Document:

Unitek
Holdings, Inc.

    2007
Equity Incentive Plan

     

    

     

    Article 1.  Establishment
& Purpose

     

    1.1           Establishment.  Unitek
Holdings, Inc., a Delaware corporation (hereinafter referred to as the “Company”),
establishes the 2007 Equity Incentive Plan (hereinafter referred to as the
“Plan”) as set
forth in this document.  

     

    1.2           Purpose of the
Plan.  The purpose of the Plan is to attract, retain and
motivate officers and employees of, consultants to, and non-employee directors
providing services to the Company and its Subsidiaries and Affiliates, and to
promote the success of the Company’s business 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 fulfilling their individual
performance goals.

     

    Article 2. 
Definitions

     

    Whenever
capitalized in the Plan, the following terms shall have the meanings set forth
below.

     

    2.1           “Affiliate” means any entity that the
Company, either directly or indirectly, is in common control with, is controlled
by or controls or any entity in which the Company has a substantial direct or
indirect equity interest, as determined by the Board.

     

    2.2           “Annual
Award Limit”
shall have the meaning set forth in Section
5.1(b).

     

    2.3           “Award” means any Option, Stock
Appreciation Right, Restricted Stock, Other Stock-Based Award or
Performance-Based Compensation award that is granted under the
Plan.

     

    2.4           “Award
Agreement” means
either (a) a written agreement entered into by the Company and a Participant
setting forth the terms and provisions applicable to an Award granted under the
Plan, or (b) a written statement issued by the Company to a Participant
describing the terms and provisions of the actual grant of such
Award.

     

    2.5           “Beneficial
Owner” or “Beneficial
Ownership” shall
have the meaning ascribed to such term in Rule 13d-3 of the General Rules and
Regulations under the Exchange Act.

     

    2.6           “Board” means the Board of Directors
of the Company.

     

    2.7           “Cause”
shall mean with respect to a Participant, (i) “cause” as defined in any
employment or other written agreement between the Participant and the Company
(or, if applicable, the Affiliate to which the Participant renders services) or
(ii) if the Participant is not a party to an employment agreement or other
written agreement or “cause” is not defined therein:

     

    
      	
               
      

            	
              (a)

            	
              the
      Participant shall have committed, been convicted of, or shall have plead
      guilty or nolo
      contendere to, any felony or any crime involving personal
      dishonesty or fraud;

            

    

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (b)

            	
              the
      Participant’s willful or persistent failure to perform, or refusal to
      perform his or her assigned duties or to comply with Company
      directives;

            

    

     

    
      	
               
      

            	
              (c)

            	
              the
      Participant shall have breached any written policy, or procedure or any
      confidential or proprietary information, non-compete or non-solicitation
      covenant for the benefit of the Company or any of its
      Affiliates;

            

    

     

    
      	
               
      

            	
              (d)

            	
              the
      Participant shall have committed any fraud, embezzlement, misappropriation
      of funds, breach of fiduciary duty or any other act of dishonesty of a
      material nature against the Company or any of its Affiliates;
      or

            

    

     

    
      	
               
      

            	
              (e)

            	
              the
      Participant shall have engaged in any gross or willful misconduct which
      could result in a substantial loss to the Company or any of its Affiliates
      or substantial damage to their
reputation.

            

    

     

    2.8           “Change of
Control” means
the occurrence of any of the following events:

     

    
      	
               
      

            	
              (a)

            	
              any
      Person, other than the Permitted Holders, is or becomes the Beneficial
      Owner (except that a Person shall be deemed to have “beneficial ownership”
      of all Shares that any such Person has the right to acquire, whether such
      right is currently exercisable or only after the passage of time),
      directly or indirectly, of more than 50% of the total voting power of the
      voting stock of the Company, including by way of merger, consolidation,
      tender or exchange offer or
otherwise;

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      sale or disposition, in one or a series of related transactions, of all or
      substantially all, of the assets of the Company to any Person, other than
      the Permitted Holders; or

            

    

     

    
      	
               
      

            	
              (c)

            	
              Approval
      by the shareholders of the Company of a complete liquidation or
      dissolution of the Company.

            

    

     

    2.9                      “Code” means the U.S. Internal
Revenue Code of 1986, as amended from time to time.

     

    2.10           “Committee” means the compensation
committee of the Board, or any other committee designated by the Board to
administer the Plan, subject to any listing requirements of each exchange on
which the Company may be listed.

     

    2.11           “Company” means Unitek Holdings, Inc.,
a Delaware corporation, and any successor thereto.

     

    2.12           “Consultant” means any person (other than
an Employee or a Director) who is engaged by the Company, a Subsidiary or an
Affiliate to render consulting or advisory services to the Company or such
Subsidiary or Affiliate.

     

    2.13           “Covered
Employee” means
for any Plan Year, a Participant designated by the Company as a potential
“covered employee,” as such term is defined in Section 162(m) of the
Code.

     

    2.14           “Director” means a member of the Board
who is not an Employee.

     

    2.15           “Effective
Date” means the
date set forth in Section 15.15.

     

    
      
         

      

      
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    2.16           “Employee” means an officer or other
employee of the Company, its Subsidiaries or an Affiliate, including a member of
the Board who is such an employee.

     

    2.17           “Exchange
Act” means the
Securities Exchange Act of 1934, as amended from time to time.

     

    2.18           “Fair
Market Value”
means, as of any date, the per Share value determined as
follows:

     

    
      	
               
      

            	
              (a)

            	
              if
      the Shares are listed on any established stock exchange or a national
      market system, the per Share Fair Market Value shall be the closing sales
      price for each Share (or the closing bid, if no sales were reported) on
      the date of determination (or, if no closing sales price or closing bid
      was reported on that date, as applicable, on the last trading date such
      closing sales price or closing bid was reported), as reported in The Wall
      Street Journal or such other source as the Committee deems
      reliable;

            

    

     

    
      	
               
      

            	
              (b)

            	
              if
      the Shares are regularly quoted on an automated quotation system
      (including the OTC Bulletin Board and the “Pink Sheets” published by the
      National Quotation Bureau, Inc.) or by a recognized securities dealer, but
      selling prices are not reported, the per Share Fair Market Value shall be
      the mean between the high bid and low asked prices for a Share on the date
      of determination (or, if no such prices were reported on that date, on the
      last date such prices were reported), as reported in The Wall Street
      Journal or such other source as the Committee deems reliable;
      or

            

    

     

    
      	
               
      

            	
              (c)

            	
              in
      the absence of an established market for the Shares of the type described
      in (a) and (b) above, the per Share Fair Market Value thereof shall
      be determined by the Committee in good faith and in accordance with
      applicable provisions of Section 409A of the
  Code.

            

    

     

    2.19           “Incentive
Stock Option”
means an Option intended to meet the requirements of an incentive stock
option as defined in Section 422 of the Code and designated as an Incentive
Stock Option.

     

    2.20           “Non-Employee
Director” means a
person defined in Rule 16b-3(b)(3) promulgated by the Securities and Exchange
Commission under the Exchange Act, or any successor definition adopted by the
Securities and Exchange Commission.

     

    2.21           “Nonqualified
Stock Option”
means an Option that is not an Incentive Stock Option.

     

    2.22           “Other
Stock-Based Award”
means any right granted under Article 9 of the
Plan.

     

    2.23           “Option” means any stock option
granted form time to time under Article 6 of the
Plan.

     

    2.24           “Option
Price” means the
purchase price per Share subject to an Option, as determined pursuant to Section 6.2 of the
Plan.

     

    2.25           “Outside
Director” means a
member of the Board who is an “outside director” within the meaning of Section
162(m) of the Code and the regulations promulgated thereunder.

     

    2.26           “Participant” means any eligible person as
set forth in Section
4.1 to
whom an Award is granted.

     

    
      
        
        

      

      
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    2.27           “Performance-Based
Compensation”
means compensation under an Award that is intended to constitute “qualified
performance-based compensation” within the meaning of the regulations
promulgated under Section 162(m) of Code or any successor
provision.

     

    2.28           “Performance
Measures” means
measures as described in Section 10.1 on which the
performance goals are based in order to qualify Awards as Performance-Based
Compensation.

     

    2.29           “Performance
Period” means the
period of time during which the performance goals must be met in order to
determine the degree of payout and/or vesting with respect to an
Award.

     

    2.30           “Permitted
Holders” means,
as of the date of determination, (i) an employee benefit plan (or trust forming
a part thereof) maintained by the Company or any corporation or other Person of
which a majority of its voting power of its voting equity securities or equity
interest is owned, directly or indirectly, by the Company and (ii) any
Affiliate.

     

    2.31           “Person” shall have the meaning
ascribed to such term in Section 3(a)(9) of the Exchange Act and used in
Sections 13(d) and 14(d) thereof, including a “group” as defined in
Section 13(d) thereof.

     

    2.32           “Plan” means this Unitek Holdings,
Inc. 2007 Equity Incentive Plan.

     

    2.33           “Plan
Year” means the
applicable calendar year.

     

    2.34           “Recapitalization” shall mean an event or
series of events affecting the capital structure of the Company such as a stock
split, reverse stock split, stock dividend, distribution, recapitalization,
combination or reclassification of the Company’s securities.

     

    2.35           “Restricted
Stock” means any Award granted under Article
8.

     

    2.36           “Restriction
Period” means the
period during which Restricted Stock awarded under Article 8 of the Plan
is subject to forfeiture.

     

    2.37           “Section
409A Guidance” shall have the meaning set forth in Section
11.1.

     

    2.38           “Service” means service as an
Employee, Director or Consultant.

     

    2.39           “Share” means a share of common
stock of the Company, par value $0.01 per share, or such other class or kind of
shares or other securities resulting from the application of Section 13.1.

