Document:

Unassociated Document

    EXHIBIT
      10.1

    
 

    MATRITECH,
      INC.

    2006
      EQUITY AND INCENTIVE PLAN

    as
      amended September 15, 2006

     

    1. 
      Purposes
      of the Plan

     

    The
      purposes of the Matritech, Inc. 2006 Equity and Incentive Plan (the “Plan”) are
      (i) to provide long-term incentives and rewards to those employees, officers,
      directors, and consultants of Matritech, Inc. (the “Company”) and its Affiliates
      (as defined below) who are in a position to contribute to the long-term success
      and growth of the Company and its Affiliates, (ii) to assist the Company and
      its
      Affiliates in attracting and retaining persons with the requisite experience
      and
      ability, and (iii) to more closely align the interests of such employees,
      officers, directors, and consultants with the interests of the Company’s
      stockholders.

     

    2. 
      Definitions

     

    “Affiliate”
      means any Subsidiary and any other business entity that is directly or
      indirectly controlled by the Company or any entity in which the Company has
      a
      significant ownership interest as determined by the Committee; provided that
      any
      business entity in which the Company holds, directly or indirectly, an equity,
      profits, or voting interest of 30% or
      more
      shall be deemed to be an Affiliate.

     

    “Applicable
      Law” means the applicable requirements relating to the administration of equity
      compensation plans under Delaware
      state corporate law, federal and state securities laws, the Code, any stock
      exchange or quotation system on which the Common Stock is listed or quoted,
      employment laws, and the applicable laws of any foreign jurisdiction where
      Awards are or will be granted.

     

    “Award”
      means any Option, Stock Appreciation Right, Restricted Stock, Restricted Stock
      Unit, Cash Award, or Foreign National Award granted under the Plan. Awards
      may
      be granted for services to be rendered or for past services already rendered
      to
      the Company or any Affiliate.

     

    “Cash
      Award” means an Award granted to a Participant pursuant to Section 10(d) of the
      Plan that is payable in cash, and that may be subject to certain terms,
      conditions, and restrictions.

     

    “Board”
      means the Board of Directors of the Company.

     

    “Code”
      means the Internal Revenue Code of 1986, as amended from time to time, or any
      successor law.

     

    “Committee”
      means one or more committees each comprised of not less than two members of
      the
      Board appointed by the Board to administer the Plan or a specified portion
      thereof. To the extent that the Board determines it is desirable to qualify
      Awards granted to Covered Employees under the Plan as “performance-based
      compensation” within the meaning of Section 162(m) of the Code, then each member
      of the Committee shall be an “outside director” 

     

    
      
         

      

      
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    within
      the meaning of Section 162(m) of the Code. To the extent that the Board
      determines it is desirable to qualify Awards granted by the Committee to a
      Reporting Person under the Plan as exempt under Rule 16b-3(d)(1) of the Exchange
      Act, then each member of the Committee shall be a “non-employee director” within
      the meaning of Rule 16b-3.

     

    “Common
      Stock” or “Stock” means the common stock of the Company.

     

    “Company”
      means Matritech, Inc., or any successor corporation.

     

    “Covered
      Employee” means a “covered employee” within the meaning of Section 162(m) of the
      Code.

     

    “Designated
      Beneficiary” means the beneficiary designated by a Participant, in a manner
      determined by the Committee, to receive amounts due or exercise rights of the
      Participant in the event of the Participant’s
      death. In the absence of an effective designation by a Participant, “Designated
      Beneficiary” means the Participant’s estate.

     

    “Disability”
      means a total and permanent disability as provided in the long-term disability
      plan or policy maintained by the Company or if applicable, most recently
      maintained, by the Company or if applicable, an Affiliate, for the Participant,
      whether or not such Participant actually receives disability benefits under
      such
      plan or policy. If no long-term disability plan or policy was ever maintained
      on
      behalf of the Participant or if the determination of disability relates to
      an
      Incentive Stock Option or SAR issued in tandem with an Incentive Stock Option,
      Disability means permanent and total disability as defined in Section 22(e)(3)
      of the Code. In the event of a dispute, the determination whether a Participant
      is disabled will be made by the Committee and may be supported by the advice
      of
      a physician competent in the area to which such disability relates.

     

    “Exchange
      Act” means the Securities Exchange Act of 1934, as amended from time to time, or
      any successor law.

     

    “Fair
      Market Value” means, with respect to Common Stock or any other property, the
      fair market value of such property as determined by the Committee in good faith
      or in the manner established by the Committee from time to time.

     

    “Foreign
      National Award” means an Award granted pursuant to Section 10(f) to a
      Participant who is a foreign national or employed or performing services outside
      of the United States.

     

    “Grant
      Date” means the first date on which all necessary corporate action has been
      taken to approve the grant of the Award as provided in the Plan, or such later
      date as is determined and specified as part of that authorization process.
      Notice of the grant shall be provided to the Participant within a reasonable
      time after the grant.

     

    “Grant
      Agreement” means the documentation evidencing an Award as provided in Section
      10(b).

     

    
      
         

      

      
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    “Incentive
      Stock Option” means an Option intended to qualify as an incentive stock option
      and which meets the requirements of Section 422 of the Code.

     

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

     

    “Option”
      means a right to acquire shares of Company Stock upon the payment of an exercise
      price that is granted in accordance with Section 6 of the Plan. An Option may
      be
      either an Incentive Stock Option or a Non-Qualified Stock Option.

     

    “Participant”
      means a person selected by the Committee to receive an Award under the
      Plan.

     

    “Performance
      Goals” means with respect to any Performance Period, one or more performance
      goals based on one or more of the following objective criteria established
      by
      the Committee prior to the beginning of such Performance Period or within such
      period after the beginning of the Performance Period as shall meet the
      requirements to be considered “pre-established objective performance goals” for
      purposes of the regulations issued under Section 162(m) of the Code: (i)
      increases in the price of the Common Stock, (ii) market share, (iii) sales,
      (iv)
      revenue, (v) return on equity, assets, or capital, (vi) economic profit
      (economic value added), (vii) total shareholder return, (viii) costs, (ix)
      expenses, (x) margins, (xi) earnings (including EBITDA) or earnings per share,
      (xii) cash flow (including adjusted operating cash flow), (xiii) customer
      satisfaction, (xiv) operating profit, (xv) net income, (xvi) research and
      development, (xvii) product development milestones, (xviii) product releases,
      (xix) FDA or other regulatory approvals, (xx) clinical trial milestones, (xxi)
      manufacturing metrics, or (xxii) any combination of the foregoing, including
      without limitation, goals based on any of such measures relative to appropriate
      peer groups or market indices. Such Performance Goals may be particular to
      a
      Participant or may be based, in whole or in part, on the performance of the
      division, department, line of business, Subsidiary, Affiliate or other business
      unit, whether or not legally constituted, in which the Participant works or
      on
      the performance of the Company generally.

