Document:

exv10w21

Exhibit
10.21

BCInet, Inc.

SERIES A PREFERRED STOCK

PURCHASE AGREEMENT

BCInet
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Series A SPA

 

 

BCInet, Inc.

SERIES A PREFERRED STOCK PURCHASE AGREEMENT

     This Series A Preferred Stock Purchase Agreement (this “Agreement”) is made and entered into
effective August 31,2009 by and between BCINET, INC., a Delaware corporation (the “Company”), and
OCZ TECHNOLOGY GROUP, INC., a Delaware corporation (the “Investor”).

RECITALS

     WHEREAS, the Company and Investor are parties to the Asset Purchase Agreement of even date
herewith (the “Asset Purchase Agreement”), pursuant to which Investor assigns and transfers to the
Company certain assets, including the Goodwill (as described in the Asset Purchase Agreement); and

     WHEREAS, the Company desires to issue to Investor, and Investor desires to accept from the
Company, the Shares (defined below) as partial consideration for the Goodwill.

     NOW, THEREFORE, in consideration of the above recitals, the mutual covenants, agreements,
representations, and warranties contained in this Agreement, the parties hereto agree as follows:

SECTION 1

Purchase and Sale of Stock

     1.1 Sale and Issuance of Shares.

          (a) The Company shall adopt and file with the Secretary of State of Delaware on or before the
Closing (as defined below) an Amended and Restated Certificate of Incorporation in the form
attached hereto as Exhibit A (the “Restated Certificate”).

          (b) Subject to the terms and conditions of this Agreement, Investor agrees to purchase at the
Closing, and the Company agrees to sell and issue to Investor at the Closing, 2,633,333 shares of
the Company’s Series A Preferred Stock (the “Shares”) at a price of $0.31 per share, or a total of
$816,333.23. The Shares shall be deemed paid with the execution of the Asset Purchase Agreement as
partial consideration for the Goodwill.

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SECTION 2

Closing; Delivery

          (a) The purchase and sale of the Shares shall take place at the Company’s offices on August
31, 2009, or at such other time and place as the parties shall mutually agree which shall be
contemporaneous with the closing of the Asset Purchase Agreement (which time and place are
designated as the “Closing”).

          (b) At the Closing, or as soon as practical thereafter, the Company shall deliver to Investor
a certificate representing the Shares against the transfer of Goodwill of a like amount.

SECTION 3

Representations and Warranties of the Company

     Except as set forth on a Schedule of Exceptions delivered by the Company to the Investors at
the Closing, the Company hereby represents and warrants to Investor as of the date of this
Agreement as follows:

     3.1 Organization; Good Standing; Qualification. The Company is a corporation duly
organized, validly existing and in good standing under the laws of the State of Delaware, has all
requisite corporate power and authority to own, lease, license and operate its properties and
assets and to carry on its business as now conducted and as presently proposed to be conducted, to
execute and deliver this Agreement, and to issue and sell the Shares and the Common Stock issuable
upon conversion thereof.

     3.2 Authorization. All corporate action on the part of the Company, its officers,
directors and stockholders necessary for the authorization, execution and delivery of the
Agreement, the Investors’ Rights Agreement, the Right of First Refusal Agreement and any other
related agreements (the “Transaction Documents”), the performance of all obligations of the Company
hereunder and thereunder, and the authorization, issuance (or reservation for issuance), sale and
delivery of the Shares being sold hereunder and the Common Stock issuable upon conversion thereof
has been taken or will be taken prior to the execution of this Agreement, and the Transaction
Documents, when executed and delivered, will constitute valid and legally binding obligations of
the Company, enforceable against the Company in accordance with their respective terms except as
limited by applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general
application affecting enforcement of creditors’ rights generally, and as limited by laws relating
to the availability of specific performance, injunctive relief or other equitable remedies.

     3.3 Valid Issuance of Preferred and Common Stock. The Shares that are being purchased
by the Investors hereunder, when issued, sold and delivered in accordance with the terms of this
Agreement for the consideration expressed herein, will be duly and validly issued, fully paid and
nonassessable, and will be free of liens, charges, encumbrances and restrictions on

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transfer other than restrictions on transfer under this Agreement and applicable state and
federal securities laws. The Common Stock issuable upon conversion of the Shares purchased under
this Agreement has been duly and validly reserved for issuance and, upon issuance in accordance
with the terms of the Company’s certificate of incorporation, will be duly and validly issued,
fully paid and nonassessable, and will be free of liens, charges, encumbrances and restrictions on
transfer other than restrictions on transfer under this Agreement and under applicable state and
federal securities laws.

     3.4 Capitalization and Voting Rights. The authorized capital of the Company consists,
or will consist immediately prior to the Closing, of:

          (a) Preferred Stock. 3,950,000 shares of Preferred Stock (the “Preferred Stock”), all
of which are designated as Series A Preferred Stock, none of which is outstanding.

          (b) Common Stock. 24,000,000 shares of common stock (the “Common Stock”), of which
3,950,000 shares are issued and outstanding. Other than a secured convertible note for
$414,200.00, there are no other outstanding subscriptions, options rights, warrants, convertible
securities.

