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      Exhibit
        10-18

      

      FBO
        AIR, INC. 

      STOCK
        OPTION PLAN 

      OF
        2005

      

      Section
        1. Purpose
        of the Plan.
        The
        purpose of this Stock Option Plan (the "Plan") is to promote the growth and
        general prosperity of FBO Air, Inc., a Nevada corporation (the "Company"),
        by
        permitting the Company to grant stock options to purchase shares of the
        Company's Common Stock, $0.001 par value, to directors, officers, employees
        and
        consultants of the Company and subsidiaries thereof. The Plan is designed
        to
        help attract and retain superior personnel for positions of substantial
        responsibility with the Company and its subsidiaries and to provide directors,
        officers, employees and consultants with an additional incentive to contribute
        to the success of the Company and its subsidiaries.

      

      Section
        2. Definitions.
        In
        addition to the definitions used in Section 1 hereof, as used herein, the
        following definitions shall apply:

      

      (a)  "Administrator"
        shall mean the Compensation Committee of the Board; provided, however, that
        the
        Board, in its sole discretion, may from time to time exercise the powers
        of the
        Administrator hereunder. 

      

      (b)  "Affiliate"
        of, or a Person "affiliated" with, a specific Person shall mean a Person
        that
        directly, or indirectly through one or more intermediaries, controls, or
        is
        controlled by, or is under common control with, the Person specified. "Control"
        (including the terms "controlling," "is controlled by," and "under common
        control with") shall mean the possession, direct or indirect, of the power
        to
        direct or cause the direction of the management and policies of a Person,
        whether through the ownership of voting securities, by contract or
        otherwise.

      

      (c)  "Applicable
        Laws" shall mean the legal requirements relating to the administration of
        stock
        option plans under applicable United States state corporate laws, United
        States
        federal and applicable state securities laws, rules and regulations, the
        Code,
        and the applicable laws, rules and regulations of any other country or
        jurisdiction where the Optionee resides or of which the Optionee is a citizen,
        as such laws, rules, regulations and requirements shall be in effect from
        time
        to time.

      

      (d)  "Board"
        shall mean the Board of Directors of the Company.

      

      (e)  "Cause"
        or “Discharged for Cause” shall mean (i) a conviction of a felony, whether or
        not related to the Company or any Subsidiary; (ii) dishonesty or theft with
        respect to the Corporation or any Subsidiary; (iii) disclosing trade secrets
        of
        the Corporation or any Subsidiary; (iv) entering into competition, directly
        or
        indirectly, with the Corporation or any Subsidiary while an Employee, Director,
        Officer or Consultant thereof or thereto; or (v) using the Corporation’s or any
        Subsidiary’s facilities or premises for the conduct of illegal or unlawful
        activities, transactions or business. If the Optionee has an employment or
        consulting agreement with the Company or any Subsidiary and the term “Cause” (or
        a phrase similar thereto) is defined therein, such definition shall be
        substituted in the Option Agreement for this definition with respect to such
        Optionee.

      
        
           

        

        
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      (f)  "Change
        of Control" shall mean the occurrence of one or more of the following events:
        (i) the election of one or more individuals to the Board which election results
        in one-third of the directors of the Company consisting of individuals who
        have
        not been Directors of the Company for at least two years, unless such
        individuals have been elected as Directors or nominated for election as
        Directors by three-fourths of the Directors of the Company who have been
        directors of the Company for at least two years; (ii) the sale or transfer
        of
        shares by the Company and/or any one or more of its stockholders, in one
        or more
        transactions, related or unrelated, to one or more Persons under circumstances
        whereby any Person and its Affiliates shall own, after such sales and transfers,
        at least one-fourth, but less than one-half, of the shares of the Company
        having
        voting power for the election of Directors, unless such sale or transfer
        has
        been approved in advance by three-fourths of the Directors of the Company
        who
        have been Directors of the Company for at least two years; (iii) the sale
        or
        transfer of shares of the Company by the Company and/or any one or more of
        its
        stockholders, in one or more transactions, related or unrelated, to one or
        more
        Persons under circumstances whereby any Person and its Affiliates shall own,
        after such sales and transfers, at least one-half of the shares of the Company
        having voting power for the election of Directors; or (iv) the contemplated
        merger or consolidation of the Company with and into another entity where
        the
        Company is not the survivor (other than for the purpose of reincorporating
        in
        another state) unless such merger or consolidation has been approved in advance
        by three-fourths of the Directors of the Company who have been Directors
        of the
        Company for at least two years, provided, however, if the merger or
        consolidation is not thereafter consummated, a Change in Control shall not
        have
        occurred.

      

      (g)  "Code"
        shall mean the Internal Revenue Code of 1986, as amended.

      

      (h)  "Common
        Stock" shall mean the Common Stock, $0.001 par value, of the Company or any
        successor security that replaces the same. 

      

      (i)  "Consultant"
        shall mean any person, including an advisor, who is engaged by the Company
        or
        any Subsidiary to render services in a capacity other than as an Employee
        and is
        compensated for such services, but does not include any Director or Officer
        of
        the Company or a Subsidiary, whether compensated for such services or not,
        who
        is not an Employee. 

