Document:

exhibit10-2.htm

    THE SECURITIES
REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN
CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISTRIBUTION
MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR
AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE COMPANY THAT SUCH
REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933. 

     

    
      	Warrant No.
      _______
	Date of Issuance: ________________, 2010

    

    MTI MICROFUEL CELLS INC. 

     

    Common Stock Warrant 

     

         MTI MicroFuel Cells Inc. (the “Company”), for value received, hereby certifies that
Counter Point Ventures Fund II, LP, or its registered assigns (the “Holder”), is entitled, subject to the terms set
forth below, to purchase from the Company, at any time after the date hereof and
on or before the Expiration Date (as defined in Section 6 below) shares of
capital stock of the Company at an exercise price per share of $0.070 as set
forth herein. This Common Stock Warrant (“Warrant”) is one of a series of Warrants containing
substantially identical terms and conditions issued pursuant to that certain
Common Stock and Warrant Purchase Agreement dated December __, 2009 (the
“Purchase Agreement”). This Warrant is issued pursuant to, and is
subject to the terms and conditions of, the Purchase Agreement.

     

         The shares purchasable upon exercise of this
Warrant are hereinafter referred to as the “Warrant Stock”. 

     

         1. Number and Type of Shares; Purchase
Price. Subject to the terms and conditions
hereinafter set forth, the Holder is entitled, upon surrender of this Warrant,
to purchase from the Company a number of shares of Company Common Stock, par
value $0.01 per share (“Common Stock”), equal to 20% of the number of shares of
Common Stock issued by the Company to the Holder pursuant to the Purchase
Agreement on the Date of Issuance set forth above, rounded down to the nearest
whole share, at a per share purchase price equal to the purchase price per share
of such Common Stock issued to the Holder under the Purchase Agreement (the
“Purchase Price”). 

     

         2. Exercise.

     

              (a) Manner of Exercise.
This Warrant may be exercised by
the Holder, in whole or in part, by surrendering this Warrant, with the
purchase/exercise form appended hereto as Exhibit A duly executed by such Holder or by such Holder’s
duly authorized attorney, at the principal office of the Company, or at such
other office or agency as the Company may designate, accompanied by payment in
full of the Purchase Price payable in respect of the number of shares of Warrant
Stock purchased upon such exercise. The Purchase Price may be paid by cash,
check, wire transfer, or by the surrender of promissory notes or other
instruments representing indebtedness of the Company to the Holder.

     

    

    
    

              (b) Effective Time of Exercise.
Each exercise of this Warrant
shall be deemed to have been effected immediately prior to the close of business
on the day on which this Warrant shall have been surrendered to the Company as
provided in Section 2(a) above. At such time, the person or persons in whose
name or names any certificates for Warrant Stock shall be issuable upon such
exercise as provided in Section 2(d) below shall be deemed to have become the
holder or holders of record of the Warrant Stock represented by such
certificates. 

     

              (c)
Net Issue Exercise.

     

                   (i) In lieu of exercising this Warrant in the manner
provided above in Section 2(a), the Holder may elect to receive shares equal to
the value of this Warrant (or the portion thereof being canceled) by surrender
of this Warrant at the principal office of the Company together with notice of
such election on the purchase/exercise form appended hereto as Exhibit A duly executed by such Holder or such Holder’s duly
authorized attorney, in which event the Company shall issue to such Holder a
number of shares of Warrant Stock computed using the following formula:

     

    
      	X =	     	Y (A - B)	 
	
            	
            	A	
            

    

    
      	Where:	        	X   
      	=    	The
      number of shares of Warrant Stock to be issued to the Holder.
	
            	 	
            	
            	 
	  	
            	Y	=	The
      number of shares of Warrant Stock purchasable under this Warrant (at the
      date of such calculation).
	  	
            	  	  	 
	  	
            	A	=	The
      fair market value of one share of Warrant Stock (at the date of such
      calculation).
	  	
            	  	  	  
	  	
            	B	 =	The
      Purchase Price (as adjusted to the date of such
  calculation).

    

                   (ii) For purposes of this Section 2(c), the fair
market value of Warrant Stock on the date of calculation shall mean with respect
to each share of Warrant Stock: 

     

                             (A) if the exercise is in connection with an initial
public offering of the Company’s Common Stock, and if the Company’s Registration
Statement relating to such public offering has been declared effective by the
Securities and Exchange Commission, then the fair market value shall be the
product of (x) the initial “Price to Public” per share specified in the final
prospectus with respect to the offering and (y) the number of shares of Common
Stock into which each share of Warrant Stock is convertible at the date of
calculation; 

     

                             (B) if (A) is
not applicable, the fair market value of Warrant Stock shall be at the highest
price per share which the Company could obtain on the date of calculation from a
willing buyer (not a current employee or director) for shares of Warrant Stock
sold by the Company, from authorized but unissued shares, as determined in good
faith by the Board of Directors, unless the Company is at such time subject to
an acquisition as described in Section 6 below, in which case the fair market
value of Warrant Stock shall be deemed to be the value received by the holders
of such stock pursuant to such acquisition. 

     

    -2- 

     

    

    
    

     

              (d) Delivery to Holder.
As soon as practicable after the
exercise of this Warrant in whole or in part, and in any event within ten (10)
days thereafter, the Company at its expense will cause to be issued in the name
of, and delivered to, the Holder, or as such Holder (upon payment by such Holder
of any applicable transfer taxes) may direct: 

     

                   (i)
a certificate or certificates for the number of shares of Warrant Stock to which
such Holder shall be entitled; and

     

                   (ii)
in case such exercise is in part only, a new warrant or warrants (dated the date
hereof) of like tenor, calling in the aggregate on the face or faces thereof for
the number of shares of Warrant Stock equal (without giving effect to any
adjustment therein) to the number of such shares called for on the face of this
Warrant minus the number of such shares purchased by the Holder upon such
exercise as provided in Section 2(a) or 2(c) above. 

     

         3.
Adjustments.

     

              (a) Stock Splits and Dividends.
If outstanding shares of the
Company’s Common Stock shall be subdivided into a greater number of shares or a
dividend in Common Stock shall be paid in respect of Common Stock, the Purchase
Price in effect immediately prior to such subdivision or at the record date of
such dividend shall simultaneously with the effectiveness of such subdivision or
immediately after the record date of such dividend be proportionately reduced.
If outstanding shares of Common Stock shall be combined into a smaller number of
shares, the Purchase Price in effect immediately prior to such combination
shall, simultaneously with the effectiveness of such combination, be
proportionately increased. When any adjustment is required to be made in the
Purchase Price, the number of shares of Warrant Stock purchasable upon the
exercise of this Warrant shall be changed to the number determined by dividing
(i) an amount equal to the number of shares issuable upon the exercise of this
Warrant immediately prior to such adjustment, multiplied by the Purchase Price
in effect immediately prior to such adjustment; by (ii) the Purchase Price in
effect immediately after such adjustment. 

     

              (b) Reclassification, Etc.
In case there occurs any
reclassification or change of the outstanding securities of the Company or of
any reorganization of the Company (or any other corporation the stock or
securities of which are at the time receivable upon the exercise of this
Warrant) or any similar corporate reorganization on or after the date
hereof, then
and in each such case the Holder, upon the exercise hereof at any time after the
consummation of such reclassification, change,
or reorganization shall be
entitled to receive, in lieu of the stock or other securities and property
receivable upon the exercise hereof prior to such consummation, the stock or
other securities or property to which such Holder would have been entitled upon
such consummation if such Holder had exercised this Warrant immediately prior
thereto, all subject to further adjustment pursuant to the provisions of this
Section 3; provided, however, that the operation of this Section 3(b) shall not
effect the termination of this Warrant upon a Change of Control (as defined in
Section 6 below) pursuant to Section 6 below.

     

    -3- 

     

    

    
    

              (c) Adjustment Certificate.
When any adjustment is required
to be made in the Warrant Stock or the Purchase Price pursuant to this Section
3, the Company shall promptly mail to the Holder a certificate setting forth (i)
a brief statement of the facts requiring such adjustment; (ii) the Purchase
Price after such adjustment; and (iii) the kind and amount of stock or other
securities or property into which this Warrant shall be exercisable after such
adjustment. 

     

         4.
Transfers.

     

              (a) Unregistered Security.
Each holder of this Warrant
acknowledges that this Warrant and the Warrant Stock of the Company have not
been registered under the Securities Act of 1933, as amended (the “Securities Act”), and agrees not to sell, pledge, distribute, offer
for sale, transfer or otherwise dispose of this Warrant or any Warrant Stock
issued upon its exercise in the absence of (i) an effective registration
statement under the Act as to this Warrant or such Warrant Stock and
registration or qualification of this Warrant or such Warrant Stock under any
applicable U.S. federal or state securities law then in effect; or (ii) an
opinion of counsel, satisfactory to the Company, that such registration and
qualification are not required. Each certificate or other instrument for Warrant
Stock issued upon the exercise of this Warrant shall bear a legend substantially
to the foregoing effect. 

     

              (b) Transferability.
The Holder may not assign,
pledge, or otherwise transfer this Warrant without the prior written consent of
the Company. Subject to the preceding sentence, this Warrant may be transferred
only upon surrender of the original Warrant for registration of transfer, duly
endorsed, or accompanied by a duly executed written instrument of transfer in
form satisfactory to the Company. Thereupon, a new warrant in substantially the
form hereof will be issued to, and registered in the name of, the
transferee. 

     

              (c) Warrant Register.
The Company will maintain a
register containing the names and addresses of the Holders of this Warrant.
Until any transfer of this Warrant is made in the warrant register, the Company
may treat the Holder of this Warrant as the absolute owner hereof for all
purposes; provided, however, that if this Warrant is properly assigned in blank,
the Company may (but shall not be required to) treat the bearer hereof as the
absolute owner hereof for all purposes, notwithstanding any notice to the
contrary. Any Holder may change such Holder’s address as shown on the warrant
register by written notice to the Company requesting such change. 

     

         5.
No Impairment.
The Company will not, by
amendment of its charter or through reorganization, consolidation, merger,
dissolution, sale of assets or any other voluntary action, avoid or seek to
avoid the observance or performance of any of the terms of this Warrant, but
will (subject to Section 14 below) at all times in good faith assist in the
carrying out of all such terms and in the taking of all such action as may be
necessary or appropriate in order to protect the rights of the holder of this
Warrant against impairment. 

     

         6.
Termination. This
Warrant (and the right to purchase securities upon exercise hereof) shall
automatically terminate upon the earliest to occur of the following (the
“Expiration Date”): (a) the five (5) year anniversary of the Date of
Issuance of this Warrant; (b)
immediately prior to a Change of
Control; or (c) the closing of a firm commitment underwritten public offering
pursuant to a registration statement
under the Securities Act.

     

    -4- 

     

    

    
    

         The
term “Change of Control” shall mean the sale, conveyance or other
disposition of all or substantially all of the Company’s property or business or
the Company’s merger with or into or consolidation with any other corporation,
limited liability company or other entity (other than a wholly owned subsidiary
of the Company), provided that the term “Change of Control” shall not include a
merger of the Company effected exclusively for the purpose of changing the
domicile of the Company, to an equity financing in which the Company is the
surviving corporation, or to a transaction in which the stockholders of the
Company immediately prior to the transaction own 50% or more of the voting power
of the surviving corporation following the transaction.

