Document:

ASYS 6.30.15-EX10.5

EXECUTION COPY

Kingstone Technology Hong Kong Limited
 (“Existing Shareholder”)

vs

Suzhou Zhuo Jing Investment Center (LP)
 (“New Shareholder”)

regarding

Shanghai Kingstone Semiconductor Company, Ltd.

Investment Agreement

**This executed agreement is written in both English and Chinese. Both versions are equally binding. The Chinese language version of this agreement is available upon request from Amtech Systems, Inc.

 Investment Agreement

This “Investment Agreement” (hereinafter referred to that the “Agreement”) is signed by the following parties on July 17, 2015 in Pudong New District, Shanghai, People’s Republic of China (hereinafter referred to as “China”):

		
	1.
	Kingstone Technology Hong Kong Limited

Registered Address:
Room 1501, SPA Centre, 53-55 Lockhart Road, Wanchai, Hong Kong
Company Number: 1498928

		
	2.
	Suzhou Zhuo Jing Investment Center (LP)

Address: 558 Fenhu Avenue་Lili Town་Wujiang་Suzhou City
Registration Number: 320500000090854

Collectively the “Parties” and each a “Party”.

Recitals:

		
	1.
	Shanghai Kingstone Semiconductor Company Ltd. (hereinafter referred to as the “Company”) was established under Chinese law and validly exists at 200 Niudun Road, Building 7, Unit 1, Pudong New District, Shanghai with registration number 310115400252348. As of the signing date of the Agreement, the Company has a registered capital of RMB 40 million yuan.

		
	2.
	The Parties have entered into an Investment Agreement dated June 12, 2015 (“Original Investment Agreement”) agreeing on the overall terms and conditions of the contemplated investment by the New Shareholder to the Company, whereby the Parties agreed to further negotiate and agree on the detailed deal structure and enter into definitive agreements. Now that the Parties have reached an agreement on the deal structure and wish to enter into this Agreement to amend and replace the Original Investment Agreement.  

		
	3.
	The Existing Shareholder agrees for the New Shareholder to become a shareholder of the Company through capital increase and equity transfer in accordance with the terms and conditions of this Agreement. In the meantime, the Existing Shareholder agrees to waive its right of capital increase.

		
	4.
	In accordance with the valuation of the Company reached by the Parties, the New Shareholder agrees to subscribe the Company’s new registered capital and purchase certain equity interest from the Existing Shareholder pursuant to the terms of this Agreement.

Therefore, the Parties agree as follows:

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	1.
	Definitions

		
	1.1.
	Unless otherwise provided in this Agreement, the following terms should have the following meanings:

	
		
	“Amtech” 

	AMTECH SYSTEMS, INC., an Arizona corporation which is a shareholder of the Existing Shareholder.

	“Agreement”

	this investment agreement and its appendices, including their modification, alteration and supplement made from time to time.

	“Capital Amount”
	shall have the meaning described in Article 2.2

	“Capital Increase”
	shall have the meaning described in Article 2.2

	“China Escrow Account”

	shall have the meaning described in Article 5.1

	China Escrow Agent”
	shall have the meaning described in Article 5.1

	“China Escrow Agreement”

	shall have the meaning described in Article 5.1

	“Company”   
	Shanghai Kingstone Semiconductor Company, Ltd.

	“Effective Date”

	means the date on which the Parties sign this Agreement.

	“Equity Purchase Price”

	shall have the meaning described in Article 2.4

	“Equity Transfer”
	shall have the meaning described in Article 2.4

	“Existing Shareholder”

	Kingstone Technology Hong Kong Limited.

	“Force Majeure”

	an event that cannot be controlled by a Party, or is not foreseeable or even if foreseeable, cannot be prevented or avoided by a Party, which results in the Party unable to perform its obligations under this Agreement, such as fire, flood, earthquake, storm, tsunami or other natural disasters, strike or social instability.

	“New AOA”
	shall have the meaning described in Article 6.1(1)

	“New Shareholder”

	Suzhou Zhuo Jing Investment Center (LP).

	“Original Investment Agreement”

	means the Investment Agreement entered into by and between the Parties on June 12, 2015.

	“Registration Authority” 

	People's Republic of China Ministry of Commerce and State Administration for Industry and Commerce or their authorized local counterparts.

	“SAFE”
	means the State Administration of Foreign Exchange and its authorized local counterparts.

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	“Sales and Service Agreement”

	shall have the meaning described in Article 6.2(3)

	“SJ”
	SILICON JADE LIMITED, a company incorporated under the laws of Hong Kong with registration number 1498937, which is a shareholder of the Existing Shareholder.

	“Transactions”
	Means collectively the Equity Transfer and the Capital Increase

		
	1.2.
	The usage of the words “Term”, “Schedule” and “Attachment” shall refer to the “Term”, “Schedule” and “Attachment” of this Agreement.

		
	1.3.
	The heading of an article and index to this Agreement are for convenience purposes only, and should not affect the interpretation of this Agreement.

		
	2.
	Valuation, Capital Increase and Equity Transfer

		
	2.1.
	The Parties acknowledge that the Company’s current registered capital before the Capital Increase is RMB 40 million and the shareholding structure before the Capital Increase is as follows. The Parties agree that for purpose of the Transactions, before the Capital Increase, the valuation of the Company is RMB 164,500,000.

	
				
	 
	Shareholder
	Contribution 
( RMB)
	 
Registered Capital %

	1
	Kingstone Technology Hong Kong Ltd
	40,000,000
	100%

		
	2.2.
	The New Shareholder shall invest RMB 35,500,000 in cash (the “Capital Amount”) in the Company, among which RMB 8,632,219 shall become registered capital of the Company and RMB 26,867,781 shall be booked as the capital reserve of the Company (the “Capital Increase”). The Existing Shareholder hereby waives its right to subscribe the Capital Increase. 

		
	2.3.
	Immediately after completion of the Capital Increase, the registered capital of the Company shall be increased to RMB 48,632,219 and the shareholding of the Company shall be as follows, and Parties agree that the valuation of the Company shall become RMB 200 million immediately after the Transactions.

	
				
	 
	Shareholder
	Contribution (RMB)
	Registered Capital/Equity Percentage

	1
	Kingstone Technology Hong Kong Ltd
	40,000,000
	82.25%

	2
	Suzhou Zhuo Jing Investment Center (LP)
	8,632,219
	17.75%

	 
	Total
	48,632,219
	100%

		
	2.4.
	Concurrently with the Capital Increase, the New Shareholder shall purchase from the Existing Shareholder, and the Existing Shareholder shall sell to the New 

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Shareholder, 13.5% of the equity interest of the Company (“Equity Transfer”) for a price of RMB 27,000,000 (“Equity Purchase Price”). 