      

      (j)  "Continuous
        Status" shall mean the absence of any interruption or termination of service
        as
        an Employee, Director, Officer or Consultant, whether with the Company or,
        if
        applicable, any Subsidiary. Continuous Status shall not be considered
        interrupted in the case of: (i) sick leave; (ii) military leave; (iii) any
        other
        leave of absence approved by the Administrator, provided that such leave
        is for
        a period of not more than 90 days, unless reemployment upon the expiration
        of
        such leave is guaranteed by contract or statute, or unless provided otherwise
        pursuant to any Company policy adopted from time to time; or (iv) transfers
        between locations of the Company or between the Company, its Subsidiaries
        or
        their respective successors. For purposes of this Plan, a change in status
        from
        an Employee to a Consultant or from a Consultant to an Employee will not
        constitute an interruption of Continuous Status.

      

      (k)  "Director"
        shall mean a director of the Company and/or any Subsidiary.

      
        
           

        

        
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      (l)  "Employee"
        shall mean any person, including Officers and Directors, employed by the
        Company
        or any Subsidiary of the Company, with the status of employment determined
        based
        upon such minimum number of hours or periods worked as shall be determined
        by
        the Administrator in its discretion, subject to any requirements of the Code.
        The payment by the Company of a director's fee to a Director shall not be
        sufficient to constitute "employment" of such Director by the
        Company.

      

      (m)  "Exchange
        Act" shall mean the Securities Exchange Act of 1934, as amended.

      

      (n)  "Fair
        Market Value" shall mean, as of any date, the fair market value of the Common
        Stock determined as follows:

      

      (i)  If
        the
        Common Stock is listed on any established Stock Exchange or traded on the
        Nasdaq
        System, its Fair Market Value shall be the closing sales price for the Common
        Stock (or the closing bid price, if no sales were reported) as quoted on
        such
        Exchange or the Nasdaq System, or, if traded on more than one Exchange, the
        Exchange with the greatest volume of trading in the Common Stock, on the
        date of
        determination or, if such date is not a market trading day, on the last market
        trading day prior to the date of determination; 

      

      (ii)  If
        the
        Common Stock is quoted on NASD’s OTC Bulletin Board or any similar trading board
        operated by the NASD, its Fair Market Value shall be the closing sales price
        for
        the Common Stock (or the closing bid price for the Common Stock, if no sales
        were reported) as quoted on the OTC Bulletin Board or such other board on
        the
        date of determination or, if such date is not a market trading day, on the
        last
        market trading day prior to the date of determination;

      

      (iii)  If
        the
        Common Stock is quoted in the pink sheets as reported by Pink Sheets LLC,
        or any
        successor organization, or regularly quoted by a recognized securities dealer,
        but selling prices are not reported, its Fair Market Value shall be the mean
        between the high bid and low asked prices for the Common Stock on the date
        of
        determination or, if such date is not a market trading day, on the last market
        trading day prior to the time of determination; or

      

      (iv)  In
        the
        absence of an established market for the Common Stock, the Fair Market Value
        thereof shall be determined in good faith by the Administrator.

      

      In
        determining the market prices pursuant to subsections (i), (ii) or (iii)
        above,
        the Administrator may rely on the prices as quoted in The Wall Street Journal
        or
        any other source as the Administrator deems reliable.

      

      (o) "Incentive
        Stock Option" shall mean an Option intended to qualify as an incentive stock
        option within the meaning of Section 422 of the Code, or any successor
        provision, as designated in the applicable written Option
        Agreement.

      

      (p) "NASD"
        shall mean the National Association of Securities Dealers, Inc.

      
        
           

        

        
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      (q)  "Nasdaq"
        shall mean The Nasdaq Stock Market, Inc. and “Nasdaq Systems” shall mean either
        the National Market System or the SmallCap System of Nasdaq.

      

      (r)  "Non-Qualified
        Stock Option" shall mean an Option not intended to qualify as an Incentive
        Stock
        Option as designated in the applicable written Option Agreement.

      

      (s)  "Officer"
        shall mean an officer of the Company and/or any Subsidiary 

      

      (t)  "Option"
        shall mean a stock option granted pursuant to the Plan.

      

      (u)  "Option
        Agreement" shall mean a written agreement between an Optionee and the Company
        reflecting the terms of an Option granted under the Plan and includes any
        documents attached to such Option Agreement, including, but not limited to,
        a
        form of exercise notice.

      

      (v)  "Optionee"
        shall mean an individual Person who is granted an Option.

      

      (w)  "Person"
        shall mean an individual, corporation, limited liability company, partnership,
        firm, trust, estate or other similar entity. When two or more Persons act
        as a
        partnership, syndicate, or other group for the purpose of acquiring, holding,
        or
        disposing of securities of the Company, such syndicate or group shall be
        deemed
        a "Person" for the purpose of the definition of “Change in
        Control.”

      

      (x)  "Reporting
        Person" shall mean an Officer, Director, or greater than 10% stockholder
        of the
        Company within the meaning of Rule 16a-2 under the Exchange Act, or any
        successor provision, who is required to file reports pursuant to Rule 16a-3
        under the Exchange Act.

      

      (y)  "Securities
        Act" shall mean the Securities Act of 1933, as amended.

      

      (z)  "Share"
        shall mean a share of the Common Stock, as adjusted in accordance with Section
        11 of the Plan.

      

      (aa)  "Stock
        Exchange" shall mean any national securities exchange on which prices for
        the
        Common Stock are quoted at any given time.

