Document:

ex10_2.htm

    
      

    

    Exhibit
      10.2

     

    STILLWATER
      MINING COMPANY

    

    2008
      RESTRICTED STOCK UNIT AGREEMENT

    

    

    Name
      of Employee:    Greg R.
      Struble

    

    
      	
              Number
                of Units:       16,741

            	
              Grant
                Date:  February 4,
                2008

            

    

    

    

    THIS RESTRICTED
      STOCK UNIT
      AGREEMENT (the
“Agreement”)
      is made by and between STILLWATER MINING COMPANY, a corporation organized and
      existing under the laws of the State of Delaware (the “Company”),
      and the employee named above (the “Employee”),
      as of the date designated above (the “Grant
      Date”).  This Agreement provides notice of the terms and
      conditions applicable to a grant of restricted stock units (“RSUs”)
      made under the Company’s 2004 Equity Incentive Plan, as amended May 3, 2007 (the
“Plan”).  By
      execution below, Employee agrees to be bound by the terms and conditions
      described herein and the provisions of the Plan.

    

    1.           
      Grant of Restricted Stock
      Units.  As of the Grant Date, the Board of Directors of the
      Company (the “Board”)
      hereby grants to Employee 16,741 RSUs, each RSU corresponding to one share
      of
      the Company’s common stock, par value $0.01 per share (the “Common
      Stock”).  Each RSU constitutes an unsecured promise of the
      Company to pay the amounts contemplated herein, and Employee as a holder of
      any
      RSUs has only the rights of a general unsecured creditor of the
      Company.

    

    2.           
      Vesting Schedule. 
Subject to the provisions
      of this Agreement, the RSUs shall vest 100% on the
      third anniversary of the Grant Date (the “Vesting
      Date”).  Any RSUs not vested shall be forfeited if Employee’s
      employment with the Company terminates prior to the Vesting Date, except as
      provided in Section 5 below or as otherwise determined by the Company consistent
      with the Plan.

    

    3.           
      Settlement of
      RSUs.

    

    (a)           
      Unless otherwise deferred in accordance with an Employee’s duly executed
      deferral form (to be executed no later than 30 days after the Grant Date),
      or
      delayed for purposes of complying with Section 409A of the Internal Revenue
      Code, as amended from time to time (the “Code”)
      Shares corresponding to the number of RSUs shall be delivered to Employee by
      the
      Company on the Vesting Date, provided that fractional shares (if any) may be
      settled by the Company in cash.  Any elective deferral shall be
      subject to Section 409A of the Code (“Section
      409A”), and the terms of the RSU and deferral shall conform to the
      requirements thereunder in all respects.  If an election to defer does
      not meet the requirements of Section 409A, it shall be ineffective hereunder
      and
      shall be disregarded.

    

    (b)           
      In the event that the Company declares a dividend on the common stock while
      Employee holds RSUs, the Company shall pay to Employee in respect of each RSU
      an
      amount in cash, Stock, or other property (or in combination), in each case
      having a value equal to the fair market value of such dividend on the dividend
      payment date (the “Dividend
      Equivalents”).  Unless otherwise determined by the Board, such
      payment will be in cash.  Dividend Equivalents relating to ordinary
      dividends will be non-forfeitable, and Dividend Equivalents relating to
      extraordinary dividends will be forfeitable on the same terms as apply to the
      underlying RSUs.

    

    
      
        
          
          

        

        
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    4.           
      Termination.

    

    (a)           
      If Employee’s employment with the Company or any of its Affiliates is terminated
      upon Employee’s death or Disability, by the Company without Cause, or by
      Employee for Good Reason, all restrictions applicable to any RSUs held by
      Employee which have not yet lapsed shall immediately lapse and the shares
      corresponding in number to such Vested RSUs shall be delivered to Employee
      by
      the Company within 10 days of the date of termination of Employee’s employment
      (“Termination
      Date”).

    

    (b)           
      Unless otherwise determined by the Board in its sole and absolute discretion,
      if
      Employee’s employment with the Company or any of its Affiliates is terminated
      for any reason other than as specified in Section 4(a) above, all unvested
      RSUs
      shall be immediately forfeited and any right to receive settlement in shares
      for
      such RSUs shall be canceled by the Company as of the Termination
      Date.

    

    5.           
      Change in
      Control.  Provided that the RSUs granted hereunder have not
      otherwise been forfeited or cancelled, upon the occurrence of a Change in
      Control (as defined in Exhibit 1), all such RSUs shall be considered vested
      and
      shall be settled in accordance with the terms and conditions of this Agreement,
      as specified in Section 4(a) above, subject to compliance with Section 409A,
      as
      specified in Section 7 below.

    

    6.           
      No Assignment of
      RSUs.   Except to the extent otherwise determined by the
      Company, no RSUs shall be assignable or otherwise transferable by Employee
      other
      than by will or by the laws of descent and distribution and, unless otherwise
      provided by the Company, during Employee’s life, any elections with respect to
      RSUs may be made only by Employee or Employee’s guardian or legal
      representative.

    

    7.           
      Compliance with Code Section
      409A.  All payments of shares provided for in this Agreement
      shall be subject to this Section 7. Notwithstanding anything contained in this
      Agreement to the contrary, to the extent that the Company determines, in its
      sole discretion, that any delivery of shares with respect to Vested RSUs would
      be subject to the additional “excise” tax imposed under Section 409A(a)(1)(B) of
      the Code or a successor or comparable provision, the delivery of such shares
      shall be delayed until the earlier of (i) the date that is six (6) months
      following the termination of Employee’s employment with the Company (“6-Month
      Waiting
      Period”), or (ii) the date of Employee’s death (such date referred to
      herein as the “Distribution
      Date”), provided
      that, if at
      such time Employee is a “specified
      employee” of the Company (as defined in Treasury Regulation Section
      1.409A-1(i)) and if amounts payable under this Agreement are in connection
      with
      an “involuntary
      separation from service” (as defined in Treasury Regulation Section
      1.409A-1(m)), Employee shall receive shares during the 6-Month Waiting Period,
      equal to the lesser of (x) the number of shares corresponding to Vested RSUs
      deliverable to Employee hereunder, or (y) two times the compensation limit
      then
      in effect under Code Section 401(a)(17) for the calendar year in which the
      Termination Date occurs (with any shares otherwise deliverable but delayed
      pursuant to this section to be delivered to Employee immediately upon expiration
      of the 6-Month Waiting Period.  Shares delivered in settlement of RSUs
      shall not be deemed to be a “deferral of compensation” subject to Section 409A
      to the extent such delivery satisfies the exceptions in Treasury Regulation
      Sections 1.409A-1(b)(4)(“short-term
      deferrals”) and (b)(9) (“separation
      pay
      plans”, including the exception under subparagraph (iii)) and other
      applicable provisions of Treasury Regulation Section 1.409A-1 through
      A-6.

    

    
      
        
          
          

        

        
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    8.           
      Adjustment.  Prior
      to settlement, the aggregate number of RSUs granted hereunder shall be subject
      to adjustment due to any stock split, stock dividend or other form of
      recapitalization by the Company.

    

    9.           
      Amendment and
      Modification.  The terms and conditions set forth herein may be
      amended only in writing signed by both Employee and an authorized member of
      the
      Company.

    

    10.           
      Successors and
      Assigns.  This Agreement shall be binding upon and shall inure
      to the benefit of Employee and the Company, including their respective heirs,
      executors, administrators, successors and assigns.