          (c) The outstanding shares of Common Stock have been duly authorized and validly issued, are
fully paid and nonassessable and were issued in accordance with the registration or qualification
provisions of the Securities Act of 1933, as amended (the “Securities Act”) and any relevant state
securities laws or pursuant to valid exemptions therefrom.

          (d) Except for (i) the conversion privileges of the Shares, (ii) the rights provided in the
Investors’ Rights Agreement and (iii) 8,950,000 shares reserved for issuance under the Company’s
2009 Stock Incentive Plan there are not outstanding any options, warrants, rights (including
conversion or preemptive rights and rights of first refusal), or agreements for the purchase or
acquisition from the Company, or to the Company’s knowledge, from any holders of its securities, of
any shares of its capital stock. The Company is not a party or subject to any agreement or
understanding, and, to the best of the Company’s knowledge, there is no agreement or understanding
between any persons that affects or relates to the voting or giving of written consents with
respect to any security or the voting by a director of the Company.

     3.5 Governmental Consents. No consent, approval, qualification, order or
authorization of, or filing with, any local, state or federal governmental authority is required on
the part of the Company in connection with the Company’s valid execution, delivery or performance
of this Agreement, the offer, sale or issuance of the Shares by the Company or the issuance of
Common Stock upon conversion of the Shares, except (a) the filing of the Amended Certificate with
the Secretary of State of the State of Delaware, and (b) such filings and notices of sale required
to be filed with applicable federal and state agencies, which will be timely filed within the
applicable periods therefor.

     3.6 Litigation. There is no action, suit, proceeding or investigation pending or to
the best of the Company’s knowledge, currently threatened against the Company nor, to the best of
the Company’s knowledge, is there a basis for the foregoing, including, without limitation, any
that questions the validity of this Agreement or the right of the Company to enter into such

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Agreement, or to consummate the transactions contemplated hereby. The foregoing includes,
without limitation, any action, suit, proceeding or investigation pending or to the best of the
Company’s knowledge, currently threatened involving the prior employment of any of the Company’s
employees, their use in connection with the Company’s business of any information or techniques
allegedly proprietary to any of their former employers or their obligations under any agreements
with prior employers. There is no action, suit, proceeding or investigation by the Company
currently pending or that the Company currently intends to initiate.

     3.7 Title to Property and Assets; Leases. With the exception of the liens held by the
Investor pursuant to certain security agreements, the Company believes it owns its property and
assets free and clear of all mortgages, liens, claims and encumbrances. With respect to the
property and assets it leases or licenses, the Company is in compliance with such leases or
licenses and, to the best of its knowledge, holds a valid leasehold interest or license free of any
liens, claims or encumbrances.

     3.8 Intellectual Property. To the best of its knowledge, the Company owns or
possesses sufficient legal rights to all patents, trademarks, service marks, trade names,
copyrights, trade secrets, licenses, information and proprietary rights and processes necessary for
its business as now conducted and as proposed to be conducted without any conflict with, or
infringement of the rights of, others.

     3.9 Proprietary Agreements. The Company shall have each officer, employee and consultant
of the Company execute the Company’s standard form of proprietary information and invention
agreements prior to disclosing any proprietary information to any such officer, employee and
consultant.

     3.10 Disclosure. The Company has provided the Investors with all the information
reasonably available to it without undue expense that Investor has requested for deciding whether
to purchase the Shares and all information that the Company believes is reasonably necessary to
enable Investor to make such decision.

SECTION 4

Representations and Warranties of Investor

     Investor hereby represents and warrants to the Company as of the date of this Agreement as
follows:

     4.1 Authorization. Investor has full power and authority to enter into this
Agreement. This Agreement constitutes a valid and legally binding obligation of Investor.

     4.2 Reliance Upon Investor’s Representations. Investor understands that the Shares
are not and the securities issuable upon conversion thereof at the time of issuance may not be,
registered under the Securities Act on the ground that the sale provided for in this Agreement and
the exchange of securities hereunder is exempt from registration under Section 4(2) of the
Securities Act of 1933 (the “Securities Act”), as amended, and that the Company’s reliance on such
exemption(s) is based on Investor’s representations set forth herein.

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     4.3 Receipt of Information. Investor believes it has received all the information it
considers necessary or appropriate for deciding whether to consummate the transaction contemplated
hereunder. Investor further represents that it has had an opportunity to ask questions and receive
answers from the Company regarding the terms and conditions of investment in the Company and the
business, properties, prospects and financial condition of the Company and to obtain additional
information (to the extent the Company possessed such information or could acquire it without
unreasonable effort or expense) necessary to verify the accuracy of any information furnished to
Investor or to which Investor had access. The foregoing, however, does not limit or modify the
representations and warranties of the Company in Section 2 hereof or the right of Investor to rely
thereon.

     4.4 Investment Experience. Investor represents that Investor is experienced in
evaluating and investing in securities of companies in the development stage and acknowledges that
Investor is able to fend for itself, can bear the economic risk of its investment, and has such
knowledge and experience in financial and business matters that it is capable of evaluating the
merits and risks of the investment in the Shares. If other than an individual, Investor also
represents it has not been organized for the purpose of acquiring the Shares.