      

      (bb)  "Subsidiary"
        shall mean a "subsidiary corporation," whether now or hereafter existing,
        as
        defined in Section 424(f) of the Code, or any successor provision.

      

      Section
        3. Stock
        Subject to the Plan.
        Subject
        to the provisions of Section 11 of the Plan, the maximum aggregate number
        of
        Shares that may be optioned and sold under the Plan is 7,500,000 shares of
        the
        Common Stock. The Shares may be authorized, but unissued, or reacquired shares
        of the Common Stock. If an Option should expire or become unexercisable for
        any
        reason without having been exercised in full, the unpurchased Shares that
        were
        subject thereto shall, unless the Plan shall have been terminated, become
        available for future grant under the Plan. In addition, any Shares which
        are
        retained by the Company upon exercise of an Option in order to satisfy the
        exercise price for such Option or any withholding taxes due with respect
        to such
        exercise shall be treated as not issued and shall continue to be available
        for
        future grant under the Plan. 

      
        
           

        

        
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      Section
        4 Administration
        of the Plan.

      

      (a)  Plan
        Procedure.
        Grants
        under the Plan shall be made by the Compensation Committee unless the Board,
        in
        its sole discretion, elects to make a grant.

      

      (b)  Power
        of the Administrator.
        Subject
        to the provisions of the Plan, any Applicable Laws and the rules and
        regulations, if applicable, of any Stock Exchange or Nasdaq, the Administrator
        shall have the authority, in its discretion:

      

      (i)  to
        determine the Fair Market Value of the Common Stock in accordance with Section
        2(n) of the Plan;

      

      (ii)  to
        select
        the Consultants, Directors, Employees and Officers to whom Options may from
        time
        to time be granted hereunder;

      

      (iii)  to
        determine the number of shares of the Common Stock to be covered by each
        such
        Option granted hereunder;

      

      (iv)  to
        determine the consideration to be paid upon exercise of an Option consistent
        with Section 8(b) hereof;

      

      (v)  to
        determine the terms and conditions, not inconsistent with the terms of the
        Plan,
        of any Option granted hereunder;

      

      (vi)  to
        approve forms of Option Agreement for use under the Plan;

      

      (vii)  to
        reduce
        the exercise price of any Option to the then current Fair Market Value if
        the
        Fair Market Value of the Common Stock covered by such Option shall have declined
        since the date the Option was granted; and

      

      (viii)  to
        construe and interpret the terms of the Plan and the Options granted pursuant
        to
        the Plan.

      

      (d)  Effect
        of Administrator's Decision.
        All
        decisions, determinations and interpretations of the Administrator shall
        be
        final and binding on all holders of Options.

      

      Section
        5. Eligibility.

      

      (a)  Recipients
        of Grants.
        Non-Qualified Stock Options may be granted to Employees, Directors, Officers
        and
        Consultants. Incentive Stock Options may be granted only to Employees. An
        Employee, Director, Officer or Consultant who has been granted an Option
        may, if
        he or she is otherwise eligible, be granted additional Options.

      
        
           

        

        
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      (b)  Type
        of Option.
        Each
        Option shall be designated, in the grant by the Administrator and thereafter
        reflected in the Option Agreement, as either an Incentive Stock Option or
        a
        Non-Qualified Stock Option. However, notwithstanding such designations, to
        the
        extent that the aggregate Fair Market Value of Shares with respect to which
        Options designated as Incentive Stock Options are exercisable for the first
        time
        by any Optionee during any calendar year (under all plans of the Company
        or any
        Subsidiary) exceeds $100,000, such Options shall be treated as Non-Qualified
        Stock Options with respect to the excess Shares. For purposes of this Section
        5(b), Incentive Stock Options shall be taken into account in the order in
        which
        they were granted and the Fair Market Value of the Shares subject to an
        Incentive Stock Option shall be determined as of the date of the grant of
        such
        Option.

      

      (c)  No
        Effect on Employment or Consulting Rights. The
        Plan
        shall not confer upon the holder of any Option any right with respect to
        continuation of an employment or a consulting relationship with the Company
        or
        any Subsidiary, nor shall it interfere in any way with such holder's right
        or
        the Company's or any Subsidiary's right to terminate his or her employment
        or
        consulting relationship at any time, with or without cause. Similarly, the
        Plan
        shall not confer upon the holder of any Option any right to continue to serve
        as
        a Director or an Officer, such right being governed by the certificate of
        incorporation, the bylaws and/or the laws of the applicable state of
        incorporation of the Company or the Subsidiary.

       

      (d)  Consultant
        Eligibility.
        To be
        eligible to receive an Option under the Plan, a Consultant must be a natural
        person and must provide bona
        fide
        services
        to the Company or a Subsidiary which are not in connection with the offer
        or
        sale of securities of the Company in a capital raising transaction and do
        not
        directly or indirectly promote or maintain a market for the Company's
        securities.

      

      Section
        6. Term
        of Plan.
        The
        Plan shall become effective upon December 13, 2005, the date of its adoption
        by
        the Board of Directors, subject to its approval by the stockholders of the
        Company as described in Section 18 of the Plan. It shall continue in effect
        for
        a term of ten years until December 12, 2015 unless sooner terminated under
        Section 14 of the Plan.

