Document:

<PAGE>

                                                                    Exhibit 10.1

                            INDEMNIFICATION AGREEMENT

THIS INDEMNIFICATION AGREEMENT dated this ____ day of April 2005, is made by and
between EpiCept Corporation, a Delaware corporation (the "Company"), and
_____________, a resident of _________ (the "Indemnitee").

                                    RECITALS:

A.    The Company's Amended and Restated Certificate of Incorporation of the
      Company (the "Certificate") provides the Company's directors and officers
      with certain rights to indemnification and advance payment of expenses.

B.    In order to provide such rights pursuant to express contract rights
      intended to be enforceable irrespective of, among other things, any
      amendment to the Company's Certificate or the Company's Amended and
      Restated Bylaws (the "Bylaws"), any change in the composition of the
      Company's Board of Directors, and any change in control or business
      combination transaction relating to the Company, the Company wishes to
      contractually provide in this Agreement for the indemnification of, and
      the advance payment of expenses to, the Indemnitee as set forth in this
      Agreement.

                                   AGREEMENT:

NOW, THEREFORE, for valuable consideration, including without limitation the
agreement by the Indemnitee to serve as a director or an officer of the Company,
the parties agree for themselves, their successors, and assigns, as follows:

1.    INDEMNIFICATION.  The Company shall, to the fullest extent permitted
      under the Delaware General Corporation Law (the "DGCL"), and except as
      set forth below, indemnify, hold harmless and, upon request, advance
      expenses to, the Indemnitee (and the heirs, executors or administrators
      of such Indemnitee) who was or is a party or is threatened to be made a
      party to any threatened, pending or completed action, suit or
      proceeding, whether civil, criminal, administrative or investigative,
      by reason of the fact that he or she is or was, or has agreed to
      become, a director or officer of the Company, or is or was serving, or
      has agreed to serve, at the request of the Company, as a director,
      officer or trustee of, or in a similar capacity with, another
      corporation, partnership, joint venture, trust or other enterprise,
      including any employee benefit plan, or by reason of any action alleged
      to have been taken or omitted in such capacity, against all liability
      and loss suffered and expenses (including attorneys' fees), judgments,
      fines and amounts paid in settlement actually and reasonably incurred
      by him or her or on his or her behalf in connection with such action,
      suit or proceeding and any appeal therefrom, if he or she acted in good
      faith and in a manner he or she reasonably believed to be in, or not
      opposed to, the best interests of the Company, and, with respect to any
      criminal action or proceeding, had no reasonable cause to believe his
      or her

<PAGE>

      conduct was unlawful. Notwithstanding anything to the contrary in this
      Section 1, the Company shall not indemnify an Indemnitee seeking
      indemnification in connection with any action, suit, proceeding, claim or
      counterclaim, or part thereof, initiated by the Indemnitee unless the
      initiation thereof was authorized in the specific case by the Board of
      Directors of the Company.

2.    ADVANCE PAYMENT OF EXPENSES.

      (a)   The Company shall, to the fullest extent not prohibited by
            applicable law, advance payment of expenses (including attorneys'
            fees) incurred by any Indemnitee in defending any proceeding in
            advance of the final disposition of any such proceeding.  In
            consideration of the payment of such expenses, the Indemnitee
            hereby undertakes and agrees to repay to the Company any amount
            so paid by the Company in the event that it shall ultimately be
            determined that the Indemnitee is not entitled to be indemnified
            by the Company against such expenses in accordance with the terms
            of this Agreement

      (b)   Within ten business days after any written request for payment by
            the Indemnitee, the Company shall, in accordance with such
            request (but without duplication): (1) pay such expenses on
            behalf of the Indemnitee; (2) advance to the Indemnitee funds in
            an amount sufficient to pay such expenses; or (3) reimburse the
            Indemnitee for such expenses.  The Indemnitee shall repay,
            without interest, any amounts actually advanced to the Indemnitee
            by the Company that, at the final disposition of the proceeding
            to which the advance was related, were in excess of the amounts
            paid or payable by the Indemnitee in respect of expenses relating
            to, arising out of, or resulting from such proceeding.

3.    PROCEDURE FOR NOTIFICATION.  To obtain indemnification under this
      Agreement, the Indemnitee shall submit to the Company a written request
      therefor, including a brief description (based upon information then
      available to the Indemnitee) of the applicable liability and expenses.
      If, at the time of the receipt of such request, the Company has
      directors' and officers' liability insurance in effect under which
      coverage for such liability and expenses is potentially available, the
      Company shall give prompt written notice of such liability and expenses
      to the applicable insurers in accordance with the procedures set forth
      in the applicable policies.  The Company shall provide to the
      Indemnitee a copy of such notice delivered to the applicable insurers.
      The failure by the Indemnitee to timely notify the Company of any
      liability or expenses shall not relieve the Company from any liability
      hereunder unless, and only to the extent that, the Company did not
      otherwise learn of such liability or expenses and such failure results
      in forfeiture by the Company of substantial defenses, rights, or
      insurance coverage.