     

    “Performance
      Period” means the period of service designated by the Committee applicable to an
      Award subject to Section 10(l) during which the Performance Goals will be
      measured.

     

    “Reporting
      Person” means a person subject to Section 16 of the Exchange Act.

     

    “Restricted
      Stock” means shares of Common Stock granted to a Participant pursuant to Section
      8 of the Plan that may be subject to certain terms, conditions, and
      restrictions.

     

    “Restricted
      Stock Unit” means the right granted to a Participant pursuant to Section 9 of
      the Plan to receive shares of Common Stock (or the equivalent value in cash
      or
      other property if the Committee so provides) in the future that may be subject
      to certain terms, conditions, and restrictions.

     

    
      
         

      

      
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    “Service
      Provider” means an employee, officer, director or consultant of the Company or
      any of its Affiliates.

     

    “Stock
      Appreciation Right” or “SAR” means a right to acquire cash or shares of Common
      Stock granted in accordance with Section 7 of the Plan having a value equal
      to
      the difference between the Fair Market Value on the date of exercise over the
      exercise price set forth in the Grant Agreement multiplied by the number of
      shares of Common Stock with respect to which the SAR is being
      exercised.

     

    “Subsidiary”
      means any subsidiary corporation as defined in Section 424(f) of the
      Code.

     

    “Substitute
      Awards” means Awards granted by the Company in assumption of, or in substitute
      or exchange for, Awards previously granted, or the right or obligation to make
      future Awards, by a company acquired by the Company or any Subsidiary or with
      which the Company or any Subsidiary combines.

     

    “Termination
      Date” means (i) in the case of an employee, the date that the Committee
      determines that the employee-employer relationship between the Company or
      Affiliate and such person ceased for any reason, (ii) in the case of a
      consultant or non-employee officer, the date that the Committee determines
      that
      the service relationship between the Company or Affiliate and such person ceased
      for any reason, and (iii) in the case of a director, the date that the Committee
      determines that such person’s service on the Board ceased for any
      reason.

     

    3. 
      Administration

     

    The
      Plan
      shall be administered by the Committee. Subject to and consistent with the
      provisions of the Plan, the Committee shall have the authority and discretion
      to: (i) determine which eligible employees, officers, directors, and consultants
      will receive Awards, (ii) determine the number of shares of Common Stock, cash,
      or other consideration to be covered by each Award, (iii) determine the terms
      and conditions of any Award (including Fair Market Value, the exercise price,
      the vesting schedule, the term of the Award, and the period following
      termination from employment or service during which an Award may be exercised),
      (iv) approve forms of Award agreements and other documentation for use under
      the
      Plan, (v) adopt, alter, and repeal administrative rules, guidelines, and
      practices governing the operation of the Plan and the Committee, (vi) interpret
      the provisions of the Plan and any Award documentation and remedy any
      ambiguities, omissions, or inconsistencies therein, (vii) to modify or amend
      Awards, or grant waivers of Plan or Award conditions, and (viii) make all other
      determinations necessary or advisable for the administration of the Plan. A
      majority of the members of the Committee shall constitute a quorum. The
      Committee’s decisions, determinations, and interpretations shall be final and
      binding on all persons having an interest in any Award. To the extent permitted
      by Applicable Law, the Committee may delegate to one or more executive officers
      of the Company the power to make Awards to Participants who are not Reporting
      Persons and all determinations under the Plan with respect thereto, provided
      that the Committee shall fix the maximum amount of such Awards for all such
      Participants and a maximum for any one Participant, and such other features
      of
      the Awards as required by Applicable Law.

     

    
      
         

      

      
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    4. 
      Eligibility

     

    Incentive
      Stock Options may be granted only to employees (including officers and directors
      who are also employees) of the Company or a Subsidiary. All other Awards may
      be
      granted to employees, officers, directors, and consultants of the Company or
      any
      Affiliate.

     

    5. 
      Stock
      Available for Awards

     

    (a)
      Amount.
      Subject
      to adjustment under Section 5(c), the aggregate number of shares of Common
      Stock
      that may be issued pursuant to Awards granted under the Plan shall be 4,000,000
      shares. Subject to adjustment under Section 5(c), up to 4,000,000 shares of
      Common Stock may be issued upon exercise of Incentive Stock Options granted
      under the Plan. Shares issued under the Plan may consist in whole or in part
      of
      authorized but unissued shares, or treasury shares, or shares purchased on
      the
      open market. At all times the Company will reserve and keep available a
      sufficient number of shares to satisfy the number of shares available for
      issuance under the Plan.

     

    (b)
       Share
      Counting.
      If an
      Award granted under the Plan is canceled, terminates, expires, is forfeited,
      lapses, or is settled in cash, then the shares subject to such Award (to the
      extent of such cancellation, termination, expiration, forfeiture, lapse, or
      settlement) shall again be available for issuance pursuant to Awards granted
      under the Plan. For purposes of Section 5(a), any shares granted as Options
      or
      Stock Appreciation Rights under the Plan shall be counted against this limit
      as
      one share for every share subject to the Award. Any shares granted as Awards
      other than Options or Stock Appreciation Rights shall be counted against the
      limit set forth in Section 5(a) as 1.5 shares for every one share subject to
      the
      Award. Any shares tendered in payment of an Option’s exercise price (whether by
      attestation or actual delivery), any shares tendered or withheld to satisfy
      a
      tax withholding on an Award, and any shares repurchased by the Company using
      Option proceeds shall not be added back to, replenish, or increase the aggregate
      Plan share limit set forth in Section 5(a).

     

    (c)
      Adjustment.
      In the
      event of any
      stock
      dividend, extraordinary cash dividend, recapitalization, reorganization, merger,
      consolidation, split-up, spin-off, combination, exchange of shares, or other
      transaction that
      affects
      the Common Stock such that an adjustment is required in order to preserve the
      benefits intended to be provided by the Plan, then the Committee (subject in
      the
      case of Incentive Stock Options to any limitation required under the Code)
      shall
      equitably adjust any or all of (i) the number and class of shares that may
      be
      issued in respect of Awards under the Plan, (ii) the number and class of shares
      subject to outstanding Awards, (iii) the number and class of shares subject
      to
      the limit on individual grants under Section 5(d) of the Plan, and (iv) the
      exercise price with respect to any of the foregoing, and if considered
      appropriate, the Committee may make provision for a cash payment with respect
      to
      an outstanding Award, provided that the number of shares subject to any Award
      shall always be a whole number.