     4.5 Accredited Investor. Investor is an “Accredited Investor” as defined in Rule
501(a) of Regulation D under the Securities Act.

     4.6 Restricted Securities. Investor understands that the Shares may not be sold,
transferred or otherwise disposed of without registration under the Securities Act or an exemption
therefrom, or compliance with the Securities laws of any applicable jurisdiction and that in the
absence of an effective registration statement covering the Shares or an available exemption from
registration under the Securities Act, the Shares must be held indefinitely. In particular,
Investor is aware that the Shares may not be sold pursuant to Rule 144 promulgated under the
Securities Act unless all of the conditions of that Rule are met. Among the conditions for use of
Rule 144 is the availability of current information to the public about the Company. Such
information is not now available and the Company has no present plans to make such information
available.

     4.7 Legends. To the extent applicable, each certificate or other document evidencing
any of the Shares shall be endorsed with the legends set forth below, and Investor covenants that,
except to the extent such restrictions are waived by the Company, Investor shall not transfer the
shares represented by any such certificate without complying with the restrictions on transfer
described in the legends endorsed on such certificate:

          (a) The following legend under the Act:

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER
THE UNITED STATES SECURITIES ACT OF 1933 OR THE SECURITIES LAWS OF ANY STATE, OR REGION AND
MAY BE OFFERED AND SOLD ONLY IF REGISTERED AND QUALIFIED PURSUANT TO THE RELEVANT PROVISIONS
OF FEDERAL, STATE AND OTHER SECURITIES LAWS OR IF THE COMPANY IS PROVIDED AN OPINION OF
COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION AND

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QUALIFICATION UNDER FEDERAL, STATE AND OTHER SECURITIES LAWS IS NOT REQUIRED.”

          (b) Any legend imposed or required by any applicable state securities laws.

     4.8 Public Sale. Investor agrees not to make, without the prior written consent of
the Company, any public offering or sale of the Shares, although permitted to do so pursuant to
Rule 144(k) promulgated under the Securities Act, until the earlier of (i) the date on which the
Company effects its initial registered public offering pursuant to the Securities Act, (ii) the
date on which it becomes a registered company pursuant to section 12(g) of the United States
Securities Exchange Act of 1934, as amended, or (c) five (5) years after the Closing hereunder.

SECTION 5

Conditions of the Investor’s Obligations at Closing

     The obligations of Investor under subsection 1.1(b) of this Agreement are subject to the
fulfillment on or before the Closing of each of the following conditions:

     5.1 Representations and Warranties. The representations and warranties of the Company
contained in SECTION 3 shall be true on and as of the Closing with the same effect as though such
representations and warranties had been made on and as of the date of the Closing.

     5.2 Due Diligence. The Investors shall have completed their financial and legal due
diligence on the Company to their reasonable satisfaction.

     5.3 Amended and Restated Certificate of Incorporation. The Restated Certificate shall have
been filed with the Secretary of State of Delaware and shall continue to be in full force and
effect as of the Closing.

     5.4 Investors’ Rights Agreement. The Company, the Investors and any other parties
thereto shall have entered into the Investors’ Rights Agreement substantially in the form attached
hereto as Exhibit B.

     5.5 Right of First Refusal and Co-Sale Agreement. The Company, the Investors and any other
parties thereto shall have entered into the Right of First Refusal and Co-Sale Agreement
substantially in the form attached hereto as Exhibit C.

SECTION 6

Conditions of the Company’s Obligations at Closing

     The obligations of the Company to Investor under this Agreement are subject to the fulfillment
on or before the Closing of each of the following conditions by Investor:

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     6.1 Representations and Warranties. The representations and warranties of the
Investor contained in SECTION 4 hereof shall be true on and as of the Closing with the same effect
as though such representations and warranties had been made on and as of the Closing.

     6.2 Qualifications. All authorizations, approvals or permits, if any, of any
governmental authority or regulatory body of the United States or of any state that are required
pursuant to this Agreement shall be duly obtained and effective as of the Closing.

     6.3 Amended and Restated Certificate of Incorporation. The Restated Certificate shall
have been filed with the Secretary of State of Delaware and shall continue to be in full force and
effect as of the Closing.

SECTION 7

Miscellaneous

     7.1 Successors and Assigns. Nothing in this Agreement, express or implied, is
intended to confer upon any party other than the parties hereto or their respective successors and
assigns any rights, remedies, obligations or liabilities under or by reason of this Agreement,
except as expressly provided in this Agreement.

     7.2 Governing Law; Jurisdiction. This Agreement shall be governed by and construed
under the laws of the California as applied to agreements among California residents entered into
and to be performed entirely within the California. Investor specifically consents to the
jurisdiction of the Superior Court located in Santa Clara County, California, or if that Court is
unable to exercise jurisdiction for any reason, to the jurisdiction of the United States Northern
District Court located in Santa Clara County, California, to resolve any dispute or claim under
this Agreement.

     7.3 Counterparts. This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the same
instrument. A facsimile signature page is deemed as an original.