4.    INSURANCE.  For the duration of the Indemnitee's service as a director
      or officer of the Company and thereafter for so long as the Indemnitee
      shall be subject to any

                                       2
<PAGE>

      pending or possible proceeding, the Company shall use commercially
      reasonable efforts (taking into account the scope and amount of coverage
      available relative to the cost thereof) to cause to be maintained in
      effect policies of directors' and officers' liability insurance providing
      coverage for directors and officers of the Company that is at least
      substantially comparable in scope and amount to that provided by the
      Company's policies of directors' and officers' liability insurance in
      effect as of the date of this Agreement.

5.    SUBROGATION.  In the event of payment under this Agreement, the Company
      shall be subrogated to the extent of such payment to all of the related
      rights of recovery of the Indemnitee against other persons or entities
      (other than the Indemnitee's successors).  The Indemnitee shall execute
      all papers reasonably required to evidence such rights (all of the
      Indemnitee's reasonable expenses, including attorneys' fees and
      charges, related thereto to be reimbursed by or, at the option of the
      Indemnitee, advanced by the Company).

6.    NO DUPLICATION OF PAYMENTS. The Company shall not be liable under this
      Agreement to make any payment to the Indemnitee in respect of any
      liability or expenses to the extent the Indemnitee has otherwise actually
      received payment under the Certificate, the Bylaws, or any law, statute,
      rule, agreement, insurance policy, or otherwise in respect of such
      liability or expenses otherwise indemnifiable hereunder.

7.    NON-EXCLUSIVITY.  The rights of the Indemnitee hereunder will be in
      addition to and not exclusive of any other rights provided under the
      Certificate, the Bylaws, or any law, statute, rule, agreement,
      insurance policy, or otherwise.  No amendment, termination, or repeal
      of any provision of the Certificate, the Bylaws, or any provision of
      any applicable law, statute, or rule subsequent to the date of this
      Agreement shall eliminate or diminish in any way the rights of the
      Indemnitee arising under this Agreement, whether the proceeding giving
      rise to the necessity for such indemnification arose before or after
      any such amendment, termination, or repeal.

8.    SUCCESSORS AND BINDING AGREEMENT.

      (a)   The Company shall require any successor (whether direct or
            indirect, by purchase, merger, consolidation, reorganization, or
            otherwise) to all or substantially all of the business or assets
            of the Company, by agreement in form and substance satisfactory
            to the Indemnitee and the Indemnitee's counsel, to expressly
            assume and agree to perform this Agreement in the same manner and
            to the same extent the Company would be required to perform if no
            such succession had taken place.  This Agreement shall be binding
            upon and inure to the benefit of the Company and any successor to
            the Company, including without limitation any person acquiring
            directly or indirectly all or substantially all of the business
            or assets of the Company whether by purchase, merger,
            consolidation, reorganization, or

                                       3
<PAGE>

            otherwise (and such successor will thereafter be deemed the
            "Company" for purposes of this Agreement), but shall not otherwise
            be assignable or delegatable by the Company.

      (b)   The rights of the Indemnitee contained in this Agreement shall inure
            to the benefit of and be enforceable by the Indemnitee and the
            Indemnitee's personal or legal representatives, executors,
            administrators, heirs, distributees, legatees, and other successors.

      (c)   Except as provided in this Section 8, this Agreement and the rights
            and obligations provided herein may not be assigned, transferred, or
            delegated.

9.    NOTICES.  For all purposes of this Agreement, all communications,
      including without limitation notices, consents, requests, or approvals,
      required or permitted to be given hereunder shall be in writing and
      shall be deemed to have been duly given when hand delivered or
      dispatched by electronic facsimile transmission (with receipt thereof
      electronically confirmed), or five business days after having been
      mailed by United States registered or certified mail, return receipt
      requested, postage prepaid, or one business day after having been sent
      for next-day delivery by a nationally recognized overnight courier
      service, addressed to the Company (to the attention of the Secretary of
      the Company) and to the Indemnitee at the applicable address shown on
      the signature page hereto, or to such other address as any party may
      have furnished to the other in writing and in accordance herewith,
      except that notices of changes of address will be effective only upon
      receipt.

10.   AMENDMENT AND MODIFICATION.  This Agreement may not be modified,
      changed, or amended, and any obligations under this Agreement may not
      be waived, except by written agreement properly executed by all the
      parties hereto.

11.   SEVERABILITY.  It is the desire and intent of the parties that the
      provisions of this Agreement be enforced to the fullest extent
      permissible under the law and public policies applied in each
      jurisdiction in which enforcement is sought.  Accordingly, in the event
      that any provision of this Agreement would be held in any jurisdiction
      to be invalid, prohibited, or unenforceable for any reason, such
      provision, as to such jurisdiction, shall be ineffective, without
      invalidating the remaining provisions of this Agreement or affecting
      the validity or enforceability of such provision in any other
      jurisdiction.  Notwithstanding the foregoing, if such provision could
      be more narrowly drawn so as not to be invalid, prohibited, or
      unenforceable in such jurisdiction, it shall, as to such jurisdiction,
      be so narrowly drawn, without invalidating the remaining provisions of
      this Agreement or affecting the validity or enforceability of such
      provision in any other jurisdiction.

12.   COUNTERPARTS AND FACSIMILE.  This Agreement may be executed in two or
      more counterparts, each of which will be deemed an original, but all of
      which together will constitute one and the same instrument.  This
      Agreement, and any amendments hereto, to the extent signed and
      delivered by means of a facsimile machine, shall be treated in all
      manner and respects as an original and shall be

                                        4
<PAGE>

      considered to have the same binding legal effects as if it were the
      original signed version thereof delivered in person.

