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    2009
OMNIBUS SECURITIES AND INCENTIVE PLAN

     

    CHINANET
ONLINE HOLDINGS, INC.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      CHINANET
ONLINE HOLDINGS, INC.

      2009
OMNIBUS SECURITIES AND INCENTIVE PLAN

      

      Table Of
Contents

    

    

    
      	 	 	
              Page

            
	
              ARTICLE
      I

            	
              PURPOSE

            	
              1

            
	 	 	 	 
	
              ARTICLE
      II

            	
              DEFINITIONS

            	
              1

            
	
               

            	 	 	 
	
              ARTICLE
      III

            	
              EFFECTIVE
      DATE OF PLAN

            	
              7

            
	 	 	 	 
	
              ARTICLE
      IV

            	
              ADMINISTRATION

            	
              7

            
	 
      	
              Section
      4.1

            	
              Composition
      of Committee

            	
              7

            
	 
      	
              Section
      4.2

            	
              Powers

            	
              7

            
	 
      	
              Section
      4.3

            	
              Additional
      Powers

            	
              8

            
	 
      	
              Section
      4.4

            	
              Committee
      Action

            	
              8

            
	 	 	 	 
	
              ARTICLE
      V

            	
              STOCK
      SUBJECT TO PLAN AND LIMITATIONS THEREON

            	
              8

            
	 
      	
              Section
      5.1

            	
              Stock
      Grant and Award Limits

            	
              8

            
	 
      	
              Section
      5.2

            	
              Stock
      Offered

            	
              9

            
	 	 	 	 
	
              ARTICLE
      VI

            	
              ELIGIBILITY
      FOR AWARDS; TERMINATION OF EMPLOYMENT, DIRECTOR STATUS OR CONSULTANT
      STATUS

            	
              9

            
	 
      	
              Section
      6.1

            	
              Eligibility

            	
              9

            
	 
      	
              Section
      6.2

            	
              Termination
      of Employment or Director Status

            	
              9

            
	 
      	
              Section
      6.3

            	
              Termination
      of Consultant Status

            	
              10

            
	 
      	
              Section
      6.4

            	
              Special
      Termination Rule

            	
              11

            
	 
      	
              Section
      6.5

            	
              Termination
      for Cause

            	
              12

            
	 	 	 	 
	
              ARTICLE
      VII

            	
              OPTIONS

            	
              12

            
	 
      	
              Section
      7.1

            	
              Option
      Period

            	
              12

            
	 
      	
              Section
      7.2

            	
              Limitations
      on Exercise of Option

            	
              12

            
	 
      	
              Section
      7.3

            	
              Special
      Limitations on Incentive Stock Options

            	
              12

            
	 
      	
              Section
      7.4

            	
              Option
      Agreement

            	
              12

            
	 
      	
              Section
      7.5

            	
              Option
      Price and Payment

            	
              13

            
	 
      	
              Section
      7.6

            	
              Stockholder
      Rights and Privileges

            	
              14

            
	 
      	
              Section
      7.7

            	
              Options
      and Rights in Substitution for Stock Options Granted by Other
      Corporations

            	
              14

            
	 
      	
              Section
      7.8

            	
              Prohibition
      Against Repricing

            	
              14

            
	 	 	 	 
	
              ARTICLE
      VIII

            	
              RESTRICTED
      STOCK AWARDS

            	
              14

            
	 
      	
              Section
      8.1

            	
              Restriction
      Period to be Established by Committee

            	
              14

            
	 
      	
              Section
      8.2

            	
              Other
      Terms and Conditions

            	
              14

            
	 
      	
              Section
      8.3

            	
              Payment
      for Restricted Stock

            	
              15

            
	 
      	
              Section
      8.4

            	
              Restricted
      Stock Award Agreements

            	
              15

            
	 	 	 	 
	
              ARTICLE
      IX

            	
              UNRESTRICTED
      STOCK AWARDS

            	
              15

            
	 	 	 	 
	
              ARTICLE
      X

            	
              RESTRICTED
      STOCK UNIT AWARDS

            	
              15

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      CHINANET
ONLINE HOLDINGS, INC.

