Document:

www.EXFILE.com          888.775-4789            MATRITECH, INC.  FORM 8-K

    EXHIBIT
      10.1

     

    MATRITECH,
      INC.

    2006
      EQUITY AND INCENTIVE PLAN

     

    1.
      Purposes
      of the Plan

     

    The
      purposes of the Matritech, Inc. 2006 Equity and Incentive Plan (the “Plan”) are
      (i) to provide long-term incentives and rewards to those employees,
      officers, directors, and consultants of Matritech, Inc. (the “Company”) and
      its Affiliates (as defined below) who are in a position to contribute to the
      long-term success and growth of the Company and its Affiliates, (ii) to
      assist the Company and its Affiliates in attracting and retaining persons with
      the requisite experience and ability, and (iii) to more closely align the
      interests of such employees, officers, directors, and consultants with the
      interests of the Company’s stockholders.

     

    2.
      Definitions

     

    “Affiliate”
      means any Subsidiary and any other business entity that is directly or
      indirectly controlled by the Company or any entity in which the Company has
      a
      significant ownership interest as determined by the Committee; provided that
      any
      business entity in which the Company holds, directly or indirectly, an equity,
      profits, or voting interest of 30% or
      more
      shall be deemed to be an Affiliate.

     

    “Applicable
      Law” means the applicable requirements relating to the administration of equity
      compensation plans under Delaware
      state corporate law, federal and state securities laws, the Code, any stock
      exchange or quotation system on which the Common Stock is listed or quoted,
      employment laws, and the applicable laws of any foreign jurisdiction where
      Awards are or will be granted.

     

    “Award”
      means any Option, Stock Appreciation Right, Restricted Stock, Restricted Stock
      Unit, Cash Award, or Foreign National Award granted under the Plan. Awards
      may
      be granted for services to be rendered or for past services already rendered
      to
      the Company or any Affiliate.

     

    “Cash
      Award” means an Award granted to a Participant pursuant to
      Section 10(d) of the Plan that is payable in cash, and that may be
      subject to certain terms, conditions, and restrictions.

     

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

     

    “Code”
      means the Internal Revenue Code of 1986, as amended from time to time, or any
      successor law.

     

    “Committee”
      means one or more committees each comprised of not less than two members of
      the
      Board appointed by the Board to administer the Plan or a specified portion
      thereof. To the extent that the Board determines it is desirable to qualify
      Awards granted to Covered Employees under the Plan as “performance-based
      compensation” within the meaning of Section 162(m) of the Code, then
      each member of the Committee shall be an “outside director” within the meaning
      of Section 162(m) of the Code. To the extent that the Board determines
      it is desirable to qualify Awards granted by the Committee to a Reporting Person
      under the Plan as exempt under Rule 16b-3(d)(1) of the Exchange Act,
      then each member of the Committee shall be a “non-employee director” within the
      meaning of Rule 16b-3.

     

    “Common
      Stock” or “Stock” means the common stock of the Company.

     

    “Company”
      means Matritech, Inc., or any successor corporation.

     

    “Covered
      Employee” means a “covered employee” within the meaning of
      Section 162(m) of the Code.

     

    “Designated
      Beneficiary” means the beneficiary designated by a Participant, in a manner
      determined by the Committee, to receive amounts due or exercise rights of the
      Participant in the event of the 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Participant’s
      death. In the absence of an effective designation by a Participant, “Designated
      Beneficiary” means the Participant’s estate.

     

     

    “Disability”
      means a total and permanent disability as provided in the long-term disability
      plan or policy maintained by the Company or if applicable, most recently
      maintained, by the Company or if applicable, an Affiliate, for the Participant,
      whether or not such Participant actually receives disability benefits under
      such
      plan or policy. If no long-term disability plan or policy was ever maintained
      on
      behalf of the Participant or if the determination of disability relates to
      an
      Incentive Stock Option or SAR issued in tandem with an Incentive Stock Option,
      Disability means permanent and total disability as defined in
      Section 22(e)(3) of the Code. In the event of a dispute, the
      determination whether a Participant is disabled will be made by the Committee
      and may be supported by the advice of a physician competent in the area to
      which
      such disability relates.

     

    “Exchange
      Act” means the Securities Exchange Act of 1934, as amended from time to time, or
      any successor law.

     

    “Fair
      Market Value” means, with respect to Common Stock or any other property, the
      fair market value of such property as determined by the Committee in good faith
      or in the manner established by the Committee from time to time.

     

    “Foreign
      National Award” means an Award granted pursuant to Section 10(f) to a
      Participant who is a foreign national or employed or performing services outside
      of the United States.

     

    “Grant
      Date” means the first date on which all necessary corporate action has been
      taken to approve the grant of the Award as provided in the Plan, or such later
      date as is determined and specified as part of that authorization process.
      Notice of the grant shall be provided to the Participant within a reasonable
      time after the grant.

     

    “Grant
      Agreement” means the documentation evidencing an Award as provided in
      Section 10(b).

     

    “Incentive
      Stock Option” means an Option intended to qualify as an incentive stock option
      and which meets the requirements of Section 422 of the Code.

     

    “Non-Qualified
      Stock Option” means an Option that is not an Incentive Stock
      Option.

     

    “Option”
      means a right to acquire shares of Company Stock upon the payment of an exercise
      price that is granted in accordance with Section 6 of the Plan. An Option
      may be either an Incentive Stock Option or a Non-Qualified Stock
      Option.

     

    “Participant”
      means a person selected by the Committee to receive an Award under the
      Plan.

     

    “Performance
      Goals” means with respect to any Performance Period, one or more performance
      goals based on one or more of the following objective criteria established
      by
      the Committee prior to the beginning of such Performance Period or within such
      period after the beginning of the Performance Period as shall meet the
      requirements to be considered “pre-established objective performance goals” for
      purposes of the regulations issued under Section 162(m) of the Code:
      (i) increases in the price of the Common Stock, (ii) market share,
      (iii) sales, (iv) revenue, (v) return on equity, assets, or
      capital, (vi) economic profit (economic value added), (vii) total
      shareholder return, (viii) costs, (ix) expenses, (x) margins,
      (xi) earnings (including EBITDA) or earnings per share, (xii) cash flow
      (including adjusted operating cash flow), (xiii) customer satisfaction, (xiv)
      operating profit, (xv) net income, (xvi) research and development, (xvii)
      product development milestones, (xviii) product releases, (xix) FDA or other
      regulatory approvals, (xx) clinical trial milestones, (xxi) manufacturing
      metrics, or (xxii) any combination of the foregoing, including without
      limitation, goals based on any of such measures relative to appropriate peer
      groups or market indices. Such Performance Goals may be particular to a
      Participant or may be based, in whole or in part, on the performance of the
      division, department, line of business, Subsidiary, Affiliate or other business
      unit, 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    whether
      or not legally constituted, in which the Participant works or on the performance
      of the Company generally.