		
	2.5.
	The Capital Increase and the Equity Transfer shall be collectively referred to as the “Transactions” and following completion of the Transactions, the shareholding of the Company shall be as follows and the Company will be converted from a wholly foreign-owned enterprise into a Sino-foreign joint venture enterprise. 

	
				
	 
	Shareholder
	Equity Percentage
	Corresponding Registered Capital Contribution

	1
	Kingstone Technology Hong Kong Ltd
	68.75%
	33,434,651

	2
	Suzhou Zhuo Jing Investment Center (LP)
	31.25%
	15,197,568

	 
	Total
	100%
	48,632,219

		
	3.
	Representations and Warranties

		
	3.1.
	Each Party makes the following representations and warranties to the other: 

		
	(1)
	It is a corporate legal entity duly established according to the applicable law and validly exists.

		
	(2)
	In case of the New Shareholder, the sources of the funds used for the Capital Increase and the Equity Transfer are legitimate and subject to no liens or restrictions.

		
	(3)
	The execution and performance of this Agreement by it does not violate any applicable laws, regulations, or its corporate organizational document or any agreements with any third party.

		
	(4)
	It has obtained all corporate authorizations, and all consents and approvals in accordance with applicable laws and regulations that are necessary for it to enter into and perform this Agreement. 

		
	(5)
	As of the Effective Date, the Company has the legitimate rights to own or use the Company name, brands, trademarks, patents, trade names and brand, website name, domain name, proprietary technology, all operational permits and other related intellectual property rights, licensing rights it currently uses for its business operation.

		
	3.2.
	The New Shareholder, as a professional investor, has performed a detailed due diligence of the Company and is fully aware of the status, conditions, assets and liabilities of the Company. It is expressly understood and agreed that the Transactions are subject to the Company being “as is, where is” and that the Existing 

5

Shareholder does not make and hereby disclaims any representations and warranties regarding the conditions of the Company.

		
	4.
	Covenants of the Parties

		
	4.1.
	As of the Effective Date and during the duration of the Company, the Existing Shareholder warrants that the Company is the only entity owned by the Existing Shareholder that owns ion implantation equipment, and engages in processing services business and related activities. Without the mutual agreement of the Existing Shareholder and the New Shareholder, the Existing Shareholder may not establish, or engage in any other form (including but not limited to acting as shareholders, partners, directors, supervisors, employees, agents, etc.) the establishment of, any entity that engage in in the same kind of business or products or any entity relating to the Company’s businesses. Unless approved by all shareholders of the Company, the Existing Shareholder shall not directly or indirectly engage in any business that is the same as or similar to the business of the Company to avoid any direct or indirect competition or potential competition with the business of the Company. In the future, any business opportunities that may compete with the Company's business shall be made available to the Company.

		
	4.2.
	After completion of the Transactions, save for any transactions that exist as of, and continue to be valid after, the completion of the Transaction, without a proper decision making process as provided in the New AOA, the Company shall not engage in any related party transactions which may adversely affect the Company's interests or create a significant impact on the business of the Company. If any related party transactions are necessary to carry on, or beneficial to, the business of the Company, such transactions shall be subject to due process as provided under the New AOA and arm-length pricing.

		
	4.3.
	Subject to the New AOA, unless unanimously approved by all the shareholders of the Company, the Company shall not provide any guarantees to any third party. Each shareholder promises not to conduct any transaction that may impair the interest of the Company.

		
	4.4.
	The Company should ensure that the shareholders of the Company have the right to stay informed about Company’s management, Company’s business development.

		
	5.
	Transaction Process

		
	5.1.
	Within 15 working days after the Effective Date, (i) the New Shareholder shall contribute the Capital Amount to the bank accounts of the Company, among which RMB 24,500,000 shall be wired to a bank account of the Company that is controlled by Amtech and RMB 11,000,000 shall be wired to an account designated by the Company; and (ii) the Parties and HSBC China (the “China Escrow Agent”) shall execute an escrow agreement in the form as agreed by the parties thereto for the China Escrow Agent to receive and manage the payment of the Equity Purchase Price (“China Escrow Agreement”) and open an escrow account pursuant to the 

6

China Escrow Agreement (the “China Escrow Account”). Immediately upon the China Escrow Account is opened, the New Shareholder shall deposit the full Equity Purchase Price to the China Escrow Account.  

		
	5.2.
	Within 15 working days after all the closing conditions set forth in Article 6 have been satisfied or waived, the Parties shall, and shall cause the Company to (i) proceed to change the company registration of the Company with Registration Authority to register the Capital Increase and the Equity Transfer, the new AOA and New Shareholder as a shareholder of the Company, and (ii) obtain the new business license of the Company. 

		
	5.3.
	Within 5 working days after the new business license of the Company is issued, (i) the New Shareholder and the Existing Shareholder shall cause and ensure the Company to repay all the principal (USD 3.7 million) under the Loan Agreement dated December 9, 2011; and (ii) the New Shareholder shall complete all the approvals, registrations and clearances necessary for payment of the Equity Purchase Price to the Existing Shareholder, including without limitation the registration of the Equity Transfer with SAFE.

		
	5.4.
	If the New Shareholder is required under the PRC laws to make a filing to any PRC tax authority in connection with the Equity Transfer or to withhold any taxes from the Equity Purchase Price on behalf of the Existing Shareholder, prior to making such filing or any payment to the tax authority, the New Shareholder shall obtain a prior written approval from the Existing Shareholder to (i) all the documents to be filed to the tax authority and (ii) the taxable amount and the amount of tax to be paid. Any withholding taxes as determined by the tax authority and confirmed by the Existing Shareholder may be deducted from the Equity Purchase Price. The Existing Shareholder shall instruct the China Escrow Agent according to the China Escrow Agreement to release the withholding tax amount to the competent tax authority directly.  

		
	5.5.
	Within 3 working days after completion all the actions under Article 5.3(ii), the Existing Shareholder shall instruct the China Escrow Agent to release the full amount of the Equity Purchase Price, all accrued interest (save for any withholding tax paid to the tax authority pursuant to Article 5.4 if any) to a bank account designated by the Existing Shareholder. 

		
	5.6.
	The Transactions shall be deemed to have completed and the New Shareholder shall have title and any legitimate rights to the equity interest of the Company only upon (i) the full contribution of the Capital Amount, (ii) Amtech has received the repayment of loan pursuant to Article 5.3 and (iii) the release of the Equity Purchase Price according to this Agreement. After completion of the Transactions, the Parties shall cause the Company to record the New Shareholder in its shareholder registry and issue a capital contribution certificate to the New Shareholder. 

