Document:

[Maxim
      Group LLC Letterhead]

    

    February
      2, 2006

    

    Mr.
      Roger
      Girard

    Chairman
      and Chief Executive Officer

    IsoRay,
      Inc.

    350
      Hills
      Street - Suite 106

    Richland,
      WA 99352

    

    Dear
      Mr.
      Girard:

    

    The
      purpose of this letter agreement (“Agreement”) is to confirm the engagement of
      Maxim Group LLC (“Maxim”) by IsoRay, Inc. (“Company”) to act as one of the two
      exclusive co-placement agents in connection with the “best-efforts” proposed
      offering (“Offering”) of equity or equity-linked securities (“Securities”) of
      the Company. The gross proceeds from the Offering will be up to $20,000,000
      and
      the terms of the Securities and the gross proceeds of such Offering will be
      set
      forth in a purchase agreement (“Purchase Agreement”) with investors (as defined
      below). It is understood that Maxim and Punk, Ziegel & Company, L.P. will be
      the exclusive co-placement agents (the “Placement Agents”) of the Offering.

    

    1. Appointment.

    

    (a) Subject
      to the terms and conditions of this Agreement, the Company hereby retains Maxim,
      and Maxim hereby agrees to act, as one of the Company’s two exclusive
      co-placement agents in connection with the Offering. As placement agent for
      the
      Offering, Maxim will advise and assist the Company in identifying, and assisting
      the Company in issuing the Securities to, one or more Investors (“Investors”) in
      the Offering. The Company acknowledges and agrees that Maxim’s is only required
      to use its “commercially reasonable efforts” in connection with the Offering and
      that this Agreement does not constitute a commitment by Maxim to purchase the
      Securities. The Company retains the right to determine all of the terms and
      conditions of the Offering and to accept or reject and proposals submitted
      to it
      by Maxim in its sole and absolute discretion.

    

    (b) During
      the Term of this Agreement (as such term is hereinafter defined), neither the
      Company nor any of its subsidiaries will, directly or indirectly, solicit or
      otherwise encourage the submission of any proposal or offer (“Investment
      Proposal”), from any person or entity relating to any issuance of the Company’s
      or any of its subsidiaries’ equity securities (including debt securities with
      any equity feature) or participate in any discussions regarding an Investment
      Proposal. The term “Investment Proposal” shall not include (i) any investment in
      the equity securities of any other entity, (ii) any commercial loans to the
      Company, and (iii) any transaction or agreement with one or more persons, firms
      or entities designated as a “strategic partner” of the Company, as determined in
      good faith by the Board of Directors of the Company, provided that each such
      person, firm or entity is, itself or through its subsidiaries, an operating
      company in a business synergistic with the business of the Company and in which
      the Company receives benefits in addition to the investment of funds, but shall
      not include a transaction in which the Company is issuing securities primarily
      for the purpose of raising capital or to an entity whose primary business is
      investing in securities. The Company will immediately cease all contracts,
      discussions and negotiations with third parties regarding any Investment
      Proposal. 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    2. Compensation
      and Expenses.

    

    (a) In
      consideration of the services rendered by Maxim in connection with the Offering,
      the Company agrees to pay Maxim a cash fee (the “Placement Fee”) payable upon
      the closing of the transactions contemplated by this Agreement (“Closing”) equal
      to three point fifteen percent (3.15%, or 45% of the 7.0% total cash fee payable
      to the Placement Agents) of the gross proceeds received by the Company from
      Investors at the Closing. Upon the execution of this engagement letter, the
      Company shall deliver to Maxim $25,000 (by check or wire transfer of immediately
      available funds) as a non-refundable cash retainer fee, which shall be
      creditable against the payment of any Placement Fee. The Company will reimburse
      Maxim in a timely manner for its out-of-pocket expenses relating to the
      Offering, including but not limited to legal fees, printing expenses, travel
      and
      other related expenses, provided that Maxim shall obtain the Company’s prior
      approval if and when such expenses should cumulatively reach
      $35,000.

    

    (b) The
      Company shall deliver a warrant, or, if so requested, warrants, to Maxim and/or
      its designees (the “Agent Warrant”), which Agent’s Warrant shall be exercisable
      to purchase additional Securities equal to two and three quarters percent
      (2.75%, or 55% of the 5% total warrants payable to the Placement Agents) of
      the
      total number of shares sold pursuant to the Offering. The Agent’s Warrant will
      be exercisable at any time and from time to time, in whole or in part, during
      the four-year period commencing one year from the Offering, at a price per
      share
      equal to 110% of the per share offering price of the Securities in the Offering.
      The Agent’s Warrant will provide for registration rights (including a one time
      demand registration right and unlimited piggyback rights), cashless exercise
      and
      customary anti-dilution provisions (for stock dividends and splits and
      recapitalizations) consistent with the National Association of Securities
      Dealers, Inc. (“NASD”) Rules of Fair Practice and satisfactory to Maxim and its
      counsel.

    

    3. Term
      of Engagement.

    