13.   GOVERNING LAW. Any and all disputes between the parties in any way related
      to this Agreement, including all matters of construction, validity, and
      performance of the Agreement, will be governed by and construed in
      accordance with the substantive laws of the State of Delaware, without
      giving effect to the conflict of laws rules thereof.

14.   ENTIRE AGREEMENT.  This Agreement constitutes the entire agreement
      between the parties with respect to the matters addressed herein, and
      neither of the parties will be bound by any prior oral agreement,
      condition, stipulation, representation, or understanding.

                 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
                            [SIGNATURE PAGE FOLLOWS]

                                        5
<PAGE>

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

                                    EPICEPT CORPORATION
                                    270 SYLVAN AVENUE
                                    ENGLEWOOD CLIFFS, NEW JERSEY  07632

                                    By:
                                       ---------------------------------
                                    Name:
                                         -------------------------------
                                    Title:
                                          ------------------------------

                                    INDEMNITEE:

                                    ADDRESS:
                                             ---------------------------

                                             ---------------------------

                                    ------------------------------------

                                    Name:
                                         -------------------------------

                                        6<PAGE>

                                                                    EXHIBIT 10.3

                               EPICEPT CORPORATION

                           2005 EQUITY INCENTIVE PLAN

      1. PURPOSE. The EpiCept Corporation 2005 Equity Incentive Plan (the
"Plan") is intended to attract, retain and motivate officers and employees of,
consultants to, and non-employee directors providing services to the EpiCept
Corporation (the "Company") and its subsidiaries and affiliates by providing
them with appropriate incentives and rewards either through a proprietary
interest in the long-term success of the Company or compensation based on their
performance in fulfilling their personal responsibilities.

      2. ADMINISTRATION.

      (a) Committee. The Plan will be administered by a committee (the
"Committee") appointed by the Board of Directors of the Company (the "Board")
from among its members and shall be comprised, unless otherwise determined by
the Board, of not less than two (2) members each of whom shall be (i) a
"Non-Employee Director" within the meaning of Rule 16b-3(b)(3) (or any successor
rule) promulgated under the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), (ii) "outside directors" within the meaning of Treasury
Regulation Section 1.162-27(e)(3) under Section 162(m) of the Internal Revenue
Code of 1986, as amended (the "Code"), and (iii) an "independent directors"
within the meaning of the listing requirements of the NASDAQ (and each other
exchange on which the Company may be listed).

      (b) Authority. The Committee is authorized, subject to the provisions of
the Plan, to establish such rules as it deems necessary for the proper
administration of the Plan and to make such determinations and interpretations
in its sole discretion and to take such action in connection with the Plan and
any awards granted hereunder as it deems necessary or advisable, including the
right to accelerate the vesting or exerciseability of awards, establish the
terms and conditions of awards and cancel awards upon a Change of Control. All
determinations and interpretations made by the Committee shall be binding and
conclusive on all participants and their legal representatives.

      (c) Indemnification. Except in circumstances involving bad faith or
willful misconduct of the person acting or failing to act, no member of the
Committee and no employee of the Company shall be liable for any act or failure
to act hereunder or for any act or failure to act hereunder by any other member
or employee or by any agent to whom duties in connection with the administration
of this Plan have been delegated. The Company shall indemnify members of the
Committee and any agent of the Committee who is an employee of the Company, a
subsidiary or an affiliate against any and all liabilities or expenses to which
they may be subjected by reason of any act or failure to act with respect to
their duties on behalf of the Plan, except in circumstances involving such
person's bad faith or willful misconduct.

                                       1
<PAGE>

      (d) Delegation and Advisers. The Committee may delegate to one or more of
its members, or to one or more agents, such administrative duties as it may deem
advisable. Any person to whom it has delegated duties as aforesaid may employ
one or more persons to render advice with respect to any responsibility the
Committee or such person may have under the Plan. The Committee may employ such
legal or other counsel, consultants and agents as it may deem desirable for the
administration of the Plan and may rely upon any opinion or computation received
from any such counsel, consultant or agent. Expenses incurred by the Committee
in the engagement of such counsel, consultant or agent shall be paid by the
Company, or the subsidiary or affiliate whose employees have benefited from the
Plan, as determined by the Committee.

      3. PARTICIPANTS. Participants will consist of such officers, employees,
consultants, and non-employee directors of the Company and its subsidiaries and
affiliates as the Committee in its sole discretion determines and whom the
Committee may designate from time to time to receive awards under the Plan.
Designation of a participant in any year shall not require the Committee to
designate such person to receive an award in any other year or, once designated,
to receive the same type or amount of award as granted to the participant in any
other year. The Committee shall consider such factors as it deems pertinent in
selecting participants and in determining the type and amount of their
respective awards.

      4. TYPE OF AWARDS. Awards under the Plan may be granted in any one or a
combination of: (a) stock options, (b) restricted stock, and (c) cash.
Restricted stock, and cash awards may, as determined by the Committee in its
discretion, constitute performance-based awards, as described in Section 8
hereof. Awards granted under the Plan shall be evidenced by agreements (which
need not be identical) that provide additional terms and conditions associated
with such awards, as determined by the Committee in its sole discretion;
provided, however, that in the event of any conflict between the provisions of
the Plan and any such agreement, the provisions of the Plan shall prevail.

