Document:

ex101to8k06282_07242008.htm

    Exhibit 10.1

     

    
      GLOBALOPTIONS
GROUP, INC.

       

      AMENDED
AND RESTATED

       

      2006
LONG-TERM INCENTIVE PLAN

       

      1.    Establishment,
Purpose and Types of Awards

       

      GlobalOptions
Group, Inc., a Delaware corporation (the “Company”
or “GlobalOptions”),
hereby amends and restates the GlobalOptions Group, Inc. 2006 Long-Term
Incentive Plan (the “Plan”).  The
general purposes of the Plan are to promote the long-term financial interest of
GlobalOptions, including growth in the value of GlobalOptions’ equity and
enhancement of long-term stockholder return, by: (i) attracting and retaining
persons eligible to participate in the Plan; (ii) motivating Plan participants,
by means of appropriate incentives, to achieve long-range goals; (iii) providing
incentive compensation opportunities that are competitive with those of other
similar companies; and (iv) further aligning Plan participants’ interests with
those of other stockholders of GlobalOptions through compensation that is based
on GlobalOptions’ Common Stock, as defined below.

       

      2.    Definitions

       

      Under the
Plan, except where the context otherwise indicates, the following definitions
apply:

       

      (a)           “Affiliate”
means any entity, whether now or hereafter existing, which controls, is
controlled by, or is under common control with, the Company (including, but not
limited to, subsidiaries, joint ventures, limited liability companies, and
partnerships), as determined by the Committee.

       

      (b)           “Award”
means any stock option, stock appreciation right, stock award, performance
award, or other stock-based award relating to the Common Stock or other
securities of the Company granted pursuant to the provisions of the
Plan.

       

      (c)           “Board”
means the Board of Directors of the Company.

       

      (d)           “Change in
Control” shall be deemed to have occurred if: (1) a tender offer (or
series of related offers) shall be made and consummated for the ownership of 50%
or more of the outstanding voting securities of the Company, unless as a result
of such tender offer more than 50% of the outstanding voting securities of the
surviving or resulting corporation shall be owned in the aggregate by the
stockholders of the Company (as of the time immediately prior to the
commencement of such offer), any employee benefit plan of the Company or its
Affiliates; (2) the Company shall be merged or consolidated with another
corporation, unless as a result of such merger or consolidation more than 50% of
the outstanding voting securities of the surviving or resulting corporation
shall be owned in the aggregate by the stockholders of the Company (as of the
time immediately prior to such transaction), any employee benefit plan of the
Company or its Affiliates; (3) the Company shall sell substantially all of its
assets to another corporation that is not wholly owned by the Company, unless as
a result of such sale more than 50% of such assets shall be owned in the
aggregate by the stockholders of the Company (as of the time immediately prior
to such transaction), any employee benefit plan of the Company or its
Affiliates; or (4) a Person (as defined below) shall acquire 50% or more of the
outstanding voting securities of the Company (whether directly, indirectly,
beneficially or of record), unless as a result of such acquisition more than 50%
of the outstanding voting securities of the surviving or resulting corporation
shall be owned in the aggregate by the stockholders of the Company (as of the
time immediately prior to the first acquisition of such securities by such
Person), any employee benefit plan of the Company or its
Affiliates.

       

      
        
           

        

        
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      (e)           For
purposes of this definition of “Change in
Control”,
ownership of voting securities shall take into account and shall include
ownership as determined by applying the provisions of Rule 13d-3(d)(I)(i) (as in
effect on the date hereof) under the Exchange Act.  In addition, for
such purposes, “Person” shall have the meaning given in Section 3(a)(9) of the
Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof; however,
a Person shall not include (A) the Company or any of its Affiliates; (B) a
trustee or other fiduciary holding securities under an employee benefit plan of
the Company or any of its Affiliates; (C) an underwriter temporarily holding
securities pursuant to an offering of such securities; or (D) a corporation
owned, directly or indirectly, by the stockholders of the Company in
substantially the same proportion as their ownership of stock of the
Company.

       

      (f)           “Code”
means the Internal Revenue Code of 1986, as amended, and any regulations
promulgated thereunder.  A reference to any provision of the Code
shall include reference to any successor provision of the Code.

       

      (g)           “Committee”
means the Compensation Committee of the Board, which shall consist of three or
more directors who are “Non-Employee Directors” (as such term is defined in Rule
16b-3) and “Outside Directors” (as such term is defined in Section 162(m) of the
Code) serving at the pleasure of the Board.

       

      (h)           “Common
Stock” means shares of common stock, par value of $0.001 per share, of
the Company.

       

      (i)           “Exchange
Act” means the Securities Exchange Act of 1934, as amended, and any
successor thereto.

       

      (j)           “Fair Market
Value” means, the closing price of publicly traded shares of Common Stock
on the principal securities exchange on which shares of Common Stock are listed
(if the shares of Common Stock are so listed), on the business day immediately
prior to the grant, exercise or the determination of certain withholding tax
obligations, as the case may be, if not so listed or regularly quoted, the mean
between the closing bid and asked prices of publicly traded shares of Common
Stock in the over-the-counter market, on the business day immediately prior to
the grant, exercise or the determination of certain withholding tax obligations,
as the case may be, or, if such bid and asked prices shall not be available, as
reported by any nationally recognized quotation service selected by the Company,
on the business day immediately prior to the grant, exercise or the
determination of certain withholding tax obligations, as the case may be, or as
determined by the Committee in a manner consistent with the provisions of the
Code.

       

      
        
           

        

        
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      (k)           “Grant
Agreement” means a written or electronic document memorializing the terms
and conditions of an Award granted pursuant to the provisions of the
Plan.

       

      3.    Administration

       

      (a)           Administration of the
Plan.  The Plan shall be administered by the
Committee.

       

      (b)           Powers of the
Committee.  The Committee shall have all the powers vested in
it by the terms of the Plan, such powers to include authority, in its sole and
absolute discretion, to grant Awards under the Plan, prescribe Grant Agreements
evidencing such Awards and establish programs for granting Awards.

       

      The
Committee shall have full power and authority to take all other actions
necessary to carry out the purpose and intent of the Plan, including, but not
limited to, the authority to: (1) determine the eligible persons to whom, and
the time or times at which Awards shall be granted; (2) determine the types of
Awards to be granted, including determining which Options under the Plan shall
be incentive options and which shall be non-qualified options; (3) determine the
number of shares of Common Stock to be covered by or used for reference purposes
for each Award; (4) impose such terms, limitations, restrictions and conditions
upon any such Award as the Committee shall deem appropriate; (5) subject to the
limitations of Sections 6(a)(2) and 6(b)(2), modify, amend, extend or renew
outstanding Awards, or accept the surrender of outstanding Awards and substitute
new Awards (provided however, that, except as otherwise specifically provided
under the Plan, any modification that would materially adversely affect any
outstanding Award shall not be made without the consent of the holder); (6)
accelerate or otherwise change the time in which an Award may be exercised or
becomes payable and to waive or accelerate the lapse, in whole or in part, of
any restriction or condition with respect to such Award, including, but not
limited to, any restriction or condition with respect to the vesting or
exercisability of an Award following termination of any grantee’s employment or
other relationship with the Company; provided, however, that no such waiver or
acceleration of lapse restrictions shall (i) be allowed with regard to a
“deferral of compensation” within the meaning of Code Section 409A, except as
otherwise permitted under such Code section, or (ii) be made with respect to a
performance-based stock Award granted to an executive officer of the Company if
such waiver or acceleration is inconsistent with Code Section 162(m); (7) permit
the withholding by the Company of shares of Common Stock from shares of Common
Stock otherwise to be received by a participant in connection with the exercise
of options and/or the withholding of taxes by such participant; and (8)
establish objectives and conditions, if any, for earning Awards, including
without limitation, the office or position held by the participant or the
participant’s relationship to the Company, the participant’s degree of
responsibility for and contribution to the growth and success of the Company or
any Affiliate, the participant’s length of service, promotions and potential and
determining whether Awards will be paid after the end of a performance
period.

       

      The
Committee shall have full power and authority, in its sole and absolute
discretion, to administer and interpret the Plan, Grant Agreements and all other
documents relevant to the Plan and Awards issued hereunder, and to adopt and
interpret such rules, regulations, agreements, guidelines and instruments for
the administration of the Plan and for the conduct of its business as the
Committee deems necessary or advisable.  Without limiting the
foregoing, the Committee may delegate administrative and ministerial duties to
officers or employees of the Company as the Committee deems necessary or
advisable in its sole and absolute discretion.  The Committee may
appoint accountants, actuaries, counsel, advisors and other persons that it
deems necessary or desirable in connection with the administration of the
Plan.

       

      
        
           

        

        
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      In the
event that for any reason the Committee is unable to act or if the Committee at
the time of any grant, award or other acquisition under the Plan does not
consist of two or more non-employee directors, or if there shall be no such
Committee, then the Plan shall be administered by the Board, and references
herein to the Committee (except in the proviso to this sentence) shall be deemed
to be references to the Board, and any such grant, award or other acquisition
may be approved or ratified in any other manner contemplated by subparagraph (d)
of Rule 16b-3; provided, however, that options granted to the Company's Chief
Executive Officer or to any of the Company's other four most highly compensated
officers that are intended to qualify as performance-based compensation under
Section 162(m) of the Code may only be granted by the Committee.

       

      (c)           Non-Uniform
Determinations.  The Committee’s determinations under the Plan
(including, without limitation, determinations of the persons to receive Awards,
the form, amount and timing of such Awards, the terms and provisions of such
Awards and the Grant Agreements evidencing such Awards) need not be uniform and
may be made by the Committee selectively among persons who receive, or are
eligible to receive, Awards under the Plan, whether or not such persons are
similarly situated.

       

      (d)           Limited
Liability.  To the maximum extent permitted by law, no member
of the Committee shall be liable for any action taken or decision made in good
faith relating to the Plan or any Award hereunder.

       

      (e)           Indemnification.  To
the maximum extent permitted by law and by the Company’s charter and by-laws,
the members of the Committee shall be indemnified by the Company in respect of
all their activities under the Plan.

       

      (f)           Effect of Committee’s
Decision.  All actions taken and decisions and determinations
made by the Committee on all matters relating to the Plan and Awards issued
hereunder pursuant to the powers vested in it hereunder shall be in the
Committee’s sole and absolute discretion and shall be conclusive and binding on
all parties concerned, including the Company, its stockholders, any participants
in the Plan and any other employee, consultant, or director of the Company, and
their respective successors in interest.