      

      Section
        7. Term
        of Option.
        The
        term of each Option shall be the term stated in the Option Agreement; provided,
        however, that the term shall be no more than ten years from the date of grant
        thereof or such shorter term as may be provided in the Option Agreement and
        provided further that, in the case of an Incentive Stock Option granted to
        an
        Optionee who, at the time the Option is granted, owns stock representing
        more
        than 10% of the total combined voting power of all classes of stock of the
        Company or any Subsidiary, the term of the Option shall be five years from
        the
        date of grant thereof or such shorter term as may be provided in the Option
        Agreement.

      

      

      Section
        8. Option
        Exercise Price and Consideration.

      

      (a)  Per
        Share Exercise Price. The
        per
        share exercise price for the Shares to be issued pursuant to exercise of
        an
        Option shall be such price as is determined by the Administrator and set
        forth
        in the applicable Option Agreement, but shall be subject to the
        following:

      
        
           

        

        
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        (i)  In
          the
          case of an Incentive Stock Option that is:

      

      

      (A)  granted
        to an Employee who, at the time of the grant of such Incentive Stock Option,
        owns stock representing more than 10% of the total combined voting power
        of all
        classes of stock of the Company or any Subsidiary, the per Share exercise
        price
        shall be no less than 110% of the Fair Market Value per Share on the date
        of
        grant.

      

      (B)  granted
        to any other Employee, the per Share exercise price shall be no less than
        100%
        of the Fair Market Value per Share on the date of grant.

      

      (ii)  In
        the
        case of a Non-Qualified Stock Option, the per Share exercise price shall
        be no
        less than 100% of the Fair Market Value per Share on the date of grant; provided
        that, in isolated cases, the Administrator may grant a Non-Qualified Stock
        Option at a per Share exercise price which is less than 100% of the Fair
        Market
        Value per Share on the date of grant.

      

      The
        date
        of grant shall be as determined by the Administrator in accordance with Section
        13 hereof. 

      

      (b)  Consideration.
        The
        consideration to be paid for the Shares to be issued upon exercise of an
        Option,
        including the method of payment, shall be determined by the Administrator.
        The
        consideration may consist entirely of (i) cash, (ii) check, (iii) other Shares
        that (A), in the case of Shares acquired upon exercise of an Option, have
        been
        owned by the Optionee for more than six months on the date of surrender or
        such
        other period as may be required to avoid a charge to the Company's earnings,
        and
        (B) have a Fair Market Value on the date of surrender equal to the aggregate
        exercise price of the Shares as to which such Option shall be exercised,
        (iv)
        authorization for the Company to retain from the total number of Shares as
        to
        which the Option is exercised that number of Shares having a Fair Market
        Value
        on the date of exercise equal to the exercise price for the total number
        of
        Shares as to which the Option is exercised, (v) delivery of a properly executed
        exercise notice together with such other documentation as the Administrator
        and
        the broker, if applicable, shall require to effect an exercise of the Option
        and
        delivery to the Company of the sale or loan proceeds required to pay the
        exercise price and any applicable income or employment taxes, (vi) any
        combination of the foregoing methods of payment, or (vii) such other
        consideration and method of payment for the issuance of Shares to the extent
        permitted under the Applicable Laws. In making its determination as to the
        type
        of consideration to accept, the Administrator shall consider if acceptance
        of
        such consideration may be reasonably expected to benefit the Company. Until
        the
        Administrator determines otherwise, in which event notice shall be given
        to the
        Optionee or provision shall be made in his or her Option Agreement, any of
        the
        foregoing methods of payment shall be acceptable.

      

      Section
        9. Exercise
        of Option.

      

      (a)  Procedure
        for Exercise.
        Any
        Option granted hereunder shall be exercisable at such times and under such
        conditions as determined by the Administrator and reflected in the Option
        Agreement, which may include vesting requirements and/or performance criteria
        with respect to the Company and/or the Optionee. 

      
        
           

        

        
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      An
        Option
        shall be deemed to be exercised when written notice of such exercise has
        been
        given to the Company in accordance with the terms of the Option by the person
        entitled to exercise the Option and the Company has received full payment
        for
        the Shares with respect to which the Option is exercised. Full payment may,
        as
        authorized by the Administrator, consist of any consideration and method
        of
        payment allowable under Section 8(b) of the Plan.

      

      Exercise
        of an Option in any manner shall result in a decrease in the number of Shares
        that thereafter may be available, both for purposes of the Plan and for sale
        under the Option, by the number of Shares as to which the Option is
        exercised.

      

      (b)  Fractional
        Shares.
        An
        Option may not be exercised for a fraction of a Share. Any fraction of a
        Share
        shall be cancelled.

      

      (c)  Rights
        as Stockholders. Until
        the
        issuance (as evidenced by the appropriate entry on the books of a duly
        authorized transfer agent of the Company) of the stock certificate evidencing
        the Shares issuable upon exercise of an Option, no right to vote or receive
        dividends or any other rights as a stockholder shall exist with respect to
        the
        Shares subject to the Option notwithstanding the exercise of the Option.
        The
        Company shall cause such stock certificate to be issued promptly upon exercise
        of the Option. No adjustment will be made for a dividend or other right for
        which the record date is prior to the date the stock certificate is issued,
        except as provided in Section 11 of the Plan.