     

    “Performance
      Period” means the period of service designated by the Committee applicable to an
      Award subject to Section 10(l) during which the Performance Goals will
      be measured.

     

    “Reporting
      Person” means a person subject to Section 16 of the Exchange
      Act.

     

    “Restricted
      Stock” means shares of Common Stock granted to a Participant pursuant to
      Section 8 of the Plan that may be subject to certain terms, conditions, and
      restrictions.

     

    “Restricted
      Stock Unit” means the right granted to a Participant pursuant
      to Section 9 of the Plan to receive shares of Common Stock (or the
      equivalent value in cash or other property if the Committee so provides) in
      the
      future that may be subject to certain terms, conditions, and
      restrictions.

     

    “Service
      Provider” means an employee, officer, director or consultant of the Company or
      any of its Affiliates.

     

    “Stock
      Appreciation Right” or “SAR” means a right to acquire cash or shares of Common
      Stock granted in accordance with Section 7 of the Plan having a value equal
      to the difference between the Fair Market Value on the date of exercise over
      the
      exercise price set forth in the Grant Agreement multiplied by the number of
      shares of Common Stock with respect to which the SAR is being
      exercised.

     

    “Subsidiary”
      means any subsidiary corporation as defined in Section 424(f) of the
      Code.

     

    “Substitute
      Awards” means Awards granted by the Company in assumption of, or in substitute
      or exchange for, Awards previously granted, or the right or obligation to make
      future Awards, by a company acquired by the Company or any Subsidiary or with
      which the Company or any Subsidiary combines.

     

    “Termination
      Date” means (i) in the case of an employee, the date that the Committee
      determines that the employee-employer relationship between the Company or
      Affiliate and such person ceased for any reason, (ii) in the case of a
      consultant or non-employee officer, the date that the Committee determines
      that
      the service relationship between the Company or Affiliate and such person ceased
      for any reason, and (iii) in the case of a director, the date that the
      Committee determines that such person’s service on the Board ceased for any
      reason.

     

    3.
      Administration

     

    The
      Plan
      shall be administered by the Committee. Subject to and consistent with the
      provisions of the Plan, the Committee shall have the authority and discretion
      to: (i) determine which eligible employees, officers, directors, and
      consultants will receive Awards, (ii) determine the number of shares of
      Common Stock, cash, or other consideration to be covered by each Award,
      (iii) determine the terms and conditions of any Award (including Fair
      Market Value, the exercise price, the vesting schedule, the term of the Award,
      and the period following termination from employment or service during which
      an
      Award may be exercised), (iv) approve forms of Award agreements and other
      documentation for use under the Plan, (v) adopt, alter, and repeal
      administrative rules, guidelines, and practices governing the operation of
      the
      Plan and the Committee, (vi) interpret the provisions of the Plan and any
      Award documentation and remedy any ambiguities, omissions, or inconsistencies
      therein, (vii) to modify or amend Awards, or grant waivers of Plan or Award
      conditions, and (viii) make all other determinations necessary or advisable
      for the administration of the Plan. A majority of the members of the Committee
      shall constitute a quorum. The Committee’s decisions, determinations, and
      interpretations shall be final and binding on all persons having an interest
      in
      any Award. To the extent permitted by Applicable Law, the Committee may delegate
      to one or more executive officers of the Company the power to make Awards to
      Participants who are not Reporting Persons and all determinations under the
      Plan
      with respect thereto, provided that the Committee 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    shall
      fix
      the maximum amount of such Awards for all such Participants and a maximum for
      any one Participant, and such other features of the Awards as required by
      Applicable Law.

     

    4.
      Eligibility

     

    Incentive
      Stock Options may be granted only to employees (including officers and directors
      who are also employees) of the Company or a Subsidiary. All other Awards may
      be
      granted to employees, officers, directors, and consultants of the Company or
      any
      Affiliate.

     

    5.
      Stock
      Available for Awards

     

    (a)
      Amount.  
      Subject to adjustment under Section 5(c), the aggregate number of shares of
      Common Stock that may be issued pursuant to Awards granted under the Plan shall
      be 4,000,000 shares. Subject to adjustment under Section 5(c), up to
      4,000,000 shares of Common Stock may be issued upon exercise of Incentive Stock
      Options granted under the Plan. Shares issued under the Plan may consist in
      whole or in part of authorized but unissued shares, or treasury shares, or
      shares purchased on the open market. At all times the Company will reserve
      and
      keep available a sufficient number of shares to satisfy the number of shares
      available for issuance under the Plan.

     

    (b)  Share
      Counting.  
      If an Award granted under the Plan is canceled, terminates, expires, is
      forfeited, lapses, or is settled in cash, then the shares subject to such Award
      (to the extent of such cancellation, termination, expiration, forfeiture, lapse,
      or settlement) shall again be available for issuance pursuant to Awards granted
      under the Plan. For purposes of Section 5(a), any shares granted as Options
      or Stock Appreciation Rights under the Plan shall be counted against this limit
      as one share for every share subject to the Award. Any shares granted as Awards
      other than Options or Stock Appreciation Rights shall be counted against the
      limit set forth in Section 5(a) as 1.5 shares for every one share
      subject to the Award. Any shares tendered in payment of an Option’s exercise
      price (whether by attestation or actual delivery), any shares tendered or
      withheld to satisfy a tax withholding on an Award, and any shares repurchased
      by
      the Company using Option proceeds shall not be added back to, replenish, or
      increase the aggregate Plan share limit set forth in
      Section 5(a).

     

    (c) 
      Adjustment.  
      In the event that the Committee determines that any stock dividend,
      extraordinary cash dividend, recapitalization, reorganization, merger,
      consolidation, split-up, spin-off, combination, exchange of shares, or other
      transaction affects the Common Stock such that an adjustment is required in
      order to preserve the benefits intended to be provided by the Plan, then the
      Committee (subject in the case of Incentive Stock Options to any limitation
      required under the Code) shall equitably adjust any or all of (i) the
      number and class of shares that may be issued in respect of Awards under the
      Plan, (ii) the number and class of shares subject to outstanding Awards,
      (iii) the number and class of shares subject to the limit on individual
      grants under Section 5(d) of the Plan, and (iv) the exercise
      price with respect to any of the foregoing, and if considered appropriate,
      the
      Committee may make provision for a cash payment with respect to an outstanding
      Award, provided that the number of shares subject to any Award shall always
      be a
      whole number.