		
	5.7.
	Upon execution of this Agreement, the Parties shall use their best efforts to fulfill all the closing conditions under Article 6. If any of the closing conditions set forth in Article 6 is not fulfilled or waived before August 30, 2015 or any other date as 

7

agreed by the Parties, any Party may terminate this Agreement without any further obligation to the other Party. After all the closing conditions set forth in Article 6 have been fulfilled or waived, neither Party may terminate this Agreement for any reason. The Parties shall cooperate and use its best efforts to complete the company registration procedure under Articles 5.2 and 5.3 and as required by the Registration Authority and SAFE, including without limitation signing additional documents or modifying relevant documents as requested by the Registration Authority and/or SAFE.

		
	6.
	Closing Conditions

		
	6.1.
	The obligation of the New Shareholder to contribute the Capital Amount or pay any Equity Purchase Price under this Agreement are subject to the fulfillment to the reasonable satisfaction of the New Shareholder (or waiver by New Shareholder in writing) of each of the following conditions:

		
	(1)
	The Parties have duly executed the new Articles of Association of the Company in the form attached hereto as Appendix 1 or mutually agreed by the Parties (the “New AOA”), whereby, among other things, the Board of Directors of the Company shall consist of five members, including one member appointed by Amtech, three members appointed by SJ and one member appointed by the New Shareholders. 

		
	(2)
	The Parties and the China Escrow Agent shall have duly executed the Chinese Escrow Agreement and the China Escrow Account has been opened. 

		
	6.2.
	The obligations of the Existing Shareholder to complete the Transactions under this Agreement are subject to the fulfillment to the reasonable satisfaction of the Existing Shareholder (or waiver by the Existing Shareholder in writing) of each of the following conditions:

		
	(1)
	The Parties have duly executed the New AOA. 

		
	(2)
	The Parties and the China Escrow Agent shall have duly executed the China Escrow Agreement and the New Shareholder has deposited the full amount of the Capital Amount and the Equity Purchase Price according to Article 5.1. 

		
	(3)
	The Company and the Existing Shareholder have signed an Exclusive Sales and Service Agreement with Amtech in a form agreed by the parties thereto (“Sales and Service Agreement”) to (i) reaffirm Amtech’s exclusive right to sell and serve the products of the Company,  (ii) provide that the Company and/or the Existing Shareholder will purchase from Amtech such exclusive right for US$5.6 million no later than the earlier of (a) March 31, 2016 and (b) the commencement of any public offering process of the Company, and to reaffirm the Company’s right to sell in China prior to the deadline of such purchase, and (iii) Amtech’s non-exclusive sales and service right in 

8

connections with the products of the Company after the purchase in item (ii).  

		
	7.
	Violations and Remedies

		
	7.1.
	This Agreement shall be binding on the Parties and enforceable. If any Party fails to fulfill its obligations under this Agreement or any of its representations and warranties under this Agreement is untrue or omitted enormously, that Party shall be considered in default. The defaulting Party shall correct such breach within 15 working days after receiving a notice from the other Party. If the defaulting Party fails to remedy such default within the 15 working days and the non-compliance remains unchanged, unless otherwise provided under Article 5.7, the other Party may terminate this Agreement. If any Party in the course of the Transactions causes other to suffer any loss due to its breach, the breaching Party shall make reasonable and complete compensation to the other Party. 

		
	8.
	Confidentiality

		
	8.1.
	Unless as required by law, the government or the court or the consent of the parties to this Agreement, the parties to this Agreement shall not disclose, reveal to any individuals, enterprises, institutions, government agencies any of the contents of this agreement, information relating to this agreement, and any documents, materials, and information each received from other party, any documents, materials, information, technical secrets or commercial secrets from the Company.

		
	8.2.
	This obligation of confidentiality provisions in this agreement shall nevertheless be binding on the parties after this Agreement is canceled or terminated.

		
	9.
	Force Majeure

		
	9.1.
	If a Party is unable to perform its obligation under this Agreement due to a Force Majeure event, this Party shall immediately notify the other Party in writing, and within 15 working days, shall provide evidential documents to the other Party. In case such Force Majeure event lasts more than 90 days, unless otherwise provided under Article 5.7, either Party may terminate this Agreement. 

		
	10.
	Severability

		
	10.1.
	If any one or more provisions of this Agreement is to any applicable law in any way be regarded as invalid, illegal or unenforceable, the parties to this Agreement have the obligation to proceed with consultation and to re-enter into the alternative terms. However, the validity, legality and enforceability of the remaining provisions of this Agreement will not have any impact from the above matters or its effectiveness will not be impaired. 

9

		
	11.
	Effectivity, Change, and Termination

		
	11.1.
	This Agreement shall become effective on the Effective Date. This Agreement shall replace and supersede any agreements between the Parties prior to the Effective Date, including the Original Investment Agreement, any MOU and oral agreements. 

		
	11.2.
	Any change or termination of this Agreement shall take effect only after a written agreement is signed by the parties to this Agreement.

		
	12.
	Notification and Delivery

		
	12.1.
	Any notice or other communication in connection with this Agreement and sent between the parties shall be in writing and shall be delivered to the address noticed by the receiving party in writing.

		
	12.2.
	Except as otherwise provided in this Agreement, any written notice delivered in person or other communication exchanges shall be deemed to have received when delivered and a receipt is signed; any notice sent by courier way or other communication exchanges through postal office after forty-eight hours (legal holidays excluded) deems served; any notice sent by telex or fax sent or other communication exchanges sent successfully deems served; any notice sent by telegram or other communication exchanged in twenty four hours (legal holidays excluded) deems served.

		
	13.
	Governing Law and Dispute Resolution

		
	13.1.
	The signing, validity, interpretation, implementation and dispute settlement of this Agreement are governed by Chinese law.

		
	13.2.
	Any disputes occurred under and relating to this Agreement shall be resolved by the Parties through mutual consultation. If the Parties cannot reach a consensus within 30 days of the occurrence of the dispute the Parties agree that this dispute shall be submitted to the People’s Court where this Agreement was signed. All costs incurred in litigation, including but not limited to legal fees, security fees, notary fees, travel expenses, and attorney fees, should be paid by the losing party.

		
	13.3.
	This Article refers to the dispute between the parties pertaining to all disputes arisen from the agreement validity, interpretation of the agreement, fulfillment of the agreement, responsibility of breach of contract, as well as changes to the agreement, rescission, and termination of the agreement.