     

         7.
Notices of Certain
Transactions.
In case: 

     

              (a) the Company shall take a record of the holders of
its Common Stock (or other stock or securities at the time deliverable upon the
exercise of this Warrant) for the purpose of entitling or enabling them to
receive any dividend or other distribution, or to receive any right to subscribe
for or purchase any shares of stock of any class or any other securities, or to
receive any other right, to subscribe for or purchase any shares of stock of any
class or any other securities, or to receive any other right; 

     

              (b) of any capital reorganization of the Company, any
reclassification of the capital stock of the Company, any consolidation or
merger of the Company, any consolidation or merger of the Company with or into
another corporation (other than a consolidation or merger in which the Company
is the surviving entity), or any transfer of all or substantially all of the
assets of the Company;

     

              (c) of the voluntary or involuntary dissolution,
liquidation or winding-up of the Company; or 

     

              (d)
of any redemption of the Common Stock;

     

    then, and in each such case,
the Company will mail or cause to be mailed to the Holder of this Warrant a
notice specifying, as the case may be, (i) the date on which a record is to be
taken for the purpose of such dividend, distribution or right, and stating the
amount and character of such dividend, distribution or right; or (ii) the
effective date on which such reorganization, reclassification, consolidation,
merger, transfer, dissolution, liquidation, winding-up, redemption or conversion
is to take place, and the time, if any is to be fixed, as of which the holders
of record of Common Stock (or such other stock or securities at the time
deliverable upon such reorganization, reclassification, consolidation, merger,
transfer, dissolution, liquidation, winding-up, redemption or conversion) are to
be determined. Such notice shall be mailed at least ten (10) days prior to the
record date or effective date for the event specified in such notice.

     

         8.
Reservation of Stock.
The Company will at all times
reserve and keep available, solely for the issuance and delivery upon the
exercise of this Warrant, such shares of Warrant Stock and other stock,
securities and property, as from time to time shall be issuable upon the
exercise of this Warrant.  

     

    -5- 

     

    

    
    

    
           9.
Exchange of Warrants. Upon
the surrender by the Holder of any Warrant or Warrants, properly
endorsed, to the Company at the principal office of the Company, the Company
will, subject to the provisions of Section 4 hereof, issue and deliver to
or upon the order of such Holder, at the Company’s expense, a new Warrant or
Warrants of like tenor, in the name of such Holder or as such Holder (upon
payment by such Holder of any applicable transfer taxes) may direct, calling in
the aggregate on the face or faces thereof for the number of shares of Warrant
Stock called for on the face or faces of the Warrant or Warrants so surrendered.

    

     

         10. Replacement of Warrants.
Upon receipt of evidence
reasonably satisfactory to the Company of the loss, theft, destruction or
mutilation of this Warrant and (in the case of loss, theft or destruction) upon
delivery of an indemnity agreement (with surety if reasonably required) in an
amount reasonably satisfactory to the Company, or (in the case of mutilation)
upon surrender and cancellation of this Warrant, the Company will issue, in lieu
thereof, a new Warrant of like tenor. 

     

         11. Mailing of Notices.
Any notice required or permitted
pursuant to this Warrant shall be in writing and shall be deemed sufficient upon
receipt, when delivered personally or sent by courier, three days after deposit
with an overnight delivery service, or confirmed facsimile, addressed (a) if to
the Holder, to the address of the Holder most recently furnished in writing to
the Company; and (b) if to the Company, to the address set forth below or
subsequently modified by written notice to the Holder. 

     

         12. No Rights as Stockholder.
Until the exercise of this
Warrant, the Holder of this Warrant shall not have or exercise any rights by
virtue hereof as a stockholder of the Company. 

     

         13. No Fractional Shares. No
fractional shares of Warrant Stock will be issued in connection with any
exercise hereunder. In lieu of any fractional shares which would otherwise be
issuable, the Company shall pay cash equal to the product of such fraction
multiplied by the fair market value of one share of Warrant Stock on the date of
exercise, as determined in good faith by the Company’s Board of Directors.

     

         14. Amendment or Waiver. Any
term of this Warrant may be amended or waived upon written consent of the
Company and the holders of at least a majority of the Warrant Stock issuable
upon exercise of outstanding warrants purchased pursuant to the Purchase
Agreement. By acceptance hereof, the Holder acknowledges that in the event the
required consent is obtained, any term of this Warrant may be amended or waived
with or without the consent of the Holder; provided, however, that any amendment hereof that would materially
adversely affect the Holder in a manner different from the holders of the
remaining warrants issued pursuant to the Purchase Agreement shall also require
the consent of Holder. 

     

         15. Headings.
The headings in this Warrant are
for purposes of reference only and shall not limit or otherwise affect the
meaning of any provision of this Warrant. 

     

         16. Governing Law. This
Warrant shall be governed, construed and interpreted in accordance with the laws
of the State of Delaware, without giving effect to principles of conflicts of
law.

     

         17.
Counterparts.
This Warrant may be executed in
counterparts and by facsimile, each of which will be deemed to be an original
and all of which together will constitute a single agreement. 

     

    [Signature Page Follows]

     

    -6- 

     

    

    
    

     

         This Common Stock
Warrant was executed as of the date first above written. 

     

    
      	
            	COMPANY:
	 	  
	
            	MTI MICROFUEL CELLS INC.
	
            	    
	
            	 	 
	
            	Peng K. Lim
	
            	Chief Executive Officer
	
            	 
	
            	Address:

    

    
      	AGREED TO AND ACCEPTED:
	  
	HOLDER:
	  
	COUNTER POINT VENTURES FUND II,
    LP
	 
	   
	Walter L. Robb, General Partner
	
            	 
	Address:     	c/o
      Vantage Management, Inc.
	  	3000
      Troy Schenectady Road
	 	Schenectady, NY
12309

    

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    SIGNATURE PAGE TO COMMON STOCK WARRANT

     

    

    
    

    EXHIBIT A 

     

    PURCHASE/EXERCISE FORM 

     

    
    

     

    
      	To: MTI MICROFUEL CELLS INC.	Dated:
  ________________

    

         

         The undersigned,
pursuant to the provisions set forth in the attached Warrant No. _______, hereby
irrevocably elects to (i) purchase __________ shares of the _________ Stock
covered by such Warrant and herewith makes payment of $ __________, representing
the full purchase price for such shares at the price per share provided for in
such Warrant; or (ii) exercise such Warrant for __________ shares purchasable
under the Warrant pursuant to the Net Issue Exercise provisions of Section 2(c)
of such Warrant. 

     

         The undersigned acknowledges that it has reviewed the
representations and warranties contained in Section 4 of the Purchase Agreement
(as defined in the Warrant) and by its signature below hereby makes such
representations and warranties to the Company. Defined terms contained in such
representations and warranties shall have the meanings assigned to them in the
Purchase Agreement, provided that the term “Purchaser” shall refer to the
undersigned and the term “Securities” shall refer to the Warrant Stock and the
Common Stock of the Company issuable upon conversion of the Warrant Stock, if
applicable. 

     

          The undersigned further acknowledges that it has
reviewed the lock-up agreement set forth in Section 7 of the Purchase Agreement,
and agrees to be bound by such provisions. 

     

    
      	 	Print Name of
Holder	 
	 	 	 
	 	Signature
	 	 	 
	 	Print Name and Title of Signatory (if
      entity)fs1a1ex10i_peoplestring.htm

    
      Exhibit
10.1

       

      

       

      PEOPLESTRING
CORPORATION

       

      2009
EQUITY INCENTIVE PLAN

       

       

       

       

       

       

       

       

      
 

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      PEOPLESTRING
CORPORATION

       

      2009
EQUITY INCENTIVE PLAN

       

      

       

      1. Definitions

       

      In addition to other terms defined
herein, the following terms shall have the meanings given below:

       

      (a) Administrator means
the Board, and, upon its delegation of all or part of its authority to
administer the Plan to the Committee, the Committee.

       

      (b) Affiliate means any
Subsidiary of the Corporation, and also includes any other business entity which
is controlled by, under common control with or controls the Corporation; provided, however,
that the term “Affiliate” shall be construed in a manner in accordance with the
registration provisions of applicable federal securities laws.

       

      (c) Award means,
individually or collectively, a grant under the Plan of an Option (including an
Incentive Option, Nonqualified Option or a Director Option); a Stock
Appreciation Right (including a Related SAR or a Freestanding SAR); a Restricted
Award (including a Restricted Stock Award or a Restricted Unit Award); a
Performance Award (including a Performance Share Award or a Performance Unit
Award); a Phantom Stock Award; a Dividend Equivalent Award; or any other award
granted under the Plan.

       

      (d) Award Agreement means
an agreement (which may be in written or electronic form, in the Administrator’s
discretion, and which includes any amendment or supplement thereto) between the
Corporation and a Participant specifying the terms, conditions and restrictions
of an Award granted to the Participant. An Agreement may also state such other
terms, conditions and restrictions, including, but not limited to, terms,
conditions and restrictions applicable to shares or any other benefit underlying
an Award, as may be established by the Administrator.

       

      (e) Board or Board of
Directors means the Board of Directors of the Corporation.

       

      (f) Cause shall mean,
unless the Administrator determines otherwise, a Participant’s termination of
employment or service resulting from the Participant’s (i) termination for
“cause” as defined under the Participant’s employment, consulting or other
agreement with the Corporation or an Affiliate, if any, or (ii) if the
Participant has not entered into any such employment, consulting or other
agreement (or if any such agreement does not address the effect of a “cause”
termination), then the Participant’s termination shall be for “Cause” if
termination results due to the Participant’s (A) dishonesty; (B) refusal to
perform his or her duties for the Corporation; (C) engaging in fraudulent
conduct; or (D) engaging in any conduct that could be materially damaging to the
Corporation without a reasonable good faith belief that such conduct was in the
best interest of the Corporation. The determination of “Cause” shall be made by
the Administrator and its determination shall be final and
conclusive.

       

       

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

       

      (g) Change in
Control:

       

      (i) General: Except as may be
otherwise provided in an individual Award Agreement or as may be otherwise
required in order to comply with Code Section 409A, a “Change in Control” shall
be deemed to have occurred on the earliest of the following dates:

       

      (A) The date
any entity or person shall have become the beneficial owner of, or shall have
obtained voting control over, 50% or more of the outstanding Common Stock of the
Corporation;

       

      (B) The date
the stockholders of the Corporation approve a definitive agreement (I) to merge
or consolidate the Corporation with or into another corporation or other
business entity (each, a “corporation”), in which the Corporation is not the
continuing or surviving corporation or pursuant to which any shares of Common
Stock of the Corporation would be converted into cash, securities or other
property of another corporation, other than a merger or consolidation of the
Corporation in which the holders of Common Stock immediately prior to the merger
or consolidation continue to own at least 50% of Common Stock after the merger
or consolidation, or if the Corporation is not the surviving corporation, at
least 50% of the common stock (or other voting securities) of the surviving
corporation immediately after the merger; provided, however, that if
consummation of such merger or consolidation is subject to the approval of
federal, state or other regulatory authorities, then, unless the Administrator
determines otherwise, a “Change in Control” shall not be deemed to occur until
the later of the date of stockholder approval of such merger or consolidation or
the date of final regulatory approval of such merger or consolidation; or (II)
to sell or otherwise dispose of all or substantially all the assets of the
Corporation; or

       

      (C) The date
there shall have been a change in a majority of the Board of Directors of the
Corporation within a 12-month period unless the nomination for election by the
Corporation’s stockholders of each new Director was approved by the vote of
two-thirds of the members of the Board (or a committee of the Board, if
nominations are approved by a Board committee rather than the Board) then still
in office who were in office at the beginning of the 12-month
period.