     7.4 Notices, Etc. All notices and other communications required or permitted
hereunder will be in writing, and may be delivered in person, by telecopy, overnight delivery
service or United States mail, in which event they may be mailed by first class, certified or
registered, postage prepaid. All such notices and other communications will be deemed received (x)
in the case of personal delivery, and telecopy, on the date of such delivery, (y) in the case of
overnight delivery service, on the date of such delivery, and (z) in the case of mailing, on the
third business day following the date of such mailing.

     7.5 Amendments and Waivers. Any term of this Agreement may be amended and the
observance of any term of this Agreement may be waived (either generally or in a particular
instance and either retroactively or prospectively), only with the written consent of the Company
and the holders of at least a majority of the Series A Preferred Stock (including Common Stock
issued upon conversion of the Series A Preferred Stock) purchased under this Agreement. Any

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amendment or waiver effected in accordance with this section shall be binding upon the Company
and all holders of any securities purchased or to be purchased under this Agreement (including
securities into which such securities have been converted), provided, however, in no event shall
the obligation of any holder that purchased securities under this Agreement be materially
increased, except upon the written consent of such holder, provided, further, that no amendment or
waiver will be effective as to any non-consenting party that has purchased securities under this
Agreement if such party is treated disproportionately from the consenting holders. Notwithstanding
the foregoing, this Agreement may be amended by the Company alone to add additional Investors
hereto.

     7.6 Severability. If one or more provisions of this Agreement are held to be
unenforceable under applicable law, such provision shall be excluded from this Agreement and the
balance of the Agreement shall be interpreted as if such provision were so excluded and shall be
enforceable in accordance with its terms.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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     IN WITNESS WHEREOF, the parties hereto have duly executed this Series A Preferred Stock
Purchase Agreement as of the date first written above.

	 	 	 	 	 
	BCINET, INC.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Thomas P. Reynolds, President & CEO
	 	 
	 
	 	 	 	 
	OCZ TECHNOLOGY GROUP, INC.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Ryan M. Petersen

President & CEO
	 	 

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Exhibit A

AMENDED AND RESTATED CERTIFICATE OF INCORPORATION

Exhibit A

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Exhibit B

INVESTORS’ RIGHTS AGREEMENT

Exhibit B

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Exhibit C

RIGHT OF FIRST REFUSAL AGREEMENT

Exhibit C

BCInet
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Series A SPASWAV Enterprises Ltd.: Exhibit 10.1

  

Exhibit 10.1  

2009 Incentive Compensation Plan

SWAV ENTERPRISES, LTD.

(the “Company”) 

2009 INCENTIVE COMPENSATION PLAN

1.  

PURPOSE

The purpose of this 2009 Incentive Compensation Plan of SWAV ENTERPRISES, LTD., is to advance the interests of the Company (as herein defined) by encouraging Eligible Employees (as herein defined) to acquire shares of the Company, thereby increasing
their proprietary interest in the Company, encouraging them to remain associated with the Company and furnishing them with additional incentive to advance the interests of the Company in the conduct of their affairs.

2.  

DEFINITIONS

As used herein, the following definitions shall apply:

	
(a) 		
"Administrator" means the Board or a Committee of the Board duly appointed by the Board as the Administrator hereof.

	
	 	 	 
	
(b) 		
"Affiliate" and "Associate" shall have the respective meanings ascribed to such terms in the Securities Act.

	
	 	 	 
	
(c) 		
"Applicable Laws" means the legal requirements relating to the administration of incentive compensation plans, if any, under applicable provisions of federal securities laws, state corporate and securities laws, the
Securities Act, the rules of any applicable stock exchange or national market system, and the rules of any foreign jurisdiction applicable to Awards granted to residents therein.

	
	 	 	 
	
(d) 		
"Award" means the grant of Performance Shares or other right or benefit under the Plan.

	
	 	 	 
	
(e) 		
"Award Agreement" means the written agreement evidencing the grant of an Award executed by the Company and the Grantee, including any amendments thereto.

	
	 	 	 
	
(f) 		
"Board" means the Board of Directors of the Company.

	
	 	 	 
	
(g) 		
"Cause" means, with respect to the termination by the Company or a Related Entity of the Grantee's Continuous Service, that such termination is for `Cause' as such term is expressly defined in a then- effective written
agreement between the Grantee and the Company or such Related Entity, or in the absence of such then-effective written agreement and definition, is based on, in the determination of the Administrator, the Grantee's:

	
	 	 	 
		
(i) 		
refusal or failure to act in accordance with any specific, lawful direction or order of the Company or a Related Entity;

	
	 	 	 
		
(ii) 		
unfitness or unavailability for service or unsatisfactory performance (other than as a result of Disability);

	
	 	 	 
		
(iii) 		
performance of any act or failure to perform any act in bad faith and to the detriment of the Company or a Related Entity;

	
	 	 	 
		
(iv) 		
dishonesty, intentional misconduct or material breach of any agreement with the Company or a Related Entity; or

	

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(v) 		
commission of a crime involving dishonesty, breach of trust, or physical or emotional harm to any person.