    

    11.           
      Employment
      Rights.  Neither this Agreement nor the grant of RSUs hereunder
      shall be deemed to confer on Employee any right to continue in the employ of
      the
      Company or any Affiliate or to interfere, in any manner, with the right of
      the
      Company (or an Affiliate) to terminate employment, whether with or without
      Cause, in its sole discretion, subject to the terms of any separate agreement
      between Employee and the Company.

    

    12.           
      Plan and Available
      Information.  The RSUs granted hereunder shall be subject to
      such additional terms and conditions as may be imposed under the terms of the
      Plan, a copy of which has been furnished with this grant.  If any
      conflict exists between this Agreement and the Plan, the Plan shall
      prevail.

    

    13.           
      Counterparts.  This
      Agreement may be executed in any number of counterparts, each of which shall
      be
      deemed an original, but all of which together shall constitute one and the
      same
      instrument.

    

    14.           
      Governing
      Law.  The validity, construction, and effect of all rules and
      regulations applicable to this award shall be determined in accordance with
      the
      laws of the State of Delaware and applicable Federal law.

    

    15.           
      Withholding Tax. 
The Company and any
      Affiliate may deduct from any payment to be made to Employee
      any amount that federal, state, local or foreign tax law requires to be withheld
      with respect to the grant of RSUs or delivery of shares of the Company’s common
      stock in settlement of such obligation hereunder.  At the Board’s
      election, the Company may withhold from the number of shares of common stock
      to
      be delivered in satisfaction of vested RSUs a number of whole shares up to
      but
      not exceeding that number which has a fair market value nearest but not
      exceeding the amount of taxes required to be withheld with respect to such
      expiration of restrictions.

    

    
      	 	
              STILLWATER
                MINING COMPANY

            
	 	 	 	 
	 	
              By:

            	
              
                /s/
                  Francis R. McAllister

              

            
	 	 	
              Francis
                R. McAllister

            
	 	 	
              Chairman
                and Chief Executive Officer

            
	 	 	 
	 	
              Date:

            	
              2/6/2008

            
	 	 	 
	 	
              EMPLOYEE

            
	 	 
	 	
              
                /s/
                  Greg R. Struble

              

            
	 	
              Greg
                R. Struble

            	
              Date

            

    

    

    
      
        
          
          

        

        
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    Exhibit
      1

    

    Definitions

    

    “Affiliate”
means
      any person,
      partnership, joint venture, corporation or other form of enterprise, domestic
      or
      foreign, including but not limited to subsidiaries, that directly or indirectly,
      control, are controlled by, or are under common control with a
      party.

     

    “Cause”
      means a termination of
      Employee’s employment by the Company based upon a determination that any one or
      more of the following has occurred: (1) misfeasance or nonfeasance of duty
      by Employee that which was intended to or does injure the reputation of Company
      or its business or relationships; (2) conviction of, or plea of guilty or nolo contendere by Employee
      to, any felony or crime involving moral turpitude; (3) Employee’s willful and
      continued failure to substantially perform his duties under the terms of his
      employment (except by reason of physical or mental incapacity) after written
      notice from the Board and 15 days to cure such failure; (4) dishonesty by
      Employee in performance of his duties under the terms of his employment; or
      (5)
      willful and material breach of the restrictive covenants contained in this
      Agreement; provided
      however, that definitions (3) through (5) shall not provide Cause for
      termination if such termination occurs within two (2) years following a Change
      in Control.  A termination of Employee’s employment by the Company for
      any other reason will be a termination without “Cause.”

     

    “Change
      in Control” means and
      shall be deemed to have occurred if any of the following events shall have
      occurred:

     

    (1)           
      Any “person” (as such term is used in Sections 13(d) and 14(d) of the
      Securities Exchange Act of 1934, as amended (the “Exchange Act”)) becomes the
“beneficial owner” (as defined in Rule 13d-3 under the Exchange Act),
      directly or indirectly, of securities of the Company (not including in the
      securities beneficially owned by such person any securities acquired directly
      from the Company or its Affiliates) representing thirty percent (30%) or more
      of
      the combined voting power of the Company’s then outstanding voting securities,
      excluding any person who becomes such a beneficial owner in connection with
      a
      transaction described in clause (i) of subsection (3) below; or

     

    (2)           
      A change in the composition of the Board occurring within a two-year period,
      as
      a result of which fewer than a majority of the directors are Incumbent
      Directors. “Incumbent Directors” shall mean directors who either (i) are
      directors of the Company as of the date hereof, or (ii) are elected, or
      nominated for election, to the Board with the affirmative votes of at least
      two-thirds (2/3) of the Incumbent Directors at the time of such election or
      nomination (but shall not include an individual whose election or nomination
      is
      in connection with an actual or threatened election or proxy contest, including
      but not limited to a consent solicitation relating to the election of directors
      to the Company); or

     

    (3)           
      The consummation of a merger or consolidation of the Company or any Affiliate
      with any other corporation, other than (i) a merger or consolidation which
      would
      result in the voting securities of the Company outstanding immediately prior
      thereto continuing to represent (either by remaining outstanding or by being
      converted into voting securities of the surviving entity or any parent thereof)
      at least fifty-five percent (55%) of the combined voting power of the voting
      securities of the Company or such surviving entity or any parent thereof
      outstanding immediately after such merger or consolidation, or (ii) a merger
      or
      consolidation effected to implement a recapitalization of the Company (or
      similar transaction) in which no person is or becomes the beneficial owner,
      directly or indirectly, of securities of the Company (not including in the
      securities beneficially owned by such person any securities acquired directly
      from the Company or its Affiliates) representing thirty percent (30%) or more
      of
      the combined voting power of the Company’s then outstanding securities;
      or

    

    
      
        
          
          

        

        
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    (4)           
      The consummation of a stockholder-approved sale, transfer, or other disposition
      by the Company of all or substantially all of the Company’s assets in complete
      liquidation or dissolution of the Company, other than a sale, transfer, or
      other
      disposition by the Company of all or substantially all of the Company’s assets
      to an entity, at least sixty percent (60%) of the combined voting power of
      the
      voting securities of which are owned by stockholders of the Company in
      substantially the same proportions as their ownership of the Company immediately
      prior to such sale.

     

    (5)           
      Notwithstanding the foregoing subsections (1) through (4), a Change in Control
      shall not be deemed to have occurred by virtue of the consummation of any
      transaction or series of integrated transactions immediately following which
      the
      record holders of the common stock of the Company immediately prior to such
      transaction or series of transactions continue to have substantially the same
      proportionate ownership in an entity which owns all or substantially all of
      the
      assets of the Company immediately following such transaction or series of
      transactions.

     

    “Disability”
      means a
      termination of Employee’s employment by the Board because physical or mental
      incapacity has rendered or will render Employee unable to perform his duties
      for
      a period of 180 consecutive days.  The determination regarding the
      existence and expected or actual duration of such incapacity shall be made
      by a
      health professional mutually acceptable to the Company and
      Employee.  The Company shall provide 30 days written notice of a
      termination due to Disability, or payment in lieu thereof.