       

      4.    Shares Available for
the Plan; Maximum Awards

       

      Subject
to adjustments as provided in Section 7(c) of the Plan, the shares of Common
Stock that may be issued with respect to Awards granted under the Plan shall not
exceed an aggregate of 3,000,000 shares of Common Stock.  Stock
appreciation rights to be settled in shares of Common Stock shall be counted in
full against the number of shares available for Award under the Plan, regardless
of the number of shares issued upon settlement of the stock appreciation
right.  The Company shall reserve such number of shares for Awards
under the Plan, subject to adjustments as provided in Section 7(c) of the
Plan.  The shares of Common Stock issued pursuant to the Plan may come
from authorized and unissued shares, treasury shares or shares purchased by the
Company in the open market.  If any Award, or portion of an Award,
under the Plan expires or terminates unexercised, becomes unexercisable, is
settled in cash without delivery of shares of Common Stock, or is forfeited or
otherwise terminated as to any shares, or if any shares of Common Stock are
repurchased by the Company in connection with any Award, the shares subject to
such Award and the repurchased shares shall thereafter be available for further
Awards under the Plan except where such reissuance is inconsistent with the
provisions of 162(m) of the Code.

       

      
        
           

        

        
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      Subject
to adjustments as provided in Section 7(c) of the Plan, the maximum number of
shares of Common Stock subject to Awards of any combination that may be granted
during any calendar year to any one individual under this Plan shall be limited
to 625,000 shares (subject to adjustment pursuant to Section 7(c) hereof) and
the method of counting such shares shall conform to performance based
compensation under Section 162(m) of the Code.

       

      5.    Participation

       

      Participation
in the Plan shall be open to all employees, officers and directors of, and
consultants and advisors to, the Company or any Affiliate of the Company, as may
be selected by the Committee from time to time, subject to any restrictions
imposed by applicable law.  The Committee may also grant Awards to
individuals in connection with hiring, retention or otherwise, prior to the date
the individual first performs services for the Company or an Affiliate, provided
that such Awards shall not become vested or exercisable prior to the date the
individual first commences performance of such services.

       

      6.    Awards

       

      The
Committee, in its sole discretion, establishes the terms of all Awards granted
under the Plan.  Awards may be granted individually or in tandem with
other types of Awards.  All Awards are subject to the terms and
conditions provided in the Grant Agreement.  Subject to any applicable
requirements of Code Section 409A, the Committee may permit or require a
recipient of an Award to defer such individual’s receipt of the payment of cash
or the delivery of Common Stock that would otherwise be due to such individual
by virtue of the exercise of, payment of, or lapse or waiver of restrictions
respecting, any Award.  If any such payment deferral is required or
permitted, the Committee shall, in its sole discretion, establish rules and
procedures for such payment deferrals.  The maximum term for any Award
shall not exceed ten years from the date of the grant of such Award, provided,
however, in the case of an incentive stock option granted to an eligible
participant who, at the time such incentive stock option is granted, owns
(within the meaning of Section 424(d) of the Code) more than 10% of the total
combined voting power of all classes of stock of the Company or of any
Affiliate, no such incentive stock option shall be exercisable more than five
years after the date such incentive stock option is granted.

       

      
        
           

        

        
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      (a)           Stock
Options.

       

      
        	
                 
      

              	
                (1)

              	
                In
      General.  The Committee may from time to time grant to
      eligible participants Awards of incentive stock options or nonstatutory
      stock options; provided, however, that Awards of incentive stock options
      shall be limited to employees of the Company or of any current or
      hereafter existing “parent corporation” or “subsidiary corporation,” as
      defined in Sections 424(e) and (f) of the Code, respectively, of the
      Company and any other individuals who are eligible to receive incentive
      stock options under the provisions of Section 422 of the
      Code.  All stock options must have an exercise price at least
      equal to Fair Market Value as of the date of grant, provided, however,
      that with respect to an eligible participant who, at the time an incentive
      stock option is granted, owns (within the meaning of Section 424(d) of the
      Code) more than 10% of the total combined voting power of all classes of
      stock of the Company or of any subsidiary, the exercise price shall be at
      least 110% of the Fair Market Value per share of Common Stock on the date
      of grant.  The exercise price of each Option shall be subject to
      adjustment as provided in Section 7(c) below.  An Option to the
      extent then exercisable may be exercised in whole or in part at any time
      during the option period, by giving written notice to the Company
      specifying the number of shares of Common Stock to be purchased,
      accompanied by payment in full of the exercise price, in cash, by check or
      such other instrument as may be acceptable to the Committee.  As
      determined by the Committee, in its sole discretion, at or after grant,
      payment in full or in part may be made at the election of the participant
      (i) in the form of Common Stock owned by the participant (based on the
      Fair Market Value of the Common Stock on the Option exercise date) that is
      not the subject of any pledge or security interest, (ii) in the form of
      Common Stock withheld by the Company from the shares of Common Stock
      otherwise to be received, with such withheld shares of Common Stock having
      a Fair Market Value on the Option exercise date equal to the exercise
      price of the Option, or (iii) by a combination of the foregoing, provided
      that the combined value of all cash and cash equivalents and the Fair
      Market Value of any shares surrendered to the Company is at least equal to
      such exercise price and except with respect to (ii) above, such method of
      payment will not cause a  disqualifying disposition of all or a
      portion of the Common Stock received upon exercise of an incentive
      option.  A participant shall have the right to dividends and
      other rights of a stockholder with respect to shares of Common Stock
      purchased upon exercise of an Option after (i) the participant has given
      written notice of exercise and has paid in full for such shares, (ii)
      becomes a stockholder of record with respect thereto, and (iii) the
      participant has satisfied such conditions that may be imposed by the
      Company with respect to the withholding of
  taxes.

              

      

       

      
        	
                 
      

              	
                (2)

              	
                Incentive Stock
      Option.  No stock option shall be an incentive stock
      option unless so designated by the Committee at the time of grant or in
      the Grant Agreement evidencing such stock option, and which otherwise
      meets the requirements of Section 422 of the Code.  The
      aggregate Fair Market Value, determined as of the date the incentive
      option is granted, of Common Stock for which incentive options are
      exercisable for the first time by any eligible participant during any
      calendar year under the Plan (and/or any other stock option plans of the
      Company or any Affiliate) shall not exceed $100,000.  A grant of
      an incentive option under this Plan shall provide that if the participant
      makes a disposition, within the meaning of Section 424(c) of the Code, of
      any share or shares of Common Stock issued to him upon exercise of an
      incentive option granted within the two-year period commencing on the day
      after the date of the grant of such incentive option or within a one-year
      period commencing on the day after the date of transfer of the share or
      shares to him pursuant to the exercise of such incentive option, he shall,
      within 10 days after such disposition, notify the Company
      thereof.

              

      

       

       

      
        
           

        

        
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                (3)

              	
                Prohibition on Option
      Repricing & Cancellation.  Notwithstanding any other
      provision of the Plan, neither the Board nor the Committee may reprice,
      replace or regrant any Option granted under the Plan, (i) through
      cancellation and replacement or regrant with lower priced options, (ii)
      through exchange, replacement, or buyouts of awarded options with cash, or
      (iii) by lowering the option exercise price of a previously granted
      Option, without the prior approval of GlobalOptions’
      stockholders.

              

      

       

      (b)           Stock
Appreciation Rights.

       

      
        	
                 
      

              	
                (1)

              	
                In
      general.  The Committee may from time to time grant to
      eligible participants Awards of Stock Appreciation Rights (“SAR”).  An
      SAR entitles the grantee to receive, subject to the provisions of the Plan
      and the Grant Agreement, a payment having an aggregate value equal to the
      product of (1) the excess of (A) the Fair Market Value on the exercise
      date of one share of Common Stock over (B) the base price per share
      specified in the Grant Agreement, times (2) the number of shares specified
      by the SAR, or portion thereof, which is exercised.  The base
      price per share specified in the Grant Agreement shall not be less than
      the Fair Market Value of the Common Stock on the grant
      date.  Payment by the Company of the amount receivable upon any
      exercise of an SAR may be made by the delivery of Common Stock or cash, or
      any combination of Common Stock and cash, as determined in the sole
      discretion of the Committee.  If upon settlement of the exercise
      of an SAR a grantee is to receive a portion of such payment in shares of
      Common Stock, the number of shares shall be determined by dividing such
      portion by the Fair Market Value of a share of Common Stock on the
      exercise date.  No fractional shares shall be used for such
      payment and the Committee shall determine whether cash shall be given in
      lieu of such fractional shares or whether such fractional shares shall be
      eliminated.

              

      

       

      
        	
                 
      

              	
                (2)

              	
                Prohibition on SAR Repricing
      & Cancellation.  Notwithstanding any other provision
      of the Plan, neither the Board nor the Committee may reprice, replace or
      regrant any SAR granted under the Plan, (i) through cancellation and
      replacement or regrant with lower priced SARs, (ii) through exchange,
      replacement, or buyouts of awarded SARs with cash, or (iii) by lowering
      the SAR base price of a previously granted SAR, without the prior approval
      of GlobalOptions’ stockholders.

              

      

       

      (c)           Stock
Awards.

       

      
        	
                 
      

              	
                (1)

              	
                In
      General.  The Committee may from time to time grant
      restricted or unrestricted stock awards to eligible participants in such
      amounts, on such terms and conditions, and for such consideration,
      including no consideration or such minimum consideration as may be
      required by law, as it shall
determine.

              

      

       

       

      
        
           

        

        
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                (2)

              	
                Restricted Stock
      Terms.  An eligible participant shall have no rights to
      an award of restricted stock unless and until the eligible participant
      accepts the award within the period prescribed by the Committee and, if
      the Committee shall deem desirable, makes payment to the Company in cash,
      or by check or such other instrument as may be acceptable to the
      Committee.  After acceptance and issuance of a certificate or
      certificates, as provided for below, the eligible participant shall have
      the rights of a stockholder with respect to restricted stock subject to
      the non-transferability and forfeiture restrictions described
      below.  The Company shall issue in the eligible participant’s
      name a certificate or certificates for the shares of Common Stock
      associated with the award promptly after the eligible participant accepts
      such award.  Unless otherwise provided, any certificate or
      certificates issued evidencing shares of restricted stock shall not be
      delivered to the eligible participant until such shares are free of any
      restrictions specified by the Committee at the time of
      grant.  Shares of restricted stock are forfeitable until the
      terms of the restricted stock grant have been satisfied.  Shares
      of restricted stock are not transferable until the date on which the
      Committee has specified such restrictions has lapsed.  Unless
      otherwise provided, distributions in the form of dividends or otherwise of
      additional shares or property in respect of shares of restricted stock
      shall be subject to the same restrictions as such shares of restricted
      stock.

