Document:

Exhibit 10.8

Exhibit 10.8

FINDERS AGREEMENT

This Agreement (the "Agreement") is entered into on this 21st day of March, 2005, by and between Stephane Solis, ("Solis" or the "Finder"), and VisualMed Clinical Solutions Corporation, (the "Issuer" or the "Company").

	
1.
	
THE PARTIES

	 
	 	
1.1 
	
Each party executing this Agreement represents to the other party that it has full and complete authority to do so and has been designated to do so by its managers and Board of Directors.  

	 
	
2.
	
EXCLUSIVITY

	 
	 	
2.1 
	
The Issuer understands and stipulates under this Agreement that for the duration of this Agreement, unless waived by the Finder in writing, the Finder shall be the exclusive individual/entity responsible for introducing the Issuer to those Investors (defined in Section 3 below) listed on Exhibit A (the "Innovative Contacts").  Further, and notwithstanding any other provision in this Agreement to the contrary, in the event an Offering (defined in Section 3 below) is consummated to the satisfaction of the Issuer with any or all of the Solis Contacts, the Issuer shall owe the Finder such fees as described in Section 4 below.  

	 	 
	
3.
	
THE AGREEMENT

	 
	 	
3.1 
	
The Issuer seeks to be introduced by the Finder to investors (an "Investor" or collectively the "Investors") that desire to invest no less than One Hundred Twenty Five Thousand Dollars (US$125,000) in the Issuer in exchange for securities of the Issuer pursuant to a private placement (an "Offering").  The consideration offered by the Issuer for an Offering shall be either debt or equity securities issued on terms and conditions satisfactory to the Issuer, in its sole discretion.  In the event an Offering is consummated to the satisfaction of the Issuer as a result of an introduction by the Finder to an Investor (a "Successful Introduction"), the Issuer shall owe the Finder such fees as described in Section 4 below.  An Offering shall be considered a Successful Introduction if the Issuer consummates an Offering by a written agreement signed by both parties.

	
 

	 	
3.2 
	
Unless provided otherwise within this Agreement, it is acknowledged by the Issuer that: (i) the Finder is acting solely as an individual responsible for the introduction of the Issuer to an Investor or Investors for the purposes of an Offering and not in any other capacity; (ii) the Finder has not advised the Issuer in any manner regarding the merits of this or any other financing arrangement,

 

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acquisition, merger, joint venture or other business arrangement; (iii) the Issuer has consulted its own counsel on all aspects of this Agreement; (iv) the Finder has not made any representations to the Issuer to induce it to enter into this Agreement; and (v) the Finder shall not sell or offer to sell securities related to an Offering resulting from this Agreement.

	 
	 	
3.3 
	
The Issuer shall be under no obligation to pay any fee or other monies to Finder unless the purchase of all or part of the Offering contemplated by this Agreement has closed with Investors.  The total amount of the fee due the Finder shall be due and payable on the date of the closing.  The Issuer shall be under no obligation to consummate any such Offering except upon such terms as shall be acceptable to the Issuer in its sole discretion.

	 
	 	
3.4 
	
This Agreement shall begin on the date this Agreement is signed by both parties and shall remain in effect (the "Effective Period") for ninety (90) days.  This Agreement shall terminate upon the expiration of the Effective Period (the "Expiration Date").  Either party may cancel this Agreement in writing within thirty (30) days of the Expiration Date (the "Cancellation Period").   After the Expiration Date, neither party will have any obligation to the other party, unless Investors that were introduced to the Issuer by the Finder prior to the Expiration Date are actively negotiating with the Issuer with respect to an Offering, in which case this Agreement will remain in effect until such time as the negotiations either terminate or an Offering is consummated.  Furthermore, if, within twelve months after this Agreement has expired, the Issuer consummates an Offering with any Investor introduced by the Finder during the Effective Period, the Company shall pay Finder the fees that would have been due had the Offering been consummated during the Effective Period.  

	 
	
4.
	
THE FEE

	 
	 	
4.1 
	
The fee to be paid to the Finder for a Successful Introduction shall be computed as follows:

	 	 
	
 
	 	
(a) 
	
233,333 cashless warrants in payment for the 2,275,567 common shares or units issued by the Company to Investors pursuant to any Offering, the Warrants have an exercise price of $0.001 and expire at midnight of March 24, 2007; and

	 
	 	 	
(b) 
	
Upon the exercise of warrants issued by the Company to Investors, a cash fee of US$150,000 of any exercised warrants received by the Issuer pursuant to any Offering applicable for two years after date of closing, and

	 
	 	 	
(c) 
	
Upon the exercise of all of the warrants issued by the Company to Investors, the Finder will be entitled to receive a maximum of 166,667 cashless warrants, 

 

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or a pro rata amount if less than all warrants issued by the Company to Investors are exercised, of the common shares issued by the Company to Investors pursuant to any Offering. The Warrants have an exercise price of $0.001 and expire at midnight of March 24, 2007.

	 	 	 
	
 
	 	 	
It is understood that the Company shall qualify for trading the common shares underlying the cashless warrants to be received by the Finder as soon as practible.