     

    “Good
      Reason” means a
      termination of Employee's employment at his initiative following the occurrence,
      without Employee's written consent, of one or more of the following events
      (except as a result of a prior termination):

     

    (1)           
      a material diminution or change, adverse to Employee, in Employee's positions,
      titles, or offices, or status, rank, nature of responsibilities, or authority
      within the Company, or a removal of Employee from or any failure to elect or
      re-elect or, as the case may be, nominate Employee to any such positions or
      offices, including as a member of the Board;

     

    (2)           
      the assignment to Employee of any duties that are inconsistent with his status
      in his then current position or other positions held at the relevant
      time;

     

    (3)           
      a decrease in Employee’s annual Base Salary or Target Bonus award opportunity
      (other than an across-the-board reduction on a percentage basis for all other
      similarly situated employees);

     

    (4)           
      a material reduction in the aggregate benefits for which Employee is eligible
      under the Company’s benefit plans (other than an across-the-board reduction in
      the aggregate benefits for all other similarly situated employees);

     

    (5)           
      any other failure by the Company to perform any material obligation under,
      or
      breach by the Company of any material provision of, the terms of Employee’s
      employment that is not cured within 10 business days of receipt of written
      notice from Employee;

    

    
      
        
          
          

        

        
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    (6)           
      upon relocation of Employee outside of the State of Montana;

     

    (7)           
      any failure to secure the agreement of any successor corporation or other entity
      to the Company to fully assume the Company's obligations under any written
      employment agreement between Employee and the Company; or

     

    (8)           
      the Company and its successor(s) shall discontinue the business of the
      Company.

     

    “Target
      Bonus” shall have the
      meaning ascribed to it in Employee’s employment agreement or as otherwise
      determined by the Board.

     

     

    Page
      6 of 6ex4_1.htm

    
      

    

    Exhibit
      4.1

    

    

    HIGH
      VELOCITY ALTERNATIVE ENERGY
      CORP.

    

    2008EMPLOYEE ANDCONSULTANTSTOCK
      INCENTIVE PLAN

    

    AS
      ADOPTED January 16, 2008

    

    

    
      	
              1.

            	
              PURPOSE.

            

    

    

    The
      purpose of this Plan is to provide
      incentives to attract, retain and motivate eligible persons and consultants whose
      present and potential
      contributions are important to the success of the Company, its Parent and
      Subsidiaries, by offering them an opportunity to participate in the Company's
      future performance through awards of Options, Restricted Stock and Stock
      Bonuses. Capitalized terms not defined in the text are defined in Section
      2.

    

    
      	
              2.

            	
              DEFINITIONS.

            

    

    

    As
      used in this Plan, the following
      terms will have the following meanings:

    

    "AWARD"
      means any award under this Plan,
      including any Option, Restricted
      Stock or Stock
      Bonus.

    

    "AWARD
      AGREEMENT" means, with respect to
      each Award, the signed written agreement between the Company and the Participant
      setting forth the terms and conditions of the Award.

    

    "BOARD"
      means the Board of Directors of
      the Company.

    

    "CAUSE"
      means any cause, as defined by
      applicable law, for the termination
      of a Participant's
      employment with the Company or a Parent or Subsidiary of the
      Company.

    

    "CODE"
      means the Internal Revenue Code
      of 1986, as amended.

    

    "COMPANY"
      means High Velocity
      Alternative Energy Corp., a Nevadacorporation,
      or any successor
      corporation.

    

    “DEBT
      OBLIGATION” means any obligation
      of the Company to a Participant (including an Insider) for services rendered
      to
      the Company.

    

    "DISABILITY"
      means a disability, whether
      temporary or permanent, partial or total, as determined by the
      Board.

    

    "EXCHANGE
      ACT" means the Securities
      Exchange Act of 1934, as amended.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “EXCHANGE
      PRICE” means the price at which Shares are exchanged with holders of Debt
      Obligations.

    

    "EXERCISE
      PRICE" means the price at
      which a holder of an Option may purchase the Shares issuable upon exercise
      of
      the Option.

    

    "FAIRMARKET
      VALUE" means, as of any date, the
      value of a share of the Company's Common Stock determined as
      follows:

    

    
      
        	
              	
                (a)

              	
                   if
                  such Common Stock
                  is publicly traded and is then listed on a national securities
                  exchange,
                  its closing price on the date of determination on the principal
                  national
                  securities exchange on which the Common Stock is listed or admitted
                  to
                  trading as reported in The
                  Wall Street
                  Journal;

              

      

    

    

    
      
        	
              	
                (b)

              	
                   if
                  such Common Stock
                  is quoted on the NASDAQ National
                  Market, its closing price
                  on the NASDAQ
                  National Market on the date
                  of determination
                  as reported in The
                  Wall Street Journal;

              

      

    

    

    
      	
               

            	
              (c)

            	
                 if
                such Common Stock
                is publicly traded but is
                not listed or admitted to
                trading on a national
                securities exchange, the
                average of the
                closing bid and asked prices
                on the date of determination
                as reported by
                Bloomberg, L.P.;

            

    

    

    
      	
               

            	
              (d)

            	
                 in
                the case of an
                Award made on the Effective
                Date, the price per
                share at which shares
                of the Company's Common
                Stock are initially
                offered for sale to the
                public by the Company's
                underwriters in the
                initial public offering
                of the Company's Common
                Stock pursuant to
                a registration statement filed
                with the SEC under
                the Securities Act;
                or

            

    

    

    
      	
               

            	
              (e)

            	
                 if
                none of the
                foregoing is applicable, by the
                Board in good
                faith.

            

    

    

    "INSIDER"
      means an officer or director
      of the Company or any other person whose transactions in the Company's Common
      Stock are subject to Section 16 of the Exchange Act.

    

    "OPTION"
      means an award of an option to
      purchase Shares pursuant to Section 6.

    

    "PARENT"
      means any corporation (other
      than the Company) in an unbroken chain of corporations ending with the Company
      if each of such corporations other than the Company owns stock possessing 50%
      or
      more of the total combined voting power of all classes of stock in one of the
      other corporations in such chain.

    

    "PARTICIPANT"
      means a person who
      receives an Award under this Plan.

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    "PERFORMANCE
      FACTORS" means the factors
      selected by the Board, in its sole and absolute discretion, from among the
      following measures to determine whether the performance goals applicable to
      Awards have been satisfied:

    

    
      	
               

            	
              (a)

            	
                 Net
                revenue and/or
                net revenue growth;

            

    

    

    
      	
               

            	
              (b)

            	
                 Earnings
                before
                income taxes and amortization
                and/or earnings
                before income taxes
                and amortization
                growth;

            

    

    

    
      	
               

            	
              (c)

            	
                 Operating
                income
                and/or operating income growth;

            

    

    

    
      	
               

            	
              (d)

            	
                 Net
                income and/or net
                income growth;

            

    

    

    
      	
               

            	
              (e)

            	
                 Earnings
                per share
                and/or earnings per share growth;

            

    

    

    
      	
               

            	
              (f)

            	
                 Total
                stockholder
                return and/or total stockholder
                return
                growth;

            

    

    

    
      	
               

            	
              (g)

            	
                 Return
                on
                equity;

            

    

    

    
      	
               

            	
              (h)

            	
                 Operating
                cash flow
                return on income;

            

    

    

    
      	
               

            	
              (i)

            	
                 Adjusted
                operating
                cash flow return on income;

            

    

    

    
      	
               

            	
              (j)

            	
                 Economic
                value added;
                and

            

    

    

    
      	
               

            	
              (k)

            	
                 Individual
                confidential business
                objectives.

            

    

    

    "PERFORMANCE
      PERIOD" means the period of
      service determined by the Board, not to exceed five years, during which years
      of
      service or performance is to be measured for Restricted Stock Awards or Stock
      Bonuses.

    

    "PLAN"
      means this High Velocity
      Alternative Energy
      Corp. 2008Employee
and
      Consultant Stock Incentive Plan,
      as amended from
      time to time.

    

    "RESTRICTED
      STOCK AWARD" means an award
      of Shares pursuant to Section 7.