     

    2.40           “Stock
Appreciation Right” means any right granted
under Article
7.

     

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

     

    2.42           “Tandem
SAR” shall have
the meaning set forth in Section
7.1.

     

    2.43           “Ten
Percent Shareholder” means a person who on any
given date owns, either directly or indirectly (taking into account the
attribution rules contained in Section 424(d) of the Code), stock possessing
more than 10% of the total combined voting power of all classes of stock of the
Company or a Subsidiary or Affiliate.

     

    
      
        
        

      

      
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    Article 3. 
Administration

     

    3.1           Authority of the
Committee.  The Plan shall be administered by the Committee,
which shall have full power to interpret and administer the Plan and full
authority to select the Directors, Employees and Consultants to whom Awards will
be granted and determine the type and amount of Awards to be granted to each
such Director, Employee or Consultant, the terms and conditions of Awards
granted under the Plan and the terms of Award Agreements to be entered into with
Participants.  Without limiting the generality of the foregoing, the
Committee may, in its sole discretion, clarify, construe or resolve any
ambiguity in any provision of the Plan or any Award Agreement, accelerate or
waive vesting of Awards and exercisability of Awards, extend the term or period
of exercisability of any Awards, modify the purchase price under any Award, or
waive any terms or conditions applicable to any Award; provided that no
action taken by the Committee shall adversely affect in any material respect the
rights granted to any Participant under any outstanding Awards without the
Participant’s written consent (other than pursuant to Article 11 or Article 13
hereof).  Awards may, in the discretion of the Committee, be made
under the Plan in assumption of, or in substitution for, outstanding awards
previously granted by the Company or its Affiliates or a company acquired by the
Company or with which the Company combines.  The Committee shall have
full and exclusive discretionary power to adopt rules, forms, instruments and
guidelines for administering the Plan as the Committee deems necessary or
proper.  Notwithstanding anything in this Section 3.1 to the contrary,
the Board, or any other committee or sub-committee established by the Board, is
hereby authorized (in addition to any necessary action by the Committee) to
grant or approve Awards as necessary to satisfy the requirements of Section 16
of the Exchange Act and the rules and regulations thereunder and to act in lieu
of the Committee with respect to Awards made to Non-Employee Directors under the
Plan.  All actions taken and all interpretations and determinations
made by the Committee or by the Board (or any other committee or sub-committee
thereof), as applicable, shall be final and binding upon the Participants, the
Company, and all other interested individuals.

     

    3.2           Delegation.  The
Committee may delegate to one or more of its members, one or more officers of
the Company or any of its Subsidiaries, and one or more agents or advisors such
administrative duties or powers as it may deem advisable.

     

    Article 4.  Eligibility and
Participation

     

    4.1           Eligibility.  Participants
will consist of such Employees, Consultants and Directors 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.  

     

    4.2           Type of
Awards.  Awards under the Plan may be granted in any one or a
combination of:  (a) Options, (b) Stock Appreciation Rights, (c)
Restricted Stock and (d) Other Stock-Based Awards.  The Plan sets
forth the performance goals and procedural requirements to permit the Company to
design Awards that qualify as Performance-Based Compensation, as described in
Article 10
hereof.  Awards granted under the Plan shall be evidenced by Award
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 Award
Agreement, the provisions of the Plan shall prevail.

     

    
      
        
        

      

      
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    Article 5.  Shares Subject
to the Plan and Maximum Awards

     

    5.1           Number
of Shares Available for Awards.

     

    
      	
               
      

            	
              (a)

            	
              General.  Subject
      to adjustment as provided in Section 5.1(c)
      and Article
      13, the maximum number of Shares available for issuance to
      Participants pursuant to Awards under the Plan shall be 13,581,250
      Shares.  The Shares available for issuance under the Plan may
      consist, in whole or in part, of authorized and unissued Shares or
      treasury Shares.  The number of Shares available for granting
      Incentive Stock Options under the Plan shall not exceed 13,581,250 Shares,
      subject to adjustments provided in Article 13
      hereof and subject to the provisions of Sections 422 or 424 of the Code or
      any successor provisions.  Any Shares delivered to the Company
      as part or full payment for the purchase price of an Award granted under
      the Plan or, to the extent the Committee determines that the availability
      of Incentive Stock Options under the Plan will not be compromised, to
      satisfy the Company’s withholding obligation with respect to an Award
      granted under the 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 Annual Award Limit has been
    attained.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Annual Award
      Limits.  The maximum number of Shares with respect to
      which any Options and Stock Appreciation Rights may be granted to any
      Participant in any Plan Year shall be 4,346,000 Shares, subject to
      adjustments made in accordance with Article 13
      hereof, or the cash equivalent thereof to the extent such Awards are
      payable in cash or property, and the maximum amount of Awards constituting
      Performance-Based Compensation granted to any Participant in a Plan Year
      shall be 4,346,000 Shares, subject to adjustments made in accordance with
      Article
      13 hereof, or the cash equivalent thereof to the extent such Awards
      are payable in cash or property (each an “Annual Award
      Limit” and collectively, “Annual Award
      Limits”).

            

    

     

    
      	
               
      

            	
              (c)

            	
              Additional
      Shares.  In the event that any outstanding Award expires,
      is forfeited, cancelled or otherwise terminated without the issuance of
      Shares or are otherwise settled for cash, the Shares subject to such
      Award, to the extent of any such forfeiture, cancellation, expiration,
      termination or settlement for cash, shall again be available for Awards
      under the Plan.  If the Committee authorizes the assumption
      under the Plan, in connection with any merger, consolidation, acquisition
      of property or stock, or reorganization, of awards granted under another
      plan, such assumption shall not (i) reduce the maximum number of Shares
      available for issuance under the Plan or (ii) be subject to or counted
      against a Participant’s Annual Award
Limit.

            

    

    
       

      Article
6.  Stock
Options

    

     

    6.1           Grant of
Options.  The Committee is hereby authorized to grant Options
to Participants.  Each Option shall permit a Participant to purchase
from the Company a stated number of Shares at an Option Price established by the
Committee, subject to the terms and conditions described in this Article 6 and to such
additional terms and conditions, as established by the Committee, in its sole
discretion, that are consistent with the provisions of the
Plan.  Options shall be designated as either Incentive Stock Options
or Nonqualified Stock Options, provided that Options granted to Directors and
Consultants shall be Nonqualified Stock Options.  An 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 Stock
Option.  Neither the Committee nor the Company or any of its
Affiliates shall be liable to any Participant or to any other person if it is
determined that an Option intended to be an Incentive Stock Option does not
qualify as an Incentive Stock Option.  Options shall be evidenced by
Award Agreements which shall state the number of Shares covered by such
Option.  Such agreements shall conform to the requirements of the Plan
and may contain such other provisions as the Committee shall deem
advisable.

     

    
      
        
        

      

      
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    6.2           Terms of Option
Grant.  The Option Price shall be determined by the Committee
at the time of grant, but shall not be less than 100% of the Fair Market Value
of a Share on the date of grant.  In the case of any Incentive Stock
Option granted to a Ten Percent Shareholder, the Option Price shall not be less
than 110% of the Fair Market Value of a Share on the date of grant.

     

    6.3           Option Term.  The
term of each Option shall be determined by the Committee at the time of grant
and shall be stated in the Award Agreement, but in no event shall such term be
greater than ten years (or, in the case of an Incentive Stock Option granted to
a Ten Percent Shareholder, five years).

     

    6.4           Time of
Exercise.  Options granted under this Article 6 shall be
exercisable at such times and be subject to such restrictions and conditions as
the Committee shall in each instance approve, which terms and restrictions need
not be the same for each grant or for each Participant.

     

    6.5           Method of
Exercise.  Except as otherwise provided in the Plan or in an
Award Agreement, an Option may be exercised for all, or from time to time any
part, of the Shares for which it is then exercisable.  For purposes of
this Article 6,
the exercise date of an Option shall be the later of the date a notice of
exercise is received by the Company and, if applicable, the date payment is
received by the Company pursuant to clauses (i), (ii), (iii) or (iv) in the
following sentence.  The aggregate Option Price for the Shares as to
which an Option is exercised shall be paid to the Company in full at the time of
exercise at the election of the Participant (i) in cash or its equivalent (e.g.,
by cashier’s check), (ii) to the extent permitted by the Committee, in Shares
having a Fair Market Value equal to the aggregate Option Price for the Shares
being purchased and satisfying such other requirements as may be imposed by the
Committee, (iii) partly in cash and, to the extent permitted by the
Committee, partly in such Shares or (iv) if there is a public market for
the Shares at such time, subject to such requirements as may be imposed by the
Committee, through the delivery of irrevocable instructions to a broker to sell
Shares obtained upon the exercise of the Option and to deliver promptly to the
Company an amount out of the proceeds of such sale equal to the aggregate Option
Price for the Shares being purchased.  The Committee may prescribe any
other method of payment that it determines to be consistent with applicable law
and the purpose of the Plan.  

     

    6.6           Limitations on Incentive Stock
Options.  Incentive Stock Options may be granted only to
employees of the Company or of a “parent corporation” or “subsidiary
corporation” (as such terms are defined in Section 424 of the Code) at the date
of grant.  The aggregate Fair Market Value (generally determined as of
the time the 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 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 generally in the order in which they are
granted.  No Incentive Stock Option may be exercised later than ten
(10) years after the date it is granted.  Each provision of the Plan
and each Award Agreement relating to an Incentive Stock Option shall be
construed so that each Incentive Stock Option shall be an incentive stock option
as defined in Section 422 of the Code, and any provisions of the Award Agreement
thereof that cannot be so construed shall be disregarded.

