Document:

Exhibit 10.44

 

Mark P. Murphy

21295 Clear Haven Dr.

Yorba Linda, CA 92886

                      

Dear Mark:

On behalf of the Board of Directors I am pleased to confirm
an offer of employment as Chief Executive Officer of Pro-Dex Inc. ("the
Company") as an "at-will" employee, serving at the pleasure of the Board
of Directors and in accordance with the Company's Bylaws (and applicable law). 
As Chief Executive Officer, you will perform the duties assigned to you from
time to time by the Board of Directors.  You may also be required to serve as
the CEO and/or director of subsidiaries or other related entities of the
Company with no additional compensation. This position will initially be based
out of our Santa Ana, California office.

Salary

Your official start date will be August 31, 2006 ("the
Starting Date").  Your bi-weekly salary will be $10,769.23 which equals
$280,000 on an annualized basis , increasing annually by the All Urban
Consumers CPI  (applicable local metropolitan area) for the preceding twelve
calendar months effective the first full pay period following each anniversary
of the Starting Date.   

Benefits

For PTO purposes only (and only with respect to this
Agreement), you will be treated as having been employed on a full time basis
for five (5) years as of the Starting Date, and you will be eligible to
participate in benefits including health, dental and life insurance and
optional employee benefits available to all Company employees except
Company-wide employee bonuses or profit sharing plans. 

You will receive reimbursement for ordinary and necessary
business expenses incurred in the ordinary course of business consistent with
the Company's policies applicable to all employees and subject to review by the
Company's audit committee.

Bonuses/incentive compensation

In addition to the foregoing salary and benefits, you will
be eligible for additional compensation as follows if you are still employed by
the Company on a full time basis ("Continuing Employment Status") when the
conditions to earn such bonus are fully satisfied. 

 

2

1.   Annual
Bonus.  An Annual Bonus equal to (i) 0.75% of your annual salary, times
(ii) each one percent (or any portion thereof) increase in pre-tax earnings
(including extraordinary gains and losses) per share for fiscal years ending
after July 1, 2006 over the prior fiscal year.  For example, if pre-tax
earnings per share increased by 18.5% and your salary was $280K at the time,
the Annual Bonus would equal $38,850 (0.75% times $280,000 times 18.5).  The
Annual Bonus shall be payable within ten days after you have signed and the
Company has filed with the SEC the required Chief Executive Officer
certifications, without qualification, for Form 10-KSB (or Form 10-K, as the
case may be ) for the most recent fiscal year.  Such Continuing Employment
Status shall not be required for additional compensation under this "Annual
Bonus" section in the event that during the period (i) following the conclusion
of the Company's fiscal year and  (ii) prior to the Company's filing of Form
10-KSB (or Form 10-K, as the case may be), your employment is terminated by the
Company without "Cause" or you resign for "Good Reason," each as defined
below):; If your employment has been terminated by the Company without Cause
prior to the time that you have signed such certifications, or by you for Good
Reason prior to the time that you have signed such certifications, the Annual
Bonus as set forth in this Section 1 which you have earned shall be payable
within thirty (30) days following the termination of your employment.  If all
such filings are not signed and filed, except as specified above, the bonus
shall not be payable.

The actual Annual Bonus for
fiscal year ending June 30, 2007 shall not exceed $25,000; and shall not exceed
$50,000 for fiscal year ending June 30, 2008.

	
   

2.   Second
Bonus.  A Second Bonus equal to the appreciation of an aggregate of 450,000
shares of the Company's common stock over the closing price of such number of
shares on the day preceding the Starting Date. Entitlement to this second bonus
shall vest at the rate of 33.333% per year commencing with the first
anniversary of the Starting Date (subject to acceleration in certain events as
provided below), and all or any part of each incremental vested portion shall
be exercisable within five years from the date such increment first vested and
payable in cash in the installments described below commencing on the earliest
of (i) 90 days written notice from you to the Company, based on the average
closing price of the Company's common shares, over the ten trading days immediately
preceding receipt of such written 90 day notice outside of any blackout periods
applicable to all insiders, (ii) termination of your employment (except for
termination of your employment by the Company for "Cause" " or resignation by
you without Good Reason), based on the average closing price of the Company's
common shares over the ten trading days immediately preceding the date of
termination, outside of any blackout periods applicable to all insiders ) or
(iii) in case of a Liquidity Event as defined below, based on the price per
share received by the Company's shareholders in the Liquidity Event as
described herein. Payments of this Second Bonus shall be in quarterly
installments equal to 10% of the Company's pretax net income (and with respect
to the final quarterly payment, so much as may remain to be paid), including
extraordinary gains and losses, as reported in the Company's financial
statements contained within Form 10-QSB or Form 10-KSB (as the case may be) for
the preceding quarter, payable each quarter within thirty (30) days following
the determination of such pretax net income; provided, however, that any
payments of this Second Bonus which are earned but remain outstanding as of the
date of your termination/severance of employment shall be paid over a period of
twelve (12) months as set forth under "Termination/Severance," below. The
unpaid portion shall bear no interest and shall become immediately due and
payable upon a Liquidity Event.

 

3

 

This Second Bonus may be replaced
at the Company's sole option on or before February 28, 2007 with a grant of
340,000 restricted shares of Common Stock of the Company in accordance with an
equity incentive compensation plan if such a plan is approved by the Company's
shareholders at the Company's 2006 Annual Shareholders' Meeting (or other such
special shareholders' meeting of the Company) vesting at the rate of 85,000
shares per year commencing January 2, 2007 or the grant date, whichever is
later. Vested shares shall have no restrictions imposed with respect to their
sale or transfer except those required by laws or regulations.  If the
restricted stock grant is pursuant to the Company's general equity incentive
plan for its key employees as approved by the Company's board of directors and
shareholders, then the Company shall on a reasonably expedited basis and
consistent with past practice, file a Registration Statement on Form S-8 with
the Securities and Exchange Commission. 

Acceleration 

In the event of a transaction in which the Company's
shareholders receive cash or marketable securities for their Company shares (a
"Liquidity Event"), the vesting of the unvested restricted shares or
portion of the second bonus will accelerate immediately prior to the Liquidity
Event as follows: 100% of the total grant of restricted shares or second bonus
if the consideration received by Pro-Dex shareholders is $5 per share or
greater; 80% if between $4 and $5; and 60% if between $3 and $4.   All such
price per share amounts in this letter will be proportionately adjusted in the
event of a Company recapitalization such a stock split, stock dividend, reverse
split, or the like.   