      2009
OMNIBUS SECURITIES AND INCENTIVE PLAN

      

      Table Of Contents
(continued)

       

    

    
      	 	 	 	

              Page 

            
	 
      	
              Section
      10.1

            	
              Terms
      and Conditions

            	
              15

            
	 
      	
              Section
      10.2

            	
              Payments

            	
              16

            
	 	 	 	 
	
              ARTICLE
      XI

            	
              PERFORMANCE
      UNIT AWARDS

            	
              16

            
	 
      	
              Section
      11.1

            	
              Terms
      and Conditions

            	
              16

            
	 
      	
              Section
      11.2

            	
              Payments

            	
              16

            
	 	 	 	 
	
              ARTICLE
      XII

            	
              PERFORMANCE
      SHARE AWARDS

            	
              16

            
	 
      	
              Section
      12.1

            	
              Terms
      and Conditions

            	
              16

            
	 
      	
              Section
      12.2

            	
              Stockholder
      Rights and Privileges

            	
              17

            
	 	 	 	 
	
              ARTICLE
      XIII

            	
              DISTRIBUTION
      EQUIVALENT RIGHTS

            	
              17

            
	 
      	
              Section
      13.1

            	
              Terms
      and Conditions

            	
              17

            
	 
      	
              Section
      13.2

            	
              Interest
      Equivalents

            	
              17

            
	 	 	 	 
	
              ARTICLE
      XIV

            	
              STOCK
      APPRECIATION RIGHTS

            	
              18

            
	 
      	
              Section
      14.1

            	
              Terms
      and Conditions

            	
              18

            
	 
      	
              Section
      14.2

            	
              Tandem
      Stock Appreciation Rights

            	
              18

            
	 	 	 	 
	
              ARTICLE
      XV

            	
              RECAPITALIZATION
      OR REORGANIZATION

            	
              19

            
	 
      	
              Section
      15.1

            	
              Adjustments
      to Common Stock

            	
                    
                19

              

            
	 
      	
              Section
      15.2

            	
              Recapitalization

            	
                    
                19

              

            
	 
      	
              Section
      15.3

            	
              Other
      Events

            	
                    
                19

              

            
	 
      	
              Section
      15.4

            	
              Powers
      Not Affected

            	
              20

            
	 
      	
              Section
      15.5

            	
              No
      Adjustment for Certain Awards

            	
              20

            
	 	 	 	 
	
              ARTICLE
      XVI

            	
              AMENDMENT
      AND TERMINATION OF PLAN

            	
              20

            
	 	 	 	 
	
              ARTICLE
      XVII

            	
              MISCELLANEOUS

            	
              21

            
	 
      	
              Section
      17.1

            	
              No
      Right to Award

            	
              21

            
	 
      	
              Section
      17.2

            	
              No
      Rights Conferred

            	
              21

            
	 
      	
              Section
      17.3

            	
              Other
      Laws; No Fractional Shares; Withholding

            	
              21

            
	 
      	
              Section
      17.4

            	
              No
      Restriction on Corporate Action

            	
              22

            
	 
      	
              Section
      17.5

            	
              Restrictions
      on Transfer

            	
              22

            
	 
      	
              Section
      17.6

            	
              Beneficiary
      Designations

            	
              22

            
	 
      	
              Section
      17.7

            	
              Rule
      16b-3

            	
              22

            
	 
      	
              Section
      17.8

            	
              Section
      162(m)

            	
              23

            
	 
      	
              Section
      17.9

            	
              Section
      409A

            	
              24

            
	 
      	
              Section
      17.10

            	
              Indemnification

            	
              24

            
	 
      	
              Section
      17.11

            	
              Other
      Plans

            	
              24

            
	 
      	
              Section
      17.12

            	
              Limits
      of Liability

            	
              24

            
	 
      	
              Section
      17.13

            	
              Governing
      Law

            	
              25

            
	 
      	
              Section
      17.14

            	
              Severability
      of Provisions

            	
              25

            

    

     

     

    
      
        
        

      

      
        ii

        
          

        

      

      
        
        

      

    

    
      CHINANET
ONLINE HOLDINGS, INC.

      2009
OMNIBUS SECURITIES AND INCENTIVE PLAN

      

      Table Of Contents
(continued)

       

    

    
      	 	 	 	

              Page

            
	 
      	
              Section
      17.15

            	
              No
      Funding

            	
              25

            
	 
      	
              Section
      17.16

            	
              Headings

            	
              25

            
	 
      	
              Section
      17.17

            	
              Terms
      of Award Agreements

            	
              25

            
	 
      	
              Section
      17.18

            	
              California
      Information Requirements

            	
              25

            

    

    

    

    
      
        
        

      

      
        iii

        
          

        

      

      
        
        

      

    

    

    

    CHINANET
ONLINE HOLDINGS, INC.