     

    
      
        
        

      

      
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    Article 7.  Stock
Appreciation Rights

     

    7.1           Grant of Stock Appreciation
Rights.  The Committee is hereby authorized to grant Stock
Appreciation Rights to Participants, including a grant of Stock Appreciation
Rights in tandem with any Option at the same time such Option is granted (a
“Tandem
SAR”).  Stock Appreciation Rights shall be evidenced by Award
Agreements that shall conform to the requirements of the Plan and may contain
such other provisions as the Committee shall deem advisable.  Subject
to the terms of the Plan and any applicable Award Agreement, a Stock
Appreciation Right granted under the Plan shall confer on the holder thereof a
right to receive, upon exercise thereof, the excess of (a) the Fair Market
Value of a specified number of Shares on the date of exercise over (b) the grant
price of the right as specified by the Committee on the date of the
grant.  Such payment may be in the form of cash, Shares, other
property or any combination thereof, as the Committee shall determine in its
sole discretion.

     

    7.2           Terms of Stock Appreciation
Right.  Subject to the terms of the Plan and any applicable
Award Agreement, the grant price (which shall not be less than 100% of the Fair
Market Value of a Share on the date of grant), term, methods of exercise,
methods of settlement and any other terms and conditions of any Stock
Appreciation Right shall be as determined by the Committee.  The
Committee may impose such other conditions or restrictions on the exercise of
any Stock Appreciation Right as it may deem appropriate.  Unless
otherwise provided in the Award Agreement, no Stock Appreciation Right shall
have a term of more than ten (10) years from the date of grant.

     

    7.3           Tandem Stock Appreciation Rights and
Options.  A Tandem SAR shall be exercisable only to the extent
that the related Option is exercisable and shall expire no later than the
expiration of the related Option.  Upon the exercise of all or a
portion of a Tandem SAR, a Participant shall be required to forfeit the right to
purchase an equivalent portion of the related Option (and, when a Share is
purchased under the related Option, the Participant shall be required to forfeit
an equivalent portion of the Stock Appreciation Right).

     

    Article 8.  Restricted
Stock 

     

    8.1           Grant of Restricted
Stock.  An Award of Restricted Stock is a grant by the Company
of a specified number of Shares to the Participant, which Shares are subject to
forfeiture upon the occurrence of specified events.  Participants
shall be awarded Restricted Stock in exchange for consideration not less than
the minimum consideration required by applicable law.  Restricted
Stock shall be evidenced by an Award Agreement, which shall conform to the
requirements of the Plan and may contain such other provisions as the Committee
shall deem advisable.

     

    8.2           Terms of Restricted Stock
Awards.  Each Award Agreement evidencing a Restricted Stock
grant shall specify the period(s) of restriction, the number of Shares of
Restricted Stock subject to the Award, the performance, employment or other
conditions (including the termination of a Participant’s Service whether due to
death, disability or other cause) under which the Restricted Stock may be
forfeited to the
Company and such other provisions as the Committee shall
determine.  Upon determination of the number of Shares of Restricted
Stock to be granted to the Participant, the Committee shall direct that a
certificate or certificates representing the number of Shares be issued to the
Participant with the Participant designated as the registered
owner.  The certificate(s) representing such shares shall be legended
as to sale, transfer, assignment, pledge or other encumbrances during the
Restriction Period and deposited by the Participant, together with a stock power
endorsed in blank, with the Company, to be held in escrow during the Restriction
Period.  At the end of the Restriction Period, the restrictions
imposed hereunder shall lapse with respect to the number of shares of Restricted
Stock as determined by the Committee, and the legend shall be removed and such
number of Shares delivered to the Participant (or, where appropriate, the
Participant’s legal representative).  The Committee may, in its sole
discretion, modify or accelerate the lapsing of the restrictions imposed on
Restricted Stock.

     

    
      
        
        

      

      
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    8.3           Voting and Dividend
Rights.  Unless otherwise determined by the Committee and set
forth in a Participant’s Award Agreement, Participants holding Restricted Stock
granted hereunder shall not have the right to exercise voting rights with
respect to the Restricted Stock and shall not have the right to receive
dividends on such Restricted Stock.   

     

    8.4           Performance
Goals.  The Committee may condition the grant of Restricted
Stock or the expiration of the Restriction Period upon the Participant’s
achievement of one or more performance goal(s) specified in the Award
Agreement.  If the Participant fails to achieve the specified
performance goal(s), the Committee shall not grant the Restricted Stock to such
Participant or the Participant shall forfeit the Award of Restricted Stock to
the Company.

     

    8.5           Section 83(b)
Election.  If a Participant makes an election pursuant to
Section 83(b) of the Code concerning Restricted Stock, the Participant shall be
required to file promptly a copy of such election with the
Company.   

     

    Article 9.  Other
Stock-Based Awards

     

    The
Committee, in its sole discretion, may grant Awards of Shares and Awards that
are valued, in whole or in part, by reference to, or are otherwise based on the
Fair Market Value of, Shares (the “Other Stock-Based
Awards”).  Such Other Stock-Based Awards shall be in such form,
and dependent on such conditions, as the Committee shall determine, including,
without limitation, the right to receive one or more Shares (or the equivalent
cash value of such Shares) upon the completion of a specified period of service,
the occurrence of an event and/or the attainment of performance
objectives.  Other Stock-Based Awards may be granted alone or in
addition to any other Awards granted under the Plan.  Subject to the
provisions of the Plan, the Committee shall determine to whom and when Other
Stock-Based Awards will be made, the number of Shares to be awarded under (or
otherwise related to) such Other Stock-Based Awards; whether such Other
Stock-Based Awards shall be settled in cash, Shares or a combination of cash and
Shares; and all other terms and conditions of such Awards (including, without
limitation, the vesting provisions thereof and provisions ensuring that all
Shares so awarded and issued shall be fully paid and
non-assessable).

     

    Article 10. 
Performance-Based Compensation

     

    The
Committee is authorized to design any Award so that the amounts or Shares
payable or distributed pursuant to such Award are treated as “qualified
performance-based compensation” within the meaning of Section 162(m) of the Code
and related regulations.

     

    10.1           Performance
Measures.  The vesting, crediting and/or payment of
Performance-Based Compensation shall be based on the achievement of objective
performance goals based on one or more of the
following Performance Measures: (i) consolidated earnings before or after taxes
(including earnings before interest, taxes, depreciation and amortization); (ii)
net income; (iii) operating income; (iv) earnings per Share; (v) book value per
Share; (vi) return on shareholders’ equity; (vii) expense management;
(viii) return on investment; (ix) improvements in capital structure; (x)
profitability of an identifiable business unit or product; (xi) maintenance or
improvement of profit margins; (xii) stock price; (xiii) market share; (xiv)
revenues or sales; (xv) costs; (xvi) cash flow; (xvii) working capital and
(xviii) return on assets.

     

    
      
        
        

      

      
        - 9
-

        
          

        

      

      
        
        

      

    

     

    Any Performance Measure may be (i) used
to measure the performance of the Company and/or any of its Subsidiaries or
Affiliates as a whole, any business unit thereof or any combination thereof or
(ii) compared to the performance of a group of comparable companies, or a
published or special index, in each case that the Committee, in its sole
discretion, deems appropriate.

     

    10.2           Establishment of Performance Goals
for Covered Employees.  No later than ninety (90) days
after the commencement of a performance period (but in no event after
twenty-five percent (25%) of such performance period has elapsed), the Committee
shall establish in writing:  (a) the performance goals applicable to
the Performance Period; (b) the Performance Measures to be used to measure
the performance goals in terms of an objective formula or standard; (c) the
method for computing the amount of compensation payable to the Participant if
such performance goals are obtained; and (d) the Participants or class of
Participants to which such performance goals apply.

     

    10.3           Adjustment of Performance-Based
Compensation.  Awards that are designed to qualify as
Performance-Based Compensation may not be adjusted upward.  The
Committee shall retain the discretion to adjust such Awards downward, either on
a formula or discretionary basis or any combination, as the Committee
determines.

     

    10.4           Certification of
Performance.  No Award designed to qualify as Performance-Based
Compensation shall be vested, credited or paid, as applicable, with respect to
any Participant until the Committee certifies in writing that the performance
goals and any other material terms applicable to such Performance Period have
been satisfied.

     

    Article 11.  Compliance
with Section 409A of the Code

     

    11.1           General.  To the
extent that the Plan and/or Awards are subject to Section 409A of the Code,
the Committee may, in its sole discretion and without a Participant’s prior
consent, amend the Plan and/or Awards, adopt policies and procedures, or take
any other actions (including amendments, policies, procedures and actions with
retroactive effect) as are necessary or appropriate to (a) exempt the Plan
and/or any Award from the application of Section 409A of the Code, (b)
preserve the intended tax treatment of any such Award, or (c) comply with
the requirements of Section 409A of the Code, Department of Treasury
regulations and other interpretive guidance issued thereunder, including without
limitation any such regulations or other guidance that may be issued after the
date of the grant (“Section 409A
Guidance”).  The Plan shall be interpreted at all times in such
a manner that the terms and provisions of the Plan and Awards are exempt from or
comply with Section 409A Guidance.

     

    11.2           Timing of
Payment.  All Awards that would otherwise be subject to
Section 409A of the Code shall be paid or otherwise settled on or as soon
as practicable after the applicable payment date and not later than the
fifteenth (15th) day of the third month from the end of (i) the
Participant’s tax year that includes the applicable payment date, or
(ii) the Company’s tax year that includes the applicable payment date,
whichever is later; provided, however, that the
Committee reserves the right to delay payment with respect to any such Award
under the circumstances set forth in Proposed Regulation
Section 1.409A-3(h)(2) or any successor thereof or upon such other events
and conditions as the Commissioner
of the Internal Revenue Service may prescribe in generally applicable guidance
published in the Internal Revenue Bulletin; provided further that,
notwithstanding any contrary provision in the Plan or Award Agreement, any
payment(s) that are otherwise required to be made under the Plan to a “specified
employee” (as defined under Section 409A of the Code) as a result of his or
her separation from Service (other than a payment that is not subject to
Section 409A of the Code) shall be delayed for the first six
(6) months following such separation from Service (or, if earlier, the date
of death of the specified employee) and shall instead be paid (in a manner set
forth in the Award Agreement) on the payment date that immediately follows the
end of such six (6)-month period or as soon as administratively practicable
thereafter. 