	 
	 	
4.2 
	
The fee due to the Finder shall be payable to the Finder by the Issuer at closing and disbursed as soon as practible, but no later than 3 months from the date of closing.  The Issuer is responsible for such fee.  

	 
	
5.
	
OTHER

	 
	 	
5.1 
	
Unless otherwise arranged between the Issuer and the Finder, the Issuer shall not be responsible for any arrangements made by Finder with any broker or other persons with whom the Finder may be involved.  The Issuer agrees to indemnify and hold the Finder and its affiliates, control persons, directors, officers, employees and agents (each an "Indemnified Person") harmless from and against all losses, claims, damages, liabilities, costs or expenses, resulting from any investigation, action, proceeding or dispute commencing within six months of the Expiration Date when the Finder or any such other Indemnified Person is a party to such investigation, action, proceeding or dispute, arising out of the Finder's entering into or performing services under this Agreement, or arising out of any matter referred to in this Agreement.  This indemnity shall also include the Finder's and/or any such other Indemnified Person's reasonable attorneys' and accountants' fees and out-of-pocket expenses incurred in, and the cost of the Finder's personnel whose time is spent in connection with, such investigations, actions, proceedings or disputes which fees, expenses and costs shall be periodically reimbursed to the Finder and/or to any such other Indemnified Person by the Issuer as they are incurred; provided, however, that the indemnity herein set forth shall not apply to an Indemnified Person where a court of competent jurisdiction has made a final determination that such Indemnified Person acted in a grossly negligent manner or engaged in willful misconduct in the performance of the services hereunder which gave rise to the loss, claim, damage, liability, cost or expense sought to be recovered hereunder.  The Issuer also agrees that no Indemnified Person shall have any liability (whether direct or indirect, in contract or tort or otherwise) to the Issuer for or in connection with any act or omission to act as a result of its engagement under this Agreement except for any such liability for losses, claims, damages, liabilities or expenses incurred by the Issuer that are found in a final determination by a court of competent jurisdiction to have resulted from such Indemnified Person's gross negligence or willful misconduct.

 

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If for any reason, the foregoing indemnification is unavailable to the Finder or any such other Indemnified Person or insufficient to hold it harmless, then the Issuer shall contribute to the amount paid or payable by the Finder or any such other Indemnified Person as a result of such loss, claim, damage or liability in such proportion as is appropriate to reflect not only the relative benefits received by the Issuer and its shareholders on the one hand and the Finder or any such other Indemnified Person on the other hand, but also the relative fault of the Issuer and the Finder or any such other Indemnified Person, as well as any relevant equitable considerations; provided that in no event will the aggregate contribution by the Issuer and any such other Indemnified Person hereunder exceed the amount of fees actually received by the Finder pursuant to this Agreement.  The reimbursement, indemnity and contribution obligations of the Issuer hereinabove set forth shall be in addition to any liability which the Issuer may otherwise have and these obligations and the other provisions hereinabove set forth shall be binding upon and inure to the benefit of any successors, assigns, heirs and personal representatives of the Issuer, the Finder and any other Indemnified Person.

	 
	
 
	 	
The terms and conditions hereinabove set forth shall survive the termination and expiration of this Agreement and shall terminate six months after the Expiration Date.

	 
	 	
5.2 
	
The Finder hereby represents and warrants to the Issuer that it shall conduct its activities in accordance with the applicable provisions of both federal and state securities law.  Further, the Finder agrees that it shall indemnify the Issuer for any and all costs incurred by the Issuer as a result of the Finder's failure to comply with said federal and state securities laws.

	 
	 	
5.3 
	
In the event of any dispute between the Issuer and the Finder arising from the terms of this Agreement, the Issuer and the Finder agree that any dispute shall be settled only by arbitration in the Province of Quebec. The determination of the arbitrators shall be final and binding upon the Issuer and the Finder and may be enforced in any court of appropriate jurisdiction.

	 
	 	
5.4 
	
This Agreement shall be construed by and governed exclusively under the laws of the Province of Quebec, without regard to its conflicts of laws provisions.

	 
	 	
5.5 
	
This Agreement represents the entire agreement between the parties to this Agreement concerning its subject matter, and any and all prior representations and agreements with respect to such subject matter, if any, are merged herein and are superseded by this Agreement.

	 
	 	
5.6 
	
The Issuer shall include in any agreement executed by the Issuer with any Investor regarding an Offering, substantially the following representation: "(the Investor) has performed its own due diligence investigation and has had the opportunity to ask questions of (the Issuer) and its

 

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management team and analyze their responses.  (The Investor) has not relied on any representations made by (the Finder) not expressly set forth in the agreement.  Both parties to the agreement shall release and hold harmless (the Finder) from and against any losses, claims, damages or liabilities related to the (Offering)."

	 	 	 
	 	
IN WITNESS WHEREOF, the parties have signed this Agreement on the date first

	 	 	
written above.