              

      

       

      (d)           Performance
Awards.  The Committee may, in its discretion, grant
performance awards which become vested or payable on account of attainment of
one or more performance goals during a specified period as established by the
Committee.  Performance awards may be in the form of Common Stock or
cash, or any combination of Common Stock and cash, as determined in the sole
discretion of the Committee.  The Committee shall establish in
writing, on a timely basis, (i) the performance goals that must be met, (ii) the
threshold, target and maximum amounts that may be paid, or in the case of an
award of Common Stock, the number of shares that will vest, if the performance
goals are met, and (iii) any other conditions that the Committee deems
appropriate and, in the case of executive officers where the Award is intended
to be “performance based” within the meaning of Code Section 162(m), consistent
with Section 162(m) of the Code. Performance goals established by the Committee
shall be based on objectively determinable performance goals selected by the
Committee that apply to an individual or group of individuals, a business unit,
or the Company or an Affiliate as a whole, over such performance period as the
Committee may designate.  The target Awards for each individual will
be based on a number of factors, including: (i) market competitiveness of the
position, (ii) job level, (iii) base salary level, (iv) past individual
performance, and (v) expected contribution to GlobalOptions’ future performance
and business impact.  For those Awards intended to be
“performance-based” within the meaning of Code Section 162(m), the Committee
shall also establish for each participant who is an executive officer a maximum
Award that may be paid for the calendar year, which will remain fixed for the
entire year.  The maximum performance award that any participant may
be granted in any calendar year under the Plan is $4,000,000, comprised of the
cash portion of the Award and the Fair Market Value of the Common Stock as of
the date of the grant of the Award.  For Awards intended to be
“performance-based compensation,” the grant of the performance awards and the
establishment of the performance measures shall be made during the period
required under Code Section 162(m).

       

      
        
           

        

        
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      The
performance goals shall be based on one or more of the following criteria:
EBITDA, stock price, earnings per share, net earnings, operating or other
earnings, profits, revenues, net cash flow, financial return ratios, return on
assets, stockholder return, return on equity, growth in assets, market share or
strategic business criteria consisting of one or more objectives based on
meeting specified revenue goals, market penetration goals, geographic business
expansion goals or goals relating to acquisitions or strategic
partnerships.  “EBITDA” means earnings before interest, taxes,
depreciation and amortization.  At any time prior to the final
determination of the performance awards, the Committee may adjust the
performance goals and awards for participants who are not executive officers, to
reflect changes in corporate capitalization, changes in corporate transactions,
the occurrence of any extraordinary event, any change in accounting rules or
principles, any change in GlobalOptions’ method of accounting, any change in
applicable law, or any other change of similar nature.  With respect
to executive officers where the award is intended to be “performance based”
within the meaning of Code Section 162(m), such adjustments may be made to the
extent the Committee deems appropriate considering the requirements of Code
Section 162(m).  Upon completion of a performance period, the
Committee shall determine whether the performance goals have been met prior to
paying or vesting any award for any year, the Committee must certify in writing
(to the extent required by any IRS regulation) that the performance goals were
satisfied.  Approved minutes of the Committee will be treated as the
required written certification.  All cash amounts payable will be paid
as soon as practicable after certification by the Committee, but not later than
March 15th of the year following the calendar year within which the award is
earned unless payment by such date is administratively
impracticable.

       

      (e)           Other Stock-Based
Awards.  The Committee may from time to time grant other
stock-based awards to eligible participants in such amounts, on such terms and
conditions, and for such consideration, including no consideration or such
minimum consideration as may be required by law, as it shall
determine.  Other stock-based awards may be denominated in cash, in
Common Stock or other securities, in stock-equivalent units, in stock
appreciation units, in securities or debentures convertible into Common Stock,
or in any combination of the foregoing and may be paid in Common Stock or other
securities, in cash, or in a combination of Common Stock or other securities and
cash, all as determined in the sole discretion of the Committee.

       

      7.    Miscellaneous

       

      (a)           Withholding of
Taxes.  Grantees and holders of Awards shall pay to the Company
or any of its Affiliates, or make provision satisfactory to the Committee for
payment of, any taxes to be withheld in respect of Awards under the Plan no
later than the date of the event creating the tax liability.  The
Company or any of its Affiliates may, to the extent permitted by law, deduct any
such tax obligations from any payment of any kind otherwise due to the grantee
or holder of an Award.  In the event that payment to the Company or
any of its Affiliates of such tax obligations is made in shares of Common Stock,
such shares shall be valued at Fair Market Value on the applicable date for such
purposes.

       

      
        
           

        

        
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      (b)           Transferability.  Unless
otherwise permitted by the Committee or as otherwise may be required by law, no
Award granted under the Plan shall be transferable by a grantee otherwise than
by will or the laws of descent and distribution.  Unless otherwise
determined by the Committee in accord with the provisions of the immediately
preceding sentence, an Award may be exercised during the lifetime of the
grantee, only by the grantee or, during the period the grantee is under a legal
disability, by the grantee’s guardian or legal representative.  Any
attempt to transfer, assign, pledge or otherwise dispose of, or to subject to
execution, attachment or similar process, any Award contrary to the provisions
hereof shall be void and ineffective and shall give no right to the purported
transferee.

       

      (c)           Adjustments
for Corporate Transactions and Other Events.

       

      
        	
                 
      

              	
                (1)

              	
                Stock Dividend, Stock Split
      and Reverse Stock Split.  In the event of a stock
      dividend of, or stock split or reverse stock split affecting, the Common
      Stock, (A) the maximum number of shares of such Common Stock as to which
      Awards may be granted under this Plan, in the aggregate and with respect
      to any type of Award, and the maximum number of shares with respect to
      which Awards may be granted during any one calendar year to any
      individual, as provided in Section 4 of the Plan and (B) the number of
      shares covered by and the exercise price and other terms of outstanding
      Awards, shall, without further action of the Board, be adjusted to reflect
      such event unless the Board, in its sole discretion, determines, at the
      time it approves such stock dividend, stock split or reverse stock split,
      that no such adjustment shall be made with respect to any or all
      particular Awards.  The Committee may make adjustments, in its
      discretion, to address the treatment of fractional shares and fractional
      cents that arise with respect to outstanding Awards as a result of the
      stock dividend, stock split or reverse stock
      split.  Additionally, the Committee will, to the extent
      feasible, make other appropriate adjustments in order to ensure that
      Awards will not be deemed modified within the meaning of Section 424(h) of
      the Code.  The adjustments described above will be made in a
      manner consistent with Section 162(m) and Section 409A of the
      Code.

              

      

       

      
        	
                 
      

              	
                (2)

              	
                Non-Change in Control
      Transactions.  Except with respect to the transactions
      set forth in Section 7(c)(1), and subject to the limitations of Sections
      6(a)(2) and 6(b)(2), in the event of any change affecting the Common
      Stock, the Company or its capitalization, by reason of a spin-off,
      split-up, dividend, recapitalization, merger, consolidation or share
      exchange, other than any such change that is part of a transaction
      resulting in a Change in Control of the Company, the Committee, in its
      discretion and without the consent of the holders of the Awards, may make
      (A) appropriate adjustments to the maximum number and kind of shares
      reserved for issuance or with respect to which Awards may be granted under
      the Plan, in the aggregate, with respect to any type of Award, and with
      respect to any individual during any one calendar year, as provided in
      Section 4 of the Plan; and (B) any adjustments in outstanding Awards,
      including but not limited to modifying the number, kind and price of
      securities subject to Awards.  Each participant’s proportionate
      interest will be maintained as it was immediately before the occurrence of
      the abovementioned event.  Additionally, the Committee will, to
      the extent feasible, make other appropriate adjustments in order to ensure
      that Awards will not be deemed modified within the meaning of Section
      424(h) of the Code.  The adjustments described above will be
      made in a manner consistent with Section 162(m) and Section 409A of the
      Code.

              

      

       

       

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                (3)

              	
                Change in Control
      Transactions.  Upon the occurrence of a Change in
      Control, the Committee may accelerate the vesting and exercisability of
      outstanding Awards, in whole or in part, as determined by the Committee in
      its sole discretion.  In its sole discretion, the Committee may
      also determine that, upon the occurrence of a Change in Control, each
      outstanding Award shall terminate within a specified number of days after
      notice to the participant thereunder, and in the case of an Option and
      other Awards that are payable in or convertible into Common Stock, each
      such participant shall receive, with respect to each share of Common Stock
      subject to such Option or other Awards that are payable in or convertible
      into Common Stock, an amount equal to the excess of the Fair Market Value
      of such shares immediately prior to such Change in Control over the
      exercise price per share of such Option or other Awards that are payable
      in or convertible into Common Stock; such amount shall be payable in cash,
      in one or more kinds of property (including the property, if any, payable
      in the transaction) or a combination thereof, as the Committee shall
      determine in its sole discretion.

              

      

       

      
        	
                 
      

              	
                (4)

              	
                Unusual or Nonrecurring
      Events.  The Committee is authorized to make, in its
      discretion and without the consent of holders of Awards, and subject to
      the limitations of Sections 6(a)(2) and 6(b)(2), adjustments in the terms
      and conditions of, and the criteria included in, Awards in recognition of
      unusual or nonrecurring events affecting the Company, or the financial
      statements of the Company or any Affiliate, or of changes in applicable
      laws, regulations, or accounting principles, whenever the Committee
      determines that such adjustments are appropriate in order to prevent
      dilution or enlargement of the benefits or potential benefits intended to
      be made available under the Plan.

              

      

       

      (d)           Substitution of Awards in Mergers
and Acquisitions.  Awards may be granted under the Plan from
time to time in substitution for awards held by employees, officers, consultants
or directors of entities who become or are about to become employees, officers,
consultants or directors of the Company or any of its Affiliates as the result
of a merger or consolidation of the employing entity with the Company or any of
its Affiliates, or the acquisition by the Company or any of its Affiliates of
the assets or stock of the employing entity.  The terms and conditions
of any substitute Awards so granted may vary from the terms and conditions set
forth herein to the extent that the Committee deems appropriate at the time of
grant to conform the substitute Awards to the provisions of the awards for which
they are substituted.