     

    
      
        
        

      

      
        - 10
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    Article 12. 
Vesting; Termination of
Service; Forfeiture of
Awards.

     

    12.1           Vesting of
Awards.  Unless the Award Agreement provides otherwise, Awards
under the Plan shall vest, and Options and Stock Appreciation Rights shall
become exercisable, with respect to twenty percent (20%) of the Shares subject
to the Award on each of the first, second, third, fourth and fifth anniversaries
of the date of grant of the Award provided that the Participant’s Service has
not terminated prior to such anniversary dates.

     

    12.2           Termination of Service (except for
Cause).  If a Participant’s Service terminates for any reason
other than for Cause, then unless the Award Agreement provides
otherwise:

     

    
      	
               
      

            	
              (a)

            	
              Options/Stock
      Appreciation Rights.  Any vested and exercisable
      outstanding Options or Stock Appreciation Rights shall expire on the
      earliest of: (A) the expiration of their term, (B) twelve (12) months
      following termination of the Participant’s Service as a result of death or
      Disability, and (C) thirty (30) days following termination of Service
      for any other reason.  Any unvested and/or un-exercisable
      Options or Stock Appreciation Rights shall expire and be forfeited as of
      the date the Participant’s Service
terminates.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Restricted Stock
      Awards and Other Stock-Based Awards.  All unvested
      Restricted Stock Awards and Other Stock-Based Awards shall expire and be
      forfeited upon termination of Service except that if on the date Service
      terminates, an Award the vesting of which is conditioned solely upon
      satisfying performance conditions and remaining in Service until the
      payment date, and the performance conditions are satisfied but the
      Participant is not in Service on the payment date due to his termination
      of Service on account of his death or Disability, such Award shall be
      payable to the Participant at the regularly scheduled payment
      date.

            

    

     

    12.3           Termination of Service (for
Cause).  Unless the Award Agreement provides otherwise, all of
a Participant’s Awards (including any exercised Options for which Shares have
not been delivered to the Participant) shall be cancelled and forfeited
immediately on the date Participant’s Service terminates 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 such undelivered Shares.  If a
Participant dies at a time when Cause exists but prior to the date Participant’s
Service is terminated for Cause, all of the Participant’s Awards (including any
exercised 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.

     

    12.4           Leave of
Absence.  For purposes of the Plan, Service shall be deemed to
continue while a Participant is on a bona fide leave of absence,
if such leave is approved by the Company in writing
or if continued crediting of Service for this purpose is expressly required by
the terms of such leave or by applicable law (as determined by the
Board).

     

    12.5           Right of
Repurchase.  At any time prior to an Initial Public Offering on
ten (10) days written notice to the Participant, the Company may, but is not
obligated to, repurchase Shares acquired under the Plan from any Participant
whose Service terminated for an amount equal to: (i) if Participant’s Service
terminates for Cause, the purchase price paid, if any by the Participant for
such Shares (or if less, the Fair Market Value of such Shares), or (ii) in the
case of any other termination of Service, at the Fair Market Value of such
Shares on the date of the exercise of the repurchase right by the Company, as
determined in the sole discretion of the Company in accordance with the terms of
the Plan.  For purposes of this Section 12.5, “Initial Public
Offering” shall mean consummation of a firm commitment underwritten
public offering of Shares or other event the result of which is that Shares are
tradable on the New York Stock Exchange, American Stock Exchange, NASDAQ
National Market or similar United States market system.

     

    
      
        
        

      

      
        - 11
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    Article 13. 
Adjustments

     

    13.1           Adjustments in Authorized
Shares.  In the event of a Recapitalization, the Board shall
adjust, in a fair and equitable manner, the Plan and each outstanding Award
thereunder, to prevent dilution or enlargement of Participants’ rights under the
Plan and an adjustment shall be made successively each time any such change
shall occur.  Such adjustment shall be effected by one or more of the
following, as applicable:  (i) adjusting the number and kind of Shares
that may be issued under the Plan, the number and kind of Shares subject to
outstanding Awards, and where applicable, the exercise price, base value or
purchase price applicable to such Awards; (ii) granting a right to receive one
or more payments of securities, cash and/or property (which right may be
evidenced as an additional Award under the Plan) in respect of any Award, (iii)
in the case of an Award other than an Option or Stock Appreciation Right,
providing that the Award shall be settled in such securities, cash and/or other
property as would have been received had the Award been settled in full
immediately prior to the Recapitalization; provided, however, that in the
case of an adjustment made in accordance with (ii) or (iii) above, the right to
any securities, cash and/or property may be issued subject to the same vesting
schedule as the Award being adjusted; and provided further, that any
adjustment pursuant to this Section 13 shall
comply with Section 409A of the Code, to the extent
applicable.  Should the vesting of any Award be conditioned upon the
Company’s attainment of performance conditions, the Board may make such
adjustments to the terms and conditions of such Awards and the criteria therein
to recognize unusual and nonrecurring events affecting the Company or in
response to changes in applicable laws, regulations or accounting
principles.

     

    13.2           Change of
Control.  Upon the occurrence of a Change of Control after the
Effective Date, unless otherwise specifically prohibited under applicable laws
or by the rules and regulations of any governing governmental agencies or
national securities exchanges, or unless the Committee shall determine otherwise
in the Award Agreement, the Committee is authorized (but not obligated) to make
adjustments in the terms and conditions of outstanding Awards, including,
without limitation, the following (or any combination thereof): (i) continuation
or assumption of such outstanding Awards under the Plan by the Company (if it is
the surviving company or corporation) or by the surviving company or corporation
or its parent; (ii) substitution by the surviving company or corporation or its
parent of awards with substantially the same terms for such outstanding Awards;
(iii) accelerated exercisability, vesting and/or lapse of restrictions under all
then outstanding Awards immediately prior to the occurrence of such event; (iv)
upon written notice, provide that any outstanding Awards must be exercised, to
the extent then exercisable, within fifteen (15) days immediately prior to the
scheduled consummation of the event, or such other period as determined by the
Committee (in either case contingent upon the consummation of the event), and at
the end of such period, such Awards shall terminate
to the extent not so exercised within the relevant period; and (v) cancellation
of all or any portion of outstanding Awards for fair value (as determined in the
sole discretion of the Committee) which, in the case of Options and Stock
Appreciation Rights, may equal the excess, if any, of the value of the
consideration to be paid in the Change of Control transaction to holders of the
same number of Shares subject to such Options or Stock Appreciation Rights (or,
if no such consideration is paid, Fair Market Value of the Shares subject to
such outstanding Awards or portion thereof being canceled) over the aggregate
Option Price or grant price, as applicable, with respect to such Awards or
portion thereof being canceled.  

     

    
      
        
        

      

      
        - 12
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    Article 14.  Duration,
Amendment, Modification, Suspension, and Termination

     

    14.1           Duration of the
Plan.  Unless sooner terminated as provided in Section 14.2, the
Plan shall terminate on the tenth (10th) anniversary of the Effective
Date.

     

    14.2           Amendment, Modification, Suspension,
and Termination of Plan.  The Board may amend, alter, suspend,
discontinue or terminate the Plan or any portion thereof or any Award (or Award
Agreement) thereunder at any time; provided that no such
amendment, alteration, suspension, discontinuation or termination shall be made
(i) without shareholder approval if such approval is necessary to comply with
any tax or regulatory requirement applicable to the Plan and (ii) without the
consent of the Participant, if such action would materially diminish any of the
rights of any Participant under any Award theretofore granted to such
Participant under the Plan; provided, however, the
Committee may amend the Plan, any Award or any Award Agreement in such manner as
it deems necessary to comply with applicable laws.

     

    Article 15.  General
Provisions

     

    15.1           No Right to
Service.  The granting of an Award under the Plan shall impose
no obligation on the Company, any Subsidiary or any Affiliate to continue the
Service of a Participant and shall not lessen or affect any right that the
Company, any Subsidiary or any Affiliate may have to terminate the Service of
such Participant.  No Participant or other Person shall have any claim
to be granted any Award, and there is no obligation for uniformity of treatment
of Participants, or holders or beneficiaries of Awards.  The terms and
conditions of Awards and the Committee’s determinations and interpretations with
respect thereto need not be the same with respect to each Participant (whether
or not such Participants are similarly situated).

     

    15.2           Settlement of Awards; No Fractional
Shares.  Each Award Agreement shall establish the form in which
the Award shall be settled.  No fractional Shares shall be issued or
delivered pursuant to the Plan or any Award.  The Committee shall
determine whether cash, Awards, other securities or other property shall be
issued or paid in lieu of fractional Shares or whether such fractional Shares or
any rights thereto shall be rounded, forfeited or otherwise
eliminated.

     

    15.3           Tax
Withholding.  The Company shall have the power and the right to
deduct or withhold, or require a Participant to remit to the Company, the
minimum statutory amount to satisfy federal, state, and local taxes, domestic or
foreign, required by law or regulation to be withheld with respect to any
taxable event arising as a result of the Plan.  With respect to
required withholding, Participants may elect, subject to the approval of the
Committee, to satisfy the withholding requirement, in whole or in part, by
having the Company withhold Shares having a Fair Market Value on the date the
tax is to be determined equal to the minimum statutory total tax that could be
imposed on the transaction. 