    

    "SEC"
      means the Securities and Exchange
      Commission.

    

    "SECURITIES
      ACT" means the Securities
      Act of 1933, as amended.

    

    "SHARES"
      means shares of the Company's
      Common Stock reserved for issuance under this Plan, as adjusted pursuant to
      Sections 3 and 19, and any successor security.

    

    "STOCK
      BONUS" means an award of Shares,
      or cash in lieu of Shares, pursuant to Section 8.

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    "SUBSIDIARY"
      means any corporation
      (other than the Company) in an unbroken chain of corporations beginning with
      the
      Company if each of the corporations other than the last corporation in the
      unbroken chain owns stock possessing 50% or more of the total combined voting
      power of all classes of stock in one of the other corporations in such
      chain.

    

    "TERMINATION"
      or "TERMINATED" means, for
      purposes of this Plan with respect to a Participant, that the Participant has
      for any reason ceased to provide services as an employee, officer, director,
      consultant, independent contractor, or advisor to the Company or a Parent or
      Subsidiary of the Company. An employee will not be deemed to have ceased to
      provide services in the case of (i) sick leave, (ii) military leave, or (iii)
      any other leave of absence approved by the Company, 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 a formal policy adopted from time to
      time
      by the Company and issued and promulgated to employees in writing. In the case
      of any employee on an approved leave of absence, the Board may make such
      provisions respecting suspension of vesting of the Award while on leave from
      the
      employ of the Company or a Subsidiary as it may deem appropriate, except that
      in
      no event may an Option be exercised after the expiration of the term set forth
      in the Option agreement. The Board will have sole discretion to determine
      whether a Participant has ceased to provide services and the effective date
      on
      which the Participant ceased to provide services (the "TERMINATION
      DATE").

    

    "UNVESTED
      SHARES" means "Unvested
      Shares" as defined in the Award Agreement.

    

    "VESTED
      SHARES" means "Vested Shares" as
      defined in the Award  Agreement.

    

    
      	
              3.

            	
              SHARES
                SUBJECT TO THE
                PLAN.

            

    

    

    3.1
      NUMBER OF SHARES AVAILABLE. Subject
      to Sections 3.2 and 19, the total aggregate number of Shares reserved and
      available for grant and issuance pursuant tothis Plan will be 6,000,000plus
      Shares that are subject to: (a)
      issuance upon exercise of an Option but cease to be subject to such Option
      for
      any reason other than exercise of such Option; (b) an Award granted hereunder
      but forfeited or repurchased by the Company at the original issue price; and
      (c)
      an Award that otherwise terminates without Shares being issued. At all times
      the
      Company shall reserve and keep available a sufficient number of Shares as shall
      be required to satisfy the requirements of all outstanding Options granted
      under
      this Plan and all other outstanding but unvested Awards granted under this
      Plan.

    

    3.2
      ADJUSTMENT OF SHARES. In the event
      that the number of outstanding shares is changed by a stock dividend,
      recapitalization, stock split, reverse stock split, subdivision, combination,
      reclassification or similar change in the capital structure of the Company
      without consideration, then (a) the number of Shares reserved for issuance
      under
      this Plan, (b) the Exercise Prices of and number of Shares subject to
      outstanding Options, and (c) the number of Shares  subject
      to other outstanding Awards will
      be proportionately adjusted, subject to any required action by the Board or
      the
      stockholders of the Company and compliance with applicable securities laws;
      provided, however, that fractions of a Share will not be issued but will either
      be replaced by a cash payment equal to the Fair Market Value of such fraction
      of
      a Share or will be rounded up to the nearest whole Share, as determined by
      the
      Board.

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    3.3   LIMITATION
      ON TOTAL NUMBER OF SHARES ISSUABLE UNDER THE PLAN.  In order to
      comply with the California Code of Regulations, the Company will insure that
      at
      no time shall the total number of Shares issuable under this Plan and upon
      the
      exercise of all outstanding options and the total number of shares provided
      for
      under this Plan and any other Company plan or agreement of the Company exceed
      the applicable percentage as calculated in accordance with the conditions and
      exclusions of regulation 260.140.45 of Rules of the California Corporations
      Commissioner.

    

    
      	
              4.

            	
              ELIGIBILITY.

            

    

    

    ISOs
      (as defined in Section 6 below) may
      be granted only to employees (including officers and directors who are also
      employees) of the Company or of a Parent or Subsidiary of the Company. All
      other
      Awards may be granted to employees, officers, directors, consultants,
      independent contractors and advisors of the Company or any Parent or Subsidiary
      of the Company; provided such consultants, contractors and advisors render
      bona
      fide services not in connection with the offer and sale of securities in a
      capital-raising transaction.

    

    
      	
              5.

            	
              ADMINISTRATION.

            

    

    

    5.1
      BOARD AUTHORITY. This Plan will be
      administered by the Board. Subject to the general purposes, terms and conditions
      of this Plan, the Board will have full power to implement and carry out this
      Plan. Without limitation, the Board will have the authority
      to:

    

    
      	
               

            	
              (a)

            	
                 construe
                and
                interpret this Plan, any Award Agreement
                and any other agreement
                or document executed
                pursuant to this
                Plan;

            

    

    

    
      	
               

            	
              (b)

            	
                 prescribe,
                amend and
                rescind rules and regulations
                relating to this Plan
                or any Award;

            

    

    

    
      	
               

            	
              (c)

            	
                 select
                persons to
                receive Awards;

            

    

    

    
      	
               

            	
              (d)

            	
                 determine
                the form
                and terms of Awards;

            

    

    

    
      	
               

            	
              (e)

            	
                 determine
                the number
                of Shares or other consideration
                subject to
                Awards;

            

    

    

    
      	
               

            	
              (f)

            	
                 determine
                whether
                Awards will be granted singly,
                in combination with, in
                tandem with, in replacement
                of, or as alternatives
                to, other Awards
                under this Plan or any
                other incentive or
                compensation plan of the
                Company or any Parent
                or Subsidiary of the
                Company;

            

    

    

    
      	
               

            	
              (g)

            	
                 grant
                waivers of Plan
                or Award conditions;

            

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    
      	
               

            	
              (h)

            	
                 determine
                the
                vesting, ability to exercise and
                payment of
                Awards;

            

    

    

    
      	
               

            	
              (i)

            	
                 correct
                any defect,
                supply any omission or reconcile
                any inconsistency in
                this Plan, any Award
                or any Award
                Agreement;

            

    

    

    
      	
               

            	
              (j)

            	
                 determine
                whether an
                Award has been earned;

            

    

    

    
      	
               

            	
                 and

            

    

    

    
      	
               

            	
              (k)

            	
                 make
                all other
                determinations necessary or advisable
                for the administration
                of this Plan.

            

    

    

    

    5.2
      BOARD DISCRETION. Any determination
      made by the Board with respect to any Award will be made at the time of grant
      of
      the Award or, unless in contravention of any express term of this Plan or Award,
      at any later time, and such determination will be final and binding on the
      Company and on all persons having an interest in any Award under this Plan.
      The
      Board may delegate to one or more officers of the Company the authority to
      grant
      an Award under this Plan to Participants who are not Insiders of the
      Company.

    

    
      	
              6.

            	
              OPTIONS.