       

      (For the
purposes herein, the term “person” shall mean any individual, corporation,
partnership, group, association or other person, as such term is defined in
Section 13(d)(3) or Section 14(d)(2) of the Exchange Act, other than the
Corporation, a Subsidiary of the Corporation or any employee benefit plan(s)
sponsored or maintained by the Corporation or any Subsidiary thereof, and the
term “beneficial owner” shall have the meaning given the term in Rule 13d-3
under the Exchange Act.)

       

      The
Administrator shall have full and final authority, in its discretion, to
determine whether a Change in Control of the Corporation has occurred pursuant
to the above definition, the date of the occurrence of such Change in Control
and any incidental matters relating thereto.

       

       

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      (ii) Definition Applicable to Awards
subject to Code Section 409A: Notwithstanding the preceding provisions of
Section 1(g)(i), in the event that any Awards granted under the Plan are deemed
to be deferred compensation subject to the provisions of Code Section 409A, then
distributions related to such Awards may be permitted, in the Administrator’s
discretion, upon the occurrence of one or more of the following events (as they
are defined and interpreted under Code Section 409A, related regulations, or
other guidance): (A) a change in the ownership of the Corporation, (B) a change
in effective control of the Corporation, or (C) a change in the ownership of a
substantial portion of the assets of the Corporation.

       

      (h) Code means the
Internal Revenue Code of 1986, as amended.

       

      (i) Committee means the
Compensation Committee of the Board appointed to administer the
Plan.

       

      (j) Common Stock means
the common stock of PeopleString Corporation, par value $.0001 per
share.

       

      (k) Corporation means
PeopleString Corporation, a Delaware corporation, together with any successor
thereto.

       

      (l) Covered Employee
shall have the meaning given the term in Section 162(m) of the Code and related
regulations.

       

      (m) Director means a
member of the Board or a member of the board of directors of an
Affiliate.

       

      (n) Director Option means
an Option granted to a Nonemployee Director of the Corporation as provided in
Section 8.

       

      (o) Disability shall,
except as may be otherwise determined by the Administrator or required under
Code Section 409A or related regulations or other guidance, have the meaning
given in any employment agreement, consulting agreement or other similar
agreement, if any, to which a Participant is a party, or, if there is no such
agreement (or if any such agreement does not address the effect of termination
due to disability), “Disability” shall mean:  (i) a Participant’s
inability to perform the functions, duties and responsibilities which he or she
had been performing for the Corporation or an Affiliate for a continuous period
of not less than 6 months due to physical or mental reasons, (ii) it is
determined by a licensed physician acceptable to the Corporation that it is
likely such inability will continue after the conclusion of the six month
period, and (iii) as a result of such physical or mental ailment, the
Participant’s employment with the Corporation or an Affiliate will cease. The
Administrator shall have discretion to determine if a termination due to
Disability has occurred.

       

      (p) Displacement shall,
as applied to any Participant, have the meaning given in any employment
agreement, consulting agreement or other similar agreement, if any, to which the
Participant is a party, or, if there is no such agreement (or if any such
agreement does not address the effect of a termination due to displacement),
“Displacement” shall mean the termination of the Participant’s employment or
service due to the elimination of the Participant’s job or position without
fault on the part of the Participant (as determined by the
Administrator).

       

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

       

      (q) Dividend Equivalent
Award means a right granted to a Participant pursuant to Section 13 to
receive the equivalent value (in cash or shares of Common Stock) of dividends
paid on Common Stock.

       

      (r) Effective Date means
the effective date of the Plan, as provided in Section 4.

       

      (s) Election shall have
the meaning set forth in Section 19(b).

       

      (t) Employee means any
person who is an employee of the Corporation or any Affiliate (including
entities which become Affiliates after the Effective Date of the Plan). For this
purpose, an individual shall be considered to be an Employee only if there
exists between the individual and the Corporation or an Affiliate the legal and
bona fide relationship of employer and employee; provided, however, that, with
respect to Incentive Options, “Employee” means any person who is considered an
employee of the Corporation or any Subsidiary for purposes of Treas. Reg.
Section 1.421-1(h) (or any successor provision related thereto).

       

      (u) Exchange Act means
the Securities Exchange Act of 1934, as amended.

       

      (v) Fair Market Value per
share of the Common Stock shall be established in good faith by the
Administrator and, except as may otherwise be determined by the Administrator,
the Fair Market Value shall be determined in accordance with the following
provisions: (i) if the shares of Common Stock are listed for trading on the New
York Stock Exchange or the American Stock Exchange, the Fair Market Value shall
be the closing sales price per share of the shares on the New York Stock
Exchange or the American Stock Exchange (as applicable) on the date immediately
preceding the date an Option is granted or other determination is made (such
date of determination being referred to herein as a “valuation date”), or, if
there is no transaction on such date, then on the trading date nearest preceding
the valuation date for which closing price information is available, and, provided further, if
the shares are quoted on the Nasdaq National Market or the Nasdaq Capital Market
of the Nasdaq Stock Market but are not listed for trading on the New York Stock
Exchange or the American Stock Exchange, the Fair Market Value shall be the
closing sales price for such stock (or the closing bid, if no sales were
reported) as quoted on such system on the valuation date or the date immediately
or nearest preceding the valuation date for which such information is available;
or (ii) if the shares of Common Stock are not listed or reported in any of the
foregoing, then the Fair Market Value shall be determined by the Administrator
based on such valuation measures or other factors as it deems appropriate (provided, however,
that, (A) with respect to the grant of Incentive Options, the Fair Market Value
shall be determined by the Administrator in accordance with the applicable
provisions of Section 20.2031-2 of the Federal Estate Tax Regulations, or in any
other manner consistent with the Code Section 422 and accompanying regulations;
and (B) to the extent, if any, required by Code Section 409A, Fair Market Value
shall be determined in accordance with Section 409A, related regulations, or
other guidance).

       

      (w) FICA Amount shall
have the meaning set forth in Section 18(b)(iii)(C).

       

      (x) Freestanding SAR
means a SAR that is granted without relation to an Option, as provided in
Section 9.

       

       

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

       

      (y) Incentive Option
means an Option that is designated by the Administrator as an Incentive Option
pursuant to Section 7 and intended to meet the requirements of incentive stock
options under Code Section 422 and related regulations.

       

      (z) Nonemployee Director
means a Director of the Board who is not an Employee of the Corporation or an
Affiliate and who is eligible to receive a Director Option pursuant to Section
8.

       

      (aa) Nonqualified Option
means an Option granted under Section 7 or Section 8 that is not intended to
qualify as an incentive stock option under Code Section 422 and related
regulations.

       

      (bb) Option means a stock
option granted under Section 7 or Section 8 that entitles the holder to purchase
from the Corporation a stated number of shares of Common Stock at the price set
forth in an Award Agreement.

       

      (cc) Option Period means
the term of an Option, as provided in Section 7(d) and Section
8(d).

       

      (dd) Option Price means
the price at which an Option may be exercised, as provided in Section 7(b) and
Section 8(c).

       

      (ee) Participant means an
individual employed by, or providing services to, the Corporation or an
Affiliate, and who satisfies the requirements of Section 6 and is selected by
the Administrator to receive an Award under the Plan.

       

      (ff) Performance Award
means a Performance Share Award and/or a Performance Unit Award, as provided in
Section 11.

       

      (gg) Performance Measures
mean one or more performance factors which may be established by the
Administrator with respect to an Award.  Performance factors may be
based on such corporate, business unit or division and/or individual performance
factors and criteria as the Administrator in its discretion may deem
appropriate; provided, however, that, such
performance factors shall be limited to one or more of the following (as
determined by the Administrator in its discretion): (i) cash flow; (ii) return
on equity; (iii) return on assets; (iv) earnings per share; (v) achievement of
operational milestones; (vi) operations expense efficiency milestones; (vii)
consolidated earnings before or after taxes (including earnings before interest,
taxes, depreciation and amortization); (viii) net income; (ix) operating income;
(x) book value per share; (xi) return on investment; (xii) return on capital;
(xiii) improvements in capital structure; (xiv) expense management; (xv)
profitability of an identifiable business unit or product; (xvi) maintenance or
improvement of profit margins; (xvii) stock price or total stockholder return;
(xviii) market share; (xix) costs; (xx) working capital; (xxi) economic wealth
created; (xxii) strategic business criteria; (xxiii) efficiency ratio(s); (xxiv)
achievement of division, group, function or corporate financial, strategic or
operational goals; (xxv) comparisons with stock market indices or performances
of metrics of peer companies; and (xxvi) any other performance criteria
established by the Administrator from time to time which is not inconsistent
with the other performance criteria set forth herein. To the extent that Section
162(m) of the Code is applicable, the Administrator shall, within the time and
in the manner prescribed by 

       

      
        
           

        

        
          5

          
            

          

        

        
           

        

         

        Section
162(m) of the Code and related regulations, define in an objective fashion the
manner of calculating the Performance Measures it selects to use for
Participants during any specific performance period. Such performance factors
may be adjusted or modified due to extraordinary items, transactions, events or
developments, or in recognition of, or in anticipation of, any other unusual or
nonrecurring events affecting the Corporation or the financial statements of the
Corporation, or in response to, or in anticipation of, changes in applicable
laws, regulations, accounting principles or business conditions, in each case as
determined by the Administrator.

      

       

      (hh) Performance Share
means an Award granted under Section 11, in an amount determined by the
Administrator and specified in an Award Agreement, stated with reference to a
specified number of shares of Common Stock, that entitles the holder to receive
shares of Common Stock, a cash payment or a combination of Common Stock and cash
(as determined by the Administrator), subject to the terms of the Plan and the
terms and conditions established by the Administrator.

       

      (ii) Performance Unit
means an Award granted under Section 11, in an amount determined by the
Administrator and specified in an Award Agreement, that entitles the Participant
to receive shares of Common Stock, a cash payment or a combination of Common
Stock and cash (as determined by the Administrator), subject to the terms of the
Plan and the terms and conditions established by the Administrator.

       

      (jj) Phantom Stock Award
means an Award granted under Section 12, that entitles the Participant to a
payment in cash, shares of Common Stock or a combination of cash and Common
Stock (as determined by the Administrator), following the completion of the
applicable vesting period and compliance with the terms of the Plan and other
terms and conditions established by the Administrator. The unit value of a
Phantom Stock Award shall be based on the Fair Market Value of a share of Common
Stock.

       

      (kk) Plan means the
PeopleString Corporation 2009 Equity Incentive Plan, as it may be hereafter
amended and/or restated.

       

      (ll) Related Option shall
have the meaning set forth in Section 9(a).

       

      (mm) Related SAR means a
SAR granted under Section 9 that is granted in relation to a particular Option
and can be exercised only upon the surrender to the Corporation, unexercised, of
that portion of the Option to which the SAR relates.

       

      (nn) Restricted Award
means a Restricted Stock Award and/or a Restricted Stock Unit Award, as provided
in Section 10.

       

      (oo) Restricted Stock
Award means shares of Common Stock awarded to a Participant under Section
10.  Shares of Common Stock subject to a Restricted Stock Award shall
cease to be restricted when, in accordance with the terms of the Plan and the
terms and conditions established by the Administrator, the shares vest and
become transferable and free of substantial risks of forfeiture.

       

       

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

       

      (pp) Restricted Stock Unit
means a Restricted Award granted to a Participant pursuant to Section 10 which
is settled (i) by the delivery of one share of Common Stock for each Restricted
Stock Unit, (ii) in cash in an amount equal to the Fair Market Value of one
share of Common Stock for each Restricted Stock Unit, or (iii) in a combination
of cash and Shares equal to the Fair Market Value of one share of Common Stock
for each Restricted Stock Unit, as determined by the Administrator. A Restricted
Stock Unit Award represents the promise of the Corporation to deliver shares,
cash or a combination thereof, as applicable, at the end of the Restriction
Period, subject to compliance with the terms of the Plan and the terms and
conditions established by the Administrator.

