Document:

ex4_1.htm

EXHIBIT 4.1

BOOTS & COOTS INTERNATIONAL WELL CONTROL, INC.

2004 LONG TERM INCENTIVE PLAN

(Amended and Restated Effective May 21, 2009)

	
1.
	
PURPOSE OF THE PLAN

This 2004 Long Term Incentive Plan (Amended and Restated Effective May 21, 2009) (the “Plan”) is intended to promote the interests of Boots & Coots International Well Control, Inc., a Delaware corporation (the “Company”), by providing the employees and long term consultants of the Company largely responsible
for the management, growth and protection of the business of the Company, with an ownership stake in the Company.

	
2.
	
DEFINITIONS

As used in the Plan, the following definitions apply to the terms indicated below:

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

(b)           “Cause,” when used in connection with the termination of a Participant’s employment or service (in the case of a consultant) with the Company, shall mean the termination of the Participant’s employment or service by the Company by reason of (i)
the conviction of the Participant by a court of competent jurisdiction as to which no further appeal can be taken of a crime involving moral turpitude; (ii) the proven commission by the Participant of an act of fraud upon the Company; (iii) the proven misappropriation of any funds or property of the Company by the Participant; (iv) the willful, continued and unreasonable failure by the Participant to perform duties assigned to him and appropriate for his position; (v) the knowing engagement by the Participant
in any direct, material conflict of interest with the Company without compliance with the Company’s conflict of interest policy, if any, then in effect; (vi) the knowing engagement by the Participant, without the written approval of the Board of Directors, in any activity which competes with the business of the Company or which would result in a material injury to the Company; or (vii) the knowing engagement in any activity which would constitute a material violation of the provisions of the Company’s
Policies and Procedures Manual, if any, then in effect.

(c)           “Cash Bonus” shall mean an award of a bonus payable in cash pursuant to Section 11 hereof.

(d)           “Change in Control” shall mean:

	
  
	
(i)
	
a “change in control” of the Company, as that term is contemplated in the federal securities laws; or

	
  
	
(ii)
	
the occurrence of any of the following events:

(A)  any Person becomes, after the effective date of this Plan the “beneficial owner” (as defined in Rule 13d-3 promulgated under the Exchange Act), directly or indirectly, of securities of the Company representing 50.1% or more of the combined voting power of the Company’s then outstanding securities; provided,
that the acquisition of additional voting securities, after the effective date of this Plan, by any Person who is, as of the effective date of this Plan, the beneficial owner, directly or indirectly, of 50.1% or more of the combined voting power of the Company’s then outstanding securities, shall not constitute a “Change in Control” of the Company for purposes of this Section 2(d);

  

  

  

 

(B)            a majority of individuals who are nominated by the Board of Directors for election to the Board of Directors on any date, fail to be elected to the Board of Directors as a direct or indirect result of any proxy fight or contested election for positions on the Board
of Directors; or

(C)           the sale, lease, transfer or other disposition of all or substantially all of the assets of the Company (other than to a wholly-owned subsidiary of the Company).

(e)           “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.

(f)           “Committee” shall mean the Compensation Committee of the Board of Directors or such other committee as the Board of Directors shall appoint from time to time to administer the Plan.

(g)           “Common Stock” shall mean the Company’s Common Stock, par value $.00001 per share.

(h)           “Company” shall mean Boots & Coots International Well Control, Inc., a Delaware corporation, each of its Subsidiaries, and its successors.

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

(j)           The “Fair Market Value” of a share of Common Stock on any date shall be (i) the closing sale price on that date of a share of Common Stock as reported on the principal securities exchange on which shares of Common Stock are then listed or admitted to trading
or (ii) if not so reported, the average of the closing bid and asked prices for a share of Common Stock on that date as quoted on the National Association of Securities Dealers Automated Quotation System (“NASDAQ”), or (iii) if not quoted on NASDAQ, the average of the closing bid and asked prices for a share of Common Stock as quoted by the Pink OTC Markets, Inc.’s “Pink Sheets” or the National Association of Securities Dealers’ OTC Bulletin Board System. If the price of a
share of Common Stock shall not be so reported, the Fair Market Value of a share of Common Stock shall be determined (i) with respect to Incentive Stock Options, in good faith by the Committee within the meaning of Section 422 of the Code, or (ii) with respect to other Incentive Awards, in good faith by the Committee using a “reasonable application of a reasonable valuation method” within the meaning of Treasury Regulation Section 1.409A-1(b)(5)(iv)(B).

(k)           “Incentive Award” shall mean an Option, a Stock Appreciation Right, a share of Restricted Stock, a share of Phantom Stock, a Stock Bonus or Cash Bonus granted pursuant to the terms of the Plan.

(l)           “Incentive Stock Option” shall mean an Option which is an “incentive stock option” within the meaning of Section 422 of the Code and which is identified as an Incentive Stock Option in the agreement by which it is evidenced.

(m)           “Issue Date” shall mean the date established by the Committee on which shares of Restricted Stock shall be issued by the Company pursuant to the terms of Section 8(d) hereof.

(n)           “Non-Qualified Stock Option” shall mean an Option which is not an Incentive Stock Option and which is identified as a Non-Qualified Stock Option in the agreement by which it is evidenced.

(o)           “Option” shall mean an option to purchase shares of Common Stock of the Company granted pursuant to Section 6 hereof.  Each Option shall be identified as either an Incentive Stock Option or a Non-Qualified Stock Option in the agreement by which it
is evidenced.

(p)           “Participant” shall mean a full-time employee or a consultant (whether full or part time) of the Company who is eligible to participate in the Plan and to whom an Incentive Award is granted pursuant to the Plan.

  

  

  

 

(q)           “Person” shall mean a “person,” as such term is used in Sections 13(d) and 14(d) of the Exchange Act, and the rules and regulations in effect from time to time thereunder.

(r)           A share of “Phantom Stock” shall represent the right to receive in cash the Fair Market Value of a share of Common Stock of the Company, which right is granted pursuant to Section 9 hereof and subject to the terms and conditions contained therein.

(s)           “Plan” shall mean the Boots & Coots International Well Control, Inc. 2004 Long Term Incentive Plan (Amended and Restated Effective May 21, 2009).

(t)           “Qualified Domestic Relations Order” shall mean a qualified domestic relations order as defined in the Code, in Title I of the Employee Retirement Income Security Act, or in the rules and regulations as may be in effect from time to time thereunder.

(u)           A share of “Restricted Stock” shall mean a share of Common Stock which is granted pursuant to the terms of Section 8 hereof and which is subject to the restrictions set forth in Section 8(c) hereof for so long as such restrictions continue to apply to such
share.

(v)           “Securities Act” shall mean the Securities Act of 1933, as amended from time to time.

(w)           “Stock Appreciation Rights” or “SARs” shall mean a right granted to a Participant pursuant to Section 7 with respect to a share of Common Stock to receive upon exercise cash, Common Stock or a combination of cash and Common Stock, equal to the
appreciation in value of a share of Common Stock.

(x)           “Stock Bonus” shall mean a grant of a bonus payable in shares of Common Stock pursuant to Section 10 hereof.

(y)           “Subsidiary” or “Subsidiaries” shall mean any and all corporations in which at the pertinent time the Company owns, directly or indirectly, stock vested with 50% or more of the total combined voting power of all classes of stock of such corporations
within the meaning of Section 424(f) of the Code.

(z)           “Vesting Date” shall mean the date established by the Committee on which a share of Restricted Stock or Phantom Stock may vest.

	
3.
	
STOCK SUBJECT TO THE PLAN

Under the Plan, the Committee may grant to Participants (i) Options, (ii) SARs, (iii) shares of Restricted Stock, (iv) shares of Phantom Stock, (v) Stock Bonuses and (vi) Cash Bonuses.

The Committee may grant Options, SARs, shares of Restricted Stock, shares of Phantom Stock and Stock Bonuses under the Plan with respect to a number of shares of Common Stock that in the aggregate at any time does not exceed 11,000,000 shares of Common Stock; provided, however, that the maximum number of shares of Common Stock for which
Options and SARs may be granted under the Plan to any one Participant during a calendar year shall be 1,000,000.  The maximum aggregate number of shares of Common Stock that may be issued under the Plan through Incentive Stock Options is 11,000,000.

The grant of a Cash Bonus shall not reduce the number of shares of Common Stock with respect to which Options, SARs, shares of Restricted Stock, shares of Phantom Stock or Stock Bonuses may be granted pursuant to the Plan.  The grant of an SAR that may be settled only in cash shall not reduce the number of shares of Common Stock
with respect to which Options, SARs, shares of Restricted Stock, shares of Phantom Stock or Stock Bonuses may be granted pursuant to the Plan.

  

  

  

 

If any outstanding Option or SAR expires, terminates or is canceled for any reason, the shares of Common Stock subject to the unexercised portion of such Option or SAR shall again be available for grant under the Plan.  If any shares of Restricted Stock or Phantom Stock, or any shares of Common Stock granted in a Stock Bonus are
forfeited or canceled for any reason, such shares shall again be available for grant under the Plan.

Shares of Common Stock issued under the Plan may be either newly issued or treasury shares, at the discretion of the Committee.

	
4.
	
ADMINISTRATION OF THE PLAN

The Plan shall be administered by a Committee of the Board of Directors consisting of two or more persons, all of whom shall be both (i) a “Non-Employee Director” within the meaning of Rule 16b-3 promulgated under the Exchange Act and (ii) an “outside director” within the meaning of the definition of such term as
contained in Treasury Regulation Section 1.162-27(e)(3) interpreting Section 162(m) of the Code, or any successor definitions that may be adopted.  The members of the Committee shall be appointed from time to time by, and shall serve at the discretion of, the Board of Directors.  The Committee shall from time to time designate the employees and consultants of the Company who shall be granted Incentive Awards and the amount and type of such Incentive Awards.

The Committee shall have full authority to administer the Plan, including authority to interpret and construe any provision of the Plan and the terms of any Incentive Award issued under it and to adopt such rules and regulations for administering the Plan as it may deem necessary.  Decisions of the Committee shall be final and
binding on all parties.