     

    (d)
      Limit on Individual Grants.
      The
      maximum number of shares of Common Stock subject to all Awards that may be
      granted under this Plan to any Participant in the aggregate in any fiscal
      year of the Company shall not exceed 500,000 shares, subject to adjustment
      under
      Section 5(b). Notwithstanding the foregoing, during the fiscal year in which
      a
      Participant first becomes an employee of the Company or an Affiliate, the
      Participant may be granted Awards covering an additional 500,000 shares of
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    Section
      5(b). With respect to any Award settled in cash that is intended to satisfy
      the
      requirements for “performance-based compensation” (within the meaning of Section
      162(m)(4)(C) of the Code), no more than $2,500,000 may be paid to any one
      individual with respect to each year of a Performance Period.

     

    6. 
      Stock
      Options

     

    (a)
      Grant of Options.
      Subject
      to the provisions of the Plan, the Committee may grant Incentive Stock Options
      or Non-Qualified Stock Options to a Participant.

     

    (b)
      Terms and Conditions.
      The
      Committee shall determine the number of shares of Common Stock subject to each
      Option and the exercise price therefor, which shall not be less than 100% of
      the
      Fair Market Value of the Common Stock on the Grant Date. Each Option shall
      be
      exercisable at such times and subject to such terms and conditions as the
      Committee may specify in the Grant Agreement or thereafter; provided that (i)
      no
      Option shall be exercisable after the expiration of ten years
      from the Option’s Grant Date, and (ii) no Option may be granted with a reload
      feature which provides for an automatic grant of additional or replacement
      options upon the exercise of an Option. A Participant may exercise an Option
      by
      following such procedures as the Committee or its designees may specify from
      time to time. The Committee may impose such conditions with respect to the
      exercise of Options, including conditions relating to Applicable Laws, as it
      considers necessary or advisable.

     

    (c)
      Payment.
      No
      shares shall be delivered pursuant to any exercise of an Option until payment
      in
      full of the exercise price therefor is received by the Company. Except as
      otherwise provided by the Committee, such payment may be made in whole or in
      part in or pursuant to any of the following methods: (i) cash, (ii) by actual
      delivery or attestation of ownership of shares of Common Stock owned by the
      Participant, including vested Restricted Stock, (iii) by retaining shares of
      Common Stock otherwise issuable pursuant to the Option, (iv) for consideration
      received by the Company under a broker-assisted cashless exercise program
      acceptable to the Company, or (v) for such other lawful consideration as the
      Committee may determine.

     

    (d)
      Exercise
      Period. When
      a
      Participant’s status as a Service Provider terminates, the Participant’s Option
      may be exercised within the period of time specified in the Grant Agreement
      to
      the extent that the Option is vested on the Participant’s Termination Date. In
      the absence of a specific period of time set forth in the Grant Agreement,
      an
      Option shall remain exercisable for three (3) months following the date the
      Participant ceases to be a Service Provider, but in no event shall the Option
      be
      exercisable after the expiration of the term of such Option. If a Participant’s
      status as a Service Provider terminates from death or Disability or the
      Participant dies within three (3) months after his Termination Date, then
      (unless provided otherwise in the Grant Agreement) the Option shall remain
      exercisable for twelve (12) months following the date the Participant ceases
      to
      be a Service Provider, but in no event shall the Option be exercisable after
      the
      expiration of the term of such Option. In no event may the 

     

    
      
         

      

      
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    Committee
      provide in a Grant Agreement that the period of time for exercising an Option
      following a Participant’s Termination Date shall exceed three (3)
      years.

     

    (e)
      Incentive
      Stock Option Rules.
      In
      addition to the limitations and conditions that apply generally to Options,
      the
      following provisions shall apply to any Incentive Stock Option. The Committee
      may grant Incentive Stock Options only to persons who are employees of the
      Company or a Subsidiary as of the Grant Date. The aggregate Fair Market Value
      (determined as of the Grant Date) of all shares with respect to which Incentive
      Stock Options are exercisable for the first time by a Participant during any
      calendar year (under the Plan or any other incentive stock option plan of the
      Company or any Subsidiary) shall not exceed $100,000. If the Fair Market Value
      of shares on the Grant Date with respect to which Incentive Stock Options are
      exercisable for the first time by a Participant during any calendar year exceeds
      $100,000, the Options for the first $100,000 worth of shares to become
      exercisable in that calendar year will be Incentive Stock Options, and the
      Options for the shares with a Fair Market Value in excess of $100,000 that
      become exercisable in that calendar year will be Non-Qualified Stock Options.
      No
      Incentive Stock Option shall be granted to any individual who, at the Grant
      Date, owns stock possessing more than ten percent (10%) of the total combined
      voting power of all classes of stock of the Company or any Subsidiary unless
      the
      exercise price per share of such Option is at least 110% of the Fair Market
      Value per share at the Grant Date and the Option expires no later than five
      (5)
      years after the Grant Date. 

     

    The
      Company may require that any certificate representing shares acquired through
      exercise of an Incentive Stock Option bear a restrictive legend until such
      time
      as the shares represented thereby are no longer subject to the possibility
      of a
      Disqualifying Disposition, as defined herein. For purposes hereof, a
      Disqualifying Disposition means any sale or other disposition by a Participant
      of any shares acquired pursuant to the exercise of an Incentive Stock Option
      on
      or before the later of (i) the date two (2) years after the Grant Date, and
      (ii)
      the date one year after the exercise of the Incentive Stock Option.

     

    7. 
      Stock
      Appreciation Rights

     

    (a)
      Grant of SARs.
      Subject
      to the provisions of the Plan, the Committee may grant SARs to a Participant
      in
      tandem with an Option (at or after the award of the Option), or alone and
      unrelated to an Option. SARs granted in tandem with an Option shall terminate
      to
      the extent that the related Option is exercised, and the related Option shall
      terminate to the extent that the tandem SARs are exercised.

     

    (b)
      Terms and Conditions.
      The
      Committee shall determine the number of shares of Common Stock subject to each
      SAR and the exercise price therefor. A SAR granted in tandem with an Option
      shall have an exercise price not less than the exercise price of the related
      Option. A SAR granted alone and unrelated to an Option may not have an exercise
      price less than 100% of the Fair Market Value of the Common Stock on of the
      Grant Date. Each SAR shall be exercisable at such times and subject to such
      terms and conditions as the Committee may specify in the Grant Agreement or
      thereafter; provided that no SAR shall be exercisable after the expiration
      of
      ten years from the SAR’s Grant Date. A Participant may exercise a SAR by
      following such procedures as the 

     

    
      
         

      

      
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    Committee
      or its designees may specify from time to time. The Committee may impose such
      conditions with respect to the exercise of SARs, including conditions relating
      to Applicable Laws, as it considers necessary or advisable.