Termination/Severance

In the event you are terminated involuntarily by the Company
without "Cause" or resign with "Good Reason" as defined below, the Company
shall pay you your (i) salary up through the date of termination plus (ii)
accrued vacation plus (iii) severance equal to $280,000 and (iv) any Annual
Bonus or Second Bonus earned but not yet paid pursuant to this letter as of the
termination date (the date you are terminated without "Cause" or upon which you
resign with "Good Reason"), each of which shall be paid less applicable
withholding as required by law.  With the exception of the earned amount of
your Annual Bonus (to be paid within thirty (30) days of your termination), the
severance payment referred to above shall be made in equal incremental
payments, consistent with the Company's usual payroll payment periods, over a
period of twelve (12) months immediately following your last day of employment
with the Company. You hereby acknowledge that such severance will be the total
and sole remedy for any claims by you, known or unknown, arising from your
employment with the Company and you will be required prior to the receipt of
such severance payments to execute a written separation agreement with the
Company containing a general release of claims against the Company in form and
content acceptable to both you and the Company and our respective counsel. 
However, the release agreement will not alter your rights under the
indemnification agreement.

 

 

4

 

As used herein, the term termination for "Cause" shall mean
termination due to:

(i) your failure or
inability to perform your duties with the Company or a related entity;

(ii)
your failure to substantially follow and comply with the specific and lawful
directives of the Board or any officer of the Company or a related entity to
whom you report directly;

(iii)The
Board's determination on advice of counsel of your commission of an act of
fraud or dishonesty; your engagement in illegal conduct, gross misconduct or an
act of moral turpitude; or your material violation of any material written
policy, guideline, code, handbook or similar document governing the conduct of
directors, officers or employees of the Company or its related entities; or  

(iv)
a material breach by you of the terms of this letter.

As used herein, the term resignation for "Good Reason" shall
mean your resignation due to:

(i) a reduction in your salary as set
forth herein or failure of the Company to pay any amount owing to you hereunder
when due; or a material reduction in benefits provided to you under the terms
of this Letter;

(ii)
the Company's requiring you to be based full time in any office or location
outside of a sixty (60) mile radius from your current residence in Yorba Linda, California;

(iii)
your being requested by the Board to execute any documents or take any action
in violation of any laws or regulations applicable to the Company, commit an
act of fraud or dishonesty violation of any material written policy, guideline,
code, handbook or similar document governing the conduct of directors, officers
or employees of the Company or its related entities;

(iv) 
a Liquidity Event, in which you are not being offered an executive position
with substantially comparable compensation, benefits and incentives with any
successor to the Company based in any office or location inside a sixty (60)
miles radius from your current residence in Yorba Linda, California provided
that such an offer has not been discouraged by you or your representative; or

(v)
a material breach by the Company of the terms of this Letter.

 

5

In
case of a claim of "Cause" for termination or "Good Reason" for resignation,
the Board shall promptly notify you or you shall promptly notify the Board (as
the case may be) in writing of the existence of such Cause or Good Reason, and
if the basis of such claim is reasonably susceptible of cure and in fact is
fully cured within thirty (30) days, it shall no longer be grounds for
termination with "Cause" or "Good Reason" for resignation. 

Indemnification.   Company will continue its
commitment to indemnify you in accordance with the Company's standard
Indemnification Agreement for its officers and directors (which you have
previously executed in your capacity as a director of the Company). 

By accepting this offer, you confirm your understanding that
your employment will be on an at-will basis meaning that either you or the
Company may terminate the employment relationship at any time for any reason
with or without notice or Cause, and that neither you nor the Company has
entered into any other agreement regarding the duration of your employment. 
This Letter represents the full and exclusive understanding between us of the
matters set forth herein and there is no other agreement, written or oral,
which governs such matters.   Please sign both copies of this letter to
indicate your acceptance of this offer and retain one copy for your records and
return the second copy to us.

 

Sincerely,

	By: /s/ JEFF RITCHEY	Agreed to and accepted:
	------------------------------------	----------------------------------
	Jeff Ritchey 	By: /s/ MARK P. MURPHY
	Chief Financial Officer           
			Mark P. Murphy
	PRO-DEX, INC. 	Date: August 14, 2006EXHIBIT 4.1

                          QUEST MINERALS & MINING CORP.
                         2006 STOCK INCENTIVE PLAN NO. 2

         1.       Purpose. The purpose of the 2006 Stock Incentive Plan No. 2 of
Quest Minerals and Mining Corp. is to further align the interests of employees,
directors and non-employee Consultants with those of the stockholders by
providing incentive compensation opportunities tied to the performance of the
Common Stock and by promoting increased ownership of the Common Stock by such
individuals. The Plan is also intended to advance the interests of the Company
and its stockholders by attracting, retaining and motivating key personnel upon
whose judgment, initiative and effort the successful conduct of the Company's
business is largely dependent.

         2.       Definitions. Wherever the following capitalized terms are used
in the Plan, they shall have the meanings specified below:

                  "Affiliate" means (i) any entity that would be treated as an
         "affiliate" of the Company for purposes of Rule 12b-2 under the
         Exchange Act and (ii) any joint venture or other entity in which the
         Company has a direct or indirect beneficial ownership interest
         representing at least one-third (1/3) of the aggregate voting power of
         the equity interests of such entity or one-third (1/3) of the aggregate
         fair market value of the equity interests of such entity, as determined
         by the Committee.

                  "Award" means an award of a Stock Option, Stock Award, or
         Restricted Stock Award granted under the Plan.

                  "Award Agreement" means a written or electronic agreement
         entered into between the Company and a Participant setting forth the
         terms and conditions of an Award granted to a Participant.

                  "Board" means the Board of Directors of the Company.

                  "Code" means the Internal Revenue Code of 1986, as amended.

                  "Common Stock" means the Company's common stock, $0.001 par
         value per share.

                  "Committee" means the Compensation Committee of the Board, or
         such other committee of the Board appointed by the Board to administer
         the Plan, or if no such committee exists, the Board.

                  "Company" means Quest Minerals and Mining Corp., a Utah
         corporation.

                  "Consultant" means any person which is a consultant or advisor
         to the Company and which is a natural person and who provides bona fide
         services to the Company which are not in connection with the offer or
         sale of securities in a capital-raising transaction for the Company,
         and do not directly or indirectly promote or maintain a market for the
         Company's securities.

                  "Date of Grant" means the date on which an Award under the
         Plan is made by the Committee, or such later date as the Committee may
         specify to be the effective date of an Award.

                  "Disability" means a Participant being considered "disabled"
         within the meaning of Section 409A(a)(2)(C) of the Code, unless
         otherwise provided in an Award Agreement.

                  "Eligible Person" means any person who is an employee of the
         Company or any Affiliate or any person to whom an offer of employment
         with the Company or any Affiliate is extended, as determined by the
         Committee, or any person who is a Non-Employee Director, or any person
         who is Consultant to the Company.

                  "Exchange Act" means the Securities Exchange Act of 1934, as
         amended.