The Committee may, in its absolute discretion, (i) accelerate, within the original term of any Option or SAR granted under the Plan, the date on which such Option or SAR becomes exercisable, (ii) extend, within the original term of any Option or SAR granted under the Plan, the date on which such Option or SAR ceases to be exercisable, (iii)
accelerate the Vesting Date or Issue Date, or waive any condition imposed pursuant to Section 8(b) hereof, with respect to any share of Restricted Stock granted under the Plan and (iv) accelerate the Vesting Date or waive any condition imposed pursuant to Section 9 hereof, with respect to any share of Phantom Stock granted under the Plan that is exempt from Section 409A of the Code pursuant to Treasury Regulation Section 1.409A-1(b)(4).

In addition, the Committee may, in its absolute discretion, grant Incentive Awards to Participants on the condition that such Participants surrender to the Committee for cancellation such other Incentive Awards as the Committee specifies.  However, the Committee may not, without stockholder approval, grant Incentive Awards to
Participants with lower exercise prices on the condition that such Participants surrender to the Committee such other Incentive Awards the Participant may hold that have exercise prices higher than the newly granted awards. Notwithstanding Section 3 hereof, Incentive Awards granted on the condition of surrender of outstanding Incentive Awards shall not count against the limits set forth in such Section 3 until such time as such Incentive Awards are surrendered.

Whether an authorized leave of absence, or absence in military or government service, shall constitute termination of employment or service shall be determined by the Committee in its absolute discretion.

No member of the Committee shall be liable for any action, omission, or determination relating to the Plan, and the Company shall indemnify and hold harmless each member of the Committee and each other director or employee of the Company to whom any duty or power relating to the administration or interpretation of the Plan has been delegated
from and against any cost or expense (including attorneys’ fees) or liability (including any sum paid in settlement of a claim with the approval of the Committee) arising out of any action, omission or determination relating to the Plan, unless, in either case, such action, omission or determination was taken or made by such member, director or employee in bad faith and without reasonable belief that it was in the best interests of the Company.

  

  

  

 

	
5.
	
ELIGIBILITY

The persons who shall be eligible to receive Incentive Awards pursuant to the Plan shall be such full-time employees and consultants (whether full or part time) of the Company as the Committee, in its absolute discretion, shall select from time to time.  Notwithstanding the generality of the foregoing, no employee or consultant
of the Company shall be eligible to receive Incentive Awards pursuant to this Plan if such person is also entitled to receive an Incentive Award under the terms of his employment or consulting agreement with the Company, or any specialty long term incentive plan or incentive stock plan adopted after the date hereof, unless such employment or consulting agreement or specialty plan expressly provides otherwise.

	
6.
	
OPTIONS

The Committee may grant Options pursuant to the Plan, which Options shall be evidenced by agreements in such form as the Committee shall from time to time approve.  Options shall comply with and be subject to the following terms and conditions:

(a)           Identification of Options.  All Options granted under the Plan shall be clearly identified in the agreement evidencing such Options as either Incentive Stock Options or as Non-Qualified Stock Options.  Consultants
shall not be entitled to receive Incentive Stock Options.

(b)           Exercise Price.  The exercise price of any Non-Qualified Stock Option granted under the Plan shall be such price as the Committee shall determine on the date on which such Non-Qualified Stock Option
is granted; provided, that such price may not be less than the greater of (i) 100% of the Fair Market Value of a share of common Stock on the date on which such Non-Qualified Stock Option is granted or (ii) the minimum price required by law.  Except as provided in Section 6(d) hereof, the exercise price of any Incentive Stock Option granted under the Plan shall be not less than 100% of the Fair Market Value of a share of Common Stock on the date on which such Incentive Stock Option is granted.

(c)           Term and Exercise of Options.

(1)           Each Option shall be exercisable on such date or dates, during such period and for such number of shares of Common Stock as shall be determined by the Committee on the day on which such Option is granted and set forth in the agreement evidencing the Option; provided,
however, that no Option shall be exercisable after the expiration of ten years from the date such Option was granted; and, provided, further, that each Option shall be subject to earlier termination, expiration or cancellation as provided in the Plan.

(2)           Each Option shall be exercisable in whole or in part with respect to whole shares of Common Stock.  The partial exercise of an Option shall not cause the expiration, termination or cancellation of the remaining portion thereof.  Upon the partial exercise
of an Option, the agreement evidencing such Option shall be returned to the Participant exercising such Option together with shares of Common Stock as described in Section 6(c)(5) hereof.

(3)           An Option shall be exercised by delivering notice to the Company’s principal office, to the attention of its Secretary, no fewer than five business days in advance of the effective date of the proposed exercise.  Such notice shall be accompanied by the
agreement evidencing the Option, shall specify the number of shares of Common Stock with respect to which the Option is being exercised and the effective date of the proposed exercise, and shall be signed by the Participant.  The Participant may withdraw such notice at any time prior to the close of business on the business day immediately preceding the effective date of the proposed exercise, in which case such agreement shall be returned to the Participant.  Payment for shares of Common
Stock purchased upon the exercise of an Option shall be made on the effective date of such exercise either (i) in cash, by certified check, bank cashier’s check or wire transfer or (ii) subject to the approval of the Committee, by tendering previously acquired nonforfeitable, unrestricted shares of Common Stock that have been held by the Participant for at least six months and that have an aggregate Fair Market Value at the time of exercise equal to the total exercise price (including an actual or deemed
multiple series of exchanges of such shares), or (iii) partly in shares of Common Stock with the balance in cash, by certified check, bank cashier’s check or wire transfer.  Any payment in shares of Common Stock shall be effected by the delivery of such shares to the Secretary of the Company, duly endorsed in blank or accompanied by stock powers duly executed in blank, together with any other documents and evidences as the Secretary of the Company shall require from time to time.

  

  

  

 

(4)           Any Option granted under the Plan may be exercised by a broker-dealer acting on behalf of a Participant if (i) the broker-dealer has received from the Participant or the Company a duly endorsed agreement evidencing such Option and instructions signed by the Participant
requesting the Company to deliver the shares of Common Stock subject to such Option to the broker-dealer on behalf of the Participant and specifying the account into which such shares should be deposited, (ii) adequate provision has been made with respect to the payment of any withholding taxes due upon such exercise, and (iii) the broker-dealer and the Participant have otherwise complied with Section 220.3(e)(4) of Regulation T, 12 CFR Part 220.

(5)           Shares of Common Stock purchased upon the exercise of an Option shall be issued in the name of the Participant and delivered to the Participant as soon as practicable following the effective date on which the Option is exercised.  Delivery shall be effected
for all purposes when at the Company’s direction, the stock transfer agent of the Company shall have either (1) electronically deposited such shares in Participant’s company-sponsored brokerage account, (2) deposited certificates representing the shares of Common Stock in the United States mail, addressed to the Participant, or (3) electronically deposited such shares into the account specified by Participant pursuant to subparagraph (c)(4) above.

(6)           During the lifetime of a Participant each Option granted to him shall be exercisable only by him.  No Option shall be assignable or transferable otherwise than by will or by the laws of descent and distribution.

	
  
	
(d)
	
Limitations on Grant of Incentive Stock Options.

(1)           The aggregate Fair Market Value of shares of Common Stock with respect to which “incentive stock options” (within the meaning of Section 422, without regard to Section 422(d) of the Code) are exercisable for the first time by a Participant during any calendar
year under the Plan (and any other stock option plan of the Company, or any subsidiary of the Company) shall not exceed $100,000.  Such Fair Market Value shall be determined as of the date on which each such Incentive Stock Option is granted.  If such aggregate Fair Market Value of shares of Common Stock underlying such Incentive Stock Options exceeds $100,000, then Incentive Stock Options granted hereunder to such Participant shall, to the extent and in the order required by Regulations promulgated
under the Code (or any other authority having the force of Regulations), automatically be deemed to be Non-Qualified Stock Options, but all other terms and provisions of such Incentive Stock Options shall remain unchanged. In the absence of such Regulations (and authority), or if such Regulations (or authority) require or permit a designation of the options which shall cease to constitute Incentive Stock Options, Incentive Stock Options shall, to the extent of such excess and in the order in which they were granted,
automatically be deemed to be Non-Qualified Stock Options, but all other terms and provisions of such Incentive Stock Options shall remain unchanged.

(2)           No Incentive Stock Option may be granted to an individual if, at the time of the proposed grant, such individual owns, directly or indirectly (based on the attribution rules in Section 424(d) of the Code) stock possessing more than ten percent of the total combined voting
power of all classes of stock of the Company or any of its subsidiaries, unless (i) the exercise price of such Incentive Stock Option is at least 110% of the Fair Market Value of a share of Common Stock at the time such Incentive Stock Option is granted and (ii) such Incentive Stock Option is not exercisable after the expiration of five years from the date such Incentive Stock Option is granted.

  

  

  

 

	
  
	
(e)
	
Effect of Termination of Employment or Service.

(1)           If the employment or service of a Participant with the Company shall terminate for any reason other than Cause, “permanent and total disability” (within the meaning of Section 22(e)(3) of the Code), the voluntary retirement of an employee in accordance with
the Company’s retirement policy as then in effect, or the death of the Participant, then (i) Options granted to such Participant, to the extent that they were exercisable at the time of such termination, shall remain exercisable until the expiration of one month after such termination, on which date they shall expire, and (ii) Options granted to such Participant, to the extent that they were not exercisable at the time of such termination, shall expire at the close of business on the date of such termination;
provided, however, that no Option shall be exercisable after the expiration of its term.

(2)           If the employment or service of a Participant with the Company shall terminate as a result of the “permanent and total disability” (within the meaning of Section 22(e)(3) of the Code) of the Participant, the voluntary retirement of an employee in accordance
with the Company’s retirement policy as then in effect, or the death of the Participant, then (i) Options granted to such Participant, to the extent that they were exercisable at the time of such termination, shall remain exercisable until the expiration of one year after such termination, on which date they shall expire, and (ii) Options granted to such Participant, to the extent that they were not exercisable at the time of such termination, shall expire at the close of business on the date of such termination;
provided, however, that no Option shall be exercisable after the expiration of its term.