       

      (e)           Termination, Amendment and
Modification of the Plan.  The Board may amend, suspend, or
terminate the Plan, except that no amendment shall be made that would impair the
rights of any participant under any Award theretofore granted without the
participant’s consent, and except that no amendment shall be made which, without
the approval of the stockholders of the Company, would:

       

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                (1)

              	
                materially
      increase the number of shares that may be issued under the Plan, except as
      is provided in Section 7(c);

              

      

       

      
        	
                 
      

              	
                (2)

              	
                materially
      increase the benefits accruing to the participants under the
      Plan;

              

      

       

      
        	
                 
      

              	
                (3)

              	
                materially
      modify the requirements as to eligibility for participation in the
      Plan;

              

      

       

      
        	
                 
      

              	
                (4)

              	
                decrease
      the exercise price of an option to less than 100% of the Fair Market Value
      per share of Common Stock on the date of grant thereof;
  or

              

      

       

      
        	
                 
      

              	
                (5)

              	
                extend
      the term of any option beyond that provided for in Section
    6.

              

      

       

      The
Committee may amend the terms of any Award theretofore granted, prospectively or
retroactively, but no such amendment shall impair the rights of any participant
without the participant’s consent.

       

      (f)           It
is the intention of the Board that the Plan comply strictly with the provisions
of Code Section 409A to the extent feasible and the Committee shall exercise its
discretion in granting Awards hereunder (and the terms of such Award grants),
accordingly.  The Plan and any grant of an Award hereunder may be
amended from time to time without the consent of the participant as may be
necessary or appropriate to comply with the Code Section 409A.

       

      (g)           Non-Guarantee of Employment or
Service.  Nothing in the Plan or in any Grant Agreement
thereunder shall confer any right on an individual to continue in the service of
the Company or shall interfere in any way with the right of the Company to
terminate such service at any time with or without cause or notice and whether
or not such termination results in (1) the failure of any Award to vest; (2) the
forfeiture of any unvested or vested portion of any Award; and/or (3) any other
adverse effect on the individual’s interests under the Plan.

       

      (h)           Special
Rules for Options and Stock Appreciation Rights.

       

      
        	
                 
      

              	
                (1)

              	
                Termination by
      Death.  Unless otherwise determined by the Committee, if
      any participant’s employment with or service to the Company or any
      Affiliate terminates by reason of death, any Option or SAR held by such
      participant may thereafter be exercised, to the extent then exercisable
      (or on such accelerated basis as the Committee shall determine at or after
      grant), by the legal representative of the estate or by the legatee of the
      participant under the will of the participant, for a period of one year
      after the date of such death or until the expiration of the stated term of
      such Option or SAR as provided under the Plan, whichever period is
      shorter.

              

      

       

      
        	
                 
      

              	
                (2)

              	
                Termination by Reason of
      Disability.  Unless otherwise determined by the
      Committee, if any participant’s employment with or service to the Company
      or any Affiliate terminates by reason of total and permanent disability
      (the failure to perform such person’s duties to the Company for at least
      ninety (90) days, whether or not consecutive, within any twelve (12)
      consecutive months as a result of any incapacity due to physical or mental
      illness, a “Disability”), any Option or SAR held by such participant may
      thereafter be exercised, to the extent it was exercisable at the time of
      termination due to Disability (or on such accelerated basis as the
      Committee shall determine at or after grant), but may not be exercised
      after 90 days after the date of such termination of employment or service
      or the expiration of the stated term of such Option or SAR, whichever
      period is shorter; provided, however, that,
      if the participant dies within such 90-day period, any unexercised Option
      or SAR held by such participant shall thereafter be exercisable to the
      extent to which it was exercisable at the time of death for a period of
      one year after the date of such death or for the stated term of such
      Option or SAR, whichever period is
shorter.

              

      

       

       

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                (3)

              	
                Termination by Reason of
      Retirement.  Unless otherwise determined by the
      Committee, if any participant’s employment with or service to the Company
      or any Affiliate terminates by reason of Normal or Early Retirement (as
      such terms are defined below), any Option or SAR held by such participant
      may thereafter be exercised to the extent it was exercisable at the time
      of such Normal or Early Retirement (or on such accelerated basis as the
      Committee shall determine at or after grant), for a period of 90 days
      after the date of such termination of employment or service or until the
      expiration of the stated term of such Award, whichever period is shorter;
      provided, however, that, if the participant dies within such 90-day
      period, any unexercised Option or SAR held by such participant shall
      thereafter be exercisable, to the extent to which it was exercisable at
      the time of death, for a period of one year after the date of such death
      or for the stated term of such Option or SAR, whichever period is
      shorter.

              

      

       

      For
purposes of this paragraph (i), “Normal Retirement” shall mean retirement from
active employment with the Company or any Affiliate on or after the normal
retirement date specified in the applicable Company or Affiliate pension plan or
if no such pension plan exists or applies, age 65, and “Early Retirement” shall
mean retirement from active employment with the Company or any Affiliate under
the early retirement provisions of the applicable Company or Affiliate pension
plan or if no such pension plan exists or applies, age 55.

       

      (i)           Other
Termination.  Unless otherwise determined by the Committee,
should any Participant’s employment with or service to the Company or any
Affiliate terminate for any reason other than death, Disability or Normal or
Early Retirement, the Award shall thereupon terminate, except that the portion
of any Award that was exercisable on the date of such termination of employment
or service may be exercised for the lesser of 90 days after the date of
termination or the balance of such Award’s term if the Participant’s employment
or service with the Company or any Affiliate is terminated by the Company or
such Affiliate without cause (the determination as to whether termination was
for cause to be made by the Committee).  The transfer of a Participant
from the employ of or service to the Company to the employ of or service to an
Affiliate, or vice versa, or from one Affiliate to another, shall not be deemed
to constitute a termination of employment or service for purposes of the
Plan.

       

      (j)           No Trust or Fund
Created.  Neither the Plan nor any Award shall create or be
construed to create a trust or separate fund of any kind or a fiduciary
relationship between the Company and a grantee or any other
person.  To the extent that any grantee or other person acquires a
right to receive payments from the Company pursuant to an Award, such right
shall be no greater than the right of any unsecured general creditor of the
Company.

       

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

       

      (k)           Public
Offering.  As a condition of participation in this Plan, each
participant shall be obligated to cooperate with the Company and the
underwriters in connection with any public offering of the Company’s securities
and any transaction s relating to a public offering, and shall execute and
deliver any agreements and documents, including without limitation, a lock-up
agreement, that may be requested by the Company or the
underwriters.  The participant’s obligations under this Section 7(j)
shall apply to any Common Stock issued under the Plan as well as to any and all
other securities of the Company or its successor for which Common Stock may be
exchanged or into which Common Stock may be converted.

       

      (l)           Governing Law.  The
validity, construction and effect of the Plan, of Grant Agreements entered into
pursuant to the Plan, and of any rules, regulations, determinations or decisions
made by the Committee relating to the Plan or such Grant Agreements, and the
rights of any and all persons having or claiming to have any interest herein or
hereunder, shall be determined exclusively in accordance with applicable federal
laws and the laws of the State of New York, without regard to its conflict of
laws principles.

       

      (m)           Effective Date; Termination
Date.  The Plan was adopted by the Board on October 17, 2006,
subject to approval by the GlobalOptions stockholders within twelve (12)
months.  The Plan became effective as of the date of approval of
GlobalOptions’ stockholders on December 5, 2006 (the “Effective
Date”).  No Award shall be granted under the Plan after the
tenth anniversary of the Effective Date.  Subject to other applicable
provisions of the Plan, all Awards made under the Plan prior to such termination
of the Plan shall remain in effect until such Awards have been satisfied or
terminated in accordance with the Plan and the terms of such
Awards.

       

      (n)           Compliance with Securities Laws;
Listing and Registration.  If at any time the Committee
determines that the delivery of Common Stock under the Plan is or may be
unlawful under the laws of any applicable jurisdiction, or federal, state or
foreign securities laws, the right to exercise an Award or receive shares of
Common Stock pursuant to an Award shall be suspended until the Committee
determines that such delivery is lawful.  The Company shall have no
obligation to effect any registration or qualification of the Common Stock under
federal, state or foreign laws.  Awards under the Plan are intended to
satisfy the requirements of Rule 16b-3 under the Exchange Act.  If any
provision of this Plan or any grant of an Award would otherwise conflict with
this intent, that provision will be interpreted and deemed amended so as to
avoid conflict.  Unless the Company has registered the Common Stock
covered by the Plan under the Securities Act of 1933, as amended (the “Securities
Act”), or the Company has determined that registering the Common Stock
covered by the Plan under the Securities Act is unnecessary, the Company may
require that each Participant represent in writing that he is acquiring the
shares of Common Stock covered by the Plan for his own account and investment
purposes, and not with a view to, or for sale in connection with, the
distribution of the shares of Common Stock covered by the Plan.  No
Participant will be entitled to a grant, exercise, transfer or payment of any
Award if the grant, exercise, transfer or payment would violate the provisions
of the Sarbanes-Oxley Act of 2002 or any other applicable law.

       

      
        
           

        

        
          14

          
            

          

        

        
           

        

      

       

      (o)           No Lien or Security
Interest.  No Award and no right under any such Award, may be
pledged, attached or otherwise encumbered other than in favor of GlobalOptions,
and any purported pledge, attachment, or encumbrance thereof other than in favor
of GlobalOptions shall be void and unenforceable against GlobalOptions or any
Affiliate.

       

      (p)           Severability.  If
any provision of the Plan or any Award is determined to be invalid, illegal or
unenforceable, or as to any Person or Award, or would disqualify the Plan or any
Award, 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 Person or Award, and
the remainder of the Plan and any such Award shall remain in full force and
effect.

       

      (q)           Fractional
Shares.  No fractional shares of Common Stock shall be issued
or delivered pursuant to the Plan or any Award, and the Committee shall
determine whether cash, other securities or other property shall be paid or
transferred in lieu of any fractional shares, or whether such fractional shares
or any rights thereto shall be canceled, terminated or otherwise
eliminated.

       

      (r)           Share
Certificates.  All certificates for shares of Common Stock
delivered under the Plan pursuant to any Award or the exercise thereof shall be
subject to such stop transfer orders and other restrictions as the Committee may
deem advisable under the Plan or the rules, regulations and other requirements
of the Securities and Exchange Commission, any stock exchange upon which such
shares are 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.  To the extent
that the Committee provides for the issuance of Common Stock or restricted stock
awards, the issuance may be affected on a non-certificated basis, subject to
applicable law or the applicable rules of any applicable stock
exchange.