            

    

    

    The
      Board may grant Options to eligible
      persons and will determine whether such Options will be Incentive Stock Options
      within the meaning of the Code ("ISO")
      or Nonqualified Stock Options
      ("NQSOS"), the number of Shares subject to the Option, the Exercise Price of
      the
      Option, the period during which the Option may be exercised, and all other
      terms
      and conditions of the Option, subject to the following:

    

    6.1
      FORM OF OPTION GRANT.
      Each Option granted under this Plan
      will be evidenced by an Award Agreement that will expressly identify the Option
      as an ISOor
      an NQSO (hereinafter referred to as
      the "STOCK OPTION AGREEMENT"), and will be in such form and contain such
      provisions (which need not be the same for each Participant) as the Board may
      from time to time approve, and which will comply with and be subject to the
      terms and conditions of this Plan.

    

    6.2
      DATE OF GRANT.
      The date of grant of an Option will be
      the date on which the Board makes the determination to grant such Option, unless
      otherwise specified by the Board. The Stock Option Agreement and a copy of
      this
      Plan will be delivered to the Participant within a reasonable time after the
      granting of the Option.

    

    6.3
      EXERCISE PERIOD. Options may be
      exercisable within the times or upon the events determined by the Board as
      set
      forth in the Stock Option Agreement governing such Option; provided, however,
      that no Option will be exercisable after the expiration of ten (10) years from
      the date the Option is granted; and provided further that no ISOgranted
      to a person who directly or
      byattribution
      owns more than ten percent
      (10%) of the total combined voting power of all classes of stock of the Company
      or of any Parent or Subsidiary of the Company ("TENPERCENT
      STOCKHOLDER") will be
      exercisable after the expiration of five
      (5) years from the date the
ISOis
      granted. The Board also may provide
      for Options to become exercisable at one time or from time to time, periodically
      or otherwise, in such number of Shares or percentage of Shares as the Board
      determines. All Options granted hereunder shall grant the Participants the
      right
      to exercise their Options at the rate of at least 20% per year for five years,
      subject to the continued employment of the Participant by the
      Company.

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    6.4
      EXERCISE PRICE. The Exercise Price
      of an Option will be determined by the Board when the Option is granted and
      may
      be not less than 85% of the Fair Market Value of the Shares on the date of
      grant; provided that: (a) the Exercise Price of an ISOwill
      be not less than 100% of the Fair
      Market Value of the Shares on the date of grant; and (b) the Exercise Price
      of
      any ISOgranted
      to a Ten Percent Stockholder
      will not be less than 110% of the Fair Market Value of the Shares on the date
      of
      grant. Payment for the Shares purchased may be made in accordance
      with Section 9 of this
      Plan.

    

    6.5
      METHOD OF EXERCISE. Options may be
      exercised only by delivery to the Company of a written stockoption exercise agreement
      ("EXERCISE AGREEMENT")
      in a form approved
      by the Board, (which need not be the same for each Participant), stating the
      number of Shares being purchased, the restrictions imposed on the Shares
      purchased under such Exercise Agreement, if any, and such representations and
      agreements regarding Participant's investment intent and access to information
      and other matters, if any, as may be required or desirable by the Company to
      comply with applicable securities laws, together with
      payment in full of the Exercise
      Price for the number of Shares being purchased.

    

    6.6
      TERMINATION. Notwithstanding the
      exercise periods set forth in the Stock Option Agreement, exercise of an Option
      will always be subject to the following:

    

    (a)
      If the Participant's service is
      Terminated for any reason except death or Disability, then the Participant
      may
      exercise such Participant's Options only to the extent that such Options would
      have been exercisable upon the Termination Date no later than three (3) months
      after the Termination Date(or such shorter or longer time period not exceeding
      five (5) years as may be determined by the Board, with any exercise beyond
      three
      (3) months after the Termination Date deemed to be an NQSO), but in any event,
      no later than the expiration date of the Options.

    

    (b)
      If the Participant's service is
      Terminated because of Participant's death or Disability (or the Participant
      dies
      within three (3) months after a Termination other than for Cause or because
      of
      Participant's Disability), then Participant's Options may be exercised only
      to
      the extent that such Options would have been exercisable by Participant on
      the
      Termination Date and must be exercised by Participant (or Participant's legal
      representative or authorized assignee) no later than twelve (12) months after
      the Termination Date (or
      such shorter or longer time period
      not exceeding five (5) years as may be determined by the Board, with any such
      exercise beyond (i) three (3) months after the Termination Date when the
      Termination is for any reason other than the Participant's death or Disability,
      or (ii) twelve (12) months after the Termination Date when the Termination
      is
      for Participant's death or Disability, deemed to be an NQSO), but in any event
      no later than the expiration date of the Options.

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    (c)
      Notwithstanding the provisions in
      paragraph 6.6(a) above, if a Participant's service is Terminated for Cause,
      neither the Participant, the Participant's estate nor such other person who
      may
      then hold the Option shall be entitled to exercise any Option with respect
      to
      any Shares whatsoever, after Termination, whether or not after Termination
      the
      Participant may receivepayment
      from the Company or Subsidiary
      for vacation pay, for services rendered prior
      to Termination, for services
      rendered for the day on which Termination occurs, for salary in lieu of notice,
      or for any other benefits. For the purpose of this paragraph, Termination shall
      be deemed to occur on the date when the Company dispatches notice or advice
      to
      the Participant that his service is Terminated.

    

    6.7
      LIMITATIONS ON EXERCISE. The Board
      may specify a reasonable minimum number of Shares that may be purchased on
      any
      exercise of an Option, provided that such minimum number will not prevent
      Participant from exercising the Option for the full number of Shares for which
      it is then exercisable.

    

    6.8
      LIMITATIONS ON ISO.
      The aggregate Fair Market Value
      (determined as of the date of grant) of Shares with respect to which
ISOare
      exercisable for the first time by a
      Participant during any calendar year (under this Plan or under any other
      incentive stock option plan of the Company, Parent or Subsidiary of the Company)
      will not exceed $100,000. If the Fair Market Value of Shares on the date of
      grant with respect to which ISOare
      exercisable for the first
      time by
      a Participant during any calendar
      year exceeds $100,000, then the Options for the first $100,000 worth of Shares
      to become exercisable in such calendar year will be ISOand
      the Options for the amount in excess
      of $100,000 that become exercisable in that calendar year will be NQSOs. In
      the
      event that the Code or the regulations promulgated thereunder are amended after
      the Effective Date of this Plan to provide for a different limit on the Fair
      Market Value of Shares permitted to be subject to ISO,
      such different limit will be
      automatically incorporated herein and will apply to any Options granted after
      the effective date of such amendment.

    

    6.9
      MODIFICATION, EXTENSION OR RENEWAL.
      The Board may modify, extend or renew outstanding Options and authorize the
      grant of new Options in substitution therefor, provided that any such action
      may
      not, without the written consent of a Participant, impair any of such
      Participant's rights under any Option previously granted. Any outstanding
ISOthat
      is modified, extended, renewed or
      otherwise altered will be treated in accordance with Section 424(h) of the
      Code. The
      Board may reduce the Exercise Price
      of outstanding Options without the consent of Participants affected by a written
      notice to them; provided, however, that the Exercise Price may not be reduced
      below the minimum Exercise Price that would be permitted under Section 6.4
      of
      this Plan for Options granted on the date the action is taken to reduce the
      Exercise Price.

    

    6.10
      NO DISQUALIFICATION.
      Notwithstanding any other provision in this Plan, no term of this Plan relating
      to ISOwill
      be interpreted, amended or altered,
      nor will any discretion or authority granted under this Plan be exercised,
      so as
      to disqualify this Plan under Section 422 of the Code or, without the consent
      of
      the Participant affected, to disqualify any ISOunder
      Section 422 of the
      Code.

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    
      	
              7.