		
	14.
	Other

		
	14.1.
	This Agreement and its annexes constitute an indivisible integration, and each part in this integration has the same effect. This Agreement is written in English and Chinese and both versions shall be equally binding. 

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	14.2.
	The original of this Agreement has four (4) copies. Each Party holds one (1) copy and one (1) copy is submitted to the administrative department for industry and commerce registration. Any remaining copy is for spare purpose and is maintained by the Company. This Agreement is binding on the parties after signed by the parties, and each copy has the same effect.

[Purposefully left blank below for the signature page of Kingstone Investment Agreement]

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[This page intentionally left blank for Kingstone Investment Agreement Signature Page]

Hereby as evidence, the Parties to this Agreement (or authorized representative) at the date and place first set forth in this Agreement, signed this Agreement.

Existing Shareholder 

Kingstone Technology Hong Kong Limited
(Seal)

Signature: ___________________
Name: Bradley C. Anderson 
Title: Legal Representative

              
New Shareholder

Suzhou Zhuo Jing Investment Center (LP)
              (Seal)

Signature: ___________________
Name: 
Title: Authorized Representative

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Appendix 1: The Form of the new Articles of Association of the Company

13TGN-2015.06.30 Ex 10.26 Amended Option Plan

Exhibit 10.26

TECOGEN INC.
2006 STOCK INCENTIVE PLAN
(As Amended On January 24, 2014)

		
	1.
	Purpose of the Plan.  This 2006 Stock Incentive Plan (the "Plan"), as amended to date, is intended to provide incentives (a) to the officers and employees of Tecogen Inc., a Delaware corporation (the "Company"), and any parent or subsidiary of the Company, by providing such officers and employees with opportunities to purchase stock in the Company pursuant to options granted hereunder which qualify as "incentive stock options" under Section 422(b) of the Internal Revenue Code of 1986, as amended (the "Code") ("ISO" or "ISOs"); (b) to directors, officers, employees, consultants and advisors of the Company and any present or future parent, subsidiary or affiliate of the Company (hereinafter collectively “Related Corporations”) by providing them with opportunities to purchase stock in the Company pursuant to options granted hereunder which do not qualify as ISOs ("Non-Qualified Option" or "Non-Qualified Options"); (c) to directors, officers, employees, consultants and advisors of the Company and Related Corporations by providing them with opportunities to receive awards of stock in the Company whether such stock awards are in the form of bonus shares, deferred stock awards, or of performance share awards ("Awards"); and (d) to directors, officers, employees, consultants and advisors of the Company and Related Corporations by providing them with opportunities to make direct purchases of restricted stock in the Company ("Restricted Stock Purchases"). Both ISOs and Non-Qualified Options are referred to hereafter individually as an "Option" and collectively as "Options".  Options, Awards and authorizations to make Restricted Stock Purchases are referred to hereafter individually as a “Stock Right” and collectively as "Stock Rights".  As used herein, the terms "parent" and "subsidiary" mean “parent corporation” and "subsidiary corporation", respectively, as those terms are defined in Section 424 of the Code.

		
	2.
	Adminstration of the Plan

		
	a.
	Board or Committee Administration. This Plan shall be administered by the Board of Directors of the Company (the “Board”). The Board may appoint a Compensation Committee or Human Resources Committee (as the case may be, the “Committee”) of two (2) or more of its members to administer this Plan and to grant Stock Rights hereunder, provided such Committee is delegated such powers in accordance with applicable state law. (All references in this Plan to the “Committee” shall mean the Board if no such Compensation Committee or Stock Incentive Plan Committee has been so appointed).  If the Company or any Related Corporation registers any class of any equity security pursuant to Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), this Plan shall be administered in accordance with the applicable rules set forth in Rule 16b-3 or any successor provisions of the Exchange Act (“Rule 16b-3”). From and after the date the Company becomes subject to Section 162(m) of the Code with respect to compensation earned under this Plan, each member of the Committee shall also be an “outside director” within the meaning of Section 162(m) of the Code and the regulations promulgated thereunder.

		
	b.
	Authority of Board or Committee.  Subject to the terms of this Plan, the Committee shall have the authority to: (i) determine the employees of the Company and any Related Corporation (from among the class of employees eligible under paragraph 3 to receive ISOs) to whom ISOs may be granted, and to determine (from among the class of individuals and entities eligible under paragraph 3 to receive Non-Qualified Options and Awards and to make Restricted Stock Purchases) to whom Non-Qualified Options, Awards and authorizations to make Restricted Stock Purchases may be granted; (ii) determine the time or times at which Options or Awards may be granted or Restricted Stock Purchases made; (iii) determine the exercise price of shares subject to each Option, which price shall not be less than the minimum price specified in paragraph 6, and the purchase price of shares subject to each Restricted Stock Purchase; (iv) determine whether each Option granted shall be an ISO or a Non-Qualified Option; (v) determine (subject to paragraph 8) the time or times when or what conditions must be satisfied before each Option shall become exercisable and the duration of the exercise period; (vi) determine whether restrictions such as transfer restrictions, repurchase options and “drag along” rights and rights of first refusal are to be imposed on shares subject to Options, Awards and Restricted Stock Purchases and the nature of such restrictions, if any; (vii) impose such other terms and conditions with respect to capital stock issued pursuant to Stock Rights not inconsistent with the terms of this Plan as it deems necessary or desirable; and (viii) interpret the Plan and prescribe and rescind rules and regulations relating to it.  

If the Committee determines to issue a Non-Qualified Option, the Committee shall take whatever actions it deems necessary, under the Code and the regulations promulgated thereunder, to ensure that such Option is not treated as an ISO.  The interpretation and construction by the Committee of any provisions of the Plan or of any Stock Right granted under it shall be final unless otherwise determined by the Board.  The Committee may from time to time adopt such rules and regulations for carrying out the Plan as it may deem best.  No member of the Board or the Committee shall be liable for any action or determination made in good faith with respect to the Plan or any Stock Right granted under it.