       

      (s)           Treatment for Other Compensation
Purposes.  Payments and other benefits received by a
participant pursuant to an Award shall not be deemed part of a participant’s
regular, recurring compensation for purposes of any termination, indemnity or
severance pay laws and shall not be included in, nor have any effect on, the
determination of benefits under any other employee benefit plan, contract or
similar arrangement provided by the Company, unless expressly so provided by
such other plan, contract or arrangement.

       

      (t)           Code Section 83(b)
Elections.  The Company, its Affiliates and the Committee have
no responsibility for any participant’s election, attempt to elect or failure to
elect to include the value of a restricted stock Award or other Award subject to
Section 83 in the participant’s gross income for the year of payment pursuant to
Section 83(b) of the Code.  Any participant who makes an election
pursuant to Section 83(b) will promptly provide the Committee with a copy of the
election form.

       

      (u)           No Obligation to Exercise Awards; No
Right to Notice of Expiration Date.  The grant of an Award of a
stock option or SAR will impose no obligation upon the participant to exercise
the Award.  The Company, its Affiliates and the Committee have no
obligation to inform a participant of the date on which any Award lapses except
in the Grant Agreement.

       

       

      
        
           

        

        
          15

          
            

          

        

        
           

        

      

       

      (v)           Right to
Offset.  Notwithstanding any provisions of the Plan to the
contrary, the Company may offset any amounts to be paid to a participant (or, in
the event of the participant’s death, to his beneficiary or estate) under the
Plan against any amounts that such participant may owe to the Company, to the
extent permitted by law.

       

      (w)           Furnishing
Information.  A participant will cooperate with the Committee
by furnishing any and all information requested by the Committee and take such
other actions as may be requested in order to facilitate the administration of
the Plan and the payments of benefits hereunder, including but not limited to
taking such physical examinations as the Committee may deem
necessary.

       

      (x)           Construction.  Except
where otherwise indicated by the context, any masculine term used herein will
also include the feminine; the plural will include the singular and the singular
will include the plural.

       

      (y)           Effect on Other
Plans.  All awards granted under the Company’s 2006 Stock
Option Plan and the 2005 Stock Option Plan shall continue to be governed under
such plans.  All remaining shares reserved, but unissued with respect
to any awards under the Company’s 2006 Stock Option Plan and 2005 Stock Option
Plan are hereby unreserved and no new awards shall be issued pursuant to the
Company’s 2006 Stock Option Plan or 2005 Stock Option Plan.

       

       

      
        
           

        

        
          16ex102to8k06282_07242008.htm

    Exhibit 10.2

     

    
      GLOBALOPTIONS
GROUP, INC.

      

      AMENDED
AND RESTATED

      

      2006
EMPLOYEE STOCK PURCHASE PLAN

      

      1.           PURPOSE.  The
GlobalOptions Group, Inc. 2006 Employee Stock Purchase Plan (the “Plan”) is
intended to provide an incentive for employees of GlobalOptions Group,
Inc.  (the “Company”) and its participating
subsidiaries.  The Plan permits such employees to acquire or increase
their proprietary interests in the Company through the purchase of shares of
Common Stock of the Company, thereby creating a greater community of interest
between the Company’s stockholders and its employees.  The Plan is
intended to qualify as an “Employee Stock Purchase Plan” under Sections 421 and
423 of the Internal Revenue Code of 1986, as amended (the
“Code”).  The provisions of the Plan will be construed in a manner
consistent with the requirements of such sections of the Code and the
regulations issued thereunder.

       

      2.           DEFINITIONS.  As
used in this Plan,

       

      (a)          “Account”
means each separate account maintained for a Participant under the Plan,
collectively or individually as the context requires, to which the amount of the
Participant’s payroll deductions authorized under Section 6 and purchases of
Common Stock under Section 8 shall be credited, and any distributions of shares
of Common Stock under Section 9 and withdrawals under Section 10 shall be
charged.

       

      (b)          “Base
Pay” means the base salary paid to an employee, including commissions, payments
for overtime and shift differentials, bonuses, vacation pay and holiday
pay.  Base Pay shall exclude incentive compensation, and other special
payments, fees, fringes, allowances or extraordinary compensation not
specifically listed in the preceding sentence.

       

      (c)          “Benefits
Representative” means the employee benefits department of the Company or any
such other person, regardless of whether employed by an Employer, who has been
formally, or by operation or practice, designated by the Committee to assist the
Committee with the day-to-day administration of the Plan.

       

      (d)          “Board”
means the Board of Directors of the Company.

       

      (e)          “Code”
means the Internal Revenue Code of 1986, or any successor thereto, as amended
and in effect from time to time.  Reference in the Plan to any Section
of the Code shall be deemed to include any amendments or successor provisions to
any Section and any treasury regulations thereunder.

       

      (f)           “Committee”
means the Compensation Committee of the Board.  The Board shall have
the power to fill vacancies on the Committee arising by resignation, death,
removal or otherwise.  The Board, in its sole discretion, may
bifurcate the powers and duties of the Committee among one or more separate
Committees, or retain all powers and duties of the Committee in a single
Committee.  The members of the Committee shall serve at the discretion
of the Board.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (g)          “Common
Stock” or “Stock” means the common stock, $.001 par value per share, of the
Company.

       

      (h)          “Company”
means GlobalOptions Group, Inc., a Delaware corporation, and any successor
thereto.

       

      (i)           “Disability”
means any complete and permanent disability as defined in Section 22(e)(3) of
the Code.

       

      (j)           “Effective
Date” means October 17, 2006, the inception date of the Plan.

       

      (k)          “Employee”
means any employee who is currently in Employment with an Employer.

       

      (l)           “Employer”
means the Company, its successors, any future parent (as defined in Section
424(e) of the Code) and each current or future Subsidiary which has been
designated by the Board or the Committee as a participating employer in the
Plan.

       

      (m)         “Employment”
means employment as an employee or officer by the Company or a Subsidiary as
designated in such entity’s payroll records, or by any corporation issuing or
assuming rights or obligations under the Plan in any transaction described in
Section 424(a) of the Code or by a parent corporation or a subsidiary
corporation of such corporation.  In this regard, neither the transfer
of a Participant from Employment by the Company to Employment by a Subsidiary,
nor the transfer of a Participant from Employment by a Subsidiary to Employment
by the Company, shall be deemed to be a termination of Employment of the
Participant.  Moreover, the Employment of a Participant shall not be
deemed to have been terminated because of absence from active Employment on
account of temporary illness or during authorized vacation, temporary leaves of
absence from active Employment granted by theCompany or a Subsidiary for reasons
of professional advancement, education, health, or government service, or during
military leave for any period if the Participant returns to active Employment
within 90 days after the termination of military leave, or during any period
required to be treated as a leave of absence which, by virtue of any valid law
or agreement, does not result in a termination of Employment.

       

      Any
worker treated as an independent contractor by the Employer who is later
re-classified as a common-law employee shall not be in Employment during any
period in which such worker was treated by the Employer as an independent
contractor.  Any “leased employee,” as described in Section 414(n) of
the Code, shall not be deemed an Employee hereunder.

       

      (n)          “Entry
Date” means the first day of each Calendar month.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (o)          “Market
Price” means, subject to the next paragraph, the market value of a share of
Stock on any date, which shall be determined as (i) the closing sales price on
the immediately preceding business day of a share of Stock as reported on the
New York Stock Exchange or other principal securities exchange on which shares
of Stock are then listed or admitted to trading or (ii) if not so reported, the
average of the highest and lowest sales prices for a share of Stock on the
immediately preceding business day as quoted on the National Association of
Securities Dealers Automated Quotation System (“NASDAQ”) or any successor system
then in use, or (iii) if not quoted on NASDAQ, the average of the closing bid
and asked prices for a share of Stock as quoted by the Pink Sheets, LLC’s “Pink
Sheets” or the National Association of Securities Dealers’ OTC Bulletin Board
System.  If the price of a share of Stock shall not be so reported
pursuant to the previous sentence, the fair market value of a share of Stock
shall be determined by the Committee in its discretion provided that such method
is appropriate for purposes of an employee stock purchase plan under Section 423
of the Code.

       

      Notwithstanding
the previous paragraph of this definition, the Market Price of a share of Stock
solely for purposes of determining the option price on the first or last day of
the Calendar month in accordance with Section 7(b) shall be based on the Market
Price on the first or last day of the Calendar month, as applicable, and not on
the immediately preceding business day.  For example, if the Stock is
traded on the New York Stock Exchange, when determining the option price under
Section 7(b) at which shares of Stock are purchased, the Market Price for
determining this option price shall be based on the lower of (i) the closing
sales price of a share of Stock on the first business day of the Calendar month
or (ii) the closing sales price of a share of Stock on the last business day of
the Calendar month.

       

      (p)          “Participant”
means any Employee who meets the eligibility requirements of Section 3 and who
has elected to and is participating in the Plan.

       

      (q)          “Plan”
means the GlobalOptions Group, Inc.  2006 Employee Stock Purchase
Plan, as set forth herein, and all amendments hereto.

       

      (r)           “Stock”
means the Common Stock (as defined above).

       

      (s)          “Subsidiary”
means any domestic or foreign corporation (other than the Company) (i) which,
pursuant to Section 424(f) of the Code, is included in an unbroken chain of
corporations beginning with the Company if, at the time of the granting of the
option, each of the corporations other than the last corporation in the unbroken
chain owns stock possessing fifty percent (50%) or more of the total combined
voting power of all classes of capital stock in one of the other corporations in
such chain and (ii) which has been designated by the Board or the Committee as a
corporation whose Employees are eligible to participate in the
Plan.