	 	 	 
	
THE COMPANY:

	 
	
VisualMed Clinical Solutions Corporation

	 
	 
	
By:
	
/s/ Gerard Dab

	
Name:
	
Gerard Dab

	
Title:
	
Chairman and Chief Executive Officer

	 	 
	 	 
	 	 
	
FINDER:

	 
	
Stephane Solis.

	 	 
	 	 
	
By:
	
/s/ Stephane Solis

	
Name:
	
Stephane Solis

 

 

 

 

 

 

 

 

5

EXHIBIT A

	
1. 
	
Redwood Grove Capital Management, LLC.  Wayne H. Coleson

	
2. 
	
LH Financial.  Ari Rabinowitz

	
3. 
	
Ellis International.  Mottes Drillman

	
4. 
	
Market Wise Trading.  Walter Reisman

	
5. 
	
Omega Capital.  David Leiner

	
6. 
	
DKR Oasis Capital.  Ethan Benovitz  50/50 split with Midtown

	
7. 
	
Platinum Partners LP.  Mark Nordlicht 50/50 split with Midtown

	
8. 
	
Enable Capital.   50/50 split with Midtown

	
9. 
	
Mid Summer Capital.  Scott Kauffman

	
10. 
	
Monarch

 

 

 

 

 

 

 

 

 

 

 

 

 

6Long-Term Stock Incentive Plan

    Exhibit
      10.1

    
 

    MATRIA
      HEALTHCARE, INC.

    LONG-TERM
      STOCK INCENTIVE PLAN

    

    

    1. Establishment,
      Purpose, and Definitions.

    

    (a) Matria
      Healthcare, Inc. (the “Company”) hereby amends and restates the Matria
      Healthcare, Inc. 2004 Stock Incentive Plan to provide additional incentives
      hereunder and renames the plan the Matria Healthcare, Inc. Long-Term Stock
      Incentive Plan (the “Plan”).

    

    (b) The
      purpose of the Plan is to allow the Company to attract and retain eligible
      individuals (as defined in Section 5 below) and to provide incentives to such
      individuals for their services, increased efforts, and successful achievements
      on behalf of or in the interests of the Company and its Affiliates and to
      maximize the rewards due them for those efforts and achievements. The Plan
      provides employees (including officers and directors who are employees) of
      the
      Company and of its Affiliates an opportunity to purchase shares of common stock,
      $0.01 par value per share, of the Company (the “Stock”) pursuant to options
      which may qualify as incentive stock options (referred to as “incentive stock
      options”) under Section 422 of the Internal Revenue Code of 1986, as amended
      (the “Code”), and employees, officers, independent contractors, and consultants
      of the Company and of its Affiliates an opportunity to purchase shares of Stock
      pursuant to options which are not described in Sections 422 or 423 of the Code
      (referred to as “non-qualified stock options”). The Plan also provides for the
      sale or bonus grant of Stock to eligible individuals in connection with the
      performance of services for the Company or its Affiliates. Finally, the Plan
      authorizes the grant of stock appreciation rights (“SARs”), either separately or
      in tandem with stock options, entitling holders to cash compensation measured
      by
      appreciation in the value of the Stock.

    

    (c) The
      term
“Affiliate” as used in the Plan means parent or subsidiary corporations of the
      Company, as defined in Sections 424(e) and (f) of the Code (but substituting
      “the Company” for “employer corporation”), including parents or subsidiaries of
      the Company that become such after adoption of the Plan.

    

    2. Administration
      of the Plan.

    

    (a) The
      Plan
      shall be administered by the Board of Directors of the Company (the “Board”).
      Subject to Section 2(f) below, the Board may delegate the responsibility for
      administering the Plan to a committee, under such terms and conditions as the
      Board shall determine (the “Committee”). To the extent necessary to exempt
      transactions under the Plan from Section 16(b) under the Securities Exchange
      Act
      of 1934, as amended (the “Exchange Act”): (i) the Committee shall consist of at
      least (a) two (2) members of the Board or (b) such lesser number of members
      of
      the Board as permitted by Rule 16b-3 adopted under the Exchange Act (“Rule
      16b-3”); and (ii) each member of the Committee shall be a Non-Employee Director
      (as defined in Rule 16b-3), or grants and awards under 

    

    
      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

    

    

    the
      Plan
      to persons subject to Section 16 of the Exchange Act (“Insiders”) shall be
      determined by a subcommittee consisting solely of Non-Employee Directors or
      by
      the full Board. Members of the Committee shall serve at the pleasure of the
      Board. The Committee shall select one of its members as chair of the Committee
      and shall hold meetings at such times and places as it may determine. A majority
      of the Committee shall constitute a quorum, and acts of the Committee at which
      a
      quorum is present, or acts reduced to or approved in writing by all members
      of
      the Committee, shall be the valid acts of the Committee. If the Board does
      not
      delegate administration of the Plan to the Committee, then each reference in
      this Plan to the “Committee” shall be construed to refer to the
      Board.

    

    (b) The
      Committee shall determine which eligible individuals (as defined in Section
      5
      below) shall be granted options under the Plan, the timing of such grants,
      the
      terms thereof (including any restrictions on the Stock, and the number of shares
      subject to such options).

