Document:

exv10w2

 

Exhibit 10.2

HYPERTENSION DIAGNOSTICS, INC.

2005 STOCK PLAN

Adopted by the Board of Directors on November 10, 2005

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	SECTION 1. General Purpose of Plan; Definitions.
	 	 	1	 
	 
	 	 	 	 
	SECTION 2. Administration.
	 	 	5	 
	 
	 	 	 	 
	SECTION 3. Stock Subject to Plan.
	 	 	6	 
	 
	 	 	 	 
	SECTION 4. Eligibility.
	 	 	7	 
	 
	 	 	 	 
	SECTION 5. Option Awards.
	 	 	7	 
	 
	 	 	 	 
	SECTION 6. Stock Appreciation Rights
	 	 	10	 
	 
	 	 	 	 
	SECTION 7. Restricted Stock Awards
	 	 	11	 
	 
	 	 	 	 
	SECTION 8. Deferred Stock Awards
	 	 	12	 
	 
	 	 	 	 
	SECTION 9. Change in Control.
	 	 	13	 
	 
	 	 	 	 
	SECTION 10. Dissolution, Liquidation, Merger.
	 	 	14	 
	 
	 	 	 	 
	SECTION 11. Substitute Awards.
	 	 	15	 
	 
	 	 	 	 
	SECTION 12. General Provisions.
	 	 	15	 
	 
	 	 	 	 
	SECTION 13. Amendments and Termination.
	 	 	18	 
	 
	 	 	 	 
	SECTION 14. Governing Law.
	 	 	18	 
	 
	 	 	 	 
	SECTION 15. Effective Date of Plan.
	 	 	18	 

 

 

HYPERTENSION DIAGNOSTICS, INC.

2005 STOCK PLAN

SECTION 1. General Purpose of Plan; Definitions.

     1.1 General Purpose. The name of this plan is the Hypertension Diagnostics, Inc.
20035 Stock Plan (the “Plan”). The purpose of the Plan is to enable Hypertension Diagnostics,
Inc. (the “Company”) and its Subsidiaries to retain and attract executives, other employees,
members of the Board of Directors, and Consultants who contribute to the Company’s success by their
ability, ingenuity and industry, and to enable such individuals to participate in the long-term
success and growth of the Company by giving them a proprietary interest in the Company.

     1.2 Definitions. For purposes of the Plan, the following terms shall be defined as
set forth below:

     (a) “Agreement” means an agreement by and between the Company and a Recipient
under the Plan setting forth the terms and conditions of an Award.

     (b) “Award” means the grant of an Option, Restricted Stock, Deferred Stock or
Stock Appreciation Right or any combination thereof pursuant to the terms of this Plan.

     (c) “Board” means the Board of Directors of the Company as it may be comprised
from time to time.

     (d) “Cause” means, except as may otherwise be provided in the terms of the
Award or in a written employment agreement between the Company and the Recipient, a material
breach of any written employment agreement between the Company and the Recipient, a material
breach of any code of conduct established by the Company, a felony conviction of a Recipient
or the failure of a Recipient to contest prosecution for a felony, or a Recipient’s willful
misconduct, dishonesty or gross negligence involving the business or reputation of the
Company.

     (e) “Change in Control” means, except as may otherwise be provided in the terms
of the Award Agreement or in a written employment agreement between the Company and the
Recipient, any of the following:

     (i) Any “person” (as such term is used in Sections 13(d) and 14(d) of
the Securities Exchange Act of 1934) who acquires or becomes a “beneficial
owner” (as defined in Rule 13d-3 or any successor rule under the Exchange
Act), directly or indirectly, of securities of the Company representing 50%
or more of the combined voting power of the Voting Securities, provided,
however, that the following shall not constitute a Change in Control
pursuant to this Section 1.2(e)(i):

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	 	(A)	 	any acquisition of Voting Securities or Stock of
the Company directly from the Company other than in connection with a
transaction described in Section 1.2(e)(iii) below;
	 
	 	(B)	 	any acquisition or beneficial ownership by the
Company or a Subsidiary;
	 
	 	(C)	 	any acquisition or beneficial ownership by any
employee benefit plan (or related trust) sponsored or maintained by the
Company or one or more of its Subsidiaries;
	 
	 	(D)	 	any acquisition or beneficial ownership by any
corporation with respect to which, immediately following such
acquisition, more than 50% of the combined voting power of the Company’s
then outstanding Voting Securities and the Stock of the Company is then
beneficially owned, directly or indirectly, by all or substantially all
of the persons who beneficially owned Voting Securities and Stock of the
Company immediately prior to such acquisition in substantially the same
proportions as their ownership of such Voting Securities and Stock, as
the case may be, immediately prior to such acquisition;

     (ii) A majority of the members of the Board of the Company shall not be
Continuing Directors;

     (iii) Approval by the stockholders of the Company of a reorganization,
merger or consolidation of the Company or a statutory exchange of
outstanding Voting Securities of the Company, unless, immediately following
such reorganization, merger, consolidation or exchange, all or substantially
all of the persons who were the beneficial owners, respectively, of Voting
Securities and Stock of the Company immediately prior to such
reorganization, merger, consolidation or exchange beneficially own, directly
or indirectly, more than 50% of, respectively, the combined voting power of
the then outstanding voting securities entitled to vote generally in the
election of directors and the then outstanding shares of common stock, as
the case may be, of the corporation resulting from such reorganization,
merger, consolidation or exchange in substantially the same proportions as
their ownership, immediately prior to such reorganization, merger,
consolidation or exchange, of the Voting Securities and Stock of the
Company, as the case may be; or

     (iv) Approval by the stockholders of the Company of (x) a complete
liquidation or dissolution of the Company or (y) the sale or other
disposition of all or substantially all of the assets of the Company (in one
or a series of transactions), other than to a corporation with respect to
which, immediately following such sale or other disposition, more than 50%
of, respectively, the combined voting power of the then outstanding voting
securities of such corporation entitled to vote generally in the election of
directors and the then outstanding shares of common stock of such
corporation is then beneficially owned, directly or indirectly, by all

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or substantially all of the persons who were the beneficial owners,
respectively, of the Voting Securities and Stock of the Company immediately
prior to such sale or other disposition in substantially the same
proportions as their ownership, immediately prior to such sale or other
disposition, of the Voting Securities and Stock of the Company, as the case
may be.

     (f) “Code” means the Internal Revenue Code of 1986, as amended from time to
time, or any successor statute.

     (g) “Committee” means the Committee referred to in Section 2.1 of the Plan.

     (h) “Company” means Hypertension Diagnostics, Inc., a corporation organized
under the laws of the State of Minnesota (or any successor corporation).