       

      (qq) Restriction Period
shall have the meaning set forth in Section 10(a).

       

      (rr) Retirement shall, as
applied to any Participant, be as defined in any employment agreement,
consulting agreement or other similar agreement, if any, to which the
Participant is a party, or, if there is no such agreement (or if any such
agreement does address the effect of termination due to retirement),
“Retirement” shall mean retirement in accordance with the retirement policies
and procedures established by the Corporation, as determined by the
Administrator.

       

      (ss) SAR means a stock
appreciation right granted under Section 9 entitling the Participant to receive,
with respect to each share of Common Stock encompassed by the exercise of such
SAR, the excess of the Fair Market Value on the date of exercise over the SAR
base price, subject to the terms of the Plan and any other terms and conditions
established by the Administrator. References to “SARs” include both Related SARs
and Freestanding SARs, unless the context requires otherwise.

       

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

       

      (uu) Subsidiary means a
“subsidiary corporation,” whether now or hereafter existing, as defined in
Section 424(f) of the Code.

       

      (vv) Termination Date
means the date of termination of a Participant’s employment or service for any
reason, as determined by the Administrator in its sole discretion.

       

      2. Purpose

       

      The purpose of the Plan is to encourage
and enable selected Employees and Directors of the Corporation and its
Affiliates to acquire or to increase their holdings of Common Stock of the
Corporation and other proprietary interests in the Corporation in order to
promote a closer identification of their interests with those of the Corporation
and its stockholders, thereby further stimulating their efforts to enhance the
efficiency, soundness, profitability, growth and stockholder value of the
Corporation. This purpose will be carried out through the granting of Awards to
selected Employees and Directors, including the granting to selected
Participants of Options in the form of Incentive Stock Options and Nonqualified
Options; SARs in the form of Related SARs and Freestanding SARs; Restricted
Awards in the form of Restricted Stock Awards and Restricted Stock Units;
Performance Awards in the form of Performance Shares and Performance Units;
Phantom Stock Awards; Director Options; and/or Dividend Equivalent
Awards.

       

      

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

       

      3. Administration
of the Plan

       

      (a) The Plan
shall be administered by the Board of Directors of the Corporation or, upon its
delegation, by the Committee. Unless the Board determines otherwise, the
Committee shall be comprised solely of two or more “non-employee directors,” as
such term is defined in Rule 16b-3 under the Exchange Act, or as may otherwise
be permitted under Rule 16b-3. Further, to the extent required by Section 162(m)
of the Code and related regulations, the Plan shall be administered by a
committee comprised of two or more “outside directors” (as such term is defined
in Section 162(m) or related regulations) or as may otherwise be permitted under
Section 162(m) and related regulations. For the purposes of the Plan, the term
“Administrator” shall refer to the Board and, upon its delegation to the
Committee of all or part of its authority to administer the Plan, to the
Committee. Notwithstanding the foregoing, the Board shall have sole authority to
grant discretionary Awards (that is, Awards other than Director Options) to
Directors who are not employees of the Corporation or its
Affiliates.

       

      (b) Subject
to the provisions of the Plan, the Administrator shall have full and final
authority in its discretion to take any action with respect to the Plan
including, without limitation, the authority (i) to determine all matters
relating to Awards, including selection of individuals to be granted Awards, the
types of Awards, the number of shares of Common Stock, if any, subject to an
Award, and all terms, conditions, restrictions and limitations of an Award; (ii)
to prescribe the form or forms of Award Agreements evidencing any Awards granted
under the Plan; (iii) to establish, amend and rescind rules and regulations for
the administration of the Plan; and (iv) to construe and interpret the Plan,
Awards and Award Agreements made under the Plan, to interpret rules and
regulations for administering the Plan and to make all other determinations
deemed necessary or advisable for administering the Plan. Except to the extent
otherwise required under Code Section 409A, related regulations, or other
guidance, (i) the Administrator shall have the authority, in its sole
discretion, to accelerate the date that any Award which was not otherwise
exercisable, vested or earned shall become exercisable, vested or earned in
whole or in part without any obligation to accelerate such date with respect to
any other Award granted to any recipient; and (ii) the Administrator also may in
its sole discretion modify or extend the terms and conditions for exercise,
vesting or earning of an Award. The Administrator may determine that a
Participant’s rights, payments and/or benefits with respect to an Award
(including, but not limited to, any shares issued or issuable and/or cash paid
or payable 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 other applicable vesting or performance conditions of
an Award. Such events may include, but shall not be limited to, termination of
employment for cause, violation of policies of the Corporation or an Affiliate,
breach of non-solicitation, noncompetition, confidentiality or other restrictive
covenants that may apply to the Participant, or other conduct by the Participant
that is determined by the Administrator to be detrimental to the business or
reputation of the Corporation or any Affiliate. In addition, the Administrator
shall have the authority and discretion to establish terms and conditions of
Awards as the Administrator determines to be necessary or appropriate to conform
to the applicable requirements or practices of jurisdictions outside of the
United States. In addition to action by meeting in accordance with applicable
laws, any action of the Administrator with respect to the Plan may be taken by a
written instrument signed by all of the members of the Board or Committee, as
appropriate, and any such action so taken by written consent shall be as fully
effective as if it had been taken by a majority of the members at a meeting duly
held and called. 

       

       

      
        
           

        

        
          8

          
            

          

        

        
           

        

         

        No member
of the Board or Committee, as applicable, shall be liable while acting as
Administrator for any action or determination made in good faith with respect to
the Plan, an Award or an Award Agreement. The members of the Board or Committee,
as applicable, shall be entitled to indemnification and reimbursement in the
manner provided in the Corporation’s certificate of incorporation and by-laws
and/or under applicable law.

      

       

      4. Effective
Date

       

      The Effective Date of the Plan shall be
May 18, 2009; provided, that the
stockholders of the Corporation approve the Plan on such date.  If the
stockholders of the Corporation do not approve the Plan on May 18, 2009, the
Effective Date of the Plan will be the date that the Plan is approved by the
stockholders of the Corporation.  Awards may be granted under the Plan
on and after the Effective Date, but not after the date that is the tenth
anniversary less one day after the Effective Date.  Awards that are
outstanding at the end of the Plan term (or such earlier termination date as may
be established by the Board pursuant to Section 15(a)) shall continue in
accordance with their terms, unless otherwise provided in the Plan or an Award
Agreement.

       

      5. Shares
of Stock Subject to the Plan; Award Limitations

       

      (a) Shares of Stock Subject to the
Plan: Subject to adjustments as provided in Section 5(c), the aggregate
number of shares of Common Stock that may be issued pursuant to Awards granted
under the Plan shall not exceed the sum of 12,000,000 shares.  Shares
delivered under the Plan shall be authorized but unissued shares, treasury
shares or shares purchased on the open market or by private
purchase.  The Corporation hereby reserves sufficient authorized
shares of Common Stock to meet the grant of Awards hereunder.

       

      (b) Shares Not Subject to
Limitations: The following will not be applied to the share limitations
of Section 5(a) above: (i) dividends, including dividends paid in shares, or
dividend equivalents paid in cash in connection with outstanding Awards; (ii)
Awards which by their terms are settled in cash rather than the issuance of
shares; (iii) any shares subject to an Award under the Plan which Award is
forfeited, cancelled or terminated, expires or lapses for any reason; and (iv)
any shares surrendered by a Participant or withheld by the Corporation to pay
the Option Price or purchase price for an Award or shares or used to satisfy any
tax withholding requirement in connection with the exercise, vesting or earning
of an Award if, in accordance with the terms of the Plan, a Participant pays
such Option Price or purchase price or satisfies such tax withholding by either
tendering previously owned shares or having the Corporation withhold
shares.

       

      (c) Adjustments: If there is any
change in the outstanding shares of Common Stock because of a merger,
consolidation or reorganization involving the Corporation or an Affiliate, or if
the Board of Directors of the Corporation declares a stock dividend, stock split
distributable in shares of Common Stock, reverse stock split, combination or
reclassification of the Common Stock, or if there is a similar change in the
capital stock structure of the Corporation or an Affiliate affecting the Common
Stock, the number of shares of Common Stock reserved for issuance under the Plan
shall be correspondingly adjusted, and the Administrator shall make such
adjustments to Awards and to any provisions of this Plan as the Administrator
deems equitable to prevent dilution or enlargement of Awards or as may be
otherwise advisable.

       

       

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

       

      6. Eligibility

       

      An Award may be granted only to an
individual who satisfies all of the following eligibility requirements on the
date the Award is granted:

       

      (a) The
individual is either (i) an Employee or (ii) a Director

       

      (b) With
respect to the grant of Incentive Options, the individual is otherwise eligible
to participate under Section 6, is an Employee of the Corporation or a
Subsidiary and does not own, immediately before the time that the Incentive
Option is granted, stock possessing more than 10% of the total combined voting
power of all classes of stock of the Corporation or a Subsidiary.
Notwithstanding the foregoing, an Employee who owns more than 10% of the total
combined voting power of the Corporation or a Subsidiary may be granted an
Incentive Option if the Option Price is at least 110% of the Fair Market Value
of the Common Stock, and the Option Period does not exceed five years. For this
purpose, an individual will be deemed to own stock which is attributable to him
or her under Section 424(d) of the Code.

       

      (c) With
respect to the grant of substitute Awards or assumption of awards in connection
with a merger, consolidation, acquisition, reorganization or similar business
combination involving the Corporation or an Affiliate, the recipient is
otherwise eligible to receive the Award and the terms of the Award are
consistent with the Plan and applicable laws, rules and regulations (including,
to the extent necessary, the federal securities laws registration provisions and
Section 424(a) of the Code).

       

      7. Options

       

      (a) Grant of Options: Subject to
the limitations of the Plan, the Administrator may in its sole and absolute
discretion grant Options to such eligible individuals in such numbers, subject
to such terms and conditions, and at such times as the Administrator shall
determine. Both Incentive Options and Nonqualified Options may be granted under
the Plan, as determined by the Administrator; provided, however, that
Incentive Options may only be granted to Employees of the Corporation or a
Subsidiary.  To the extent that an Option is designated as an
Incentive Option but does not qualify as such under Section 422 of the Code, the
Option (or portion thereof) shall be treated as a Nonqualified Option. An Option
may be granted with or without a Related SAR.

       

      (b) Option Price: The Option
Price shall be established by the Administrator and stated in the Award
Agreement evidencing the grant of the Option; provided, that (i)
the Option Price of an Incentive Option shall be no less than 100% of the Fair
Market Value of a share of Common Stock as determined on the date the Option is
granted (or 110% of the Fair Market Value with respect to Incentive Options
granted to an Employee who owns stock possessing more than 10% of the total
voting power of all classes of stock of the Corporation or a Subsidiary, as
provided in Section 6(b)); (ii) the Option Price of a Nonqualified Option shall
be no less than 50% of the Fair Market Value of a share of the Common Stock on
the date the Option is granted; and (iii) in no event shall the Option Price per
share of any Option be less than the par value per share of the Common Stock.
Notwithstanding the foregoing, the Administrator may in its discretion authorize
the grant of substitute or assumed options of an acquired entity 

       

      
        
           

        

        
          10

          
            

          

        

        
           

        

         

        with an
Option Price not equal to at least 100% of the Fair Market Value on the date of
grant, if such options are assumed or substituted in accordance with Section
424(a) and related regulations and if the option price of any such assumed or
substituted option was at least equal to 100% of the fair market value of the
underlying stock on the original date of grant.