	
	 	 	 
	
(h) 		
"Change in Control" means a change in ownership or control of the Company effected through either of the following transactions:

	
	 	 	 
		
(i) 		
the direct or indirect acquisition by any person or related group of persons (other than an acquisition by the Company or by a Company-sponsored employee benefit plan or by a person that directly or indirectly controls, is
controlled by, or is under common control with, the Company) of beneficial ownership of securities possessing more than fifty percent (50%) of the total combined voting power of the Company's outstanding securities pursuant to a tender or exchange
offer made directly to the Company's shareholders which a majority of the Continuing Directors who are not Affiliates or Associates of the offeror do not recommend such shareholders accept, or

	
	 	 	 
		
(ii) 		
a change in the composition of the Board over a period of thirty-six (36) months or less such that a majority of the Board members (rounded up to the next whole number) ceases, by reason of one or more contested elections for
Board membership, to be comprised of individuals who are Continuing Directors.

	
	 	 	 
	
(i) 		
"Committee" means any committee appointed by the Board to administer the Plan.

	
	 	 	 
	
(j) 		
"Common Stock" means the common stock of the Company.

	
	 	 	 
	
(k) 		
"Company" means SWAV ENTERPRISES, LTD., a Nevada company.

	
	 	 	 
	
(l) 		
"Consultant" means any person (other than an Employee or solely with respect to rendering services in such person's capacity as a Director) who is engaged by the Company or any Related Entity to render consulting or
advisory services to the Company or such Related Entity.

	
	 	 	 
	
(m) 		
"Continuing Directors" means members of the Board who either (i) have been Board members continuously for a period of at least thirty-six (36) months or (ii) have been Board members for less than thirty-six (36) months and
were elected or nominated for election as Board members by at least a majority of the Board members described in clause 2.(h)(ii) who were still in office at the time such election or nomination was approved by the Board.

	
	 	 	 
	
(n) 		
"Continuous Service" means that the provision of services to the Company or a Related Entity in any capacity of Employee or Consultant is not interrupted or terminated. Continuous Service shall not be considered interrupted
in the case of (i) any approved leave of absence, (ii) transfers between locations of the Company or among the Company, any Related Entity, or any successor, in any capacity of Employee, Director or Consultant, or (iii) any change in status as long
as the individual remains in the service of the Company or a Related Entity in any capacity of Employee, Director or Consultant (except as otherwise provided in the Award Agreement). An approved leave of absence shall include sick leave, military
leave, or any other authorized personal leave. No such leave may exceed ninety (90) days, unless reemployment upon expiration of such leave is guaranteed by statute or contract.

	
	 	 	 
	
(o) 		
"Corporate Transaction" means any of the following transactions:

	
	 	 	 
		
(i) 		
a merger or consolidation in which the Company is not the surviving entity, except for a transaction the principal purpose of which is to change the jurisdiction in which the Company is organized;

	
	 	 	 
		
(ii) 		
the sale, transfer or other disposition of all or substantially all of the assets of the Company (including the capital stock of the Company's subsidiary corporations) in connection with the complete liquidation or dissolution of
the Company; or

	

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(iii)  

any reverse
merger in which the Company is the surviving entity but in which securities possessing more than fifty percent (50%) of the total combined voting power of the Company's outstanding securities are transferred to a person or persons different from those who held such securities immediately prior to such
merger.

	(p)  

"Director" means a member of the Board or the board of directors of any Related Entity.

	(q)  

"Disability" means that a Grantee is unable to carry out the responsibilities and functions of the position held by the Grantee by reason of any medically determinable physical or mental impairment.
A Grantee will not be considered to have incurred a Disability unless he or she furnishes proof of such impairment sufficient to satisfy the Administrator in its discretion.

	(r)  

"Eligible Employee" means any person who is an Employee or a Consultant.

	(s)  

"Employee" means any person, including an Officer or Director, who is a full-time or part-time employee of the Company or any Related Entity.

	(t)  

"Fair Market Value" means, as of any date, the value of Common Stock determined as follows:

(i)  

Where there
exists a public market for the Common Stock, the Fair Market Value shall be (A) the average closing price for a Share for the last seven (7) market trading days prior to the time of the determination (or, if no closing price was reported on those days, on the last seven trading days on which a closing
price was reported) on the stock exchange determined by the Administrator to be the primary market for the Common Stock or the NASDAQ National Market, whichever is applicable or (B) if the Common Stock is not traded on any such exchange or national
market system, the average of the closing bid and asked prices of a Share on the NASDAQ Small Cap Market for the seven (7) days prior to the time of the determination (or, if no such prices were reported on those days, on the last seven days on
which such prices were reported), in each case, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; or

(ii)   

In the absence of an established market for the Common Stock of the type described in 2.(t)(i), above, the Fair Market Value thereof shall be determined by the Administrator in good faith.

	(u)  

"Grantee" means an Eligible Employee who receives an Award pursuant to an Award Agreement under the Plan.

	(v)  

"Insider" means:

(i)  

a Director or
Senior Officer of the Company;

(ii)   

a Director or Senior Officer of a person that is itself an Insider or Subsidiary of the Company;

(iii)

a person that has:

A.  

direct or
indirect beneficial ownership of,

B.  

control or
direction over, or

	C.  

a combination of direct or indirect beneficial ownership of and control or direction over
securities of the Company carrying more than 10% of the voting rights attached to all the Company's outstanding voting securities, excluding, for   the purpose of the calculation of the percentage held, any securities held by the person as underwriter in the course of a distribution, or

3

		
(iv) 		
the Company itself, if it has purchased, redeemed or otherwise acquired any securities of its own issue, for so long as it continues to hold those securities.