    2009
OMNIBUS SECURITIES AND INCENTIVE PLAN

     

    ARTICLE
I

    PURPOSE

     

    The
purpose of this ChinaNet Online Holdings, Inc. 2009 Omnibus Securities and
Incentive Plan (the “Plan”) is to benefit
the stockholders of ChinaNet Online Holdings, Inc., a Nevada corporation (the
“Company”), by
assisting the Company to attract, retain and provide incentives to key
management employees and nonemployee directors of, and non-employee consultants
to, the Company and its Affiliates, and to align the interests of such
employees, nonemployee directors and nonemployee consultants with those of the
Company’s stockholders. Accordingly, the Plan provides for the granting of
Distribution Equivalent Rights, Incentive Stock Options, Non-Qualified Stock
Options, Performance Share Awards, Performance Unit Awards, Restricted Stock
Awards, Restricted Stock Unit Awards, Stock Appreciation Rights, Tandem Stock
Appreciation Rights, Unrestricted Stock Awards or any combination of the
foregoing, as may be best suited to the circumstances of the particular
Employee, Director or Consultant as provided herein.

     

    ARTICLE
II

    DEFINITIONS

     

    The
following definitions shall be applicable throughout the Plan unless the context
otherwise requires:

     

    “Affiliate” shall mean
any corporation which, with respect to the Company, is a “subsidiary
corporation” within the meaning of Section 424(f) of the Code.

     

    “Award” shall mean,
individually or collectively, any Distribution Equivalent Right, Option,
Performance Share Award, Performance Unit Award, Restricted Stock Award,
Restricted Stock Unit Award, Stock Appreciation Right or Unrestricted Stock
Award.

     

    “Award Agreement”
shall mean a written agreement between the Company and the Holder with respect
to an Award, setting forth the terms and conditions of the Award, and each of
which shall constitute a part of the Plan.

     

    “Board” shall mean the
Board of Directors of the Company.

     

    “Cause” shall mean (i)
if the Holder is a party to an employment or similar agreement with the Company
or an Affiliate which agreement defines “Cause” (or a similar term) therein,
“Cause” shall
have the same meaning as provided for in such agreement, or (ii) for a Holder
who is not a party to such an agreement, “Cause” shall mean
termination by the Company or an Affiliate of the employment (or other service
relationship) of the Holder by reason of the Holder’s (A) intentional failure to
perform reasonably assigned duties, (B) dishonesty or willful misconduct in the
performance of the Holder’s duties, (C) involvement in a transaction which is
materially adverse to the Company or an Affiliate, (D) breach of fiduciary duty
involving personal profit, (E) willful violation of any law, rule, regulation or
court order (other than misdemeanor traffic violations and misdemeanors not
involving misuse or misappropriation of money or property), (F) commission of an
act of fraud or intentional misappropriation or conversion of any asset or
opportunity of the Company or an Affiliate, or (G) material breach of any
provision of the Plan or the Holder’s Award Agreement or any other written
agreement between the Holder and the Company or an Affiliate, in each case as
determined in good faith by the Board, the determination of which shall be
final, conclusive and binding on all parties.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Change of Control”
shall mean (i) for a Holder who is a party to an employment or consulting
agreement with the Company or an Affiliate which agreement defines “Change of
Control” (or a similar term) therein, “Change of Control”
shall have the same meaning as provided for in such agreement, or (ii) for a
Holder who is not a party to such an agreement, “Change of Control”
shall mean the satisfaction of any one or more of the following conditions (and
the “Change of Control” shall be deemed to have occurred as of the first day
that any one or more of the following conditions shall have been
satisfied):

     

    (a)           Any
person (as such term is used in paragraphs 13(d) and 14(d)(2) of the Exchange
Act, hereinafter in this definition, “Person”), other than
the Company or an Affiliate or an employee benefit plan of the Company or an
Affiliate, becomes the beneficial owner (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of securities of the Company representing
more than fifty percent (50%) of the combined voting power of the Company’s then
outstanding securities;

     

    (b)           The
closing of a merger, consolidation or other business combination (a “Business
Combination”) other than a Business Combination in which holders of the
Common Stock immediately prior to the Business Combination have substantially
the same proportionate ownership of common stock of the surviving corporation
immediately after the Business Combination as immediately before;

     

    (c)           The
closing of an agreement for the sale or disposition of all or substantially all
of the Company’s assets to any entity that is not an Affiliate;

     

    (d)           The
approval by the holders of shares of Common Stock of a plan of complete
liquidation of the Company other than a liquidation of the Company into any
subsidiary or a liquidation a result of which persons who were stockholders of
the Company immediately prior to such liquidation have substantially the same
proportionate ownership of shares of common stock of the surviving corporation
immediately after such liquidation as immediately before; or