    (a) This
      Agreement will remain in effect until one year after the date hereof, after
      which either party shall have the right to terminate it on thirty (30) days
      prior written notice to the other. The date of termination of this Agreement
      is
      referred to herein from time to time as the “Termination
      Date”.
      The
      period of time during which this Agreement remains in effect is referred to
      herein from time to time as the “Term”.
      If,
      within one year after the Termination Date, the Company completes any private
      financing of equity or debt or other capital raising activity of the Company
      (other than the exercise by any person or entity of any options, warrants or
      other convertible securities other than the warrants issued pursuant to this
      Agreement) with any of the Investors who were first introduced to the Company
      in
      connection with the financing contemplated hereby by Maxim (i.e., an “Introduced
      Party”), the Company will pay to Maxim upon the closing of such financing the
      compensation set forth in Section 2 as a “Source
      Fee”.
      In the
      event that any merger, acquisition, change of control transaction or sale of
      all
      or substantially all of the assets of the Company shall be consummated with
      any
      Investor contacted by Maxim during the term of this Agreement, the Company
      shall
      pay to Maxim a mutually agreed upon fee reflecting industry standards for such
      transactions of such type. For purposes of this Section 3(a), “Introduced Party”
shall mean a person with whom Maxim has had at least one face-to-face or
      telephone conversation in connection with Maxim’s provision of services to the
      Company hereunder and who is included in a list of Introduced Parties, which
      shall be maintained by Maxim and a true and correct copy of which shall be
      furnished to the Company upon closing and/or termination of the engagement
      contract. Such a list is deemed confidential and is not to be disseminated
      to
      anyone other than IsoRay employees and members of the Board of Directors of
      IsoRay. 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (b) Notwithstanding
      anything herein to the contrary, subject to the one year limitation described
      in
      Section 3(a) above, the obligation to pay the compensation and expenses
      described in Section 2, and the provisions of Sections 6, 7, 9-18 and all of
      Exhibit A attached hereto (the terms of which are incorporated by reference
      hereto), will survive any termination or expiration of this
      Agreement.

    

    4. Right
      of First Refusal.

    

    If
      the
      Company executes definitive transaction documents with an Investor relating
      to
      the Offering, Maxim will have the right of first refusal to act as a managing
      underwriter of any public offering of the Company’s equity or debt securities,
      and will have the right of first refusal to act as a co-placement agent on
      any
      private placement of any of the Company’s equity or debt securities (excluding
      (i) sales to employees under any compensation or stock option plan approved
      by
      the stockholders of the Company, (ii) shares issued in payment of the
      consideration for an acquisition and (iii) conventional banking arrangements
      and
      commercial debt financing) of the Company or any subsidiary or successor of
      the
      Company during the one-year period following the completion of the Offering.
      If
      Maxim fails to accept in writing any such proposal for such public or private
      sale within 30 days after receipt of a written notice from the Company
      containing such proposal, then Maxim will have no claim or right with respect
      to
      any such sale contained in any such notice. If, thereafter, such proposal is
      modified in any material respect, the Company will adopt the same procedure
      as
      with respect to the original proposed public or private sale.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    5. Information.

    

    (a) The
      Company recognizes that, in completing its engagement hereunder, Maxim will
      be
      using and relying on publicly available information and on data, material and
      other information furnished to Maxim by the Company or the Company’s affiliates
      and agents. The Company will cooperate with Maxim and furnish, and cause to
      be
      furnished, to Maxim, any and all information and data concerning the Company,
      its subsidiaries and the Offering that Maxim deems appropriate, including,
      without limitation, the Company’s acquisition plans and plans for raising
      capital or additional financing (to the extent available to the Company in
      the
      case of parties other than the Company) that is reasonably requested by Maxim.
      The Company represents and warrants to Maxim that all such information: (1)
      made
      available by the Company to Maxim or its agents, representatives and any
      potential participant in the Offering, (2) contained in any preliminary or
      final
      Private Placement Materials prepared by the Company in connection with the
      Offering, and (3) contained in any filing by the Company with any court or
      governmental regulatory agency, commission or instrumentality, will be complete
      and correct in all material respects and will not contain any untrue statement
      of a material fact or omit to state a material fact necessary to make the
      statements therein not misleading in the light of the circumstances under which
      statements are made. The Company further represents and warrants to Maxim that
      all such Information will have been prepared by the Company in good faith and
      will be based upon assumptions which, in light of the circumstances under which
      they were made, are reasonable. It is understood and agreed that in performing
      under this engagement, Maxim will be relying upon the accuracy and completeness
      of, and is not assuming any responsibility for independent verification of,
      such
      publicly available information and the other information so
      furnished.

    

    (b) It
      is
      further agreed that Maxim will conduct a due diligence investigation of the
      Company and the Company will reasonably cooperate with such investigation as
      a
      condition of Maxim’s obligations hereunder. The Company further recognizes,
      understands and confirms that Maxim: (i) will use and rely primarily on data,
      material and other information furnished to Maxim by the Company or the
      Company’s affiliates and agents, including the Private Placement Materials, and
      on information available from generally recognized public sources in performing
      the services contemplated by this engagement without having independently
      verified the same; (ii) is authorized as the Company’s placement agent to
      transmit to any prospective investor a copy or copies of the Private Placement
      Materials, forms of purchase agreements and any other legal documentation
      supplied to Maxim for transmission to any prospective investor by or on behalf
      of the Company or by any of the Company’s officers, representatives or agents,
      in connection with the performance of Maxim’s services hereunder or any
      transaction contemplated hereby; (iii) does not assume responsibility for the
      accuracy or completeness of any data, material and other information furnished
      to Maxim by the Company or the Company’s affiliates and agents, including the
      Private Placement Materials, or any other information; and (iv) will not make
      an
      appraisal of any assets of the Company. If at any time during the course of
      Maxim’s engagement, the Company becomes aware of any material change in any of
      the information previously furnished to Maxim, it will promptly advise Maxim
      of
      the change.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (c) Until
      the
      date that is two years from the date hereof, Maxim will keep all information
      obtained from the Company strictly confidential except: (i) information which
      is
      otherwise publicly available, or previously known to or obtained by, Maxim
      independently of the Company and without breach of any of Maxim’s agreements
      with the Company; (ii) Maxim may disclose such information to its officers,
      directors, employees and agents, and to its other advisors and financial sources
      on a need to know basis only and will ensure that all such persons will keep
      such information strictly confidential. No such obligation of confidentiality
      shall apply to information that: (i) is in the public domain as of the date
      hereof or hereafter enters the public domain without a breach by Maxim, (ii)
      was
      known or became known by Maxim prior to the Company’s disclosure thereof to
      Maxim, (iii) becomes known to Maxim from a source other than the Company, and
      other than by the breach of an obligation of confidentiality owed to the
      Company, (iv) is disclosed by the Company to a third party without restrictions
      on its disclosure, (v) is independently developed by Maxim or (vi) is required
      to be disclosed by Maxim or its officers, directors, employees, agents,
      attorneys and to its other advisors and financial sources, to any order of
      a
      court of competent jurisdiction or other governmental body or as may otherwise
      be required by law.