     (i) “Consultant” means any natural person providing bona fide services to the
Company or a Parent Corporation or a Subsidiary of the Company (other than persons either
providing services in connection with the offer or sale of securities in a capital raising
transaction or directly or indirectly promoting or maintaining a market for the Company’s
Stock), who is compensated for such services and who is not an employee of the Company or
any Parent Corporation or Subsidiary of the Company. A Non-Employee Director may serve as a
Consultant.

     (j) “Continuing Directors” means: (i) individuals who, on the date hereof, are
directors of the Company; (ii) individuals elected as directors of the Company subsequent to
the date hereof for whose election proxies shall have been solicited by the Board; or (iii)
any individual elected or appointed by the Board to fill vacancies on the Board caused by
death or resignation (but not by removal) or to fill newly-created directorships.

     (k) “Deferred Stock” means an Award made pursuant to Section 8 below of the
right to receive Stock at the end of a specified deferral period.

     (l) “Disability” means, except as may otherwise be provided in the terms of the
Award Agreement or in a written employment agreement between the Company and the Recipient,
permanent and total disability as determined by the Committee.

     (m) “Event” means the actual effective date of: (i) a transaction described in
Section 1.2(e)(iii), without regard to the exception contained therein; or (ii) a
transaction described in Section 1.2(e)(iv), without regard to the exception contained
therein.

     (n) “Event Proceeds per Share” means the cash plus the fair market value, as
determined in good faith by the Committee, of the non-cash consideration to be received per
share of Stock by the stockholders of the Company upon the occurrence of the Event.

     (o) “Fair Market Value” of Stock on any given date shall be determined by the
Committee as follows:

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     (i) If the Stock is listed for trading on one or more national
securities exchanges, or is traded on The Nasdaq Stock Market (including The
Nasdaq Small Cap Market), the last reported sales price on such national
securities exchange or The Nasdaq Stock Market on the day prior to the date
in question, or if such Stock shall not have been traded on such principal
exchange on such date, the last reported sales price on such principal
exchange on the first day prior thereto on which such Stock was so traded;
or

     (ii) If the Stock is not listed for trading on a national securities
exchange or The Nasdaq Stock Market, but is traded in the over-the-counter
market, including The Nasdaq OTC Bulletin Board, the closing bid price for
such Stock on the day prior to the date in question, or if there is no
closing bid price for such Stock on such date, the closing bid price on the
first day prior thereto on which such price existed; or

     (iii) If neither (i) nor (ii) is applicable, by any means fair and
reasonable as determined by the Committee, which determination shall be
final and binding on all parties.

     (p) “Incentive Option” means any Award intended to be and designated as an
“Incentive Stock Option” within the meaning of Section 422 of the Code.

     (q) “Non-Employee Director” means a non-employee director within the meaning of Rule
16b-3(b)(3) under the Securities Exchange Act of 1934.

     (r) “Non-Qualified Option” means any Option that is not an Incentive Option.

     (s) “Option” means any Award to purchase Stock granted pursuant to Section 5
below.

     (t) “Outside Director” means a Director who: (i) is not a current employee of
the Company or any member of an affiliated group which includes the Company; (ii) is not a
former employee of the Company who receives compensation for prior services (other than
benefits under a tax-qualified retirement plan) during the taxable year; (iii) has not been
an officer of the Company; and (iv) does not receive remuneration from the Company, either
directly or indirectly, in any capacity other than as a director, except as otherwise
permitted under Section 162(m) of the Code and regulations thereunder. For this purpose,
remuneration includes any payment in exchange for good or services. The provisions of
Section 162(m) of the Code and regulations promulgated thereunder shall further govern this
definition.

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

     (v) “Recipient” means any eligible person to whom an Award has been granted
under this Plan.

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     (w) “Restricted Stock” means an Award of shares of Stock pursuant to Section 7
below that are subject to restrictions or performance goals.

     (x) “Stock” means the common stock, $.01 par value per share, of the Company,
as designated in the Agreement governing the Award.

     (y) “Stock Appreciation Right” means the right, pursuant to an Award granted
under Section 6 below, to surrender to the Company all or a portion of a right in exchange
for an amount equal to the difference between (i) aggregate Fair Market Value, as of the
date the right or such portion thereof is exercised and surrendered, of the shares of Stock
covered by such right or such portion thereof, and (ii) the aggregate Fair Market Value of
such right or such portion thereof on the date such Award was made.

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

     (aa) “Voting Securities” means the Company’s then outstanding securities
entitled to vote generally in the election of directors.

SECTION 2. Administration.

     2.1 Authority. The Plan shall be administered by the Board or by a Committee
appointed by the Board consisting of at least three members of the Board, all of whom shall be
Non-Employee Directors and Outside Directors, and each of whom shall serve at the pleasure of the
Board. If at any time no Committee shall be in office, then the Board shall exercise the functions
of the Committee specified in the Plan. Any or all of the functions of the Committee specified in
the Plan may be exercised by the Board, except for Awards intended to comply with regulations under
Section 162(m) of the Code and regulations promulgated thereunder. References in the Plan to the
Committee shall also include the Board, unless the context clearly indicates otherwise.

     2.2 Powers. The Committee shall have the power and authority to grant Awards pursuant
to the terms of the Plan. In particular, the Committee shall have the authority:

     (a) Recipients. To select Recipients to whom Awards may from time to time be
granted hereunder;

     (b) Class. To determine whether and from what class of shares of Stock of the
Company Awards are to be granted hereunder;

     (c) Amount. To determine the number of shares of Stock to be covered by each
such Award granted hereunder;

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     (d) Terms and Conditions. To determine the terms and conditions, not
inconsistent with the terms of the Plan, of any Award granted hereunder (including, but not
limited to, any restriction on any Award and/or the Stock relating thereto)
provided, however, that upon the occurrence of an Event, the applicable
provisions of Section 9.1 of the Plan shall govern the acceleration of the vesting of any
Award;

     (e) Determination. To make any other determination and take any other action
that the Committee deems necessary or desirable for the administration of the Plan;

     (f) Rules. To adopt, alter and repeal such administrative rules, guidelines
and practices governing the Plan as it shall, from time to time, deem advisable; to
interpret the terms and provisions of the Plan and any award issued under the Plan (and any
agreements relating thereto); and to otherwise supervise the administration of the Plan;

     (g) Amendment. To amend the terms of any Award theretofore granted,
prospectively or retroactively, to the extent such amendment is consistent with the terms of
the Plan, but no such amendment shall impair the rights of any Recipient without his or her
consent except to the extent authorized under the Plan; and

     (h) Substitution. To substitute new Awards for previously granted Awards,
including previously granted Options having higher exercise prices.