            	
              RESTRICTED
                STOCK.

            

    

    

    A
      Restricted Stock Award is an offer by
      the Company to sell to an eligible person Shares that are subject to
      restrictions. The Board will determine to whom an offer will be made, the number
      of Shares the person may purchase, the price to be paid (the "PURCHASE PRICE"),
      the restrictions to which the Shares will be subject, and all other terms and
      conditions of the Restricted Stock Award, subject to the
      following:

    

    7.1
      FORM OF RESTRICTED STOCK AWARD. All
      purchases under a Restricted Stock Award made pursuant to this Plan will be
      evidenced by an Award Agreement (the "RESTRICTED STOCK PURCHASE AGREEMENT")
      that
      will be in such form (which need not be the same for each Participant) as the
      Board will from time to time approve,
      and will comply with and be
      subject to the terms and conditions of this Plan. The offer of Restricted Stock
      will be accepted by the Participant's execution and delivery of the Restricted
      Stock Purchase Agreement and full payment for the Shares to the Company within
      thirty (30) days from the date the Restricted
      Stock Purchase Agreement is
      delivered to the person. If such person does not execute and deliver the
      Restricted Stock Purchase Agreement along with full payment for the Shares
      to
      the Company within thirty (30) days, then the offer will terminate, unless
      otherwise extended by the Board.

    

    7.2
      PURCHASE PRICE. The Purchase Price
      of Shares sold pursuant to a Restricted Stock Award will be determined by the
      Board on the date the Restricted Stock Award is granted, except in the case
      of a
      sale to a Ten Percent Stockholder, in which case the Purchase Price will be
      100%
      of the Fair Market Value. Payment of the Purchase Price must be made in
      accordance with Section 9 of this Plan.

    

    7.3
      TERMS OF RESTRICTED STOCK AWARDS.
      Restricted Stock Awards shall be subject to such restrictions as the Board
      may
      impose. These restrictions may be based upon completion of a specified number
      of
      years of service with the Company or upon completion of the performance goals
      as
      set out in advance in the Participant's individual Restricted Stock Purchase
      Agreement. Restricted Stock Awards may vary from Participant to Participant
      and
      between groups of Participants. Prior to the grant of a Restricted Stock Award,
      the Board shall: (a) determine the nature, length and starting date of any
      Performance Period for the
      Restricted Stock Award; (b) select
      from among the Performance Factors to be used to measure performance goals,
      if
      any; and (c) determine the number of Shares that may be awarded to the
      Participant. Prior to the payment of any Restricted Stock Award, the Board
      shall
      determine the extent to which such Restricted Stock Award has been earned.
      Performance Periods may overlap and Participants may participate simultaneously
      with respect to Restricted Stock Awards that are subject to different
      Performance Periods and have different performance goals and other
      criteria.

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    7.4
      TERMINATION DURING PERFORMANCE
      PERIOD. If a Participant isTerminated
      during a Performance Period
      for any reason, then such Participant will be entitled to payment (whether
      in
      Shares, cash or otherwise) with respect to the Restricted Stock Award only
      to
      the extent earned as of the date of Termination in accordance with the
      Restricted Stock Purchase Agreement, unless the Board determines
      otherwise.

    

    7.5
“RESTRICTED
      STOCK MEANS.”
“Restricted Stock” as used in this Plan means Shares that are subject to
      restrictions imposed by this Plan and not by restrictions required by the
      Securities Act and, therefore, “Restricted Stock” is not intended to be the same
      as “Restricted Securities” under the Securities Act.

    

    
      	
              8.

            	
              STOCK
                BONUSES.

            

    

    

    8.1
      AWARDS OF STOCK BONUSES. A Stock
      Bonus is an award of Shares (which may consist of Restricted Stock) for
      extraordinary services rendered to the Company or any Parent or Subsidiary
      of
      the Company. A Stock Bonus will be awarded pursuant to an Award Agreement (the
      "STOCK BONUS AGREEMENT") that will be in such form (which need not be the same
      for each Participant) as the Board will from time to time approve, and will
      comply with and be subject to the terms and conditions of this Plan. A Stock
      Bonus may be awarded upon satisfaction of such performance goals as are set
      out
      in advance in the Participant's individual Award Agreement (the "PERFORMANCE
      STOCK BONUS AGREEMENT") that will be in such form (which need not be the same
      for each Participant) as the Board will from time to time approve, and will
      comply with and be subject to the terms and conditions of this Plan. Stock
      Bonuses may vary from Participant to Participant and between groups of
      Participants, and may be based upon the achievement of the Company,
      Parent or Subsidiary and/or
      individual performance factors or upon such other criteria as the Board may
      determine.

    

    8.2
      TERMS OF STOCK BONUSES. The Board
      will determine the number of Shares to be awarded to the Participant. If the
      Stock Bonus is being earned upon the satisfaction of performance goals pursuant
      to a Performance Stock Bonus Agreement, then the Board will: (a) determine
      the
      nature, length and starting date of any Performance Period for each Stock Bonus;
      (b) select from among the Performance Factors to be used to measure the
      performance, if any; and (c) determine the number of Shares that may be awarded
      to the Participant. Prior to the payment of any Stock Bonus, the Board shall
      determine the extent to which such Stock Bonuses have been earned. Performance
      Periods may overlap and Participants
      may participate
      simultaneously with respect to Stock Bonuses that are subject to different
      Performance Periods and different performance goals and other criteria. The
      number of Shares may be fixed or may vary in accordance with such performance
      goals and criteria as may be determined by the Board. The Board may adjust
      the
      performance goals applicable to the Stock Bonuses to take into account changes
      in law and accounting or tax rules and to make such adjustments as the Board
      deems necessary or appropriate to reflect the impact of extraordinary or unusual
      items, events or circumstances to avoid windfalls or
      hardships.

    

    8.3
      FORM OF PAYMENT. The earned portion
      of a Stock Bonus may be paid to the Participant by the Company either currently
      or on a deferred basis, with such interest or dividend equivalent, if any,
      as
      the Board may determine. Payment may be made in the form of cash or whole Shares
      or a combination thereof, either in a lump sum payment or in installments,
      all
      as the Board will determine.

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    
      	
              9.

            	
              PAYMENT
                FOR SHARE
                PURCHASES.

            

    

    

    9.1
      PAYMENT. Payment for Shares
      purchased pursuant to this Plan may be made in cash (by check) or, where
      expressly approved for the Participant by the Board and where permitted by
      law:

    

    
      	
               

            	
              (a)

            	
                 by
                cancellation of
                indebtedness of the Company to the
                Participant;

            

    

    

    
      	
               

            	
              (b)

            	
                 by
                surrender of
                shares that either: (1) have been
                owned by Participant for more
                than one year
                and have been paid for within
                the meaning of
                Rule 144 of the Securities Act
                of 1933 (and, if
                such shares were purchased from
                the Company by
                use of a promissory note, such
                note has been fully
                paid with respect to such
                shares); or (2) were
                obtained by Participant in
                the public market;

            

    

    

    
      	
               

            	
              (c)

            	
                 by
                waiver of
                compensation due or accrued to the
                Participant for services
                rendered;

            

    

    

    
      	
               

            	
              (d)

            	
                 with
                respect only to
                purchases upon exercise of
                an Option, and provided that a
                public market for
                the Company's stock
                exists:

            

    

    

    
      	
               

            	
              (1)

            	
              through
                a "same day
                sale" commitment
                from the Participant
                and a
                broker-dealer that is a member
                of the
                National Association
                of Securities
                Dealers (an
                "NASD DEALER") whereby
                the
                Participant irrevocably
                elects to exercise
                the Option
                and to sell a
                portion of
                the Shares so purchased to
                pay for
                the Exercise Price, and
                whereby the
                NASD Dealer irrevocably
                commits upon
                receipt of such Shares
                to forward
                the Exercise Price
                directly to
                the Company;
                or

            

    

    

    
      	
               

            	
              (2)

            	
              through
                a "margin" commitment
                from the
                Participant and a NASD
                Dealer whereby
                the Participant
                irrevocably elects
                to exercise the Option
                and to
                pledge the Shares so
                purchased to
                the NASD Dealer in a
                margin account
                as security for a loan
                from the
                NASD Dealer in the amount
                of the
                Exercise Price, and whereby
                the NASD
                Dealer irrevocably
                commits upon
                receipt of such Shares
                to forward
                the Exercise Price
                directly to
                the Company;

            

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    
      	
               

            	
              (e)

            	
                 by
                delivery of a
                promissory note; or

            

    

    

    
      	
               

            	
              (f)

            	
                 by
                any combination of
                the foregoing.