(3)           In the event of the termination of a Participant’s employment or service for Cause, all outstanding Options granted to such Participant shall expire at the commencement of business on the date of such termination.

(f)           Acceleration of Exercise Date Upon Change in Control.  Upon the occurrence of a Change in Control and termination of employment of Participant within one year of such Change in Control, each Option
granted under the Plan and outstanding at such time shall become fully and immediately exercisable and shall remain exercisable until its expiration, termination or cancellation pursuant to the terms of the Plan.

	
7.
	
STOCK APPRECIATION RIGHTS

The Committee may grant SARs pursuant to the Plan.  Each grant of SARs shall be evidenced by an agreement in such form as the Committee shall from time to time approve.  Each grant of SARs shall comply with and be subject to the following terms and conditions:

(a)           Exercise Price.  The exercise price of any SAR granted under the Plan shall be such price as the Committee shall determine on the date on which such SAR is granted; provided, that such price may
not be less than 100% of the Fair Market Value of a share of Common Stock on the date on which such SAR is granted.

	
  
	
(b)
	
Term and Exercise of SARs.

(1)           Each SAR shall be exercisable on such date or dates, during such period and for such number of shares of Common Stock as shall be determined by the Committee on the day on which such SAR is granted and set forth in the agreement evidencing the SAR; provided, however,
that no SAR shall be exercisable after the expiration of ten years from the date such SAR was granted; and, provided, further, that each SAR shall be subject to earlier termination, expiration or cancellation as provided in the Plan.

(2)           Each SAR shall be exercisable in whole or in part with respect to whole shares of Common Stock.  The partial exercise of an SAR shall not cause the expiration, termination or cancellation of the remaining portion thereof.  Upon the partial exercise
of an SAR, the agreement evidencing such SAR shall be returned to the Participant exercising such SAR.

  

  

  

 

(3)           An SAR shall be exercised by delivering notice to the Company’s principal office, to the attention of its Secretary, no fewer than five business days in advance of the effective date of the proposed exercise.  Such notice shall be accompanied by the agreement
evidencing the SAR, shall specify the number of shares of Common Stock with respect to which the SAR is being exercised and the effective date of the proposed exercise, and shall be signed by the Participant.  The Participant may withdraw such notice at any time prior to the close of business on the business day immediately preceding the effective date of the proposed exercise, in which case such agreement shall be returned to the Participant.

(4)           Upon the exercise of SARs, the Participant shall be entitled to receive an amount equal to the excess of the aggregate Fair Market Value of the shares of Common Stock with respect to which the SAR is exercised (determined as of the date of such exercise) over the aggregate
exercise price of such shares.  Such amount shall be payable to the Participant in cash, in shares of Common Stock or in a combination of cash and Common Stock, as provided in the agreement evidencing the SAR or as determined by the Committee on the date of exercise.  If an SAR is exercised for shares of Common Stock, shares of Common Stock purchased upon the exercise of the SAR shall be issued in the name of the Participant and delivered to the Participant as soon as practicable following
the effective date on which the SAR is exercised. Delivery shall be effected for all purposes when at the Company’s direction, the stock transfer agent of the Company shall have either (1) electronically deposited such shares in Participant’s company-sponsored brokerage account, or (2) deposited certificates representing the shares of Common Stock in the United States mail, addressed to the Participant.

(5)           During the lifetime of a Participant each SAR granted to him shall be exercisable only by him.  No SAR shall be assignable or transferable otherwise than by will or by the laws of descent and distribution.

	
  
	
(e)
	
Effect of Termination of Employment or Service.

(1)           If the employment or service of a Participant with the Company shall terminate for any reason other than Cause, “permanent and total disability” (within the meaning of Section 22(e)(3) of the Code), the voluntary retirement of an employee in accordance with
the Company’s retirement policy as then in effect, or the death of the Participant, then (i) SARs granted to such Participant, to the extent that they were exercisable at the time of such termination, shall remain exercisable until the expiration of one month after such termination, on which date they shall expire, and (ii) SARs granted to such Participant, to the extent that they were not exercisable at the time of such termination, shall expire at the close of business on the date of such termination;
provided, however, that no SAR shall be exercisable after the expiration of its term.

(2)           If the employment or service of a Participant with the Company shall terminate as a result of the “permanent and total disability” (within the meaning of Section 22(e)(3) of the Code) of the Participant, the voluntary retirement of an employee in accordance
with the Company’s retirement policy as then in effect, or the death of the Participant, then (i) SARs granted to such Participant, to the extent that they were exercisable at the time of such termination, shall remain exercisable until the expiration of one year after such termination, on which date they shall expire, and (ii) SARs granted to such Participant, to the extent that they were not exercisable at the time of such termination, shall expire at the close of business on the date of such termination;
provided, however, that no SAR shall be exercisable after the expiration of its term.

(3)           In the event of the termination of a Participant’s employment or service for Cause, all outstanding SARs granted to such Participant shall expire at the commencement of business on the date of such termination.

  

  

  

 

(f)           Acceleration of Exercise Date Upon Change in Control.  Upon the occurrence of a Change in Control and termination of employment of Participant within one year of such Change in Control, each SAR
granted under the Plan and outstanding at such time shall become fully and immediately exercisable and shall remain exercisable until its expiration, termination or cancellation pursuant to the terms of the Plan.

 

(g)           Additional Terms and Conditions.  At the time of grant of SARs, the Committee may, in its sole discretion, prescribe additional terms, conditions, restrictions and limitations applicable to the
SARs, as it determines are necessary or appropriate, provided they are not inconsistent with the Plan.

	
8.
	
RESTRICTED STOCK

The Committee may grant shares of Restricted Stock pursuant to the Plan.  Each grant of shares of Restricted Stock shall be evidenced by an agreement in such form as the Committee shall from time to time approve.  Each grant of shares of Restricted Stock shall comply with and be subject to the following terms and conditions:

(a)           Issue Date and Vesting Date.  At the time of the grant of shares of Restricted Stock, the Committee shall establish an Issue Date or Issue Dates and a Vesting Date or Vesting Dates with respect
to such shares.  The Committee may divide such shares into classes and assign a different Issue Date and/or Vesting Date for each class.  Except as provided in Sections 8(c) and 8(f) hereof, upon the occurrence of the Issue Date with respect to a share of Restricted Stock, a share of Restricted Stock shall be issued in accordance with the provisions of Section 8(d) hereof.  Provided that all conditions to the vesting of a share of Restricted Stock imposed pursuant to Section 8(b)
hereof are satisfied, and except as provided in Sections 8(c) and 8(f) hereof, upon the occurrence of the Vesting Date with respect to a share of Restricted Stock, such share shall vest and the restrictions of Section 8(c) hereof shall cease to apply to such share.

(b)           Conditions to Vesting. At the time of the grant of shares of Restricted Stock, the Committee may impose such restrictions or conditions, not inconsistent with the provisions hereof, to the vesting of such
shares as it in its absolute discretion deems appropriate.  By way of example and not by way of limitation, the Committee may require, as a condition to the vesting of any class or classes of shares of Restricted Stock, that the Participant or the Company achieve certain performance criteria, such criteria to be specified by the Committee at the time of the grant of such shares.

(c)           Restrictions on Transfer Prior to Vesting.  Prior to the vesting of a share of Restricted Stock, no transfer of a Participant’s rights with respect to such share, whether voluntary or involuntary,
by operation of law or otherwise, shall vest the transferee with any interest or right in or with respect to such share, but immediately upon any attempt to transfer such rights, such share, and all of the rights related thereto, shall be forfeited by the Participant and the transfer shall be of no force or effect.

	
  
	
(d)
	
Issuance of Shares of Restricted Stock.

(1)           Except as provided in Sections 8(c) or 8(f) hereof, reasonably promptly after the Issue Date with respect to shares of Restricted Stock, the Company shall cause to be issued and delivered shares of Restricted Stock.  Delivery shall be effected for all purposes
when at the Company’s direction, the stock transfer agent of the Company shall have either (1) electronically deposited such shares in Participant’s Company-sponsored brokerage account, or (2) issued a stock certificate registered in the name of the Participant to whom such shares were granted, evidencing such shares and shall have either deposited certificates representing the shares of Common Stock in the United States mail, addressed to the Participant, or deposited certificates representing the
shares of Common Stock in the United States mail, addressed to the Company (to be held pursuant to subparagraph (2) hereof; provided, however, that the Company shall not cause to be issued any shares of Restricted Stock unless it has received a stock power duly endorsed in blank with respect to such shares. Restricted Stock deposited into the Participant’s Company-sponsored brokerage account shall be held in such account until such time as such shares are forfeited by the Participant to the Company or the
restrictions thereon have terminated or lapsed as provided in the agreement relating to such grant.  Any stock certificates representing Restricted Stock shall bear the following legend:

  

  

  

 

“The transferability of this certificate and the shares of stock represented hereby are subject to the restrictions, terms and conditions (including forfeiture and restrictions against transfer) contained in the Boots & Coots International Well Control, Inc. 2004 Long Term Incentive Plan (Amended and Restated Effective May 21,
2009) and an Agreement entered into between the registered owner of such shares and Boots & Coots International Well Control, Inc.  A copy of the Plan and Agreement is on file in the office of the Secretary of Boots & Coots International Well Control, Inc., 7908 N. Sam Houston Parkway West, 5th Floor, Houston, Texas  77064.”

Such legend shall not be removed from the certificate evidencing such shares until such shares vest pursuant to the terms hereof.

(2)           Any certificate issued pursuant to Section 8(d)(1) hereof, together with the stock powers relating to the shares of Restricted Stock evidenced by such certificate, shall be held by the Company.  The Company shall issue to the Participant a receipt evidencing
the certificates held by it which are registered in the name of the Participant.