                  "Fair Market Value" means the mean between the highest and
         lowest reported sales prices of the Common Stock on the New York Stock
         Exchange Composite Tape or, if not listed on such exchange, on any
         other national securities exchange on which the Company's common stock
         is listed or on The Nasdaq Stock Market, or, if not so listed on any

<PAGE>

         other national securities exchange or The Nasdaq Stock Market, then the
         average of the bid price of the Company's common stock during the last
         five trading days on the OTC Bulletin Board immediately preceding the
         last trading day prior to the date with respect to which the Fair
         Market Value is to be determined. If the Company's common stock is not
         then publicly traded, then the Fair Market Value of the Common Stock
         shall be the book value of the Company per share as determined on the
         last day of March, June, September, or December in any year closest to
         the date when the determination is to be made. For the purpose of
         determining book value hereunder, book value shall be determined by
         adding as of the applicable date called for herein the capital,
         surplus, and undivided profits of the Company, and after having
         deducted any reserves theretofore established; the sum of these items
         shall be divided by the number of shares of the Company's common stock
         outstanding as of said date, and the quotient thus obtained shall
         represent the book value of each share of the Company's common stock.

                  "Incentive Stock Option" means a Stock Option granted under
         Section 6 hereof that is intended to meet the requirements of Section
         422 of the Code and the regulations thereunder.

                  "Non-Employee Director" means any member of the Board who is
         not an employee of the Company.

                  "Nonqualified Stock Option" means a Stock Option granted under
         Section 6 hereof that is not an Incentive Stock Option.

                  "Participant" means any Eligible Person who holds an
         outstanding Award under the Plan.

                  "Plan" means the 2006 Stock Incentive Plan No. 2 of Quest
         Minerals and Mining Corp. as set forth herein, as amended from time to
         time.

                  "Restricted Stock Award" means a grant of shares of Common
         Stock to an Eligible Person under Section 8 hereof that is issued
         subject to such vesting and transfer restrictions as the Committee
         shall determine and set forth in an Award Agreement.

                  "Service" means a Participant's employment with the Company or
         any Affiliate or a Participant's service as a Non-Employee Director
         with the Company, as applicable.

                  "Stock Award" means a grant of shares of Common Stock to an
         Eligible Person under Section 7 hereof that are issued free of transfer
         restrictions and forfeiture conditions.

                  "Stock Option" means a contractual right granted to an
         Eligible Person under Section 6 hereof to purchase shares of Common
         Stock at such time and price, and subject to such conditions, as are
         set forth in the Plan and the applicable Award Agreement.

         3.       Administration.

         3.1      Committee Members. The Plan shall be administered by a
Committee comprised of one or more members of the Board, or if no such committee
exists, the Board.

         3.2      Committee Authority. The Committee shall have such powers and
authority as may be necessary or appropriate for the Committee to carry out its
functions as described in the Plan. Subject to the express limitations of the
Plan, the Committee shall have authority in its discretion to determine the
Eligible Persons to whom, and the time or times at which, Awards may be granted,
the number of shares, units or other rights subject to each Award, the exercise,
base or purchase price of an Award (if any), the time or times at which an Award
will become vested, exercisable or payable, the performance goals and other
conditions of an Award, the duration of the Award, and all other terms of the
Award. Subject to the terms of the Plan, the Committee shall have the authority
to amend the terms of an Award in any manner that is not inconsistent with the
Plan, provided that no such action shall adversely affect the rights of a
Participant with respect to an outstanding Award without the Participant's
consent. The Committee shall also have discretionary authority to interpret the
Plan, to make factual determinations under the Plan, and to make all other
determinations necessary or advisable for Plan administration, including,
without limitation, to correct any defect, to supply any omission or to
reconcile any inconsistency in the Plan or any Award Agreement hereunder. The
Committee may prescribe, amend, and rescind rules and regulations relating to
the Plan. The Committee's determinations under the Plan need not be uniform and
may be made by the Committee selectively among Participants and Eligible
Persons, whether or not such persons are similarly situated. The Committee
shall, in its discretion, consider such factors as it deems relevant in making

                                  Page 2 of 12
<PAGE>

its interpretations, determinations and actions under the Plan including,
without limitation, the recommendations or advice of any officer or employee of
the Company or such attorneys, consultants, accountants or other advisors as it
may select. All interpretations, determinations and actions by the Committee
shall be final, conclusive, and binding upon all parties.

         3.3      Delegation of Authority. The Committee shall have the right,
from time to time, to delegate to one or more officers of the Company the
authority of the Committee to grant and determine the terms and conditions of
Awards granted under the Plan, subject to the requirements of state law and such
other limitations as the Committee shall determine. In no event shall any such
delegation of authority be permitted with respect to Awards to any members of
the Board or to any Eligible Person who is subject to Rule 16b-3 under the
Exchange Act or Section 162(m) of the Code. The Committee shall also be
permitted to delegate, to any appropriate officer or employee of the Company,
responsibility for performing certain ministerial functions under the Plan. In
the event that the Committee's authority is delegated to officers or employees
in accordance with the foregoing, all provisions of the Plan relating to the
Committee shall be interpreted in a manner consistent with the foregoing by
treating any such reference as a reference to such officer or employee for such
purpose. Any action undertaken in accordance with the Committee's delegation of
authority hereunder shall have the same force and effect as if such action was
undertaken directly by the Committee and shall be deemed for all purposes of the
Plan to have been taken by the Committee.

         4.       Shares Subject to the Plan.

         4.1      Maximum Share Limitations. Subject to Section 4.3 hereof, the
maximum aggregate number of shares of Common Stock that may be issued and sold
under all Awards granted under the Plan shall be thirty million (30,000,000)
shares. Shares of Common Stock issued and sold under the Plan may be either
authorized but unissued shares or shares held in the Company's treasury. To the
extent that any Award involving the issuance of shares of Common Stock is
forfeited, cancelled, returned to the Company for failure to satisfy vesting
requirements or other conditions of the Award, or otherwise terminates without
an issuance of shares of Common Stock being made thereunder, the shares of
Common Stock covered thereby will no longer be counted against the foregoing
maximum share limitations and may again be made subject to Awards under the Plan
pursuant to such limitations. Any Awards or portions thereof that are settled in
cash and not in shares of Common Stock shall not be counted against the
foregoing maximum share limitations.

         4.2      Adjustments. If there shall occur any change with respect to
the outstanding shares of Common Stock by reason of any recapitalization,
reclassification, stock dividend, extraordinary dividend, stock split, reverse
stock split or other distribution with respect to the shares of Common Stock, or
any merger, reorganization, consolidation, combination, spin-off or other
similar corporate change, or any other change affecting the Common Stock, the
Committee may, in the manner and to the extent that it deems appropriate and
equitable to the Participants and consistent with the terms of the Plan, cause
an adjustment to be made in (i) the maximum number and kind of shares provided
in Section 4.1 hereof, (ii) the number and kind of shares of Common Stock, or
other rights subject to then outstanding Awards, (iii) the exercise or base
price for each share or other right subject to then outstanding Awards, and (iv)
any other terms of an Award that are affected by the event. Notwithstanding the
foregoing, in the case of Incentive Stock Options, any such adjustments shall,
to the extent practicable, be made in a manner consistent with the requirements
of Section 424(a) of the Code.