     2.3 Delegation. Except to the extent prohibited by applicable law or the applicable
rules of a stock exchange, the Committee may delegate to any officer of the Company the authority
to exercise the powers specified in Section 2.2(a), (b), (c) and (d) above; provided, however, that
such authority shall not be exercised by any officer with respect to persons who are either the
chief executive officer of the Company or the four highest paid officers of the Company other than
the chief executive officer.

     2.4 Decisions Binding. All decisions made by the Committee pursuant to the provisions
of the Plan shall be final and binding on all persons, including the Company and all Recipients.

SECTION 3. Stock Subject to Plan.

     3.1 Shares Reserved for Issuance. The total number of shares of Stock reserved and
available for distribution under the Plan shall be:

     (a) with respect to the common stock of the Company, six million (6,000,000) shares of
Stock; and

     such shares shall consist of authorized and unissued shares of Stock of the Company. .

     3.2 Share Counting. If any shares of each class of Stock become available as a result
of canceled, unexercised, lapsed or terminated Awards under this Plan, such shares shall again be
available for distribution in connection with future awards under the Plan. Upon a stock-for-

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stock exercise of an Award, the withholding of Stock for the payment of the Option price or
the withholding of Stock for the payment of taxes on an Award, only the net number of shares of
Stock issued to the Recipient shall be used to calculate the number of shares remaining available
for distribution under the Plan.

     3.3 Adjustments. In the event of a corporate transaction involving the Company
(including, without limitation, any merger, reorganization, consolidation, recapitalization, stock
dividend, stock split, other change in corporate structure affecting any class of Stock, or
spin-off or other distribution of assets to stockholders) or other event affecting any class of
Stock which would be reasonably likely to result in the diminution or enlargement of any of the
benefits intended to be made available under the Plan or an Award, the Committee may, without the
consent of any Recipient, make such adjustment as it determines in its discretion to be appropriate
as to the number and kind of shares of Stock subject to and reserved under this Plan, the purchase
price of each share subject to an outstanding Option and, in order to prevent dilution or
enlargement of rights of Recipients in this Plan, the exercise price of any outstanding Option; and
the number and kind of securities issuable upon exercise of an outstanding Option or payment of an
Award; provided that the number of shares of Stock subject to any Award shall always be a whole
number. Additional shares of Stock that may be credited pursuant to such adjustment shall be
subject to the same restrictions as are applicable to the Stock with respect to which the
adjustment relates.

     3.4 Effect of Award. The grant of an Award pursuant to the Plan shall not limit in
any way the right or power of the Company to make adjustments, reclassifications, reorganizations
or changes of its capital or business structure or to merge, exchange or consolidate or to
dissolve, liquidate or transfer all or any part of its business or assets.

SECTION 4. Eligibility.

     Officers, other employees of the Company and its Subsidiaries, members of the Board, and
Consultants who are responsible for or contribute to the management, growth and/or profitability of
the business of the Company and its Subsidiaries are eligible to be granted Awards under the Plan.
Recipients under the Plan shall be selected from time to time by the Committee, in its sole
discretion or as otherwise provided in Section 2.3, from among those eligible.

SECTION 5. Option Awards.

     5.1 Option Types. Each Option shall be evidenced by a written Agreement, in such form
as the Committee may approve from time to time, which Agreement shall designate each class of stock
to which the Option applies, and shall be subject to the provisions of this Plan and to such other
terms and conditions as the Committee may deem appropriate. The Options granted under the Plan may
be of two types:

     5.2 Non-Qualified Options. A Non-Qualified Option may be granted to an employee, in
connection with hiring, retention or otherwise, prior to the date the employee first performs
services for the Company or the Subsidiary, provided that such Option shall not become vested prior
to the date the employee first performs such services.

     5.3 Terms and Conditions. Options granted under the Plan shall be subject to the
following terms and conditions and shall contain such additional terms and conditions, not
inconsistent with the terms of the Plan, as the Committee shall deem desirable:

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     (a) Limitation under Section 162(m) of the Code. No person shall receive
grants of Options under this Plan that exceed 750,000 shares of all classes of Stock during
any fiscal year of the Company.

     (b) Option Exercise Price. The exercise price per share of Stock purchasable
under an Option shall be determined by the Committee at the time of grant, the exercise
price of a Non Qualified Option shall not be less than 50% of the Fair Market Value of the
Stock of the Company as of the date of grant of such.

     (c) Option Term. The Committee shall fix the term of each Option. In the event
that the Committee does not fix the term of an Option, the term shall be ten years from the
date the Option is granted or as otherwise provided in the preceding sentence, subject to
earlier termination as otherwise provided herein.

     (d) Exercisability. An Option shall be exercisable in accordance with such
terms and conditions and during such periods as determined by the Committee at or after
grant, subject to the restrictions stated in Section 5.3(a) above. In the event the
Committee does not determine the time at which an Option shall be exercisable, such Option
shall be exercisable in equal installments of 25% of the shares of Stock subject to the
Option on and after the first anniversary of the date of grant of the Option and an
additional 25% of the shares of Stock subject to the Option on and after the second, and
third and forth anniversaries of the date of grant of the Option, subject to earlier
termination as otherwise provided herein.

     (e) Method of Exercise. An Option may be exercised in whole or in part at any
time during the Option period by giving written notice of exercise to the Company,
specifying the number of shares of Stock to be purchased. Such notice shall be accompanied
by payment in full of the purchase price, either by certified or bank check, or by any other
form of legal consideration deemed sufficient by the Committee and consistent with the
Plan’s purpose and applicable law, including promissory notes or delivery of irrevocable
instructions to a broker acceptable to the Company to promptly deliver to the Company the
amount of sale or loan proceeds to pay the entire exercise price and any tax withholding
resulting from such exercise. As determined by the Committee at the time of grant or
exercise, in its sole discretion, payment in full or in part may also be made by tendering,
by either actual delivery of Stock or attestation, Stock already owned by the Recipient and
valued at Fair Market Value (which, in the case of Stock acquired upon exercise of an
Option, the Committee may, in its discretion, require have been owned for more than six
months on the date of surrender); provided, however, that, in the case of an Incentive
Option, the right to make a payment in the form of already owned shares of Stock may be
authorized only at the time the Option is granted. No Stock shall be issued until full
payment therefor has been made. A Recipient shall generally have the rights to dividends and
other rights of a shareholder with respect to Stock subject to the Option when the Recipient
has given written notice of exercise, has paid in full for such Stock, and, if requested,
has given the representation described in Section 12.1.

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     (f) Transferability of Options.

     (i) No Incentive Option shall be transferable by the Recipient otherwise than
by will or by the laws of descent and distribution, and all Incentive Options shall
be exercisable, during the Recipient’s lifetime, only by the Recipient.