    

    (d) The
      Company recognizes that in order for Maxim to perform properly its obligations
      in a professional manner, the Company will keep Maxim informed of and, to the
      extent practicable, permit Maxim to participate in meetings and discussions
      between the Company and any third party relating to the matters covered by
      the
      terms of Maxim’s engagement.

    

    6. Indemnification.
      The
      Company agrees to indemnify Maxim in accordance with the indemnification and
      other provisions attached to this Agreement as Exhibit A (the “Indemnification
      Provisions”), which provisions are incorporated herein by reference and shall
      survive the termination or expiration of this Agreement.

    

    7. Securities
      Law Compliance.
      The
      Company, at its own expense, will obtain any registration or qualifications
      required to sell any Securities under the Blue Sky laws of any applicable
      jurisdictions.

    

    8. No
      General Solicitation.
      The
      Securities will be offered only by approaching prospective purchasers on an
      individual basis. No general solicitation or general advertising in any form
      will be used by the Company or Maxim in connection with the offering of the
      Securities.

    

    9. Confidentiality.
      The
      Company will not provide or release any information with respect to this
      Agreement or the Offering except as required by law or otherwise disclosed
      in
      any offering memorandum. 

    

    10. Representations
      and Warranties.
      The
      Company and Maxim each respectively represent and warrant that: (a) it has
      full
      right, power and authority to enter into this Agreement and to perform all
      of
      its obligations hereunder; (b) this Agreement has been duly authorized and
      executed and constitutes a legal, valid and binding agreement of such party
      enforceable in accordance with its terms; and (c) the execution and delivery
      of
      this Agreement and the consummation of the transactions contemplated hereby
      does
      not conflict with or result in a breach of (i) such party’s certificate of
      incorporation or by-laws or (ii) any agreement to which such party is a party
      or
      by which any of its property or assets is bound.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    11. Parties;
      Assignment; Independent Contractor.
      This
      Agreement has been and is made solely for the benefit of Maxim and the Company
      and each of the persons, agents, employees, officers, directors and controlling
      persons referred to in Exhibit A and their respective heirs, executors, personal
      representatives, successors and assigns, and nothing contained in this Agreement
      will confer any rights upon, nor will this Agreement be construed to create
      any
      rights in, any person who is not party to such Agreement, other than as set
      forth in this paragraph. The rights and obligations of either party under this
      Agreement may not be assigned without the prior written consent of the other
      party hereto and any other purported assignment will be null and void. Maxim
      has
      been retained under this Agreement as an independent contractor, and it is
      understood and agreed that this Agreement does not create a fiduciary
      relationship between Maxim and the Company or their respective Board of
      Directors. Maxim shall not be considered to be the agent of the Company for
      any
      purpose whatsoever and Maxim is not granted any right or authority to assume
      or
      create any obligation or liability, express or implied, on the Company’s behalf,
      or to bind the Company in any manner whatsoever. 

    

    12. Validity.
      In case
      any term of this Agreement will be held invalid, illegal or unenforceable,
      in
      whole or in part, the validity of any of the other terms of this Agreement
      will
      not in any way be affected thereby.

    

    13. Waiver
      of Breach.
      The
      failure of any party hereto to insist upon strict performance of any of the
      covenants and agreements herein contained, or to exercise any option or right
      herein conferred in any one or more instances, will not be construed to be
      a
      waiver or relinquishment of any such option or right, or of any other covenants
      or agreements, and the same will be and remain in full force and
      effect.

    

    14. Counterparts.
      This
      Agreement may be executed in counterparts and each of such counterparts will
      for
      all purposes be deemed to be an original, and such counterparts will together
      constitute one and the same instrument.

    

    15. Governing
      Law; Jurisdiction Law.
      This
      Agreement will be governed as to validity, interpretation, construction, effect
      and in all other aspects by the internal law of the State of New York. The
      Company and Maxim each (i) agree that any legal suit, action or proceeding
      arising out of or relating to this Agreement shall be instituted exclusively
      in
      the New York State Supreme Court, County of New York, or in the United States
      District Court for the Southern District of New York, (ii) waives any objection
      to the venue of any such suit, action or proceeding, and the right to assert
      that such forum is an inconvenient forum, and (iii) irrevocably consents to
      the
      jurisdiction of the New York State Supreme Court, County of New York, and the
      United States District Court for the Southern District of New York in any such
      suit, action or proceeding. Each of the Company and Maxim further agrees to
      accept and acknowledge service of any and all process that may be served in
      any
      such suit, action or proceeding in the New York State Supreme Court, County
      of
      New York, or in the United States District Court for the Southern District
      of
      New York and agree that service of process upon it mailed by certified mail
      to
      its address shall be deemed in every respect effective service of process in
      any
      such suit, action of proceeding.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    16. Successors
      and Assigns.
      The
      benefits of the Agreement shall inure to the parties hereto, their respective
      successors and assigns and to the indemnified parties hereunder and their
      respective successors and assigns, and the obligations and liabilities assumed
      in the Agreement shall be binding upon the parties hereto and their respective
      successors and assigns. Notwithstanding anything contained herein to the
      contrary, neither Maxim nor the company shall assign to an unaffiliated third
      party of its obligations hereunder.

    

    17. Press
      Announcements.
      The
      company agrees that Maxim shall, upon a successful transaction, have the right
      to place advertisement in financial and other newspapers and journals at its
      own
      expense describing its services to the Company hereunder, provided that Maxim
      shall submit a copy of any such advertisement to the Company for its approval,
      such approval not be unreasonably withheld.