         4.3      Anti-Dilution. Notwithstanding anything contained in the Plan
to cover the contrary, including any adjustments discussed in this Section 4,
the maximum aggregate number of shares of Common Stock that may be issued and
sold under all Awards granted under the Plan shall be anti-dilutive in the event
of a reverse stock split by the Company and shall not result in any reduction in
the number of shares available and authorized under the Plan at the effective
time of such reverse stock split(s).

         5.       Participation and Awards.

         5.1      Designations of Participants. All Eligible Persons are
eligible to be designated by the Committee to receive Awards and become
Participants under the Plan. The Committee has the authority, in its discretion,
to determine and designate from time to time those Eligible Persons who are to
be granted Awards, the types of Awards to be granted and the number of shares of
Common Stock or units subject to Awards granted under the Plan. In selecting
Eligible Persons to be Participants and in determining the type and amount of
Awards to be granted under the Plan, the Committee shall consider any and all
factors that it deems relevant or appropriate.

                                  Page 3 of 12
<PAGE>

         5.2      Determination of Awards. The Committee shall determine the
terms and conditions of all Awards granted to Participants in accordance with
its authority under Section 3.2 hereof. An Award may consist of one type of
right or benefit hereunder or of two or more such rights or benefits granted in
tandem or in the alternative. In the case of any fractional share or unit
resulting from the grant, vesting, payment or crediting of dividends or dividend
equivalents under an Award, the Committee shall have the discretionary authority
to (i) disregard such fractional share or unit, (ii) round such fractional share
or unit to the nearest lower or higher whole share or unit, or (iii) convert
such fractional share or unit into a right to receive a cash payment. To the
extent deemed necessary by the Committee, an Award shall be evidenced by an
Award Agreement as described in Section 11.1 hereof.

         6.       Stock Options.

         6.1      Grant of Stock Options. A Stock Option may be granted to any
Eligible Person selected by the Committee. Subject to the provisions of Section
6.8 hereof and Section 422 of the Code, each Stock Option shall be designated,
in the discretion of the Committee, as an Incentive Stock Option or as a
Nonqualified Stock Option.

         6.2      Exercise Price. The exercise price per share of a Stock Option
shall not be less than 85 percent of the Fair Market Value of the shares of
Common Stock on the Date of Grant, provided that the Committee may in its
discretion specify for any Stock Option an exercise price per share that is
higher than the Fair Market Value on the Date of Grant, except that the price
shall not be less than 110 percent of the Fair Market Value in the case of any
person who owns securities possessing more than 10 percent of the total combined
voting power of all classes of securities of the Company.

         6.3      Vesting of Stock Options. The Committee shall in its
discretion prescribe the time or times at which, or the conditions upon which, a
Stock Option or portion thereof shall become vested and/or exercisable, and may
accelerate the vesting or exercisability of any Stock Option at any time,
provided, however, that any Stock Option shall vest at the rate of at least
twenty percent (20%) per year over five (5) years from the date the Stock Option
is granted, subject to reasonable conditions as may be provided for in the Award
Agreement. However, in the case of a Stock Option granted to officers,
Non-employee Directors, managers or Consultants of the Company, the Stock Option
may become fully exercisable, subject to reasonable conditions, at anytime or
during any period established by the Company. The requirements for vesting and
exercisability of a Stock Option may be based on the continued Service of the
Participant with the Company or its Affiliates for a specified time period (or
periods) or on the attainment of specified performance goals established by the
Committee in its discretion.

         6.4      Term of Stock Options. The Committee shall in its discretion
prescribe in an Award Agreement the period during which a vested Stock Option
may be exercised, provided that the maximum term of a Stock Option shall be ten
years from the Date of Grant. Except as otherwise provided in this Section 6 or
as otherwise may be provided by the Committee, no Stock Option issued to an
employee or a Non-Employee Director of the Company may be exercised at any time
during the term thereof unless the employee or a Non-Employee Director
Participant is then in the Service of the Company or one of its Affiliates.

         6.5      Termination of Service. Subject to Section 6.8 hereof with
respect to Incentive Stock Options, the Stock Option of any Participant whose
Service with the Company or one of its Affiliates is terminated for any reason
shall terminate on the earlier of (A) the date that the Stock Option expires in
accordance with its terms or (B) unless otherwise provided in an Award
Agreement, and except for termination for cause (as described in Section 10.2
hereof), the expiration of the applicable time period following termination of
Service, in accordance with the following: (1) twelve months if Service ceased
due to Disability, (2) eighteen months if Service ceased at a time when the
Participant is eligible to elect immediate commencement of retirement benefits
at a specified retirement age under a pension plan to which the Company or any
of its Affiliates had made contributions, (3) eighteen months if the Participant
died while in the Service of the Company or any of its Affiliates, or (iv) three
months if Service ceased for any other reason. During the foregoing applicable
period, except as otherwise specified in the Award Agreement or in the event
Service was terminated by the death of the Participant, the Stock Option may be
exercised by such Participant in respect of the same number of shares of Common
Stock, in the same manner, and to the same extent as if he or she had remained
in the continued Service of the Company or any Affiliate during the first three
months of such period; provided that no additional rights shall vest after such
three months. The Committee shall have authority to determine in each case
whether an authorized leave of absence shall be deemed a termination of Service
for purposes hereof, as well as the effect of a leave of absence on the vesting
and exercisability of a Stock Option. Unless otherwise provided by the
Committee, if an entity ceases to be an Affiliate of the Company or otherwise

                                  Page 4 of 12
<PAGE>

ceases to be qualified under the Plan or if all or substantially all of the
assets of an Affiliate of the Company are conveyed (other than by encumbrance),
such cessation or action, as the case may be, shall be deemed for purposes
hereof to be a termination of the Service.

         6.6      Stock Option Exercise; Tax Withholding. Subject to such terms
and conditions as shall be specified in an Award Agreement, a Stock Option may
be exercised in whole or in part at any time during the term thereof by notice
in the form required by the Company, together with payment of the aggregate
exercise price therefor and applicable withholding tax. Payment of the exercise
price shall be made in the manner set forth in the Award Agreement, unless
otherwise provided by the Committee: (i) in cash or by cash equivalent
acceptable to the Committee, (ii) by payment in shares of Common Stock that have
been held by the Participant for at least six months (or such period as the
Committee may deem appropriate, for accounting purposes or otherwise) valued at
the Fair Market Value of such shares on the date of exercise, (iii) through an
open-market, broker-assisted sales transaction pursuant to which the Company is
promptly delivered the amount of proceeds necessary to satisfy the exercise
price, (iv) by a combination of the methods described above or (v) by such other
method as may be approved by the Committee and set forth in the Award Agreement.
In addition to and at the time of payment of the exercise price, the Participant
shall pay to the Company the full amount of any and all applicable income tax,
employment tax and other amounts required to be withheld in connection with such
exercise, payable under such of the methods described above for the payment of
the exercise price as may be approved by the Committee and set forth in the
Award Agreement.