Exhibit 10.26

		
	c.
	Delegation of Authority to Grant Awards to Officer.  Without limiting the foregoing, the Board, in its discretion, may also delegate to a single officer of the Company who is a member of the Board (to the extent consistent with state law) all or part of the Board’s or Committee’s authority and duties with respect to the granting of Stock Rights to individuals who are not subject to the reporting and other provisions of Section 16 of the Exchange Act or “covered employees” within the meaning of Section 162(m) of the Code, subject to such limitations as the Board or the Committee deems appropriate, including without limitation as to the amount of Stock Rights that may be granted during the period of delegation, and guidelines as to the determination of the exercise price of any Option, the purchase price of other Stock Rights and the setting of vesting schedules or criteria. Such officer (the “Delegated Officer”) shall act as a one member committee of the Board, and shall in any event be subject to the same limitations as are applicable to the Committee. References to the Committee in this Plan shall also include the Delegated Officer, but only to the extent consistent with the authorities and duties delegated to the Delegated Officer by the Board.  The Board may revoke or amend the terms of a delegation at any time but such action shall not invalidate any prior actions of the Delegated Officer that were consistent with the terms of this Plan.

		
	d.
	Committee Actions. The Committee may select one of its members as its chairman and shall hold meetings at such time and places as it may determine. Acts by a majority of the Committee, acting at a meeting (whether held in person or by teleconference), or acts reduced to or approved in writing by all of the members of the Committee, shall be the valid acts of the Committee.  From time to time the Board may increase the size of the Committee and appoint additional members thereof, remove members (with or without cause) and appoint new members in substitution therefor, fill vacancies however caused, or remove all members of the Committee and thereafter directly administer this Plan, subject to compliance with paragraph 2(a).

		
	e.
	Grant of Stock Rights to Board Members.  Stock Rights may be granted to members of the Board, subject to compliance with Rule 16b-3 when required by paragraph 2(a).  All grants of Stock Rights to members of the Board shall in all respects be made in accordance with the provisions of this Plan applicable to other eligible persons.

		
	3.
	Eligible Employees and Others.  ISOs may be granted to any employee of the Company or any parent or subsidiary of the Company.  Those officers and directors of the Company who are not employees of the Company or any parent or subsidiary of the Company may not be granted ISOs under this Plan.  Non-Qualified Options, Awards and authorizations to make Restricted Stock Purchases may be granted to any employee, officer or director (whether or not also an employee) of or consultant or advisor to the Company or any Related Corporation. The Committee may take into consideration a recipient's individual circumstances in determining whether to grant a Stock Right. Granting a Stock Right to any individual or entity shall neither entitle that individual or entity to, nor disqualify him or her from, participation in any other grant of Stock Rights. 

		
	4.
	Stock.  The stock subject to Stock Rights shall be the authorized but unissued shares of Common Stock of the Company (the “Common Stock”), or shares of Common Stock reacquired by the Company in any manner.  The aggregate number of shares of Common Stock which may be issued pursuant to this Plan is 3,838,750, subject to adjustment as provided in paragraph 13 or amendment as provided in Section 15. Any such shares may be issued pursuant to the exercise of Stock Rights, so long as the aggregate number of shares so issued does not exceed the number of such shares authorized under this paragraph 4.

		
	5.
	Granting of Stock Rights.  Stock Rights may be granted under this Plan at any time on or after January 1, 2006 and prior to January 1, 2016.  The date of grant of a Stock Right under this Plan will be the date specified by the Committee at the time it grants the Stock Right or such date that is specified in the instrument or agreement evidencing such Stock Right; provided, however, that such date shall not be prior to the date on which the Committee acts to approve the grant and that with respect to an ISO grant such date shall not be earlier than the date of commencement of employment of the employee granted the ISO.  The Committee shall have the right, with the consent of the optionee, to convert an ISO granted under this Plan to a Non-Qualified Option pursuant to paragraph 17.

		
	6.
	Minimum Option Price; ISO Limitations

		
	a.
	Price for ISOs.  The exercise price per share specified in the agreement relating to each ISO granted under this Plan shall not be less than the fair market value per share of Common Stock on the date of such grant.  In the case of an ISO to be granted to an employee owning stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company, the price per share specified in the agreement relating to such ISO shall not be less than one hundred ten percent (110%) of the fair market value per share of Common Stock on the date of grant.

Exhibit 10.26

		
	b.
	$100,000 Annual Limitation on ISOs.  Each eligible employee may be granted ISOs only to the extent that, in the aggregate under this Plan and all other incentive stock option plans of the Company and any parent or subsidiary of the Company, such ISOs do not become exercisable for the first time by such employee during any calendar year in a manner which would entitle the employee to purchase more than $100,000 in fair market value (determined at the time the ISOs were granted) of Common Stock in that year.  Any Options granted to an employee in excess of such amount will be granted as Non-Qualified Options.

		
	c.
	Determination of Fair Market Value. If, at the time an Option is granted under the Plan, the Common Stock is publicly traded, "fair market value" shall be determined as of the last business day for which the prices or quotes discussed in this sentence are available prior to the date such Option is granted and shall mean (i) the average (on that date) of the high and low prices of the Common Stock on the principal national securities exchange on which the Common Stock is traded, if the Common Stock is then traded on a national securities exchange; or (ii) the last reported sale price (on that date) of the Common Stock on the NASDAQ National Market List, if the Common Stock is not then traded on a national securities exchange; or (iii) the closing bid price (or average of bid prices) last quoted (on that date) by an established quotation service for over-the-counter securities, if the Common Stock is not then traded on a national securities exchange and is not reported on the NASDAQ National Market List.  However, if the Common Stock is not publicly traded at the time an Option is granted under the Plan, "fair market value" shall be deemed to be the fair value of the Common Stock as determined by the Committee after taking into consideration all factors in good faith it deems appropriate, including, without limitation, recent sale and offer prices of the Common Stock in private transactions negotiated at arm's length, if any.

		
	7.
	Option Duration.  Subject to earlier termination as provided in paragraphs 9, 10, and 13(b), each Option shall expire on the date specified by, or shall have such duration as may be specified by, the Committee and set forth in the original stock option agreement granting such Option, but not more than ten years from the date of grant.  Notwithstanding the foregoing, in the case of ISOs granted to an employee owning stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company, such ISOs shall expire not more than five years from the date of grant.  Non-Qualified Options shall expire on the date specified in the agreement granting such Non-Qualified Options, subject to extension as determined by the Committee. ISOs, or any part thereof, that have been converted into Non-Qualified Options may be extended as provided in paragraph 17.