     

    15.4           No Guarantees Regarding Tax
Treatment.  Participants (or their beneficiaries) shall be
responsible for all taxes with respect to any Awards under the
Plan.  The Committee and the Company make no guarantees to any person
regarding the tax treatment of Awards or payments made under the
Plan.  Neither the Committee nor the Company has any obligation to
take any action to prevent the assessment of any excise tax on any person with
respect to any Award under Section 409A of the Code or otherwise and none
of the Company, any of its Subsidiaries or Affiliates, or any of their employees
or representatives shall have any liability to a Participant with respect
thereto.

     

    15.5           Section 16
Participants.  With respect to Participants subject to Section
16 of the Exchange Act, transactions under the Plan are intended to comply with
all applicable conditions of Rule 16b-3 or its successors under the Exchange
Act.  To the extent any provision of the Plan or action by the
Committee fails to so comply, it shall be deemed null and void, to the extent
permitted by law and deemed advisable by the Committee.

     

    
      
        
        

      

      
        - 13
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    15.6           Non-Transferability of
Awards.  Unless otherwise determined by the Committee, an Award
shall not be transferable or assignable by the Participant except in the event
of his death (subject to the applicable laws of descent and distribution) and
any such purported assignment, alienation, pledge, attachment, sale, transfer or
encumbrance shall be void and unenforceable against the Company or any
Affiliate.  An Award exercisable after the death of a Participant may
be exercised by the legatees, personal representatives or distributees of the
Participant.  Any permitted transfer of the Awards to heirs or
legatees of the Participant shall not be effective to bind the Company unless
the Committee shall have been furnished with written notice thereof and a copy
of such evidence as the Committee may deem necessary to establish the validity
of the transfer and the acceptance by the transferee or transferees of the terms
and conditions hereof.

     

    15.7           Conditions and Restrictions on
Shares.  The Committee may impose such other conditions or
restrictions on any Shares received in connection with an Award as it may deem
advisable or desirable.  These restrictions may include, but shall not
be limited to, a requirement that the Participant hold the Shares received for a
specified period of time or a requirement that a Participant represent and
warrant in writing that the Participant is acquiring the Shares for investment
and without any present intention to sell or distribute such
Shares.  The certificates for Shares may include any legend which the
Committee deems appropriate to reflect any conditions and restrictions
applicable to such Shares.

     

    15.8           Compliance with
Law.  The granting of Awards and the issuance of Shares under
the Plan shall be subject to all applicable laws, rules and regulations, and to
such approvals by any governmental agencies, Nasdaq or stock exchanges on which
the Shares are admitted to trading or listed, as may be required.  The
Company shall have no obligation to issue or deliver evidence of title for
Shares issued under the Plan prior to:

     

    
      	
               
      

            	
              (a)

            	
              Obtaining
      any approvals from governmental agencies that the Company determines are
      necessary or advisable; and

            

    

     

    
      	
               
      

            	
              (b)

            	
              Completion
      of any registration or other qualification of the Shares under any
      applicable national, state or foreign law or ruling of any governmental
      body that the Company determines to be necessary or
    advisable.

            

    

     

    The
restrictions contained in this Section 15.8 shall be
in addition to any conditions or restrictions that the Committee may impose
pursuant to Section
15.7.  The inability of the Company to obtain authority from
any regulatory body having jurisdiction, which authority is deemed by the
Company’s counsel to be necessary to the lawful issuance and sale of any Shares
hereunder, shall relieve the Company of any liability
in respect of the failure to issue or sell such Shares as to which such
requisite authority shall not have been obtained.

     

    15.9           Rights as a
Shareholder.  Except as otherwise provided herein or in the
applicable Award Agreement, a Participant shall have none of the rights of a
shareholder with respect to Shares covered by any Award until the Participant
becomes the record holder of such Shares.

     

    15.10                      Severability.  If
any provision of the Plan or any Award is or becomes or is deemed to be invalid,
illegal or unenforceable in any jurisdiction, or as to any Person or Award, or
would disqualify the Plan or any Award under any law deemed applicable by the
Committee, such provision shall be construed or deemed amended to conform to
applicable laws, or if it cannot be so construed or deemed amended without, in
the determination of the Committee, materially altering the intent of the Plan
or the Award, such provision shall be stricken as to such jurisdiction, Person
or Award, and the remainder of the Plan and any such Award shall remain in full
force and effect.

     

    
      
        
        

      

      
        - 14
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    15.11                      Unfunded
Plan.  Participants shall have no right, title or interest
whatsoever in or to any investments that the Company or any of its Subsidiaries
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 or any of its Subsidiaries
under the Plan, such right shall be no greater than the right of an unsecured
general creditor of the Company or a Subsidiary, as the case may
be.  All payments to be made hereunder shall be paid from the general
funds of the Company or a Subsidiary, as the case may be, and no special or
separate fund shall be established and no segregation of assets shall be made to
assure payment of such amounts.  The Plan is not subject to the U.S.
Employee Retirement Income Security Act of 1974, as amended from time to
time.

     

    15.12                      No Constraint on Corporate
Action.  Nothing in the Plan shall be construed to (a) limit,
impair, or otherwise affect the right or power of the Company or any of its
Subsidiaries to make adjustments, reclassifications, reorganizations or changes
of its capital or business structure, or to merge or consolidate, or dissolve,
liquidate, sell or transfer all or any part of its business or assets, or (b)
limit the right or power of the Company or any of its Subsidiaries to take any
action which such entity deems to be necessary or appropriate.

     

    15.13                      Successors.  All
obligations of the Company under the Plan with respect to Awards granted
hereunder shall be binding on any successor to the Company, whether the
existence of such successor is the result of a direct or indirect purchase,
merger, consolidation, or otherwise, of all or substantially all of the business
or assets of the Company.

     

    15.14                      Governing Law.  The
Plan and each Award Agreement shall be governed by the laws of the State of New
York, excluding any conflict or choice of law rule or principle that might
otherwise refer construction or interpretation of the Plan to the substantive
law of another jurisdiction.

     

    15.15                      Effective Date.  The
Plan shall be effective as of the date of adoption by the Board, which date is
set forth below (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
twelve (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, 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.

     

    
      
         

      

      
        - 15
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    The Plan was duly adopted and
approved by the Board by resolution at a meeting held on the 25th day of
September, 2007.

    

    

    

    

    

    /s/ David W.
Knickel

    
      
        

      

    

    David W.
Knickel

    Secretary
of the Company

    

     

    
 

     

     

    
      Signature
Page to Unitek Holdings, Inc.

      2007
Equity Incentive PlanUnassociated Document

    
      EMPLOYMENT
AGREEMENT

       

      THIS AGREEMENT is made as of
January 21, 2010

       

      B E T W E
E N:

       

      ZION OIL AND GAS INC., a
Company incorporated under the laws of Delaware.

       

      (the
"Company")

       

      and
-

       

      JOHN
BROWN

       

      (the
"Employee")

       

      

       

      CONTEXT
OF THIS AGREEMENT

       

      A.                      The
Company explores for oil and gas in Israel.

       

      B.                      
Employee has been serving as Chairman of the Board of Directors (“Board”) of the
Company since April 2000 and, in January 2008, Employee and the Company entered
into an agreement, which terminated on December 31, 2009, pursuant to which JB
served as Chairman of the Board.

       

      C.                      The
Company wishes to employ the Employee as Executive Chairman of the Board upon
the terms and conditions as set out herein.

       

      FOR VALUE RECEIVED, the
sufficiency of which is acknowledged, the parties agree as follows:

       

      PART
1

      INTERPRETATION

       

      1.1                      Definitions.  In
this Agreement, the following terms shall have the following
meanings:

       

      "Agreement" means this
agreement and all schedules attached hereto and all amendments made hereto and
thereto in writing by the parties.

       

      "Business Day" means a day
other than a Saturday, Sunday or statutory holiday in the U.S.A.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      2

       

       

      "Person" includes individuals,
companies, limited partnerships, general partnerships, joint stock companies,
joint ventures, associations, companies, trusts or other organizations, whether
or not legal entities.

       

      1.2                      Entire Agreement. This
Agreement together with the agreements and other documents to be delivered
pursuant to this Agreement (or other agreements pertaining to employee benefits,
including, without limitation, stock option and bonus plan agreements),
constitute the entire agreement between the parties pertaining to the subject
matter of this Agreement and supersede all prior agreements, understandings,
negotiations and discussions, whether oral or written, of the parties and there
are no warranties, representations or other agreements between the parties in
connection with the subject matter of this Agreement except as specifically set
forth in this Agreement and any document delivered pursuant to this
Agreement.  No supplement, modification or waiver or termination of
this Agreement shall be binding unless executed in writing by the party to be
bound thereby.

       

      1.3                      Sections and
Headings.  The division of this Agreement into parts and
sections and the insertion of headings are for convenience of reference only and
shall not affect the construction or interpretation of this
Agreement.  The terms "this Agreement", "hereof", "hereunder" and
similar expressions refer to this Agreement and not to any particular article,
section or other portion hereof and include any agreement or instrument
supplemental or ancillary hereto.  Unless something in the subject
matter or context is inconsistent therewith, references herein to parts and
sections are to parts and sections of this Agreement.

       

      1.4                      Number &
Gender.  Words importing the singular number only shall include
the plural and vice versa and words importing the masculine gender shall include
the feminine and neuter genders and vice versa.

       

      1.5                      Applicable
Law.  This Agreement shall be construed and enforced in
accordance with the laws of the State of Texas applicable therein.

       

      1.6                      Currency.  Unless
otherwise specified, all references herein to currency shall be references to
currency of the United States.