(e)           Consequences Upon Vesting.  Upon the vesting of a share of Restricted Stock pursuant to the terms hereof, the restrictions of Section 8(c) hereof shall cease to apply to such share.  Reasonably
promptly after a share of Restricted Stock vests pursuant to the terms hereof, the Company shall, to the extent applicable, (i) provide notice of the vesting and lapse or termination of restrictions thereon to the broker-dealer maintaining Participant’s Company-sponsored brokerage account, or (ii) cause to be issued and delivered to the Participant to whom such shares were granted, a certificate evidencing such share, free of the legend set forth in Section 8(d)(1) hereof, together with any other property
of the Participant held by Company pursuant to Section 8(d) hereof; provided, that delivery shall be effected for all purposes when at the Company’s direction, the stock transfer agent of the Company shall have either (1) electronically deposited such shares in Participant’s company-sponsored brokerage account, or (2) deposited certificates representing the shares of Common Stock and such other property in the United States mail, addressed to the Participant.

	
  
	
(f)
	
Effect of Termination of Employment or Service.

(1)           If the employment or service of a Participant with the Company shall terminate for any reason other than Cause, all shares of Restricted Stock granted to such Participant which have not vested as of the date of such termination shall immediately be forfeited; provided,
however, that the Committee may designate a portion of such shares, to the extent not forfeited or canceled prior to such termination pursuant to any provision hereof, which shall vest on the date of such termination.  The portion referred to in the preceding sentence shall be determined by the Committee at the time of the grant of such shares of Restricted Stock and may be based on the achievement of any conditions imposed by the Committee with respect to such shares pursuant to Section 8(b).

(2)           In the event of the termination of a Participant’s employment or service for Cause, all shares of Restricted Stock granted to such Participant which have not vested as of the date of such termination shall immediately be forfeited.

(g)           Effect of Change in Control.  Upon the occurrence of a Change in Control and termination of employment of Participant within one year of such Change in Control, all shares of Restricted Stock which
have not theretofore vested (including those with respect to which the Issue Date has not yet occurred) shall immediately vest.

  

  

  

 

	
9.
	
PHANTOM STOCK

The Committee may grant shares of Phantom Stock pursuant to the Plan.  Each grant of shares of Phantom Stock shall be evidenced by an agreement in such form as the Committee shall from time to time approve.  Each grant of shares of Phantom Stock shall comply with and be subject to the following terms and conditions:

(a)           Vesting Date.  At the time of the grant of shares of Phantom Stock, the Committee shall establish a Vesting Date or Vesting Dates with respect to such shares.  The Committee may divide
such shares into classes and assign a different Vesting Date for each class.  Provided that all conditions to the vesting of a share of Phantom Stock imposed pursuant to Section 9(c) hereof are satisfied, and except as provided in Section 9(d) hereof, upon the occurrence of the Vesting Date with respect to a share of Phantom Stock, such share shall vest.

(b)           Benefit Upon Vesting.  Upon the vesting of a share of Phantom Stock, a Participant shall be entitled to receive in cash, within 60 days of the date on which such share vests, an amount in cash
in a lump sum equal to the sum of (i) the Fair Market Value of a share of Common Stock of the Company on the date on which such share of Phantom Stock vests and (ii) the aggregate amount of cash dividends paid with respect to a share of Common Stock of the Company during the period commencing on the date on which the share of Phantom Stock was granted and terminating on the date on which such share vests.

(c)           Conditions to Vesting.  At the time of the grant of shares of Phantom Stock, the Committee may impose such restrictions or conditions, not inconsistent with the provisions hereof, to the vesting
of such shares as it, in its absolute discretion deems appropriate.  By way of example and not by way of imitation, the Committee may require, as a condition to the vesting of any class or classes of shares of Phantom Stock, that the Participant or the Company achieve certain performance criteria, such criteria to be specified by the Committee at the time of the grant of such shares.

(d)           Effect of Termination of Employment or Service.

(1)           If the employment or service of a Participant with the Company shall be terminated by the Company without Cause, all shares of Phantom Stock granted to such Participant which have not vested as of the date of such termination shall immediately be forfeited; provided,
however, that the Committee may designate a portion of such shares, to the extent not forfeited or canceled prior to such termination pursuant to any provision hereof, which shall vest on the date of such termination.  The portion referred to in the preceding sentence shall be determined by the Committee at the time of the grant of such shares of Phantom Stock and may be based on the achievement of any conditions imposed by the Committee with respect to such shares pursuant to Section 9(c).

(2)           In the event of the termination of a Participant’s employment or service for any other reason, all shares of Phantom Stock granted to such Participant which have not vested as of the date of such termination shall immediately be forfeited.

(e)           Effect of Change in Control.  Upon the occurrence of a Change in Control and termination of employment of Participant by the Company without Cause within one year of Change in Control, all shares
of Phantom Stock which have not theretofore vested shall immediately vest.

	
10.
	
STOCK BONUSES

The Committee may, in its absolute discretion, grant Stock Bonuses in such amounts as it shall determine from time to time.  A Stock Bonus shall be paid at such time and subject to such conditions as the Committee shall determine at the time of the grant of such Stock Bonus.  Shares of Common Stock granted as a Stock
Bonus shall be issued in the name of the Participant to whom such grant was made and delivered to such Participant as soon as practicable after the date on which such Stock Bonus is required to be paid. Delivery shall be effected for all purposes when at the Company’s direction, the stock transfer agent of the Company shall have either (1) electronically deposited such shares in Participant’s company-sponsored brokerage account, or (2) deposited certificates representing the shares of Common Stock
in the United States mail, addressed to the Participant.

  

  

  

 

	
11.
	
CASH BONUSES

The Committee may, in its absolute discretion, grant in connection with any grant of Restricted Stock or Stock Bonus or at any time thereafter, a cash bonus, payable promptly after the date on which the Participant is required to recognize income for federal income tax purposes in connection with such Restricted Stock or Stock Bonus, in
such amounts as the Committee shall determine from time to time; provided, however, that in no event shall the amount of a Cash Bonus exceed the Fair Market Value of the related shares of Restricted Stock or Stock Bonus on such date.  A Cash Bonus shall be subject to such conditions as the Committee shall determine at the time of the grant of such Cash Bonus.

	
12.
	
ADJUSTMENT UPON CHANGES IN COMMON STOCK

(a)           Outstanding Restricted Stock and Phantom Stock.  Unless the Committee in its absolute discretion otherwise determines, if a Participant receives any securities or other property (including dividends
paid in cash) with respect to a share of Restricted Stock, the Issue Date with respect to which occurs prior to such event, but which has not vested as of the date of such event, as a result of any dividend, stock split, recapitalization, merger, consolidation, combination, exchange of shares or otherwise, such securities or other property will not vest until such share of Restricted Stock vests, and shall be held by the Company pursuant to Section 8(d)(2) hereof.  The Committee may, in its absolute
discretion, adjust any grant of shares of Restricted Stock, the Issue Date with respect to which has not occurred as of the date of the occurrence of any of the following events, or any grant of shares of Phantom Stock, to reflect any dividend, stock split, recapitalization, merger, consolidation, combination, exchange of shares or similar corporate change as the Committee may deem appropriate to prevent the enlargement or dilution of rights of Participants under the grant.

(b)           Outstanding Options and SARs, Increase or Decrease in Issued Shares Without Consideration.  Subject to any required action by the shareholders of the Company, in the event of any increase or decrease
in the number of issued shares of Common Stock resulting from a subdivision or consolidation of shares of Common Stock or the payment of a stock dividend (but only on the shares of Common Stock), or any other increase or decrease in the number of such shares effected without receipt of consideration by the Company, the Committee shall proportionally adjust the number of shares and the exercise price per share of Common Stock subject to each outstanding Option and SAR.

(c)           Outstanding Options, Certain Mergers.  Subject to any required action by the shareholders of the Company, if the Company shall be the surviving corporation in any merger or consolidation (except
a merger of consolidation as a result of which the holders of shares of Common Stock receive securities of another corporation), each Option and SAR outstanding on the date of such merger or consolidation shall entitle the Participant to acquire upon exercise the securities which a holder of the number of shares of Common Stock subject to such Option or SAR would have received in such merger or consolidation.

(d)           Outstanding Options and SARs, Certain Other Transactions.  In the event of a dissolution or liquidation of the Company, a sale of all or substantially all of the Company’s assets, a merger
or consolidation involving the Company in which the Company is not the surviving corporation or a merger or consolidation involving the Company in which the Company is the surviving corporation but the holders of shares of Common Stock receive securities of another corporation and/or other property, including cash, the Committee shall, in its absolute discretion, have the power to:

(1)           cancel, effective immediately prior to the occurrence of such event, each Option and SAR outstanding immediately prior to such event (whether or not then exercisable), and, in full consideration of such cancellation, pay to the Participant to whom such Option or SAR
was granted an amount in cash, for each share of Common Stock subject to such Option or SAR, equal to the excess of (A) the value, as determined by the Committee in its absolute discretion, of the property (including cash) received by the holder of a share of Common Stock as a result of such event over (B) the exercise price of such Option or SAR; or

  

  

  

 

(2)           provide for the exchange of each Option and SAR outstanding immediately prior to such event (whether or not then exercisable) for an option or appreciation right on some or all of the property for which such Option or SAR is exchanged and, incident thereto, make an equitable
adjustment as determined by the Committee in its absolute discretion in the exercise price of the option or appreciation right, or the number of shares or amount of property subject to the option or appreciation right or, if appropriate, provide for a cash payment to the Participant to whom such Option or SAR was granted in partial consideration for the exchange of the Option or SAR.

(e)           Outstanding Options and SARs/Other Changes.  In the event of any change in the capitalization of the Company or corporate change other than those specifically referred to in Sections 12(b), (c)
or (d) hereof, the Committee may, in its absolute discretion, make such adjustments in the number and class of shares subject to Options and SARs outstanding on the date on which such change occurs and in the per share exercise price of each such Option and SAR as the Committee may consider appropriate to prevent dilution or enlargement of rights.

(f)            Limitations.  Notwithstanding the provisions of Sections 12(b), (c), (d) and (e), outstanding Incentive Awards shall be adjusted in accordance with (i) Sections 422 and 424 of the Code and the
regulations thereunder with respect to Incentive Stock Options and (ii) Section 409A of the Code and the regulations thereunder with respect to Non-Qualified Stock Options and SARs.