     (ii) The Committee may, in its discretion, authorize all or a portion of
any Non-Qualified Option to be granted to a Recipient to be on terms which permit
transfer by such Recipient to: (A) the spouse, children or grandchildren of the
Recipient (“Immediate Family Members”); (B) a trust or trusts for the exclusive
benefit of such Immediate Family Members; or (C) a partnership or partnerships in
which such Immediate Family Members are the only partners, provided that: (1) there
may be no consideration for any such transfer, (2) the Option pursuant to which such
Stock is granted must be approved by the Committee, and must expressly provide for
transferability in a manner consistent with this Section 5.3(f)(ii), and (3)
subsequent transfers of a transferred Option shall be prohibited. Following
transfer, any such Option shall continue to be subject to the same terms and
conditions as were applicable immediately prior to transfer, provided that the term
“Recipient” herein shall in such event be deemed to refer to the transferee, except
that the events of termination of employment and the provisions of Sections 5.3(g)
and (h) hereof shall continue to be applied with respect to the original Recipient,
following which the Option shall be exercisable by the transferee only to the
extent, and for the periods specified in such Sections.

     (iii) Non-Qualified Options may be transferred to the spouse or former spouse
of the Recipient to the extent provided in a domestic relations order issued in
accordance with applicable state law.

     (g) Termination by Death or Disability. Unless the Option Agreement
provides otherwise or the Committee determines, if a Recipient’s employment by the Company
or any Subsidiary or Parent Corporation terminates by reason of death or Disability, the
Option may thereafter be exercised, to the extent it was exercisable at the time of death or
Disability (or on such accelerated basis as the Committee shall determine at or after
grant), by the Recipient or the legal representative of the estate or by the legatee of the
Recipient under the will of the Recipient, but may not be exercised after three (3) years
from the date of such Disability or death or the expiration of the stated term of the
Option, whichever period is shorter. In the event of termination of employment by reason of
death or Disability, if an Incentive Option is exercised after the expiration of the
exercise periods that apply for purposes of Section 422 of the Code, the Option will
thereafter be treated as a Non-Qualified Option

     (h) Other Termination. Unless the Option Agreement provides otherwise or the
Committee determines:

     (i) if a Recipient’s employment by the Company or any Subsidiary or Parent
Corporation terminates for any reason other than death, Disability or as provided in
Section 5.3(f)(ii), the Option shall immediately terminate; and

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     (ii) if the Company or any Subsidiary or Parent Corporation terminates the
Recipient without Cause, the Option may thereafter be exercised to the extent it was
exercisable at the time of such termination for three months from the date of such
termination or the expiration of the stated period of the Option, whichever period
is shorter.

SECTION 6. Stock Appreciation Rights.

     6.1 Grant. Stock Appreciation Rights may be granted to a Recipient either alone or in
conjunction with all or part of any Option granted under the Plan. The Award shall designate each
class of Stock to which the right shall apply. In the case of a Non-Qualified Option, such rights
may be granted either at or after the time of the grant of such Option.

     6.2 Exercise. The Recipient may exercise a Stock Appreciation Right by surrendering
the applicable portion of the Award. Upon such exercise and surrender, the Recipient shall be
entitled to receive an amount determined in the manner prescribed in Section 6.3(b). If the Award
of a Stock Appreciation Right is in connection with an Option, that portion of the Option
representing the Stock Appreciation Rights shall be surrendered upon exercise of the right.
Options that have been so surrendered, in whole or in part, shall no longer be exercisable to the
extent the related Stock Appreciation Rights have been exercised.

     6.3 Terms and Conditions. Stock Appreciation Rights shall be subject to such terms
and conditions, not inconsistent with the provisions of the Plan, as shall be determined from time
to time by the Committee, including the following:

     (a) Award Related to Stock Options. Stock Appreciation Rights granted in
connection with an Option shall be exercisable only at such time or times and to the extent
that the Options to which they relate shall be exercisable in accordance with the provisions
of Section 5 and this Section 6 of the Plan. A Stock Appreciation Right or applicable portion
thereof granted in connection with an Option shall terminate and no longer be exercisable upon
the termination or exercise of the related Option, except that a Stock Appreciation Right
granted with respect to less than the full number of shares covered by a related Option shall
not be reduced until the exercise or termination of the related Option exceeds the number of
            shares not covered by the Stock Appreciation Right.

     (b) Payment Upon Exercise. Upon the exercise of a Stock Appreciation Right,
the Recipient shall be entitled to receive up to, but not more than, an amount in cash or
            shares of Stock equal in value to the excess of the Fair Market Value of one share of Stock
on the date of exercise over the Fair Market Value on the date of grant of the Award (or, in
the case of an Award in connection with an Option, the exercise price per share specified in
the related Option), multiplied by the number of shares in respect of which the Stock
Appreciation Right shall have been exercised, with the Committee having the right to
determine the form of payment.

     (c) Transferability. Except as provided in the next sentence, Stock
Appreciation Rights shall not be transferable except pursuant to the laws of descent upon
death. Stock Appreciation Rights granted in connection with an Option shall be

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transferable only when and to the extent that the underlying Option would be transferable
under Section 5.4(f) of the Plan.

SECTION 7. Restricted Stock Awards.

     7.1 Grant. Shares of Restricted Stock may be issued either alone or in addition to
other Awards granted under the Plan. The Committee shall determine when Restricted Stock will be
issued, the class of shares to which the Award applies, the number of shares to be awarded, the
time or times within which an Award may be subject to forfeiture, and all other conditions of the
Award in addition to those contained in Section 7.4. The Committee may also grant Restricted Stock
in which the restrictions lapse upon the attainment of specified performance goals over a specified
performance period. The provisions of Restricted Stock Awards need not be the same with respect to
each Recipient.

     7.2 Award Agreement. The Recipient of an Award of shares of Restricted Stock shall
not have any rights with respect to such Award, unless and until such Recipient has executed an
Agreement evidencing the award and has delivered a fully executed copy thereof to the Company, and
has otherwise complied with the then applicable terms and conditions.

     7.3 Certificate. Each Recipient shall be issued a stock certificate in respect of
shares of Restricted Stock awarded under the Plan. Such certificate shall be registered in the
name of the Recipient, and shall bear an appropriate legend referring to the terms, conditions, and
restrictions applicable to the Award, substantially in the following form:

     “The transferability of this certificate and the shares of Stock represented
hereby are subject to the terms and conditions (including forfeiture) of the
Hypertension Diagnostics, Inc. 20035 Stock Incentive Plan and an Agreement entered
into between the registered owner and the Company. Copies of such Plan and Agreement
are on file in the offices of the Secretary of the Company.”

The Committee shall require that the stock certificates evidencing such shares be held in custody
by the Company until the restrictions thereon shall have lapsed, and that, as a condition of any
Restricted Stock Award, the Recipient shall have delivered a stock power, endorsed in blank,
relating to the Stock covered by such Award.