      5. COMMON STOCK AVAILABLE UNDER THE PLAN.

      (a) Maximum Shares. The aggregate number of shares of common stock of the
Company, par value $0.0001("Shares") that may be issued under this Plan shall be
4,000,000 Shares, which may be authorized and unissued or treasury Shares,
subject to Section 5(c) hereof and Section 11 hereof ("Maximum Shares"). The
maximum number of Shares with respect to which awards may be granted or measured
to any individual participant under the Plan in any calendar year during the
term of the Plan shall not exceed 1,500,000 Shares (subject to adjustments made
in accordance with Section 11 hereof) (the "Individual Maximum").

      (b) Counting Shares. Shares shall be charged against the Maximum Shares
and Individual Maximum, and, if applicable, the ISO Maximum, upon the grant of
each award (other than cash awards to be settled only in cash and performance
based awards

                                       2
<PAGE>

which are not denominated in common stock) regardless of the vested status of
the award.

      (c) Additional Shares. Any Shares subject to an outstanding award granted
under the Plan which are, for any reason, forfeited, expired, canceled or
settled in cash without delivery to the award recipient of Shares, shall again
be available for awards under the Plan.

Any Shares delivered to the Company as part or full payment for the exercise or
purchase price of an award granted under this Plan or, to the extent the
Committee determines that the availability of ISOs under the Plan will not be
compromised to satisfy the Company's withholding obligation with respect to an
award granted under this Plan, shall again be available for awards under the
Plan, provided however, that such Shares shall continue to be counted as
outstanding for purposes of determining whether an Individual Maximum has been
attained.

      6. STOCK OPTIONS.

      (a) Generally. Stock options will consist of awards from the Company that
will enable the holder to purchase a number of Shares at set terms. Options
shall be either incentive stock options or nonqualified stock options. The
Committee shall have the authority to grant to any participant stock options. A
stock option granted as an incentive stock option shall, to the extent it fails
to qualify as an incentive stock option, be treated as a nonqualified option.
Each stock option shall be subject to such terms and conditions, including
vesting, consistent with the Plan as the Committee may impose from time to time,
subject to the following limitations.

      (b) Exercise Price. Each stock option granted hereunder shall have such
per-Share exercise price as the Committee may determine at the date of grant.
Except as hereafter provided, the per-Share exercise price of a stock option
shall not be less than the fair market value (as defined in Section 15 of the
Plan) of a Share on the date of grant; provided, however, that if a stock option
is granted to a participant upon assumption of or in substitution of an award
granted by another entity in connection with a corporate transaction between the
Company and the granting entity, such as a merger, consolidation or acquisition,
the exercise price may be less than fair market value of a Share on the date the
substitute stock option is granted if the aggregate fair market value of the
Shares subject to the substitute stock option over the aggregate exercise price
of the substitute stock option does not exceed the aggregate fair market value
of the shares of the predecessor entity subject to the award being assumed or
substituted as of the date immediately preceding the corporate transaction (as
determined by the Committee), over the aggregate grant price or exercise price
of any such award.

      (c) Payment of Exercise Price. The option exercise price may be paid in
cash or, in the discretion of the Committee, by the delivery of Shares. In the
discretion of the Committee, payment may also be made by delivering a properly
executed exercise notice to the Company together with a copy of irrevocable
instructions to a broker to deliver

                                       3
<PAGE>

promptly to the Company the amount of sale proceeds to pay the exercise price.
The Committee may prescribe any other method of paying the exercise price that
it determines to be consistent with applicable law and the purpose of the Plan.

      (d) Exercise Period. Stock options granted under the Plan shall be
exercisable to the extent vested, at such time or times and subject to such
terms and conditions as shall be determined by the Committee; provided, however,
that no stock option shall be exercisable later than ten (10) years after the
date it is granted except in the event of a participant's death within six (6)
months prior to such expiration date, in which case, the exercise period of such
participant's stock options may be extended beyond such period but no later than
one (1) year after the participant's death. All stock options shall terminate at
such earlier times and upon such conditions or circumstances as the Committee
shall in its discretion set forth in such option agreement at the date of grant.

      (e) Limitations on Incentive Stock Options. Incentive stock options may be
granted only to participants who are employees of the Company or of a "parent
corporation" or "subsidiary corporation" (as defined in Sections 424(e) and (f)
of the Code, respectively) at the date of grant. The aggregate fair market value
(determined as of the time the stock option is granted) of the Shares with
respect to which incentive stock options are exercisable for the first time by a
participant during any calendar year (under all option plans of the Company and
of any parent corporation or subsidiary corporation) shall not exceed one
hundred thousand dollars ($100,000). For purposes of the preceding sentence,
incentive stock options will be taken into account in the order in which they
are granted. The per-Share exercise price of an incentive stock option shall not
be less than 100% of the fair market value of the common stock on the date of
grant, and no incentive stock option may be exercised later than 10 years after
the date it is granted or, in the case of the death of a participant, such
longer period as permitted by Section 6(d).