     

    (d)
      Limit on Individual Grants.  
      The
      maximum number of shares of Common Stock subject to all Awards that may be
      granted under this Plan to any Participant in the aggregate in any fiscal
      year of the Company shall not exceed 500,000 shares, subject to adjustment
      under
      Section 5(b). Notwithstanding the foregoing, during the fiscal year in
      which a Participant first becomes an employee of the Company or an Affiliate,
      the Participant may be granted Awards covering an additional 500,000 shares
      of
      Common Stock, subject to adjustment under Section 5(b). With respect to any
      Award settled in cash that is intended to satisfy the requirements for
“performance-based compensation” (within the meaning of
      Section 162(m)(4)(C) of the Code), no more than $2,500,000 may be paid
      to any one individual with respect to each year of a Performance
      Period.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    6.
      Stock
      Options

     

    (a)
      Grant of Options.  
      Subject to the provisions of the Plan, the Committee may grant Incentive Stock
      Options or Non-Qualified Stock Options to a Participant.

     

    (b)
      Terms and Conditions.  
      The Committee shall determine the number of shares of Common Stock subject
      to
      each Option and the exercise price therefor, which shall not be less than 100%
      of the Fair Market Value of the Common Stock on the Grant Date. Each Option
      shall be exercisable at such times and subject to such terms and conditions
      as
      the Committee may specify in the Grant Agreement or thereafter; provided that
      (i) no Option shall be exercisable after the expiration of ten years
      from the Option’s Grant Date, and (ii) no Option may be granted with a
      reload feature which provides for an automatic grant of additional or
      replacement options upon the exercise of an Option. A Participant may exercise
      an Option by following such procedures as the Committee or its designees may
      specify from time to time. The Committee may impose such conditions with respect
      to the exercise of Options, including conditions relating to Applicable Laws,
      as
      it considers necessary or advisable.

     

    (c) 
      Payment.  
      No shares shall be delivered pursuant to any exercise of an Option until payment
      in full of the exercise price therefor is received by the Company. Except as
      otherwise provided by the Committee, such payment may be made in whole or in
      part in or pursuant to any of the following methods:  (i) cash,
      (ii) by actual delivery or attestation of ownership of shares of Common
      Stock owned by the Participant, including vested Restricted Stock, (iii) by
      retaining shares of Common Stock otherwise issuable pursuant to the Option,
      (iv) for consideration received by the Company under a broker-assisted
      cashless exercise program acceptable to the Company, or (v) for such other
      lawful consideration as the Committee may determine.

     

    (d) 
      Exercise Period.   When
      a
      Participant’s status as a Service Provider terminates, the Participant’s Option
      may be exercised within the period of time specified in the Grant Agreement
      to
      the extent that the Option is vested on the Participant’s Termination Date. In
      the absence of a specific period of time set forth in the Grant Agreement,
      an
      Option shall remain exercisable for three (3) months following the date the
      Participant ceases to be a Service Provider, but in no event shall the Option
      be
      exercisable after the expiration of the term of such Option. If a Participant’s
      status as a Service Provider terminates from death or Disability or the
      Participant dies within three (3) months after his Termination Date, then
      (unless provided otherwise in the Grant Agreement) the Option shall remain
      exercisable for twelve (12) months following the date the Participant ceases
      to
      be a Service Provider, but in no event shall the Option be exercisable after
      the
      expiration of the term of such Option. In no event may the Committee provide
      in
      a Grant Agreement that the period of time for exercising an Option following
      a
      Participant’s Termination Date shall exceed three (3) years.

     

    (e) 
      Incentive
      Stock Option Rules.  
      In
      addition to the limitations and conditions that apply generally to Options,
      the
      following provisions shall apply to any Incentive Stock Option. The Committee
      may grant Incentive Stock Options only to persons who are employees of the
      Company or a Subsidiary as of the Grant Date. The aggregate Fair Market Value
      (determined as of the Grant Date) of all shares with respect to which Incentive
      Stock Options are exercisable for the first time by a Participant during any
      calendar year (under the Plan or any other incentive stock option plan of the
      Company or any Subsidiary) shall not exceed $100,000. If the Fair Market Value
      of shares on the Grant Date with respect to which Incentive Stock Options are
      exercisable for the first time by a Participant during any calendar year exceeds
      $100,000, the Options for the first $100,000 worth of shares to become
      exercisable in that calendar year will be Incentive Stock Options, and the
      Options for the shares with a Fair Market Value in excess of $100,000 that
      become exercisable in that calendar year will be Non-Qualified Stock Options.
      No
      Incentive Stock Option shall be granted to any individual who, at the Grant
      Date, owns stock possessing more than ten percent (10%) of the total combined
      voting power of all classes of stock of the Company or any Subsidiary unless
      the
      exercise price per share of such Option is at least 110% of the Fair Market
      Value per share at the Grant Date and the Option expires no later than five
      (5) years after the Grant Date. 

     

    The
      Company may require that any certificate representing shares acquired through
      exercise of an Incentive Stock Option bear a restrictive legend until such
      time
      as the shares represented thereby are no longer subject to the possibility
      of a
      Disqualifying Disposition, as defined herein. For purposes hereof, a
      Disqualifying Disposition means any sale or other disposition by a Participant
      of any shares acquired 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    pursuant
      to the exercise of an Incentive Stock Option on or before the later of
      (i) the date two (2) years after the Grant Date, and (ii) the
      date one year after the exercise of the Incentive Stock Option. 

     

    7.
      Stock
      Appreciation Rights

     

    (a)
      Grant of SARs.  
      Subject to the provisions of the Plan, the Committee may grant SARs to a
      Participant in tandem with an Option (at or after the award of the Option),
      or
      alone and unrelated to an Option. SARs granted in tandem with an Option shall
      terminate to the extent that the related Option is exercised, and the related
      Option shall terminate to the extent that the tandem SARs are
      exercised.

     

    (b)
      Terms and Conditions.  
      The Committee shall determine the number of shares of Common Stock subject
      to
      each SAR and the exercise price therefor. A SAR granted in tandem with an Option
      shall have an exercise price not less than the exercise price of the related
      Option. A SAR granted alone and unrelated to an Option may not have an exercise
      price less than 100% of the Fair Market Value of the Common Stock on of the
      Grant Date. Each SAR shall be exercisable at such times and subject to such
      terms and conditions as the Committee may specify in the Grant Agreement or
      thereafter; provided that no SAR shall be exercisable after the expiration
      of
      ten years from the SAR’s Grant Date. A Participant may exercise a SAR by
      following such procedures as the Committee or its designees may specify from
      time to time. The Committee may impose such conditions with respect to the
      exercise of SARs, including conditions relating to Applicable Laws, as it
      considers necessary or advisable.