         6.7      Limited Transferability of Nonqualified Stock Options. All
Stock Options shall be nontransferable except (i) upon the Participant's death,
in accordance with Section 11.2 hereof or (ii) in the case of Nonqualified Stock
Options only, for the transfer of all or part of the Stock Option to a
Participant's "family member" (as defined for purposes of the Form S-8
registration statement under the Securities Act of 1933), as may be approved by
the Committee in its discretion at the time of proposed transfer. The transfer
of a Nonqualified Stock Option may be subject to such terms and conditions as
the Committee may in its discretion impose from time to time. Subsequent
transfers of a Nonqualified Stock Option shall be prohibited other than in
accordance with Section 11.2 hereof.

         6.8      Additional Rules for Incentive Stock Options.

                  (a)      Eligibility. An Incentive Stock Option may only be
         granted to an Eligible Person who is considered an employee for
         purposes of Treasury Regulation ss.1.421-7(h) with respect to the
         Company or any Affiliate that qualifies as a "subsidiary corporation"
         with respect to the Company for purposes of Section 424(f) of the Code.

                  (b)      Termination of Employment. An Award of an Incentive
         Stock Option may provide that such Stock Option may be exercised not
         later than 3 months following termination of employment of the
         Participant with the Company and all Subsidiaries, or not later than
         one year following a permanent and total disability within the meaning
         of Section 22(e)(3) of the Code, as and to the extent determined by the
         Committee to comply with the requirements of Section 422 of the Code.

                  (c)      Other Terms and Conditions; Nontransferability. Any
         Incentive Stock Option granted hereunder shall contain such additional
         terms and conditions, not inconsistent with the terms of the Plan, as
         are deemed necessary or desirable by the Committee, which terms,
         together with the terms of the Plan, shall be intended and interpreted
         to cause such Incentive Stock Option to qualify as an "incentive stock
         option" under Section 422 of the Code. An Award Agreement for an
         Incentive Stock Option may provide that such Stock Option shall be
         treated as a Nonqualified Stock Option to the extent that certain
         requirements applicable to "incentive stock options" under the Code
         shall not be satisfied. An Incentive Stock Option shall by its terms be
         nontransferable other than by will or by the laws of descent and
         distribution, and shall be exercisable during the lifetime of a
         Participant only by such Participant.

                  (d)      Disqualifying Dispositions. If shares of Common Stock
         acquired by exercise of an Incentive Stock Option are disposed of
         within two years following the Date of Grant or one year following the
         transfer of such shares to the Participant upon exercise, the
         Participant shall, promptly following such disposition, notify the
         Company in writing of the date and terms of such disposition and
         provide such other information regarding the disposition as the Company
         may reasonably require.

                                  Page 5 of 12
<PAGE>

         6.9      Repricing Prohibited. Subject to the adjustment provisions
contained in Section 4.2 hereof, without the prior approval of the Company's
stockholders, evidenced by a majority of votes cast, neither the Committee nor
the Board shall cause the cancellation, substitution or amendment of a Stock
Option that would have the effect of reducing the exercise price of such a Stock
Option previously granted under the Plan, or otherwise approve any modification
to such a Stock Option that would be treated as a "repricing" under the then
applicable rules, regulations or listing requirements.

         7.       Stock Awards.

         7.1      Grant of Stock Awards. A Stock Award may be granted to any
Eligible Person selected by the Committee. A Stock Award may be granted for past
services, in lieu of bonus or other cash compensation, as directors'
compensation or for any other valid purpose as determined by the Committee. A
Stock Award granted to an Eligible Person represents shares of Common Stock that
are issued without restrictions on transfer and other incidents of ownership and
free of forfeiture conditions, except as otherwise provided in the Plan and the
Award Agreement. The deemed issuance price of shares of Common Stock subject to
each Stock Award shall not be less than 85 percent of the Fair Market Value of
the Common Stock on the date of the grant. In the case of any person who owns
securities possessing more than ten percent of the combined voting power of all
classes of securities of the issuer or its parent or subsidiaries possessing
voting power, the deemed issuance price of shares of Common Stock subject to
each Stock Award shall be at least 100 percent of the Fair Market Value of the
Common Stock on the date of the grant. The Committee may, in connection with any
Stock Award, require the payment of a specified purchase price.

         7.2      Rights as Stockholder. Subject to the foregoing provisions of
this Section 7 and the applicable Award Agreement, upon the issuance of the
Common Stock under a Stock Award the Participant shall have all rights of a
stockholder with respect to the shares of Common Stock, including the right to
vote the shares and receive all dividends and other distributions paid or made
with respect thereto.

         8.       Restricted Stock Awards.

         8.1      Grant of Restricted Stock Awards. A Restricted Stock Award may
be granted to any Eligible Person selected by the Committee. The deemed issuance
price of shares of Common Stock subject to each Restricted Stock Award shall not
be less than 85 percent of the Fair Market Value of the Common Stock on the date
of the grant. In the case of any person who owns securities possessing more than
ten percent of the combined voting power of all classes of securities of the
issuer or its parent or subsidiaries possessing voting power, the deemed
issuance price of shares of Common Stock subject to each Restricted Stock Award
shall be at least 100 percent of the Fair Market Value of the Common Stock on
the date of the grant. The Committee may require the payment by the Participant
of a specified purchase price in connection with any Restricted Stock Award.

         8.2      Vesting Requirements. The restrictions imposed on shares
granted under a Restricted Stock Award shall lapse in accordance with the
vesting requirements specified by the Committee in the Award Agreement, provided
that the Committee may accelerate the vesting of a Restricted Stock Award at any
time. Such vesting requirements may be based on the continued Service of the
Participant with the Company or its Affiliates for a specified time period (or
periods) or on the attainment of specified performance goals established by the
Committee in its discretion. If the vesting requirements of a Restricted Stock
Award shall not be satisfied, the Award shall be forfeited and the shares of
Common Stock subject to the Award shall be returned to the Company.

         8.3      Restrictions. Shares granted under any Restricted Stock Award
may not be transferred, assigned or subject to any encumbrance, pledge, or
charge until all applicable restrictions are removed or have expired, unless
otherwise allowed by the Committee. Failure to satisfy any applicable
restrictions shall result in the subject shares of the Restricted Stock Award
being forfeited and returned to the Company. The Committee may require in an
Award Agreement that certificates representing the shares granted under a
Restricted Stock Award bear a legend making appropriate reference to the
restrictions imposed, and that certificates representing the shares granted or
sold under a Restricted Stock Award will remain in the physical custody of an
escrow holder until all restrictions are removed or have expired.