      (f) Additional Limitations on Incentive Stock Options for Ten Percent
Shareholders. Incentive stock options may not be granted to any participant who,
at the time of grant, owns stock possessing (after the application of the
attribution rules of Section 424(d) of the Code) more than 10% of the total
combined voting power of all classes of stock of the Company or any parent
corporation or subsidiary corporation, unless the exercise price of the option
is fixed at not less than 110% of the fair market value of the common stock on
the date of grant and the exercise of such option is prohibited by its terms
after the expiration of five years from the date of grant of such option or, in
the case of the death of a participant, such longer period as permitted by
Section 6(d).

      7. RESTRICTED STOCK AWARDS.

      (a) Generally. The Committee may, in its discretion, grant restricted
stock awards consisting of common stock issued or transferred to participants
with or without other payments therefor, which are subject to transferability
restrictions and/or a substantial risk of forfeiture. Restricted stock awards
shall be construed as an offer by

                                       4
<PAGE>

the Company to the participant to purchase the number of shares of common stock
subject to the restricted stock award at the purchase price, if any, established
therefor, and shall be subject to acceptance by a participant.

      (b) Payment of the Purchase Price. If a restricted stock award requires
payment therefor, the purchase price of any shares of common stock subject to a
restricted stock award may be paid in any manner authorized by the Committee,
which may include any manner authorized under the Plan for the payment of the
exercise price of a stock option. Restricted stock awards may also be made in
consideration of services rendered to the Company or its subsidiaries or
affiliates.

      (c) Additional Terms. Restricted stock awards may be subject to such terms
and conditions, including vesting, as the Committee determines appropriate,
including, without limitation, restrictions on the sale or other disposition of
such shares, the right of the Company to reacquire such shares for no
consideration upon termination of the participant's employment within specified
periods, and may constitute performance-based awards, as described in Section 8
hereof. The Committee may require the participant to deliver a duly signed stock
power, endorsed in blank, relating to the common stock covered by such an award.
The Committee may also require that the stock certificates evidencing such
shares be held in custody or bear restrictive legends until the restrictions
thereon shall have lapsed.

      (d) Rights as a Shareholder. Holders of restricted stock awards have the
right to receive dividends and to vote the shares; provided, however, unless the
Committee or the award agreement provides otherwise, dividends on restricted
stock awards shall be held in escrow and shall be payable, at such time as the
restrictions on the shares lapse, in either cash, shares or if applicable the
kind of property distributed as a dividend or any combination thereof.

      8. CASH AWARDS. The Committee may grant awards to be settled in cash;
provided, however, that non-employee directors shall not be eligible for cash
awards. Cash awards may be subject to such terms and conditions, including
vesting, as the Committee determines to be appropriate. Cash awards may
constitute performance-based awards, as described in Section 9 hereof. The
Company may, in its discretion, permit participants to defer settlement of cash
awards. The maximum award that may be granted to any participant as a cash award
in any calendar year is $1,500,000.00.

      9. PERFORMANCE-BASED AWARDS.

      (a) Generally. Any awards granted under the Plan may be granted in a
manner such that the awards qualify for the performance-based compensation
exemption of Section 162(m) of the Code ("performance-based awards"). As
determined by the Committee in its sole discretion, either the granting or
vesting of such performance-based awards shall be based on achievement of hurdle
rates, growth rates, and/or reductions in one or more business criteria
determined by the Committee that apply to the individual participant, one or
more business units or the Company as a whole.

                                       5
<PAGE>

      (b) Establishment of Performance Goals. With respect to performance-based
awards, the Committee shall establish in writing (i) the performance goals
applicable to a given period, and such performance goals shall state, in terms
of an objective formula or standard, the method for computing the amount of
compensation payable to the participant if such performance goals are obtained
and (ii) the individual employees or class of employees to which such
performance goals apply no later than 90 days after the commencement of such
period (but in no event after 25% of such period has elapsed).

      (c) Certification of Performance. No performance-based awards shall be
payable to or vest with respect to, as the case may be, any participant for a
given period until the Committee certifies in writing that the objective
performance goals (and any other material terms) applicable to such period have
been satisfied.

      (d) Modification of Performance-Based Awards. With respect to any awards
intended to qualify as performance-based awards, after establishment of a
performance goal, the Committee shall not revise such performance goal or
increase the amount of compensation payable thereunder (as determined in
accordance with Section 162(m) of the Code) upon the attainment of such
performance goal. However, the measurement of performance against goals shall
exclude the impact of charges for restructurings, discontinued operations,
extraordinary items and other unusual or non-recurring items, and the cumulative
effects of accounting changes, each as defined by generally accepted accounting
principles as identified in the financial statements, notes to the financial
statements or management's discussion or analysis. In accordance with Section
162(m) of the Code, the Committee may only exercise negative discretion with
respect to the amount of a performance-based award.

      10. FOREIGN LAWS. The Committee may grant awards to individual
participants who are subject to the tax laws of nations other than the United
States, which awards may have terms and conditions as determined by the
Committee as necessary to comply with applicable foreign laws. The Committee may
take any action which it deems advisable to obtain approval of such awards by
the appropriate foreign governmental entity; provided, however, that no such
awards may be granted pursuant to this Section 10 and no action may be taken
which would result in a violation of the Exchange Act, the Code or any other
applicable law.