(g)           No Other Rights.  Except as expressly provided in the Plan, no Participant shall have any rights by reason of any subdivision or consolidation of shares of stock of any class, the payment of any
dividend, any increase or decrease in the number of shares of stock of any class or any dissolution, liquidation, merger or consolidation of the Company or any other corporation.  Except as expressly provided in the Plan, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number of shares of Common Stock subject to an Incentive Award or the exercise
price of any Option or SAR.

	
13.
	
RIGHTS AS A SHAREHOLDER

No person shall have any rights as a shareholder with respect to any shares of Common Stock covered by or relating to any Incentive Award granted pursuant to this Plan until the date of the issuance of shares of Common Stock.  Except as otherwise expressly provided in Section 12 hereof, no adjustment to any Incentive Award shall
be made for dividends or other rights for which the record date occurs prior to the date such shares of Common Stock are issued.

	
14.
	
NO SPECIAL EMPLOYMENT RIGHTS; NO RIGHT TO INCENTIVE AWARD

Nothing contained in the Plan or any Incentive Award shall confer upon any Participant any right with respect to the continuation of his employment or service by the Company or interfere in any way with the right of the Company, subject to the terms of any separate employment or consulting agreement to the contrary, at any time to terminate
such employment or service or to increase or decrease the compensation of the Participant from the rate in existence at the time of the grant of an Incentive Award.

No person shall have any claim or right to receive an Incentive Award hereunder.  The Committee’s granting of an Incentive Award to a Participant at any time shall neither require the Committee to grant an Incentive Award to such Participant or any other Participant or other person at any time nor preclude the Committee
from making subsequent grants to such Participant or any other Participant or other person.

  

  

  

 

	
15.
	
SECURITIES MATTERS

(a)           The Company shall be under no obligation to effect the registration pursuant to the Securities Act of any shares of Common Stock to be issued hereunder or to effect similar compliance under any state laws.  Notwithstanding anything herein to the contrary, the
Company shall not be obligated to cause to be issued or delivered any shares of Common Stock pursuant to the Plan unless and until the Company is advised by its counsel that the issuance and delivery of such shares is in compliance with all applicable laws, regulations of governmental authority and the requirements of any securities exchange on which shares of Common Stock are traded.  The Committee may require, as a condition of the issuance and delivery of shares of Common Stock pursuant to the terms
hereof, that the recipient of such shares make such covenants, agreements and representations, and that any certificates issued evidencing such shares bear such legends, as the Committee, in its sole discretion, deems necessary or desirable.

(b)           The exercise of any Option or SAR exercisable for Common Stock granted hereunder shall only be effective at such time as counsel to the Company shall have determined that the issuance and delivery of shares of Common Stock pursuant to such exercise is in compliance with
all applicable laws, regulations of governmental authorities and the requirements of any securities exchange on which shares of Common Stock are traded.  The Company may, in its sole discretion, defer the effectiveness of any exercise of an Option or such an SAR granted hereunder in order to allow the issuance of shares of Common Stock pursuant thereto to be made pursuant to registration or an exemption from registration or other methods for compliance available under federal or state securities laws.  The
Company shall inform the Participant in writing of its decision to defer the effectiveness of the exercise of an Option or SAR granted hereunder.  During the period that the effectiveness of the exercise of an Option or SAR has been deferred, the Participant may, by written notice, withdraw such exercise and obtain the refund of any amount paid with respect thereto.

	
16.
	
WITHHOLDING TAXES

The Company shall be entitled to deduct from any payment made under the Plan, regardless of the form of such payment, the amount of all applicable income and employment taxes required by law to be withheld with respect to such payment, may require the Participant to pay to the Company such withholding taxes prior to and as a condition of
the making of any payment or the issuance or delivery of any shares of Common Stock under the Plan, and shall be entitled to deduct from any other compensation payable to the Participant any withholding obligations with respect to Incentive Awards.  In accordance with any applicable administrative guidelines it establishes, the Committee may allow a Participant to pay the amount of taxes required by law to be withheld from or with respect to an Incentive Award by (a) withholding shares of Common
Stock from any payment of Common Stock due as a result of such Incentive Award, or (b) permitting the Participant to deliver to the Company previously acquired shares of Common Stock, in each case having an aggregate Fair Market Value equal to the amount of such required withholding taxes.  No payment shall be made and no shares of Common Stock shall be issued pursuant to any Incentive Award unless and until the applicable tax withholding obligations have been satisfied.

	
17.
	
AMENDMENT OF THE PLAN

The Board of Directors may at any time suspend or discontinue the Plan or revise or amend it in any respect whatsoever; provided, however, that without approval of the shareholders no revision or amendment shall (i) except as provided in Section 12 hereof, increase the number of shares of Common Stock that may be issued as Incentive Options
under the Plan, (ii) materially increase the benefits accruing to individuals holding Incentive Awards granted pursuant to the Plan or (iii) materially modify the requirements as to eligibility for participation in the Plan.

  

  

  

 

	
18.
	
NO OBLIGATION TO EXERCISE

The grant to a Participant of an Option or SAR shall impose no obligation upon such Participant to exercise such Option or SAR.

	
19.
	
TRANSFERS UPON DEATH

Upon the death of a Participant, outstanding Incentive Awards granted to such Participant may be exercised only by the executors or administrators of the Participant’s estate or by any person or persons who shall have acquired such right to exercise by will or by the laws of descent and distribution.  No transfer by will
or the laws of descent and distribution of any Incentive Award, or the right to exercise any Incentive Award, shall be effective to bind the Company unless the Committee shall have been furnished with (a) written notice thereof and with a copy of the will and/or such evidence as the Committee may deem necessary to establish the validity of the transfer and (b) an agreement by the transferee to comply with all the terms and conditions of the Incentive Award that are or would have been applicable to the Participant
and to be bound by the acknowledgments made by the Participant in connection with the grant of the Incentive Award.

	
20.
	
EXPENSES AND RECEIPTS

The expenses of the Plan shall be paid by the Company.  Any proceeds received by the Company in connection with any Incentive Award will be used for general corporate purposes.

	
21.
	
FAILURE TO COMPLY

In addition to the remedies of the Company elsewhere provided for herein, failure by a Participant to comply with any of the terms and conditions of the Plan or the agreement executed by such Participant evidencing an Incentive Award, unless such failure is remedied by such Participant within ten days after having been notified of such
failure by the Committee, shall be grounds for the cancellation and forfeiture of such Incentive Award, in whole or in part as the Committee, in its absolute discretion, may determine.

	
22.
	
EFFECTIVE DATE AND TERM OF PLAN

The Plan was adopted by the Board of Directors effective March 25, 2004, and was approved by the shareholders of the Company in accordance with applicable law, the requirements of Sections 162(m) and 422 of the Code, and the requirements of Rule 16b-3 under Section 16(b) of the Exchange Act on May 19, 2004.  No Incentive Award
may be granted under the Plan after March 24, 2014.

IN WITNESS WHEREOF, this Plan, as amended and restated, has been executed in Houston, Texas this 21th day of May, 2009.

	  	
BOOTS & COOTS INTERNATIONAL WELL CONTROL, INC.

	  	  	  
	  	  	  
	  	  	  
	  	
By:
	
/s/ JERRY WINCHESTER

	  	
Name:
	
Jerry Winchester

	  	
Title:
	
President and Chief Executive OfficerExhibit
10.43

     

    CKEAR
SKIES SOLAR, INC.

     

    2009
EQUITY INCENTIVE PLAN

     

    1.           Purpose of the
Plan.

     

    This 2009
Equity Incentive Plan (the "Plan") is intended as an incentive, to retain in the
employ of and as directors, officers and employees of and consultants and
advisors to Clear Skies Solar, Inc., a Delaware corporation (the "Company"), and
any Subsidiary of the Company, within the meaning of Section 424(f) of the
United States Internal Revenue Code of 1986, as amended (the "Code"), persons of
training, experience and ability, to attract new directors, officers,
consultants, advisors and employees whose services are considered valuable, to
encourage the sense of proprietorship and to stimulate the active interest of
such persons in the development and financial success of the Company and its
Subsidiaries.

     

    It is
further intended that certain options granted pursuant to the Plan shall
constitute incentive stock options within the meaning of Section 422 of the Code
(the "Incentive Options") while certain other options granted pursuant to the
Plan shall be nonqualified stock options (the "Nonqualified Options"). Incentive
Options and Nonqualified Options are hereinafter referred to collectively as
"Options."

     

    The
Company intends that the Plan meet the requirements of Rule 16b-3 ("Rule 16b-3")
promulgated under the Securities Exchange Act of 1934, as amended (the "Exchange
Act"), and that transactions of the type specified in subparagraphs (c) to (f)
inclusive of Rule 16b-3 by officers and directors of the Company pursuant to the
Plan will be exempt from the operation of Section 16(b) of the Exchange Act.
Further, the Plan is intended to satisfy the performance-based compensation
exception to the limitation on the Company's tax deductions imposed by Section
162(m) of the Code with respect to those Options for which qualification for
such exception is intended. In all cases, the terms, provisions, conditions and
limitations of the Plan shall be construed and interpreted consistent with the
Company's intent as stated in this Section I.

     

    2.           Administration of the
Plan.

     

    The Board
of Directors of the Company (the "Board") shall appoint and maintain as
administrator of the Plan a Committee (the "Committee") consisting of two or
more directors who are (i) "Independent Directors" (as such term is defined
under the rules of the NASDAQ Stock Market), (ii) "Non-Employee Directors" (as
such term is defined in Rule 16b-3) and (iii) "Outside Directors" (as such term
is defined in Section 162(m) of the Code), which shall serve at the pleasure of
the Board. The Committee, subject to Sections 3, 5 and 6 hereof, shall have full
power and authority to designate recipients of Options and restricted stock
("Restricted Stock") and to determine the terms and conditions of the respective
Option and Restricted Stock agreements (which need not be identical) and to
interpret the provisions and supervise the administration of the Plan. The
Committee shall have the authority, without limitation, to designate which
Options granted under the Plan shall be Incentive Options and which shall be
Nonqualified Options. To the extent any Option does not qualify as an Incentive
Option, it shall constitute a separate Nonqualified Option.