    

    18. Notices.
      All
      notices will be in writing and will be effective when delivered in person or
      sent via facsimile and confirmed by letter, to the party to whom it is addressed
      at the following address or such other address as such party may advise the
      other in writing:

    

    
      	
              To
                the Company: 

            	
              Mr.
                Roger Girard

            
	 	
              Chairman
                and Chief Executive Officer

            
	 	
              IsoRay,
                Inc.

            
	 	
              350
                Hills Street - Suite 106

            
	 	
              Richland,
                WA 99352

            
	 	
              Attention:
                Roger Girard

            
	 	
              Phone:
                509-375-1202

            
	 	
              Facsimile:
                509-375-3473

            
	 	 
	 	 
	
              To
                Maxim:

            	
              Mr.
                Roberto T. Fabros

            
	 	
              Managing
                Director

            
	 	
              Maxim
                Group LLC

            
	 	
              405
                Lexington Avenue

            
	 	
              New
                York, NY 10174

            
	 	
              Attention:
                Roberto T. Fabros

            
	 	
              Telephone:
                (212) 895-3840

            
	 	
              Facsimile:
                (212) 895-3783

            

    

    

    [Signature
      Page Follows]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    If
      the
      foregoing correctly sets forth our agreement, please confirm this by signing
      and
      returning to us the duplicate copy of this letter.

    

    We
      appreciate this opportunity to be of service and are looking forward to working
      with you on this matter.

    

    

    
      	 	
              Very
                truly yours,

            
	 	 
	 	
              MAXIM
                GROUP LLC

            
	 	 
	 	 
	 	
              By:
                /s/ Roberto T.
                Fabros                                          
                

            
	 	
                    
                Roberto T. Fabros

            
	 	
                    
                Managing Director

            
	 	 
	 	 
	 	
              By:
                /s/ Clifford A.
                Teller                                            
                

            
	 	
                    
                Clifford A. Teller

            
	 	
                    
                Director of Investment Banking

            

    

     

     

    

    ISORAY,
      INC.

    

    

    By:
      /s/
      Roger
      Girard                                    

          
      Roger Girard

          
      Chairman and Chief Executive OfficerUnassociated Document

    

    Exhibit
      10.1 - 2007 Incentive Compensation Plan

    

    ULTITEK,
      LTD.

    (the
      “Company”)

    

    2007
      INCENTIVE COMPENSATION PLAN

    

    1.    PURPOSE

    

    The
      purpose of this 2007 Incentive Compensation Plan of ULTITEK, LTD., is to advance
      the interests of the Company (as herein defined) by encouraging Eligible
      Employees (as herein defined) to acquire shares of the Company, thereby
      increasing their proprietary interest in the Company, encouraging them to remain
      associated with the Company and furnishing them with additional incentive to
      advance the interests of the Company in the conduct of their affairs.

    

    2.    DEFINITIONS

    

    As
      used
      herein, the following definitions shall apply:

    

    
      	 	
              (a)

            	
              "Administrator"
                means the Board or a Committee of the Board duly appointed by the
                Board as
                the Administrator hereof.

            

    

    

    
      	 	
              (b)

            	
              "Affiliate"
                and "Associate"
                shall have the respective meanings ascribed to such terms in the
                Securities Act.

            

    

    

    
      	 	
              (c)

            	
              "Applicable
                Laws"
                means the legal requirements relating to the administration of incentive
                compensation plans, if any, under applicable provisions of federal
                securities laws, state corporate and securities laws, the Securities
                Act,
                the rules of any applicable stock exchange or national market system,
                and
                the rules of any foreign jurisdiction applicable to Awards granted
                to
                residents therein. 

            

    

    

    
      	 	
              (d)

            	
              "Award"
                means the grant of Performance Shares or other right or benefit under
                the
                Plan.

            

    

    

    
      	 	
              (e)

            	
              "Award
                Agreement"
                means the written agreement evidencing the grant of an Award executed
                by
                the Company and the Grantee, including any amendments
                thereto.

            

    

    

    
      	 	
              (f)

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

            

    

    

    
      	 	
              (g)

            	
              "Cause"
                means, with respect to the termination by the Company or a Related
                Entity
                of the Grantee's Continuous Service, that such termination is for
                `Cause'
                as such term is expressly defined in a then-effective written agreement
                between the Grantee and the Company or such Related Entity, or in
                the
                absence of such then-effective written agreement and definition,
                is based
                on, in the determination of the Administrator, the
                Grantee's:

            

    

    

    
      	 	 	
              (i)

            	
              refusal
                or failure to act in accordance with any specific, lawful direction
                or
                order of the Company or a Related
                Entity;

            

    

    

    
      	 	 	
              (ii)

            	
              unfitness
                or unavailability for service or unsatisfactory performance (other
                than as
                a result of Disability);

            

    

    

    
      	 	 	
              (iii)

            	
              performance
                of any act or failure to perform any act in bad faith and to the
                detriment
                of the Company or a Related Entity;

            

    

    

    
      	 	 	
              (iv)

            	
              dishonesty,
                intentional misconduct or material breach of any agreement with the
                Company or a Related Entity; or

            

    

    

    
      	 	 	
              (v)

            	
              commission
                of a crime involving dishonesty, breach of trust, or physical or
                emotional
                harm to any person.

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (h)

            	
              "Change
                in Control" means
                a change in ownership or control of the Company effected through
                either of
                the following transactions:

            

    

    

    
      	 	 	
              (i)

            	
              the
                direct or indirect acquisition by any person or related group of
                persons
                (other than an acquisition by the Company or by a Company-sponsored
                employee benefit plan or by a person that directly or indirectly
                controls,
                is controlled by, or is under common control with, the Company) of
                beneficial ownership of securities possessing more than fifty percent
                (50%) of
                the total combined voting power of the Company's outstanding securities
                pursuant to a tender or exchange offer made directly to the Company's
                shareholders which a majority of the Continuing Directors who are
                not
                Affiliates or Associates of the offeror do not recommend such shareholders
                accept, or

            

    

    

    
      	 	 	
              (ii)

            	
              a
                change in the composition of the Board over a period of thirty-six
                (36)
                months or less such that a majority of the Board members (rounded
                up to
                the next whole number) ceases, by reason of one or more contested
                elections for Board membership, to be comprised of individuals who
                are
                Continuing Directors. 