    

    (c) The
      Committee shall also determine which eligible individuals (as defined in Section
      5 below) shall be granted or issued SARs or Stock (other than pursuant to the
      exercise of options) under the Plan, the timing of such grants or issuances,
      the
      terms thereof (including any restrictions and the consideration, if any, to
      be
      paid therefor), and the number of shares or SARs to be granted.

    

    (d) Subject
      to Section 16 below, the Committee may (i) amend the terms of any outstanding
      option or SAR granted under this Plan, but any amendment that would adversely
      affect the holder’s rights under an outstanding option or SAR shall not be made
      without the holder’s written consent; (ii) with the holder’s written consent,
      cancel any outstanding option or SAR or accept any outstanding option or SAR
      in
      exchange for a new option, SAR, or Stock under the Plan on such terms determined
      by the Committee; or (iii) amend any stock purchase agreement or stock bonus
      agreement relating to sales or bonuses of Stock under the Plan, but any
      amendment that would adversely affect the individual’s rights to the Stock shall
      not be made without his or her written consent. Notwithstanding the foregoing,
      without the prior approval of the Company’s stockholders sufficient to approve
      the Plan in the first instance: the Committee shall not reprice any option
      by
      lowering the option exercise price of a previously granted award, or by
      cancellation of outstanding options with subsequent replacement, or regrant
      of
      options with lower exercise prices.

    

    (e) The
      Committee shall have the sole authority, in its absolute discretion, to adopt,
      amend, and rescind such rules and regulations as, in its opinion, may be
      advisable in the administration of the Plan, to construe and interpret the
      Plan,
      the rules and regulations, and the instruments evidencing options, SARs, or
      Stock granted or issued under the Plan, and to make all other determinations
      deemed necessary or advisable for the administration of the Plan. All decisions,
      determinations, and interpretations of the Committee shall be binding on all
      participants.

    

    
      
        
          
          

        

        
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    (f) Notwithstanding
      the foregoing provisions of this Section 2, grants of options or SARs or Stock
      to any “Covered Employee,” as such term is defined by Section 162(m) of the
      Code, shall be made only by a subcommittee of the Committee which, in addition
      to meeting other applicable requirements of this Section 2, is composed solely
      of two (2) or more outside directors within the meaning of Section 162(m) of
      the
      Code and the regulations thereunder (the “Subcommittee”), to the extent
      necessary to qualify such grants as “performance-based compensation” under
      Section 162(m) of the Code and the regulations thereunder. In the case of grants
      to Covered Employees, references to the “Committee” shall be deemed to be
      references to the Subcommittee, as specified above.

    

    3. Fair
      Market Value.
      Where
      this Plan uses the term “fair market value” in connection with the Stock, such
      fair market value shall be determined by the Committee as follows:

    

    (a) If
      the
      Stock is listed on any established stock exchange or a national market system,
      including, without limitation, the NASDAQ National Market, its fair market
      value
      shall be the closing selling price for such stock on the principal securities
      exchange or national market system on which the Stock is at the time listed
      for
      trading. If there are no sales of Stock on that date, then the closing selling
      price for the Stock on the next preceding day for which such closing price
      is
      quoted shall be determinative of fair market value; or

    

    (b) If
      the
      Stock is not traded on an exchange or national market system, its fair market
      value shall be determined in good faith by the Committee, and such determination
      shall be conclusive and binding on all persons.

    

    4. Stock
      Subject to the Plan.

    

    (a) Subject
      to adjustment pursuant to Section 4(c) below, the aggregate number of shares
      of
      Stock available for issuance under the Plan and during the life of the Plan
      shall be 1,610,000 shares of Stock. The number of shares of Stock available
      for
      issuance as incentive stock options shall be 1,610,000 shares of
      Stock.

    

    (b) To
      the
      extent any shares of Stock covered by an option are not delivered to an optionee
      because the option is surrendered, forfeited, canceled or for any other reason
      ceases to be exercisable in whole or in part or the shares of Stock are not
      delivered because the Option is used to satisfy the applicable tax withholding
      obligation, such shares shall continue to be available under the Plan and shall
      not be deemed to have been delivered for purposes of determining the maximum
      number of shares of Stock available for delivery under the Plan. If the exercise
      price of any option granted under the Plan is satisfied by tendering shares
      of
      Stock to the Company, only the number of shares of Stock issued net of the
      shares of Stock tendered shall be deemed delivered for purposes of determining
      the maximum number of shares of Stock available for delivery under the Plan.
      Any
      shares of Stock forfeited to the Company pursuant to the terms of agreements
      evidencing sales or bonus grants under the Plan shall not be deemed to have
      been

    

    
      
        
          
          

        

        
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    delivered
      for purposes of determining the maximum number of shares of Stock available
      for
      delivery under the Plan.

    

    (c) If
      there
      is any change in the Stock through merger, consolidation, reorganization,
      recapitalization, reincorporation, stock split, stock dividend (in excess of
      two
      percent (2%)), or other change in the corporate structure of the Company,
      appropriate adjustments shall be made by the Committee in order to preserve
      but
      not to increase the benefits to the outstanding options, SARs and stock purchase
      or stock bonus awards under the Plan, including adjustments to the aggregate
      number and kind of shares subject to the Plan, or to outstanding stock purchase
      or stock bonus agreements, or SAR agreements, and the number and kind of shares
      and the price per share subject to outstanding options.