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    Subject
to the provisions of the Plan, the Committee shall interpret the Plan and all
Options and Restricted Stock granted under the Plan, shall make such rules as it
deems necessary for the proper administration of the Plan, shall make all other
determinations necessary or advisable for the administration of the Plan and
shall correct any defects or supply any omission or reconcile any inconsistency
in the Plan or in any Options or Restricted Stock granted under the Plan in the
manner and to the extent that the Committee deems desirable to carry into effect
the Plan or any Options or Restricted Stock. The act or determination of a
majority of the Committee shall be the act or determination of the Committee and
any decision reduced to writing and signed by all of the members of the
Committee shall be fully effective as if it had been made by a majority of the
Committee at a meeting duly held for such purpose. Subject to the provisions of
the Plan, any action taken or determination made by the Committee pursuant to
this and the other Sections of the Plan shall be conclusive on all
parties.

     

    In the
event that for any reason the Committee is unable to act or if the Committee at
the time of any grant, award or other acquisition under the Plan does not
consist of two or more Non-Employee Directors, or if there shall be no such
Committee, or if the Board otherwise determines to administer the Plan, then the
Plan shall be administered by the Board, and references herein to the Committee
(except in the proviso to this sentence) shall be deemed to be references to the
Board, and any such grant, award or other acquisition may be approved or
ratified in any other manner contemplated by subparagraph (d) of Rule 16b-3;
provided, however, that grants to the Company’s Chief Executive Officer or to
any of the Company’s other four most highly compensation officers that are
intended to qualify as performance-based compensation under Section 162 (m) of
the Code may only be granted by the Committee.

     

    3.           Designation of Optionees and
Grantees.

     

    The
persons eligible for participation in the Plan as recipients of Options (the
"Optionees") or Restricted Stock (the "Grantees" and together with Optionees,
the "Participants") shall include directors, officers and employees of and
consultants and advisors to, the Company or any Subsidiary; provided that
Incentive Options may only be granted to employees of the Company and any
Subsidiary. In selecting Participants, and in determining the number of shares
to be covered by each Option or award of Restricted Stock granted to
Participants, the Committee may consider any factors it deems relevant,
including, without limitation, the office or position held by the Participant or
the Participant's relationship to the Company, the Participant's degree of
responsibility for and contribution to the growth and success of the Company or
any Subsidiary, the Participant's length of service, promotions and potential. A
Participant who has been granted an Option or Restricted Stock hereunder may be
granted an additional Option or Options, or Restricted Stock if the Committee
shall so determine.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    4.           Stock Reserved for the
Plan.

     

    Subject
to adjustment as provided in Section 8 hereof, a total of 2,500,000 shares of
the Company's common stock, par value $0.001 per share (the "Stock"), shall be
subject to the Plan. The maximum number of shares of Stock that may be subject
to Options granted under the Plan to any individual in any calendar year shall
not exceed 2,400,000 shares, and the method of counting such shares shall
conform to any requirements applicable to performance-based compensation under
Section 162(m) of the Code, if qualification as performance-based compensation
under Section 162(m) of the Code is intended. The shares of Stock subject to the
Plan shall consist of unissued shares, treasury shares or previously issued
shares held by any Subsidiary of the Company, and such number of shares of Stock
shall be and is hereby reserved for such purpose. Any of such shares of Stock
that may remain unissued and that are not subject to outstanding Options at the
termination of the Plan shall cease to be reserved for the purposes of the Plan,
but until termination of the Plan the Company shall at all times reserve a
sufficient number of shares of Stock to meet the requirements of the Plan.
Should any Option or award of Restricted Stock expire or be canceled prior to
its exercise or vesting in full or should the number of shares of Stock to be
delivered upon the exercise or vesting in full of an Option or award of
Restricted Stock be reduced for any reason, the shares of Stock theretofore
subject to such Option or Restricted Stock may be subject to future Options or
Restricted Stock under the Plan, except where such reissuance is inconsistent
with the provisions of Section 162(m) of the Code where qualification as
performance-based compensation under Section 162(m) of the Code is
intended.

     

    5.           Terms and Conditions of
Options.

     

    Options
granted under the Plan shall he subject to the following conditions and shall
contain such additional terms and conditions, not inconsistent with the terms of
the Plan, as the Committee shall deem desirable:

     

    (a)
Option Price. The purchase price of each share of Stock purchasable under an
Incentive Option shall be determined by the Committee at the time of grant, but
shall not be less than 100% of the Fair Market Value (as defined below) of such
share of Stock on the date the Option is granted; provided, however, that with
respect to an Optionee who, at the time such Incentive Option is granted, owns
(within the meaning of Section 424(d) of the Code) more than 10% of the total
combined voting power of all classes of stock of the Company or of any
Subsidiary, the purchase price per share of Stock shall be at least 110% of the
Fair Market Value per share of Stock on the date of grant. The purchase price of
each share of Stock purchasable under a Nonqualified Option shall not be less
than 100% of the Fair Market Value of such share of Stock on the date the Option
is granted. The exercise price for each Option shall be subject to adjustment as
provided in Section 8 below.

     

    "Fair
Market Value" means the closing price on the final trading day immediately prior
to the grant date of the Stock on the principal securities exchange on which
shares of Stock are listed (if the shares of Stock are so listed), or on the
NASDAQ Stock Market or OTC Bulletin Board (if the shares of Stock are regularly
quoted on the NASDAQ Stock Market or OTC Bulletin Board, as the case may be),
or, if not so listed, the mean between the closing bid and asked prices of
publicly traded shares of Stock in the over the counter market, or, if such bid
and asked prices shall not be available, as reported by any nationally
recognized quotation service selected by the Company, or as determined by the
Committee in a manner consistent with the provisions of the Code. Anything in
this Section 5(a) to the contrary notwithstanding, in no event shall the
purchase price of a share of Stock be less than the minimum price permitted
under the rules and policies of any national securities exchange on which the
shares of Stock are listed.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    (b)           Option
Term. The term of each Option shall be fixed by the Committee, but no Option
shall be exercisable more than ten years after the date such Option is granted
and in the case of an Incentive Option granted to an Optionee who, at the time
such Incentive Option is granted, owns (within the meaning of Section 424(d) of
the Code) more than 10% of the total combined voting power of all classes of
stock of the Company or of any Subsidiary, no such Incentive Option shall be
exercisable more than five years after the date such Incentive Option is
granted.

     

    (c)           Exercisability.
Subject to Section 5(j) hereof, Options shall be exercisable at such time or
times and subject to such terms and conditions as shall be determined by the
Committee at the time of grant; provided, however, that in the absence of any
Option vesting periods designated by the Committee at the time of grant, Options
shall vest and become exercisable as to one- third of the total number of shares
subject to the Option on each of the first, second and third anniversaries of
the date of grant; and provided further that no Options shall he exercisable
until such time as any vesting limitation required by Section 16 of the Exchange
Act, and related rules, shall be satisfied if such limitation shall be required
for continued validity of the exemption provided under Rule
16b-3(d)(3).

     

    Upon the
occurrence of a "Change in Control" (as hereinafter defined), the Committee may
accelerate the vesting and exercisability of outstanding Options, in whole or in
part, as determined by the Committee in its sole discretion. In its sole
discretion, the Committee may also determine that, upon the occurrence of a
Change in Control, each outstanding Option shall terminate within a specified
number of days after notice to the Optionee thereunder, and each such Optionee
shall receive, with respect to each share of Company Stock subject to such
Option, an amount equal to the excess of the Fair Market Value of such shares
immediately prior to such Change in Control over the exercise price per share of
such Option; such amount shall he payable in cash, in one or more kinds of
property (including the property, if any, payable in the transaction) or a
combination thereof, as the Committee shall determine in its sole
discretion.

     

    For
purposes of the Plan, unless otherwise defined in an employment agreement
between the Company and the relevant Optionee. a Change in Control shall be
deemed to have occurred if:

     

    a tender
offer (or series of related offers) shall be made and consummated for the
ownership of 50% or more of the outstanding voting securities of the Company,
unless as a result of such tender offer more than 50% of the outstanding voting
securities of the surviving or resulting corporation shall be owned in the
aggregate by the stockholders of the Company (as of the time immediately prior
to the commencement of such offer), any employee benefit plan of the Company or
its Subsidiaries, and their affiliates;

    
      
         

      

      
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    the
Company shall be merged or consolidated with another corporation, unless as a
result of such merger or consolidation more than 50% of the outstanding voting
securities of the surviving or resulting corporation shall be owned in the
aggregate by the stockholders of the Company (as of the time immediately prior
to such transaction), any employee benefit plan of the Company or its
Subsidiaries, and their affiliates;

     

    the Company shall sell substantially
all of its assets to another corporation that is not wholly owned by the
Company, unless as a result of such sale more than 50% of such assets shall be
owned in the aggregate by the stockholders of the Company (as of the time
immediately prior to such transaction), any employee benefit plan of the Company
or its Subsidiaries and their affiliates; or

     

    a Person (as defined below) shall
acquire 50% or more of the outstanding voting securities of the Company (whether
directly, indirectly, beneficially or of record), unless as a result of such
acquisition more than 50% of the outstanding voting securities of the surviving
or resulting corporation shall be owned in the aggregate by the stockholders of
the Company (as of the time immediately prior to the first acquisition of such
securities by such Person), any employee benefit plan of the Company or its
Subsidiaries, and their affiliates,

     

    Notwithstanding
the foregoing, if Change of Control is defined in an employment agreement
between the Company and the relevant Optionee, then, with respect to such
Optionee, Change of Control shall have the meaning ascribed to it in such
employment agreement.

     

    For
purposes of this Section 5(c), ownership of voting securities shall take into
account and shall include ownership as determined by applying the provisions of
Rule 13d-3(d)(I)(i) (as in effect on the date hereof) under the Exchange Act. In
addition, for such purposes, "Person" shall have the meaning given in Section
3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d)
thereof; provided, however, that a Person shall not include (A) the Company or
any of its Subsidiaries; (B) a trustee or other fiduciary holding securities
under an employee benefit plan of the Company or any of its Subsidiaries; (C) an
underwriter temporarily holding securities pursuant to an offering of such
securities; or (D) a corporation owned, directly or indirectly, by the
stockholders of the Company in substantially the same proportion as their
ownership of stock of the Company.