       

      3.           ELIGIBILITY.

       

      (a)         Eligibility
Requirements.  Participation in the Plan is
voluntary.  Each Employee who has completed at least six (6)
consecutive months of continuous Employment with an Employer (calculated from
his last date of hire to the termination of his Employment for any reason) shall
be eligible to participate in the Plan on the first day of the payroll period
commencing on or after the Effective Date or, if later, the Entry Date on which
the Employee satisfies the aforementioned eligibility
requirements.  Each Employee whose Employment terminates and who is
rehired by an Employer shall be treated as a new Employee for eligibility
purposes under the Plan, provided, however, that if an Employee is rehired by an
Employer prior to the expiration of three months following his or her
termination, such Employee shall not be a new Employee for eligibility purposes
under the Plan.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (b)         Limitations on
Eligibility.  Any provision of the Plan to the contrary
notwithstanding, no Employee shall be granted an option under the
Plan:

       

      (i)        if,
immediately after the grant, the Employee would own stock, and/or hold
outstanding options to purchase stock, possessing five percent (5%) or more of
the total combined voting power or value of all classes of stock of the Company
or of any Subsidiary;

       

      (ii)       which
permits the Employee’s rights to purchase stock under this Plan and all other
employee stock purchase plans (within the meaning of Section 423 of the Code) of
the Company and its Subsidiaries to accrue at a rate which exceeds $25,000 of
the fair market value of the stock (determined at the time such option is
granted) for each fiscal year in which such option is outstanding at any time,
all as determined in accordance with Section 423(b)(8) of the Code;

       

      (iii)      if
the Employee’s customary Employment is 20 hours or less per week;
or

       

      (iv)     if
the Employee is employed for less than 5 months in a calendar year.

       

      For
purposes of Section 3(b)(i) above, pursuant to Section 424(d) of the Code, (i)
the Employee with respect to whom such limitation is being determined shall be
considered as owning the stock owned, directly or indirectly, by or for his
brothers and sisters (whether by the whole or half blood), spouse, ancestors,
and lineal descendants; and (ii) stock owned, directly or indirectly, by or for
a corporation, partnership, estate, or trust, shall be considered as being owned
proportionately by or for its shareholders, partners, or
beneficiaries.  In addition, for purposes of Section 3(b)(ii) above,
pursuant to Section 423(b)(8) of the Code, (i) the right to purchase stock under
an option accrues when the option (or any portion thereof) first becomes
exercisable during the calendar year, (ii) the right to purchase stock under an
option accrues at the rate provided in the option but in no case may such rate
exceed $25,000 of fair market value of such stock (determined at the time such
option is granted) for any one calendar year, and (iii) a right to purchase
stock which has accrued under one option granted pursuant to the Plan may not be
carried over to any other option.

       

      4.           SHARES SUBJECT TO THE
PLAN.  The total number of shares of Common Stock that will be
issued upon the exercise of options granted under the Plan will not exceed Two
Million (2,000,000) shares (subject to adjustment as provided in Section 17),
and such shares may be originally issued shares, treasury shares, reacquired
shares, shares bought in the market, or any combination of the
foregoing.  If any option which has been granted expires or terminates
for any reason without having been exercised in full, the unpurchased shares
will again become available for purposes of the Plan.  Any shares
which are not subject to outstanding options upon the termination of the Plan
shall cease to be subject to the Plan.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      5.           PARTICIPATION.

       

      (a)         Payroll Deduction
Authorization.  An Employee shall be eligible to participate in
the Plan as of the first Entry Date following such Employee’s satisfaction of
the eligibility requirements of Section 3, or, if later, the first Entry Date
following the date on which the Employee’s Employer adopted the
Plan.  At least 10 days (or such other period as may be prescribed by
the Committee or a Benefits Representative) prior to the first Entry Date as of
which an Employee is eligible to participate in the Plan, the Employee shall
execute and deliver to the Benefits Representative, on the form prescribed for
such purpose, an authorization for payroll deductions which specifies his chosen
rate of payroll deduction contributions pursuant to Section 6, and such other
information as is required to be provided by the Employee on such enrollment
form.  The enrollment form shall authorize the Employer to reduce the
Employee’s Base Pay by the amount of such authorized
contributions.  To the extent provided by the Committee or a Benefits
Representative, each Participant shall also be required to open a stock
brokerage account with a brokerage firm which has been engaged to administer the
purchase, holding and sale of Common Stock for Accounts under the Plan and, as a
condition of participation hereunder, the Participant shall be required to
execute any form required by the brokerage firm to open and maintain such
brokerage account.

       

      (b)         Continuing Effect of Payroll
Deduction Authorization.  Payroll deductions for a Participant
will commence with the first payroll period beginning after the Participant’s
authorization for payroll deductions becomes effective, and will end with the
payroll period that ends when terminated by the Participant in accordance with
Section 6(c) or due to his termination of Employment in accordance with Section
11.  Payroll deductions will also cease when the Participant is
suspended from participation due to a withdrawal of payroll deductions in
accordance with Section 10.  When applicable with respect to Employees
who are paid on a hourly wage basis, the authorized payroll deductions shall be
withheld from wages when actually paid following the period in which the
compensatory services were rendered.  Only payroll deductions that are
credited to the Participant’s Account during the Calendar month shall be used to
purchase Common Stock pursuant to Section 8 regardless of when the work was
performed.

       

      (c)         Employment and Stockholders
Rights.  Nothing in the Plan will confer on a Participant the
right to continue in the employ of the Employer or will limit or restrict the
right of the Employer to terminate the Employment of a Participant at any time
with or without cause.  A Participant will have no interest in any
Common Stock to be purchased under the Plan or any rights as a stockholder with
respect to such Stock until the Stock has been purchased and credited to the
Participant’s Account.

       

      6.           PAYROLL
DEDUCTIONS.

       

      (a)         Participant Contributions by
Payroll Deductions.  At the time a Participant files his
payroll deduction authorization form, the Participant will elect to have
deductions made from the Participant’s Base Pay for each payroll period such
authorization is in effect in whole percentages at the rate of not less than 1%
nor more than 15% of the Participant’s Base Pay.

       

      (b)         No Other Participant
Contributions Permitted.  All payroll deductions made for a
Participant shall be credited to the Participant’s Account under the
Plan.  A Participant may not make any separate cash payment into such
Account.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (c)         Changes in Participant
Contributions.  Subject to Sections 10 and 22, a Participant
may increase, decrease, suspend, or resume payroll deductions under the Plan by
giving written notice to a designated Benefits Representative at such time and
in such form as the Committee or Benefits Representative may prescribe from time
to time.  Such increase, decrease, suspension or resumption shall be
effective as of the first day of the payroll period as soon as administratively
practicable after receipt of the Participant’s written notice, but not earlier
than the first day of the payroll period of the Calendar month next following
receipt and acceptance of such form.  Notwithstanding the previous
sentence, a Participant may completely discontinue contributions at any time
during a Calendar month, effective as of the first day of the payroll period as
soon as administratively practicable following receipt of a written
discontinuance notice from the Participant on a form provided by a designated
Benefits Representative.  Following a discontinuance of contributions,
a Participant cannot authorize any payroll contributions to his Account for the
remainder of the Calendar month in which the discontinuance is
effective.

       

      7.           GRANTING OF OPTION TO
PURCHASE STOCK.

       

      (a)         Monthly Grant of
Options.  For each calendar month, a Participant shall be
deemed to have been granted an option to purchase, on the first day of the
calendar month, as many whole and fractional shares as may be purchased with the
payroll deductions (and any cash dividends as provided in Section 8) credited to
the Participant’s Account during the calendar month.

       

      (b)         Option
Price.  The option price of the Common Stock purchased with the
amount credited to the Participant’s Account during each calendar month shall be
the lower of:

       

      (i)        85%
of the Market Price of a share of Stock on the first day of the calendar month;
or

       

      (ii)       85%
of the Market Price of a share of Stock on the last day of the calendar
month.

       

      Only the
Market Price as of the first day of the Calendar month and the last day of the
Calendar month shall be considered for purposes of determining the option
purchase price; interim fluctuations during the Calendar month shall not be
considered.

       

      8.           EXERCISE OF
OPTION.

       

      (a)         Automatic Exercise of
Options.  Unless a Participant has elected to withdraw payroll
deductions in accordance with Section 10, the Participant’s option for the
purchase of Common Stock shall be deemed to have been exercised automatically as
of the last day of the Calendar month for the purchase of the number of whole
and fractional shares of Common Stock which the accumulated payroll deductions
(and cash dividends on the Common Stock as provided in Section 8(b)) in the
Participant’s Account at that time will purchase at the applicable option
price.  Fractional shares may not be issued under the
Plan.  As of the last day of each Calendar month, the balance of each
Participant’s Account shall be applied to purchase the number of whole shares of
Stock as determined by dividing the balance of such Participant’s Account as of
such date by the option price determined pursuant to Section
7(b).  The Participant’s Account shall be debited
accordingly.  Any balance in a Participant’s stock purchase account
which was not applied to the purchase of Common Stock because it was less than
the purchase price of a full share shall remain in the Participant’s stock
purchase account and be carried over to the succeeding Calendar
month.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (b)         Dividends
Generally.  Cash dividends paid on shares of Common Stock which
have not been delivered to the Participant pending the Participant’s request for
delivery pursuant to Section 9(c), shall be combined with the Participant’s
payroll deductions and applied to the purchase of Common Stock at the end of the
Calendar month in which the cash dividends are received, subject to the
Participant’s withdrawal rights set forth in Section 10.  Dividends
paid in the form of shares of Common Stock or other securities with respect to
shares that have been purchased under the Plan, but which have not been
delivered to the Participant, shall be credited to the shares that are credited
to the Participant’s Account.

       

      (c)         Pro-rata Allocation of
Available Shares.  If the total number of shares to be
purchased under options under the Plan by all Participants exceeds the number of
shares authorized under Section 4, a pro-rata allocation of the available shares
shall be made among all Participants authorizing such payroll deductions based
on the amount of their respective payroll deductions through the last day of the
Calendar month.

       

      9.           OWNERSHIP AND DELIVERY OF
SHARES.

       

      (a)         Beneficial
Ownership.  A Participant shall be the beneficial owner of the
shares of Common Stock purchased under the Plan upon the exercise of his option
and will have all rights of beneficial ownership in such shares.  Any
dividends paid with respect to such shares shall be credited to the
Participant’s Account and applied as provided in Section 8 until the shares are
delivered to the Participant.

       

      (b)         Registration of
Stock.  Stock to be delivered to a Participant under the Plan
shall be registered in the name of the Participant, or if the Participant so
directs by written notice to the designated Benefits Representative or brokerage
firm, if any, prior to the purchase of Stock hereunder, in the names of the
Participant and one such other person as may be designated by the Participant,
as joint tenants with rights of survivorship or as tenants by the entirety, to
the extent permitted by applicable law.  Any such designation shall
not apply to shares purchased after a Participant’s death by the Participant’s
beneficiary or estate, as the case may be, pursuant to Section
11(b).  If a brokerage firm is engaged by the Company to administer
Accounts under the Plan, such firm shall provide such account registration forms
as are necessary for each Participant to open and maintain a brokerage account
with such firm.