     

    (c)
      Exercise Period. When
      a
      Participant’s status as a Service Provider terminates, the Participant’s SAR may
      be exercised within the period of time specified in the Grant Agreement to
      the
      extent that the SAR is vested on the Participant’s Termination Date. In the
      absence of a specific period of time set forth in the Grant Agreement, a SAR
      shall remain exercisable for three (3) months following the date the Participant
      ceases to be a Service Provider, but in no event shall the SAR be exercisable
      after the expiration of the term of such SAR. If a Participant’s status as a
      Service Provider terminates from death or Disability or the Participant dies
      within three (3) months after his Termination Date, then (unless provided
      otherwise in the Grant Agreement) the SAR shall remain exercisable for twelve
      (12) months following the date the Participant ceases to be a Service Provider,
      but in no event shall the SAR be exercisable after the expiration of the term
      of
      such SAR. In no event may the Committee provide in the Grant Agreement that
      the
      period of time for exercising a SAR following a Participant’s Termination Date
      shall exceed three (3) years.

     

    8. 
      Restricted
      Stock

     

    (a)
      Grant of Restricted Stock.
      Subject
      to the provisions of the Plan, the Committee may grant Restricted Stock to
      a
      Participant.

     

    (b)
      Terms
      and Conditions.
      The
      Committee shall determine the number of shares of Common Stock subject to each
      Restricted Stock Award and the purchase price (if any) for each share. Shares
      of
      Restricted Stock may be issued for no cash consideration, or such minimum
      consideration as may be required by Applicable Law. The Committee may grant
      shares of Common Stock subject to such other terms, conditions, and restrictions
      (including forfeiture provisions and conditions relating to Applicable Laws)
      as
      it considers necessary or advisable.

     

    (c)
      Restrictions.
      Shares
      of Restricted Stock may not be sold, assigned, transferred, pledged or otherwise
      encumbered, except as permitted by the Committee, during the restricted period.
      Shares of Restricted Stock shall be evidenced in such manner as the Committee
      may determine, including book-entry registration. Any physical certificates
      issued in respect of shares of Restricted Stock shall be registered in the
      name
      of the Participant bearing an appropriate legend referring to the terms,
      conditions, and restrictions applicable to such Restricted Stock and unless
      otherwise determined by the Committee, deposited by the Participant, together
      with a stock power endorsed in blank, with the Company or a designated custodian
      or escrow agent. At the expiration of the restricted period, the Company shall
      deliver any such certificates to the Participant or if the Participant has
      died,
      to the Participant’s Designated Beneficiary.

     

    9. 
      Restricted
      Stock Units

     

    (a) Restricted
      Stock Units.
      Subject
      to the provisions of the Plan, the Committee may grant Restricted Stock Units
      to
      a Participant.

     

    
      
         

      

      
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    (b)
      Terms
      and Conditions.
      The
      Committee shall determine the number of shares of Common Stock subject to each
      Restricted Stock Unit Award and the purchase price (if any) for each unit.
      Restricted Stock Units may be issued for no cash consideration, or such minimum
      consideration as may be required by Applicable Law. The Committee may grant
      Restricted Stock Units subject to such other terms, conditions, and restrictions
      (including forfeiture provisions and conditions relating to Applicable Laws)
      as
      it considers necessary or advisable.

     

    (c)
      Unfunded
      Obligation.
      A
      Restricted Stock Unit Award shall constitute an unfunded and unsecured
      obligation of the Company, and shall be settled in shares of Common Stock or
      cash, as determined by the Committee at the time of grant or thereafter. Each
      unit shall represent the equivalent of one share of Common Stock.

     

    10. 
      General
      Provisions Applicable to Awards

     

    (a)
      Transferability.
      Except
      as
      otherwise provided in this Section 10(a), an Award (i) shall not be transferable
      other than as designated by the Participant by will or by the laws of descent
      and distribution, and (ii) may be exercised during the Participant’s lifetime
      only by the Participant or by the Participant’s guardian or legal
      representative. In the discretion of the Committee, any Award may be
      transferable upon such terms and conditions and to such extent as the Committee
      determines at or after grant, provided that Incentive Stock Options may be
      transferable only to the extent permitted by the Code.

     

    (b)
      Grant Agreement.
      Each
      Award under the Plan shall be evidenced by a written or electronic grant
      agreement delivered to the Participant specifying the terms and conditions
      thereof and containing such other terms and conditions not inconsistent with
      the
      provisions of the Plan or Applicable Laws as the Committee considers necessary
      or advisable to achieve the purposes of the Plan.

     

    (c)
      Committee Discretion.
      Each
      type
      of Award may be made alone, in addition to or in relation to any other Award.
      The terms of each type of Award need not be identical, and the Committee need
      not treat Participants uniformly. In addition to the authority granted to the
      Committee in Section 10(l) to make Awards to Covered Employees which qualify
      as
“performance-based compensation” for purposes of Section 162(m) of the Code, the
      Company may grant Awards subject to such performance conditions (including
      performance-based vesting) as it shall determine in its discretion. Except
      as
      otherwise provided by the Plan or a particular Award, any determination with
      respect to an Award may be made by the Committee at the time of grant or at
      any
      time thereafter.

     

    (d)
      Dividends and Cash Awards.
      In
      the
      discretion of the Committee, any Award under the Plan may provide the
      Participant with dividends or dividend equivalents payable currently or
      deferred, with or without interest. The Committee may also make cash payments
      under the Plan in lieu of or in addition to an Award. Such Cash Awards may
      be
      made subject to such terms, conditions, and restrictions as the Committee
      considers necessary or advisable. Each dividend payment will be made no later
      than the end of the calendar year in which the dividends are paid to
      shareholders of that class of stock or, if later, the 15th
      day of
      the third month following the date of the dividends are paid to shareholders
      of
      that class of stock.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    (e)
      Termination of Employment or Service.
      Whether
      military service, government service, or other leave of absence shall constitute
      a termination of employment or service, and whether the vesting of an Award
      shall cease, be suspended, or continue during such leave of absence, shall
      be
      determined in each case by the Committee in its discretion. Except as otherwise
      provided by the Committee, a Participant’s employment or service shall not be
      deemed to terminate upon the transfer of employment or service between the
      Company and an Affiliate. Except as otherwise provided by the Committee, a
      Participant’s employment or service shall be deemed to terminate, and further
      vesting of any Award shall cease, in the case of any sale, spin-off, or other
      disposition of the Participant’s employer or substantially all of its assets. To
      the extent that this Section 10(e) or action by the Committee results in an
      Incentive Stock Option being exercised beyond the date that a Participant is
      deemed to be an employee of the Company or a Subsidiary for purposes of Section
      424 of the Code, the Option shall be deemed to be a Non-Qualified Stock
      Option.

     

    (f)
      Change in Control.
      In
      order
      to preserve a Participant’s rights under an Award in the event of a change in
      control of the Company as defined by the Committee (a “Change in Control”), the
      Committee in its discretion may, at the time an Award is made or at any time
      thereafter, take one or more of the following actions: (i) provide for the
      acceleration of any time period relating to the exercise or payment of the
      Award, (ii) provide for payment to the Participant of cash or other property
      with a Fair Market Value equal to the amount that would have been received
      upon
      the exercise or payment of the Award had the Award been exercised or paid upon
      the Change in Control, (iii) adjust the terms of the Award in a manner
      determined by the Committee to reflect the Change in Control, (iv) cause the
      Award to be assumed, or new rights substituted therefor, by another entity,
      or
      (v) make such other provision as the Committee may consider equitable to
      Participants and in the best interests of the Company.