      

       

      (c) Date of Grant: An Incentive
Option shall be considered to be granted on the date that the Administrator acts
to grant the Option, or on any later date specified by the Administrator as the
effective date of the Option. A Nonqualified Option shall be considered to be
granted on the date the Administrator acts to grant the Option or any other date
specified by the Administrator as the date of grant of the Option.

       

      (d) Option Period and Limitations on the
Right to Exercise Options:

       

      (i) The
Option Period shall be determined by the Administrator at the time the Option is
granted and shall be stated in the Award Agreement. With respect to Incentive
Options, the Option Period shall not extend more than 10 years from the date on
which the Option is granted (or five years with respect to Incentive Options
granted to an Employee who owns stock possessing more than 10% of the total
combined voting power of all classes of stock of the Corporation or a
Subsidiary, as provided in Section 6(b)). Any Option or portion thereof not
exercised before expiration of the Option Period shall terminate. The period or
periods during which, and conditions pursuant to which, an Option may become
exercisable shall be determined by the Administrator in its discretion, subject
to the terms of the Plan.

       

      (ii) An Option
may be exercised by giving written notice to the Corporation in form acceptable
to the Administrator at such place and subject to such conditions as may be
established by the Administrator or its designee. Such notice shall specify the
number of shares to be purchased pursuant to an Option and the aggregate
purchase price to be paid therefor and shall be accompanied by payment of such
purchase price. The total number of shares that may be acquired upon exercise of
an Option shall be rounded down to the nearest whole share. No fractional shares
shall be issued. Unless an Award Agreement provides otherwise, such payment
shall be in the form of cash or cash equivalent; provided that, where
permitted by the Administrator and applicable laws, rules and regulations (and
subject to such terms and conditions as may be established by the
Administrator), payment may also be made:

       

      (A) By
delivery (by either actual delivery or attestation) of shares of Common Stock
owned by the Participant for at least six months (or for such other time period
determined by the Administrator) and otherwise acceptable to the
Administrator;

       

      (B) By shares
of Common Stock withheld upon exercise;

       

      (C) By
delivery of written notice of exercise to the Corporation and delivery to a
broker of written notice of exercise and irrevocable instructions to promptly
deliver to the Corporation the amount of sale or loan proceeds to pay the Option
Price;

       

      (D) By such
other payment methods as may be approved by the Administrator and which are
acceptable under applicable law; or

       

       

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

       

      (E) By any
combination of the foregoing methods.

       

      Shares
tendered or withheld in payment on the exercise of an Option shall be valued at
their Fair Market Value on the date of exercise, as determined by the
Administrator.

       

      (iii) Unless
the Administrator determines otherwise, no Option granted to a Participant who
was an Employee at the time of grant shall be exercised unless the Participant
is, at the time of exercise, an Employee, and has been an Employee continuously
since the date the Option was granted, subject to the following:

       

      (A) The
employment relationship of a Participant shall be treated as continuing intact
for any period that the Participant is on military or sick leave or other bona
fide leave of absence, provided that the
period of such leave does not exceed 90 days, or, if longer, as long as the
Participant’s right to reemployment is guaranteed either by statute or by
contract.  The employment relationship of a Participant shall also be
treated as continuing intact while the Participant is not in active service
because of Disability. The Administrator shall have sole authority to determine
whether a Participant is disabled and, if applicable, the Participant’s
Termination Date.

       

      (B) Unless
the Administrator determines otherwise, if the employment of a Participant is
terminated because of Disability or death, the Option may be exercised only to
the extent exercisable on the Participant’s Termination Date, except that the
Administrator may in its sole discretion accelerate the date for exercising all
or any part of the Option which was not otherwise exercisable on the Termination
Date. The Option must be exercised, if at all, prior to the first to occur of
the following, whichever shall be applicable: (I) the close of the one-year
period following the Termination Date (or such other period stated in the Award
Agreement); or (II) the close of the Option Period. In the event of the
Participant’s death, such Option shall be exercisable by such person or persons
as shall have acquired the right to exercise the Option by will or by the laws
of intestate succession.

       

      (C) Unless
the Administrator determines otherwise, if the employment of the Participant is
terminated for any reason, including Retirement, other than Disability, death or
for “Cause,” his or her Option may be exercised to the extent exercisable on his
or her Termination Date, except that the Administrator may in its sole
discretion accelerate the date for exercising all or any part of the Option
which was not otherwise exercisable on the Termination Date.  The
Option must be exercised, if at all, prior to the first to occur of the
following, whichever shall be applicable: (I) the close of the one month period
following the Termination Date (or such other period stated in the Award
Agreement); or (II) the close of the Option Period. If the Participant dies
following such termination of employment and prior to the earlier of the dates
specified in (I) or (II) of this subparagraph (C), the Participant shall be
treated as having died while employed under subparagraph (B) (treating for this
purpose the Participant’s date of termination of employment as the Termination
Date). In the event of the Participant’s death, such Option shall be exercisable
by such person or persons as shall have acquired the right to exercise the
Option by will or by the laws of intestate succession.

       

       

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

       

      (D) Unless
the Administrator determines otherwise, if the employment of the Participant is
terminated for “Cause,” his or her Option shall lapse and no longer be
exercisable as of his or her Termination Date, as determined by the
Administrator.

       

      (E) Notwithstanding
the foregoing, the Administrator may, in its sole discretion (subject to any
requirements imposed under Code Section 409A, related regulations, or other
guidance), accelerate the date for exercising all or any part of an Option which
was not otherwise exercisable on the Termination Date, extend the period during
which an Option may be exercised, modify the terms and conditions to exercise,
or any combination of the foregoing.

       

      (iv) Unless
the Administrator determines otherwise, an Option granted to a Participant who
was a Director but who was not an Employee at the time of grant may be exercised
only to the extent exercisable on the Participant’s Termination Date (unless the
termination was for Cause), and must be exercised, if at all, prior to the first
to occur of the following, as applicable: (A) the close of the six month period
following the Termination Date (or such other period stated in the Award
Agreement); or (B) the close of the Option Period. If the services of a
Participant are terminated for Cause, his or her Option shall lapse and no
longer be exercisable as of his or her Termination Date, as determined by the
Administrator.  Notwithstanding the foregoing, the Administrator may
in its sole discretion (subject to any requirements imposed under Code Section
409A, related regulations, or other guidance) accelerate the date for exercising
all or any part of an Option which was not otherwise exercisable on the
Termination Date, extend the period during which an Option may be exercised,
modify the other terms and conditions to exercise, or any combination of the
foregoing.

       

      (e) Notice of Disposition: If
shares of Common Stock acquired upon exercise of an Incentive Option are
disposed of within two years following the date of grant or one year following
the transfer of such shares to a Participant upon exercise, the Participant
shall, promptly following such disposition, notify the Corporation in writing of
the date and terms of such disposition and provide such other information
regarding the disposition as the Administrator may reasonably
require.

       

      (f) Limitation on Incentive
Options: In no event shall there first become exercisable by an Employee
in any one calendar year Incentive Options granted by the Corporation or any
Subsidiary with respect to shares having an aggregate Fair Market Value
(determined at the time an Incentive Option is granted) greater than $100,000.
To the extent that any Incentive Options are first exercisable by a Participant
in excess of such limitation, the excess shall be considered a Nonqualified
Option.

       

      (g) Nontransferability: Incentive
Options shall not be transferable (including by sale, assignment, pledge or
hypothecation) other than by will or the laws of intestate succession or, in the
Administrator’s discretion, as may otherwise be permitted in accordance with
Treas. Reg. 

       

      
        
           

        

        
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        Section
1.421-1(b)(2) or any successor provision thereto. Nonqualified Options shall not
be transferable (including by sale, assignment, pledge or hypothecation) other
than by will or the laws of intestate succession, except as may be permitted by
the Administrator in a manner consistent with the registration provisions of the
Securities Act. Except as may be permitted by the preceding sentence, an Option
shall be exercisable during the Participant’s lifetime only by him or her or by
his or her guardian or legal representative.  The designation of a
beneficiary in accordance with Section 19(g) does not constitute a
transfer.

      

       

      8. Director
Options

       

      (a) General: Each Nonemployee
Director shall be eligible for the grant of a Director Option or Director
Options as provided in Section 8. Director Options shall be designated as
Nonqualified Options. Director Options shall be subject to the other terms and
conditions of the Plan except as otherwise provided in Section 8.

       

      (b) Eligibility: A Director
Option may be granted only to an individual who is a Nonemployee Director of the
Corporation on the date the Director Option is granted. A Nonemployee Director
may also be eligible for other Awards (including, but not limited to, Options
granted pursuant to Section 7), subject to the terms of the Plan and the
Administrator’s discretion.

       

      (c) Option Price: The price per
share of Common Stock at which a Director Option may be exercised shall be 100%
of the Fair Market Value of a share of Common Stock on the date the Option is
granted.

       

      (d) Option Period and Limitations on the
Right to Exercise Options:

       

      (i) The
Option Period of a Director Option shall be 10 years from the date of
grant.  To the extent that all or part of an Option becomes
exercisable but is not exercised, such Option shall accumulate and be
exercisable by the Director in whole or in part at any time before the
expiration of the Option Period.  The total number of shares that may
be acquired upon the exercise of a Director Option shall be rounded down to the
nearest whole share.  No fractional shares shall be issued. Any
Director Option or portion thereof not exercised before expiration of the Option
Period shall terminate.

       

      (ii) Unless
the Administrator determines otherwise, a Director Option granted to a
Nonemployee Director at the time of grant may be exercised only to the extent
exercisable on the Nonemployee Director’s Termination Date (unless the
termination was for Cause), and must be exercised, if at all, prior to the first
to occur of the following, as applicable: (A) the close of the six month period
following the Termination Date (or such other period stated in the Award
Agreement); or (B) the close of the Option Period.  If the services of
a Nonemployee Director are terminated for Cause, his or her Director Option or
Director Options shall lapse and no longer be exercisable as of his or her
Termination Date, as determined by the Administrator.

       

      (iii) A
Director Option shall be exercised by giving written notice to the Administrator
or its designee at such time and place as the Administrator shall
direct.  Such notice shall specify the number of shares to be
purchased pursuant to the Director Option and the aggregate purchase price to be
paid therefor, and shall be accompanied by the payment of such purchase price.
Payment shall be made in accordance with Section 7(d)(ii).

       

       

      
        
           

        

        
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      (e) Nontransferability:  A
Director Option shall not be transferable (including by sale, assignment, pledge
or hypothecation) other than by will or the laws of intestate succession, except
as may be permitted by the Administrator in a manner consistent with the
registration provisions of the Securities Act.  Except as may be
permitted by the preceding sentence, a Director Option shall be exercisable
during the Nonemployee Director’s lifetime only by him or her or by his or her
guardian or legal representative.  The designation of a beneficiary in
accordance with Section 19(g) does not constitute a transfer.

       

      9. Stock
Appreciation Rights

       

      (a) Grant of SARs: Subject to the
limitations of the Plan, the Administrator may in its sole and absolute
discretion grant SARs to such eligible individuals, in such numbers, upon such
terms and at such times as the Administrator shall determine. SARs may be
granted to the holder of an Option (a “Related Option”) with respect to all or a
portion of the shares of Common Stock subject to the Related Option (a “Related
SAR”) or may be granted separately to an eligible individual (a “Freestanding
SAR”). The base price per share of a SAR shall be no less than 100% of the Fair
Market Value of a share of Common Stock on the date the SAR is
granted.