		
	8.
	Exercise of Options.  Subject to the provisions of paragraphs 9 through 13, each Option granted under the Plan shall be exercisable as follows:

		
	a.
	Vesting.  As set forth in paragraph 2(b), and subject to paragraphs 9 and 10 with respect to ISOs, the Committee shall determine the time or times when or what conditions must be satisfied before each Option shall become exercisable and the duration of the exercise period. The Committee may also specify such other conditions precedent as it deems appropriate to the exercise of an Option.

		
	b.
	Full Vesting of Installments.  Once an installment becomes exercisable it shall remain exercisable until expiration or termination of the Option, unless otherwise specified by the Committee.

		
	c.
	Partial Exercise.  Each Option or installment may be exercised at any time or from time to time, in whole or in part, for up to the total number of shares with respect to which it is then exercisable, provided that the Committee may specify a certain minimum number or percentage of the shares issuable upon exercise of any Option that must be purchased upon any exercise.

		
	d.
	Acceleration of Vesting.  The Committee shall have the right to accelerate the date of exercise of any installment of any Option, despite the fact that such acceleration may (i) cause the application of Sections 280G and 4999 of the Code if a Change in Control Event, as defined below in paragraph 13(b), occurs, or (ii) disqualify all or part of the Option as an ISO.

		
	9.
	Termination of Employment.  Subject to the provisions of paragraph 13(b), if an ISO optionee ceases to be employed by the Company and all Related Corporations other than by reason of death or disability as defined in paragraph 10, no further installments of his or her ISOs shall become exercisable following the date of such cessation of employment, and his or her ISOs shall terminate after the passage of ninety (90) days from the date of termination of his or her employment, but in no event later than on their specified expiration dates, except to the extent that such ISOs (or unexercised installments thereof) have been converted into Non-Qualified Options pursuant to paragraph 17.  Nothing in this Plan shall be deemed to give any grantee of any Stock Right the right to be retained in employment or other service by the Company or any Related Corporation for any period of time.  

Exhibit 10.26

Notwithstanding anything contained in this paragraph 9 to the contrary, the Board or Committee may establish rules in particular stock option agreements with respect to Misconduct, as defined below, committed by a grantee of a Stock Right.
10.Death; Disability
		
	a.
	Death.  If an ISO optionee ceases to be employed by the Company and all Related Corporations by reason of his or her death, or if the employee dies within the thirty (30) day period after the employee ceases to be employed by the Company and all Related Corporations, any ISO of his or hers may be exercised, to the extent of the number of shares with respect to which he or she could have exercised it on the date of his or her death, by his or her estate, personal representative or beneficiary who has acquired the ISO by will or by the laws of descent and distribution, at any time prior to the earlier of the specified expiration date of the ISO or one (1) year from the date of such optionee's death.

		
	b.
	Disability.  If an ISO optionee ceases to be employed by the Company and all Related Corporations by reason of his or her disability, he or she shall have the right to exercise any ISO held by the optionee on the date of termination of employment, to the extent of the number of shares with respect to which he or she could have exercised it on that date, at any time prior to the earlier of the specified expiration date of the ISO or one (1) year from the date of the termination of the optionee's employment.  For the purposes of the Plan, the term "disability" shall mean "permanent and total disability" as defined in Section 22(e)(3) of the Code or successor statute.

		
	11.
	Assignability.  Except for Non-Qualified Options which may be transferred for estate planning purposes to the extent provided in the instrument or agreement granting such Non-Qualified Options, no Stock Right shall be assignable or transferable by the grantee except by will or by the laws of descent and distribution, and during the lifetime of the grantee each Stock Right shall be exercisable only by the optionee. No Stock Right, and no right to exercise any portion thereof, shall be subject to execution, attachment, or similar process, assignment, or any other alienation or hypothecation. Upon any attempt so to transfer, assign, pledge, hypothecate, or otherwise dispose of any Stock Right, or of any right or privilege conferred thereby, contrary to the provisions thereof or hereof or upon the levy of any attachment or similar process upon any Stock Right, right or privilege, such Stock Right and such rights and privileges shall immediately become null and void.  The foregoing shall not be construed to restrict the ability to assign or transfer shares of Common Stock issued upon the exercise or award of a Stock Right to the extent that the instrument or agreement granting such Stock Right permits such assignment or transfer.

		
	12.
	Terms and Conditions of Stock Rights.  Stock Rights shall be evidenced by instruments (which need not be identical) in such forms as the Committee may from time to time approve.  Such instruments shall conform to the terms and conditions set forth in paragraphs 6 through 11 hereof to the extent applicable and may contain such other provisions as the Committee deems advisable which are not inconsistent with this Plan. Without limiting the foregoing, such provisions may include transfer restrictions, rights of refusal, vesting provisions, repurchase rights, lock-up provisions and drag-along rights with respect to shares of Common Stock issuable upon exercise of Stock Rights, and such other restrictions applicable to shares of Common Stock as the Committee may deem appropriate.  In granting any Non-Qualified Option, the Committee may specify that such Non-Qualified Option shall be subject to the restrictions set forth herein with respect to ISOs, or to such other termination, cancellation or other provisions as the Committee may determine.  The Committee may from time to time confer authority and responsibility on one or more of its own members and/or one or more officers of the Company to execute and deliver such instruments.  The proper officers of the Company are authorized and directed to take any and all action necessary or advisable from time to time to carry out the terms of such instruments.

		
	13.
	Adjustments.  Upon the occurrence of any of the following events, an optionee's rights with respect to Options granted to the optionee hereunder shall be adjusted as hereinafter provided, unless otherwise specifically provided in the written agreement between the optionee and the Company relating to such Option:

		
	a.
	Stock Dividends and Stock Splits. If the shares of Common Stock subject to Options granted under this Plan shall be subdivided or combined into a greater or smaller number of shares or if the Company shall issue any shares of Common Stock as a stock dividend on its outstanding Common Stock, the number of shares of Common Stock deliverable upon the exercise of Options shall be appropriately increased or decreased proportionately, and appropriate adjustments shall be made in the purchase price per share to reflect such subdivision, combination or stock dividend.