     

    (c) 
      Exercise Period.   When
      a
      Participant’s status as a Service Provider terminates, the Participant’s SAR may
      be exercised within the period of time specified in the Grant Agreement to
      the
      extent that the SAR is vested on the Participant’s Termination Date. In the
      absence of a specific period of time set forth in the Grant Agreement, a SAR
      shall remain exercisable for three (3) months following the date the
      Participant ceases to be a Service Provider, but in no event shall the SAR
      be
      exercisable after the expiration of the term of such SAR. If a Participant’s
      status as a Service Provider terminates from death or Disability or the
      Participant dies within three (3) months after his Termination Date, then
      (unless provided otherwise in the Grant Agreement) the SAR shall remain
      exercisable for twelve (12) months following the date the Participant ceases
      to
      be a Service Provider, but in no event shall the SAR be exercisable after the
      expiration of the term of such SAR. In no event may the Committee provide in
      the
      Grant Agreement that the period of time for exercising a SAR following a
      Participant’s Termination Date shall exceed three (3) years.

     

    8.
      Restricted
      Stock

     

    (a)
      Grant of Restricted Stock.  
      Subject to the provisions of the Plan, the Committee may grant Restricted Stock
      to a Participant.

     

    (b)
      Terms
      and Conditions.  
      The Committee shall determine the number of shares of Common Stock subject
      to
      each Restricted Stock Award and the purchase price (if any) for each share.
      Shares of Restricted Stock may be issued for no cash consideration, or such
      minimum consideration as may be required by Applicable Law. The Committee may
      grant shares of Common Stock subject to such other terms, conditions, and
      restrictions (including forfeiture provisions and conditions relating to
      Applicable Laws) as it considers necessary or advisable.

     

    (c) 
      Restrictions.  
      Shares of Restricted Stock may not be sold, assigned, transferred, pledged
      or
      otherwise encumbered, except as permitted by the Committee, during the
      restricted period. Shares of Restricted Stock shall be evidenced in such manner
      as the Committee may determine, including book-entry registration. Any physical
      certificates issued in respect of shares of Restricted Stock shall be registered
      in the name of the Participant bearing an appropriate legend referring to the
      terms, conditions, and restrictions applicable to such Restricted Stock and
      unless otherwise determined by the Committee, deposited by the Participant,
      together with a stock power endorsed in blank, with the Company or a designated
      custodian or escrow agent. At the expiration of the restricted period, the
      Company shall deliver any such certificates to the Participant or if the
      Participant has died, to the Participant’s Designated Beneficiary.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    9.
      Restricted
      Stock Units

     

    (a) Restricted
      Stock Units.  
      Subject to the provisions of the Plan, the Committee may grant Restricted Stock
      Units to a Participant.

     

    (b)
      Terms
      and Conditions.  
      The Committee shall determine the number of shares of Common Stock subject
      to
      each Restricted Stock Unit Award and the purchase price (if any) for each unit.
      Restricted Stock Units may be issued for no cash consideration, or such minimum
      consideration as may be required by Applicable Law. The Committee may grant
      Restricted Stock Units subject to such other terms, conditions, and restrictions
      (including forfeiture provisions and conditions relating to Applicable Laws)
      as
      it considers necessary or advisable.

     

    (c) 
      Unfunded
      Obligation.  
      A Restricted Stock Unit Award shall constitute an unfunded and unsecured
      obligation of the Company, and shall be settled in shares of Common Stock or
      cash, as determined by the Committee at the time of grant or thereafter. Each
      unit shall represent the equivalent of one share of Common Stock.

     

    10.
      General
      Provisions Applicable to Awards

     

    (a)
      Transferability.  
      Except
      as
      otherwise provided in this Section 10(a), an Award (i) shall not be
      transferable other than as designated by the Participant by will or by the
      laws
      of descent and distribution, and (ii) may be exercised during the
      Participant’s lifetime only by the Participant or by the Participant’s guardian
      or legal representative. In the discretion of the Committee, any Award may
      be
      transferable upon such terms and conditions and to such extent as the Committee
      determines at or after grant, provided that Incentive Stock Options may be
      transferable only to the extent permitted by the Code.

     

    (b)
      Grant Agreement.  
      Each
      Award under the Plan shall be evidenced by a written or electronic grant
      agreement delivered to the Participant specifying the terms and conditions
      thereof and containing such other terms and conditions not inconsistent with
      the
      provisions of the Plan or Applicable Laws as the Committee considers necessary
      or advisable to achieve the purposes of the Plan.

     

    (c) 
      Committee Discretion.  
      Each
      type
      of Award may be made alone, in addition to or in relation to any other Award.
      The terms of each type of Award need not be identical, and the Committee need
      not treat Participants uniformly. In addition to the authority granted to the
      Committee in Section 10(l) to make Awards to Covered Employees which
      qualify as “performance-based compensation” for purposes of
      Section 162(m) of the Code, the Company may grant Awards subject to
      such performance conditions (including performance-based vesting) as it shall
      determine in its discretion. Except as otherwise provided by the Plan or a
      particular Award, any determination with respect to an Award may be made by
      the
      Committee at the time of grant or at any time thereafter.

     

    (d)
      Dividends and Cash Awards.  
      In
      the
      discretion of the Committee, any Award under the Plan may provide the
      Participant with dividends or dividend equivalents payable currently or
      deferred, with or without interest. The Committee may also make cash payments
      under the Plan in lieu of or in addition to an Award. Such Cash Awards may
      be
      made subject to such terms, conditions, and restrictions as the Committee
      considers necessary or advisable. Each dividend payment will be made no later
      than the end of the calendar year in which the dividends are paid to
      shareholders of that class of stock or, if later, the 15th
      day of
      the third month following the date of the dividends are paid to shareholders
      of
      that class of stock.

     

    (e) 
      Termination of Employment or Service.  
      Whether
      military service, government service, or other leave of absence shall constitute
      a termination of employment or service, and whether the vesting of an Award
      shall cease, be suspended, or continue during such  leave of absence, shall
      be determined in each case by the Committee in its discretion. Except as
      otherwise provided by the Committee, a Participant’s employment or service shall
      not be deemed to terminate upon the transfer of employment or service between
      the Company and an Affiliate. Except as otherwise provided by the Committee,
      a
      Participant’s employment or service shall be deemed to terminate, and further
      vesting of any Award shall cease, in the 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    case
      of
      any sale, spin-off, or other disposition of the Participant’s employer or
      substantially all of its assets. To the extent that this
      Section 10(e) or action by the Committee results in an Incentive Stock
      Option being exercised beyond the date that a Participant is deemed to be an
      employee of the Company or a Subsidiary for purposes of Section 424 of the
      Code, the Option shall be deemed to be a Non-Qualified Stock
      Option.