       

      1.7                      Calculation of
Time.  When calculating the period of time within which or
following which any act is to be done or step taken pursuant to this Agreement,
the date which is the reference date in calculating such period shall be
excluded.  If the last day of such period is a non Business Day, the
period in question shall end on the next Business Day.

       

      PART
2

      APPOINTMENT AND
DUTIES

       

      2.1                      Appointment.  The
Company agrees to employ the Employee as the Executive Chairman of the Board
upon the terms and conditions contained herein and the Employee accepts such
appointment.

       

      2.2                      Term.  The
employment of the Employee hereunder shall commence effective January 1, 2010
and shall continue for an initial term until December 31, 2012 (the “Initial
Term”) unless terminated in accordance with the provisions of this
Agreement.  This Agreement shall be renewed for successive two year
terms (each a “Renewal Term”) unless the Company or Employee indicates in
writing, more than 90 days prior to the termination of this Initial term or any
Renewal term, that it does not intend to renew this Agreement.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      3

       

       

      2.3                      Duties and
Reporting.  The Employee will report directly to the Board of
the Company and shall carry out all duties and responsibilities which are from
time to time assigned to him by the Board.

       

      PART
3

      BENEFITS &
EXPENSES

       

      3.1           Gross Salary. During the term
hereof, and subject to the performance of the services required to be performed
hereunder by Employee, the Company shall pay to the Employee for all services
rendered hereunder, as salary, payable not less often than once per month and in
accordance with the Company's normal and reasonable payroll practices, a monthly
gross amount equal to $ 13,750 (the "Gross Salary"). The Gross Salary shall be
reviewed periodically and may be favorably adjusted along with other benefits
accordingly.

      

      Gross
Salary shall be deferred in an amount equal to the percentage being paid by the
Company to its other senior executive officers from time to time. Currently, the
Company pays 80% of salaries up to the maximum amount of $15,500 monthly as
gross salary to senior executive officers. The Gross Salary which is deferred
shall be paid at such time and in accordance with the amount being paid to other
Company senior executive officers. For the purposes of this Section 3.1 senior
executive offices include the CEO and CFO.

      

      3.2           Sign-On Bonus. Employee will
receive a sign-on bonus of $ 25,000, payable as a one-time payment as soon as
practicable after the signing of this agreement but no later than the firth
(5th)
business day thereafter, less the deductions set forth in Section 3.9
below.

      

      3.3           Vehicle.  Company
shall provide Employee with use of a vehicle and the Company shall pay for
registration, gas, maintenance and insurance.

      

      3.4           Cell Phone. Company shall
provide the Employee with a cell phone and pay for its maintenance and
use.

      

      3.5           Benefits.  (i)  
The Employee shall be entitled to participate in all of the Company's benefit
plans generally available to its senior level employees from time to
time.

       

      (ii) The
Employee shall be entitled to fully participate in any profit sharing plan,
royalty pool, management incentive plan or similar plan or arrangement,
including, but not limited to, a long term management incentive plan as
described in Section 6 of Employee’s Personal Employment Agreement with the
Company dated January 1, 2004, on the most favorable basis as, and at the same
time as, any other senior officer or consultant of the Company in the event any
such plan or arrangement is made available to them by written contract or
otherwise.  Notwithstanding any other provision in this Agreement to
the contrary, this Section 3.5(ii) and the rights conferred on Employee herein
shall survive the termination or expiration of this Agreement. Any questions
which arise as to entitlement hereunder shall be resolved in favour of the
Employee.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      4

       

       

      3.6           Expenses All expenses
reasonably incurred by the Employee shall be reimbursed, together with any
applicable sales and goods and services taxes, by the Company within 10 Business
Days after presentation by the Employee of proper invoices and receipts in
keeping with the policies of the Company as established from time to
time.

       

      In the
event that the Parties deem it in the best interest of the Company for Employee
to work in the State of Israel, the Company shall pay to Employee all reasonably
incurred one time moving expenses (customarily paid by companies under such
circumstances) for Employee and his wife to move to the State of Israel and,
upon cessation of work in the State of Israel, to move back to the United
States. In addition, while the Employee resides in the State of Israel, the
Company shall pay monthly rental for a residence for Employee (“Rental
Expenses”) and 'per diem' expenses of $800 in the aggregate per
month.

       

      3.7          
Options. Subject to the
Employee entering into the Company's standard Employee Stock Option agreement,
for services required to be performed hereunder by Employee, the Employee shall
be entitled to participate in an employee stock option plan of the Company.
Company shall grant to Employee under Company’s 2005 Stock Option Plan non
qualified options for 20,000 shares of Common Stock of the Company, which so
long as Employee remains in the employ of the Company shall vest as follows and
in accordance with the terms of the Company’s standard Employee Stock Option
agreement: - options for 5,000 shares shall vest at the end of each 90 day
period, commencing March 31, 2010. The vested options shall be exercisable until
January 31, 2020. The per share exercise price of the options shall be $0.01. In
the event that this Agreement continues after the Initial Term, the Company
shall grant to the Employee additional stock options which in no event shall be
less than the per term amount granted herein with such other terms to be agreed
upon by the parties.

      

      3.8           Vacation. The Employee shall
be entitled to an annual vacation of twenty three (23) working days at full pay.
Vacation days may be accumulated for two (2) years, after which they must be
used or redeemed; provided that accumulation of vacation days in excess of forty
six  (46) days may be approved by the Board in its discretion.
Vacation days shall be prorated for any portion of a year to the date of
termination.

      

      

      3.9           Withholding Tax Company shall
withhold, or charge Employee with, all taxes and other compulsory payments as
required under applicable law with respect to all payments, benefits and/or
other compensation paid to Employee in connection with his employment with
Company.

      

      3.10          Insurance.  In
lieu of Employee’s participation in the Company’s health insurance program, the
Company shall reimburse Employee a monthly sum of $2,000 and Employee shall be
responsible for his (and his dependents’) health insurance.

      

      3.11          Office
Allowance.  Employee frequently conducts Company business in locations
other than the Company’s corporate office and outside of normal business hours.
As a result, Employee requires the use of an office, secretarial services and
other customary office expenses.  The Company shall therefore pay
Employee a monthly office allowance of up to $3,500.

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      5

      
 

      PART
4

      EMPLOYEE'S
COVENANTS

       

      4.1           Service.  The
Employee shall devote approximately seventy five percent (75%) of all his
business time, attention and ability to the business of the Company and shall
well and faithfully serve the Company and shall use his best efforts to promote
the interests of the Company. The Employee appreciates that the Employee's
duties may involve significant travel from the Employee's place of employment,
and the Employee agrees to travel as reasonably required in order to fulfill the
Employee's duties. The Employee may sit on boards of other companies unless
there is a reasonable basis upon which the Company may deny him the right to do
so.

       

      4.2           Duties and Responsibilities.
The Employee shall duly and diligently perform all the duties assigned to him
while in the employ of the Company, and shall truly and faithfully account for
and deliver to the Company all money, securities and things of value belonging
to the Company which the Employee may from time to time receive for, from or on
account of the Company.

       

      4.3           Rules and Regulations. The
Employee shall be bound by and shall faithfully observe and abide by all the
rules and regulations of the Company from time to time in force which are
brought to his notice including insider trading policies and underwriter lock
ups, from time to time in force which are brought to his notice.

       

      PART
5

      CONFIDENTIAL INFORMATION AND
DEVELOPMENTS

       

      5.1                      "Confidential Information"
means information, whether or not originated by the Employee, that relates to
the business or affairs of the Company, its affiliates, clients or suppliers and
is confidential or proprietary to, about or created by the Company, its
affiliates, clients, or suppliers.  Confidential Information includes,
but is not limited to, the following types of confidential information and other
proprietary information of a similar nature (whether or not reduced to writing
or designated or marked as confidential):

       

      
        	
                 
      

              	
                (i)

              	
                work
      product resulting from or related to work or projects performed for or to
      be performed for the Company or its affiliates, including but not limited
      to, the interim and final lines of inquiry,
      hypotheses,  research and conclusions related thereto and the
      methods, processes, procedures, analysis, techniques and audits used in
      connection therewith;

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                computer
      software of any type or form and in any stage of actual or anticipated
      development, including but not limited to, programs and program modules,
      routines and subroutines, procedures, algorithms, design concepts, design
      specifications (design notes, annotations, documentation, flowcharts,
      coding sheets, and the like), source code, object code and load modules,
      programming, program patches and system
designs;

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                information
      relating to developments (as hereinafter defined) prior to any public
      disclosure thereof, including but not limited to, the nature of the
      developments, production data, technical and engineering data, test data
      and test results, the status and details of research and development of
      products and services, and information regarding acquiring, protecting,
      enforcing and licensing proprietary rights (including patents, copyrights
      and trade secrets);

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      6

       

       

      
        	
                 
      

              	
                (iv)

              	
                internal
      Company personnel and financial information, vendor names and other vendor
      information, purchasing and internal cost information, internal services
      and operational manuals, and the manner and method of conducting the
      Company's business;

              

      

       

      
        	
                 
      

              	
                (v)

              	
                marketing
      and development plans, price and cost data, price and fee amounts, pricing
      and billing policies, quoting procedures, marketing techniques and methods
      of obtaining business, forecasts and forecast assumptions and volumes, and
      future plans and potential strategies of the Company that have been or are
      being discussed; and

              

      

       

      
        	
                 
      

              	
                (vi)

              	
                all
      information that becomes known to the Employee as a result of employment
      that the Employee, acting reasonably, believes is confidential information
      or that the Company takes measures to
protect.

