units
      grant made to any Participant. With respect to each Participant receiving an
      Award of Restricted Shares, there shall be issued a stock certificate (or
      certificates) in respect of such Restricted Shares. Such stock certificate(s)
      shall be registered in the name of the Participant, and shall bear any required
      legends.

     

                       8.2.
      Restricted
      Share and/or Restricted Stock Unit Grants
      . A
      grant of Restricted Shares is an Award of shares of Common Stock granted to
      a
      Participant, subject to such restrictions, terms and conditions, if any, as
      the
      Committee deems appropriate, including, without limitation, (a) restrictions
      on
      the sale, assignment, transfer, hypothecation or other disposition of such
      shares, (b) the requirement that the Participant deposit such shares with the
      Company while such shares are subject to such restrictions, and (c) the
      requirement that such shares be forfeited upon termination of employment or
      service for any reason or for specified reasons within a specified period of
      time (including, without limitation, the failure to achieve designated
      performance goals). Restricted Stock Units shall be similar to Restricted Shares
      except that no shares of Common Stock are actually awarded to the Participant
      on
      the date of grant.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

                        8.3.
      Restriction
      Period
      . In
      accordance with Sections 8.1 and 8.2 of the Plan and unless otherwise determined
      by the Committee (in its sole discretion) at any time and from time to time,
      Restricted Shares and/or Restricted Stock Units shall only become unrestricted
      and vested in the Participant in accordance with such vesting schedule and
      any
      other applicable restrictions, terms and conditions relating to such Restricted
      Shares and/or Restricted Stock Units, if any, as the Committee may establish
      in
      the relevant Award Agreement or other applicable agreement (the “Restriction
      Period”). During the Restriction Period, such stock shall be and remain unvested
      and a Participant may not sell, assign, transfer, pledge, encumber or otherwise
      dispose of or hypothecate such Award. Upon satisfaction of the vesting schedule
      and any other applicable restrictions, terms and conditions, the Participant
      shall be entitled to receive the Restricted Shares and/or Restricted Stock
      Units
      or a portion thereof, as the case may be, as provided in Section 8.4 of the
      Plan.

     

                        8.4.
      Payment of
      Restricted Share and/or Restricted Stock Unit Grants
      . After
      the satisfaction and/or lapse of the restrictions, terms and conditions
      established by the Committee in respect of a grant of Restricted Shares, a
      new
      certificate, without the legend set forth in Section 8.1 hereof, for the number
      of shares of Common Stock which are no longer subject to such restrictions,
      terms and conditions shall, as soon as practicable thereafter, be delivered
      to
      the Participant. Except as otherwise provided in this Section 8 or under
      applicable law, Restricted Stock Units shall be paid on such date and in such
      form (e.g., cash, shares, or a combination of cash and shares, or services
      rendered or to be rendered) as the Committee, in its sole discretion, shall
      determine.

     

                        8.5.
      Stockholder
      Rights
      . A
      Participant shall have, with respect to the shares of Common Stock underlying
      a
      grant of Restricted Shares, all of the rights of a stockholder of such stock
      (except as such rights (including the right to receive dividends), in the
      Committee’s discretion, are limited or restricted under the Plan or in the
      relevant Award Agreement or in any other applicable agreement). Any stock
      dividends paid in respect of unvested Restricted Shares shall (to the extent
      the
      unvested Restricted Shares are entitled to receive dividends) be treated as
      additional Restricted Shares and shall be subject to the same restrictions
      and
      other terms and conditions that apply to the unvested Restricted Shares in
      respect of which such stock dividends are issued. There shall be no shareholder
      rights with respect to any Restricted Stock Units granted
      hereunder.

     

              9.
      Performance-Based
      Awards
      .

     

                        9.1.
      Terms
      and Conditions
      . The
      Board may grant Performance-Based Awards in the form of Performance Units or
      other Awards that are intended to constitute Qualified Performance-Based
      Compensation. All Performance-Based Awards shall be subject to the terms and
      conditions set forth in this Section 9 and any additional terms and conditions,
      not inconsistent with the express provisions of the Plan, as the Committee
      shall
      set forth in the relevant Award Agreement.