       

      (c)         Delivery of Stock
Certificates.  The Company, or a brokerage firm or other entity
selected by the Company, shall deliver to each Participant a certificate for the
number of shares of Common Stock purchased by the Participant hereunder as soon
as practicable after the close of each Calendar month.  Alternatively,
in the discretion of the Committee, the stock certificate may be delivered to a
designated stock brokerage account maintained for the Participant and held in
“street name” in order to facilitate the subsequent sale of the purchased
shares.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (d)         Regulatory
Approval.  In the event the Company is required to obtain from
any commission or agency the authority to issue any stock certificate hereunder,
the Company shall seek to obtain such authority.  The inability of the
Company to obtain from any such commission or agency the authority which counsel
for the Company deems necessary for the lawful issuance of any such certificate
shall relieve the Company from liability to any Participant, except to return to
the Participant the amount of his Account balance used to exercise the option to
purchase the affected shares.

       

      10.         WITHDRAWAL OF PAYROLL
DEDUCTIONS.  At any time during a Calendar month, but in no
event later than 15 days (or such shorter prescribed by the Committee or a
Benefits Representative) prior to the last day of the Calendar month, a
Participant may elect to abandon his election to purchase Common Stock under the
Plan.  By written notice to the designated Benefits Representative on
a form provided for such purpose, the Participant may thus elect to withdraw all
of the accumulated balance in his Account being held for the purchase of Common
Stock in accordance with Section 8(b).  Partial withdrawals will not
be permitted.  All such amounts shall be paid to the Participant as
soon as administratively practical after receipt of his notice of
withdrawal.  After receipt and acceptance of such withdrawal notice,
no further payroll deductions shall be made from the Participant’s Base Pay
beginning as of the next payroll period during the Calendar month in which the
withdrawal notice is received.  The Committee, in its discretion, may
determine that amounts otherwise withdrawable hereunder by Participants shall be
offset by an amount that the Committee, in its discretion, determines to be
reasonable to help defray the administrative costs of effecting the withdrawal,
including, without limitation, fees imposed by any brokerage firm which
administers such Participant’s Account.  After a withdrawal, an
otherwise eligible Participant may resume participation in the Plan as of the
first day of the Calendar month next following his delivery of a payroll
deduction authorization pursuant to the procedures prescribed in Section
5(a).

       

      11.         TERMINATION OF
EMPLOYMENT.

       

      (a)         General
Rule.  Upon termination of a Participant’s Employment for any
reason, his participation in the Plan will immediately terminate.

       

      (b)         Termination Due to
Retirement, Death or Disability.  If the Participant’s
termination of Employment is due to (i) retirement from Employment on or after
his attainment of age 65, (ii) death, or (iii) Disability, the Participant (or
the Participant’s personal representative or legal guardian in the event of
Disability, or the Participant’s beneficiary (as defined in Section 14) or the
administrator of his will or executor of his estate in the event of death), will
have the right to elect, either to:

       

      (i)        Withdraw
all of the cash and shares of Common Stock credited to the Participant’s Account
as of his termination date; or

       

      (ii)       Exercise
the Participant’s option for the purchase of Common Stock on the last day of the
Calendar month (in which termination of Employment occurs) for the purchase of
the number of shares of Common Stock which the cash balance credited to the
Participant’s Account as of the date of the Participant’s termination of
Employment will purchase at the applicable option price.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      The
Participant (or, if applicable, such other person designated in the first
paragraph of this Section 11(b)) must make such election by giving written
notice to the Benefits Representative at such time and in such manner as
prescribed from time to time by the Committee or Benefits
Representative.  In the event that no such written notice of election
is received by the Benefits Representative within 30 days of the Participant’s
termination of Employment date, the Participant (or such other designated
person) will automatically be deemed to have elected to withdraw the balance in
the Participant’s Account as of the date of the termination of his
Employment.  Thereafter, any accumulated cash and shares of Common
Stock credited to the Participant’s Account as of his termination of Employment
date shall be delivered to or on behalf of the Participant as soon as
administratively practicable.

       

      (c)         Termination Other Than for
Retirement, Death or Disability.  Upon termination of a
Participant’s Employment for any reason other than retirement, death, or
Disability pursuant to Section 11(b), the participation of the Participant in
the Plan will immediately terminate.  Thereafter, any accumulated cash
and shares of Common Stock credited to the Participant’s Account as of his
termination of Employment date shall be delivered to the Participant as soon as
administratively practicable.

       

      (d)         Rehired
Employees.  Any Employee whose Employment terminates and who is
subsequently rehired by an Employer shall be treated as a new Employee for
purposes of eligibility to participate in the Plan, except as stated in Section
3(a).

       

      12.         INTEREST.  No
interest shall be paid or allowed on any money paid into the Plan or credited to
the Account of any Participant.

       

      13.         ADMINISTRATION OF THE
PLAN.

       

      (a)         No Participation in Plan by
Committee Members.  No options may be granted under the Plan to
any member of the Committee during the term of his membership on the
Committee.

       

      (b)         Authority of the
Committee.  Subject to the provisions of the Plan, the
Committee shall have the plenary authority to (a) interpret the Plan and all
options granted under the Plan, (b) make such rules as it deems necessary for
the proper administration of the Plan, (c) make all other determinations
necessary or advisable for the administration of the Plan, and (d) correct any
defect or supply any omission or reconcile any inconsistency in the Plan or in
any option granted under the Plan in the manner and to the extent that the
Committee deems advisable.  Any action taken or determination made by
the Committee pursuant to this and the other provisions of the Plan shall be
conclusive on all parties.  The act or determination of a majority of
the Committee shall be deemed to be the act or determination of the
Committee.  By express written direction, or by the day-to-day
operation of Plan administration, the Committee may delegate the authority and
responsibility for the day-to-day administrative or ministerial tasks of the
Plan to a Benefits Representative, including a brokerage firm or other third
party engaged for such purpose.

       

      (c)         Meetings.  The
Committee shall designate a chairman from among its members to preside at its
meetings, and may designate a secretary, without regard to whether that person
is a member of the Committee, who shall keep the minutes of the
proceedings.  Meetings shall be held at such times and places as shall
be determined by the Committee, and the Committee may hold telephonic
meetings.  The Committee may take any action otherwise proper under
the Plan by the affirmative vote of a majority of its members taken at a
meeting, or by the affirmative vote of all of its members taken without a
meeting.  The Committee may authorize any one or more of their members
or any officer of the Company to execute and deliver documents on behalf of the
Committee.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (d)         Decisions
Binding.  All determinations and decisions made by the
Committee shall be made in its discretion pursuant to the provisions of the
Plan, and shall be final, conclusive and binding on all persons including the
Company, Participants, and their estates and beneficiaries.

       

      (e)         Expenses of
Committee.  The Committee may employ legal counsel, including,
without limitation, independent legal counsel and counsel regularly employed by
the Company, consultants and agents as the Committee may deem appropriate for
the administration of the Plan.  The Committee may rely upon any
opinion or computation received from any such counsel, consultant or
agent.  All expenses incurred by the Committee in interpreting and
administering the Plan, including, without limitation, meeting expenses and
professional fees, shall be paid by the Company.

       

      (f)          Indemnification.  Each
person who is or was a member of the Committee shall be indemnified by the
Company against and from any damage, loss, liability, cost and expense that may
be imposed upon or reasonably incurred by him in connection with or resulting
from any claim, action, suit, or proceeding to which he may be a party or in
which he may be involved by reason of any action taken or failure to act under
the Plan, except for any such act or omission constituting willful misconduct or
gross negligence.  Such person shall be indemnified by the Company for
all amounts paid by him in settlement thereof, with the Company’s approval, or
paid by him in satisfaction of any judgment in any such action, suit, or
proceeding against him, provided he shall give the Company an opportunity, at
its own expense, to handle and defend the same before he undertakes to handle
and defend it on his own behalf.  The foregoing right of
indemnification shall not be exclusive of any other rights of indemnification to
which such persons may be entitled under the Company’s Articles of Incorporation
or By-Laws, as a matter of law, or otherwise, or any power that the Company may
have to indemnify them or hold them harmless.

       

      14.         DESIGNATION OF
BENEFICIARY.  At such time, in such manner, and using such form
as shall be prescribed from time to time by the Committee or a Benefits
Representative, a Participant may file a written designation of a beneficiary
who is to receive any Common Stock and/or cash credited to the Participant’s
Account at the Participant’s death.  Such designation of beneficiary
may be changed by the Participant at any time by giving written notice to the
Benefits Representative at such time and in such form as
prescribed.  Upon the death of a Participant, and receipt by the
Benefits Representative of proof of the identity at the Participant’s death of a
beneficiary validly designated under the Plan, the Benefits Representative will
take appropriate action to ensure delivery of such Common Stock and/or cash to
such beneficiary.  In the event of the death of a Participant and the
absence of a beneficiary validly designated under the Plan who is living at the
time of such Participant’s death, the Benefits Representative will take
appropriate action to ensure delivery of such Common Stock and/or cash to the
executor or administrator of the estate of the Participant, or if no such
executor or administrator has been appointed (to the knowledge of the Benefits
Representative), the Committee, in its discretion, may direct delivery of such
Common Stock and/or cash to the spouse or to any one or more dependents of the
Participant as the Committee may designate in its discretion.  No
beneficiary will, prior to the death of the Participant, acquire any interest in
any Common Stock or cash credited to the Participant’s Account.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      15.         TRANSFERABILITY.  No
amounts credited to a Participant’s Account, whether cash or Common Stock, nor
any rights with regard to the exercise of an option or to receive Common Stock
under the Plan, may be assigned, transferred, pledged, or otherwise disposed of
in any way by the Participant other than by will or the laws of descent and
distribution.  Any such attempted assignment, transfer, pledge, or
other disposition shall be void and without effect.

       

      Each
option shall be exercisable, during the Participant’s lifetime, only by the
Employee to whom the option was granted.  The Company shall not
recognize, and shall be under no duty to recognize, any assignment or purported
assignment by an Employee of his option or of any rights under his
option.

       

      16.         NO RIGHTS OF STOCKHOLDER
UNTIL CERTIFICATE ISSUED.  With respect to shares of Stock
subject to an option, an optionee shall not be deemed to be a stockholder, and
the optionee shall not have any of the rights or privileges of a
stockholder.  An optionee shall have the rights and privileges of a
stockholder when, but not until, a certificate for shares has been issued to the
optionee following exercise of his option.