      11. ADJUSTMENT PROVISIONS; CHANGE OF CONTROL.

      (a) Adjustment Generally. If there shall be any change in the common stock
of the Company, through merger, consolidation, reorganization, recapitalization,
stock or special one-time cash dividend, stock split, reverse stock split, split
up, spin-off, combination of shares, exchange of shares, dividend in kind or
other like change in capital structure or distribution (other than normal cash
dividends) to stockholders of the Company, an adjustment shall be made to each
outstanding award such that each such award shall thereafter be exercisable for
such securities, cash and/or other property as would have been received in
respect of the common stock subject to such award had such

                                       6
<PAGE>

award been exercised in full immediately prior to such change or distribution,
and such an adjustment shall be made successively each time any such change
shall occur.

      (b) Modification of Awards. In the event of any change or distribution
described in subsection (a) above, in order to prevent dilution or enlargement
of participants' rights under the Plan, the Committee will have authority to
adjust, in an equitable manner, the number and kind of shares that may be issued
under the Plan, the number and kind of shares subject to outstanding awards, the
exercise price applicable to outstanding awards, and the fair market value of
the common stock and other value determinations applicable to outstanding
awards; provided, however, that any such arithmetic adjustment to a
performance-based award shall not cause the amount of compensation payable
thereunder to be increased from what otherwise would have been due upon
attainment of the unadjusted award. Appropriate adjustments may also be made by
the Committee in the terms of any awards under the Plan to reflect such changes
or distributions and to modify any other terms of outstanding awards on an
equitable basis, including modifications of performance targets and changes in
the length of performance periods; provided, however, that any such arithmetic
adjustment to a performance-based award shall not cause the amount of
compensation payable thereunder to be increased from what otherwise would have
been due upon attainment of the unadjusted award. In addition, other than with
respect to stock options and other awards intended to constitute
performance-based awards, the Committee is authorized to make adjustments to the
terms and conditions of, and the criteria included in, awards in recognition of
unusual or nonrecurring events affecting the Company or the financial statements
of the Company, or in response to changes in applicable laws, regulations, or
accounting principles.

      (c) Effect of a Change of Control. Notwithstanding any other provision of
this Plan, if there is a Change of Control (as defined in subsection (d) below)
of the Company, the Committee may provide at anytime prior to the Change of
Control that all then outstanding stock options and unvested cash awards shall
immediately vest and become exercisable and any restrictions on restricted stock
awards shall immediately lapse. In addition, the Committee may provide that all
awards held by participants who are at the time of the Change of Control in the
service of the Company a subsidiary or affiliate shall remain exercisable for
the remainder of their terms notwithstanding any subsequent termination of a
participant's service. All awards shall be subject to the terms of any agreement
effecting the Change of Control, which agreement may provide, without
limitation, that in lieu of continuing the awards, each stock option outstanding
hereunder shall terminate within a specified number of days after notice to the
holder, and that such holder shall receive, with respect to each share of common
stock subject to such stock option, an amount equal to the excess of the fair
market value of such shares of common stock immediately prior to the occurrence
of such Change of Control over the exercise price (or base price) per Share
underlying such stock option with such amount payable in cash, in one or more
kinds of property (including the property, if any, payable in the transaction)
or in a combination thereof, as the Committee, in its discretion, shall
determine. A provision like the one contained in the preceding sentence shall be
inapplicable to a stock option granted within 6 months before the occurrence of
a Change

                                       7
<PAGE>

of Control if the holder of such stock option is subject to the reporting
requirements of Section 16(a) of the Exchange Act and no exception from
liability under Section 16(b) of the Exchange Act is otherwise available to such
holder.

      (d) Definitions.

            (i) For purposes of this Section 11, a "Change of Control" of the
      Company shall be deemed to have occurred upon any of the following events:

                  (A) Any person(s), as such term is defined in Section 13(d) of
            the Exchange Act as of the Effective Date, or group of persons,
            becomes directly or indirectly, a "beneficial owner" as such term is
            used as of the Effective Date in Rule 13d-3 promulgated under the
            Exchange Act, of 50% or more of the Voting Securities of the Company
            (measured either by number of Voting Securities or voting power);

                  (B) a majority of the Board of Directors consists of
            individuals other than "Incumbent Directors" which term means the
            members of the Board of Directors on the Effective Date; provided
            that any individual becoming a director subsequent to such date
            whose election or nomination for election was supported (other than
            in connection with any actual or threatened proxy contest) by
            two-thirds of the directors who then comprised the Incumbent
            Directors shall be considered to be an Incumbent Director; or

                  (C) (A) the Company combines with another entity and is the
            surviving entity, or (B) all or substantially all of the assets or
            business of the Company is disposed of pursuant to a sale, merger,
            consolidation, liquidation, dissolution or other transaction or
            series of transactions (collectively, a "Triggering Event") unless
            the holders of Voting Securities of the Company immediately prior to
            such Triggering Event beneficially own, directly or indirectly, by
            reason of their ownership of Voting Securities of the Company
            immediately prior to such Triggering Event, more than 50% of the
            Voting Securities (measured both by number of Voting Securities and
            by voting power) of (x) the Company, in the case of a combination in
            which the Company is the surviving entity and (y) in any other case,
            the entity if any that succeeds to substantially all of the
            Company's business and assets.