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (e)           Within
any twenty-four (24) month period, the Incumbent Directors shall cease to
constitute at least a majority of the Board or the board of directors of any
successor to the Company; provided, however, that any
director elected to the Board, or nominated for election, by a majority of the
Incumbent Directors then still in office, shall be deemed to be an Incumbent
Director for purposes of this paragraph (e), but excluding, for this purpose,
any such individual whose initial assumption of office occurs as a result of
either an actual or threatened election contest with respect to the election or
removal of directors or other actual or threatened solicitation of proxies or
consents by or on behalf of an individual, entity or “group” other than the
Board (including, but not limited to, any such assumption that results from
paragraphs (a), (b), (c), or (d) of this definition).

     

    Notwithstanding
the foregoing, a “Change of Control” shall not be deemed to occur if the Company
files for bankruptcy, liquidation or reorganization under the United States
Bankruptcy Code.

     

    “Code” shall mean the
Internal Revenue Code of 1986, as amended. Reference in the Plan to any section
of the Code shall be deemed to include any amendments or successor provisions to
any section and any regulation under such section.

     

    “Committee” shall mean
a the Board, or at the option of the Board, a committee comprised of not less
than three (3) members of the Board who are selected by the Board as provided in
Section 4.1.

     

    “Common Stock” shall
mean the common stock, par value $0.001 per share, of the Company.

     

    “Company” shall mean
ChinaNet Online Holdings, Inc., a Nevada corporation, and any successor
thereto.

     

    “Consultant” shall
mean any non-Employee (individual or entity) advisor to the Company or an
Affiliate who or which has contracted directly with the Company or an Affiliate
to render bona fide consulting or advisory services thereto.

     

    “Director” shall mean
a member of the Board or a member of the board of directors of an Affiliate, in
either case, who is not an Employee.

     

    “Distribution Equivalent
Right” shall mean an Award granted under Article XIII of the Plan which
entitles the Holder to receive bookkeeping credits, cash payments and/or Common
Stock distributions equal in amount to the distributions that would have been
made to the Holder had the Holder held a specified number of shares of Common
Stock during the period the Holder held the Distribution Equivalent
Right.

     

    “Distribution Equivalent
Right Award Agreement” shall mean a written agreement between the Company
and a Holder with respect to a Distribution Equivalent Right Award.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    “Effective Date” shall
mean November 16, 2009.

     

    “Employee” shall mean
any employee, including officers, of the Company or an Affiliate.

     

    “Exchange Act” shall
mean the Securities Exchange Act of 1934, as amended.

     

    “Fair Market Value”
shall mean, as determined consistent with the applicable requirements of
Sections 409A and 422 of the Code, as of any specified date, the closing sales
price of the Common Stock for such date (or, in the event that the Common Stock
is not traded on such date, on the immediately preceding trading date) on the
Nasdaq Stock Market or a domestic or foreign national securities exchange
(including London’s Alternative Investment Market) on which the Common Stock may
be listed, as reported in The Wall Street Journal or The Financial
Times.  If the Common Stock is not listed on the Nasdaq Stock Market
or on a national securities exchange, but is quoted on the OTC Bulletin Board or
by the National Quotation Bureau, the Fair Market Value of the Common Stock
shall be the mean of the bid and asked prices per share of the Common Stock for
such date.  If the Common Stock is not quoted or listed as set forth
above, Fair Market Value shall be determined by the Board in good faith by any
fair and reasonable means (which means, with respect to a particular Award
grant, may be set forth with greater specificity in the applicable Award
Agreement).  The Fair Market Value of property other than Common Stock
shall be determined by the Board in good faith by any fair and reasonable means,
and consistent with the applicable requirements of Sections 409A and 422 of the
Code.

     

    “Family Member” shall
mean any child, stepchild, grandchild, parent, stepparent, spouse, former
spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law,
daughter-in-law, brother-in-law or sister-in-law, including adoptive
relationships, any person sharing the Holder’s household (other than a tenant or
employee of the Holder), a trust in which such persons have more than fifty
percent (50%) of the beneficial interest, a foundation in which such persons (or
the Holder) control the management of assets, and any other entity in which such
persons (or the Holder) own more than fifty percent (50%) of the voting
interests.

     

    “Holder” shall mean an
Employee, Director or Consultant who has been granted an Award or any such
individual’s beneficiary, estate or representative, to the extent
applicable.