     7.4 Restrictions and Conditions. The shares of Restricted Stock awarded pursuant to
the Plan shall be subject to the following restrictions and conditions:

     (a) Restriction Period. Subject to the provisions of this Plan and the Award
Agreement, during a period set by the Committee commencing with the date of such award (the
“Restriction Period”), the Recipient shall not be permitted to sell, transfer, pledge or
assign shares of Restricted Stock awarded under the Plan. Within these limits, the
Committee may provide for the lapse of such restrictions in installments where deemed
appropriate.

     (b) Rights as Shareholder. Except as provided in Section 7.4(a) and (c), the
Recipient shall have, with respect to the shares of Restricted Stock, all of the rights of a
shareholder of the Company, including the right to vote the shares and the right to receive

-11-

 

any cash dividends. The Committee, in its sole discretion, may permit or require the
payment of cash dividends to be deferred and, if the Committee so determines, reinvested in
additional shares of Restricted Stock (to the extent shares are available under Section
3.1). Certificates for shares of unrestricted Stock shall be delivered to the Recipient
promptly after, and only after, the period of forfeiture shall have expired without
forfeiture in respect of such shares of Restricted Stock.

     (c) Performance Restrictions. Notwithstanding Section 7.4(b) above, any Award
of Restricted Stock based on the achievement of performance goals shall not be considered
outstanding for any purpose, and no dividends, voting or other rights of a shareholder shall
attach to such shares until such time as the performance goals have been satisfied and the
            shares are issued to the Recipient without restriction.

     (d) Forfeiture; Waiver. Except to the extent provided in the Award Agreement,
upon termination of employment for any reason during the Restriction Period, all shares
still subject to restriction shall be forfeited by the Recipient. The Committee may, in its
sole discretion, when it finds that a waiver would be in the best interest of the Company,
waive in whole or in part any or all remaining restrictions with
respect to the Recipient’s shares of Restricted Stock.

     (e) Transferability. Subject to the provisions of this Plan and the Award
Agreement, Restricted Stock Awards may not be sold, assigned, transferred, pledged or
otherwise encumbered during the Restriction Period.

SECTION 8. Deferred Stock Awards.

     8.1 Grant. Deferred Stock may be awarded either alone or in addition to other Awards
granted under the Plan. The Committee shall determine the class of shares to which the Award
applies, the duration of the period (the “Deferral Period”) during which, and the conditions under
which, receipt of the Stock will be deferred, and the terms and conditions of the Award, in
addition to those contained in Section 8.2. The Committee may also condition the grant of Deferred
Stock upon the attainment of specified performance goals. The provisions of Deferred Stock Awards
need not be the same with respect to each Recipient. Each Award shall be confirmed by, and subject
to the terms of, a Deferred Stock Agreement executed by the Company and the Recipient.

     8.2 Terms and Conditions. The shares of Deferred Stock awarded pursuant to this Plan
shall be subject to the following terms and conditions:

     (a) Transferability. Subject to the provisions of this Plan and the Award
Agreement, Deferred Stock awards may not be sold, assigned, transferred, pledged or
otherwise encumbered during the Deferral Period. At the expiration of the Deferral Period
(or Elective Deferral Period, where applicable), share certificates shall be delivered to
the Recipient, or his legal representative, in a number equal to the shares covered by the
Deferred Stock Award.

     (b) Rights as Shareholder. An Award of Deferred Stock shall not be considered
outstanding for any purpose, and no dividends, voting or other rights of a

-12-

 

shareholder shall attach to such shares until such time as the Deferral Period has ended and
the shares are issued to the Recipient.

     (c) Forfeiture; Waiver. Subject to the provisions of the Award Agreement, upon
termination of employment for any reason during the Deferral Period for a given award, the
Deferred Stock in question shall be forfeited by the Recipient. The Committee may, in its
sole discretion, when it finds that a waiver would be in the best interest of the Company,
waive in whole or in part any or all of the remaining deferral limitations imposed hereunder
with respect to any or all of the Recipient’s Deferred Stock.

     (d) Elective Deferral. A Recipient may elect to further defer receipt of the
Award for a specified period or until a specified event (the “Elective Deferral Period”),
subject in each case to the Committee’s approval and to such terms as are determined by the
Committee, all in its sole discretion. Subject to any exceptions adopted by the Committee,
such election must generally be made prior to completion of one half of the Deferral Period
for a Deferred Stock Award (or for an installment of such an Award).

SECTION 9. Change in Control.

     9.1 No Automatic Acceleration. Unless otherwise provided in an Agreement or by
Committee action with respect to any outstanding Award, no Option shall become exercisable and no
Award shall vest and become due and payable solely as a result of a Change in Control of the
Company. Any such Option shall be exercisable only to the extent it was exercisable immediately
prior to the Change in Control or otherwise becomes exercisable after a Change in Control in
accordance with its terms and conditions. Any Award shall vest and become payable after a Change in
Control in accordance with its terms and conditions.

     9.2 Cash Payment. If a Change in Control of the Company described in Section
1.2(e)(i) occurs, then, so long as a majority of the members of the Board are Continuing Directors,
the Committee, in its sole discretion, and without the consent of the Recipient affected thereby,
may determine that some or all outstanding Awards shall be cancelled as of the effective date of
any such Change in Control and that the Recipient shall receive, with respect to all of the Stock
subject to such cancelled Awards, as of the date of such cancellation, cash in an amount equal to
the Fair Market Value of each Share subject to the Award, except that, with respect to a cancelled
Option or Stock Appreciation Right, the amount shall be equal to the excess of the per share Fair
Market Value of each such Stock immediately prior to such Change in Control of the Company over the
exercise price per share.

     9.3 Limitation on Change in Control Payments. Notwithstanding anything in Section 9.1
or 9.2 or Section 10 to the contrary, if, with respect to a Recipient, the acceleration of the
exercisability of an Option or the payment of cash in exchange for all or part of an Award as
provided in Section 9.1 or 9.2 or Section 10 (which acceleration or payment could be deemed a
“payment” within the meaning of Section 280G(b)(2) of the Code), together with any other payments
which such Recipient has the right to receive from the Company or any corporation which is a member
of an “affiliated group” (as defined in Section 1504(a) of the Code without regard to Section
1504(b) of the Code) of which the Company is a member, would constitute a

-13-

 

“parachute payment” (as defined in Section 280G(b)(2) of the Code), then, unless otherwise provided
in the applicable Award Agreement, such acceleration of exercisability and payments pursuant to
Section 9.1 or 9.2 or Section 10 shall be reduced to the largest amount as, in the sole judgment of
the Committee, will result in no portion of such payments being subject to the excise tax imposed
by Section 4999 of the Code.