     

    (g)
      Loans.
      The
      Committee may not authorize the making of loans to Participants in connection
      with the grant or exercise of any Award under the Plan.

     

    (h)
      Withholding Taxes.
      A
      Participant shall pay to the Company, or make provision satisfactory to the
      Committee for payment of, any taxes required by law to be withheld in respect
      of
      Awards under the Plan no later than the date of the event creating the tax
      liability. In the Committee’s discretion, such tax obligations may be paid in
      whole or in part in shares of Common Stock, including shares retained from
      the
      Award creating the tax obligation, valued at their Fair Market Value on the
      date
      of delivery. The Company and its Affiliates may, to the extent permitted by
      Applicable Law, deduct any such tax obligations from any payment of any kind
      otherwise due to the Participant.

     

    (i)
      Foreign National Awards.
      Notwithstanding
      anything to the contrary contained in this Plan, Foreign National Awards may
      be
      made to Participants on such terms and conditions different from those specified
      in the Plan as the Committee considers necessary or advisable to achieve the
      purposes of the Plan or to comply with Applicable Law.

     

    (j)
      Amendment of Award.
      Except
      as
      provided in Section 10(k), the Committee may amend, modify, or terminate any
      outstanding Award, including substituting therefor

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     another
      Award of the same or a different type, changing the date of exercise or
      realization and converting an Incentive Stock Option to a Non-Qualified Stock
      Option, provided that the Participant’s consent to such action shall be required
      unless (i) the Committee determines that the action, taking into account any
      related action, would not materially and adversely affect the Participant,
      or
      (ii) the action is permitted by the terms of the Plan.

     

    (k)
      No
      Repricing of Options. Notwithstanding
      anything to the contrary in the Plan, the Company shall not engage in any
      repricing of Options or SARs granted under this Plan without further stockholder
      approval. For this purpose, the term “repricing” shall mean any of the following
      or other action that has the same effect: (i) lowering the exercise price of
      an
      Option or a SAR after it is granted, (ii) any other action that is treated
      as a
      repricing under generally accepted accounting principles, or (iii) canceling
      an
      Option or a SAR at a time when its exercise price exceeds the fair market value
      of the underlying stock in exchange for another Option, SAR, Restricted Stock,
      or other equity of the Company, unless the cancellation and exchange occurs
      in
      connection with a merger, acquisition, spin-off, or similar corporate
      transaction (including any adjustment described in Section 5(c)).

     

    (l)
      Code
      Section 162(m) Provisions.
      If the
      Committee determines at the time an Award is granted to a Participant that
      such
      Participant is, or may be as of the end of the tax year for which the Company
      would claim a tax deduction in connection with such Award, a Covered Employee,
      then the Committee may provide that the Participant’s right to receive cash,
      shares, or other property pursuant to such Award shall be subject to the
      satisfaction of Performance Goals during a Performance Period. Prior to the
      payment of any Award subject to this Section 10(l), the Committee shall certify
      in writing that the Performance Goals and other material terms applicable to
      such Award were satisfied. Notwithstanding the attainment of Performance
      Goals by a Covered Employee, the Committee shall have the right to reduce (but
      not to increase) the amount payable at a given level of performance to take
      into
      account additional factors that the Committee may deem relevant. The Committee
      shall have the power to impose such other restrictions on Awards subject to
      this
      Section 10(l) as it may deem necessary or appropriate to ensure that such Awards
      satisfy all requirements for “performance-based compensation” within the meaning
      of Section 162(m) of the Code.

     

    (m)
      Minimum
      Vesting Requirements for Full Value Awards. Each
      Restricted Stock or Restricted Stock Unit Award granted under the Plan (each,
      a
“Full Value Award”) shall vest in accordance with a schedule that does not
      permit such Full Value Award to vest in full prior to the third anniversary
      of
      the Grant Date of the Award. This minimum vesting requirement shall not,
      however, preclude the Committee from exercising its discretion to (i) accelerate
      the vesting of any Full Value Award upon retirement, termination of employment
      by the Company, death or Disability, (ii) accelerate the vesting of any Full
      Value Award in accordance with Section 10(f), (iii) establish a shorter vesting
      schedule for any Full Value Award granted to a consultant, director, or
      newly-hired employee, (iv) establish a shorter vesting schedule for any Full
      Value Award that is granted in exchange for or in lieu of the right to receive
      the payment of an equivalent amount of salary, bonus, directors’ fees, or other
      cash compensation, (v) establish a shorter performance-based vesting schedule
      in
      accordance with Section 10(c) or Section 10(l) (but in each case of not less
      than one year), or (vi) vest up to 1,000 shares per year for each Participant;
      provided, however, the total number of Full Value Awards granted under
      clauses

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     (iii)
      and (vi) above shall not exceed 300,000 shares in the aggregate (subject to
      adjustment in accordance with Section 5(c)).

     

    (n)
      Limitation Following a Hardship Distribution. To
      the
      extent required to comply with Treasury Regulation Section
      1.401(k)-1(d)(2)(iv)(B)(4), or any amendment or successor thereto, a
      Participant’s “elective and employee contributions” (within the meaning of such
      Treasury Regulation) under the Plan shall be suspended for a period of twelve
      months following such Participant’s receipt of a hardship distribution made in
      reliance on such Treasury Regulation from any plan containing a cash or deferred
      arrangement under Section 401(k) of the Code maintained by the Company or a
      related party within the provisions of Section 414 of the Code.

     

    11. 
      Miscellaneous

     

    (a)
      No Right To Employment.
      No
      person
      shall have any claim or right to be granted an Award. Neither the Plan nor
      any
      Award hereunder shall be deemed to give any employee the right to continued
      employment or service or to limit the right of the Company to discharge any
      Participant at any time.

     

    (b)
      No Rights As Stockholder.
      Subject
      to the provisions of the applicable Award, no Participant or Designated
      Beneficiary shall have any rights as a stockholder with respect to any shares
      of
      Common Stock to be distributed under the Plan until he or she becomes the holder
      thereof. A Participant to whom Common Stock is awarded shall be considered
      the
      holder of the Stock at the time of the Award except as otherwise provided in
      the
      Grant Agreement.

     

    (c)
      Compliance with Code Section 409A.
      No
      Award shall provide for the deferral of compensation that does not comply with
      Section 409A of the Code, unless the Committee, at the time of grant,
      specifically provides that the Award is not intended to comply with Section
      409A
      of the Code. The Company shall have no liability to a Participant if an Award
      that is intended to be exempt from, or compliant with, Section 409A is not
      so
      exempt or compliant.