     

                        9.2.
      Performance
      Unit Grants
      . A
      Performance Unit is an Award of units (with each unit representing such monetary
      amount as is designated by the Committee in the Award Agreement) granted to
      a
      Participant, subject to such terms and conditions as the Committee deems
      appropriate, including, without limitation, the requirement that the Participant
      forfeit such units (or a portion thereof) in the event certain performance
      criteria or other conditions are not met within a designated period of
      time.

     

                        9.3.
      Grants
      .
      Performance-Based Awards may be granted alone or in addition to any other Awards
      under the Plan. Subject to the terms of the Plan, the Committee shall determine
      the number of Performance-Based Awards to be granted to a Participant and the
      Committee may impose different terms and conditions on any particular
      Performance-Based Awards granted to any Participant. To the extent necessary
      to
      comply with the Qualified Performance-Based Compensation requirements of Section
      162(m)(4)(C) of the Code, with respect to any Award which may be granted to
      one
      or more Covered Employees, no later than ninety (90) days following the
      commencement of any fiscal year in question or any other designated fiscal
      period or period of service (or such other time as may be required or permitted
      by Section 162(m) of the Code), the Committee shall, in writing, (a) designate
      one or more Covered Employees, (b) select the Performance Criteria applicable
      to
      the Performance Period, (c) establish the Performance Goals, and amounts of
      such
      Awards, as applicable, which may be earned for such Performance Period, and
      (d)
      specify the relationship between Performance Criteria and the Performance Goals
      and the amounts of such Awards, as applicable, to be earned by each Covered
      Employee for such Performance Period. Following the completion of each
      Performance Period, the Committee shall certify in writing whether the
      applicable Performance Goals have been achieved for such Performance Period.
      In
      determining the amount earned by a Covered Employee, the Committee shall have
      the right to reduce or eliminate (but not to increase) the amount payable at
      a
      given level of performance to take into account additional factors that the
      Committee may deem relevant to the assessment of individual or corporate
      performance for the Performance Period.

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

                        9.4.
      Performance
      Goals and Performance Periods
      .
      Participants granted a Performance-Based Award shall be entitled to payment
      in
      respect of such Award to the extent the Company and/or the Participant achieves
      certain performance goals (the “Performance Goals”) during and in respect of a
      designated performance period (the “Performance Period”). The Performance Goals
      and the Performance Period shall be established by the Committee, in its sole
      discretion. The Committee shall establish Performance Goals for each Performance
      Period prior to, or as soon as practicable after, the commencement of such
      Performance Period. The Committee shall also establish a schedule or schedules
      for Performance-Based Awards setting forth the portion of the Award which will
      be earned or forfeited based on the degree of achievement, or lack thereof,
      of
      the Performance Goals at the end of the relevant Performance Period. In setting
      Performance Goals, the Committee may use, but shall not be limited to, such
      measures as total shareholder return, return on equity, net earnings growth,
      sales or revenue growth, cash flow, comparisons to peer companies, individual
      or
      aggregate Participant performance or such other measure or measures of
      performance as the Committee, in its sole discretion, may deem appropriate.
      Such
      performance measures shall be defined as to their respective components and
      meaning by the Committee (in its sole discretion). During any Performance
      Period, the Committee shall have the authority to adjust the Performance Goals
      and/or the Performance Period in such manner as the Committee, in its sole
      discretion, deems appropriate at any time and from time to time.