Exhibit 10.26

		
	b.
	Acquisitions and Change in Control Events. If the Company is to be subject to or engage in (x) a merger (or reverse merger), consolidation, or other similar event affecting the Company in which outstanding shares of Common Stock are exchanged for cash, securities, and/or other property of another entity, or (y) the sale or lease of all or substantially all of the Company’s assets to another person or entity (any such event in such clauses (x) and (y) an “Acquisition”), the Committee or the Board shall (i) provide that the entity that survives the Acquisition or purchases or leases the Company’s assets in the Acquisition or any affiliate of such entity (the “Surviving Entity”) shall assume the Options granted pursuant to this Plan or substitute options to purchase securities of the Surviving Entity (or an affiliate thereof) on an equitable basis, (ii) upon written notice to the optionees, provide that all Options will become exercisable in full subject to the consummation of the Acquisition as of a specified time prior to the Acquisition and will terminate immediately prior to the consummation of such Acquisition or within a specified period of time after the Acquisition, and will not be exercisable after such termination, or (iii) in the event of an Acquisition under the terms of which holders of Common Stock will receive upon consummation thereof an amount of cash, securities and/or other property for each share of Common Stock surrendered pursuant to such Acquisition (the amount of cash plus the fair market value reasonably determined by the Committee of any securities and/or other property received by holders of Common Stock in exchange for each share of Common Stock shall be the “Acquisition Price”), provide that all outstanding Options shall terminate upon consummation of such Acquisition and that each optionee shall receive, in exchange for all vested shares of Common Stock under such Option on the date of the Acquisition, a payment in cash or in kind having a fair market value reasonably determined by the Committee or the board of directors of the Surviving Entity equal to the amount (if any) by which (A) the Acquisition Price multiplied by the number of such vested shares of Common Stock exceeds (B) the aggregate exercise price of such shares.  If the Committee chooses under clause (iii) in the preceding sentence that all outstanding Options shall terminate upon consummation of an Acquisition and that each optionee shall receive a payment for the optionee’s vested shares, with respect to any optionee whose stock option agreement specifies that no shares are vested until the first anniversary of the commencement of the optionee’s employment, if the consummation of the Acquisition occurs prior to such first anniversary, then the number of vested shares under such Option shall be deemed to be equal to the product of (x) the number of shares of stock subject to the Option that otherwise would vest on the first anniversary and (y) the quotient obtained by dividing the number of days the optionee was employed by the Company, by 365.  For purposes hereof, an Option shall be considered to be assumed or substituted “on an equitable basis” (without limiting other ways in which an Option may be assumed or substituted on an equitable basis hereunder) if, following consummation of the Acquisition, the assumed or substituted option confers the right to purchase, for each share of Common Stock subject to the Option immediately prior to the consummation of the Acquisition, the consideration received as a result of the Acquisition by the holders of Common Stock for each share of Common Stock held immediately prior to the consummation of the Acquisition (and if holders of Common Stock were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding shares of Common Stock); provided, however, that if the consideration received as a result of the Acquisition Event is not solely Common Stock of the Surviving Entity (or an affiliate thereof), the Company may, with the consent of the Surviving Entity, provide for the consideration to be received upon the exercise of each share of Common Stock subject to the Option to consist solely of Common Stock of the Surviving Entity (or an affiliate thereof) having a fair market value as reasonably determined by the Committee or the board of directors of the Surviving Entity equal to the Acquisition Price. 

If a Change in Control Event, as defined below, occurs that either (a) does not also constitute an Acquisition or (b) does constitute an Acquisition and clause (i) of the preceding paragraph is elected, and the optionee’s employment with the Company, the Related Corporation or the Surviving Entity is terminated on or prior to the six month anniversary of the date of the consummation of such Change in Control Event either by the optionee for Good Reason, as defined below, or by the Company, the Related Corporation or the Surviving Entity for reason(s) other than Misconduct, as defined below, then all of the Options, or the equivalent to such Options in the form of assumed or substituted options granted in the Surviving Entity, that but for such termination and such Change in Control Event would vest on or prior to the next following annual anniversary of the Grant Date thereafter shall become immediately exercisable in full and any repurchase provisions applicable to Common Stock issued upon exercise thereof shall lapse, provided, however, that in particular stock option agreements issued pursuant to this Plan, the Board may provide that the Options or assumed or substituted options covered by such agreement shall become immediately exercisable upon the consummation of such Change in Control Event without regard to termination of employment, and that any repurchase provisions applicable to Common Stock issued upon exercise thereof shall lapse.

Exhibit 10.26

A “Change in Control Event” shall occur upon the occurrence of (i) an Acquisition after which holders of the Common Stock before the Acquisition do not beneficially own, directly or indirectly, at least 50% of the combined voting power of the then-outstanding securities of the Surviving Entity entitled to vote generally in the election of directors immediately after the consummation of the Acquisition, (ii) a single transaction or a series of transactions pursuant to which any person (within the meaning of Section 13(d) or Section 14(d)(2) of the Securities Exchange Act of 1934), excluding any employee benefit plan sponsored by the Company and any affiliates of the Company prior to such transaction or transactions, acquires the beneficial ownership, directly or indirectly, of at least 50% of the combined voting power of the then-outstanding securities of the Company or the Surviving Entity, as the case may be, entitled to vote generally in the election of directors immediately after the consummation of the transaction or transactions, except that any acquisitions of securities directly from the Company shall be disregarded for purposes of this clause (ii), or (iii) the liquidation or dissolution of the Company.  
If, in connection with a Change in Control Event, a tax under Section 4999 of the Code would be imposed on the grantee of any Stock Right (after taking into account the exceptions set forth in Sections 280G(b)(4) and 280G(b)(5) of the Code), and the grantee, on an after-tax basis (taking into account such tax) would receive greater net compensation by not having any or all of such Stock Rights accelerate, then at the discretion of the Committee, the number of Stock Rights of any such grantee which shall become immediately exercisable, realizable or vested as provided in this Section 13 (or such provision of any other agreement or instrument governing such Stock Right that provides for such an acceleration in connection with a Change in Control Event) may be reduced (or delayed), to the extent necessary to maximize such net compensation.  For purposes of determining “net compensation” under this paragraph, the amount of compensation considered to be realized by the grantee of any Stock Right as a result of the acceleration of the vesting of such Stock Right shall be determined in accordance with the principles set forth in the proposed Treasury Regulations under Section 280G of the Code (or any final or temporary Treasury Regulations replacing such proposed Treasury Regulations) for determining the amount of any “parachute payment” resulting from the acceleration of vesting of restricted stock, a stock option or any other unvested stock right.
		
	c.
	Recapitalization or Reorganization. If a recapitalization or reorganization of the Company (other than a transaction described in subparagraph (b) above) occurs, pursuant to which securities of the Company or another entity are issued with respect to the outstanding shares of Common Stock, an optionee, upon exercising an Option, shall be entitled to receive for the purchase price paid upon such exercise the securities he or she would have received if he or she had exercised his or her Option prior to such recapitalization or reorganization and had been the owner of the Common Stock receivable upon such exercise at such time.

		
	d.
	Modification of ISOs.  Notwithstanding the foregoing, any adjustments made pursuant to the foregoing subparagraphs (a), (b) or (c) with respect to ISOs shall be made only after the Committee, after consulting with counsel for the Company, determines whether such adjustments would constitute a "modification" of such ISOs (as that term is defined in Section 424 of the Code or any successor thereto) or would cause any adverse tax consequences for the holders of such ISOs.  If the Committee determines that such adjustments made with respect to ISOs would constitute a modification of such ISOs, it may refrain from making such adjustments.

		
	e.
	Issuances of Securities and Non-Stock Dividends. Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, of the Company shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares subject to Options.  No adjustments shall be made for dividends paid in cash or in property other than securities of the Company (and, in the case of securities of the Company, such adjustments shall be made pursuant to the foregoing subparagraph (a)).  

		
	f.
	Fractional Shares. No fractional shares shall be issued under this Plan, and the optionee shall receive from the Company cash in lieu of such fractional shares.

		
	g.
	Adjustments. Upon the happening of any of the foregoing events described in subparagraphs (a), (b) or (c) above, the class and aggregate number of shares set forth in paragraph 4 hereof that are subject to Stock Rights which previously have been or subsequently may be granted under this Plan shall also be appropriately adjusted to reflect the events described in such subparagraphs.  The Committee or the board of directors of the Surviving Entity (the “Successor Board”), as applicable, shall determine the specific adjustments to be made under this paragraph 13 and its determination shall be conclusive.