     

    (d)
      Effective Date.
      Subject
      to the approval of the stockholders of the Company of an increase in authorized
      common stock above 90,000,000 shares and subject to the approval of the
      stockholders of the Company or this Plan, the Plan shall be effective on June
      15, 2006.

     

    (e)
      Amendment and Term of Plan.
      The
      Board
      may amend, suspend, or terminate the Plan or any portion thereof at any time,
      subject to such stockholder approval as the Board determines to be necessary
      or
      advisable to comply with any tax or regulatory requirement, provided, however,
      that the Board may not without stockholder approval materially amend the Plan
      (within the meaning of applicable exchange listing requirements) to materially
      increase the number of shares of Common Stock that may be issued under the
      Plan,
      materially increase benefits to Participants, materially expand the class of
      Participants eligible to participate in the Plan, or expand the types of Awards
      provided under the Plan. Unless terminated earlier by the Board, or extended
      by
      subsequent approval of the Company’s stockholders, the term of the Plan shall
      expire on June 15, 2016, and no further Awards shall be made thereafter. The
      termination 

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    of
      the
      Plan on such date shall not affect the validity of any Award outstanding on
      the
      date of termination.

     

    (f)
      Governing Law.
      The
      provisions of the Plan shall be governed by and interpreted in accordance with
      the laws of Massachusetts.

     

    (g)
      Indemnification.
      Neither
      the Board nor the Committee, nor any members of either, nor any employees or
      officers of the Company or any Affiliate, shall be liable for any act, omission,
      interpretation, construction, or determination made in good faith in connection
      with their responsibilities under the Plan, and the Company hereby agrees to
      indemnify the members of the Board, the members of the Committee, and the
      employees and officers of the Company or any Affiliate administering the Plan,
      in respect of any claim, loss, damage, or expense (including reasonable fees
      of
      legal counsel) arising from any such act, omission, interpretation,
      construction, or determination to the fullest extent permitted by Applicable
      Law.

     

    This
      Plan was approved by the Board of Directors on March 22, 2006.

     

    This
      Plan was approved by the Company’s stockholders on June 9,
      2006.

    

    The
      Plan was amended by the Board of Directors on September 15,
      2006.

     

    
      
         

      

      
        13Unassociated Document

    EXHIBIT
      10.2

    

    MATRITECH,
      INC.

    2002
      STOCK OPTION AND INCENTIVE PLAN

    as
      amended September 15, 2006 

    

    

    
      	1.	
              PURPOSE
                AND ELIGIBILITY

            

    

    

    The
      purpose of this 2002 Stock Option and Incentive Plan (the "Plan") of Matritech,
      Inc. (the "Company") is to provide stock options and other equity interests
      in
      the Company (each an "Award") to employees, officers, directors, consultants
      and
      advisors of the Company and its Subsidiaries, all of whom are eligible to
      receive Awards under the Plan. Any person to whom an Award has been granted
      under the Plan is called a "Participant." Additional definitions are contained
      in Section 8.

    

    
      	2.	
              ADMINISTRATION

            

    

    

    a.
      Administration by Board of Directors. The Plan will be administered by the
      Board
      of Directors of the Company (the "Board"). The Board, in its sole discretion,
      shall have the authority to grant and amend Awards, to adopt, amend and repeal
      rules relating to the Plan and to interpret and correct the provisions of the
      Plan and any Award. All decisions by the Board shall be final and binding on
      all
      interested persons. Neither the Company nor any member of the Board shall be
      liable for any action or determination relating to the Plan.

    

    b.
      Appointment of Committees. To the extent permitted by applicable law, the Board
      may delegate any or all of its powers under the Plan to one or more committees
      or subcommittees of the Board (a "Committee"). All references in the Plan to
      the
      "Board" shall mean such Committee or the Board.

    

    c.
      Delegation to Executive Officers. To the extent permitted by applicable law,
      the
      Board may delegate to one or more executive officers of the Company the power
      to
      grant Awards and exercise such other powers under the Plan as the Board may
      determine, provided that the Board shall fix the maximum number of Awards to
      be
      granted and the maximum number of shares issuable to any one Participant
      pursuant to Awards granted by such executive officers.

    

    
      	3.	
              STOCK
                AVAILABLE FOR AWARDS

            

    

    

    a.
      Number
      of Shares. Subject to adjustment under Section 3(c), the aggregate number of
      shares of common stock of the Company (the "Common Stock") that may be issued
      pursuant to the Plan is, 2,000,000 shares. If any Award expires, or is
      terminated, surrendered or forfeited, in whole or in part, the unissued Common
      Stock covered by such Award shall again be available for the grant of Awards
      under the Plan. If shares of Common Stock issued pursuant to the Plan are
      repurchased by, or are surrendered or forfeited to, the Company at no more
      than
      cost, such shares of Common Stock shall again 

     

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    be
      available for the grant of Awards under the Plan; provided, however, that the
      cumulative number of such shares that may be so reissued under the Plan will
      not
      exceed, 2,000,000 shares. Shares issued under the Plan may consist in whole
      or
      in part of authorized but unissued shares or treasury shares.

    

    b.
      Per-Participant Limit. Subject to adjustment under Section 3(c), no Participant
      may be granted Awards during any one fiscal year to purchase more than 1,000,000
      shares of Common Stock.

    

    c.
      Adjustment to Common Stock. In the event of any stock split, stock dividend,
      extraordinary cash dividend, recapitalization, reorganization, merger,
      consolidation, combination, exchange of shares, liquidation, spin-off, split-up,
      or other similar change in capitalization or event, (i) the number and class
      of
      securities available for Awards under the Plan and the per-Participant share
      limit, (ii) the number and class of securities, vesting schedule and exercise
      price per share subject to each outstanding Option, (iii) the repurchase price
      per security subject to repurchase, and (iv) the terms of each other outstanding
      stock-based Award shall be proportionately adjusted by the Company (or
      substituted Awards may be made) to reflect the events described in this
      paragraph. If Section7(e)(i) applies for any event, this Section 3(c) shall
      not
      be applicable.

    

    
      	4.	
              STOCK
                OPTIONS

            

    

    

    a.
      General. The Board may grant options to purchase Common Stock (each, an
      "Option") and determine the number of shares of Common Stock to be covered
      by
      each Option, the exercise price of each Option and the conditions and
      limitations applicable to the exercise of each Option and the Common Stock
      issued upon the exercise of each Option, including vesting provisions,
      repurchase provisions and restrictions relating to applicable federal or state
      securities laws, as it considers advisable.