            

    

    

    
      	 	
              (i)

            	
              "Committee"
                means any committee appointed by the Board to administer the Plan.
                

            

    

    

    
      	 	
              (j)

            	
              "Common
                Stock"
                means the common stock of the Company.

            

    

    

    
      	 	
              (k)

            	
              "Company"
                means ULTITEK, LTD., a Nevada
                company.

            

    

    

    
      	 	
              (l)

            	
              "Consultant"
                means any person (other than an Employee or solely with respect to
                rendering services in such person's capacity as a Director) who is
                engaged
                by the Company or any Related Entity to render consulting or advisory
                services to the Company or such Related
                Entity.

            

    

    

    
      	 	
              (m)

            	
              "Continuing
                Directors"
                means members of the Board who either (i) have been Board members
                continuously for a period of at least thirty-six (36) months or (ii)
                have
                been Board members for less than thirty-six (36) months and were
                elected
                or nominated for election as Board members by at least a majority
                of the
                Board members described in clause 2.(h)(ii) who were still in office
                at the time such election or nomination was approved by the Board.
                

            

    

    

    
      	 	
              (n)

            	
              "Continuous
                Service"
                means that the provision of services to the Company or a Related
                Entity in
                any capacity of Employee or Consultant is not interrupted or terminated.
                Continuous Service shall not be considered interrupted in the case
                of (i)
                any approved leave of absence, (ii) transfers between locations of
                the
                Company or among the Company, any Related Entity, or any successor,
                in any
                capacity of Employee, Director or Consultant, or (iii) any change
                in
                status as long as the individual remains in the service of the Company
                or
                a Related Entity in any capacity of Employee, Director or Consultant
                (except as otherwise provided in the Award Agreement). An approved
                leave
                of absence shall include sick leave, military leave, or any other
                authorized personal leave. No such leave may exceed ninety (90) days,
                unless reemployment upon expiration of such leave is guaranteed by
                statute
                or contract.

            

    

    

    
      	 	
              (o)

            	
              "Corporate
                Transaction" means
                any of the following transactions:

            

    

    

    
      	 	 	
              (i)

            	
              a
                merger or consolidation in which the Company is not the surviving
                entity,
                except for a transaction the principal purpose of which is to change
                the
                jurisdiction in which the Company is
                organized;

            

    

    

    
      	 	 	
              (ii)

            	
              the
                sale, transfer or other disposition of all or substantially all of
                the
                assets of the Company (including the capital stock of the Company's
                subsidiary corporations) in connection with the complete liquidation
                or
                dissolution of the Company; or

            

    

    

    
      	 	 	
              (iii)

            	
              any
                reverse merger in which the Company is the surviving entity but in
                which
                securities possessing more than fifty percent (50%) of the total
                combined
                voting power of the Company's outstanding securities are transferred
                to a
                person or persons different from those who held such securities
                immediately prior to such merger.

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (p)

            	
              "Director"
                means a member of the Board or the board of directors of any Related
                Entity.

            

    

    

    
      	 	
              (q)

            	
              "Disability"
                means that a Grantee is unable to carry out the responsibilities
                and
                functions of the position held by the Grantee by reason of any medically
                determinable physical or mental impairment. A Grantee will not be
                considered to have incurred a Disability unless he or she furnishes
                proof
                of such impairment sufficient to satisfy the Administrator in its
                discretion.

            

    

    

    
      	 	
              (r)

            	
              "Eligible
                Employee"
                means any person who is an Employee or a
                Consultant.

            

    

    

    
      	 	
              (s)

            	
              "Employee"
                means any person, including an Officer or Director, who is a full-time
                or
                part-time employee of the Company or any Related Entity.
                

            

    

     

    
      	 	
              (t)

            	
              "Fair
                Market Value"
                means, as of any date, the value of Common Stock determined as
                follows:

            

    

    

    
      	 	 	
              (i)

            	
              Where
                there exists a public market for the Common Stock, the Fair Market
                Value
                shall be (A) the average closing price for a Share for the last seven
                (7) market trading days prior to the time of the determination (or,
                if no
                closing price was reported on those days, on the last seven trading
                days
                on which a closing price was reported) on the stock exchange determined
                by
                the Administrator to be the primary market for the Common Stock or
                the
                NASDAQ National Market, whichever is applicable or (B) if the Common
                Stock is not traded on any such exchange or national market system,
                the
                average of the closing bid and asked prices of a Share on the NASDAQ
                Small
                Cap Market for the seven (7) days prior to the time of the determination
                (or, if no such prices were reported on those days, on the last seven
                days
                on which such prices were reported), in each case, as reported in
                The
                Wall Street Journal
                or
                such other source as the Administrator deems reliable;
                or

            

    

    

    
      	 	 	
              (ii)

            	
              In
                the absence of an established market for the Common Stock of the
                type
                described in 2.(t)(i), above, the Fair Market Value thereof shall
                be
                determined by the Administrator in good
                faith.

            

    

    

    
      	 	
              (u)

            	
              "Grantee"
                means an Eligible Employee who receives an Award pursuant to an Award
                Agreement under the Plan.

            

    

    

    
      	 	
              (v)

            	
              "Insider"
                means:

            

    

    

    
      	 	 	
              (i)

            	
              a
                Director or Senior Officer of the
                Company;

            

    

    

    
      	 	 	
              (ii)

            	
              a
                Director or Senior Officer of a person that is itself an Insider
                or
                Subsidiary of the Company;

            

    

    

    
      	 	 	
              (iii)

            	
              a
                person that has:

            

    

    

    
      	 	 	 	
              A.

            	
              direct
                or indirect beneficial ownership
                of,

            

    

    

    
      	 	 	 	
              B.