SECTION 10. Dissolution, Liquidation, Merger.

     10.1 Effect on Award. Upon an Event, the Committee may, but shall not be obligated
to, either:

     (a) Substitution of Award. If the Event is a merger, consolidation or
statutory share exchange, make appropriate provision for the protection of outstanding
Awards granted under this Plan by the substitution, in lieu of such Awards, of awards,
including options for the purchase, of appropriate voting common stock (the “Survivor’s
Stock”) of the corporation surviving any such merger or consolidation or, if appropriate,
the parent corporation of the Company or such surviving corporation, or, alternatively, by
the delivery of a number of shares of the Survivor’s Stock which has a Fair Market Value as
of the effective date of such merger, consolidation or statutory share exchange equal to
the Award, except that with respect to an Option, the number of shares of the Survivor’s
Stock shall be the product of: (i) the excess of (x) the Event Proceeds per Share covered
by the Option as of such effective date over (y) the exercise price per share of the Stock
subject to such Option, times (ii) the number of shares of Stock covered by such Option and
subject to the same vesting and exercise provisions of the original Award; or

     (b) Cancellation of Options. With respect to any Option, declare, at least
twenty days prior to the Event, and provide written notice to each Recipient of the
declaration, that each outstanding Option, whether or not then exercisable, shall be
cancelled at the time of, or immediately prior to the occurrence of, the Event (unless it
shall have been exercised prior to the occurrence of the Event); or

     (c) Cash Payment. Cause payment to be made, within twenty days after the
Event, in exchange for each cancelled Award to each Recipient of an Award that is
cancelled, of cash equal to the Fair Market Value for each share of Stock covered by the
cancelled Award, except that with respect to any cancelled Option, cash equal to the
amount, (if any), by which the Event Proceeds per Share exceeds the exercise price per
share of Stock covered by such Option; or

     (d) Exercise of Options. Accelerate the vesting and exercise of each Option that
has not previously expired or been cancelled pursuant to Section 9.2 and each Recipient shall
have the right, during the period preceding the time of cancellation of the Option, to
exercise the Option as to all or any part of the Stock covered thereby. Each outstanding
Option granted pursuant to this Plan that shall not have been exercised prior to the Event
shall be cancelled at the time of, or immediately prior to, the Event, as provided

-14-

 

in the declaration, and this Plan shall terminate at the time of such cancellation, subject to
the payment obligations of the Company provided in this Section 10.

Notwithstanding the foregoing, no Recipient of an Award shall be entitled to the payment provided
in this Section 10 if such Award shall have expired or been cancelled pursuant to Section 9.2 of
this Plan.

     10.2 Lapse of Repurchase Right. In the event of the proposed dissolution or
liquidation of the Company, the Committee may provide that any option of the Company to repurchase
the Stock covered by an Award described in Section 12.4 and 12.5 shall lapse as to all such Stock,
provided that the proposed dissolution or liquidation takes place at the time and in the manner
provided.

SECTION 11. Substitute Awards.

     11.1 Purpose. Awards may be granted under this Plan from time to time in substitution
for Awards held by employees of other corporations who are about to become employees of the
Company, or any Parent Corporation or Subsidiary thereof, or whose employer is about to become a
Subsidiary of the Company, as the result of a merger or consolidation of the Company or its
Subsidiary with another corporation, the acquisition by the Company or its Subsidiary of all or
substantially all the assets of another corporation or the acquisition by the Company or its
Subsidiary of at least 50% of the issued and outstanding stock of another corporation.

     11.2 Terms and Conditions. The terms and conditions of the substitute Award so
granted may vary from the terms and conditions set forth in this Plan to such extent as the
Committee at the time of the grant may deem appropriate to conform, in whole or in part, to the
provisions of the stock Awards in substitution for which they are granted.

SECTION 12. General Provisions.

     12.1 Compliance With Laws. No Stock will be issued pursuant to the Plan unless in
compliance with applicable legal requirements, including without limitation, those relating to
securities laws and stock exchange listing requirements. The Committee may require each Recipient
receiving Stock pursuant to an Award under the Plan to represent to and agree with the Company in
writing that such person is acquiring the Stock without a view to distribution thereof.

     12.2 Stop Transfer Order. All certificates for Stock delivered under the Plan shall
be subject to such stop transfer orders and other restrictions as the Committee may deem advisable
under the rules, regulations, and other requirements of the U.S. Securities and Exchange
Commission, any stock exchange upon which the Stock is then listed, and any applicable federal or
state securities laws, and the Committee may cause a legend or legends to be put on any such
certificates to make appropriate reference to such restrictions. The issuance of Stock may be
effected on a non-certificated basis to the extent not prohibited by applicable law or the
applicable rules of any stock exchange upon which the Stock is then listed.

     12.3 No Rights to Employment; No Rights as a Shareholder. The adoption of the Plan
shall not confer upon any employee or Consultant of the Company, any Parent Corporation, or any
Subsidiary any right to continued employment or contract with the Company, any Parent Corporation,
or any Subsidiary, as the case may be, nor shall it interfere in any way with the

-15-

 

right of the Company, any Parent Corporation, or any Subsidiary to terminate the employment of
any of its employees or Consultants at any time.

     12.4 Company Call Right. The Committee may, at the time of the grant of an Award,
provide the Company with the right to repurchase Stock acquired under the Plan, pursuant to which
the Recipient shall be required to offer to the Company upon termination of employment for any
reason any Stock that the Recipient acquired under the Plan, with the price being the then Fair
Market Value of the Stock or, in the case of a termination for Cause, an amount equal to the cash
consideration paid for the Stock whichever is lesser, subject to such other terms and conditions as
the Committee may specify at the time of grant.

     12.5 Recipient Put Right. The Committee may, at the time of grant of an Award under
the Plan, obligate the Company to repurchase Stock acquired pursuant to the Plan at the election of
the Recipient. In such event, the Company may satisfy the purchase price in cash or by a
combination of cash and promissory note for not more than 75% of the total purchase price payable
over a period not to exceed five years, together with reasonable interest in installments no less
often than annually.

     12.6 Forfeiture for Competition. The Committee may, at the time of the grant of an
Award under the Plan, provide the Company with the right to repurchase, or require the forfeiture
of, Stock acquired pursuant to the Plan by any Recipient who, at any time within a period of time
specified by the Committee not to exceed twelve (12) months after the Recipient’s termination of
services with the Company or any Subsidiary or Parent Corporation, directly or indirectly competes
with, or is employed by a competitor of, the Company or any Subsidiary or Parent Corporation or
solicits employees or customers of the Company or any Subsidiary or Parent Corporation.