     

                        9.5.
      Payment
      of Performance-Based Awards
      . With
      respect to each Performance-Based Award, the Participant shall, if the
      applicable Performance Goals have been achieved, or partially achieved, as
      determined by the Committee in its sole discretion, by the Company and/or the
      Participant during the relevant Performance Period, be entitled to receive
      payment in an amount equal to the designated value of each Performance-Based
      Award times the number of such units so earned. Payment in settlement of earned
      Performance-Based Awards shall be made as soon as practicable following the
      conclusion of the respective Performance Period in cash, in unrestricted Common
      Stock, or in Restricted Shares, or in any combination thereof, as the Committee
      in its sole discretion, shall determine and provide in the relevant Award
      Agreement.

     

                        9.6.
      Additional
      Limitations
      .
      Notwithstanding any other provision of the Plan, any Award which is granted
      to a
      Covered Employee and is intended to constitute Qualified Performance-Based
      Compensation shall be subject to any additional limitations set forth in Section
      162(m) of the Code (including any amendment to Section 162(m) of the Code)
      or
      any regulations or rulings issued thereunder that are requirements for
      qualification as qualified performance-based compensation as described in
      Section 162(m)(4)(C) of the Code, and the Plan shall be deemed amended to the
      extent necessary to conform to such requirements.

     

              10.
      Non-transferability
      of Awards
      .

     

                        10.1.
      Awards
      . Unless
      otherwise provided in the Participant’s Award Agreement, no Award under the Plan
      or any Award Agreement, and no rights or interests herein or therein, shall
      or
      may be assigned, transferred, sold, exchanged, encumbered, pledged, or otherwise
      hypothecated or disposed of by a Participant or any beneficiary(ies) of any
      Participant, except by testamentary disposition by the Participant or pursuant
      to the laws of intestate succession. No such interest shall be subject to
      execution, attachment or similar legal process, including, without limitation,
      seizure for the payment of the Participant’s debts, judgments, alimony, or
      separate maintenance.

     

              11.
      Changes
      in Capitalization and Other Matters
      .

     

                        11.1.
      No
      Corporate Action Restriction
      . The
      existence of the Plan, any Award Agreement and/or the Awards granted hereunder
      shall not limit, affect or restrict in any way the right or power of the Board
      or the stockholders of the Company to make or authorize (a) any adjustment,
      recapitalization, reorganization or other change in the Company’s or any
      Subsidiary’s capital structure or its business, (b) any merger, consolidation or
      change in the ownership of the Company or any Subsidiary, (c) any issue of
      bonds, debentures, capital, preferred or prior preference stocks ahead of or
      affecting the Company’s or any Subsidiary’s capital stock or the rights thereof,
      (d) any dissolution or liquidation of the Company or any Subsidiary, (e) any
      sale or transfer of all or any part of the Company’s or any Subsidiary’s assets
      or business, or (f) any other corporate act or proceeding by the Company or
      any
      Subsidiary. No Participant, beneficiary or any other person shall have any
      claim
      against any member of the Board, the Committee, the Company or any Subsidiary,
      or any employees, officers, stockholders or agents of the Company or any
      subsidiary, as a result of any such action.

     

                        11.2.
      Changes
      in Capital Structure
      . Awards
      granted under the Plan and any agreements evidencing such Awards and the maximum
      number of shares of Common Stock subject to all Awards stated in Section 4.2
      shall be subject to adjustment or substitution, as determined by the Board
      in
      its sole discretion, as to the number, price or kind of a share of stock or
      other consideration subject to such Awards or as otherwise determined by the
      Board to be equitable (i) in the event of changes in the outstanding stock
      or in
      the capital structure of the Company by reason of stock or extraordinary cash
      dividends, stock splits, reverse stock splits, recapitalization,
      reorganizations, mergers, consolidations, combinations, exchanges, or other
      relevant changes in capitalization occurring after the date of grant of any
      such
      Award or (ii) in the event of any change in applicable laws or any change in
      circumstances which results in or would result in any substantial dilution or
      enlargement of the rights granted to, or available for, Participants, or which
      otherwise warrants equitable adjustment because it interferes with the intended
      operation of the Plan. The Company shall give each Participant notice of an
      adjustment hereunder and, upon notice, such adjustment shall be conclusive
      and
      binding for all purposes.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

              Notwithstanding
      the above, in the event of any of the following:

    

    
      	
               

            	
               

            	
               

            
	
               

            	
              A.