	
	 	 	 
		
(w) 		
"Officer" means a person who is an officer, including a Senior Officer, of the Company or a Related Entity within the meaning prescribed to under the Securities Act and the rules and regulations promulgated thereunder.

	
	 	 	 
	
(x) 		
"Option" means an option to purchase Shares pursuant to an Award Agreement granted under the Plan.

	
	 	 	 
	
(y) 		
"Parent" means a "parent corporation", whether now or hereafter existing, which holds a majority of the voting shares of the Company.

	
	 	 	 
	
(z) 		
"Performance Shares" means Shares or an Award denominated in Shares which may be earned in whole or in part upon attainment of performance criteria established by the Administrator not to exceed an aggregate of 19,607,493
Shares.

	
	 	 	 
	
(aa) 		
"Performance Units" means an Award which may be earned in whole or in part upon attainment of performance criteria established by the Administrator and which may be settled for cash, Shares or other securities or a
combination of cash, Shares or other securities as established by the Administrator.

	
	 	 	 
	
(bb) 		
"Plan" means this 2009 Incentive Compensation Plan as approved by Board consent with effect from September 29, 2009.

	
	 	 	 
	
(cc) 		
"Related Entity" means any Parent, Subsidiary and any business, corporation, partnership, limited liability company or other entity in which the Company, a Parent or a Subsidiary holds a substantial ownership interest,
directly or indirectly.

	
	 	 	 
	
(dd) 		
"Restricted Stock" means Shares issued under the Plan to the Grantee for such consideration, if any, and subject to such restrictions on transfer, rights of first refusal, repurchase provisions, forfeiture provisions, and
other terms and conditions as established by the Administrator.

	
	 	 	 
	
(ee) 		
"SAR" means a stock appreciation right entitling the Grantee to Shares or cash compensation, as established by the Administrator, measured by appreciation in the value of Common Stock.

	
	 	 	 
	
(ff) 		
"Securities Act" means the Securities Act of 1933, as amended.

	
	 	 	 
	
(gg) 		
"Senior Officer" means:

	
	 	 	 
		
(i) 		
the chair or vice chair of the Board, the president, a vice-president, the secretary, the treasurer or the general manager of the Company;

	
	 	 	 
		
(ii) 		
any individual who performs functions for a person similar to those normally performed by an individual occupying any office specified in paragraph 2.(gg)(i) above, and

	
	 	 	 
		
(iii) 		
the five (5) highest paid employees of the Company, including any individual referred to in paragraph 2.(gg)(i) or 2.(gg)(ii) and excluding a commissioned salesperson who does not act in a managerial capacity.

	
	 	 	 
	
(hh) 		
"Share" means a share of the Common Stock.

	

4

 

	
 	
(ii) 		
"Subsidiary" means a "subsidiary corporation", whether now or hereafter existing, as determined by British Columbia corporate law.

	
	 	 	 
	
 	
(jj) 		
"Stock Incentive Plan" means the current stock option plan and any subsequent such plans approved by the shareholders of the Company.

	
	 	 	 
	
 	
(kk) 		
"Related Entity Disposition" means the sale, distribution or other disposition by the Company of all or substantially all of the Company's interests in any Related Entity effected by a sale, merger or consolidation or other
transaction involving that Related Entity or the sale of all or substantially all of the assets of that Related Entity.

	

3.   

OPTIONS ISSUED UNDER THE PLAN
 

All Options issued under the Plan shall be subject to the provisions of the Stock Incentive Plan.

	
4. 		
ADMINISTRATION

	
	 	 	 	 
		
(a) 		
Plan Administrator

	
	 	 	 	 
			
(i) 		
Administration with Respect to Eligible Employees. With respect to grants of Awards to Eligible Employees, the Plan shall be administered by (A) the Board or (B) a Committee designated by the Board, which Committee shall be
constituted in such a manner as to satisfy the Applicable Laws. Once appointed, such Committee shall continue to serve in its designated capacity until otherwise directed by the Board.

	
	 	 	 	 
			
(ii) 		
Administration Errors. In the event an Award is granted in a manner inconsistent with the provisions of this subsection 4(a), such Award shall be presumptively valid as of its grant date to the extent permitted by the
Applicable Laws.