       

      (b) Related SARs: A Related SAR
may be granted either concurrently with the grant of the Related Option or (if
the Related Option is a Nonqualified Option) at any time thereafter prior to the
complete exercise, termination, expiration or cancellation of such Related
Option; provided,
however, that Related SARs must be granted in accordance with Code
Section 409A, related regulations, and other guidance.  The base price
of a Related SAR shall be equal to the Option Price of the Related
Option.  Related SARs shall be exercisable only at the time and to the
extent that the Related Option is exercisable (and may be subject to such
additional limitations on exercisability as the Administrator may provide in the
Award Agreement), and in no event after the complete termination or full
exercise of the Related Option.  Notwithstanding the foregoing, a
Related SAR that is related to an Incentive Option may be exercised only to the
extent that the Related Option is exercisable and only when the Fair Market
Value exceeds the Option Price of the Related Option.  Upon the
exercise of a Related SAR granted in connection with a Related Option, the
Option shall be canceled to the extent of the number of shares as to which the
SAR is exercised, and upon the exercise of a Related Option, the Related SAR
shall be canceled to the extent of the number of shares as to which the Related
Option is exercised or surrendered.

       

      (c) Freestanding SARs: A SAR may
be granted without relationship to an Option (as defined above, a “Freestanding
SAR”) and, in such case, will be exercisable upon such terms and subject to such
conditions as may be determined by the Administrator, subject to the terms of
the Plan.

       

      (d) Exercise of
SARs:

       

       

      
        
           

        

        
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      (i) Subject
to the terms of the Plan, SARs shall be exercisable in whole or in part upon
such terms and conditions as may be established by the Administrator and stated
in the applicable Award Agreement.  The period during which a SAR may
be exercisable shall not exceed 10 years from the date of grant or, in the case
of Related SARs, such shorter Option Period as may apply to the Related
Option.  Any SAR or portion thereof not exercised before expiration of
the period established by the Administrator shall terminate.

       

      (ii) SARs may
be exercised by giving written notice to the Corporation in form acceptable to
the Administrator at such place and subject to such terms and conditions as may
be established by the Administrator or its designee.  Unless the
Administrator determines otherwise, the date of exercise of a SAR shall mean the
date on which the Corporation shall have received proper notice from the
Participant of the exercise of such SAR.

       

      (iii) Each
Participant’s Award Agreement shall set forth the extent to which the
Participant shall have the right to exercise a SAR following termination of the
Participant’s employment or service with the Corporation.  Such
provisions shall be determined in the sole discretion of the Administrator, need
not be uniform among all SARs issued pursuant to this Section 9, and may reflect
distinctions based on the reasons for termination of
employment.  Notwithstanding the foregoing, unless the Administrator
determines otherwise, no SAR may be exercised unless the Participant is, at the
time of exercise, an eligible Participant, as described in Section 6, and has
been a Participant continuously since the date the SAR was granted, subject to
the provisions of Sections 7(d)(iii) and (iv).

       

      (e) Payment Upon Exercise:
Subject to the limitations of the Plan, upon the exercise of a SAR, a
Participant shall be entitled to receive payment from the Corporation in an
amount determined by multiplying (i) the difference between the Fair Market
Value of a share of Common Stock on the date of exercise of the SAR over the
base price of the SAR by (ii) the number of shares of Common Stock with respect
to which the SAR is being exercised.  Notwithstanding the foregoing,
the Administrator in its sole discretion may limit in any manner the amount
payable with respect to a SAR.  The consideration payable upon
exercise of a SAR shall be paid in cash, shares of Common Stock (valued at Fair
Market Value on the date of exercise of the SAR) or a combination of cash and
shares of Common Stock, as determined by the
Administrator.  Notwithstanding the foregoing, to the extent required
to ensure that an SAR is not subject to, or complies with, Code Section 409A,
related regulations and other guidance, (i) a SAR shall be settled solely for
shares of Common Stock of the Corporation, which Common Stock is traded on an
established securities market, and which SAR does not include any feature for
the deferral of compensation other than the deferral of recognition of income
until the exercise of the SAR; or (ii) a SAR shall be structured in a manner
designed to be exempt from, or to comply with, the requirements of Code Section
409A.  No fractional shares of Common Stock will be issuable upon
exercise of the SAR and, unless otherwise provided in the applicable Award
Agreement, the Participant will receive cash in lieu of fractional
shares.

       

      (f) Nontransferability:  Unless
the Administrator determines otherwise, (i) SARs shall not be transferable
(including by sale, assignment, pledge or hypothecation) other than by will or
the laws of intestate succession, and (ii) SARs may be exercised during the
Participant’s lifetime only by him or her or by his or her guardian or legal
representative.  The designation of a beneficiary in accordance with
Section 19(g) does not constitute a transfer.

       

      
        
           

        

        
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      10. Restricted
Awards

       

      (a) Grant of Restricted Awards:
Subject to the limitations of the Plan, the Administrator may in its sole
discretion grant Restricted Awards to such individuals in such numbers, upon
such terms and at such times as the Administrator shall
determine.  Such Restricted Awards may be in the form of Restricted
Stock Awards and/or Restricted Stock Units that are subject to certain
conditions, which conditions must be met in order for the Restricted Award to
vest and be earned (in whole or in part) and no longer subject to
forfeiture.  Restricted Stock Awards shall be payable in shares of
Common Stock. Restricted Stock Units shall be payable in cash or whole shares of
Common Stock, or partly in cash and partly in whole shares of Common Stock, in
accordance with the terms of the Plan and the sole discretion of the
Administrator.  The Administrator shall determine the nature, length
and starting date of the period, if any, during which a Restricted Award may be
earned (the “Restriction Period”), and shall determine the conditions which must
be met in order for a Restricted Award to be granted or to vest or be earned (in
whole or in part), which conditions may include, but are not limited to, payment
of a stipulated purchase price, attainment of performance objectives, continued
service or employment for a certain period of time (or a combination of
attainment of performance objectives and continued service), Retirement,
Displacement, Disability, death, or any combination of such
conditions.  Notwithstanding the foregoing, Restricted Awards that
vest based solely on continued service or the passage of time shall be subject
to a minimum Restriction Period of one year (except in the case of (i)
Restricted Awards assumed or substituted in connection with mergers,
acquisitions or other business transactions, (ii) Restricted Awards granted in
connection with the recruitment or hiring of a Participant, and/or (iii)
Restricted Awards granted pursuant to any incentive compensation or bonus
program established by the Corporation). In the case of
Restricted Awards based upon performance criteria, or a combination of
performance criteria and continued service, the Administrator shall determine
the Performance Measures applicable to such Restricted Awards (subject to
Section 1(gg)).

       

      (b) Vesting of Restricted Awards:
Subject to the terms of the Plan and Code Section 409A, related regulations, or
other guidance, the Administrator shall have sole authority to determine whether
and to what degree Restricted Awards have vested and been earned and are payable
and to establish and interpret the terms and conditions of Restricted Awards.
The Administrator may (subject to any restrictions imposed under Code Section
409A, related regulations, or other guidance) accelerate the date that any
Restricted Award granted to a Participant shall be deemed to be vested or earned
in whole or in part, without any obligation to accelerate such date with respect
to other Restricted Awards granted to any Participant.

       

      (c) Forfeiture of Restricted
Awards: Unless the Administrator determines otherwise, if the employment
or service of a Participant shall be terminated for any reason and all or any
part of a Restricted Award has not vested or been earned pursuant to the terms
of the Plan and the individual Award, such Award, to the extent not then vested
or earned, shall be forfeited immediately upon such termination and the
Participant shall have no further rights with respect thereto.

       

      
        
           

        

        
          17

          
            

          

        

        
           

        

      

       

      (d) Dividend and Voting Rights; Share
Certificates: The Administrator shall have sole discretion to determine
whether a Participant shall have dividend rights, voting rights or other rights
as a stockholder with respect to shares subject to a Restricted Award which has
not yet vested or been earned.  If the Administrator so determines, a
certificate or certificates for shares of Common Stock subject to a Restricted
Award may be issued in the name of the Participant as soon as practicable after
the Award has been granted; provided, however,
that, notwithstanding the foregoing, the Administrator shall have the right to
retain custody of certificates evidencing the shares subject to a Restricted
Award and to require the Participant to deliver to the Corporation a stock
power, endorsed in blank, with respect to such Award, until such time as the
Restricted Award vests (or is forfeited) and is no longer subject to a
substantial risk of forfeiture.

       

      (e) Nontransferability: Unless
the Administrator determines otherwise, Restricted Awards that have not vested
shall not be transferable (including by sale, assignment, pledge or
hypothecation) other than by will or the laws of intestate succession, and the
recipient of a Restricted Award shall not sell, transfer, assign, pledge or
otherwise encumber shares subject to the Award until the Restriction Period has
expired and until all conditions to vesting have been met. The designation of a
beneficiary in accordance with Section 19(g) does not constitute a
transfer.

       

      11. Performance
Awards

       

      (a) Grant of Performance Awards:
Subject to the terms of the Plan, the Administrator may in its sole discretion
grant Performance Awards to such eligible individuals upon such terms and
conditions and at such times as the Administrator shall determine. Performance
Awards may be in the form of Performance Shares and/or Performance Units. An
Award of a Performance Share is a grant of a right to receive shares of Common
Stock, the cash value thereof, or a combination thereof (in the Administrator’s
sole discretion), which is contingent upon the achievement of performance or
other objectives during a specified period and which has a value on the date of
grant equal to the Fair Market Value of a share of Common Stock. An Award of a
Performance Unit is a grant of a right to receive shares of Common Stock or a
designated dollar value amount of Common Stock which is contingent upon the
achievement of performance or other objectives during a specified period, and
which has an initial value determined in a dollar amount established by the
Administrator at the time of grant. Subject to Section 5(b), the Administrator
shall have complete discretion in determining the number of Performance Units
and/or Performance Shares granted to any Participant. The Administrator shall
determine the nature, length and starting date of the period during which a
Performance Award may be earned (the “Performance Period”), and shall determine
the conditions which must be met in order for a Performance Award to be granted
or to vest or be earned (in whole or in part), which conditions may include but
are not limited to specified performance objectives, continued service or
employment for a certain period of time, or a combination of such conditions.
Subject to Section 1(gg), the Administrator shall determine the Performance
Measures to be used in valuing Performance Awards.

       

      (b) Earning of Performance
Awards: Subject to the terms of the Plan and the requirements of Code
Section 409A, related regulations, or other guidance, the Administrator shall
have sole authority to determine whether and to what degree Performance Awards
have been earned and are payable and to interpret the terms and conditions of
Performance Awards and the provisions of Section 11. The Administrator, in its
sole and absolute discretion, may (subject to any restrictions imposed under
Code Section 409A, related regulations, or other guidance) accelerate the date
that any Performance Award granted to a Participant shall be deemed to be earned
in whole or in part, without any obligation to accelerate such date with respect
to other Awards granted to any Participant.

       

       

      
        
           

        

        
          18

          
            

          

        

        
           

        

      

       

      (c) Form of Payment: Payment of
the amount to which a Participant shall be entitled upon earning a Performance
Award shall be made in cash, shares of Common Stock, or a combination of cash
and shares of Common Stock, as determined by the Administrator in its sole
discretion. Payment may be made in a lump sum or in installments upon such terms
as may be established by the Administrator.

       

      (d) Forfeiture of Performance
Awards: Unless the Administrator determines otherwise, if the employment
or service of a Participant shall terminate for any reason and the Participant
has not earned all or part of a Performance Award pursuant to the terms of the
Plan and individual Award, such Award, to the extent not then earned, shall be
forfeited immediately upon such termination and the Participant shall have no
further rights with respect thereto.