         8.4      Rights as Stockholder. Subject to the foregoing provisions of
this Section 8 and the applicable Award Agreement, the Participant shall have
all rights of a stockholder with respect to the shares granted to the
Participant under a Restricted Stock Award, including the right to vote the

                                  Page 6 of 12
<PAGE>

shares and receive all dividends and other distributions paid or made with
respect thereto. The Committee may provide in an Award Agreement for the payment
of dividends and distributions to the Participant at such times as paid to
stockholders generally or at the times of vesting or other payment of the
Restricted Stock Award.

         8.5      Section 83(b) Election. If a Participant makes an election
pursuant to Section 83(b) of the Code with respect to a Restricted Stock Award,
the Participant shall file, within 30 days following the Date of Grant, a copy
of such election with the Company and with the Internal Revenue Service, in
accordance with the regulations under Section 83 of the Code. The Committee may
provide in an Award Agreement that the Restricted Stock Award is conditioned
upon the Participant's making or refraining from making an election with respect
to the Award under Section 83(b) of the Code.

         9.       Change in Control.

         9.1      Effect of Change in Control. Except to the extent an Award
Agreement provides for a different result (in which case the Award Agreement
will govern and this Section 9 of the Plan shall not be applicable),
notwithstanding anything elsewhere in the Plan or any rules adopted by the
Committee pursuant to the Plan to the contrary, if a Triggering Event shall
occur within the 12-month period beginning with a Change in Control of the
Company, then, effective immediately prior to such Triggering Event, each
outstanding Stock Option, to the extent that it shall not otherwise have become
vested and exercisable, shall automatically become fully and immediately vested
and exercisable, without regard to any otherwise applicable vesting requirement.

         9.2      Definitions

                  (a)      Cause. For purposes of this Section 9, the term
         "Cause" shall mean a determination by the Committee that a Participant
         (i) has been convicted of, or entered a plea of nolo contendere to, a
         crime that constitutes a felony under Federal or state law, (ii) has
         engaged in willful gross misconduct in the performance of the
         Participant's duties to the Company or an Affiliate or (iii) has
         committed a material breach of any written agreement with the Company
         or any Affiliate with respect to confidentiality, noncompetition,
         nonsolicitation or similar restrictive covenant. Subject to the first
         sentence of Section 9.1 hereof, in the event that a Participant is a
         party to an employment agreement with the Company or any Affiliate that
         defines a termination on account of "Cause" (or a term having similar
         meaning), such definition shall apply as the definition of a
         termination on account of "Cause" for purposes hereof, but only to the
         extent that such definition provides the Participant with greater
         rights. A termination on account of Cause shall be communicated by
         written notice to the Participant, and shall be deemed to occur on the
         date such notice is delivered to the Participant.

                  (b)      Change in Control. For purposes of this Section 9, a
         "Change in Control" shall be deemed to have occurred upon:

                           (i) the occurrence of an acquisition by any
                  individual, entity or group (within the meaning of Section
                  13(d)(3) or 14(d)(2) of the Exchange Act) (a "Person") of
                  beneficial ownership (within the meaning of Rule 13d-3
                  promulgated under the Exchange Act) of a percentage of the
                  combined voting power of the then outstanding voting
                  securities of the Company entitled to vote generally in the
                  election of directors (the "Company Voting Securities") (but
                  excluding (1) any acquisition directly from the Company (other
                  than an acquisition by virtue of the exercise of a conversion
                  privilege of a security that was not acquired directly from
                  the Company), (2) any acquisition by the Company or an
                  Affiliate and (3) any acquisition by an employee benefit plan
                  (or related trust) sponsored or maintained by the Company or
                  any Affiliate) (an "Acquisition") that is thirty percent (30%)
                  or more of the Company Voting Securities;

                           (ii) at any time during a period of two (2)
                  consecutive years or less, individuals who at the beginning of
                  such period constitute the Board (and any new directors whose
                  election by the Board or nomination for election by the
                  Company's stockholders was approved by a vote of at least
                  two-thirds (2/3) of the directors then still in office who
                  either were directors at the beginning of the period or whose
                  election or nomination for election was so approved) cease for
                  any reason (except for death, Disability or voluntary
                  retirement) to constitute a majority thereof;

                                  Page 7 of 12
<PAGE>

                           (iii) an Acquisition that is fifty percent (50%) or
                  more of the Company Voting Securities;

                           (iv) the consummation of a merger, consolidation,
                  reorganization or similar corporate transaction, whether or
                  not the Company is the surviving company in such transaction,
                  other than a merger, consolidation, or reorganization that
                  would result in the Persons who are beneficial owners of the
                  Company Voting Securities outstanding immediately prior
                  thereto continuing to beneficially own, directly or
                  indirectly, in substantially the same proportions, at least
                  fifty percent (50%) of the combined voting power of the
                  Company Voting Securities (or the voting securities of the
                  surviving entity) outstanding immediately after such merger,
                  consolidation or reorganization;

                           (v) the sale or other disposition of all or
                  substantially all of the assets of the Company;

                           (vi) the approval by the stockholders of the Company
                  of a complete liquidation or dissolution of the Company; or

                           (vii) the occurrence of any transaction or event, or
                  series of transactions or events, designated by the Board in a
                  duly adopted resolution as representing a change in the
                  effective control of the business and affairs of the Company,
                  effective as of the date specified in any such resolution.

                  (c)      Constructive Termination. For purposes of this
         Section 9, a "Constructive Termination" shall mean a termination of
         employment by a Participant within sixty (60) days following the
         occurrence of any one or more of the following events without the
         Participant's written consent (i) any reduction in position, title (for
         Vice Presidents or above), overall responsibilities, level of
         authority, level of reporting (for Vice Presidents or above), base
         compensation, annual incentive compensation opportunity, aggregate
         employee benefits or (ii) a request that the Participant's location of
         employment be relocated by more than fifty (50) miles. Subject to the
         first sentence of Section 9.1 hereof, in the event that a Participant
         is a party to an employment agreement with the Company or any Affiliate
         (or a successor entity) that defines a termination on account of
         "Constructive Termination," "Good Reason" or "Breach of Agreement" (or
         a term having a similar meaning), such definition shall apply as the
         definition of "Constructive Termination" for purposes hereof in lieu of
         the foregoing, but only to the extent that such definition provides the
         Participant with greater rights. A Constructive Termination shall be
         communicated by written notice to the Committee, and shall be deemed to
         occur on the date such notice is delivered to the Committee, unless the
         circumstances giving rise to the Constructive Termination are cured
         within five (5) days of such notice.

                  (d)      Triggering Event. For purposes of this Section 9, a
         "Triggering Event" shall mean (i) the termination of Service of a
         Participant by the Company or an Affiliate (or any successor thereof)
         other than on account of death, Disability or Cause, (ii) the
         occurrence of a Constructive Termination or (iii) any failure by the
         Company (or a successor entity) to assume, replace, convert or
         otherwise continue any Award in connection with the Change in Control
         (or another corporate transaction or other change effecting the Common
         Stock) on the same terms and conditions as applied immediately prior to
         such transaction, except for equitable adjustments to reflect changes
         in the Common Stock pursuant to Section 4.2 hereof.