            (ii) For purposes of this Section 11, "Voting Securities" shall mean
      issued and outstanding securities of any class or classes having general
      voting power, under ordinary circumstances in the absence of
      contingencies, to elect, the members of the Board of Directors, or other
      governing body, of the Company.

      12.   TERMINATION OF SERVICE.

                                       8
<PAGE>

            (a) Termination (other than for Cause). Unless the Committee or the
      applicable award agreement provides otherwise, if a participant's service
      with the Company or any subsidiary or affiliate terminates for any reason
      other than for "cause" (which shall have the meaning defined in the
      applicable award agreement or, in the absence of such definition shall be
      defined by the Committee).

                  (i) Stock Options. Except as provided in Section 11(c) hereof,
            any outstanding stock options shall expire on the earlier of:

                        (A) the expiration of their term,

                        (B) 90 days following termination of the participant's
                  service other than termination of service on account of death
                  or Disability.

            provided, however, that a participant (or in the case of the
            participant's death or Disability, the participant's representative)
            may exercise all or part of the participant's stock options at any
            time before the expiration of such stock options following
            termination of service only to the extent that the stock options are
            vested on or before the date participant's service terminates. The
            balance of the stock options s (which are not vested on the date
            participant's service terminates) shall lapse when the participant's
            service terminates.

            If by virtue of this provision, an incentive stock option is not
            exercised within three (3) months after a participant's employment
            terminates, then unless such participant's employment termination is
            due to his or her death or Disability (defined for this purpose only
            as described in Section 22(e)(3) of the Code), the incentive stock
            option shall be treated as a nonqualified stock option.

                  (ii) Restricted Stock Awards. All unvested restricted stock
            awards shall expire upon termination of service.

                  (iii) Cash Awards/Performance-Based Awards. All cash awards
            and performance-based awards shall be forfeited upon termination of
            service.

            (b) Termination of Service (for Cause). All of a participant's
      awards (including any exercised stock options for which shares or cash
      have not been delivered to the participant) shall be cancelled and
      forfeited immediately on the date of the participant's termination of
      service with the Company or any subsidiary if such termination is for
      cause or cause exists on such date, and the Company shall return to the
      participant the price (if any) paid for any undelivered shares. Should a
      participant die at a time when cause exists, all of the participant's
      awards (including any exercised stock options for which shares have not
      been delivered to the participant) shall be cancelled and forfeited
      immediately as of the date of the participant's death.

            (c) Leave of Absence. For purposes of this Section 12, service shall
      be deemed to continue while the participant is on a bona fide leave of
      absence, if such leave was approved by the Company in writing or if
      continued crediting of service for this

                                       9
<PAGE>

      purpose is expressly required by the terms of such leave or by applicable
      law (as determined by the Committee).

            13. NONTRANSFERABILITY. Each award granted under the Plan to a
      participant shall not be transferable except by will or the laws of
      descent and distribution or as permitted by the Committee to a
      participant's spouse, lineal descendants, siblings, parents, heirs,
      executors, administrators, testamentary trustees, legatees, beneficiaries
      or a trust for the exclusive benefit of any of the foregoing persons, or
      to any charitable organizations described in Section 501(c)(3) of the
      Code, which shall have discretion to permit transferability to third
      parties under such terms and conditions as it shall determine. In the
      event of the death of a participant (which for this purpose only shall
      include any transferee), each stock option theretofore granted to him or
      her shall be exercisable during such period after his or her death as
      described in Section 12 hereof but unless the Committee or the award
      agreement provides otherwise, such award shall only be exercisable by the
      executor or administrator of the estate of the deceased participant or the
      person or persons to whom the deceased participant's rights under the
      stock option shall pass by will or the laws of descent and distribution.

            14. OTHER PROVISIONS. The granting of or distribution under any
      award under the Plan may also be subject to such other provisions (whether
      or not applicable to the awards of any other participant) as the Committee
      determines appropriate, including, without limitation, for the forfeiture
      of, or restrictions on resale or other disposition of, common stock
      acquired under any form of award, for the acceleration of exercisability
      or vesting of awards in the event of a Change of Control, for the payment
      of the value of awards to participants in the event of a Change of
      Control, or to comply with federal and state securities laws, or
      understandings or conditions as to the participant's employment in
      addition to those specifically provided for under the Plan.

            15. FAIR MARKET VALUE. For purposes of this Plan and any awards
      awarded hereunder, fair market value per Share as of a particular date
      shall mean (i) if shares are then listed on a national stock exchange, the
      closing price per Share on the exchange for the last preceding date on
      which there was a sale of shares on such exchange, as determined by the
      Committee, (ii) if shares are not then listed on a national stock exchange
      but are then traded on an over-the-counter market, the average of the
      closing bid and asked prices for such shares in such over-the-counter
      market for the last preceding date on which there was a sale of such
      shares in such market, as determined by the Committee, or (iii) if shares
      are not then listed on a national exchange or traded on an
      over-the-counter market, such value as the Committee in its discretion may
      in good faith determine; provided that, where such shares are so listed or
      traded, the Committee may make discretionary determinations where the
      shares have not been traded for 10 trading days.