            	
              The
                Company is merged into or consolidated with another corporation or
                entity;

            
	
               

            	 
	
               

            	
              B.

            	
              All
                or substantially all of the assets of the Company are acquired by
                another
                person; or

            
	
               

            	 
	
               

            	
              C.

            	
              The
                reorganization or liquidation of the
                Company;

            

    

     

    the
      Board
      may, in its discretion and upon at least ten (10) days advance notice to the
      affected persons, cancel any outstanding Awards and cause the holders thereof
      to
      be paid, in cash or stock (including any stock of a successor or acquirer),
      or
      any combination thereof, the value of such Awards as determined by the Board
      (e.g., in the case of Stock Options, based upon the excess of the value of
      a
      share of Common Stock over the exercise price per share).

     

              12.
      Amendment,
      Suspension and Termination
      .

     

                        12.1.
      In
      General
      . The
      Board may suspend or terminate the Plan (or any portion thereof) at any time
      and
      may amend the Plan at any time and from time to time in such respects as the
      Board may deem advisable or in the best interests of the Company or any
      Subsidiary. No such amendment, suspension or termination shall materially and
      adversely affect the rights of any Participant under any outstanding Awards,
      without the consent of such Participant.

     

                        12.2.
      Award
      Agreement Modifications
      . The
      Board may, in its sole discretion, amend or modify at any time and from time
      to
      time the terms and provisions of any outstanding Award in any manner to the
      extent that the Board under the Plan or any Award Agreement could have initially
      determined the restrictions, terms and provisions of such Award. No such
      amendment or modification shall materially and adversely affect the rights
      of
      any Participant under any Award without the consent of the Participant;
      provided, however, that the Board may amend the Plan and any Award Agreement,
      including, without limitation, retroactive amendments, as necessary to avoid
      the
      imposition of any taxes under Section 409A of the Code

     

              13.
      Miscellaneous
      .

     

                        13.1.
      Tax
      Withholding
      . The
      Company shall have the right to deduct from any payment or settlement under
      the
      Plan, including, without limitation, the exercise of any Stock Option, or the
      delivery, transfer or vesting of Restricted Shares or any other Award, any
      federal, state, local, foreign or other taxes of any kind which the Committee,
      in its sole discretion, deems necessary to be withheld to comply with the Code
      and/or any other applicable law, rule or regulation. In addition, the Company
      shall have the right to require payment from a Participant to cover any
      applicable withholding or other employment taxes due upon any payment or
      settlement under the Plan.

     

                        13.2.
      No
      Right to Employment
      .
      Neither the adoption of the Plan, the granting of any Award, nor the execution
      of any Award Agreement, shall confer upon any employee, director or consultant
      of the Company or any Subsidiary any right to continued employment, Board
      membership or consulting relationship with the Company or any Subsidiary, as
      the
      case may be, nor shall it interfere in any way with the right, if any, of the
      Company or any Subsidiary to terminate the employment, directorship or
      consulting relationship of any employee, director or consultant at any time
      for
      any reason, even if such termination adversely affects such Participant’s
      Awards.

     