    

    5. Eligible
      Individuals.
      Individuals who shall be eligible to have granted to them options, SARs, or
      Stock under the Plan shall be such employees, officers, independent contractors,
      and consultants of the Company or an Affiliate as the Committee, in its
      discretion, shall designate from time to time. Notwithstanding the foregoing,
      only employees of the Company or an Affiliate (including officers and directors
      who are bona fide employees) shall be eligible to receive incentive stock
      options.

    

    6. Terms
      and Conditions of Options and SARs.

    

    (a) Each
      option granted pursuant to the Plan will be evidenced by a written stock option
      agreement executed by the Company and the person to whom such option is
      granted.

    

    (b) The
      Committee shall determine the term of each option granted under the Plan;
      provided, however, that the term of an incentive stock option shall not be
      for
      more than ten (10) years and that, in the case of an incentive stock option
      granted to a person possessing more than ten percent (10%) of the combined
      voting power of the Company or an Affiliate, the term of each incentive stock
      option shall be no more than five (5) years. 

    

    (c) In
      the
      case of incentive stock options, the aggregate fair market value (determined
      as
      of the time such option is granted) of the Stock with respect to which incentive
      stock options are exercisable for the first time by an eligible employee in
      any
      calendar year (under this Plan and any other plans of the Company or its
      Affiliates) shall not exceed $100,000. If the aggregate fair market value of
      stock with respect to which incentive stock options are exercisable by an
      optionee for the first time during any calendar year exceeds $100,000, such
      options shall be treated as non-qualified options to the extent required by
      Section 422 of the Code. The rule set forth in the preceding sentence shall
      be
      applied by taking options into account in the order in which they were
      granted.

    

    
      
        
          
          

        

        
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    (d) The
      exercise price of each option shall be not less than the per share fair market
      value of the Stock subject to such option on the date the option is granted.
      Notwithstanding the foregoing, (i) in the case of an incentive stock option
      granted to a person possessing more than ten percent (10%) of the combined
      voting power of the Company or an Affiliate, the exercise price shall be not
      less than one hundred ten percent (110%) of the fair market value of the Stock
      on the date the option is granted; and (ii) in the case of an option granted
      to
      a Covered Employee, the exercise price shall be not less than the per share
      fair
      market value of the Stock subject to such option on the date the option is
      granted. The exercise price of an option or SAR shall be subject to adjustment
      to the extent provided in Section 4(c) above, but, in the case of a grant to
      a
      Covered Employee, only to the extent such adjustment does not cause the grant
      to
      fail to qualify as “performance-based compensation” within the meaning of
      Section 162(m) of the Code and the regulations thereunder.

    

    (e) The
      Committee may, under such terms and conditions as it deems appropriate,
      authorize the issuance of SARs evidenced by a written SAR agreement (which,
      in
      the case of tandem options, may be part of the option agreement to which the
      SAR
      relates) executed by the Company and the person to whom the SARs are granted.
      The SAR agreement shall specify the term for the SARs covered thereby, the
      cash
      amount payable or securities issuable upon exercise of the SAR, and contain
      such
      other terms, provisions, and conditions consistent with this Plan, as may be
      determined by the Committee.

    

    (f) Payment
      of the purchase price and any withholding amounts pursuant to Section 11 upon
      the exercise of any option or SAR granted under this Plan shall be made in
      cash
      or by optionee’s personal check, a certified check, a bank draft, or a postal or
      express money order payable to the order of the Company in lawful money of
      the
      United States; provided, however, that the Committee, in its sole discretion,
      may permit an optionee to pay the option price and any such withholding amounts
      in whole or in part (i) with shares of Stock owned by the optionee (provided
      that any shares of stock tendered for payment shall have been owned for a period
      of six (6) months, or such other period as in the opinion of the Committee
      shall
      be sufficient to avoid an accounting compensation charge with respect to the
      shares used to pay the option price); (ii) by delivery on a form prescribed
      by
      the Committee of an irrevocable direction to a securities broker approved by
      the
      Committee to sell shares of Stock and deliver all or a portion of the proceeds
      to the Company in payment for the Stock; (iii) by delivery of the optionee’s
      promissory note with such recourse, interest, security, and redemption
      provisions as the Committee in its discretion determines appropriate (provided,
      however, no promissory note may be accepted from an optionee that would be
      in
      violation of the Sarbanes Oxley Act of 2002 or any other federal or state law);
      or (iv) in any combination of the foregoing. Any Stock used to exercise options
      shall be valued at its fair market value on the date of the exercise of the
      option.