            	
              control
                or direction over, or

            

    

    

    
      	 	 	 	
              C.

            	
              a
                combination of direct or indirect beneficial ownership of and control
                or
                direction over

            

    

    

    
      	 	 	 	
              securities
                of the Company carrying more than 10% of the voting rights attached
                to all
                the Company's outstanding voting securities, excluding, for the purpose
                of
                the calculation of the percentage held, any securities held by the
                person
                as underwriter in the course of a distribution,
                or

            

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    
 

    
      	 	 	
              (iv)

            	
              the
                Company itself, if it has purchased, redeemed or otherwise acquired
                any
                securities of its own issue, for so long as it continues to hold
                those
                securities.

            

    

     

    (w) "Officer"
      means a
      person who is an officer, including a Senior Officer, of the Company or a
      Related Entity within the meaning prescribed to under the Securities Act and
      the
      rules and regulations promulgated thereunder.

     

    

    
      	 	
              (x)

            	
              "Option"
                means an option to purchase Shares pursuant to an Award Agreement
                granted
                under the Plan.

            

    

    

    
      	 	
              (y)

            	
              "Parent"
                means a "parent corporation", whether now or hereafter existing,
                which
                holds a majority of the voting shares of the
                Company.

            

    

    

    
      	 	
              (z)

            	
              "Performance
                Shares"
                means Shares or an Award denominated in Shares which may be earned
                in
                whole or in part upon attainment of performance criteria established
                by
                the Administrator not to exceed an aggregate of 7,000,000
                Shares.

            

    

    

    
      	 	
              (aa)

            	
              "Performance
                Units"
                means an Award which may be earned in whole or in part upon attainment
                of
                performance criteria established by the Administrator and which may
                be
                settled for cash, Shares or other securities or a combination of
                cash,
                Shares or other securities as established by the Administrator.
                

            

    

    

    
      	 	
              (bb)

            	
              "Plan"
                means this 2007 Incentive Compensation Plan as approved by Board
                consent
                with effect from March 19th, 2007.

            

    

    

    
      	(cc)  	
              "Related
                Entity"
                means any Parent, Subsidiary and any business, corporation, partnership,
                limited liability company or other entity in which the Company, a
                Parent
                or a Subsidiary holds a substantial ownership interest, directly
                or
                indirectly.

            

    

    

    
      	 	
              (dd)

            	
              "Restricted
                Stock"
                means Shares issued under the Plan to the Grantee for such consideration,
                if any, and subject to such restrictions on transfer, rights of first
                refusal, repurchase provisions, forfeiture provisions, and other
                terms and
                conditions as established by the Administrator.

            

    

    

    
      	 	
              (ee)

            	
              "SAR"
                means a stock appreciation right entitling the Grantee to Shares
                or cash
                compensation, as established by the Administrator, measured by
                appreciation in the value of Common Stock.

            

    

    

    
      	 	
              (ff)

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

            

    

    

    
      	 	
              (gg)

            	
              "Senior
                Officer"
                means:

            

    

    

    
      	 	 	
              (i)

            	
              the
                chair or vice chair of the Board, the president, a vice-president,
                the
                secretary, the treasurer or the general manager of the
                Company;

            

    

    

    
      	 	 	
              (ii)

            	
              any
                individual who performs functions for a person similar to those normally
                performed by an individual occupying any office specified in paragraph
                2.(gg)(i) above, and

            

    

    

    
      	 	 	
              (iii)

            	
              the
                five (5) highest paid employees of the Company, including any individual
                referred to in paragraph 2.(gg)(i) or 2.(gg)(ii) and excluding a
                commissioned salesperson who does not act in a managerial
                capacity.

            

    

    

    
      	 	
              (hh)

            	
              "Share"
                means a share of the Common Stock.

            

    

    

    
      	 	
              (ii)

            	
              "Subsidiary"
                means a "subsidiary corporation", whether now or hereafter existing,
                as
                determined by British Columbia corporate
                law.

            

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (jj)

            	
              "Stock
                Incentive Plan"
                means the current stock option plan and any subsequent such plans
                approved
                by the shareholders of the Company.

            

    

    

    
      	 	
              (kk)

            	
              "Related
                Entity Disposition"
                means the sale, distribution or other disposition by the Company
                of all or
                substantially all of the Company's interests in any Related Entity
                effected by a sale, merger or consolidation or other transaction
                involving
                that Related Entity or the sale of all or substantially all of the
                assets
                of that Related Entity. 

            

    

    

    3.    OPTIONS
      ISSUED UNDER THE PLAN

    

    All
      Options issued under the Plan shall be subject to the provisions of the Stock
      Incentive Plan.

    

    4.    ADMINISTRATION

    

    (a) Plan
      Administrator

    

    
      	 	 	
              (i)

            	
              Administration
                with Respect to Eligible Employees.
                With respect to grants of Awards to Eligible Employees, the Plan
                shall be
                administered by (A) the Board or (B) a Committee designated by the
                Board,
                which Committee shall be constituted in such a manner as to satisfy
                the
                Applicable Laws. Once appointed, such Committee shall continue to
                serve in
                its designated capacity until otherwise directed by the
                Board.

            

    

    

    
      	 	 	
              (ii)

            	
              Administration
                Errors.
                In the event an Award is granted in a manner inconsistent with the
                provisions of this subsection 4(a), such Award shall be presumptively
                valid as of its grant date to the extent permitted by the Applicable
                Laws.
                