                        13.3.
      Listing,
      Registration and Other Legal Compliance
      . No
      Awards or shares of the Common Stock shall be required to be issued or granted
      under the Plan or any Award Agreement unless legal counsel for the Company
      shall
      be satisfied that such issuance or grant will be in compliance with all
      applicable securities laws and regulations and any other applicable laws or
      regulations. The Committee may require, as a condition of any payment or share
      issuance, that certain agreements, undertakings, representations, certificates,
      and/or information, as the Committee may deem necessary or advisable, be
      executed or provided to the Company to assure compliance with all such
      applicable laws or regulations. Certificates for shares of Common Stock
      delivered under the Plan may bear appropriate legends and may be subject to
      such
      stock-transfer orders and such other restrictions as the Committee may deem
      advisable under the rules, regulations, or other requirements of the Securities
      and Exchange Commission, any stock exchange upon which the Common Stock is
      listed, and any applicable securities law. In addition, if, at any time
      specified herein (or in any Award Agreement or otherwise) for (a) the making
      of
      any Award, or the making of any determination, (b) the issuance or other
      distribution of Common Stock, or (c) the payment of amounts to or through a
      Participant with respect to any Award, any law, rule, regulation or other
      requirement of any governmental authority or agency shall require either the
      Company, any Subsidiary or any Participant (or any estate, designated
      beneficiary or other legal representative thereof) to take any action in
      connection with any such determination, any such shares to be issued or
      distributed, any such payment, or the making of any such determination, as
      the
      case may be, shall be deferred until such required action is taken.

    
      
         

      

      
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                        13.4.
      Award
      Agreements
      . Each
      Participant receiving an Award under the Plan shall enter into an Award
      Agreement and any other agreement required by the Committee with the Company
      in
      such forms as specified by the Committee. Each Participant shall agree to the
      restrictions, terms and conditions of the Award set forth therein and in the
      Plan.

     

                        13.5.
      Designation
      of Beneficiary
      . Each
      Participant to whom an Award has been made under the Plan may designate a
      beneficiary or beneficiaries to exercise any Stock Option or to receive any
      payment which under the terms of the Plan and the relevant Award Agreement
      may
      become exercisable or payable on or after the Participant’s death. At any time,
      and from time to time, any such designation may be changed or cancelled by
      the
      Participant without the consent of any such beneficiary. Any such designation,
      change or cancellation must be on a form provided for that purpose by the
      Committee and shall not be effective until received by the Committee. If no
      beneficiary has been designated by a deceased Participant, or if the designated
      beneficiaries have predeceased the Participant, the beneficiary shall be the
      Participant’s estate. If the Participant designates more than one beneficiary,
      any payments under the Plan to such beneficiaries shall be made in equal shares
      unless the Participant has expressly designated otherwise, in which case the
      payments shall be made in the shares designated by the Participant.

     

                        13.6.
      Leaves
      of Absence/Transfers
      . The
      Committee shall have the power to promulgate rules and regulations and to make
      determinations, as it deems appropriate, under the Plan in respect of any leave
      of absence from the Company or any Subsidiary granted to a Participant. Without
      limiting the generality of the foregoing, the Committee may determine whether
      any such leave of absence shall be treated as if the Participant has terminated
      employment with the Company or any Subsidiary. If a Participant transfers within
      the Company, or to or from any Subsidiary, such Participant shall not be deemed
      to have terminated employment as a result of such transfer.

     

                        13.7.
      Discretionary
      Nature of Benefit
      . The
      issuance of an Award does not entitle the Participant to any benefit other
      than
      that granted under the Plan. Any benefits granted under the Plan are not part
      of
      the Participant’s ordinary salary and shall not be considered as part of such
      salary in the event of severance, redundancy or resignation. The benefits
      granted under the Plan are entirely at the grace and discretion of the Company
      and are not compensation for past performance.

     

                        13.8.
      Transmission
      of Private Data
      . The
      Participants agrees to the transfer of any information by his employer, to
      related corporations, including the Company, relating to his participation
      in
      the Plan.

     

                        13.9.
      Governing
      Law
      . The
      Plan and all actions taken thereunder shall be governed by and construed in
      accordance with the laws of the State of Delaware, without reference to the
      principles of conflict of laws thereof. Any titles and headings herein are
      for
      reference purposes only, and shall in no way limit, define or otherwise affect
      the meaning, construction or interpretation of any provisions of the
      Plan.

     

                        13.10.
      Effective
      Date
      . The
      Plan shall be effective as of the date of its approval by the
      Board.

    
      
         

      

      
        9

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