      

      (d)  Termination
        of Relationship.
        Subject
        to Section 9(e), 9(f) and 9(g) below, in the event of termination of an
        Optionee's Continuous Status, such Optionee may, but only within three months
        (or such other period of time not less than 30 days as is determined by the
        Administrator, with such determination in the case of an Incentive Stock
        Option
        being made at the time of grant of the Option and not exceeding three months)
        after the date of such termination (but in no event later than the expiration
        date of the term of such Option as set forth in the Option Agreement), exercise
        his or her Option to the extent that the Optionee was entitled to exercise
        it at
        the date of such termination. To the extent that the Optionee was not entitled
        to exercise the Option at the date of such termination, or if the Optionee
        does
        not exercise such Option to the extent so entitled within the time specified
        herein, the Option shall terminate. 

      

      (e)  Termination
        for Cause.
        Notwithstanding Section 9(d) above, in the event of termination of an Optionee’s
        Continuous Status as a result of Cause, the Option will forthwith
        terminate.

       

      (f)  Disability
        of Optionee.

      

      (i)  Notwithstanding
        Section 9(d) above, in the event of termination of an Optionee's Continuous
        Status as a result of his or her total and permanent disability (within the
        meaning of Section 22(e)(3) of the Code), such Optionee may, but only within
        12
        months from the date of such termination (but in no event later than the
        expiration date of the term of such Option as set forth in the Option
        Agreement), exercise the Option to the extent otherwise entitled to exercise
        it
        at the date of such termination. To the extent that the Optionee was not
        entitled to exercise the Option at the date of termination, or if the Optionee
        does not exercise such Option to the extent so entitled within the time
        specified herein, the Option shall terminate.

      
        
           

        

        
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      (ii)  In
        the
        event of termination of an Optionee's Continuous Status as a result of a
        disability which does not fall within the meaning of total and permanent
        disability (as set forth in Section 22(e)(3) of the Code), such Optionee
        may,
        but only within six months from the date of such termination (but in no event
        later than the expiration date of the term of such Option as set forth in
        the
        Option Agreement), exercise the Option to the extent otherwise entitled to
        exercise it at the date of such termination. However, to the extent that
        such
        Optionee fails to exercise an Option which is an Incentive Stock Option (within
        the meaning of Section 422 of the Code) within three months of the date of
        such
        termination, the Option will not qualify for incentive stock option treatment
        under the Code. To the extent that the Optionee was not entitled to exercise
        the
        Option at the date of termination, or if the Optionee does not exercise such
        Option to the extent so entitled within six months or three months, as the
        case
        may be, from the date of termination, the Option shall terminate.

      

      (g)  Death
        of Optionee.
        Notwithstanding Section 9(d) above, in the event of the death of an Optionee
        during the period of Continuous Status since the date of grant of the Option,
        or
        within 30 days following termination of the Optionee's Continuous Status,
        the
        Option may be exercised, at any time within 12 months following the date
        of
        death (but in no event later than the expiration date of the term of such
        Option
        as set forth in the Option Agreement), by such Optionee's estate or by a
        person
        who acquired the right to exercise the Option by bequest or inheritance,
        but
        only to the extent of the right to exercise that had accrued at the date
        of
        death or, if earlier, the date of termination of the Optionee's Continuous
        Status. To the extent that the Optionee was not entitled to exercise the
        Option
        at the date of death or termination, as the case may be, or if the Optionee
        does
        not exercise such Option to the extent so entitled within the time specified
        herein, the Option shall terminate.

       

      (h)  Anything
        in subsections (d), (e), (f) and (g) of this Section 9 notwithstanding and
        always subject to the Applicable Laws, particularly the Code in the case
        of an
        Incentive Stock Option, and, if applicable, the rules and regulations of
        any
        Stock Exchange or Nasdaq, the Administrator may provide in the Option Agreement
        for a different date of termination (but in no event later than the expiration
        date of the term of the Option) and may provide for termination in the event
        of
        certain events which the Administrator shall define as Cause or as shall
        be so
        defined in any employment or consulting agreement between the Company and
        the
        Optionee.

      

      Section
        10. Stock
        Withholding to Satisfy Withholding Tax Obligations.
        At the
        discretion of the Administrator, Optionees may satisfy tax withholding
        obligations as provided in this Section 10. When an Optionee incurs tax
        liability in connection with an Option, which tax liability is subject to
        tax
        withholding under applicable tax laws, and the Optionee is obligated to pay
        the
        Company an amount required to be withheld under applicable tax laws, the
        Optionee may satisfy the withholding tax obligation by one or some combination
        of the following methods: (a) by cash or check payment, (b) out of the
        Optionee's current compensation if an Employee, (c) if permitted by the
        Administrator, in its discretion, by surrendering to the Company Shares that
        (i), in the case of Shares previously acquired from the Company, have been
        owned
        by the Optionee for more than six months on the date of surrender, and (ii)
        have
        a Fair Market Value on the date of surrender equal to, or more than, the
        Optionee's marginal tax rate times the amount of ordinary income recognized,
        or
        (d) by electing to have the Company withhold from the Shares to be issued
        upon
        exercise of the Option, if any, that number of Shares having a Fair Market
        Value
        equal to the amount required to be withheld. For this purpose, the Fair Market
        Value of the Shares to be withheld shall be determined on the date that the
        amount of tax to be withheld is to be determined (the "Tax
        Date").