            

    

    

    
      	 	
              (b)

            	
              Powers
                of the Administrator.
                Subject to Applicable Laws and the provisions of the Plan (including
                any
                other powers given to the Administrator hereunder), and except as
                otherwise provided by the Board, the Administrator shall have the
                authority, in its discretion:

            

    

    

    
      	 	 	
              (i)

            	
              to
                select the Eligible Employees to whom Awards may be granted from
                time to
                time hereunder;

            

    

    

    
      	 	 	
              (ii)

            	
              to
                determine whether and to what extent Awards are granted
                hereunder;

            

    

    

    
      	 	 	
              (iii)

            	
              to
                determine the number of Performance Shares or the amount of other
                consideration to be covered by each Award granted
                hereunder;

            

    

    

    
      	 	 	
              (iv)

            	
              to
                approve forms of Award Agreements for use under the
                Plan;

            

    

    

    
      	 	 	
              (v)

            	
              to
                determine the terms and conditions of any Award granted
                hereunder;

            

    

    

    

    
      	 	 	
              (vi)

            	
              to
                suspend the right of an Eligible Employee to receive an Award for
                any
                reason that the Administrator considers in the best interest of the
                Company;

            

    

    

    
      	 	 	
              (vii)

            	
              to
                establish additional terms, conditions, rules or procedures to accommodate
                the rules or laws of applicable foreign jurisdictions and to afford
                Grantees favourable treatment under such laws; provided, however,
                that no
                Award shall be granted under any such additional terms, conditions,
                rules
                or procedures with terms or conditions which are inconsistent with
                the
                provisions of the Plan; and 

            

    

    

    
      	 	 	
              (viii)

            	
              to
                take such other action, not inconsistent with the terms of the Plan,
                as
                the Administrator deems appropriate.

            

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (c)

            	
              Effect
                of Administrator's Decision.
                All decisions, determinations and interpretations of the Administrator
                shall be conclusive and binding on all persons. However, the Board
                reserves the right to override such decisions, determinations and
                interpretations of the
                Administrator.

            

    

    

    5.    ELIGIBILITY

    

    Awards
      may be granted to Eligible Employees. An Eligible Employee who has been granted
      an Award may, if otherwise eligible, be granted additional Awards. 

    

    6.    TERMS
      AND CONDITIONS OF AWARDS

    

    
      	 	
              (a)

            	
              Type
                of Awards.
                The Administrator is authorized under the Plan to award any type
                of
                arrangement to an Eligible Employee that is not inconsistent with
                the
                provisions of the Plan and that by its terms involves or might involve
                the
                issuance of (i) Performance Shares, (ii) an Option, (iii) a SAR or
                similar
                right with a fixed or variable price related to the Fair Market Value
                of
                the Shares and with an exercise or conversion privilege related to
                the
                passage of time, the occurrence of one or more events, or the satisfaction
                of performance criteria or other conditions, (iv) cash or (v) any
                other
                security with the value derived from the value of the Shares. Such
                Awards
                may include, without limitation, cash, Shares, Options, SARs, Restricted
                Stock, Performance Units or Performance Shares, and an Award may
                consist
                of one such security or benefit, or two (2) or more of them in any
                combination or alternative.

            

    

    

    
      	 	
              (b)

            	
              Designation
                of Award.
                Each Award shall be designated in the Award
                Agreement.

            

    

    

    
      	 	
              (c)

            	
              Conditions
                of Award.
                Subject to the terms of the Plan and Applicable Laws, the Administrator
                shall determine the provisions, terms, and conditions of each Award
                including, but not limited to, the Award vesting schedule, forfeiture
                provisions, form of payment (cash, Shares, or other consideration)
                upon
                settlement of the Award, and satisfaction of any performance criteria.
                The
                performance criteria established by the Administrator may be based
                on any
                one of, or combination of, economic value added, market value added,
                achievement of individual or corporate objectives, or other measures
                of
                performance selected by the Administrator. Partial achievement of
                the
                specified criteria may result in a payment or vesting corresponding
                to the
                degree of achievement as specified in the Award Agreement.
                

            

    

    

    
      	 	
              (d)

            	
              Acquisitions
                and Other Transactions.
                The Administrator may issue Awards under the Plan in settlement,
                assumption or substitution for, outstanding awards or obligations
                to grant
                future awards in connection with the Company or a Related Entity
                acquiring
                another entity, an interest in another entity or an additional interest
                in
                a Related Entity whether by merger, stock purchase, asset purchase
                or
                other form of transaction.

            

    

    

    
      	 	
              (e)

            	
              Deferral
                of Award Payment.
                The Administrator may establish one or more programs under the Plan
                to
                permit selected Grantees the opportunity to elect to defer receipt
                of
                consideration upon an Award, satisfaction of performance criteria,
                or
                other event that absent the election would entitle the Grantee to
                payment
                or receipt of Shares or other consideration under an Award. The
                Administrator may establish the election procedures, the timing of
                such
                elections, the mechanisms for payments of, and accrual of interest
                or
                other earnings, if any, on amounts, Shares or other consideration
                so
                deferred, and such other terms, conditions, rules and procedures
                that the
                Administrator deems advisable for the administration of any such
                deferral
                program.

            

    

    

    
      	 	
              (f)

            	
              Award
                Exchange Programs.
                The Administrator may establish one or more programs under the Plan
                to
                permit selected Grantees to exchange an Award under the Plan for
                one or
                more other types of Awards under the Plan on such terms and conditions
                as
                determined by the Administrator from time to time.
                

            

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (g)

            	
              Separate
                Programs.
                The Administrator may establish one or more separate programs under
                the
                Plan for the purpose of issuing particular forms of Awards to one
                or more
                classes of Grantees on such terms and conditions as determined by
                the
                Administrator from time to time.

            

    

     

    
      	 	
              (h)

            	
              Term
                of Award.
                The term of each Award shall be the term stated in the Award
                Agreement.

            

    

    

    
      	 	
              (i)

            	
              Transferability
                of Awards.
                Awards shall be transferable to the extent provided in the Award
                Agreement.

            

    

    

    
      	(j)  	
              Time
                of Granting Awards.
                The date of grant of an Award shall for all purposes be the date
                on which
                the Administrator makes the determination to grant such Award, or
                such
                other date as is determined by the Administrator. Notice of the grant
                determination shall be given to each Employee or Consultant to whom
                an
                Award is so granted within a reasonable time after the date of such
                grant.