            

    

    

    
      	
              10.

            	
              WITHHOLDING
                TAXES.

            

    

    

    10.1
      WITHHOLDING GENERALLY. Whenever
      Shares are to be issued in satisfaction of Awards granted under this Plan,
      the
      Company may require the Participant to remit to the Company an amount sufficient
      to satisfy federal, state and local withholding tax requirements prior to the
      delivery of any certificate or certificates for such Shares. Whenever, under
      this Plan, payments in satisfaction of Awards are to be made in cash, such
      payment will be net of an amount sufficient to satisfy federal, state, and
      local
      withholding tax requirements.

    

    10.2
      STOCK WITHHOLDING. When, under
      applicable tax laws, a participant incurs tax liability in connection with
      the
      exercise or vesting of any Award that is subject to tax withholding and the
      Participant is obligated to pay the Company the amount required to be withheld,
      the Board may allow the Participant to satisfy the minimum withholding tax
      obligation by electing to have the Company withhold from the Shares to be issued
      that number of Shares having a Fair Market Value equal to the minimum amount
      required to be withheld, determined on the date that the amount of tax to be
      withheld is to be determined. All elections by a Participant to have Shares
      withheld for this purpose will be made in accordance with the requirements
      established by the

    Board
      and be in writing in a form
      acceptable to the Board.

    

    
      	
              11.

            	
              PRIVILEGES
                OF STOCK
                OWNERSHIP.

            

    

    

    11.1
      VOTING ANDDIVIDENDS.
      No Participant will have any
      of the rights of a stockholder with respect to any Shares until the Shares
      are
      issued to the Participant. After Shares are issued to the Participant, the
      Participant will be a stockholder and will have all the rights of a stockholder
      with respect to such Shares, including the right to vote and receive all
      dividends or other distributions made or paid with respect to such Shares;
      provided, that if such Shares are Restricted Stock, then any new, additional
      or
      different securities the Participant may become entitled to receive with respect
      to such Shares by virtue of a stock dividend, stock split or any other change
      in
      the corporate or capital
      structure of the Company will be
      subject to the same restrictions as the Restricted Stock; provided, further,
      that the Participant will have no right to retain such stock dividends or stock
      distributions with respect to Shares that are repurchased at the Participant's
      Purchase Price or Exercise Price pursuant to Section 12.

    

    11.2
      FINANCIAL STATEMENTS. Pursuant to
      regulation 260.140.46 of the Rules of the California Corporations Commissioner,
      the Company will provide financial statements to each Participant prior to
      such
      Participant's purchase of Shares under this Plan, and to each Participant
      annually during the period such Participant has Awards outstanding; provided,
      however, the Company will not be required to provide such financial statements
      to Participants whose services in connection
      with the Company assure them
      access to equivalent information.

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    
      	
              12.

            	
              TRANSFERABILITY.

            

    

    

    Awards
      granted under this Plan, and any
      interest therein, will not be transferable or assignable by Participant, and
      may
      not be made subject to execution, attachment or similar process, other than
      by
      will or by the laws of descent and distribution. During the lifetime of the
      Participant an Award will be exercisable only by the Participant. During the
      lifetime of the Participant, any elections with respect to an Award may be
      made
      only by the Participant unless otherwise determined by the Board and set forth
      in the Award Agreement with
      respect to Awards that are not
      ISOs.

    

    
      	
              13.

            	
              RESTRICTIONS
                ON
                SHARES.

            

    

    

    At
      the discretion of the Board, the
      Company may reserve to itself and/or its assignee(s) in the Award Agreement
      a
      right to repurchase a portion of or all Unvested Shares held by a Participant
      following such Participant's Termination at any time within ninety (90) days
      after the later of (a) Participant's Termination Date, or (b) the date
      Participant purchases Shares under this Plan. Such repurchase by the Company
      shall be for cash and/or cancellation of purchase money indebtedness, and the
      price per share shall be the Participant's Exercise Price or the Purchase Price,
      as applicable; provided that the Company’s right to repurchase at the original
      Purchase Price shall lapse at the rate of 20% of Unvested Shares per year over
      five years from the date the Options were granted (without respect to the date
      the Options were exercised or became exercisable).

    

    
      	
              14.

            	
              CERTIFICATES.

            

    

    

    All
      certificates for Shares or other
      securities delivered under this Plan will be subject to such stock transfer
      orders, legends and other restrictions as the Board may deem necessary or
      advisable, including restrictions under any applicable federal, state or foreign
      securities law, or any rules, regulations and other requirements of the SEC
      or
      any stock exchange or automated quotation system upon which the Shares may
      be
      listed or quoted.

    

    
      	
              15.

            	
              ESCROW;
                PLEDGE OF
                SHARES.

            

    

    

    To
      enforce any restrictions on a
      Participant's Shares, the Board may require the Participant to deposit all
      certificates representing Shares, together with stock powers or other
      instruments of transfer approved by the Board appropriately endorsed in blank,
      with the Company or an agent designated by the Company to hold in escrow until
      such restrictions have lapsed or terminated, and the Board may cause a legend
      or
      legends referencing such restrictions to be placed on the certificates. Any
      Participant who is permitted to execute a promissory note as partial or full
      consideration for the purchase of
      Shares under this Plan will be
      required to pledge and deposit with the Company all or part of the Shares so
      purchased as collateral to secure the payment of Participant's obligation to
      the
      Company under the promissory note; provided, however, that the Board may require
      or accept other or additional forms of collateral to secure the payment of
      such
      obligation and, in any event, the Company will have full recourse against the
      Participant under the promissory note notwithstanding any pledge of the
      Participant's Shares or other collateral. In connection with any pledge of
      the
      Shares, Participant will be required to execute and deliver a written pledge
      agreement in such form as the Board will from
      time to time approve. The Shares
      purchased with the promissory note may be released from the pledge on a pro
      rata
      basis as the promissory note is paid.

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    
      	
              16.

            	
              EXCHANGE
ANDBUYOUT
                OF
                AWARDS.

            

    

    

    The
      Board may, at any time or from time
      to time, authorize the Company, with the consent of the respective Participants,
      to issue new Awards in exchange for the surrender and cancellation of any or
      all
      outstanding Awards. The Boardmay
      at any time buy from a Participant
      an Award previously granted with payment in cash, Shares (including Restricted
      Stock) or other consideration, based on such terms and conditions as the Board
      and the Participant may agree.

    

    
      	
              17.

            	
              SECURITIES
                LAW ANDOTHER
                REGULATORY
                COMPLIANCE.