	
	 	 	 	 
		
(b) 		
Powers of the Administrator. Subject to Applicable Laws and the provisions of the Plan (including any other powers given to the Administrator hereunder), and except as otherwise provided by the Board, the Administrator
shall have the authority, in its discretion:

	
	 	 	 	 
			
(i) 		
to select the Eligible Employees to whom Awards may be granted from time to time hereunder;

	
	 	 	 	 
			
(ii) 		
to determine whether and to what extent Awards are granted hereunder;

	
	 	 	 	 
			
(iii) 		
to determine the number of Performance Shares or the amount of other consideration to be covered by each Award granted hereunder;

	
	 	 	 	 
			
(iv) 		
to approve forms of Award Agreements for use under the Plan;

	
	 	 	 	 
			
(v) 		
to determine the terms and conditions of any Award granted hereunder;

	
	 	 	 	 
			
(vi) 		
to suspend the right of an Eligible Employee to receive an Award for any reason that the Administrator considers in the best interest of the Company;

	
	 	 	 	 
			
(vii) 		
to establish additional terms, conditions, rules or procedures to accommodate the rules or laws of applicable foreign jurisdictions and to afford Grantees favourable treatment under such laws; provided, however, that no Award
shall be granted under any such additional terms, conditions, rules or procedures with terms or conditions which are inconsistent with the provisions of the Plan; and

	

5

 

		
 	
(viii) 		
to take such other action, not inconsistent with the terms of the Plan, as the Administrator deems appropriate.

	
	 	 	 	 
	
 	
(c)
		
Effect of Administrator's Decision. All decisions, determinations and interpretations of the Administrator shall be conclusive and binding on all persons. However, the Board reserves the right to override such decisions,
determinations and interpretations of the Administrator.

	

5.  

ELIGIBILITY

Awards may be granted to Eligible Employees. An Eligible Employee, who has been granted an Award may, if otherwise eligible, be granted additional Awards.

	
6. 		
TERMS AND CONDITIONS OF AWARDS

	
	 	 	 
		
(a) 		
Type of Awards. The Administrator is authorized under the Plan to award any type of arrangement to an Eligible Employee that is not inconsistent with the provisions of the Plan and that by its terms involves or might
involve the issuance of (i) Performance Shares, (ii) an Option, (iii) a SAR or similar right with a fixed or variable price related to the Fair Market Value of the Shares and with an exercise or conversion privilege related to the passage of time,
the occurrence of one or more events, or the satisfaction of performance criteria or other conditions, (iv) cash or (v) any other security with the value derived from the value of the Shares. Such Awards may include, without limitation, cash,
Shares, Options, SARs, Restricted Stock, Performance Units or Performance Shares, and an Award may consist of one such security or benefit, or two (2) or more of them in any combination or alternative.

	
	 	 	 
		
(b) 		
Designation of Award. Each Award shall be designated in the Award Agreement.

	
	 	 	 
		
(c) 		
Conditions of Award. Subject to the terms of the Plan and Applicable Laws, the Administrator shall determine the provisions, terms, and conditions of each Award including, but not limited to, the Award vesting schedule,
forfeiture provisions, form of payment (cash, Shares, or other consideration) upon settlement of the Award, and satisfaction of any performance criteria. The performance criteria established by the Administrator may be based on any one of, or
combination of, economic value added, market value added, achievement of individual or corporate objectives, or other measures of performance selected by the Administrator. Partial achievement of the specified criteria may result in a payment or
vesting corresponding to the degree of achievement as specified in the Award Agreement.

	
	 	 	 
		
(d) 		
Acquisitions and Other Transactions. The Administrator may issue Awards under the Plan in settlement, assumption or substitution for, outstanding awards or obligations to grant future awards in connection with the Company
or a Related Entity acquiring another entity, an interest in another entity or an additional interest in a Related Entity whether by merger, stock purchase, asset purchase or other form of transaction.

	
	 	 	 
		
(e) 		
Deferral of Award Payment. The Administrator may establish one or more programs under the Plan to permit selected Grantees the opportunity to elect to defer receipt of consideration upon an Award, satisfaction of
performance criteria, or other event that absent the election would entitle the Grantee to payment or receipt of Shares or other consideration under an Award. The Administrator may establish the election procedures, the timing of such elections, the
mechanisms for payments of, and accrual of interest or other earnings, if any, on amounts, Shares or other consideration so deferred, and such other terms, conditions, rules and procedures that the Administrator deems advisable for the
administration of any such deferral program.

	
	 	 	 
		
(f) 		
Award Exchange Programs. The Administrator may establish one or more programs under the Plan to permit selected Grantees to exchange an Award under the Plan for one or more other types of Awards under the Plan on such terms
and conditions as determined by the Administrator from time to time.

	

6

 

		
(g) 		
Separate Programs. The Administrator may establish one or more separate programs under the Plan for the purpose of issuing particular forms of Awards to one or more classes of Grantees on such terms and conditions as
determined by the Administrator from time to time.

	
	 	 	 	 
		
(h) 		
Term of Award. The term of each Award shall be the term stated in the Award Agreement.

	
	 	 	 	 
		
(i) 		
Transferability of Awards. Awards shall be transferable to the extent provided in the Award Agreement.

	
	 	 	 	 
		
(j) 		
Time of Granting Awards. The date of grant of an Award shall for all purposes be the date on which the Administrator makes the determination to grant such Award, or such other date as is determined by the Administrator.
Notice of the grant determination shall be given to each Employee or Consultant to whom an Award is so granted within a reasonable time after the date of such grant.

	
	 	 	 	 
		
(k) 		
Termination of Continuous Service. If Continuous Service is terminated by the Company or a Related Party for Cause, or by a Grantee voluntarily, any unvested benefits under the Plan will expire. If Continuous Service is
terminated by retirement, death or Disability of a Grantee, or by the Company for other than Cause, unvested benefits will be earned in accordance with the vesting schedule in the Award Agreement.