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

      

      Any
        surrender by a Reporting Person of previously owned Shares to satisfy tax
        withholding obligations arising upon exercise of this Option must comply
        with
        the applicable provisions of Rule 16b-3 under the Exchange Act or any successor
        Rule.

      

      All
        elections by an Optionee to have Shares withheld to satisfy tax withholding
        obligations shall be made in writing in a form acceptable to the Administrator
        and shall be subject to the following restrictions:

      

      (a)  the
        election must be made on or prior to the applicable Tax Date;

      

      (b)  once
        made, the election shall be irrevocable as to the particular Shares of the
        Option as to which the election was made; and

      

      (c)  all
        elections shall be subject to the consent or disapproval of the
        Administrator.

      

      Section
        11. Adjustments
        upon Changes in Capitalization, Merger or Certain Other 

      Transactions.

      

      (a)  Change
        in Capitalization.
        Subject
        to any required action by the stockholders of the Company, the number of
        shares
        of Common Stock covered by each outstanding Option, and the number of shares
        of
        Common Stock that have been authorized for issuance under the Plan, but as
        to
        which no Options have yet been granted or that have been returned to the
        Plan
        upon cancellation or expiration of an Option, as well as the exercise price
        per
        share of Common Stock covered by each such outstanding Option, shall be
        proportionately adjusted for any increase or decrease in the number of issued
        shares of Common Stock resulting from a stock split, reverse stock split,
        stock
        dividend, combination, recapitalization or reclassification of the Common
        Stock,
        or any other increase or decrease in the number of issued shares of the Common
        Stock effected without receipt of consideration by the Company; provided,
        however, that conversion of any convertible securities of the Company shall
        not
        be deemed to have been "effected without receipt of consideration." Such
        adjustment shall be made by the Administrator, whose determination in that
        respect shall be final, binding and conclusive. Except as expressly provided
        herein, 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 or
        price
        of shares of Common Stock subject to an Option.

      

      (b)  Dissolution
        or Liquidation.
        In the
        event of the proposed dissolution or liquidation of the Company, the
        Administrator shall notify the Optionee at least 15 days prior to such proposed
        action. To the extent it has not been previously exercised, the Option will
        terminate immediately prior to the consummation of such proposed
        action.

      

      (c)  Merger
        or Sale of Assets.
        In the
        event of a proposed sale of all or substantially all of the Company's assets
        or
        a merger of the Company with or into another corporation where the successor
        corporation issues its securities to the Company's stockholders, each
        outstanding Option shall be assumed or an equivalent option shall be substituted
        by such successor corporation or a parent or subsidiary of such successor
        corporation, unless the successor corporation does not agree to assume the
        Option or to substitute an equivalent option, in which case such Option shall
        terminate upon the consummation of the merger or sale of assets. In the event
        the successor corporation does not assume the Option or substitute an equivalent
        option, the Administrator or the Board, in its sole discretion, may remove
        any
        restrictions on exercise of an Option or take whatever other action the
        Administrator or the Board deems appropriate.

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

      

      (d)  Change
        in Control.
        In the
        event of a Change in Control, or in the event that a Change in Control is
        anticipated, the Administrator or the Board, in its sole discretion, may
        permit
        immediate exercise of Options in their entirety not withstanding any limitations
        or restrictions in the applicable Option Agreements.

      

      (e)  Certain
        Distributions.
        In the
        event of any distribution to the Company's stockholders of securities of
        any
        other entity or other assets (other than dividends payable in cash or stock
        of
        the Company) without receipt of consideration by the Company, the Administrator
        may, in its discretion, appropriately adjust the price per share of Common
        Stock
        covered 

      by
        each
        outstanding Option to reflect the effect of such distribution.

      

      Section
        12. Non-Transferability
        of Options.
        Options
        may not be sold, pledged, assigned, hypothecated, transferred, or disposed
        of in
        any manner other than by will or by the laws of descent or distribution and
        may
        be exercised during the lifetime of the Optionee only by the Optionee.
        Notwithstanding anything in this Section 12 to the contrary, upon any exercise
        of the Option, the Optionee may request that the Shares issuable upon such
        exercise be issued in his or her name and jointly with, or solely to, a “family
        member” (as such term is defined in General Instructions A to Registration
        Statement on Form S-8 under the Securities Act) if the right to exercise
        the
        Option was transferred to such family member by gift or domestic relations
        order.

      

      Section
        13. Time
        of Granting Options.
        The
        date of grant of an Option shall, for all purposes, be either (a) the date
        on
        which the Administrator makes the determination granting such Option, or
        (b) the
        date on which the Optionee’s relationship with the Company or any Subsidiary
        commences (or the anniversary of such commencement date), whether pursuant
        to an
        employment or consulting agreement or otherwise, whichever of (a) or (b)
        the
        Administrator selects in the grant; provided, however, that in the case of
        any
        Incentive Stock Option, the date of grant shall be the later of (x) the date
        on
        which the Administrator makes the determination granting such Incentive Stock
        Option or (y) the date of commencement of the Optionee's employment relationship
        with the Company (or the anniversary thereof). Notice of the determination
        shall
        be given to each Employee or Consultant to whom an Option is so granted within
        a
        reasonable time after the date of such grant, which notice may be in the
        form of
        the Option Agreement.