              

      

       

      5.2                      Confidential
Information does not include:

       

      
        	
                 
      

              	
                (i)

              	
                the
      general skills and experience gained during the Employee's employment or
      engagement with the Company that the Employee could reasonably have been
      expected to acquire in similar employment or engagements with other
      companies;

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                information
      publicly known without breach of this Agreement or similar agreements;
      or

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                information,
      the disclosure of which is required to be made by any law, regulation,
      governmental authority or court (to the extent of the requirement),
      provided that before disclosure is made, notice of the requirement is
      provided to the Company, and to the extent of the requirement, (to the
      extent reasonably possible in the circumstances) the Company is afforded
      an opportunity to dispute the
requirement.

              

      

       

      5.3                             
"Developments" means all
discoveries, inventions, designs, works of authorship, improvements and ideas
(whether or not patentable or copyrightable) and legally recognized proprietary
rights (including, but not limited to, patents, copyrights, trademarks,
topographies, know how and trade secrets), and all records and copies of records
relating to the foregoing, that relates solely to the Company's
business  and improvements and modifications to it:

       

      
        	
                 
      

              	
                (i)

              	
                result
      or derive from the Employee's employment or from the Employee's knowledge
      or use of Confidential Information;

              

      

       

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      7

       

       

      
        	
                 
      

              	
                (ii)

              	
                are
      conceived or made by the Employee (individually or in collaboration with
      others) during the term of the Employee's employment by the
      Company;

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                result
      from or derive from the use or application of the resources of the Company
      or its affiliates; or

              

      

       

      
        	
                 
      

              	
                (iv)

              	
                relate
      to the business operations of or actual or demonstrably anticipated
      research and development by the Company or its
  affiliates.

              

      

       

      For
greater certainty, discoveries, inventions, designs, works of authorship,
improvements and ideas (whether or not patentable or copyrightable) of the
Employee that do not relate to the business of the Company are not the subject
matter of this Agreement.

       

      PART
6

      NO CONFLICTING
OBLIGATIONS

       

      6.1                              
The Employee warrants to the Company that:

       

      
        	
                 
      

              	
                (i)

              	
                the
      performance of the Employee's duties as an employee of the Company will
      not breach any agreement or other obligation to keep confidential the
      proprietary information of any other party;
and

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                the
      Employee is not bound by any agreement with or obligation to any other
      party that conflicts with the Employee's obligations as an employee of the
      Company or that may affect the Company's interest in the
      Developments.

              

      

       

      6.2                              
The Employee will not, in the performance of the Employee's duties as an
employee of the Company:

       

      
        	
                 
      

              	
                (i)

              	
                improperly
      bring to the Company or use any trade secrets, confidential information or
      other proprietary information of any other party;
  or

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                knowingly
      infringe the intellectual property rights of any other
    party.

              

      

       

      PART
7

       

      CONFIDENTIAL
INFORMATION

       

      7.1                      Protection of Confidential
Information. All Confidential Information, whether it is developed by the
Employee during the Employment Period or by others employed or engaged by or
associated with the Company or its affiliates or clients, is the exclusive and
confidential property of the Company or its affiliates or clients, as the case
may be, and will at all times be regarded, treated and protected as such, as
provided in this Agreement.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      8

       

       

       

      7.2                      Covenants Respecting Confidential
Information. As a consequence of the acquisition of Confidential
Information, the Employee will occupy a position of trust and confidence with
respect to the affairs and business of the Company and its affiliates and
clients. In view of the foregoing, it is reasonable and necessary for the
Employee to make the following covenants regarding the Employee's conduct during
and subsequent to the Employee's employment by the Company.

       

      7.3                      Non Disclosure.  At
all times during and subsequent to the Employee's employment with the Company,
the Employee will not disclose Confidential Information to any Person (other
than as necessary in carrying out the Employee's duties on behalf of the
Company) without first obtaining the Company's consent, and the Employee will
take all reasonable precautions to prevent inadvertent disclosure of any
Confidential Information. This prohibition includes, but is not limited to,
disclosing or confirming the fact that any similarity exists between the
Confidential Information and any other information.

       

      7.4                      Using, Copying,
etc.  At all times during and subsequent to the Employee's
employment with the Company, the Employee will not use, copy, transfer or
destroy any Confidential Information (other than as necessary in carrying out
the Employee's duties on behalf of the Company) without first obtaining the
Company's consent, and the Employee will take all reasonable precautions to
prevent inadvertent use, copying, transfer or destruction of any Confidential
Information. This prohibition includes, but is not limited to, licensing or
otherwise exploiting, directly or indirectly, any products or services that
embody or are derived from Confidential Information or exercising judgment or
performing analysis based upon knowledge of Confidential
Information.

       

      7.5                      Return of Confidential
Information.  Within 2 Business Days after the termination of
the Employee's employment on any basis and of receipt by the Employee of the
Company's written request, the Employee will promptly deliver to the Company all
property of or belonging to or administered by Company including without
limitation all Confidential Information that is embodied in any physical or
ephemeral form, whether in hard copy or on magnetic media, and that is within
the Employee's possession or under the Employee's control.

       

      7.6                      Obligations
Continue.  The Employee's obligations under this Part 7 are to
remain in effect in perpetuity.

       

      PART
8

      INTELLECTUAL
PROPERTY

       

      8.1                      Ownership.  All
Developments will be the exclusive property of the Company and the Company will
have sole discretion to deal with Developments. For greater certainty, all work
done during the Employment Period by the Employee for the Company or its
affiliates is a work for hire of which the Company or its affiliate, as the case
may be, is the first author for copyright purposes and in respect of which all
copyright will vest in the Company or the relevant affiliate, as the case may
be.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      9

       

       

       

      8.2                      Records.  The
Employee will keep complete, accurate and authentic notes, reference materials,
data and records of all Developments in the manner and form requested by the
Company. All these materials will be Confidential Information upon their
creation.

       

      8.3                      Moral Rights.  The
Employee hereby irrevocably waives all moral rights arising under statute in any
jurisdiction or under common law which the employee may have now or in the
future with respect to the Developments, including, without limitation, any
rights the Employee may have to have the Employee's name associated with the
Developments or to have the Employee's name not associated with the
Developments, any rights the Employee may have to prevent the alteration,
translation or destruction of the Developments, and any rights the Employee may
have to control the use of the Developments in association with any product,
service, cause or institution. The Employee agrees that this waiver may be
invoked by the Company, and by any of its authorized agents or assignees, in
respect of any or all of the Developments and that the Company may assign the
benefit of this waiver to any Person.

       

      8.4                      Further
Assurances.  The Employee will do all further things that may
be reasonably necessary or desirable in order to give full effect to the
foregoing. If the Employee's co-operation is required in order for the Company
to obtain or enforce legal protection of the Developments following the
termination of the Employee's employment, the Employee will provide that
co-operation so long as the Company pays to the Employee reasonable compensation
for the Employee's time at a rate to be agreed, provided that the rate will not
be less than the last base salary or compensation rate paid to the Employee by
the Company during the Employee's employment.

       

      8.5                      Obligations
Continue.  The Employee's obligations under this Part 8 are to
remain in effect in perpetuity.

       

      PART
9

      CONSENT TO
ENFORCEMENT

       

      The
Employee confirms that all restrictions in Part 7 and 8 are reasonable and valid
and all defences to the strict enforcement thereof by the Company are waived by
the Employee. Without limiting the generality of the forgoing, the Employee
hereby consents to an injunction being granted by a court of competent
jurisdiction in the event that the Employee is in any breach of any of the
provisions stipulated in Part 7 and 8. The Employee hereby expressly
acknowledges and agrees that injunctive relief is an appropriate and fair remedy
in the event of a breach of any of the said provisions.

       

      PART
10

      WARRANTIES, COVENANTS AND
REMEDIES

       

      10.1                      The
obligations of the Employee as set forth in Parts 6 through 9 will be deemed to
have commenced as of the date on which the Employee was first employed by
Company. The Employee warrants that the Employee has not, to date, breached any
of the obligations set forth in any of those Sections. Any breach or threatened
breach of those sections by the Employee will constitute Just Cause for
immediate termination of the Employee's employment or engagement by the
Company.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      10

       

       

       

      10.2                      The
Employee understands that the Company has expended significant financial
resources in developing its products and the Confidential Information.
Accordingly, a breach or threatened breach by the Employee of any of Parts 6
through 9 could result in unfair competition with the Company and could result
in the Company and its shareholders suffering irreparable harm that is not
capable of being calculated and that cannot be fully or adequately compensated
by the recovery of damages alone. Accordingly, the Employee agrees that the
Company will be entitled to interim and permanent injunctive relief, specific
performance and other equitable remedies, in addition to any other relief to
which the Company may become entitled.

       

      10.3                      The
Employee's obligations under each of Parts 6 through 9 are to remain in effect
in accordance with each of their terms and will exist and continue in full force
and effect despite any breach or repudiation of this Agreement or the Employee's
employment (including, without limitation, the Employee's wrongful dismissal) by
the Company.

       

      PART
11

      TERMINATION

       

      11.1                      Termination by the
Employee.  The Employee may terminate this Agreement upon 60
Business Days prior written notice given by the Employee to the
Company.  The Company, at its sole discretion, may elect to accept the
60 Business Days written notice or to reduce or eliminate the notice
period.  In such event, the Employee's employment shall terminate on
the earlier day elected by the Company.  Such election on the part of
the Company will not alter the nature of the termination as voluntary and the
Company will not be required to pay any severance or termination payments in
respect of a termination by the Employee under this Section
11.1.  Upon the termination of employment by the Employee under this
Section 11.1 the Company shall pay to the Employee all bonuses and other
benefits earned or accrued up to the date of termination, but otherwise all
obligations of the Company under this Agreement shall end.