	
	 	 	 	 
		
(l) 		
Shares Reserved.

	
	 	 	 	 
			
(a) 		
Pool. The aggregate number of shares of Stock that may be issued under this Plan will not exceed 1,200,000 (the “Pool”).

	
	 	 	 	 
			
(b) 		
Adjustments Upon Changes in Stock. In the event of any change in the outstanding Stock of the Company as a result of a stock split, reverse stock split, stock dividend, recapitalization, combination or reclassification, appropriate proportionate adjustments will be made in: (i) the aggregate number of shares
of Stock in the Pool that may be issued hereunder; (ii) other rights and matters determined on a per share basis under this Plan hereunder. Any such adjustments will be made only by the Board, and when so made will be effective, conclusive and
binding for all purposes with respect to this Plan. No such adjustments will be required by reason of the issuance or sale by the Company for cash or other consideration of additional shares of its Stock or securities convertible into or
exchangeable for shares of its Stock.

	
	 	 	 	 
	
7. 		
CONDITIONS UPON ISSUANCE OF SHARES

	
	 	 	 	 
		
(a) 		
Shares shall not be issued pursuant to an Award unless such Award and the issuance and delivery of such Shares pursuant thereto shall comply with all Applicable Laws, and shall be further subject to the approval of counsel for the
Company with respect to such compliance.

	
	 	 	 	 
		
(b) 		
As a condition to an Award, the Company may require the person receiving Performance Shares to represent and warrant at the time of any such Award that the Shares are only for investment and without any present intention to sell
or distribute such Shares if, in the opinion of counsel for the Company, such a representation is required by any Applicable Laws.

	
	 	 	 	 
	
8. 		
CORPORATE TRANSACTIONS/CHANGES IN CONTROL/RELATED ENTITY DISPOSITIONS

	

Except as may be provided in an Award Agreement the Administrator shall have the authority, exercisable either in advance of any actual or anticipated Corporate Transaction, Change in Control or Related Entity Disposition or at the time of an actual
Corporate Transaction, Change in Control or Related Entity Disposition at the time of the grant of an Award under the Plan or any time while an Award remains outstanding, to provide for the full automatic vesting of one or more outstanding unvested
Awards under the Plan and the release from restrictions on transfer and repurchase or forfeiture rights of such Awards in connection with a Corporate Transaction, Change in Control or Related Entity Disposition, on such terms and conditions as the
Administrator may specify. The Administrator also shall have the
authority to condition any such Award vesting or release from such limitations upon the subsequent termination of the Continuous Service of the Grantee within a specified period following the effective date of the Corporate Transaction, Change in
Control or Related Entity Disposition. The Administrator may provide that any Awards so vested or released from such limitations in connection with a Change in Control or Related Entity Disposition shall remain fully vested or released until the
termination of the Award. Effective upon the consummation of a Corporate Transaction, all outstanding Awards under the Plan shall terminate unless assumed by the successor company or its parent.
 

7

9.  

EFFECTIVE DATE AND TERM OF PLAN

The Plan shall become effective as of September 29, 2009. It shall continue in effect until September 30, 2020 unless sooner terminated.

	
10. 		
AMENDMENT, SUSPENSION OR TERMINATION OF THE PLAN

	
	 	 	 
		
(a) 		
The Board may at any time amend, suspend or terminate the Plan. To the extent necessary to comply with Applicable Laws, the Company shall obtain shareholder approval of any Plan amendment in such a manner and to such a degree as
required.

	
	 	 	 
		
(b) 		
No Award may be granted during any suspension of the Plan or after termination of the Plan.

	
	 	 	 
		
(c) 		
Any amendment, suspension or termination of the Plan (including termination of the Plan under Section 10(a), above) shall not affect Awards already granted, and such Awards shall remain in full force and effect as if the Plan had
not been amended, suspended or terminated, unless mutually agreed otherwise between the Grantee and the Administrator, which agreement must be in writing and signed by the Grantee and the Company.

	
	 	 	 
	
11. 		
NO EFFECT ON TERMS OF EMPLOYMENT/CONSULTING RELATIONSHIP

	

The Plan shall not confer upon any Grantee any right with respect to the Grantee's Continuous Service, nor shall it interfere in any way with his or her right or the Company's right to terminate the Grantee's Continuous Service at any time, with or
without Cause.  

12.   

NO EFFECT ON RETIREMENT AND OTHER BENEFIT PLANS
 

Except as specifically provided in a retirement or other benefit plan of the Company or a Related Entity, Awards shall not be deemed compensation for purposes of computing benefits or contributions under any retirement plan of the Company or a
Related Entity, and shall not affect any benefits under any other benefit plan of any kind or any benefit plan subsequently instituted under which the availability or amount of benefits is related to level of compensation.
 

13.

GOVERNING LAW

The Plan shall be governed by the laws of the State of New Jersey and the Federal laws of the United States applicable therein; provided, however, that any Award Agreement may provide by its terms that it shall be governed by the laws of any other
jurisdiction as may be deemed appropriate by the parties thereto.  

8

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