       

      17.         CHANGES IN THE COMPANY’S
CAPITAL STRUCTURE.  The Board shall make or provide for such
adjustments in the maximum number of shares specified in Section 4 and the
number and option price of shares subject to options outstanding under the Plan
as the Board shall determine is appropriate to prevent dilution or enlargement
of the rights of Participants that otherwise would result from any stock
dividend, stock split, stock exchange, combination of shares, recapitalization
or other change in the capital structure of the Company, merger, consolidation,
spin-off of assets, reorganization, partial or complete liquidation, issuance of
rights or warrants to purchase securities, or any other corporate transaction or
event having an effect similar to any of the foregoing.

       

      In the
event of a merger of one or more corporations into the Company, or a
consolidation of the Company and one or more corporations in which the Company
shall be the surviving corporation, each Participant, at no additional cost,
shall be entitled, upon his payment for all or part of the Common Stock
purchasable by him under the Plan, to receive (subject to any required action by
shareholders) in lieu of the number of shares of Common Stock which he was
entitled to purchase, the number and class of shares of stock or other
securities to which such holder would have been entitled pursuant to the terms
of the agreement of merger or consolidation if, immediately prior to such merger
or consolidation, such holder had been the holder of record of the number of
shares of Common Stock equal to the number of shares purchasable by the
Participant under the Plan.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      If the
Company shall not be the surviving corporation in any reorganization, merger or
consolidation (or survives only as a subsidiary of an entity other than a
previously wholly-owned subsidiary of the Company), or if the Company is to be
dissolved or liquidated or the Company sells substantially all of its assets or
stock to another corporation or other entity, then, unless a surviving
corporation assumes or substitutes new options (within the meaning of Section
424(a) of the Code) for all options then outstanding, (i) the date of exercise
for all options then outstanding shall be accelerated to dates fixed by the
Committee prior to the effective date of such corporate event, (ii) a
Participant may, at his election by written notice to the Company, either (x)
withdraw from the Plan pursuant to Section 10 and receive a refund from the
Company in the amount of the accumulated cash and Stock balance in the
Participant’s Account, (y) exercise a portion of his outstanding options as of
such exercise date to purchase shares of Stock, at the option price, to the
extent of the balance in the Participant’s Account, or (z) exercise in full his
outstanding options as of such exercise date to purchase shares of Stock, at the
option price, which exercise shall require such Participant to pay the related
option price, and (iii) after such effective date any unexercised option shall
expire.  The date the Committee selects for the exercise date under
the preceding sentence shall be deemed to be the exercise date for purposes of
computing the option price per share of Stock.  If the Participant
elects to exercise all or any portion of the options, the Company shall deliver
to such Participant a stock certificate issued pursuant to Section 9(c) for the
number of shares of Stock with respect to which such options were exercised and
for which such Participant has paid the option price.  If the
Participant fails to provide the notice set forth above within three days after
the exercise date selected by the Committee under this Section 17, the
Participant shall be conclusively presumed to have requested to withdraw from
the Plan and receive payment of the accumulated balance of his
Account.  The Committee shall take such steps in connection with such
transactions as the Committee shall deem necessary or appropriate to assure that
the provisions of this Section 17 are effectuated for the benefit of the
Participants.

       

      Except as
expressly provided in this Section 17, the issue by the Company of shares of
stock of any class, or securities convertible into shares of stock of any class,
for cash or property, or for labor or services either upon direct sale or upon
the exercise of rights or warrants to subscribe therefor, or upon conversion of
shares or obligations of the Company convertible into such shares or other
securities, shall not affect, and no adjustment by reason thereof shall be made
with respect to, the number or price of shares of Stock then available for
purchase under the Plan.

       

      18.         PLAN EXPENSES; USE OF FUNDS;
NO INTEREST PAID.  The expenses of the Plan shall be paid by
the Company except as otherwise provided herein or under the terms and
conditions of any agreement entered into between the Participant and any
brokerage firm engaged to administer Accounts.  All funds received or
held by the Company under the Plan shall be included in the general funds of the
Company free of any trust or other restriction, and may be used for any
corporate purpose.  No interest shall be paid to any Participant or
credited to his Account under the Plan.

       

      19.         TERM OF THE
PLAN.  The Plan shall become effective as of October 17, 2006,
subject to approval by the holders of the majority of the Common Stock present
and represented at a special or annual meeting of the Company’s stockholders
held on or before 12 months from October 17, 2006.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Except
with respect to options then outstanding, if not terminated sooner under the
provisions of Section 20, no further options shall be granted under the Plan at
the earlier of (i) October 17, 2016, or (ii) the point in time when no shares of
Stock reserved for issuance under Section 4 are available.

       

      20.         AMENDMENT OR TERMINATION OF
THE PLAN.  The Board shall have the plenary authority to
terminate or amend the Plan; provided, however, that the Board shall not,
without the approval of the stockholders of the Company, (a) increase the
maximum number of shares which may be issued under the Plan pursuant to Section
4, (b) amend the requirements as to the class of employees eligible to purchase
Stock under the Plan, or (c) permit the members of the Committee to purchase
Stock under the Plan.  No termination, modification, or amendment of
the Plan shall adversely affect the rights of a Participant with respect to an
option previously granted to him without his written consent.

       

      In
addition, to the extent that the Committee determines that, in the opinion of
counsel, (a) the listing for qualification requirements of any national
securities exchange or quotation system on which the Company’s Common Stock is
then listed or quoted, or (b) the Code or Treasury regulations issued
thereunder, require stockholder approval in order to maintain compliance with
such listing or qualification requirements or to maintain any favorable tax
advantages or qualifications, then the Plan shall not be amended by the Board in
such respect without first obtaining such required approval of the Company’s
stockholders.

       

      21.         SECURITIES LAWS RESTRICTIONS
ON EXERCISE.  The Committee may, in its discretion, require as
conditions to the exercise of any option that the shares of Common Stock
reserved for issuance upon the exercise of the option shall have been duly
listed, upon official notice of issuance, upon a stock exchange, and that
either:

       

      (a)         a
Registration Statement under the Securities Act of 1933, as amended, with
respect to said shares shall be effective; or

       

      (b)         the
participant shall have represented at the time of purchase, in form and
substance satisfactory to the Company, that it is his intention to purchase the
Stock for investment and not for resale or distribution.

       

      22.         SECTION 16
COMPLIANCE.  The Plan, and transactions hereunder by persons
subject to Section 16 of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”), are intended to comply with all applicable conditions of Rule
16b-3 or any successor exemption provision promulgated under the Exchange
Act.  To the extent that any provision of the Plan or any action by
the Committee or the Board fails, or is deemed to fail, to so comply, such
provision or action shall be null and void but only to the extent permitted by
law and deemed advisable by the Committee in its discretion.

       

      23.         WITHHOLDING AND PAYROLL
TAXES.  Notwithstanding anything in this Plan to the contrary,
whenever an option is exercised pursuant to Section 8 or whenever shares of
Stock that were received upon the exercise of an option granted under the Plan
are disposed of, the Company shall have the right to require the Participant to
remit to the Company in cash an amount sufficient to satisfy federal, state and
local withholding and payroll (employment) tax requirements, if any,
attributable to such exercise or disposition prior to authorizing such exercise
or disposition or permitting the delivery of any certificate or certificates
with respect thereto.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      24.         NO RESTRICTION ON CORPORATE
ACTION.  Subject to Section 20, nothing contained in the Plan
shall be construed to prevent the Board or any Employer from taking any
corporate action which is deemed by the Employer to be appropriate or in its
best interest, whether or not such action would have an adverse effect on the
Plan or any option granted under the Plan.  No Employee, beneficiary
or other person shall have any claim against any Employer as a result of any
such action.

       

      25.         USE OF
FUNDS.  The Employers shall promptly transfer all amounts
withheld under Section 6 to the Company or to any brokerage firm engaged to
administer Accounts, as directed by the Company.  All payroll
deductions received or held by the Company under the Plan may be used by the
Company for any corporate purpose, and the Company will not be obligated to
segregate such payroll deductions.

       

      26.         MISCELLANEOUS.

       

      (a)         Options Carry Same Rights
and Privileges.  To the extent required to comply with the
requirements of Section 423 of the Code, all Employees granted options under the
Plan to purchase Common Stock shall have the same rights and privileges
hereunder.

       

      (b)          Headings.  Any
headings or subheadings in this Plan are inserted for convenience of reference
only and are to be ignored in the construction or interpretation of any
provisions hereof.

       

      (c)          Gender and
Tense.  Any words herein used in the masculine shall be read
and construed in the feminine when appropriate.  Words in the singular
shall be read and construed as though in the plural, and vice-versa, when
appropriate.

       

      (d)         Governing
Law.  This Plan shall be governed and construed in accordance
with the laws of the State of Delaware to the extent not preempted by federal
law.

       

      (e)         Regulatory Approvals and
Compliance.  The Company’s obligation to sell and deliver
Common Stock under the Plan is at all times subject to all approvals of and
compliance with the (i) regulations of any applicable stock exchanges and (ii)
any governmental authorities required in connection with the authorization,
issuance, sale or delivery of such Stock, as well as federal, state and foreign
securities laws.

       

      (f)           Severability.  In
the event that any provision of this Plan shall be held illegal, invalid, or
unenforceable for any reason, such provision shall be fully severable, but shall
not affect the remaining provisions of the Plan, and the Plan shall be construed
and enforced as if the illegal, invalid, or unenforceable provision had not been
included herein.

       

      (g)         Refund of Contributions on
Noncompliance with Tax Law.  In the event the Company should
receive notice that this Plan fails to qualify as an “employee stock purchase
plan” under Section 423 of the Code, all then-existing Account balances shall be
paid to the Participants and the Plan shall immediately terminate.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (h)         No Guarantee of Tax
Consequences.  The Board, Employer and the Committee do not
make any commitment or guarantee that any tax treatment will apply or be
available to any person participating or eligible to participate in the Plan,
including, without limitation, any tax imposed by the United States or any state
thereof, any estate tax, or any tax imposed by a foreign
government.

       

      (i)           Company as Agent for the
Employers.  Each Employer, by adopting the Plan, appoints the
Company and the Board as its agents to exercise on its behalf all of the powers
and authorities hereby conferred upon the Company and the Board by the terms of
the Plan, including, but not by way of limitation, the power to amend and
terminate the Plan.

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