     

    (f) 
      Change in Control.  
      In
      order
      to preserve a Participant’s rights under an Award in the event of a change in
      control of the Company as defined by the Committee (a “Change in Control”), the
      Committee in its discretion may, at the time an Award is made or at any time
      thereafter, take one or more of the following actions: (i) provide for the
      acceleration of any time period relating to the exercise or payment of the
      Award, (ii) provide for payment to the Participant of cash or other
      property with a Fair Market Value equal to the amount that would have been
      received upon the exercise or payment of the Award had the Award been exercised
      or paid upon the Change in Control, (iii) adjust the terms of the Award in
      a manner determined by the Committee to reflect the Change in Control,
      (iv) cause the Award to be assumed, or new rights substituted therefor, by
      another entity, or (v) make such other provision as the Committee may
      consider equitable to Participants and in the best interests of the
      Company.

     

    (g) 
      Loans.  
      The
      Committee may not authorize the making of loans to Participants in connection
      with the grant or exercise of any Award under the Plan.

     

    (h)
      Withholding Taxes.  
      A
      Participant shall pay to the Company, or make provision satisfactory to the
      Committee for payment of, any taxes required by law to be withheld in respect
      of
      Awards under the Plan no later than the date of the event creating the tax
      liability. In the Committee’s discretion, such tax obligations may be paid in
      whole or in part in shares of Common Stock, including shares retained from
      the
      Award creating the tax obligation, valued at their Fair Market Value on the
      date
      of delivery. The Company and its Affiliates may, to the extent permitted by
      Applicable Law, deduct any such tax obligations from any payment of any kind
      otherwise due to the Participant.

     

    (i) 
      Foreign National Awards.  
      Notwithstanding
      anything to the contrary contained in this Plan, Foreign National Awards may
      be
      made to Participants on such terms and conditions different from those specified
      in the Plan as the Committee considers necessary or advisable to achieve the
      purposes of the Plan or to comply with Applicable Law.

     

    (j) 
      Amendment of Award.  
      Except
      as
      provided in Section 10(k), the Committee may amend, modify, or terminate
      any outstanding Award, including substituting therefor another Award of the
      same
      or a different type, changing the date of exercise or realization and converting
      an Incentive Stock Option to a Non-Qualified Stock Option, provided that the
      Participant’s consent to such action shall be required unless (i) the
      Committee determines that the action, taking into account any related action,
      would not materially and adversely affect the Participant, or (ii) the
      action is permitted by the terms of the Plan.

     

    (k)
      No
      Repricing of Options.   Notwithstanding
      anything to the contrary in the Plan, the Company shall not engage in any
      repricing of Options or SARs granted under this Plan without further stockholder
      approval. For this purpose, the term “repricing” shall mean any of the following
      or other action that has the same effect:  (i) lowering the exercise
      price of an Option or a SAR after it is granted, (ii) any other action that
      is treated as a repricing under generally accepted accounting principles, or
      (iii) canceling an Option or a SAR at a time when its exercise price
      exceeds the fair market value of the underlying stock in exchange for another
      Option, SAR, Restricted Stock, or other equity of the Company, unless the
      cancellation and exchange occurs in connection with a merger, acquisition,
      spin-off, or similar corporate transaction (including any adjustment described
      in Section 5(c)).

     

    (l) 
      Code
      Section 162(m) Provisions.  
      If the Committee determines at the time an Award is granted to a Participant
      that such Participant is, or may be as of the end of the tax year for which
      the
      Company would claim a tax deduction in connection with such Award, a Covered
      Employee, then the Committee may provide that the Participant’s right to receive
      cash, shares, or other property pursuant to such Award shall be subject to
      the
      satisfaction of Performance Goals during a Performance Period. Prior to the
      payment of any Award subject to this Section 10(l), the Committee shall
      certify in writing that the Performance Goals and other material terms
      applicable to such Award were satisfied. Notwithstanding the attainment of
      

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Performance
      Goals by a Covered Employee, the Committee shall have the right to reduce (but
      not to increase) the amount payable at a given level of performance to take
      into
      account additional factors that the Committee may deem relevant. The Committee
      shall have the power to impose such other restrictions on Awards subject to
      this
      Section 10(l) as it may deem necessary or appropriate to ensure that
      such Awards satisfy all requirements for “performance-based compensation” within
      the meaning of Section 162(m) of the Code.

     

    (m) Minimum
      Vesting Requirements for Full Value Awards.  
Each
      Restricted Stock or Restricted Stock Unit Award granted under the Plan (each,
      a
“Full Value Award”) shall vest in accordance with a schedule that does not
      permit such Full Value Award to vest in full prior to the third anniversary
      of
      the Grant Date of the Award. This minimum vesting requirement shall not,
      however, preclude the Committee from exercising its discretion to
      (i) accelerate the vesting of any Full Value Award upon retirement,
      termination of employment by the Company, death or Disability,
      (ii) accelerate the vesting of any Full Value Award in accordance with
      Section 10(f), (iii) establish a shorter vesting schedule for any Full
      Value Award granted to a consultant, director, or newly-hired employee,
      (iv) establish a shorter vesting schedule for any Full Value Award that is
      granted in exchange for or in lieu of the right to receive the payment of an
      equivalent amount of salary, bonus, directors’ fees, or other cash compensation,
      (v) establish a shorter performance-based vesting schedule in accordance
      with Section 10(c) or Section 10(l) (but in each case of not
      less than one year), or (vi) vest up to 1,000 shares per year for each
      Participant; provided, however, the total number of Full Value Awards granted
      under clauses (iii) and (vi) above shall not exceed 300,000 shares in
      the aggregate (subject to adjustment in accordance with
      Section 5(c)).

     

    (n)
      Limitation Following a Hardship Distribution.  
To
      the
      extent required to comply with Treasury Regulation
      Section 1.401(k)-1(d)(2)(iv)(B)(4), or any amendment or successor thereto,
      a Participant’s “elective and employee contributions” (within the meaning of
      such Treasury Regulation) under the Plan shall be suspended for a period of
      twelve months following such Participant’s receipt of a hardship distribution
      made in reliance on such Treasury Regulation from any plan containing a cash
      or
      deferred arrangement under Section 401(k) of the Code maintained by
      the Company or a related party within the provisions of Section 414 of the
      Code.

     

    11.
      Miscellaneous

     

    (a)
      No Right To Employment.  
      No
      person
      shall have any claim or right to be granted an Award. Neither the Plan nor
      any
      Award hereunder shall be deemed to give any employee the right to continued
      employment or service or to limit the right of the Company to discharge any
      Participant at any time.

     

    (b)
      No Rights As Stockholder.  
      Subject
      to the provisions of the applicable Award, no Participant or Designated
      Beneficiary shall have any rights as a stockholder with respect to any shares
      of
      Common Stock to be distributed under the Plan until he or she becomes the holder
      thereof. A Participant to whom Common Stock is awarded shall be considered
      the
      holder of the Stock at the time of the Award except as otherwise provided in
      the
      Grant Agreement.