     12.7 Restrictions on Transfer. As a further condition to the grant of any Award or
the issuance of Stock to the Recipient, the Recipient agrees to the following:

     (a) Underwriter Lockup Agreement. In the event the Company advises the
Recipient that it plans an underwritten public offering of its Stock in compliance with the
Securities Act of 1933, as amended, and the underwriter(s) seek to impose restrictions under
which certain shareholders may not sell or contract to sell or grant any option to buy or
otherwise dispose of part or all of their stock purchase rights of the underlying Stock, the
Recipient will not, for a period not to exceed 180 days from the prospectus, sell or
contract to sell or grant an option to buy or otherwise dispose of any Award granted to
Recipient pursuant to the Plan or any of the underlying Stock without the prior written
consent of the underwriter(s) or its representative(s).

     (b) Blue Sky Requirements. In the event the Company makes any public offering
of its securities and determines in its sole discretion that it is necessary to reduce the
number of issued but unexercised stock purchase rights so as to comply with any state’s
securities or Blue Sky law limitations with respect thereto, the Board shall have the right:
(A) to accelerate the vesting and payment of any Award and the exercisability of any Option
and the date on which such Option must be exercised, provided that the

-16-

 

Company gives the Recipient prior written notice of such acceleration, and (B) to cancel any
Option or portion of any Option thereof which the Recipient does not exercise prior to or
contemporaneously with such public offering.

     (c) Legend. The Company reserves the right to place a legend on any stock
certificate issued pursuant to an Award under the Plan to assure compliance with this
Section 12.7.

     12.8 Effect of Transfer/Leave of Absence. For purposes of any Incentive Option, the
following events shall not be deemed a termination of employment:

     (a) Transfer. A transfer of an employee from the Company to a Parent
Corporation or a Subsidiary, or a transfer of an employee from a Parent Corporation or a
Subsidiary to the Company or any other Parent Corporation or Subsidiary;

     (b) Leave Less Than 90 Days. A leave of absence, approved in writing by the
Committee, for military service or sickness, or for any other purpose approved by the
Company if the period of such leave does not exceed ninety (90) days (or such longer period
as the Committee may approve, in its sole discretion); and

     (c) Leave More Than 90 Days. A leave of absence in excess of ninety (90) days,
approved in writing by the Committee, but only if the employee’s right to reemployment is
guaranteed either by a statute or by contract, and provided that, in the case of any leave
of absence, the employee returns to work within 30 days after the end of such leave.

     12.9 Tax Withholding. Each Recipient shall, no later than the date as of which any
part of the value of an award first becomes includable as compensation in the gross income of the
Recipient for federal income tax purposes, pay to the Company, or make arrangements satisfactory to
the Committee regarding payment of, any federal, state, or local taxes of any kind required by law
to be withheld with respect to the award. The obligations of the Company under the Plan shall be
conditional on such payment or arrangements and the Company, any Parent Corporation, and any
Subsidiary shall, to the extent permitted by law, have the right to deduct any such taxes from any
payment of any kind otherwise due to the Recipient. If the terms of an Award so permit, a
Recipient may elect by written notice to the Company to satisfy part or all of the withholding tax
requirements associated with the award by:

     (a) Retain Stock. Authorizing the Company to retain from the number of shares
of Stock that would otherwise be deliverable to the Recipient, or

     (b) Delivering of Held Stock. Delivering to the Company from Stock already
owned by the Recipient, that number of shares having an aggregate Fair Market Value equal to
part or all of the tax payable by the Recipient under this Section, and in the event shares
of Stock are withheld, the amount withheld shall not exceed the minimum required federal,
state and FICA withholding amount.

-17-

 

     (c) Any such election shall be in accordance with, and subject to, applicable tax and
securities laws, regulations and rulings.

SECTION 13. Amendments and Termination.

     The Board may amend, alter, or discontinue the Plan, but no amendment, alteration, or
discontinuation shall be made: (i) which would impair the rights of a Recipient or Recipient under
an Award theretofore granted and vested, without the Recipient’s or Recipient’s consent; or (ii)
which, without the approval of the shareholders of the Company, would cause the Plan no longer to
comply with Rule 16b-3 under the Securities Exchange Act of 1934, Section 422 of the Code, or the
rules of The Nasdaq Stock Market or any stock exchange upon which the Stock is then traded, or any
other regulatory requirements. Adjustments made by the Committee pursuant to Section 3 (relating
to adjustments of Stock) and Section 10 shall not be subject to the limitations of this Section 13.

SECTION 14. Governing Law.

     To the extent that federal laws do not otherwise control, this Plan and all determinations
made and actions taken under this Plan shall be governed by the laws of the State of Minnesota,
without regard to the conflicts of law provisions thereof, and construed accordingly.

SECTION 15. Effective Date of Plan.

     The Plan shall be effective on the date it is adopted by the Board. Adoption of the Plan is
subject to the condition of approval by the shareholders of the Company within 12 months before or
after the adoption of the Plan by the Board. Any Incentive Option granted after adoption of the
Plan by the Board will be treated as a Non-Qualified Option if shareholder approval is not obtained
within such 12-month period.

-18-exv10w1

 

Exhibit 10.1

SECOND AMENDMENT TO ASSIGNMENT AND AGREEMENT

This SECOND AMENDMENT TO ASSIGNMENT AND AGREEMENT (this “Second Amendment”) is made and entered
into EFFECTIVE as of June 20, 2006 by and between THOMAS H. HEBERT (“Assignor”), an individual
residing in Lutz, Florida and GLOBAL ENERGY GROUP, INC. (“Assignee”), a Delaware corporation.

WITNESSETH:

For and in consideration of the mutual promises and covenants herein contained and the mutual
advantages accruing to Assignor and Assignee, and for other good and valuable consideration the
receipt and sufficiency of which are hereby acknowledged, Assignor and Assignee hereby agree as
follows:

	 	1.	 	Background. Assignor entered into a certain Assignment & Agreement, (the “Original
Agreement”) and a First Amendment. For the purposes of this Second Amendment, each
capitalized term appearing in this Second Amendment shall have the definition applicable
to such term in the Original Agreement, unless the context in which such term is used in
this Second Amendment clearly indicates otherwise. The parties have agreed that certain
terms of the Original Agreement and the First Amendment shall be modified.
	 
	 	2.	 	Royalties. Royalties shall be calculated on the gross sales price of product sold by
GEG to its distributors, dealers, or agents. If GEG subleases any patent, the sub-licensee
will also be liable for payment of royalties to Thomas H. Hebert (or heirs) in the amount
as shown on the original assignment and agreements as well as any applicable amendments
and under the same conditions as described for GEG above.
	 