         9.3      Excise Tax Limit. In the event that the vesting of Awards
together with all other payments and the value of any benefit received or to be
received by a Participant would result in all or a portion of such payment being
subject to the excise tax under Section 4999 of the Code, then the Participant's
payment shall be either (i) the full payment or (ii) such lesser amount that
would result in no portion of the payment being subject to excise tax under
Section 4999 of the Code (the "Excise Tax"), whichever of the foregoing amounts,
taking into account the applicable Federal, state, and local employment taxes,
income taxes, and the Excise Tax, results in the receipt by the Participant, on
an after-tax basis, of the greatest amount of the payment notwithstanding that
all or some portion of the payment may be taxable under Section 4999 of the
Code. All determinations required to be made under this Section 9 shall be made
by Kempisty & Company Certified Public Accountants, P.C. or any other accounting
firm which is the Company's outside auditor immediately prior to the event
triggering the payments that are subject to the Excise Tax (the "Accounting
Firm"). The Company shall cause the Accounting Firm to provide detailed
supporting calculations of its determinations to the Company and the
Participant. All fees and expenses of the Accounting Firm shall be borne solely
by the Company. The Accounting Firm's determinations must be made with
substantial authority (within the meaning of Section 6662 of the Code). For the
purposes of all calculations under Section 280G of the Code and the application
of this Section 9.3, all determinations as to present value shall be made using
120 percent of the applicable Federal rate (determined under Section 1274(d) of
the Code) compounded semiannually, as in effect on December 30, 2004.

                                  Page 8 of 12
<PAGE>

         10.      Forfeiture Events.

         10.1     General. The Committee may specify in an Award Agreement at
the time of the Award that the Participant's rights, payments and benefits with
respect to an Award shall be subject to reduction, cancellation, forfeiture or
recoupment upon the occurrence of certain specified events, in addition to any
otherwise applicable vesting or performance conditions of an Award. Such events
shall include, but shall not be limited to, termination of Service for cause,
violation of material Company policies, breach of noncompetition,
confidentiality or other restrictive covenants that may apply to the
Participant, or other conduct by the Participant that is detrimental to the
business or reputation of the Company.

         10.2     Termination for Cause. Unless otherwise provided by the
Committee and set forth in an Award Agreement, if a Participant's employment
with the Company or any Affiliate shall be terminated for cause, the Company
may, in its sole discretion, immediately terminate such Participant's right to
any further payments, vesting or exercisability with respect to any Award in its
entirety. In the event a Participant is party to an employment (or similar)
agreement with the Company or any Affiliate that defines the term "cause," such
definition shall apply for purposes of the Plan. The Company shall have the
power to determine whether the Participant has been terminated for cause and the
date upon which such termination for cause occurs. Any such determination shall
be final, conclusive and binding upon the Participant. In addition, if the
Company shall reasonably determine that a Participant has committed or may have
committed any act which could constitute the basis for a termination of such
Participant's employment for cause, the Company may suspend the Participant's
rights to exercise any option, receive any payment or vest in any right with
respect to any Award pending a determination by the Company of whether an act
has been committed which could constitute the basis for a termination for
"cause" as provided in this Section 10.2.

         11.      General Provisions.

         11.1     Award Agreement. To the extent deemed necessary by the
Committee, an Award under the Plan shall be evidenced by an Award Agreement in a
written or electronic form approved by the Committee setting forth the number of
shares of Common Stock or units subject to the Award, the exercise price, base
price, or purchase price of the Award, the time or times at which an Award will
become vested, exercisable or payable and the term of the Award. The Award
Agreement may also set forth the effect on an Award of termination of Service
under certain circumstances. The Award Agreement shall be subject to and
incorporate, by reference or otherwise, all of the applicable terms and
conditions of the Plan, and may also set forth other terms and conditions
applicable to the Award as determined by the Committee consistent with the
limitations of the Plan. Award Agreements evidencing Incentive Stock Options
shall contain such terms and conditions as may be necessary to meet the
applicable provisions of Section 422 of the Code. The grant of an Award under
the Plan shall not confer any rights upon the Participant holding such Award
other than such terms, and subject to such conditions, as are specified in the
Plan as being applicable to such type of Award (or to all Awards) or as are
expressly set forth in the Award Agreement. The Committee need not require the
execution of an Award Agreement by a Participant, in which case, acceptance of
the Award by the Participant shall constitute agreement by the Participant to
the terms, conditions, restrictions and limitations set forth in the Plan and
the Award Agreement as well as the administrative guidelines of the Company in
effect from time to time.

         11.2     No Assignment or Transfer; Beneficiaries. Except as provided
in Section 6.7 hereof, Awards under the Plan shall not be assignable or
transferable by the Participant, except by will or by the laws of descent and
distribution, and shall not be subject in any manner to assignment, alienation,
pledge, encumbrance or charge. Notwithstanding the foregoing, the Committee may
provide in the terms of an Award Agreement that the Participant shall have the
right to designate a beneficiary or beneficiaries who shall be entitled to any
rights, payments or other benefits specified under an Award following the
Participant's death. During the lifetime of a Participant, an Award shall be
exercised only by such Participant or such Participant's guardian or legal
representative. In the event of a Participant's death, an Award may to the
extent permitted by the Award Agreement be exercised by the Participant's
beneficiary as designated by the Participant in the manner prescribed by the
Committee or, in the absence of an authorized beneficiary designation, by the
legatee of such Award under the Participant's will or by the Participant's
estate in accordance with the Participant's will or the laws of descent and
distribution, in each case in the same manner and to the same extent that such
Award was exercisable by the Participant on the date of the Participant's death.

                                  Page 9 of 12
<PAGE>

         11.3     Deferrals of Payment. The Committee may in its discretion
permit a Participant to defer the receipt of payment of cash or delivery of
shares of Common Stock that would otherwise be due to the Participant by virtue
of the exercise of a right or the satisfaction of vesting or other conditions
with respect to an Award. If any such deferral is to be permitted by the
Committee, the Committee shall establish rules and procedures relating to such
deferral in a manner intended to comply with the requirements of Section 409A of
the Code, including, without limitation, the time when an election to defer may
be made, the time period of the deferral and the events that would result in
payment of the deferred amount, the interest or other earnings attributable to
the deferral and the method of funding, if any, attributable to the deferred
amount.

         11.4     Rights as Stockholder. A Participant shall have no rights as a
holder of shares of Common Stock with respect to any unissued securities covered
by an Award until the date the Participant becomes the holder of record of such
securities. Except as provided in Section 4.2 hereof, no adjustment or other
provision shall be made for dividends or other stockholder rights, except to the
extent that the Award Agreement provides for dividend payments or dividend
equivalent rights.