    

    
      
        
          
          

        

        
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    (g) In
      the
      event that the exercise price is satisfied by shares withheld from the shares
      of
      Stock otherwise deliverable to the optionee, the Committee may issue the
      optionee an additional option, with terms identical to the option agreement
      under which the option was exercised, entitling the optionee to purchase
      additional shares of Stock equal to the number of shares so withheld but at
      an
      exercise price equal to the fair market value of the Stock on the grant date
      of
      the new option. Such additional option shall be subject to the provisions of
      Section 6(i) below.

    

    (h) The
      stock
      option agreement or SAR agreement may contain such other terms, provisions,
      and
      conditions consistent with this Plan, as may be determined by the Committee.
      If
      an option, or any part thereof, is intended to qualify as an incentive stock
      option, the stock option agreement shall contain those terms and conditions
      which are necessary to qualify it.

    

    (i) The
      maximum number of shares of Stock with respect to which SARs or options to
      acquire Stock may be granted, or sales or bonus grants of Stock may be made,
      to
      any individual per calendar year under this Plan shall not exceed 150,000 shares
      (which number may be increased without stockholder approval to reflect
      adjustments under Section 4(c) above, to the extent such adjustment, in the
      case
      of a grant to a Covered Employee, does not cause the grant to fail to qualify
      as
“performance-based compensation” within the meaning of Section 162(m) of the
      Code and the regulations thereunder). To the extent required to cause options
      granted to Covered Employees to qualify as “performance-based compensation”
under Section 162(m) of the Code and the regulations thereunder, in applying
      the
      foregoing limitation with respect to an employee, if any option is canceled,
      the
      canceled option shall continue to count against the maximum number of shares
      for
      which options may be granted to the employee under this Section 6(i). For this
      purpose, the repricing of an option shall be treated as a cancellation of the
      existing option and the grant of a new option to the extent required by Section
      162(m) of the Code or the regulations thereunder. The preceding sentence shall
      also apply in the case of an SAR, if, after the award is made, the base amount
      on which stock appreciation is calculated is reduced to reflect a reduction
      in
      the fair market value of the Stock.

    

    7. Terms
      and Conditions of Stock Purchases and Bonuses.

    

    (a) Each
      sale
      or bonus grant of Stock pursuant to the Plan will be evidenced by a written
      stock purchase agreement or stock bonus agreement, as applicable, executed
      by
      the Company and the person to whom such stock is sold or granted.

    

    (b) The
      stock
      purchase agreement or stock bonus agreement may contain such other terms,
      provisions, and conditions consistent with this Plan, as may be determined
      by
      the Committee, including, not by way of limitation, the consideration, if any,
      to be paid for the Stock, restrictions on transfer, forfeiture provisions,
      repurchase provisions, and vesting provisions. Notwithstanding the foregoing,
      the restriction period applicable to restricted stock awards shall be at least
      one (1) year in the case of performance-based restricted stock awards and at
      least three (3) years in the case of all other restricted stock awards.

    

    
      
        
          
          

        

        
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    (c) Stock
      bonuses granted to officers and directors shall be expressly in lieu of salary
      or cash bonus.

    

    8. Use
      of Proceeds.
      Cash
      proceeds realized from the exercise of options granted under the Plan or from
      other sales of Stock under the Plan shall constitute general funds of the
      Company.

    

    9. Amendment,
      Suspension, or Termination of the Plan.

    

    (a) Subject
      to Section 16 below, the Board may at any time amend, suspend, or terminate
      the
      Plan as it deems advisable; provided that such amendment, suspension, or
      termination complies with all applicable requirements of state and federal
      law,
      including any applicable requirement that the Plan or an amendment to the Plan
      be approved by the stockholders, and provided further that, except as provided
      in Section 4(c) above and Section 15 below, the Board shall in no event amend
      the Plan in the following respects without the approval of stockholders then
      sufficient to approve the Plan in the first instance:

    

    (i) to
      increase the maximum number of shares of Stock provided in Section 6(i) above,
      with respect to which restricted stock, SARs, or options to acquire Stock may
      be
      granted to any Covered Employee per calendar year under the Plan;
      or

    

    (ii) to
      materially increase the number of shares of Stock available under the Plan,
      or
      to increase the number of shares of Stock available for grant of incentive
      stock
      options under the Plan; or

    

    (iii) to
      materially modify the eligibility requirements for participation in the Plan
      or
      the class of employees eligible to receive options under the Plan, or to change
      the designation or class of persons eligible to receive incentive stock options
      under the Plan; or

    

    (iv) to
      permit
      repricing of options by lowering the option exercise price of a previously
      granted award, or by cancellation of outstanding options with subsequent
      replacement, or regrants of options with lower exercise prices; or

    

    (v) to
      otherwise materially increase the benefits to participants.

    

    (b) No
      option
      or SAR may be granted nor may any Stock be issued (other than upon exercise
      of
      outstanding options) under the Plan during any suspension or after the
      termination of the Plan, and no amendment, suspension, or termination of the
      Plan shall, without the affected individual’s consent, alter or impair any
      rights or obligations under any option or SAR previously granted under the
      Plan.
      The Plan shall terminate 

    

    
      
        
          
          

        

        
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    with
      respect to the grant of incentive stock options on April 12, 2015, the tenth
      anniversary of the date of adoption of this amendment and restatement of the
      Plan, unless previously terminated by the Board pursuant to this Section
      9.