     

    (c)
      Compliance with Code Section 409A. 
      No Award shall provide for the deferral of compensation that does not
      comply with Section 409A of the Code, unless the Committee, at the time of
      grant, specifically provides that the Award is not intended to comply with
      Section 409A of the Code. The Company shall have no liability to a
      Participant if an Award that is intended to be exempt from, or compliant with,
      Section 409A is not so exempt or compliant.

     

    (d) 
      Effective Date.  
      Subject
      to the approval of the stockholders of the Company of an increase in authorized
      common stock above 90,000,000 shares and subject to the approval of the
      stockholders of the Company or this Plan, the Plan shall be effective on
      June 15, 2006.

     

    (e)
      Amendment and Term of Plan.  
      The
      Board
      may amend, suspend, or terminate the Plan or any portion thereof at any time,
      subject to such stockholder approval as the Board determines to be necessary
      or
      advisable to comply with any tax or regulatory requirement, provided, however,
      that the Board may not without stockholder approval materially amend the Plan
      (within the meaning of applicable exchange listing 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    requirements)
      to materially increase the number of shares of Common Stock that may be issued
      under the Plan, materially increase benefits to Participants, materially expand
      the class of Participants eligible to participate in the Plan, or expand the
      types of Awards provided under the Plan. Unless terminated earlier by the Board,
      or extended by subsequent approval of the Company’s stockholders, the term of
      the Plan shall expire on June 15, 2016, and no further Awards shall be made
      thereafter. The termination of the Plan on such date shall not affect the
      validity of any Award outstanding on the date of termination.

     

    (f) 
      Governing Law.  
      The
      provisions of the Plan shall be governed by and interpreted in accordance with
      the laws of Massachusetts.

     

    (g)  
      Indemnification.  
      Neither
      the Board nor the Committee, nor any members of either, nor any employees or
      officers of the Company or any Affiliate, shall be liable for any act, omission,
      interpretation, construction, or determination made in good faith in connection
      with their responsibilities under the Plan, and the Company hereby agrees to
      indemnify the members of the Board, the members of the Committee, and the
      employees and officers of the Company or any Affiliate administering the Plan,
      in respect of any claim, loss, damage, or expense (including reasonable fees
      of
      legal counsel) arising from any such act, omission, interpretation,
      construction, or determination to the fullest extent permitted by Applicable
      Law.

     

    This
      Plan was approved by the Board of Directors on March 22, 2006.

     

    This
      Plan was approved by the Company’s stockholders on
      ____________.www.EXFILE.com          888.775-4789            MATRITECH, INC.  FORM 8-K

    EXHIBIT
      10.2

    MATRITECH,
      INC.

    
      INCENTIVE
        STOCK OPTION AGREEMENT

       

    

    Matritech,
      Inc. (the “Company”)
      hereby
      grants the following stock option pursuant to its 2002 Stock Option and
      Incentive Plan. The terms and conditions attached hereto are also a part
      hereof.

    

    
      	
              Name
                of optionee (the “Optionee”):

            	 
	 	 
	
              Date
                of this option grant:

            	 
	 	 
	
              Number
                of shares of the Company’s Common Stock subject to this option
                (“Shares”):

            	 
	 	 
	
              Option
                exercise price per share:

            	 
	 	 
	
              Scheduled
                expiration date:

            	 
	 	 
	
              Vesting
                Start Date: two year anniversary of grant

            	 

    

    

    Vesting
      Schedule: 

    
      	 	 
	
              Two years
                from Grant Date (50% of Shares):

            	 
	 	 
	
              Three years
                from Grant Date (Additional 25% of Shares):

            	 
	 	 
	
              Four
                years from Grant Date (Final 25% of Shares):

            	 
	 	 
	
              All
                vesting is dependent on the continuation of a Business Relationship
                with
                the Company, as provided herein.

            
	
              Payment
                alternatives (specify any or all of Section 7(a)(i) though
                (iii)):

            	
              Section
                7(a) (i) through (iii)

            

    

    

    This
      option satisfies in full all commitments that the Company has to the Optionee
      with respect to the issuance of stock, stock options or other equity
      securities.

     

     

      
        

      

    

     

    
      	 	
               

              Matritech,
                Inc.

            
	
              ____________________________________

            	 
	
              Signature
                of Optionee

            	
              By:____________________________

            
	
              ____________________________________

            	
              Name
                of Officer:

            
	
              Street
                Address

            	
              Title:

            
	
              ____________________________________

            	 
	
              City/State/Zip
                Code

            	 

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Matritech,
      Inc.

     

    
      INCENTIVE
        STOCK OPTION AGREEMENT -- INCORPORATED TERMS AND CONDITIONS

       

    

    1. 
Grant
      Under Plan.
      This
      option is granted pursuant to and is governed by the Company’s 2002 Stock Option
      and Incentive Plan (the “Plan”)
      and,
      unless the context otherwise requires, terms used herein shall have the same
      meaning as in the Plan.

    

    2. 
Grant
      as Incentive Stock Option.
      This
      option is intended to qualify as an incentive stock option under
      Section 422 of the Internal Revenue Code of 1986, as amended, and the
      regulations thereunder (the “Code”).

     

    3. 
Vesting
      of Option.
      

     

          Vesting
      if Business
      Relationship Continues.
      If the
      Optionee has continuously maintained a Business Relationship (as defined below)
      with the Company through the dates listed on the vesting schedule set forth
      on
      the cover page hereof, the Optionee may exercise this option for the number
      of
      shares of Common Stock set opposite the applicable vesting date. “Business
      Relationship”
means
      service to the Company or its successor in the capacity of an employee, officer,
      director or consultant. Notwithstanding the foregoing, the Board may, in its
      discretion, accelerate the date that any installment of this option becomes
      exercisable. The foregoing rights are cumulative and may be exercised only
      before the date which is seven years from the date of this option grant (the
      scheduled expiration date set forth on the cover page hereof).

    

    4. 
Termination
      of Business Relationship.
      

    

     
      (a) Termination.
      If the
      Optionee’s Business Relationship with the Company ceases, voluntarily or
      involuntarily, with or without cause, no further installments of this option
      shall become exercisable, and this option shall expire (may no longer be
      exercised) after the passage of three months from the date of termination,
      but
      in no event later than the scheduled expiration date set forth on the cover
      page
      hereof. Any determination under this agreement as to the status of a Business
      Relationship or other matters referred to above shall be made in good faith
      by
      the Board of Directors of the Company. 