            16. WITHHOLDING. All payments or distributions of awards made
      pursuant to the Plan shall be net of any amounts required to be withheld
      pursuant to applicable federal, state and local tax withholding
      requirements at the minimum statutory withholding rates. If the Company
      proposes or is required to distribute common stock

                                      10
<PAGE>

      pursuant to the Plan, it may require the recipient to remit to it or to
      the corporation that employs such recipient an amount sufficient to
      satisfy such tax withholding requirements prior to the delivery of any
      certificates for such common stock. In lieu thereof, the Company or the
      employing corporation shall have the right to withhold the amount of such
      taxes from any other sums due or to become due from such corporation to
      the recipient as the Committee shall prescribe. The Committee may, in its
      discretion and subject to such rules as it may adopt (including any as may
      be required to satisfy applicable tax and/or non-tax regulatory
      requirements), permit an optionee or award or right holder to pay all or a
      portion of the federal, state and local withholding taxes arising in
      connection with any award consisting of shares of common stock by electing
      to have the Company withhold shares of common stock having a fair market
      value equal to the amount of tax to be withheld, such tax calculated at
      minimum statutory withholding rates.

            17. TENURE. A participant's right, if any, to continue to serve the
      Company or any of its subsidiaries or affiliates as an officer, employee,
      or otherwise, shall not be enlarged or otherwise affected by his or her
      designation as a participant under the Plan.

            18. UNFUNDED PLAN. Participants shall have no right, title, or
      interest whatsoever in or to any investments which the Company may make to
      aid it in meeting its obligations under the Plan. Nothing contained in the
      Plan, and no action taken pursuant to its provisions, shall create or be
      construed to create a trust of any kind, or a fiduciary relationship
      between the Company and any participant, beneficiary, legal representative
      or any other person. To the extent that any person acquires a right to
      receive payments from the Company under the Plan, such right shall be no
      greater than the right of an unsecured general creditor of the Company.
      All payments to be made hereunder shall be paid from the general funds of
      the Company and no special or separate fund shall be established and no
      segregation of assets shall be made to assure payment of such amounts
      except as expressly set forth in the Plan. The Plan is not intended to be
      subject to the Employee Retirement Income Security Act of 1974, as
      amended.

            19. NO FRACTIONAL SHARES. No fractional shares of common stock shall
      be issued or delivered pursuant to the Plan or any award. The Committee
      shall determine whether cash, or awards, or other property shall be issued
      or paid in lieu of fractional shares or whether such fractional shares or
      any rights thereto shall be forfeited or otherwise eliminated.

            20. DURATION, AMENDMENT AND TERMINATION. No award shall be granted
      more than 10 years after the Effective Date. The Committee may amend the
      Plan from time to time or suspend or terminate the Plan at any time. No
      amendment of the Plan may be made without approval of the stockholders of
      the Company if the amendment will: (i) increase the aggregate number of
      shares of common stock that may be delivered through stock options under
      the Plan; (ii) increase the Maximum Shares or the Individual Maximum as
      set forth in Section 5 hereof; (iii) permit the re-pricing of an award to
      a lower exercise price, base price or purchase price, as applicable,
      (including, without limitation, the cancellation of an award followed by a
      re-grant of that award six (6)

                                      11
<PAGE>

      months later); (iv) modify the requirements as to eligibility for
      participation in the Plan; or (v) change the legal entity authorized to
      make awards under the Plan.

            21. GOVERNING LAW. This Plan, awards granted hereunder and actions
      taken in connection herewith shall be governed and construed in accordance
      with the laws of the State of Delaware (regardless of the law that might
      otherwise govern under applicable Delaware principles of conflict of
      laws).

            22. EFFECTIVE DATE. The Plan shall be effective as of
      [____________], the date on which the Plan was adopted by the Board (the
      "Effective Date"), provided that the Plan is approved by the stockholders
      of the Company at an annual meeting or any special meeting of stockholders
      of the Company within 12 months of the Effective Date, and such approval
      of stockholders shall be a condition to the right of each participant to
      receive any awards hereunder. Any awards granted under the Plan prior to
      such approval of stockholders shall be effective as of the date of grant
      (unless, with respect to any award, the Committee specifies otherwise at
      the time of grant), but no such award may be exercised or settled and no
      restrictions relating to any award may lapse prior to such stockholder
      approval, and if stockholders fail to approve the Plan as specified
      hereunder, any such award shall be cancelled.

                                      12
<PAGE>

               SECTION WHERE IMPORTANT TERMS FIRST DEFINED OR USED

<TABLE>
<CAPTION>
   TERM                                 SECTION
<S>                                     <C>
Board                                    2(a)
Cash Award                               8
Cause                                    12(a)
Change of Control                        11(d)(i)
Code                                     2(a)
Committee                                2(a)
Common Stock                             5(a)
Company                                  1
Effective Date                           22
Exchange Act                             2(a)
Fair Market Value                        15
Independent Director                     2(a)
Individual Maximum                       5(a)
Maximum Shares                           5(a)
Non-Employee Director                    2(a)
Parent Corporation                       6(e)
Performance-Based Awards                 9(a)
Plan                                     1
Restricted Stock Award                   7
Share                                    5(a)
Stock Options                            6
Subsidiary Corporation                   6(e)
Voting Securities                        11(d)(ii)
</TABLE>

                                      13

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}]]