       

      (e) Nontransferability: Unless
the Administrator determines otherwise, Performance Awards that have not been
earned shall not be transferable (including by sale, assignment, pledge or
hypothecation) other than by will or the laws of intestate succession, and the
recipient of a Performance Award shall not sell, transfer, assign, pledge or
otherwise encumber any shares subject to the Award until the Performance Period
has expired and until the conditions to earning the Award have been met. The
designation of a beneficiary in accordance with Section 19(g) does not
constitute a transfer.

       

      12. Phantom
Stock Awards

       

      (a) Grant of Phantom Stock
Awards: Subject to the terms of the Plan, the Administrator may in its
sole discretion grant Phantom Stock Awards to such eligible individuals, in such
numbers, upon such terms and at such times as the Administrator shall determine.
A Phantom Stock Award is an Award to a Participant of a number of hypothetical
share units with respect to shares of Common Stock, with a value based on the
Fair Market Value of a share of Common Stock.

       

      (b) Vesting of Phantom Stock
Awards: Subject to the terms of the Plan and the requirements of Code
Section 409A, related regulations, or other guidance, the Administrator shall
have sole authority to determine whether and to what degree Phantom Stock Awards
have vested and are payable and to interpret the terms and conditions of Phantom
Stock Awards.

       

      (c) Forfeiture of Phantom Stock
Awards: Unless the Administrator determines otherwise, if the employment
or service of a Participant shall be terminated for any reason and all or any
part of a Phantom Stock Award has not vested and become payable pursuant to the
terms of the Plan and the individual Award, such Award, to the extent not then
vested or earned, shall be forfeited immediately upon such termination and the
Participant shall have no further rights with respect thereto.

       

       

      
        
           

        

        
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      (d) Payment of Phantom Stock
Awards: Upon vesting of all or a part of a Phantom Stock Award and
satisfaction of such other terms and conditions as may be established by the
Administrator, the Participant shall be entitled to a payment of an amount equal
to the Fair Market Value of a share of Common Stock with respect to each such
Phantom Stock Award which has vested. Payment may be made, in the discretion of
the Administrator, in cash or in shares of Common Stock valued at their Fair
Market Value on the applicable vesting date or dates (or other date or dates
determined by the Administrator), or in a combination thereof. The Administrator
may, however, establish a limitation on the amount payable in respect of each
share of Phantom Stock. Payment may be made in a lump sum or upon such terms as
may be established by the Administrator.

       

      (e) Nontransferability: Unless
the Administrator determines otherwise, (i) Phantom Stock Awards that have not
vested shall not be transferable (including by sale, assignment, pledge or
hypothecation) other than by will or the laws of intestate succession, (ii)
Phantom Stock Awards may be exercised during the Participant’s lifetime only by
him or her or by his or her guardian or legal representative, and (iii) shares
of Common Stock (if any) subject to a Phantom Stock Award may not be sold,
transferred, assigned, pledged or otherwise encumbered until the Phantom Stock
Award has vested and all other conditions established by the Administrator have
been met. The designation of a beneficiary in accordance with Section 19(g) does
not constitute a transfer.

       

      13. Dividends
and Dividend Equivalents

       

      The Administrator may, in its sole
discretion, provide that Awards granted under the Plan earn dividends or
dividend equivalents. To the extent permitted under Code Section 409A, such
dividends or dividend equivalents may be paid currently or may be credited to a
Participant’s account. Any crediting of dividends or dividend equivalents may be
subject to such restrictions and conditions as the Administrator may establish,
including reinvestment in additional shares of Common Stock or share
equivalents.

       

      14. No
Right or Obligation of Continued Employment or Service

       

      Neither the Plan, the grant of an Award
nor any other action related to the Plan shall confer upon the Participant any
right to continue in the service of the Corporation or an Affiliate as an
Employee or Director or to interfere in any way with the right of the
Corporation or an Affiliate to terminate the Participant’s employment or service
at any time.

       

      15. Amendment
and Termination of the Plan

       

      (a) Amendment and Termination of
Plan: The Plan may be amended, altered and/or terminated at any time by
the Board; provided, that (i)
approval of an amendment to the Plan by the stockholders of the Corporation
shall be required to the extent, if any, that stockholder approval of such
amendment is required by applicable law, rule or regulation; and (ii) except for
adjustments made pursuant to Section 5(c), the Option Price for any outstanding
Option or base price of any outstanding SAR may not be decreased after the date
of grant, nor may any outstanding Option or SAR be surrendered to the
Corporation as consideration for the grant of a new Option or SAR with a lower
Option Price or base price than the original Option or SAR, as the case may be,
without stockholder approval of any such action. No action to amend or terminate
the Plan shall permit the acceleration of the time or schedule of any payment of
amounts deemed to involve the deferral of compensation under Code Section 409A,
except as may be otherwise permitted under Code Section 409A, related
regulations, or other guidance.

       

      
        
           

        

        
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      (b) Amendment of Awards: The
Administrator may amend, alter or terminate any Award granted under the Plan,
prospectively or retroactively, but such amendment, alteration or termination of
an Award shall not, without the consent of the recipient of an outstanding
Award, materially adversely affect the rights of the recipient with respect to
the Award.

       

      (c) Unilateral Authority of
Administrator to Modify Plan and Awards: Notwithstanding Section 15(a)
and Section 15(b) herein, the following provisions shall apply:

       

      (i) The
Administrator shall have unilateral authority to amend the Plan and any Award
(without Participant consent and without stockholder approval, unless such
stockholder approval is required by applicable laws, rules or regulations) to
the extent necessary to comply with applicable laws, rules or regulations or
changes to applicable laws, rules or regulations (including but not limited to
Code Section 409A and Code Section 422 or related regulations or other guidance
and federal securities laws).

       

      (ii) The
Administrator shall have unilateral authority to make adjustments to the terms
and conditions of Awards in recognition of unusual or nonrecurring events
affecting the Corporation or any Affiliate, or the financial statements of the
Corporation or any Affiliate, or of changes in accounting principles, if the
Administrator determines that such adjustments are appropriate in order to
prevent dilution or enlargement of the benefits or potential benefits intended
to be made available under the Plan or necessary or appropriate to comply with
applicable accounting principles.

       

      (d) Cash Settlement:
Notwithstanding any provision of the Plan, an Award or an Award Agreement to the
contrary, the Administrator may (subject to any requirements imposed under Code
Section 409A, related regulations, or other guidance) cause any Award (or
portion thereof) granted under the Plan to be canceled in consideration of an
alternative Award or cash payment of an equivalent cash value, as determined by
the Administrator in its sole discretion, made to the holder of such canceled
Award.

       

      16. Restrictions
on Awards and Shares

       

      The Corporation may impose such
restrictions on Awards, shares and any other benefits underlying Awards
hereunder as it may deem advisable, including, without limitation, restrictions
under the federal securities laws, the requirements of any stock exchange or
similar organization and any blue sky, state or foreign securities laws
applicable to such securities. Notwithstanding any other Plan provision to the
contrary, the Corporation shall not be obligated to issue, deliver or transfer
shares of Common Stock under the Plan, make any other distribution of benefits
under the Plan, or take any other action, unless such delivery, distribution or
action is in compliance with all applicable laws, rules and regulations
(including but not limited to the requirements of the Securities Act). The
Corporation may cause a restrictive legend to be placed on any certificate
issued pursuant to an Award hereunder in such form as may be prescribed from
time to time by applicable laws and regulations or as may be advised by legal
counsel.

       

      
        
           

        

        
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      17. Change
in Control

       

      (a) Notwithstanding
any other provision of the Plan to the contrary, and except as may be otherwise
provided in an Award Agreement or required under Code Section 409A, related
regulations, or other guidance, in the event of a Change in
Control:

       

      (i) All
Options and SARs outstanding as of the date of such Change in Control shall
become fully exercisable, whether or not then otherwise
exercisable.

       

      (ii) Any
restrictions, including but not limited to the Restriction Period, Performance
Period, performance criteria and/or vesting conditions applicable to any
Restricted Award, Performance Award and/or Phantom Stock Award, shall be deemed
to have been met, and such Awards shall become fully vested, earned and payable
to the fullest extent of the original grant of the applicable
Award.

       

      (b) Notwithstanding
the foregoing, in the event of a merger, share exchange, reorganization, sale of
all or substantially all of the assets of the Corporation or other similar
transaction or event affecting the Corporation or its stockholders or an
Affiliate, the Administrator may, in its sole and absolute discretion, determine
that any or all Awards granted pursuant to the Plan shall not vest or become
exercisable on an accelerated basis, if the Corporation or the surviving or
acquiring corporation, as the case may be, shall have taken such action,
including but not limited to the assumption of Awards granted under the Plan or
the grant of substitute awards (in either case, with substantially similar terms
or equivalent economic benefits as Awards granted under the Plan), as the
Administrator determines to be equitable or appropriate to protect the rights
and interests of Participants under the Plan.  If the Committee is
acting as the Administrator authorized to make the determinations provided for
in this Section 17(b), such determination must also be approved by the Board
prior to such determination being placed into effect.

       

      18. Compliance
with Code Section 409A

       

      (a) General: Notwithstanding any
other provision in the Plan or an Award to the contrary, if and to the extent
that Code Section 409A is deemed to apply to the Plan or any Award granted under
the Plan, it is the general intention of the Corporation that the Plan and all
such Awards shall comply with Code Section 409A, related regulations, or other
guidance, and the Plan and any such Award shall, to the extent practicable, be
construed in accordance therewith.  Deferrals of shares issuable
pursuant to an Option, a SAR settled in shares of Common Stock, a Restricted
Award or any other Award otherwise exempt from Code Section 409A, in a manner
that would cause Code Section 409A to apply, shall not be
permitted.  Without in any way limiting the effect of the foregoing,
in the event that Code Section 409A, related regulations or other guidance
require that any special terms, provisions or conditions be included in the Plan
or any Award, then such terms, provisions and conditions shall, to the extent
practicable, be deemed to be made a part of the Plan or Award, as applicable.
Further, in the event that the Plan or any Award shall be deemed not to comply
with Code Section 409A or any related regulations or other guidance, then
neither the Corporation, the Administrator nor their designees or agents shall
be liable to any Participant or other person for actions, decisions or
determinations made in good faith.

       

       

      
        
           

        

        
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      (b) Specific Terms Applicable to Awards
Subject to Code Section 409A: Without limiting the effect of Section
18(a), above, and notwithstanding any other provision in the Plan to the
contrary, the following provisions shall, to the extent required under Code
Section 409A, related regulations, or other guidance, apply with respect to
Awards deemed to involve the deferral of compensation under Code Section
409A:

       

      (i) Distributions:
Distributions may be made with respect to Awards subject to Code Section 409A
not earlier than upon the occurrence of one or more of the following events: (A)
separation of service; (B) disability; (C) death; (D) a specified time or
pursuant to a fixed schedule; (E) a change in the ownership or effective control
of the Corporation, or in the ownership of a substantial portion of the assets
of the Corporation; or (F) the occurrence of an unforeseeable emergency. Each of
the preceding distribution events shall be defined and interpreted in accordance
with Code Section 409A and related regulations or other guidance.

       

      (ii) Key Employees: With
respect to Participants who are “key employees” (as defined in Code Section
409A, related regulations, or other guidance), a distribution due to separation
of service may not be made before the date that is six months after the date of
separation of service (or, if earlier, the date of death of the Participant),
except as may be otherwise permitted pursuant to Code Section 409A, related
regulations, or other guidance. To the extent that a Participant is subject to
this section and a distribution is to be paid in installments, through an
annuity, or in some other manner where payment will be periodic, the Participant
shall be paid, during the seventh month following separation from service, the
aggregate amount of payments he or she would have received but for the
application of this section; all remaining payments shall be made in their
ordinary course.  The previous sentence shall be applicable only if
and to the extent that it complies with Code Section 409A, related regulations,
and other applicable guidance.