    

    b.
      Incentive Stock Options. An Option that the Board intends to be an "incentive
      stock option" as defined in Section 422 of the Code (an "Incentive Stock
      Option") shall be granted only to employees of the Company and shall be subject
      to and shall be construed consistently with the requirements of Section 422
      of
      the Code. The Board and the Company shall have no liability if an Option or
      any
      part thereof that is intended to be an Incentive Stock Option does not qualify
      as such. An Option or any part thereof that does not qualify as an Incentive
      Stock Option is referred to herein as a "Nonstatutory Stock
      Option."

    

    c.
      Exercise Price. The Board shall establish the exercise price (or determine
      the
      method by which the exercise price shall be determined) at the time each Option
      is granted and specify it in the applicable option agreement.

    

    d.
      Duration of Options. Each Option shall be exercisable at such times and subject
      to such terms and conditions as the Board may specify in the applicable option
      agreement.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    e.
      Exercise of Option. Options may be exercised only by delivery to the Company
      of
      a written notice of exercise signed by the proper person together with payment
      in full as specified in Section 4(f) for the number of shares for which the
      Option is exercised.

    

    f.
      Payment Upon Exercise. Common Stock purchased upon the exercise of an Option
      shall be paid for by one or any combination of the following forms of
      payment:

    

    (i)
      by
      check payable to the order of the Company;

    

    (ii)
      except as otherwise explicitly provided in the applicable option agreement,
      and
      only if the Common Stock is then publicly traded, delivery of an irrevocable
      and
      unconditional undertaking by a creditworthy broker to deliver promptly to the
      Company sufficient funds to pay the exercise price, or delivery by the
      Participant to the Company of a copy of irrevocable and unconditional
      instructions to a creditworthy broker to deliver promptly to the Company cash
      or
      a check sufficient to pay the exercise price; or

    

    (iii)
      to
      the extent explicitly provided in the applicable option agreement, by (x)
      delivery of shares of Common Stock owned by the Participant valued at fair
      market value (as determined by the Board or as determined pursuant to the
      applicable option agreement), (y) delivery of a promissory note of the
      Participant to the Company (and delivery to the Company by the Participant
      of a
      check in an amount equal to the par value of the shares purchased), or (z)
      payment of such other lawful consideration as the Board may
      determine.

    

    
      	5.	
              RESTRICTED
                STOCK

            

    

    

    a.
      Grants. The Board may grant Awards entitling recipients to acquire shares of
      Common Stock, subject to (i) delivery to the Company by the Participant of
      cash
      or other lawful consideration in an amount at least equal to the par value
      of
      the shares purchased, and (ii) the right of the Company to repurchase all or
      part of such shares at their issue price or other stated or formula price from
      the Participant in the event that conditions specified by the Board in the
      applicable Award are not satisfied prior to the end of the applicable
      restriction period or periods established by the Board for such Award (each,
      a
      "Restricted Stock Award").

    

    b.
      Terms
      and Conditions. The Board shall determine the terms and conditions of any such
      Restricted Stock Award. Any stock certificates issued in respect of a Restricted
      Stock Award shall be registered in the name of the Participant and, unless
      otherwise determined by the Board, deposited by the Participant, together with
      a
      stock power endorsed in blank, with the Company (or its designee). After the
      expiration of the applicable restriction periods, the Company (or such designee)
      shall deliver the certificates no longer subject to such restrictions to the
      Participant or, if the Participant has died, to the beneficiary designated
      by a
      Participant, in a manner determined by the Board, to receive amounts due or
      exercise rights of the Participant in the event of the Participant's death
      (the
      "Designated Beneficiary"). In the absence of an effective designation by a
      Participant, Designated Beneficiary shall mean the Participant's
      estate.

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

       

    

    
      	
              6.

            	
              OTHER
                STOCK-BASED AWARDS

            

    

    

    The
      Board
      shall have the right to grant other Awards based upon the Common Stock having
      such terms and conditions as the Board may determine, including, without
      limitation, the grant of shares based upon certain conditions, the grant of
      securities convertible into Common Stock and the grant of stock appreciation
      rights, phantom stock awards or stock units.

    

    
      	7.	
              GENERAL
                PROVISIONS APPLICABLE TO AWARDS

            

    

    

    a.
      Transferability of Awards. Except as the Board may otherwise determine or
      provide in an Award, Awards shall not be sold, assigned, transferred, pledged
      or
      otherwise encumbered by the person to whom they are granted, either voluntarily
      or by operation of law, except by will or the laws of descent and distribution,
      and, during the life of the Participant, shall be exercisable only by the
      Participant. References to a Participant, to the extent relevant in the context,
      shall include references to authorized transferees.

    

    b.
      Documentation. Each Award under the Plan shall be evidenced by a written
      instrument in such form as the Board shall determine or as executed by an
      officer of the Company pursuant to authority delegated by the Board. Each Award
      may contain terms and conditions in addition to those set forth in the Plan
      provided that such terms and conditions do not contravene the provisions of
      the
      Plan.

    

    c.
      Board
      Discretion. The terms of each type of Award need not be identical, and the
      Board
      need not treat Participants uniformly.

    

    d.
      Termination of Status. The Board shall determine the effect on an Award of
      the
      disability, death, retirement, authorized leave of absence or other change
      in
      the employment or other status of a Participant and the extent to which, and
      the
      period during which, the Participant, or the Participant's legal representative,
      conservator, guardian or Designated Beneficiary, may exercise rights under
      the
      Award.

    

    e.
      Acquisition of the Company

    

    (i)
      Consequences of an Acquisition. Unless otherwise provided for in the applicable
      Option or Award, upon the consummation of an Acquisition, the Board or the
      board
      of directors of the surviving or acquiring entity (as used in this Section
      7(e)(i), also the "Board"), shall, as to outstanding Awards (on the same basis
      or on different bases as the Board shall specify), make appropriate provision
      for the continuation of such Awards by the Company or the assumption of such
      Awards by the surviving or acquiring entity and by substituting on an equitable
      basis for the shares then subject to such Awards either (a) the consideration
      payable with respect to the outstanding shares of Common Stock in connection
      with the Acquisition, (b) shares of stock of the surviving or acquiring
      corporation or (c) such other securities or other consideration as the Board
      deems 

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    appropriate,
      the fair market value of which (as determined by the Board in its sole
      discretion) shall not materially differ from the fair market value of the shares
      of Common Stock subject to such Awards immediately preceding the Acquisition.
      In
      addition to or in lieu of the foregoing, with respect to outstanding Options,
      the Board may, on the same basis or on different bases as the Board shall
      specify, upon written notice to the affected optionees, provide that one or
      more
      Options then outstanding must be exercised, in whole or in part, within a
      specified number of days of the date of such notice, at the end of which period
      such Options shall terminate, or provide that one or more Options then
      outstanding, in whole or in part, shall be terminated in exchange for a cash
      payment equal to the excess of the fair market value (as determined by the
      Board
      in its sole discretion) for the shares subject to such Options over the exercise
      price thereof; provided, however, that before terminating any portion of an
      Option that is not vested or exercisable (other than in exchange for a cash
      payment), the Board must first accelerate in full the exercisability of the
      portion that is to be terminated. Unless otherwise determined by the Board
      (on
      the same basis or on different bases as the Board shall specify), any repurchase
      rights or other rights of the Company that relate to an Option or other Award
      shall continue to apply to consideration, including cash, that has been
      substituted, assumed or amended for an Option or other Award pursuant to this
      paragraph. The Company may hold in escrow all or any portion of any such
      consideration in order to effectuate any continuing restrictions.