            

    

    

    An
      Award will not be effective unless
      such Award is in compliance with all applicable federal and state securities
      laws, rules and regulations of any governmental body, and the requirements
      of
      any stock exchange or automated quotation system upon which the Shares may
      then
      be listed or quoted, as they are in effect on the date of grant of the Award
      and
      also on the date of exercise or other issuance. Notwithstanding any other
      provision in this Plan, the Company will
      have no obligation to issue or
      deliver certificates for Shares under this Plan prior to: (a) obtaining any
      approvals from governmental agencies that the Company determines are necessary
      or advisable; and/or (b) completion of any registration or other qualification
      of such Shares under any state or federal law or ruling of any governmental
      body
      that the Company determines to be necessary or advisable. The Company will
      be
      under no obligation to register the Shares with the SEC or to effect compliance
      with the registration, qualification or listing requirements of any state
      securities laws, stock exchange or automated quotation system, and the Company
      will have no liability for any

    inability
      or failure to do
      so.

    

    
      	
              18.

            	
              NO
                OBLIGATION TO
                EMPLOY.

            

    

    

    Nothing
      in this Plan or any Award
      granted under this Plan will confer or be deemed to confer on any Participant
      any right to continue in the employ of, or to continue any other relationship
      with, the Company or any Parent or Subsidiary of the Company or limit in any
      way
      the right of the Company or any Parent or Subsidiary of the Company to terminate
      Participant's employment or other relationship at any time, with or without
      cause.

    

    
      	
              19.

            	
              CORPORATE
                TRANSACTIONS.

            

    

    

    19.1
      ASSUMPTION OR REPLACEMENT OF AWARDS
      BY SUCCESSOR. In the event of (a) a dissolution or liquidation of the Company,
      (b) a merger or consolidation in which the Company is not the surviving
      corporation (other than a merger or consolidation with a wholly-owned
      subsidiary, a reincorporation of the Company in a different jurisdiction, or
      other transaction in which there is no substantial change in the stockholders
      of
      the Company or their relative stock holdings and the Awards granted under this
      Plan are assumed, converted or replaced by the successor corporation, which
      assumption will be binding on all Participants), (c) a merger in which the
      Company is the surviving corporation but after which the stockholders of the
      Company immediately prior to such merger (other
      than any stockholder that merges,
      or which owns or controls another corporation that merges, with the Company
      in
      such merger) cease to own their shares or other equity interest in the Company,
      (d) the sale of substantially all of the assets of the Company, or (e) the
      acquisition, sale, or transfer of more than 50% of the outstanding shares of
      the
      Company by tender offer or similar transaction, any or all outstanding Awards
      may be assumed, converted or replaced by the successor corporation (if any),
      which assumption, conversion or replacement
      will be binding on all
      Participants. In the alternative, the successor corporation may substitute
      equivalent Awards or provide substantially similar consideration to Participants
      as was provided to stockholders (after taking into account the existing
      provisions of the Awards). The successor corporation may also issue, in place
      of
      outstanding Shares of the Company held by the Participant, substantially similar
      shares or other property subject to repurchase
      restrictions no less
      favorable to the Participant. In the event such successor corporation (if any)
      refuses to assume or substitute Awards, as provided above, pursuant to a
      transaction described in this Subsection 19.1,such Awards will expire
      on such
      transaction at such time and on such conditions as the Board will determine.
      Notwithstanding anything in this Plan to the contrary, the Board may provide
      that the vesting of any or all Awards granted pursuant
      to this Plan will accelerate
      upon a transaction described in this Section 19. If the Board exercises such
      discretion with respect to Options, such Options will become exercisable in
      full
      prior to the consummation of such event at such time and on such conditions
      as
      the Board determines, and if such Options are not exercised prior to the
      consummation of the corporate transaction, they shall terminate at such time
      as
      determined by the Board.

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    19.2
      OTHER TREATMENT OF AWARDS. Subject
      to any greater rights granted to Participants under the foregoing provisions
      of
      this Section 19, in the event of the occurrence of any transaction described
      in
      Section 19.1, any outstanding Awards will be treated as provided in the
      applicable agreement or plan of merger, consolidation, dissolution, liquidation,
      or sale of assets.

    

    19.3
      ASSUMPTION OF AWARDS BY THE
      COMPANY. The Company, from time to time, also may substitute or assume
      outstanding awards granted by another company, whether in connection with an
      acquisition of such other company or otherwise, by either: (a) granting an
      Award
      under this Plan in substitution of such other company's award; or (b) assuming
      such award as if it had been granted under this Plan if the terms of such
      assumed award could be applied to an Award granted under this Plan. Such
      substitution or assumption will be permissible if the holder of the substituted
      or assumed award would have been eligible to be granted
      an Award under this Plan if the
      other company had applied the rules of this Plan to such grant. In the event
      the
      Company assumes an award granted by another company, the terms and conditions
      of
      such award will remain unchanged(except that the exercise price and the number
      and nature of Shares issuable upon exercise of any such option will be adjusted
      appropriately pursuant to Section 424(a) of the Code). In the event the Company
      elects to grant a new Option rather than assuming an existing option, such
      new
      Option may be granted with
      a similarly adjusted Exercise
      Price.

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    
      	
              20.

            	
              ADOPTION
ANDSTOCKHOLDER
                APPROVAL.

            

    

    

    This
      Plan will become effective on the
      date on which it is adopted by the Board (the "EFFECTIVE DATE"). This Plan
      shall
      be approved by the stockholders of the Company within twelve (12) months before
      or after the date this Plan is adopted by the Board. Upon the Effective Date,
      the Board may grant Awards pursuant to this Plan. In the event that stockholder
      approval of this Plan is not obtained within the time period provided herein,
      all Awards granted hereunder shall be cancelled, any Shares issued pursuant
      to
      any Awards shall be cancelled and any purchase of Shares issued hereunder shall
      be rescinded.

    

    
      	
              21.

            	
              TERM
                OF PLAN/GOVERNING
                LAW.

            

    

    

    Unless
      earlier terminated as provided
      herein, this Plan will terminate ten (10) years from the date this Plan is
      adopted by the Board or, if earlier, the date of stockholder approval. This
      Plan
      and all agreements thereunder shall be governed by and construed in accordance
      with the laws of the State of Nevada.

    

    
      	
              22.

            	
              AMENDMENT
                OR TERMINATION OF
                PLAN.

            

    

    

    The
      Board may at any time terminate or
      amend this Plan in any respect, including without limitation amendment of any
      form of Award Agreement or instrument to be executed pursuant to this Plan;
      provided, however, that the Board will not, without the approval of the
      stockholders of the Company, amend this Plan in any manner that requires such
      stockholder approval.

    

    
      	
              23.

            	
              NONEXCLUSIVITY
                OF THE
                PLAN.

            

    

    

    Neither
      the adoption of this Plan by the
      Board, the submission of this Plan to the stockholders of the Company for
      approval, nor any provision of this Plan will be construed as creating any
      limitations on the power of the Board to adopt such additional compensation
      arrangements as it may deem desirable, including, without limitation, the
      granting of stock options and bonuses otherwise than under this Plan, and such
      arrangements may be either generally applicable or applicable only in specific
      cases.

    

    
      	
              24.

            	
              ACTION
                BY
                BOARD.

            

    

    

    Any
      action permitted or required to be
      taken by the Board or any decision or determination permitted or required to
      be
      made by the Board pursuant to this Plan shall be taken or made in the Board's
      sole and absolute discretion.

     

     

    16

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