    

    10. Assignability.
      No
      option or SAR granted pursuant to this Plan shall be transferable by the holder
      except to the extent provided in the option agreement or the SAR agreement
      covering the option or the SAR. Stock subject to a stock purchase agreement
      or a
      stock bonus agreement shall be transferable only as provided in such agreement.
      Notwithstanding the foregoing, if required by the Code, each incentive stock
      option under the Plan shall be transferable by the optionee only by will or
      the
      laws of descent and distribution, and, during the optionee’s lifetime, be
      exercisable only by the optionee.

    

    11. Withholding
      Taxes.
      No Stock
      shall be granted or sold under the Plan to any individual, and no option or
      SAR
      may be exercised, until the individual has made arrangements acceptable to
      the
      Committee for the satisfaction of federal, state, and local income and
      employment tax withholding obligations, including, without limitation,
      obligations incident to the receipt of Stock under the Plan, the lapsing of
      restrictions applicable to such Stock, the failure to satisfy the conditions
      for
      treatment as incentive stock options under the applicable tax law, or the
      receipt of cash payments.

    

    12. Restrictions
      on Transfer of Shares.
      The
      Committee may require that the Stock acquired pursuant to the Plan be subject
      to
      such restrictions and agreements regarding sale, assignment, encumbrances,
      or
      other transfer as are in effect among the stockholders of the Company at the
      time such Stock is acquired, as well as to such other restrictions as the
      Committee shall deem appropriate.

    

    13. Change
      in Control.

    

    (a) For
      purposes of this Section 13, a “Change in Control” shall be deemed to occur
      upon:

    

    (i) the
      direct or indirect acquisition by any person or related group of persons (other
      than an acquisition from or by the Company or by a Company-sponsored employee
      benefit plan) of beneficial ownership (within the meaning of Rule 13d-3 of
      the
      Exchange Act of securities possessing more than fifty percent (50%) of the
      total
      combined voting power of the Company’s outstanding Stock;

    

    (ii) a
      change
      in the composition of the Board over a period of thirty-six (36) months or
      less,
      such that a majority of the Board members (rounded up to the next whole number)
      ceases, by reason of one or more contested elections for Board membership or
      by
      one or more actions by written consent of stockholders, to be comprised of
      individuals who either (A) have been Board members continuously since the
      beginning of such period, or (B) have been elected or 

    

    
      
        
          
          

        

        
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    nominated
      for election as Board members during such period by at least a majority of
      the
      Board members described in clause (A) who were still in office at the time
      such
      election or nomination was approved by the Board.

    

    (b) For
      purposes of this Section 13, a “Corporate Transaction” shall be deemed to occur
      upon any of the following transactions to which the Company is a
      party:

    

    (i) approval
      by the Company’s stockholders of a merger or consolidation in which the Company
      is not the surviving entity, except for a transaction the principal purpose
      of
      which is to change the state in which the Company is incorporated;

    

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

    

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

    

    (c) In
      its
      discretion, the Committee may provide in any stock option, SAR, Stock bonus,
      or
      Stock purchase agreement (or in an amendment thereto) evidencing an option,
      SAR,
      Stock bonus, or Stock purchase agreement hereunder that, in the event of any
      Corporate Transaction or an event giving rise to a Change in Control, any
      outstanding options or SARs covered by such an agreement shall be fully vested,
      non-forfeitable, and become exercisable, and that any restricted Stock covered
      by such an agreement shall be released from restrictions on transfer and
      repurchase or forfeiture rights, as of the date of the Change in Control or
      Corporate Transaction. However, the Committee may provide in any such agreement
      that, in the case of a Corporate Transaction, the Committee may determine that
      an outstanding option will not be so accelerated if and to the extent, (i)
      such
      option is either to be assumed by the successor or parent thereof or to be
      replaced with a comparable option to purchase shares of the capital stock of
      the
      successor corporation or parent thereof; or (ii) such option is to be replaced
      with a cash incentive program of the successor corporation that preserves the
      option spread existing at the time of the Corporate Transaction and provides
      for
      subsequent payment in accordance with the same vesting schedule applicable
      to
      such option.

    

    (d) If
      the
      Committee determines to incorporate a Change in Control or Corporate Transaction
      acceleration provision in any option or SAR agreement hereunder, the agreement
      shall provide that, (i) in the event of a Change in Control or Corporate
      Transaction described in clauses (a)(i), (a)(ii), and (b)(iii) of Section 13
      above, the option or SAR shall remain exercisable for the remaining term of
      the
      option or SAR; and (ii) in 

    

    
      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

    

    

    the
      event
      of a Corporate Transaction described in clauses (i) or (ii) of Section 13(b)
      above, the option or SAR shall terminate as of the effective date of the
      Corporate Transaction described therein, unless such option or SAR is assumed
      by
      a successor corporation in the event of a Corporate Transaction described in
      clause (i) of Section 13(b). If an option or SAR is assumed in the event of
      a
      Corporate Transaction described in clause (i) of Section 13(b) above, the option
      or SAR shall remain exercisable for the remaining term of the option or SAR.
      In
      no event shall any option or SAR under the Plan be exercised after the
      expiration of the term provided for in the related stock option agreement or
      SAR
      agreement pursuant to Section 6(b) or (e).