    

    (ii)
      Acquisition Defined. An "Acquisition" shall mean: (x) the sale of the Company
      by
      merger in which the shareholders of the Company in their capacity as such no
      longer own a majority of the outstanding equity securities of the Company (or
      its successor); or (y) any sale of all or substantially all of the assets or
      capital stock of the Company (other than in a spin-off or similar transaction)
      or (z) any other acquisition of the business of the Company, as determined
      by
      the Board.

    

    (iii)
      Assumption of Options Upon Certain Events. In connection with a merger or
      consolidation of an entity with the Company or the acquisition by the Company
      of
      property or stock of an entity, the Board may grant Awards under the Plan in
      substitution for stock and stock-based awards issued by such entity or an
      affiliate thereof. The substitute Awards shall be granted on such terms and
      conditions as the Board considers appropriate in the circumstances.

    

    f.
      Withholding. Each Participant shall pay to the Company, or make provisions
      satisfactory to the Company for payment of, any taxes required by law to be
      withheld in connection with Awards to such Participant no later than the date
      of
      the event creating the tax liability. The Board may allow Participants to
      satisfy such tax obligations in whole or in part by transferring shares of
      Common Stock, including shares retained from the Award creating the tax
      obligation, valued at their fair market value (as determined by the Board or
      as
      determined pursuant to the applicable option agreement). The Company may, to
      the
      extent permitted by law, deduct any such tax obligations from any payment of
      any
      kind otherwise due to a Participant.

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    g.
      Amendment of Awards. The Board may amend, modify or terminate any outstanding
      Award including, but not limited to, substituting therefor another Award of
      the
      same or a different type, changing the date of exercise or realization, and
      converting an Incentive Stock Option to a Nonstatutory Stock Option, provided
      that the Participant's consent to such action shall be required unless the
      Board
      determines that the action, taking into account any related action, would not
      materially and adversely affect the Participant.

    

    h.
      Conditions on Delivery of Stock. The Company will not be obligated to deliver
      any shares of Common Stock pursuant to the Plan or to remove restrictions from
      shares previously delivered under the Plan until (i) all conditions of the
      Award
      have been met or removed to the satisfaction of the Company, (ii) in the opinion
      of the Company's counsel, all other legal matters in connection with the
      issuance and delivery of such shares have been satisfied, including any
      applicable securities laws and any applicable stock exchange or stock market
      rules and regulations, and (iii) the Participant has executed and delivered
      to
      the Company such representations or agreements as the Company may consider
      appropriate to satisfy the requirements of any applicable laws, rules or
      regulations.

    

    i.
      Acceleration. The Board may at any time provide that any Options shall become
      immediately exercisable in full or in part, that any Restricted Stock Awards
      shall be free of some or all restrictions, or that any other stock-based Awards
      may become exercisable in full or in part or free of some or all restrictions
      or
      conditions, or otherwise realizable in full or in part, as the case may be,
      despite the fact that the foregoing actions may (i) cause the application of
      Sections 280G and 4999 of the Code if a change in control of the Company occurs,
      or (ii) disqualify all or part of the Option as an Incentive Stock Option.
      In
      the event of the acceleration of the exercisability of one or more outstanding
      Options, including pursuant to paragraph (e)(i), the Board may provide, as
      a
      condition of full exercisability of any or all such Options, that the Common
      Stock or other substituted consideration, including cash, as to which
      exercisability has been accelerated shall be restricted and subject to
      forfeiture back to the Company at the option of the Company at the cost thereof
      upon termination of employment or other relationship, with the timing and other
      terms of the vesting of such restricted stock or other consideration being
      equivalent to the timing and other terms of the superseded exercise schedule
      of
      the related Option.

    

    
      	8.	
              MISCELLANEOUS

            

    

    

    a.
      Definitions.

    

    (i)
      "Company," for purposes of eligibility under the Plan, shall include any present
      or future subsidiary corporations of Matritech, Inc., as defined in Section
      424(f) of the Code (a "Subsidiary"), and any present or future parent
      corporation of Matritech, Inc., as defined in Section 424(e) of the Code. For
      purposes of Awards other than Incentive Stock Options, the term “Company" shall
      include any other business venture in 

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    which
      the
      Company has a direct or indirect significant interest, as determined by the
      Board in its sole discretion.

    

    (ii)
      "Code" means the Internal Revenue Code of 1986, as amended, and any regulations
      promulgated thereunder.

    

    (iii)
      "employee" for purposes of eligibility under the Plan (but not for purposes
      of
      Section 4(b)) shall include a person to whom an offer of employment has been
      extended by the Company.

    

    b.
      No
      Right To Employment or Other Status. No person shall have any claim or right
      to
      be granted an Award, and the grant of an Award shall not be construed as giving
      a Participant the right to continued employment or any other relationship with
      the Company. The Company expressly reserves the right at any time to dismiss
      or
      otherwise terminate its relationship with a Participant free from any liability
      or claim under the Plan.

    

    c.
      No
      Severance or Termination Rights. Awards under this Plan do not entitle the
      Participant to any benefit other than that granted under this Plan. Any benefits
      granted under this Plan are not part of the Participant's ordinary salary,
      and
      shall not be considered as part of such salary for pension purposes or in the
      event of severance, redundancy or resignation.

    

    d.
      No
      Rights As Stockholder. Subject to the provisions of the applicable Award, no
      Participant or Designated Beneficiary shall have any rights as a stockholder
      with respect to any shares of Common Stock to be distributed with respect to
      an
      Award until becoming the record holder thereof.

    

    e.
      Effective Date and Term of Plan. The Plan shall become effective on the date
      on
      which it is approved by the stockholders. No Awards shall be granted under
      the
      Plan after the completion of ten years from the date on which the Plan was
      approved by the stockholders, but Awards previously granted may extend beyond
      that date.

    

    f.
      Amendment of Plan. The Board may amend, suspend or terminate the Plan or any
      portion thereof at any time.

    

    g.
      Governing Law. The provisions of the Plan and all Awards made hereunder shall
      be
      governed by and interpreted in accordance with the laws of Massachusetts,
      without regard to any applicable conflicts of law.

    

    Adopted
      by the Board of Directors on February 11, 2002.

    

    Approved
      by the stockholders on June 14, 2002.

    

    Amended
      by the Board of Directors on September 15, 2006. 

    

    
      
         

      

      
        7

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