      

      Section
        14. Amendment
        and Termination of the Plan.

      

      (a)  Authority
        to Amend or Terminate.
        The
        Board may at any time amend, alter, suspend or discontinue the Plan, but
        no
        amendment, alteration, suspension or discontinuation shall be made that would
        impair the rights of any Optionee under any grant of an Option theretofore
        made,
        without his or her consent. In addition, if the number of Shares that may
        be
        optioned and sold pursuant to Section 3 hereof is to be increased (other
        than
        pursuant to Section 11 hereof) or to the extent necessary and desirable to
        comply with Rule 16b-3 under the Securities Act or with Section 422 of the
        Code
        (or any other Applicable Laws) or with the requirements of any Stock Exchange
        or
        Nasdaq (if the Common Stock is listed or traded thereon), the Company shall
        obtain stockholders’ approval of any Plan amendment in such a manner and to such
        a degree as required.

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

      

      (b)  Effect
        of Amendment or Termination.
        No
        amendment or termination of the Plan shall adversely affect Options already
        granted, unless mutually agreed otherwise between the Optionee and the Board,
        which agreement must be in writing and signed by the Optionee and the
        Company.

      

      Section
        15. Conditions
        upon Issuance of Shares.
        Shares
        shall not be issued pursuant to the exercise of an Option unless the exercise
        of
        such Option and the issuance and delivery of such Shares pursuant thereto
        shall
        comply with all relevant provisions of law, including, without limitation,
        the
        Securities Act, the Exchange Act, the rules and regulations promulgated under
        the Securities Act or the Exchange Act, and, if applicable, the requirements
        of
        any Stock Exchange or Nasdaq.

      

      As
        a
        condition to the exercise of an Option, if the Shares to be issued upon exercise
        are not then registered under the Securities Act, the Company may require
        the
        person exercising such Option to represent and warrant at the time of any
        such
        exercise that the Shares are being purchased only for investment and without
        any
        present intention to sell or distribute such Shares if, in the opinion of
        counsel for the Company, such a representation is required by law.

      

      Section
        16. Reservation
        of Shares.
        The
        Company, during the term of this Plan, will at all times reserve and keep
        available such number of Shares as shall be sufficient to satisfy the
        requirements of the Plan. The inability of the Company to obtain authority
        from
        any regulatory body having jurisdiction, which authority is deemed by the
        Company's counsel to be necessary to the lawful issuance and sale of any
        Shares
        hereunder, shall relieve the Company of any liability in respect of the failure
        to issue or sell such Shares as to which such requisite authority shall not
        have
        been obtained.

      

      Section
        17. Option
        Agreements.
        Options
        shall be evidenced by written Option Agreements in such form(s) as the
        Administrator shall approve from time to time.

      

      Section
        18. Stockholders’
        Approval.
        Continuance of the Plan shall be subject to approval by the stockholders
        of the
        Company within 12 months after the date the Plan is adopted. Such stockholders’
approval shall be obtained in the degree and manner required under Applicable
        Laws and the rules or regulations of any Stock Exchange upon which the Common
        Stock is then listed or Nasdaq if the Common Stock is traded thereon. All
        Options issued under the Plan shall become void in the event such approval
        is
        not obtained.

      
        
           

        

        
          12EXECUTIVE EMPLOYMENT AGREEMENT

This Executive  Employment  Agreement  ("Agreement")  is made and effective this
March 07, 2005, by and between Science Dynamics Corporation  ("Company") and Joe
Noto ("Executive").

NOW, THEREFORE, the parties hereto agree as follows:

1.  Employment.
Company  hereby agrees to employ  Executive as its Vice President of Finance and
Administration  and Executive  hereby accepts such employment in accordance with
the terms of this  Agreement and the terms of  employment  applicable to regular
employees  of Company.  In the event of any  conflict or  ambiguity  between the
terms of this Agreement and terms of employment applicable to regular employees,
the terms of this Agreement shall control.

2.  Duties of Executive.
The duties of  Executive  shall  include  the  performance  of all of the duties
typical  of the  office  held by  Executive  as  described  in the bylaws of the
Company  and such other  duties and  projects  as may be  assigned  by the Chief
Executive  Officer of the Company.  Executive shall devote his entire productive
time, ability and attention to the business of the Company and shall perform all
duties in a professional,  ethical and businesslike manner.  Executive will not,
during the term of this  Agreement,  directly or indirectly  engage in any other
business,  either as an  employee,  employer,  consultant,  principal,  officer,
director,   advisor,   or  in  any  other  capacity,   either  with  or  without
compensation, without the prior written consent of Company.

3.  Compensation.
Executive will be paid compensation during this Agreement as follows:
A. A base salary of not less than one hundred thirty thousand dollars ($130,000)
per year,  payable in  installments  according to the Company's  regular payroll
schedule.  The  base  salary  shall  be  adjusted  at the  end of  each  year of
employment  at the  discretion  of  the  Chief  Executive  Officer.  Should  the
Executive be promoted to the position of Chief Financial Officer the base salary
will be adjusted to not less than one hundred fifty thousand dollars  ($150,000)
per year.

B. An  incentive  salary  equal to 20% of the  Executive  base  salary  based on
meeting predetermined company objectives.  The incentive salary payment shall be
made within thirty (30) days after the Company's independent accounting firm has
concluded its audit.