         11.5     Employment or Service. Nothing in the Plan, in the grant of
any Award or in any Award Agreement shall confer upon any Eligible Person any
right to continue in the Service of the Company or any of its Affiliates, or
interfere in any way with the right of the Company or any of its Affiliates to
terminate the Participant's employment or other service relationship for any
reason at any time.

         11.6     Securities Laws. No shares of Common Stock will be issued or
transferred pursuant to an Award unless and until all then applicable
requirements imposed by Federal and state securities and other laws, rules and
regulations and by any regulatory agencies having jurisdiction, and by any
exchanges upon which the shares of Common Stock may be listed, have been fully
met. As a condition precedent to the issuance of shares pursuant to the grant or
exercise of an Award, the Company may require the Participant to take any
reasonable action to meet such requirements. The Committee may impose such
conditions on any shares of Common Stock issuable under the Plan as it may deem
advisable, including, without limitation, restrictions under the Securities Act
of 1933, as amended, under the requirements of any exchange upon which such
shares of the same class are then listed, and under any blue sky or other
securities laws applicable to such shares. The Committee may also require the
Participant to represent and warrant at the time of issuance or transfer that
the shares of Common Stock are being acquired only for investment purposes and
without any current intention to sell or distribute such shares.

         11.7     Tax Withholding. The Participant shall be responsible for
payment of any taxes or similar charges required by law to be withheld from an
Award or an amount paid in satisfaction of an Award, which shall be paid by the
Participant on or prior to the payment or other event that results in taxable
income in respect of an Award. The Award Agreement may specify the manner in
which the withholding obligation shall be satisfied with respect to the
particular type of Award.

         11.8     Unfunded Plan. The adoption of the Plan and any reservation of
shares of Common Stock or cash amounts by the Company to discharge its
obligations hereunder shall not be deemed to create a trust or other funded
arrangement. Except upon the issuance of Common Stock pursuant to an Award, any
rights of a Participant under the Plan shall be those of a general unsecured
creditor of the Company, and neither a Participant nor the Participant's
permitted transferees or estate shall have any other interest in any assets of
the Company by virtue of the Plan. Notwithstanding the foregoing, the Company
shall have the right to implement or set aside funds in a grantor trust, subject
to the claims of the Company's creditors or otherwise, to discharge its
obligations under the Plan.

         11.9     Other Compensation and Benefit Plans. The adoption of the Plan
shall not affect any other share incentive or other compensation plans in effect
for the Company or any Affiliate, nor shall the Plan preclude the Company from
establishing any other forms of share incentive or other compensation or benefit
program for employees of the Company or any Affiliate. The amount of any
compensation deemed to be received by a Participant pursuant to an Award shall
not constitute includable compensation for purposes of determining the amount of
benefits to which a Participant is entitled under any other compensation or
benefit plan or program of the Company or an Affiliate, including, without
limitation, under any pension or severance benefits plan, except to the extent
specifically provided by the terms of any such plan.

                                 Page 10 of 12
<PAGE>

         11.10    Plan Binding on Transferees. The Plan shall be binding upon
the Company, its transferees and assigns, and the Participant, the Participant's
executor, administrator and permitted transferees and beneficiaries.

         11.11    Severability. If any provision of the Plan or any Award
Agreement shall be determined to be illegal or unenforceable by any court of law
in any jurisdiction, the remaining provisions hereof and thereof shall be
severable and enforceable in accordance with their terms, and all provisions
shall remain enforceable in any other jurisdiction.

         11.12    Foreign Jurisdictions. The Committee may adopt, amend and
terminate such arrangements and grant such Awards, not inconsistent with the
intent of the Plan, as it may deem necessary or desirable to comply with any
tax, securities, regulatory or other laws of other jurisdictions with respect to
Awards that may be subject to such laws. The terms and conditions of such Awards
may vary from the terms and conditions that would otherwise be required by the
Plan solely to the extent the Committee deems necessary for such purpose.
Moreover, the Board may approve such supplements to or amendments, restatements
or alternative versions of the Plan, not inconsistent with the intent of the
Plan, as it may consider necessary or appropriate for such purposes, without
thereby affecting the terms of the Plan as in effect for any other purpose.

         11.13    Substitute Awards in Corporate Transactions. Nothing contained
in the Plan shall be construed to limit the right of the Committee to grant
Awards under the Plan in connection with the acquisition, whether by purchase,
merger, consolidation or other corporate transaction, of the business or assets
of any corporation or other entity. Without limiting the foregoing, the
Committee may grant Awards under the Plan to an employee or director of another
corporation who becomes an Eligible Person by reason of any such corporate
transaction in substitution for awards previously granted by such corporation or
entity to such person. The terms and conditions of the substitute Awards may
vary from the terms and conditions that would otherwise be required by the Plan
solely to the extent the Committee deems necessary for such purpose.

         11.14    Governing Law. The Plan and all rights hereunder shall be
subject to and interpreted in accordance with the laws of the State of Utah,
without reference to the principles of conflicts of laws, and to applicable
Federal securities laws.

         11.15    Financial Statements. All Participants shall receive the
financial statements of the Company at least annually.

         11.16    Performance Based Awards. For purposes of Stock Awards and
Restricted Stock Awards granted under the Plan that are intended to qualify as
"performance-based" compensation under Section 162(m) of the Code, such Awards
shall be granted to the extent necessary to satisfy the requirements of Section
162(m) of the Code.

         11.17    Stockholder Approval. The Plan must be approved by the
stockholders by a majority of all shares entitled to vote within twelve (12)
months after the date the Plan was adopted by the Board. Any Incentive Stock
Options granted before stockholder approval is obtained shall be converted into
Nonqualified Stock Options if stockholder approval is not obtained within twelve
(12) months before or after the Plan was adopted.

         12.      Effective Date; Amendment and Termination.

         12.1     Effective Date. The Plan shall become effective following its
adoption by the Board. The term of the Plan shall be ten (10) years from the
date of adoption by the Board, subject to Section 12.3 hereof.

         12.2     Amendment. The Board may at any time and from time to time and
in any respect, amend or modify the Plan. The Board may seek the approval of any
amendment or modification by the Company's stockholders to the extent it deems
necessary or advisable in its discretion for purposes of compliance with Section
162(m) or Section 422 of the Code, or exchange or securities market or for any
other purpose. No amendment or modification of the Plan shall adversely affect
any Award theretofore granted without the consent of the Participant or the
permitted transferee of the Award.

                                 Page 11 of 12
<PAGE>

         12.3     Termination. The Plan shall terminate on the tenth anniversary
of the date of its adoption by the Board. The Board may, in its discretion and
at any earlier date, terminate the Plan. Notwithstanding the foregoing, no
termination of the Plan shall adversely affect any Award theretofore granted
without the consent of the Participant or the permitted transferee of the Award.

                                 Page 12 of 12

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