     

    (d)           Method
of Exercise. Options to the extent then exercisable may be exercised in whole or
in part at any time during the option period, by giving written notice to the
Company specifying the number of shares of Stock to be purchased, accompanied by
payment in full of the purchase price in cash, or by check or such other
instrument as may be acceptable to the Committee. As determined by the
Committee, in its sole discretion, at or after grant, payment in full or in part
may be made at the election of the Optionee (i) in the form of Stock owned by
the Optionee (based on the Fair Market Value of the Stock which is not the
subject of any pledge or security interest, (ii) in the form of shares of Stock
withheld by the Company from the shares of Stock otherwise to be received with
such withheld shares of Stock having a Fair Market Value equal to the exercise
price of the Option, or (iii) by a combination of the foregoing, such Fair
Market Value determined by applying the principles set forth in Section 5(a),
provided that the combined value of all cash and cash equivalents and the Fair
Market Value of any shares surrendered to the Company is at least equal to such
exercise price and except with respect to (ii) above, such method of payment
will not cause a disqualifying disposition of all or a portion of the Stock
received upon exercise of an Incentive Option. An Optionee shall have the right
to dividends and other rights of a stockholder with respect to shares of Stock
purchased upon exercise of an Option at such time as the Optionee (i) has given
written notice of exercise and has paid in full for such shares, and (ii) has
satisfied such conditions that may be imposed by the Company with respect to the
withholding of taxes.

    
      
         

      

      
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    (e)           Non-transferability
of Options. Options are not transferable and may be exercised solely by the
Optionee during his lifetime or after his death by the person or persons
entitled thereto under his will or the laws of descent and distribution. The
Committee, in its sole discretion, may permit a transfer of a Nonqualified
Option to (i) a trust for the benefit of the Optionee, (ii) a member of the
Optionee's immediate family (or a trust for his or her benefit) or (iii)
pursuant to a domestic relations order. Any attempt to transfer, assign, pledge
or otherwise dispose of or to subject to execution, attachment or similar
process, any Option contrary to the provisions hereof shall be void and
ineffective and shall give no right to the purported transferee.

     

    (f)           Termination
by Death. Unless otherwise determined by the Committee, if any Optionee's
employment with or service to the Company or any Subsidiary terminates by reason
of death, the Option may thereafter be exercised, to the extent then exercisable
(or on such accelerated basis as the Committee shall determine at or after
grant), by the legal representative of the estate or by the legatee of the
Optionee under the will of the Optionee, for a period of one (1) year after the
date of such death (or, if later, such time as the Option may be exercised
pursuant to Section 14(d) hereof) or until the expiration of the stated term of
such Option as provided under the Plan, whichever period is
shorter.

     

    (g)           Termination
by Reason of Disability. Unless otherwise determined by the Committee, if any
Optionee's employment with or service to the Company or any Subsidiary
terminates by reason of Disability (as defined below), then any Option held by
such Optionee may thereafter be exercised, to the extent it was exercisable at
the time of termination due to Disability (or on such accelerated basis as the
Committee shall determine at or after grant), but may not be exercised after
ninety (90) days after the date of such termination of employment or service
(or, if later, such time as the Option may be exercised pursuant to Section
14(d) hereof) or the expiration of the stated term of such Option, whichever
period is shorter; provided, however, that, if the Optionee dies within such
ninety (90) day period, any unexercised Option held by such Optionee shall
thereafter he exercisable to the extent to which it was exercisable at the time
of death for a period of one (1) year after the date of such death (or, if
later, such time as the Option may be exercised pursuant to Section 14(d)
hereof) or for the stated term of such Option, whichever period is
shorter.  "Disability” shall mean an Optionee's total and permanent
disability; provided, that if Disability is defined in an employment agreement
between the Company and the relevant Optionee, then, with respect to such
Optionee, Disability shall have the meaning ascribed to it in such employment
agreement.

    
      
         

      

      
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    (h)           Termination
by Reason of Retirement. Unless otherwise determined by the Committee, if any
Optionee's employment with or service to the Company or any Subsidiary
terminates by reason of Normal or Early Retirement (as such terms are defined
below), any Option held by such Optionee may thereafter be exercised to the
extent it was exercisable at the time of such Retirement (or on such accelerated
basis as the Committee shall determine at or after grant), but may not be
exercised after ninety (90) days after the date of such termination of
employment or service (or, if later, such time as the Option may be exercised
pursuant to Section 14(d) hereof) or the expiration of the stated term of such
Option, whichever date is earlier; provided, however, that, if the Optionee dies
within such ninety (90) day period, any unexercised Option held by such Optionee
shall thereafter be exercisable, to the extent to which it was exercisable at
the time of death, for a period of one (1) year after the date of such death
(or, if later, such time as the Option may be exercised pursuant to Section
14(d) hereof) or for the stated term of such Option, whichever period is
shorter.

     

       
For purposes of this paragraph (h), "Normal Retirement" shall mean retirement
from active employment with the Company or any Subsidiary on or after the normal
retirement date specified in the applicable Company or Subsidiary pension plan
or if no such pension plan, age 65, and "Early Retirement" shall mean retirement
from active employment with the Company or any Subsidiary pursuant to the early
retirement provisions of the applicable Company or Subsidiary pension plan or if
no such pension plan, age 55.

     

    (i)            Other
Terminations. Unless otherwise determined by the Committee upon grant, if any
Optionee's employment with or service to the Company or any Subsidiary is
terminated by such Optionee for any reason other than death, Disability, Normal
or Early Retirement or Good Reason (as defined below), the Option shall
thereupon terminate, except that the portion of any Option that was exercisable
on the date of such termination of employment or service may be exercised for
the lesser of ninety (90) days after the date of termination (or, if later, such
time as the Option may be exercised pursuant to Section 14(d) hereof) or the
balance of such Option's term, which ever period is shorter. The transfer of an
Optionee from the employ of or service to the Company to the employ of or
service to a Subsidiary, or vice versa, or from one Subsidiary to another, shall
not be deemed to constitute a termination of employment or service for purposes
of the Plan.

     

    (j)           
(i) In the event that the Optionee's employment or service with the Company or
any Subsidiary is terminated by the Company or such Subsidiary for "cause" any
unexercised portion of any Option shall immediately terminate in its entirety.
For purposes hereof, unless otherwise defined in an employment agreement between
the Company and the relevant Optionee, "Cause" shall exist upon a good-faith
determination by the Board, following a hearing before the Board at which an
Optionee was represented by counsel and given an opportunity to be heard, that
such Optionee has been accused of fraud, dishonesty or act detrimental to the
interests of the Company or any Subsidiary of the Company or that such Optionee
has been accused of or convicted of an act of willful and material embezzlement
or fraud against the Company or of a felony under any state or federal statute;
provided, however, that it is specifically understood that "Cause" shall not
include any act of commission or omission in the good-faith exercise of such
Optionee's business judgment as a director, officer or employee of the Company,
as the case may be, or upon the advice of counsel to the Company.
Notwithstanding the foregoing, if Cause is defined in an employment agreement
between the Company and the relevant Optionee, then, with respect to such
Optionee, Cause shall have the meaning ascribed to it in such employment
agreement.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    (ii) In
the event that an Optionee is removed as a director, officer or employee by the
Company at any time other than for "Cause" or resigns as a director, officer or
employee for "Good Reason" the Option granted to such Optionee may be exercised
by the Optionee, to the extent the Option was exercisable on the date such
Optionee ceases to be a director, officer or employee. Such Option may be
exercised at any time within one (1) year after the date the Optionee ceases to
be a director, officer or employee (or, if later, such time as the Option may be
exercised pursuant to Section 14(d) hereof), or the date on which the Option
otherwise expires by its terms; which ever period is shorter, at which time the
Option shall terminate; provided, however, if the Optionee dies before the
Options terminate and are no longer exercisable, the terms and provisions of
Section 5(f) shall control. For purposes of this Section 5(j), and unless
otherwise defined in an employment agreement between the Company and the
relevant Optionee. Good Reason shall exist upon the occurrence of the
following:

     

    (A)           the
assignment to Optionee of any duties inconsistent with the position in the
Company that Optionee held immediately prior to the assignment;

     

    (B)           a
Change of Control resulting in a significant adverse alteration in the status or
conditions of Optionee's participation with the Company or other nature of
Optionee's responsibilities from those in effect prior to such Change of
Control, including any significant alteration in Optionee's responsibilities
immediately prior to such Change in Control; and

     

    (C)           the
failure by the Company to continue to provide Optionee with benefits
substantially similar to those enjoyed by Optionee prior to such
failure.

     

    Notwithstanding
the foregoing, if Good Reason is defined in an employment agreement between the
Company and the relevant Optionee, then, with respect to such Optionee, Good
Reason shall have the meaning ascribed to it in such employment
agreement.

     

    (k) Limit
on Value of Incentive Option. The aggregate Fair Market Value determined as of
the date the Incentive Option is granted, of Stock for which Incentive Options
are exercisable for the first time by any Optionee during any calendar year
under the Plan (and/or any other stock option plans of the Company or any
Subsidiary) shall not exceed $100,000.

     

    6.   Terms and Conditions of Restricted
Stock.

     

    Restricted
Stock may be granted under this Plan aside from, or in association with, any
other award and shall be subject to the following conditions and shall contain
such additional terms and conditions (including provisions relating to the
acceleration of vesting of Restricted Stock upon a Change of Control), not
inconsistent with the terms of the Plan, as the Committee shall deem
desirable:

     

    (a)           Grantee
Rights. A Grantee shall have no rights to an award of Restricted Stock unless
and until Grantee accepts the award within the period prescribed by the
Committee and, if the Committee shall deem desirable, makes payment to the
Company in cash, or by check or such other instrument as may be acceptable to
the Committee. After acceptance and issuance of a certificate or certificates,
as provided for below, the Grantee shall have the rights of a stockholder with
respect to Restricted Stock subject to the non-transferability and forfeiture
restrictions described in Section 6(d) below.