4. Benefits.
A. Holidays.  Executive will be entitled to at least Ten (10) paid holidays each
calendar year.  Company will notify  Executive on or about the beginning of each
calendar year with respect to the holiday schedule for the coming year. Personal
holidays,  if any,  will be  scheduled  in advance  subject to  requirements  of
Company.  Such  holidays  must be taken during the  calendar  year and cannot be
carried  forward  into the next year.  Executive is not entitled to any personal
holidays during the first three months of employment.

<PAGE>

B. Vacation. Following the first three months of employment,  Executive shall be
entitled to twenty (20) paid vacation days each year.

C. Sick Leave.  Executive  shall be entitled to sick leave and  emergency  leave
according to the regular  policies and  procedures of Company.  Additional  sick
leave or emergency  leave over and above paid leave provided by the Company,  if
any,  shall be unpaid  and shall be granted  at the  discretion  of the board of
directors.

D. Medical and Group Life Insurance.  Company agrees to include Executive in the
group medical and hospital  plan of Company and provide group life  insurance in
accordance with the Company's benefits plan.  Executive shall be responsible for
payment of any federal or state income tax imposed upon these benefits.

E. Pension and Profit Sharing Plans.  Executive shall be entitled to participate
in any pension or profit  sharing  plan or other type of plan adopted by Company
for the benefit of its officers and/or regular employees.

F. Expense  Reimbursement.  Executive shall be entitled to reimbursement for all
reasonable expenses,  including travel and entertainment,  incurred by Executive
in the performance of Executive's  duties.  Executive will maintain  records and
written  receipts as required by the Company policy and reasonably  requested by
the board of directors to substantiate such expenses.

5. Term and Termination.
A. The Initial Term of this Agreement  shall commence on February 1, 2005 and it
shall  continue  in  effect  for a period of Three (3)  years.  Thereafter,  the
Agreement  shall be renewed upon the mutual  agreement of Executive and Company.
This  Agreement  and  Executive's  employment  may be  terminated  at  Company's
discretion during the Initial Term, provided that Company shall pay to Executive
an amount equal to payment at Executive's base salary rate for a sum total equal
to 50% of annual base salary, payable in equal monthly installments for a period
of six (6) months. In the event of such termination,  Executive will receive all
previously  earned and  accrued  entitlements  and  benefits,  if any,  from the
Company,  including  any such  entitlements  and  benefits  under the  Company's
employee  benefit  plans,  policies  and  programs  (collectively,  the "Accrued
Benefits").

B. This  Agreement may be terminated by Executive at  Executive's  discretion by
providing  at least  thirty (30) days prior  written  notice to Company.  In the
event of  termination  by  Executive  pursuant to this  subsection,  Company may
immediately  relieve  Executive  of all duties and  immediately  terminate  this
Agreement, provided that Company shall pay Executive at the then applicable base
salary rate to the termination date included in Executive's original termination
notice.

<PAGE>

C. In the event that  Executive  is in breach of any  material  obligation  owed
Company in this Agreement,  habitually neglects the duties to be performed under
this  Agreement,  engages  in  any  conduct  which  is  dishonest,  damages  the
reputation  or standing of the  Company,  or is convicted of any criminal act or
engages in any act of moral turpitude, then Company may terminate this Agreement
upon five (5) days notice to Executive. In event of termination of the agreement
pursuant to this subsection, Executive shall be paid only at the then applicable
base salary rate up to and including the date of  termination.  Executive  shall
not be paid any incentive  salary  payments or other  compensation,  prorated or
otherwise.

D. In the event Company is acquired,  or is the non-surviving party in a merger,
or sells all or  substantially  all of its assets,  this Agreement  shall not be
terminated  and  Company  agrees  to use its best  efforts  to  ensure  that the
transferee or surviving company is bound by the provisions of this Agreement.

6. Notices.
Any notice  required by this Agreement or given in connection  with it, shall be
in writing and shall be given to the appropriate  party by personal  delivery or
by certified mail, postage prepaid, or recognized overnight delivery services;

If to Company:
Science Dynamics Corporation
7150 N Park Drive
Pennsauken, NJ 08109

If to Executive:
Joe Noto
Blank

7.  Final Agreement.
This Agreement  terminates and supersedes all prior understandings or agreements
on the subject matter  hereof.  This Agreement may be modified only by a further
writing that is duly executed by both parties.

8.  Governing Law.
This  Agreement  shall be construed and enforced in accordance  with the laws of
the state of New Jersey.

<PAGE>

9.  Headings.
Headings used in this Agreement are provided for convenience  only and shall not
be used to construe meaning or intent.

10.  No Assignment.
Neither this  Agreement nor any or interest in this Agreement may be assigned by
Executive  without the prior express written  approval of Company,  which may be
withheld by Company at Company's absolute discretion.

11.  Severability.
If any term of this Agreement is held by a court of competent jurisdiction to be
invalid or  unenforceable,  then this Agreement,  including all of the remaining
terms,  will remain in full force and effect as if such invalid or unenforceable
term had never been included.

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

Science Dynamics Corporation

By: /s/ Paul Burgess                             /s/ Joe Noto
    -------------------------------------        -------------------------------
    Paul Burgess                                Joe Noto
    President and Chief Executive Officer
    Science Dynamics Corp.

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