    

    (e) The
      Committee may provide in any option or SAR agreement hereunder that should
      the
      Company dispose of its equity holding in any subsidiary effected by, (i) merger
      or consolidation involving that subsidiary; (ii) the sale of all or distribution
      of substantially all of the assets of that subsidiary; or (iii) the Company’s
      sale of or distribution to stockholders of substantially all of the outstanding
      capital stock of such subsidiary (“Subsidiary Disposition”) while a holder of
      the option or SAR is engaged in the performance of services for the affected
      subsidiary corporation, then such option or SAR shall, immediately prior to
      the
      effective date of such Subsidiary Disposition, become fully exercisable with
      respect to all of the shares at the time represented by such option or SAR
      and
      may be exercised with respect to any or all of such shares. Any such option
      or
      SAR shall remain exercisable until the expiration or sooner termination of
      the
      term of the option or SAR.

    

    14. Stockholder
      Approval.
      Continuance of the Plan shall be subject to approval by the stockholders of
      the
      Company within twelve (12) months before or after the date this amendment and
      restatement of the Plan is adopted. Any incentive stock options granted
      hereunder and any options, SARs, or Stock granted to Covered Employees hereunder
      shall become effective only upon such stockholder approval. The Committee may
      grant incentive stock options or may grant options, SARs, or Stock to Covered
      Employees under the Plan prior to such stockholder approval, but until
      stockholder approval is obtained, no such option or SAR shall be exercisable
      and
      no such Stock grant shall be effective. In the event that such stockholder
      approval is not obtained within the period provided above, all options, SARs,
      or
      Stock grants previously granted above shall terminate. If such stockholder
      approval is obtained at a duly held stockholders’ meeting, the Plan must be
      approved by a majority of the shares present or represented at the meeting
      and
      entitled to vote at such stockholders’ meeting at which a quorum, representing a
      majority of all outstanding voting stock of the Company, is, either in person
      or
      by proxy, present. If such stockholder approval is obtained by written consent,
      it must be obtained by the written consent of the holders of a majority of
      all
      outstanding stock of the Company entitled to vote on such matter. However,
      approval at a meeting or by written consent may be obtained to a lesser degree
      of stockholder approval if the Board determines, in its discretion after
      consultation with the Company’s legal counsel, that such a lesser degree of
      stockholder approval will comply with all applicable laws and will not adversely
      affect the qualification of the Plan under either Section 162(m) or 422 of
      the
      Code, or Rule 16b-3.

    

    
      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

    

    

    15. Rule
      16b-3 Compliance.

    

    (a) With
      respect to Insiders, transactions under the Plan are intended to comply with
      all
      applicable conditions of Rule 16b-3. To the extent any provision of the Plan
      or
      action by the Committee fails to so comply, it shall be deemed null and void,
      to
      the extent permitted by law and deemed advisable by the Committee. Moreover,
      in
      the event the Plan does not include a provision required by Rule 16b-3 to be
      stated therein as a condition to exemption from Section 16(b) of the Exchange
      Act, such provision (other than one relating to eligibility requirements or
      the
      price and amount of awards) shall be deemed automatically to be incorporated
      by
      reference into the Plan insofar as transactions with Insiders are
      concerned.

    

    (b) If,
      subsequent to the Board’s adoption of the Plan, Rule 16b-3 is amended to delete
      any of the Rule 16b-3 conditions or requirements addressed by the provisions
      of
      the Plan, the Board may amend the Plan without stockholder approval (unless
      such
      approval is required by Rule 16b-3, as so amended) to delete or otherwise amend
      any such provisions no longer required for grants of options, SARs, and Stock
      under the Plan to Insiders to be exempt from Section 16(b) liability under
      the
      Exchange Act.

    

    16. Compliance
      with Section
      409A of the Code.
      To the
      extent any provisions of the Plan, or any grants or payments under the Plan,
      are
      subject to Section 409A of the Code, it is intended that the Plan comply fully
      with and satisfy all the requirements of Section 409A of the Code (including,
      to
      the extent necessary, applying the definition of Change in Control in Section
      409A(a)(2)(A)(v) of the Code to any award that is subject to Section 409A of
      the
      Code). Any provision, grant or payment that would cause the Plan or any grant
      or
      payment made hereunder to fail to satisfy Section 409A of the Code shall have
      no
      force and effect until amended to comply with Section 409A of the Code (which
      amendment may be retroactive to the extent permitted by Section 409A of the
      Code, and which may be made without the consent of the holder of an option
      or
      SAR).

    

    17. The
      Right of the Company to Terminate Employment.
      No
      provision in the Plan or any Option shall confer upon any optionee any right
      to
      continue in the employment of the Company or an Affiliate or to interfere in
      any
      way with the right of the Company or an Affiliate to terminate his employment
      at
      any time.

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