            

    

    

    
      	(k)  	
              Termination
                of Continuous Service.
                If Continuous Service is terminated by the Company or a Related Party
                for
                Cause, or by a Grantee voluntarily, any unvested benefits under the
                Plan
                will expire. If Continuous Service is terminated by retirement, death
                or
                Disability of a Grantee, or by the Company for other than Cause,
                unvested
                benefits will be earned in accordance with the vesting schedule in
                the
                Award Agreement.

            

    

    

    
      	(l)  	
              Shares
                Reserved.

            

    

    

    (a) Pool. The
      aggregate number of shares of Stock that may be issued under this Plan will
      not
      exceed Seven
      Million Shares
      (7,000,000)
      (the
“Pool”).

    

    (b) Adjustments
      Upon Changes in Stock. In
      the
      event of any change in the outstanding Stock of the Company as a result of
      a
      stock split, reverse stock split, stock dividend, recapitalization, combination
      or reclassification, appropriate proportionate adjustments will be made in:
      (i)
      the aggregate number of shares of Stock in the Pool that may be issued
      hereunder; (ii) other rights and matters determined on a per share basis under
      this Plan hereunder. Any such adjustments will be made only by the Board, and
      when so made will be effective, conclusive and binding for all purposes with
      respect to this Plan. No such adjustments will be required by reason of the
      issuance or sale by the Company for cash or other consideration of additional
      shares of its Stock or securities convertible into or exchangeable for shares
      of
      its Stock.

    

    7.    CONDITIONS
      UPON ISSUANCE OF SHARES

    

    
      	 	
              (a)

            	
              Shares
                shall not be issued pursuant to an Award unless such Award and the
                issuance and delivery of such Shares pursuant thereto shall comply
                with
                all Applicable Laws, and shall be further subject to the approval
                of
                counsel for the Company with respect to such
                compliance.

            

    

    

    
      	 	
              (b)

            	
              As
                a condition to an Award, the Company may require the person receiving
                Performance Shares to represent and warrant at the time of any such
                Award
                that the Shares are 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 any Applicable Laws.

            

    

    

    8.    CORPORATE
      TRANSACTIONS/CHANGES IN CONTROL/RELATED ENTITY
      DISPOSITIONS

    

    Except
      as
      may be provided in an Award Agreement the Administrator shall have the
      authority, exercisable either in advance of any actual or anticipated Corporate
      Transaction, Change in Control or Related Entity Disposition or at the time
      of
      an actual Corporate Transaction, Change in Control or Related Entity Disposition
      at the time of the grant of an Award under the Plan or any time while an Award
      remains outstanding, to provide for the full automatic vesting of one or more
      outstanding unvested Awards under the Plan and the release from restrictions
      on
      transfer and repurchase or forfeiture rights of such Awards in connection with
      a
      Corporate Transaction, Change in Control or Related Entity Disposition, on
      such
      terms and conditions as the Administrator may specify. The Administrator also
      shall have the authority to condition any such Award vesting or release from
      such limitations upon the subsequent termination of the Continuous Service
      of
      the Grantee within a specified period following the effective date of the
      Corporate Transaction, Change in Control or Related Entity Disposition. The
      Administrator may provide that any Awards so vested or released from such
      limitations in connection with a Change in Control or Related Entity Disposition
      shall remain fully vested or released until the termination of the Award.
      Effective upon the consummation of a Corporate Transaction, all outstanding
      Awards under the Plan shall terminate unless assumed by the successor company
      or
      its parent.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    9.    EFFECTIVE
      DATE AND TERM OF PLAN

    

    The
      Plan
      shall become effective as of March 19, 2007. It shall continue in effect until
      March 19, 2011 unless sooner terminated. 

    

    10.    AMENDMENT,
      SUSPENSION OR TERMINATION OF THE PLAN

    

    
      	 	
              (a)

            	
              The
                Board may at any time amend, suspend or terminate the Plan. To the
                extent
                necessary to comply with Applicable Laws, the Company shall obtain
                shareholder approval of any Plan amendment in such a manner and to
                such a
                degree as required.

            

    

    

    
      	 	
              (b)

            	
              No
                Award may be granted during any suspension of the Plan or after
                termination of the Plan.

            

    

    

    
      	 	
              (c)

            	
              Any
                amendment, suspension or termination of the Plan (including termination
                of
                the Plan under Section 10.(a), above) shall not affect Awards already
                granted, and such Awards shall remain in full force and effect as
                if the
                Plan had not been amended, suspended or terminated, unless mutually
                agreed
                otherwise between the Grantee and the Administrator, which agreement
                must
                be in writing and signed by the Grantee and the
                Company.

            

    

    

    
      	
              11.

            	
              NO
                EFFECT ON TERMS OF EMPLOYMENT/CONSULTING
                RELATIONSHIP

            

    

    

    The
      Plan
      shall not confer upon any Grantee any right with respect to the Grantee's
      Continuous Service, nor shall it interfere in any way with his or her right
      or
      the Company's right to terminate the Grantee's Continuous Service at any time,
      with or without Cause.

    

    12.    NO
      EFFECT ON RETIREMENT AND OTHER BENEFIT PLANS

    

    Except
      as
      specifically provided in a retirement or other benefit plan of the Company
      or a
      Related Entity, Awards shall not be deemed compensation for purposes of
      computing benefits or contributions under any retirement plan of the Company
      or
      a Related Entity, and shall not affect any benefits under any other benefit
      plan
      of any kind or any benefit plan subsequently instituted under which the
      availability or amount of benefits is related to level of
      compensation.

    

    13.    GOVERNING
      LAW

    

    The
      Plan
      shall be governed by the laws of the State of New Jersey and the Federal laws
      of
      the United States applicable therein; provided, however, that any Award
      Agreement may provide by its terms that it shall be governed by the laws of
      any
      other jurisdiction as may be deemed appropriate by the parties
      thereto.

     

    
      
        
        

      

      
        13

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