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    (b)           Issuance
of Certificates. The Company shall issue in the Grantee's name a certificate or
certificates for the shares of Common Stock associated with the award promptly
after the Grantee accepts such award.

     

    (c)           Delivery
of Certificates. Unless otherwise provided, any certificate or certificates
issued evidencing shares of Restricted Stock shall not be delivered to the
Grantee until such shares are free of any restrictions specified by the
Committee at the time of grant.

     

    (d)           Forfeitabilitv,
Non-transferability of Restricted Stock. Shares of Restricted Stock are
forfeitable until the terms of the Restricted Stock grant have been satisfied.
Shares of Restricted Stock are not transferable until the date on which the
Committee has specified such restrictions have lapsed. Unless otherwise provided
by the Committee at or after grant, distributions in the form of dividends or
otherwise of additional shares or property in respect of shares of Restricted
Stock shall be subject to the same restrictions as such shares of Restricted
Stock.

     

    (e)           Change
of Control. Upon the occurrence of a Change in Control as defined in Section
5(c), the Committee may accelerate the vesting of outstanding Restricted Stock,
in whole or in part, as determined by the Committee, in its sole
discretion.

     

    (f)           Termination
of Employment. Unless otherwise determined by the Committee at or after grant,
in the event the Grantee ceases to be an employee or otherwise associated with
the Company for any other reason, all shares of Restricted Stock theretofore
awarded to him which are still subject to restrictions shall be forfeited and
the Company shall have the right to complete the blank stock power. The
Committee may provide (on or after grant) that restrictions or forfeiture
conditions relating to shares of Restricted Stock will be waived in whole or in
part in the event of termination resulting from specified causes, and the
Committee may in other cases waive in whole or in part restrictions or
forfeiture conditions relating to Restricted Stock.

     

    7.           Term of Plan.

     

    No Option
or award of Restricted Stock shall be granted pursuant to the Plan on or after
the date which is ten years from the effective date of the Plan, but Options and
awards of Restricted Stock theretofore granted may extend beyond that
date.

     

    8.           Capital Change of the
Company.

     

    In the
event of any merger, reorganization, consolidation, recapitalization, stock
dividend, or other change in corporate structure affecting the Stock, the
Committee shall make an appropriate and equitable adjustment in the number and
kind of shares reserved for issuance under the Plan and in the number and option
price of shares subject to outstanding Options granted under the Plan, to the
end that after such event each Optionee's proportionate interest shall be
maintained (to the extent possible) as immediately before the occurrence of such
event. The Committee shall, to the extent feasible, make such other adjustments
as may be required under the tax laws so that any Incentive Options previously
granted shall not be deemed modified within the meaning of Section 424(h) of the
Code. Appropriate adjustments shall also be made in the case of outstanding
Restricted Stock granted under the Plan.

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    The
adjustments described above will be made only to the extent consistent with
continued qualification of the Option under Section 422 of the Code (in the case
of an Incentive Option) and Section 409A of the Code.

     

    9.     Purchase for
Investment/Conditions.

     

    Unless
the Options and shares covered by the Plan have been registered under the
Securities Act of 1933, as amended (the "Securities Act"), or the Company has
determined that such registration is unnecessary, each person exercising or
receiving Options or Restricted Stock under the Plan may he required by the
Company to give a representation in writing that he is acquiring the securities
for his own account for investment and not with a view to, or for sale in
connection with, the distribution of any part thereof. The Committee may impose
any additional or further restrictions on awards of Options or Restricted Stock
as shall be determined by the Committee at the time of award.

     

    10. Taxes.

     

    (a)           The
Company may make such provisions as it may deem appropriate, consistent with
applicable law, in connection with any Options or Restricted Stock granted under
the Plan with respect to the withholding of any taxes (including income or
employment taxes) or any other tax matters.

     

    (b)           If
any Grantee, in connection with the acquisition of Restricted Stock, makes the
election permitted under Section 83(b) of the Code (that is, an election to
include in gross income in the year of transfer the amounts specified in Section
83(b)), such Grantee shall notify the Company of the election with the Internal
Revenue Service pursuant to regulations issued under the authority of Code
Section 83(b).

     

    (c)           If
any Grantee shall make any disposition of shares of Stock issued pursuant to the
exercise of an Incentive Option under the circumstances described in Section
421(b) of the Code (relating to certain disqualifying dispositions), such
Grantee shall notify the Company of such disposition within ten (10) days
hereof.

     

    11.    Effective Date of
Plan.

     

    The Plan
shall be effective on March 16, 2009; provided, however, that if, and only if,
certain options are intended to qualify as Incentive Stock Options, the Plan
must subsequently be approved by majority vote of the Company's stockholders no
later than March 15, 2010, and further, that in the event certain Option grants
hereunder are intended to qualify as performance- based compensation within the
meaning of Section I 62(m) of the Code, the requirements as to stockholder
approval set forth in Section 162(m) of the Code are satisfied.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    12,   Amendment and
Termination.

     

    The Board
may amend, suspend, or terminate the Plan, except that no amendment shall be
made that would impair the rights of any Participant under any Option or
Restricted Stock theretofore granted without the Participant's consent, and
except that no amendment shall be made which, without the approval of the
stockholders of the Company would:

     

    (a)
materially increase the number of shares that may be issued under the Plan,
except as is provided in Section 8;

     

    (b)
materially increase the benefits accruing to the Participants under the
Plan;

     

    (c)
materially modify the requirements as to eligibility for participation in the
Plan;

     

    (d)
decrease the exercise price of an Incentive Option to less than 100% of the Fair
Market Value per share of Stock on the date of grant thereof or the exercise
price of a Nonqualified Option to less than 100% of the Fair Market Value per
share of Stock on the date of grant thereof;

     

    (e)
extend the term of any Option beyond that provided for in Section 5(b);
or

     

    (f)
except as otherwise provided in Sections 5(d) and 8 hereof, reduce the exercise
price of outstanding Options or effect repricing through cancellations and
re-grants of new Options.

     

    Subject
to the forgoing, the Committee may amend the terms of any Option theretofore
granted, prospectively or retrospectively, but no such amendment shall impair
the rights of any Optionee without the Optionee's consent.

     

    It is the
intention of the Board that the Plan comply strictly with the provisions of
Section 409A of the Code and Treasury Regulations and other Internal Revenue
Service guidance promulgated thereunder (the "Section 409A Rules") and the
Committee shall exercise its discretion in granting awards hereunder (and the
terms of such awards), accordingly. The Plan and any grant of an award hereunder
may be amended from time to time (without, in the case of an award, the consent
of the Participant) as may be necessary or appropriate to comply with the
Section 409A Rules.

     

    13.           Government
Regulations.

     

    The Plan,
and the grant and exercise of Options or Restricted Stock hereunder, and the
obligation of the Company to sell and deliver shares under such Options and
Restricted Stock shall be subject to all applicable laws, rules and regulations,
and to such approvals by any governmental agencies, national securities
exchanges and interdealer quotation systems as may be required.

     

    14.           General
Provisions.

     

    (a)           Certificates.
All certificates for shares of Stock delivered under the Plan shall be subject
to such stop transfer orders and other restrictions as the Committee may deem
advisable under the rules, regulations and other requirements of the Securities
and Exchange Commission, or other securities commissions having jurisdiction,
any applicable Federal or state securities law, any stock exchange or
interdealer quotation system upon which the Stock is then listed or traded and
the Committee may cause a legend or legends to be placed on any such
certificates to make appropriate reference to such
restrictions.

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    (b)           Employment
Matters. Neither the adoption of the Plan nor any grant or award under the Plan
shall confer upon any Participant who is an employee of the Company or any
Subsidiary any right to continued employment or, in the case of a Participant
who is a director, continued service as a director, with the Company or a
Subsidiary, as the case may be, nor shall it interfere in any way with the right
of the Company or any Subsidiary to terminate the employment of any of its
employees, the service of any of its directors or the retention of any of its
consultants or advisors at any time.

     

    (c)           Limitation
of Liability. No member of the Committee, or any officer or employee of the
Company acting on behalf of the Committee, shall be personally liable for any
action, determination or interpretation taken or made in good faith with respect
to the Plan, and all members of the Committee and each and any officer or
employee of the Company acting on their behalf shall, to the extent permitted by
law, be fully indemnified and protected by the Company in respect of any such
action, determination or interpretation.

     

    (d)           
Registration of Stock. Notwithstanding any other provision in the Plan, no
Option may be exercised unless and until the Stock to be issued upon the
exercise thereof has been registered under the Securities Act and applicable
state securities laws, or are, in the opinion of counsel to the Company, exempt
from such registration in the United States. The Company shall not be under any
obligation to register under applicable federal or state securities laws any
Stock to be issued upon the exercise of an Option granted hereunder in order to
permit the exercise of an Option and the issuance and sale of the Stock subject
to such Option, although the Company may in its sole discretion register such
Stock at such time as the Company shall determine. If the Company chooses to
comply with such an exemption from registration, the Stock issued under the Plan
may, at the direction of the Committee, bear an appropriate restrictive legend
restricting the transfer or pledge of the Stock represented thereby, and the
Committee may also give appropriate stop transfer instructions with respect to
such Stock to the Company's transfer agent.

     

    15.           Non-Uniform
Determinations.

     

    The
Committee's determinations under the Plan, including, without limitation, (i)
the determination of the Participants to receive awards, (ii) the form, amount
and timing of such awards, (iii) the terms and provisions of such awards and
(iv) the agreements evidencing the same, need not be uniform and may be made by
it selectively among Participants who receive, or who are eligible to receive,
awards under the Plan, whether or not such Participants are similarly
situated.

    
      
         

      

      
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    16.           Governing Law.

     

    The
validity, construction, and effect of the Plan and any rules and regulations
relating to the Plan shall be determined in accordance with the internal laws of
the State of Delaware, without giving effect to principles of conflicts of laws,
and applicable federal law.

     

    
      
         

      

      
        13

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