       

      11.2                      Definition of "Just
Cause".  "Just Cause" means:

       

      (i)  Employee’s
conviction of, or plea of nolo contendere, to any felony or to a crime involving
moral depravity or fraud; (ii) Employee’s commission of an act of dishonesty or
fraud or breach of fiduciary duty or act that has a material adverse effect on
the name or public image of the Company, as determined by the Board provided the
Board affords the Employee  the opportunity to personally appear
before the Board in order to state his case prior to the Board voting to so
terminate the Employee;  (iii)  Employee’s commission of an
act of willful misconduct or gross negligence, as determined by the Board
provided the Employee shall have the opportunity to state his case before the
Board prior to the Board taking such decision to so terminate the Employee; (iv)
the failure of Employee to perform his duties under this Agreement; (v) the
material breach of any of Employee’s material obligations under this Agreement;
(vi) the failure of Employee to follow a directive of the Board; or (vii)
excessive absenteeism, chronic alcoholism or any other form of addiction that
prevents Employee from performing the essential functions of his position with
or without a reasonable accommodation; provided, however, that the
Company may terminate Employee’s employment for Just Cause, as
to  (iv) or (v)  above, only after failure by Employee to
correct or cure, or to commence or to continue to pursue the correction or
curing of, such conduct or omission within ten (10) days after receipt by
Employee of written notice by the Company of each specific claim of any such
misconduct or failure.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      11

       

      
 

      11.3                      Termination by the Company for Just
Cause.  The Company may terminate this Agreement at any time
for Just Cause without notice and (except as provided in the immediately
following sentence) without payment of any compensation by way of anticipated
earnings, damages, or other relief of any kind whatsoever.  Upon the
termination of employment by the Company for Just Cause, the Company shall pay
to the Employee all salaries, bonuses, vacation and other benefits, if any,
earned or accrued up to the date of termination, but otherwise all obligations
of the Company under this Agreement end.

       

      11.4                      Termination by the Company for Other
Than Just Cause.  The Company may terminate this Agreement at
any time for other than Just Cause upon the following terms:

       

      
        	 	      
                (a)

              	if
      the Company so terminates this Agreement at any time during the Initial
      Term of this Agreement, the Company shall pay to the Employee an amount
      equal to the base salary then payable, if any, for the longer of (a) the
      period from the date of such termination to the end of the Initial Term as
      if the Agreement had not been so terminated and (b) twelve months, and in
      all cases, subject to the deductions in Section 3.9;
	 	 	 
	
                 
      

              	
                (b)

              	
                if
      the Company so terminates this Agreement after the Initial Term or during
      a Renewal Term the Company shall pay the Employee an amount equal to the
      base salary, if any, then payable to the Employee for a period of twelve
      months as if the Agreement had not been so terminated or had been renewed,
      subject to the deductions in Section 3.9;
and

              

      

       

      
        	
                 
      

              	
                (c)

              	
                upon
      any such termination, all bonuses or other benefits earned or accrued up
      to the date of termination or expiry shall be paid by the Company, but
      except for such payments and the payments to be made pursuant to Sections
      11.4(a) or (b), as applicable, all obligations of the Company under this
      Agreement shall end upon such termination or failure to renew. Payments
      under Sections 11.4(a) or (b) shall be payable monthly subject to
      deductions in Section 3.9.

              

      

       

      11.5                      Termination by the Employee for Good
Reason.  The Employee may terminate this Agreement at any time
upon the occurrence of any of the following events (each a "Good Reason"), if such
occurrence takes place without the express written consent of the
Employee:

       

      
        	
                 
      

              	
                (i)

              	
                a
      change in the Employee's title or position or a material diminution in the
      Employee's duties or the assignment to the Employee of duties which
      materially impairs the Employee's ability to function in his current
      capacity for the Company, or, with respect to an assignment of duties
      only, is materially inconsistent with his
  duties;

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      12

       

       

       

      
        	
                 
      

              	
                (ii)

              	
                any
      material change in the Employee's direct reporting
      obligations;

              

      

       

      In the
event that the Employee terminates this Agreement for Good Reason, he shall be
entitled to the same payments and benefits as provided in Section 11.4 of this
Agreement as if the Company had terminated this Agreement at the time that the
Employee terminates this Agreement under this Section 11.5.

       

      11.6                      Full and Final
Release.  In order to be eligible for the payments as set forth
in this Section 11 the Employee must (i) execute and deliver to the Company a
general release, in a form satisfactory to the Company and Employee, and (ii) be
and remain in full compliance with his obligations under this
Agreement.

       

      11.7                      Fair and
Reasonable.  The parties confirm that the provisions contained
in Sections 11.4 and 11.5 are fair and reasonable and that all such payments
shall be in full satisfaction of all claims which the Employee may otherwise
have at law against the Company including, or in equity by virtue of such
termination of employment.

       

      11.8                      Return of
Property.  Upon the termination of the Employee's employment
for any reason whatsoever, the Employee shall at once deliver or cause to be
delivered to the Company all books, documents, effects, money, computer
equipment, computer storage media, securities or other property belonging to the
Company or for which the Company is liable to others, which are in the
possession, charge, control or custody of the Employee.

       

      11.9                      Provisions Which Operate Following
Termination.  Notwithstanding any termination of this Agreement
for any reason whatsoever, provisions of this Agreement necessary to give
efficacy thereto shall continue in full force and effect.

       

      11.10                      Board. Notwithstanding the
foregoing, the termination of Employee’s employment hereunder for any reason
shall automatically be deemed as Employee’s resignation from the Board of
Directors of the Company and any affiliates without any further action, except
when the Board shall, in writing, request a continuation of duty as a Director
in its sole discretion.

       

      PART
12

      GENERAL

       

      12.1                      Benefit &
Binding.  This Agreement shall enure to the benefit of and be
binding upon the respective successors and permitted assigns of the parties
hereto.

       

      12.2                      Amendments &
Waivers.  No amendment to this Agreement shall be valid or
binding unless set forth in writing and duly executed by all of the parties
hereto. No waiver of any breach of any provision of this Agreement shall be
effective or binding unless made in writing and signed by the party purporting
to give the same and, unless otherwise provided in the written waiver, shall be
limited to the specific breach waived.

       

      12.3                      Time.  Time shall be
of the essence of this Agreement.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      13

       

       

      12.4                      Assignment.  Neither
this Agreement nor the rights and obligations hereunder shall be assignable by
either party without the consent of the other.

       

      12.5                      Severability.  If
any provision of this Agreement is determined to be invalid or unenforceable in
whole or in part, such invalidity or unenforceability shall attach only to such
provision and all other provisions hereof shall continue in full force and
effect.

       

      12.6                      Attornment.  For the
purposes of all legal proceedings this Agreement shall be deemed to have been
performed in the State of Texas and the courts of Dallas County shall have
jurisdiction to entertain any action arising under this Agreement.

       

      PART
13

      ACKNOWLEDGEMENT

       

      The
Employee acknowledges that:

       

      
        	
                 
      

              	
                (i)

              	
                the
      Employee has received a copy of this
Agreement;

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                the
      Employee has had sufficient time to review and consider this Agreement
      thoroughly;

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                the
      Employee has read and understands the terms of this Agreement and his
      obligations under this Agreement;

              

      

       

      
        	
                 
      

              	
                (iv)

              	
                the
      restrictions placed upon the Employee by this Agreement are reasonably
      necessary to protect the Company's proprietary interests in the
      Confidential Information and the Developments and will not preclude the
      Employee from being gainfully employed in a suitable capacity following
      the termination of the Employee's employment, given the Employee's
      knowledge and experience;

              

      

       

      
        	
                 
      

              	
                (v)

              	
                the
      Employee has been given an opportunity to obtain independent legal advice,
      or such other advice as the Employee may desire, concerning the
      interpretation and effect of this Agreement and by signing this Agreement
      the Employee has either obtained advice or voluntarily waived the
      Employee's opportunity to receive the same;
and

              

      

       

      
        	
                 
      

              	
                (vi)

              	
                this
      Agreement is entered into voluntarily by the
  Employee.

              

      

       

      PART
14

      NOTICES

       

      Any
demand, notice or other communication (the "Notice") to be given in
connection with this Agreement shall be given in writing on a Business Day and
may be given by personal delivery or by transmittal by facsimile addressed to
the recipient as follows:

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      14

       

       

       

      
        	
                To
      the Company:

              	
                 

                Attention:

                 

                Facsimile:

              
	 
      	
                    
      

                 

                 

              
	
                To
      the Employee:

              	
                Facsimile:
      

              
	 
      	 
      

      

      or such
other address or facsimile number as may be designated by notice by any party to
the other.  Any Notice given by personal delivery will be deemed to
have been given on the day of actual delivery and if transmitted by facsimile
before 3:00 pm on a Business Day, will be deemed to have been given on that
Business Day and if transmitted by facsimile after 3:00 pm on a Business Day,
will be deemed to have been given on the next Business Day after the date of
transmission.

       

      PART
15

      FURTHER
ASSURANCES

       

      The
parties shall from time to time execute and deliver all such further documents
and do all acts and things as the other party may reasonably require to
effectively carry out or better evidence or perfect the full intent and meaning
of this Agreement.

       

      PART
16

      FAX
SIGNATURES

       

      This
Agreement may be signed either by original signature or by facsimile
signature.

       

      PART
17

      COUNTERPARTS

       

      This
Agreement may be executed by the parties in one or more counterparts, each of
which when so executed and delivered shall be an original and such counterparts
shall together constitute one and the same instrument.

       

      [REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

       

       

       

       

       

       

       

       

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      15

       

       

      IN WITNESS WHEREOF the parties
have duly executed this Agreement.

       

      
        	 
      	
                ZION
      OIL & GAS  INC.

                 

                /s/Richard
      Rinberg

                RICHARD
      RINBERG

                Chief
      Executive Officer

              
	 
      	
                 

                 

                 

                /s/ John
      Brown

                 

                JOHN
      BROWN

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