    

     
      (b)  Employment
      Status.
      For
      purposes hereof, with respect to employees of the Company, employment shall
      not
      be considered as having terminated during any leave
      of
      absence if such leave of absence has been approved in writing by the Company
      and
      if such written approval contractually obligates the Company to continue the
      employment of the Optionee after the approved period of absence; in the event
      of
      such an approved leave of absence, vesting of this option shall be suspended
      (and the period of the leave of absence shall be added to all vesting dates)
      unless otherwise provided in the Company’s written approval of the leave of
      absence. For purposes hereof, a termination of employment followed by another
      Business Relationship shall be deemed a termination of the Business Relationship
      with all vesting to cease unless the Company enters into a 

    
      
        
        

      

      
        
        

        
          

        

      

      
        -2-

      

    

     

     

    written
      agreement related to such other Business Relationship in which it is
      specifically stated that there is no termination of the Business Relationship
      under this agreement. This option shall not be affected by any change of
      employment within or among the Company and its Subsidiaries so long as the
      Optionee continuously remains an employee of the Company or any
      Subsidiary.

    

    5. 
Death;
      Disability.
      

    

     
      (a) Death.
      Upon
      the death of the Optionee while the Optionee is maintaining a Business
      Relationship with the Company, this option may be exercised, to the extent
      of
      the number of shares with respect to which the Optionee could have exercised
      it
      immediately prior to the Optionee’s death, by the Optionee’s estate, personal
      representative or beneficiary to whom this option has been transferred pursuant
      to Section 10, only at any time within 180 days after the date of
      death, but not later than the scheduled expiration date set forth on the cover
      page hereof. 

    

     
      (b) Disability.
      If the
      Optionee ceases to maintain a Business Relationship with the Company by reason
      of his or her disability, this option may be exercised, to the extent of the
      number of shares with respect to which the Optionee could have exercised it
      immediately prior to the termination of the Optionee’s Business Relationship
      with the Company, only at any time within 180 days after such termination,
      but not later than the scheduled expiration date set forth on the cover page
      hereof. For purposes hereof, “disability”
means
      “permanent
      and total disability”
as
      defined in Section 22(e)(3) of the Code.

    

     
      (c) Change
      of Control. In
      the
      event of an Acquisition (as defined herein) prior to the full vesting of this
      option, the vesting of the option shall be accelerated and the Optionee shall
      have the right to exercise the option in full, at the moment immediately
      preceding the consummation of the Acquisition. For purposes of this Plan, an
      “Acquisition” shall mean: (x) the sale of the Company by merger in which the
      shareholders of the Company in their capacity as such no longer own a majority
      of the outstanding equity securities of the Company (or its successor); or
      (y)
      any sale of all or substantially all of the assets or capital stock of the
      Company (other than in a spin-off or similar transaction) or (z) any other
      acquisition of the business of the Company, as determined by the
      Board.

    

    6. 
Partial
      Exercise.
      This
      option may be exercised in part at any time and from time to time within the
      above limits, except that this option may not be exercised for a fraction of
      a
      share. 

    

    7.  Payment
      of Exercise Price.
      

    

       
      (a)  Payment
      Options.
      The
      exercise price shall be paid by one or any combination of the following forms
      of
      payment that are applicable to this option, as indicated on the cover page
      hereof: 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -3-

      

    

     

     

    
      	 	
              (i)

            	
              by
                cash or check payable to the order of the Company;
                or

            

    

    

    
      	 	
              (ii)

            	
              if
                the Common Stock is then traded on a national securities exchange
                or on
                the Nasdaq Stock Market (or successor trading system), delivery of
                an
                irrevocable and unconditional undertaking, satisfactory in form and
                substance to the Company, by a creditworthy broker to deliver promptly
                to
                the Company sufficient funds to pay the exercise price, or delivery
                by the
                Optionee to the Company of a copy of irrevocable and unconditional
                instructions, satisfactory in form and substance to the Company,
                to a
                creditworthy broker to deliver promptly to the Company cash or a
                check
                sufficient to pay the exercise price;
                or

            

    

    

    
      	 	
              (iii)

            	
              subject
                to Section 7(b) below, if the Common Stock is then traded on a
                national securities exchange or on the Nasdaq Stock Market (or successor
                trading system), by delivery of shares of Common Stock having a fair
                market value equal as of the date of exercise to the option
                price.

            

    

    

       
      In the case of (iii) above, fair market value as of the date of exercise shall
      be determined as of the last business day for which such prices or quotes are
      available prior to the date of exercise and shall mean (i) the last
      reported sale price (on that date) of the Common Stock on the principal national
      securities exchange on which the Common Stock is traded, if the Common Stock
      is
      then traded on a national securities exchange; or (ii) the last reported
      sale price (on that date) of the Common Stock on the Nasdaq Stock Market (or
      successor trading system), if the Common Stock is not then traded on a national
      securities exchange. 

    

       
      (b) Limitations
      on Payment by Delivery of Common Stock.
      If
      Section 7(a)(iii) is applicable, and if the Optionee delivers Common Stock
      held
      by the Optionee (“Old
      Stock”)
      to the
      Company in full or partial payment of the exercise price and the Old Stock
      so
      delivered is subject to restrictions or limitations imposed by agreement between
      the Optionee and the Company, an equivalent number of Shares shall be subject
      to
      all restrictions and limitations applicable to the Old Stock to the extent
      that
      the Optionee paid for the Shares by delivery of Old Stock, in addition to any
      restrictions or limitations imposed by this agreement. Notwithstanding the
      foregoing, the Optionee may not pay any part of the exercise price hereof by
      transferring Common Stock to the Company unless such Common Stock has been
      owned
      by the Optionee free of any substantial risk of forfeiture for at least
      six months.

    

    8.  Securities
      Laws Restrictions on Resale.
      Until
      registered under the Securities Act of 1933, as amended, or any successor
      statute (the “Securities
      Act”),
      the
      Shares will be illiquid and will be deemed to be “restricted securities” for
      purposes of the Securities Act. Accordingly, such shares must be sold in
      compliance with the registration requirements of the Securities Act or an
      exemption therefrom and may need to be held indefinitely. Unless the Shares
      have
      been registered under the Securities Act, each certificate evidencing any of
      the
      Shares shall bear a restrictive legend specified by the Company. 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        -4-

      

    

     

     

            
      9. 
Method
      of Exercising Option.
      Subject
      to the terms and conditions of this agreement, this option may be exercised
      by
      written notice to the Company at its principal executive office, or to such
      transfer agent as the Company shall designate. Such notice shall state the
      election to exercise this option and the number of Shares for which it is being
      exercised and shall be signed by the person or persons so exercising this
      option. Such notice shall be accompanied by payment of the full purchase price
      of such shares, and the Company shall deliver a certificate or certificates
      representing such shares as soon as practicable after the notice shall be
      received. Such certificate or certificates shall be registered in the name
      of
      the person or persons so exercising this option (or, if this option shall be
      exercised by the Optionee and if the Optionee shall so request in the notice
      exercising this option, shall be registered in the name of the Optionee and
      another person jointly, with right of survivorship). In the event this option
      shall be exercised, pursuant to Section 5 hereof, by any person or persons
      other than the Optionee, such notice shall be accompanied by appropriate proof
      of the right of such person or persons to exercise this option. 