       

      (iii) No Acceleration:
Unless permissible under Code Section 409A, related regulations, or other
guidance, acceleration of the time or schedule of any payment under the Plan is
prohibited, except that, to the extent permitted by the Administrator and to the
extent such exceptions do not violate Code Section 409A, the following
accelerations may be permitted in an Award:

       

      (A) As
necessary to fulfill a domestic relations order (as defined in Code Section
414(p)(1)(B));

       

      (B) As
necessary to comply with a certificate of divestiture (as defined in Code
Section 1043(b)(2)); and

       

      (C) To pay
the Federal Insurance Contributions Act tax imposed under Code Sections 3101 and
3121(v)(2) on amounts deferred under the Plan (the “FICA Amount”), including the
income tax at source on wages imposed under Code Section 3401 on the FICA
Amount, and to pay the additional income tax at source of wages attributable to
additional Code Section 3401 wages and taxes.

       

       

      
        
           

        

        
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      (iv) Short-Term Deferrals:
Except to the extent otherwise required or permitted under Code Section 409A,
related regulations or other guidance, the Administrator shall (unless an
individual Award Agreement provides otherwise) provide that distributions
pursuant to Awards must be made no later than the later of (A) the date that is
2-1/2 months from the end of the Participant’s first taxable year in which the
amount is no longer subject to a substantial risk of forfeiture; or (B) the date
that is 2-1/2 months from the end of the Corporation’s first taxable year in
which the amount is no longer subject to a substantial risk of
forfeiture.

       

      (v) Deferral
Elections:

       

      (A) In the
sole discretion of the Administrator, a Participant may be permitted to make an
election as to the time and form of any distribution from an Award, provided that, except
as specified in (B) and (C) below, such election is made not later than the
close of the taxable year preceding the taxable year in which the services for
which the Award is granted are to be performed, or at such other time or times
as may be permitted under Code Section 409A, related regulations, or other
guidance.

       

      (B) In the
case of the first year in which the Participant becomes eligible to participant
in the Plan, the election described in (A) may be made with respect to services
to be performed subsequent to the election within 30 days after the date the
Participant becomes eligible to participate in the Plan.

       

      (C) In the
case of any performance-based compensation (as that term is defined in Code
Section 409A, related regulations, or other guidance), where such compensation
is based on services performed over a period of at least 12 months, the election
described in (A) may be made no later than six months before the end of the
period.

       

      (vi) To the
extent that the Administrator, in its sole discretion, permits a subsequent
election to delay a payment or change the form of payment that has been
specified under (A), (B) or (C) above, the following provisions shall
apply:

       

      (A) Such
election may not take effect until 12 months after the date on which the
election is made;

       

      (B) Where the
payment is to be made for reasons other than death, disability or unforeseen
hardship, as those terms are defined in Section 18(b)(i), above, the first
payment with respect to which such election is made must be deferred for a
period of not less than five years from the date such payment would otherwise
have been made; and

       

      (C) Any
election related to a payment based upon separation from service, as that term
is defined in Section 18(b)(i), above, may not be made less than 12 months prior
to the date of the first scheduled payment hereunder.

       

      

       

      
        
           

        

        
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      19. General
Provisions

       

      (a) Stockholder Rights: Except as
otherwise determined by the Administrator (and subject to the provisions of
Section 10(d) regarding Restricted Awards), a Participant and his or her legal
representative, legatees or distributees shall not be deemed to be the holder of
any shares subject to an Award and shall not have any rights of a stockholder
unless and until certificates for such shares have been issued and delivered to
him or her or them under the Plan.  A certificate or certificates for
shares of Common Stock acquired upon exercise of an Option or SAR shall be
promptly issued in the name of the Participant (or his or her beneficiary) and
distributed to the Participant (or his or her beneficiary) as soon as
practicable following receipt of notice of exercise and, with respect to
Options, payment of the Option Price (except as may otherwise be determined by
the Corporation in the event of payment of the Option Price pursuant to Section
7(d)(ii)(C)). Except as otherwise provided in Section 10(d) regarding Restricted
Awards, a certificate for any shares of Common Stock issuable pursuant to a
Restricted Award, Performance Award or Phantom Stock Award shall be promptly
issued in the name of the Participant (or his or her beneficiary) and
distributed to the Participant (or his or her beneficiary) after the Award (or
portion thereof) has vested or been earned.  In no event will the
issuance of certificates pursuant to the exercise of Options, settlement of SARs
in shares of Common Stock, vesting of Restricted Awards or vesting of other
Awards otherwise exempt from Code Section 409A be delayed in a manner that would
cause the Award to be construed to involve the deferral of compensation under
Code Section 409A.

       

      (b) Withholding: The Corporation
shall withhold all required local, state, federal, foreign and other taxes and
any other amount required to be withheld by any governmental authority or law
from any amount payable in cash with respect to an Award. Prior to the delivery
or transfer of any certificate for shares or any other benefit conferred under
the Plan, the Corporation shall require any recipient of an Award to pay to the
Corporation in cash the amount of any tax or other amount required by any
governmental authority to be withheld and paid over by the Corporation to such
authority for the account of such recipient. Notwithstanding the foregoing, the
Administrator may establish procedures to permit a recipient to satisfy such
obligation in whole or in part, and any local, state, federal, foreign or other
income tax obligations relating to such an Award, by electing (the “Election”)
to have the Corporation withhold shares of Common Stock from the shares to which
the recipient is entitled. The number of shares to be withheld shall have a Fair
Market Value as of the date that the amount of tax to be withheld is determined
as nearly equal as possible to (but not exceeding) the amount of such
obligations being satisfied. Each Election must be made in writing to the
Administrator in accordance with Election procedures established by the
Administrator.

       

      (c) Section 16(b) Compliance: To
the extent that any Participants in the Plan are subject to Section 16(b) of the
Exchange Act, it is the general intention of the Corporation that transactions
under the Plan shall comply with Rule 16b-3 under the Exchange Act and that the
Plan shall be construed in favor of such Plan transactions meeting the
requirements of Rule 16b-3 or any successor rules thereto. Notwithstanding
anything in the Plan to the contrary, the Administrator, in its sole and
absolute discretion, may bifurcate the Plan so as to restrict, limit or
condition the use of any provision of the Plan to Participants who are officers
or directors subject to Section 16 of the Exchange Act without so restricting,
limiting or conditioning the Plan with respect to other
Participants.

       

       

      
        
           

        

        
          25

          
            

          

        

        
           

        

      

       

      (d) Code Section 162(m)
Performance-Based Compensation. To the extent to which Section 162(m) of
the Code is applicable, the Corporation intends that compensation paid under the
Plan to Covered Employees will, to the extent practicable, constitute “qualified
performance-based compensation” within the meaning of Section 162(m) and related
regulations, unless otherwise determined by the Administrator. Accordingly,
Awards granted to Covered Employees which are intended to qualify for the
performance-based exception under Code Section 162(m) and related regulations
shall be deemed to include any such additional terms, conditions, limitations
and provisions as are necessary to comply with the performance-based
compensation exemption of Section 162(m), unless the Administrator, in its
discretion, determines otherwise.

       

      (e) Unfunded Plan; No Effect on Other
Plans:

       

      (i) The Plan
shall be unfunded, and the Corporation shall not be required to create a trust
or segregate any assets that may at any time be represented by Awards under the
Plan. The Plan shall not establish any fiduciary relationship between the
Corporation and any Participant or other person. Neither a Participant nor any
other person shall, by reason of the Plan, acquire any right in or title to any
assets, funds or property of the Corporation or any Affiliate, including,
without limitation, any specific funds, assets or other property which the
Corporation or any Affiliate, in their discretion, may set aside in anticipation
of a liability under the Plan. A Participant shall have only a contractual right
to the Common Stock or other amounts, if any, payable under the Plan, unsecured
by any assets of the Corporation or any Affiliate. Nothing contained in the Plan
shall constitute a guarantee that the assets of such entities shall be
sufficient to pay any benefits to any person.

       

      (ii) The
amount of any compensation deemed to be received by a Participant pursuant to an
Award shall not constitute compensation with respect to which any other employee
benefits of such Participant are determined, including, without limitation,
benefits under any bonus, pension, profit sharing, life insurance or salary
continuation plan, except as otherwise specifically provided by the terms of
such plan or as may be determined by the Administrator.

       

      (iii) The
adoption of the Plan shall not affect any other stock incentive or other
compensation plans in effect for the Corporation or any Affiliate, nor shall the
Plan preclude the Corporation from establishing any other forms of stock
incentive or other compensation for employees or service providers of the
Corporation or any Affiliate.

       

      (f) Applicable Law: The Plan
shall be governed by and construed in accordance with the laws of the State of
New Jersey, without regard to the conflict of laws provisions of any state, and
in accordance with applicable federal laws of the United States.

       

      (g) Beneficiary Designation: The
Administrator may permit a Participant to designate in writing a person or
persons as beneficiary, which beneficiary shall be entitled to receive
settlement of Awards (if any) to which the Participant is otherwise entitled in
the event of death. In the absence of such designation by a Participant, and in
the event of the Participant’s death, the estate of the Participant shall be
treated as beneficiary for purposes of the Plan, unless the Administrator
determines otherwise. The Administrator shall have sole discretion to approve
and interpret the form or forms of such beneficiary designation. A beneficiary,
legal guardian, legal representative or other person claiming any rights
pursuant to the Plan is subject to all terms and conditions of the Plan and any
Award Agreement applicable to the Participant, except to the extent that the
Plan and/or Award Agreement provide otherwise, and to any additional
restrictions deemed necessary or appropriate by the Administrator.

       

       

      
        
           

        

        
          26

          
            

          

        

        
           

        

      

       

      (h) Gender and Number: Except
where otherwise indicated by the context, words in any gender shall include any
other gender, words in the singular shall include the plural and words in the
plural shall include the singular.

       

      (i) Severability: If any
provision of the Plan shall be held illegal or invalid for any reason, such
illegality or invalidity shall not affect the remaining parts of the Plan, and
the Plan shall be construed and enforced as if the illegal or invalid provision
had not been included.

       

      (j) Rules of Construction:
Headings are given to the sections of this Plan solely as a convenience to
facilitate reference. The reference to any statute, regulation or other
provision of law shall be construed to refer to any amendment to or successor of
such provision of law.

       

      (k) Successors and Assigns: The
Plan shall be binding upon the Corporation, its successors and assigns, and
Participants, their executors, administrators and permitted transferees and
beneficiaries.

       

      (l) Right of Offset:
Notwithstanding any other provision of the Plan or an Award Agreement, the
Corporation may reduce the amount of any payment or benefit otherwise payable to
or on behalf of a Participant by the amount of any obligation of the Participant
to the Corporation that is or becomes due and payable.

       

      (m) Effect of Changes in Status:
Unless an individual Award Agreement provides otherwise or the Administrator, in
its sole discretion, determines otherwise, an Award shall not be affected by any
change in the terms, conditions or status of the Participant’s employment or
service, provided that the
Participant continues to be in the employ of, or in service to, the Corporation
or an Affiliate. Without limiting the foregoing, the Administrator has sole
discretion to determine, at the time of grant of an Award or at any time
thereafter, the effect, if any, on Awards granted to a Participant if the
Participant’s status as an Employee or Director changes, including, but not
limited to, a change from full-time to part-time, or vice versa, or if other
similar changes in the nature or scope of the Participant’s employment or
service occur.

       

      

      27

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