	 	2A.	 	Payments of Royalties. Payments for royalties on products sold shall be paid
semi-annually with records of sales due to Thomas H. Hebert (or heirs) by July 1st and January 1st of each year and payments of royalties paid no
later than August 1st and February 1st of each year for the applicable record period.
	 
	 	3.	 	Minimum Royalty. The minimum royalty for 2006 shall consist of a cash payment of
$15,000.00, ($7,500.00 due and payable no later than August 1st 2006 and
$7,500.00 due and payable no later than December 31, 2006), and 100,000 stock options to
be granted in accordance with the stock option plan when such plan is approved by the
shareholders. No other minimum royalties shall be due in 2006. Minimum royalties for 2007
and forward shall be due and payable as described in the original assignment and agreement
documents for each assigned patent.

 

 

	 	4.	 	Assignee agrees to assume the cost of Assignor’s term life insurance policy during
the time of Assignor’s employment with Global Energy Group, Inc., not to exceed $650.00
per month.
	 
	 	5.	 	Commercialization Schedule. The commercialization schedule has been modified and
agreed to by Assignor and Assignee and is attached hereto as Schedule A. Assignee agrees
to provide a schedule and budget for the development of spin off products as identified by
Assignee.
	 
	 	6.	 	Patents. Assignee agrees to provide Assignor “timely” notification (allowing
adequate time for assignor to keep the patent or patent application active) of its intent
to abandon any patents in the portfolio that Assignor has the right to pursue once
abandoned. Assignee agrees to the “timely” payment of costs to prosecute and maintain
patents. Assignee may at its own discretion abandon any patent (with “timely” notification
to assignor). Assignee will at its own discretion, when it deems necessary, defend patents
within the portfolio from infringement. Assignee agrees to notify Assignor of its
intentions with respect to the Wireless Technology and HVAC Analysis patent no later than
September 30, 2006.
	 
	 	7.	 	Documentation. Each party, at its own expense and without further consideration,
will execute and deliver such other documents, and take such other action, as may be
necessary or appropriate in order to consummate more effectively the transactions
contemplated hereby, including in particular as necessary or appropriate to effectuate the
transfer of all Assigned Products and all Assignor Patent Rights to Assignee.
	 
	 	8.	 	Effect of Amendment; No Other Modification. This Second Amendment together with the
First Amendment and Original Agreement constitute the entire agreement between Assignor
and Assignee as to the subject matter of the Original Agreement and this Second Amendment,
and there are no other agreements, understandings, restrictions, warranties or
representations between the parties relating to such subject matter. To the extent that
the Original Agreement is inconsistent with the terms of the Second Amendment, it is
superseded and controlled by this Second Amendment. Any provision of the Original
Agreement inconsistent with the Second Amendment is hereby amended to be consistent with
this Second Amendment. Other than as amended by this Second Amendment, the Original
Agreement and First Amendment remain in full force and effect, and, except as modified by
this Second Amendment, the terms and provisions of the Original Agreement and First
Amendment are hereby ratified and affirmed.
	 
	 	9.	 	Counterparts and Facsimile. This Second Amendment may be executed in two
counterparts, each of which shall be considered as original, but both of which together
shall constitute one and the same instrument, and shall become effective when each of the
parties has executed at least one of the counterparts even if both parties have not
executed the same counterpart. The parties

 

 

	 	 	 	expressly acknowledge and agree that the printed product of a facsimile transmittal
shall be deemed to be “written” and a “writing” for all purposes of the Original
Agreement and this Second Amendment.
	 
	 	10.	 	Failure to perform. If GEG shall fail to perform any
of the actions prescribed in this document and does not cure such shortcoming within ten (10) days after written
notice by Assignor, then this entire document will be null and void and only the
documents in effect prior to this document will be in effect.

	 	 	 	 	 	 	 	 	 

	/s/ Craig Kitchen

	 	June 20, 2006
	 	 
	 	/s/ Thomas Hebert
	 	June 20, 2006
	 

	 	 
	 	 	 	 
	 	 
	Craig Kitchen

	 	Date
	 	 
	 	Thomas Hebert
	 	Date
	President & CEO	 	 	 	Chief Technology Officer

 

 

Attachment A to Second Amendment

COMMERCIALIZATION SCHEDULE

	 	 	 	 	 	 	 
	Patent Number	 	Title	 	Schedule
	 
	 	 	 	 	 	 
	5,970,728
	 	Multi-Compressor Heat Pump	 	 	2006	 
	 
	 	 	 	 	 	 
	6,948,916
	 	Multi-Compressor Common	 	 	2008	 
	 
	 	Circuit Structure Design	 	 	 	 
	 
	 	 	 	 	 	 
	6,460,358
	 	Flash gas Superheat Eliminator	 	 	2006	 
	 
	 	For Evaporators and method therefore	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	     The above all apply to MCHP	 	 	 	 
	 
	 	 	 	 	 	 
	6,070,423
	 	EER+	 	 	2006	 
	 
	 	 	 	 	 	 
	6,857,285
	 	EER+ Building Exhaust and	 	 	2008	 
	 
	 	A/C Condensate(included with 6,070,423)	 	 	 	 
	 
	 	 	 	 	 	 
	10/453839
	 	Integrated Thermosyphon	 	Pending

	 
	 	(ready to issue)	 	 	 	 
	 
	 	 	 	 	 	 
	7,032,411
	 	Integrated Dual Circuit	 	 	2009	 
	 
	 	Evaporator (Inventor)	 	 	 	 
	 
	 	 	 	 	 	 
	6,167,715
	 	DGX Direct Expansion Geothermal HE	 	 	2008	 
	 
	 	 	 	 	 	 
	6,116,048
	 	E-Coil	 	 	2006	 
	 
	 	 	 	 	 	 
	6,820,420
	 	Solar Power	 	 	2006	*
	 
	 	 	 	 	 	 
	6,237,359
	 	Ice Plus -- Glacier King	 	 	2006	*
	6,898,947
	 	Ice Plus #2	 	 	 	 
	 
	 	 	 	 	 	 
	6,442,903
	 	Inflatable Insulative Covering	 	 	2006	*
	 
	 	 	 	 	 	 
	6,460,358
	 	Heat Exchanger (Extra Evap)(part of
multi-compressor	 	 	 	 
	 
	 	heat pump	 	 	2006	 

 

			
	 	 	*Indicates Possible Commercialization Outside of Global Energy

 

	 	 	 	 	 	 	 	 	 
	/s/ Craig Kitchen

	 	June 20, 2006
	 	 
	 	/s/ Thomas Hebert
	 	June 20, 2006
	 

	 	 
	 	 	 	 
	 	 
	Craig Kitchen

	 	Date
	 	 
	 	Thomas Hebert
	 	Date
	President & CEO	 	 	 	Chief Technology Officer

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