    

    10. 
Option
      Not Transferable.
      This
      option is not transferable or assignable except by will or by the laws of
      descent and distribution. During the Optionee’s lifetime only the Optionee can
      exercise this option. 

    

    11. 
No
      Obligation to Exercise Option.
      The
      grant and acceptance of this option imposes no obligation on the Optionee to
      exercise it.

    

    12. 
No
      Obligation to Continue Business Relationship.
      Neither
      the Plan, this agreement, nor the grant of this option imposes any obligation
      on
      the Company to continue the Optionee in employment or other Business
      Relationship.

    

    13. 
No
      Severance or Termination Rights.
      With
      respect to employees of the Company, awards under this Plan do not form part
      of
      an Optionee’s contract of employment and do not entitle an Optionee to any
      benefit other than that granted under this Plan. Any benefits granted under
      this
      Plan are not part of an Optionee’s ordinary salary, and shall not be considered
      as part of such salary for pension purposes or in the event of severance,
      redundancy or resignation. If Optionee’s employment is terminated for whatever
      reason the Optionee agrees that he or she shall not be entitled by way of
      damages for breach of contract, dismissal or compensation for loss of office
      or
      otherwise to any sum, shares or other benefits to compensate for the loss or
      diminution in value of any actual or prospective right, benefits or expectation
      under or in relation to the Plan.

    

    14. 
Adjustments.
      Except
      as is expressly provided in the Plan with respect to certain changes in the
      capitalization of the Company, no adjustment shall be made for dividends or
      similar rights for which the record date is prior to such date of
      exercise.

    

    15. 
Withholding
      Taxes.
      If the
      Company in its discretion determines that it is obligated to withhold any tax
      in
      connection with the grant, vesting or exercise of this option, or in connection
      with the transfer of, or the lapse of restrictions on, any Common Stock or
      other
      property acquired pursuant to this option, the Optionee hereby agrees that
      the
      Company may withhold from the Optionee’s wages or other remuneration the
      appropriate amount of tax. At the 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -5-

      

    

     

     

    discretion
      of the Company, the amount required to be withheld may be withheld in cash
      from
      such wages or other remuneration or in kind from the Common Stock or other
      property otherwise deliverable to the Optionee on exercise of this option.
      The
      Optionee further agrees that, if the Company does not withhold an amount from
      the Optionee’s wages or other remuneration sufficient to satisfy the withholding
      obligation of the Company, the Optionee will make reimbursement on demand,
      in
      cash, for the amount underwithheld.

    

    16. 
Early
      Disposition.
      The
      Optionee agrees to notify the Company in writing immediately after the Optionee
      transfers any Shares, if such transfer occurs on or before the later of
      (a) the date that is two years after the date of this agreement or
      (b) the date that is one year after the date on which the Optionee acquired
      such Shares. The Optionee also agrees to provide the Company with any
      information concerning any such transfer required by the Company for tax
      purposes. 

    

    17. 
Provision
      of Documentation to Optionee.
      By
      signing this agreement the Optionee acknowledges receipt of a copy of this
      agreement and a copy of the Plan.

    

    18. 
Transfer
      of Data Waiver.
      By
      signing this agreement the Optionee acknowledges that in order to perform its
      requirements under the Plan, the Company may process personal data and/or
      sensitive personal data about the Optionee. Such data includes, but is not
      limited to, the information provided in this grant package and any changes
      thereto, other appropriate personal and financial data about the Optionee,
      and
      information about the Optionee’s participation in the Plan and shares exercised
      under the Plan from time to time. The Optionee hereby gives explicit consent
      to
      the Company to process any such personal data and/or sensitive personal data.
      The Optionee also gives explicit consent to the Company to transfer any such
      personal data and/or sensitive personal data outside the country in which the
      Optionee works and to the United States. The legal persons for whom the personal
      data is intended include the Company and any of its subsidiaries, the outside
      plan administrator as selected by the Company from time to time, and any other
      person that the Company may find in its administration of the Plan appropriate.
      By signing this agreement, the Optionee acknowledges that he has been informed
      of his right of access and correction to personal data by contacting the local
      Human Resources Representative. Optionee further acknowledges that the transfer
      of the information outlined here is important to the administration of the
      Plan
      and failure to consent to the transmission of such information may limit or
      prohibit participation under the Plan.

    

    19. 
Miscellaneous.

    

       
      (a) Notices.
      All
      notices hereunder shall be in writing and shall be deemed given when sent by
      mail, if to the Optionee, to the address set forth below or at the address
      shown
      on the records of the Company, and if to the Company, to the Company’s principal
      executive offices, attention of the Corporate Secretary.

    

      
      (b) Entire
      Agreement; Modification.
      This
      agreement constitutes the entire agreement between the parties relative to
      the
      subject matter hereof, and supersedes all proposals, written or oral, and all
      other communications between the parties relating to 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        -6-

      

    

     

     

    the
      subject matter of this agreement. This agreement may be modified, amended or
      rescinded only by a written agreement executed by both parties. 

    

       
      (c)  Fractional
      Shares.
      If this
      option becomes exercisable for a fraction of a share because of the adjustment
      provisions contained in the Plan, such fraction shall be rounded
      down.

    

       
      (d) Issuances
      of Securities; Changes in Capital Structure.
      Except
      as expressly provided herein or in the Plan, no issuance by the Company of
      shares of stock of any class, or securities convertible into shares of stock
      of
      any class, shall affect, and no adjustment by reason thereof shall be made
      with
      respect to, the number or price of shares subject to this option. No adjustments
      need be made for dividends paid in cash or in property other than securities
      of
      the Company. If there shall be any change in the Common Stock of the Company
      through merger, consolidation, reorganization, recapitalization, stock dividend,
      stock split, combination or exchange of shares, spin-off, split-up or other
      similar change in capitalization or event, the restrictions contained in this
      agreement shall apply with equal force to additional and/or substitute
      securities, if any, received by the Optionee in exchange for, or by virtue
      of
      his or her ownership of, Shares, except as otherwise determined by the
      Board.

    

       
      (e) Severability.
      The
      invalidity, illegality or unenforceability of any provision of this agreement
      shall in no way affect the validity, legality or enforceability of any other
      provision. 

    

       
      (f) Successors
      and Assigns.
      This
      agreement shall be binding upon and inure to the benefit of the parties hereto
      and their respective successors and assigns, subject to the limitations set
      forth in Section 10 hereof.

    

       
      (g) Governing
      Law.
      This
      agreement shall be governed by and interpreted in accordance with the laws
      of
      the State of Delaware, without giving effect to the principles of the conflicts
      of laws thereof.

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