Exhibit 10.26

If any person or entity owning Common Stock obtained by exercise of a Stock Right made hereunder receives shares or securities or cash in connection with a corporate transaction described in subparagraphs (a), (b) or (c) above as a result of owning such Common Stock, except as otherwise provided in subparagraph (b), such shares or securities or cash shall be subject to all of the conditions and restrictions applicable to the Common Stock with respect to which such shares or securities or cash were issued, unless otherwise determined by the Committee or the Successor Board.
		
	14.
	Means of Exercising Options.  An Option (or any part or installment thereof) shall be exercised by giving written notice to the Company at its principal office address.  Such notice shall identify the Option being exercised and specify the number of shares as to which such Option is being exercised, accompanied by full payment of the purchase price therefor either (a) in United States dollars in cash or by check, or (b) at the discretion of the Committee, by delivery of an irrevocable and unconditional undertaking, satisfactory in form and substance to the Company, by a creditworthy broker to deliver promptly to the Company sufficient funds to pay the exercise price, or delivery to the Company of a copy of irrevocable and unconditional instructions, satisfactory in form and substance to the Company, to a creditworthy broker to deliver promptly to the Company cash or a check sufficient to pay the exercise price, or (c) at the discretion of the Committee, by delivery of the grantee's personal recourse note bearing interest payable not less than annually at no less than 100% of the applicable Federal rate, as defined in Section 1274(d) of the Code, or (d) at the discretion of the Committee, by any combination of (a), (b) and (c) above. The holder of an Option shall not have the rights of a stockholder with respect to the shares covered by his or her Option until the date of issuance of a stock certificate to the optionee for the shares subject to the Option.  Except as expressly provided above in paragraph 13 with respect to changes in capitalization and stock dividends, no adjustment shall be made for dividends or similar rights for which the record date is before the date such stock certificate is issued.

		
	15.
	Term and Amendment of Plan.  This Plan was originally adopted by the stockholders of the Company and the Board on December 22, 2005. This Plan shall expire on January 1, 2016 (except as to Options outstanding on that date).  Subject to the provisions of paragraph 5 above, Options may be granted under this Plan prior to the date of stockholder approval of this Plan. The Board may terminate or amend this Plan in any respect at any time, except that (a) the total number of shares that may be issued under this Plan may not be increased without stockholder approval (except by adjustment pursuant to paragraph 13); (b) the provisions of paragraph 3 regarding eligibility for grants of ISOs may not be modified; (c) the provisions of paragraph 6(b) regarding the exercise price at which shares may be offered pursuant to ISOs may not be modified (except by adjustment pursuant to paragraph 13); and (d) the expiration date of this Plan may not be extended without the approval of the stockholders obtained within 12 months before or after the Board adopts a resolution authorizing any of the foregoing actions.  

		
	16.
	Section 162(m).  Notwithstanding anything in this Plan to the contrary, no Stock Right shall become exercisable, vested or realizable if such Stock Right is granted to an employee that is a “covered employee” as defined in Section 162(m) of the Code and the Committee has determined that such Stock Right should be structured so that it is not “applicable employee remuneration” under such Section 162(m) unless and until the terms of this Plan, including any amendment hereto, have been approved by the Company’s stockholders in the manner and to the extent required under such Section 162(m).

		
	17.
	Amendment of Stock Rights.  The Board or Committee may amend, modify or terminate any outstanding Stock Rights including, but not limited to, substituting therefor another Stock Right of the same or a different type, changing the date of exercise or realization, and converting an ISO to a Non-Qualified Option, provided, that, except as otherwise provided in paragraphs 9 or 10, the grantee's consent to such action shall be required unless the Board or Committee determines that the action, taking into account any related action, would not materially and adversely affect the grantee.

		
	18.
	Application of Funds.  The proceeds received by the Company from the sale of shares pursuant to Stock Rights issued or granted under this Plan shall be used for general corporate purposes.

		
	19.
	Governmental Regulation.  The Company's obligation to sell and deliver shares of the Common Stock under this Plan is subject to the approval of any governmental authority required in connection with the authorization, issuance or sale of such shares.

Exhibit 10.26

		
	20.
	Withholding of Additional Income Taxes.  Upon the exercise of a Non-Qualified Option, the making of a Restricted Purchase of Common Stock for less than its fair market value, the granting of an Award, the making of a Disqualifying Disposition (as defined in paragraph 21) or the vesting of restricted Common Stock acquired on the exercise of a Stock Right hereunder, the Company, in accordance with Section 3402(a) of the Code, may require the optionee or purchaser to pay additional withholding taxes in respect of the amount that is considered compensation includible in such person's gross income. The Committee in its discretion may condition (i) the exercise of an Option, (ii) the making of a Restricted Stock Purchase of Common Stock for less than its fair market value, or (iii) the granting of an award, or (iv) the vesting of restricted Common Stock acquired by exercising a Stock Right, on the grantee's payment of such additional withholding taxes.

		
	21.
	Notice to Company of Disqualifying Disposition.  Each employee who receives an ISO must agree to notify the Company in writing immediately after the employee makes a Disqualifying Disposition of any Common Stock acquired pursuant to the exercise of an ISO.  A “Disqualifying Disposition” is any disposition (including any sale) of such Common Stock before the later of

		
	a.
	two years after the date the employee was granted the ISO, or

		
	b.
	one year after the date the employee acquired Common Stock by exercising the ISO.  If the employee has died before such stock is sold, these holding period requirements do not apply and no Disqualifying Disposition can occur thereafter.

		
	22.
	Governing Law; Construction.  The validity and construction of this Plan and the instruments evidencing Stock Rights shall be governed by the laws of the State of Delaware.

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