     

    “Incentive Stock
Option” shall mean an Option which is intended by the Committee to
constitute an “incentive stock option” under Section 422 of the
Code.

     

    “Incumbent Director”
shall mean, with respect to any period of time specified under the Plan for
purposes of determining whether or not a Change of Control has occurred, the
individuals who were members of the Board at the beginning of such
period.

     

    “Non-Qualified Stock
Option” shall mean an Option which is not an Incentive Stock
Option.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    “Option” shall mean an
Award granted under Article VII of the Plan of an option to purchase shares of
Common Stock and includes both Incentive Stock Options and Non-Qualified Stock
Options.

     

    “Option Agreement”
shall mean a written agreement between the Company and a Holder with respect to
an Option.

     

    “Performance Criteria”
shall mean the criteria that the Committee selects for purposes of establishing
the Performance Goal(s) for a Holder for a Performance Period.

     

    “Performance Goals”
shall mean, for a Performance Period, the written goal or goals established by
the Committee for the Performance Period based upon the Performance
Criteria.

     

    “Performance Period”
shall mean one or more periods of time, which may be of varying and overlapping
durations, selected by the Committee, over which the attainment of one or more
Performance Goals or other business objectives shall be measured for purposes of
determining a Holder’s right to, and the payment of, a Qualified
Performance-Based Award.

     

    “Performance Share
Award” shall mean an Award granted under Article XII of the Plan under
which, upon the satisfaction of predetermined individual and/or Company (and/or
Affiliate) performance goals and/or objectives, shares of Common Stock are paid
to the Holder.

     

    “Performance Share Award
Agreement” shall mean a written agreement between the Company and a
Holder with respect to a Performance Share Award.

     

    “Performance Unit”
shall mean a Unit awarded to a Holder pursuant to a Performance Unit
Award.

     

    “Performance Unit
Award” shall mean an Award granted under Article XI of the Plan under
which, upon the satisfaction of predetermined individual and/or Company (and/or
Affiliate) performance goals and/or objectives, a cash payment shall be made to
the Holder, based on the number of Units awarded to the Holder.

     

    “Performance Unit Award
Agreement” shall mean a written agreement between the Company and a
Holder with respect to a Performance Unit Award.

     

    “Plan” shall mean this
ChinaNet Online Holdings, Inc. 2009 Omnibus Securities and Incentive Plan, as
amended from time to time, together with each of the Award Agreements utilized
hereunder.

     

    “Qualified Performance-Based
Award” shall mean Awards intended to qualify as “performance-based”
compensation under Section 162(m) of the Code.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    “Restricted Stock
Award” shall mean an Award granted under Article VIII of the Plan of
shares of Common Stock, the transferability of which by the Holder shall be
subject to Restrictions.

     

    “Restricted Stock Award
Agreement” shall mean a written agreement between the Company and a
Holder with respect to a Restricted Stock Award.

     

    “Restricted Stock Unit
Award”  shall mean an Award granted under Article X of the Plan
under which, upon the satisfaction of predetermined individual service-related
vesting requirements, a cash payment shall be made to the Holder, based on the
number of Units awarded to the Holder.

     

    “Restricted Stock Unit Award
Agreement”  shall mean a written agreement between the Company
and a Holder with respect to a Restricted Stock Unit Award.

     

    “Restriction Period”
shall mean the period of time for which shares of Common Stock subject to a
Restricted Stock Award shall be subject to Restrictions, as set forth in the
applicable Restricted Stock Award Agreement.

     

    “Restrictions” shall
mean forfeiture, transfer and/or other restrictions applicable to shares of
Common Stock awarded to an Employee, Director or Consultant under the Plan
pursuant to a Restricted Stock Award and set forth in a Restricted Stock Award
Agreement.

     

    “Rule 16b-3” shall
mean Rule 16b-3 promulgated by the Securities and Exchange Commission under the
Exchange Act, as such may be amended from time to time, and any successor rule,
regulation or statute fulfilling the same or a substantially similar
function.

     

    “Stock Appreciation
Right” shall mean an Award granted under Article XIV of the Plan of a
right, granted alone or in connection with a related Option, to receive a
payment on the date of exercise.

     

    “Stock Appreciation Right
Award Agreement” shall mean a written agreement between the Company and a
Holder with respect to a Stock Appreciation Right.

     

    “Tandem Stock Appreciation
Right” shall mean a Stock Appreciation Right granted in connection with a
related Option, the exercise of which shall result in termination of the
otherwise entitlement to purchase some or all of the shares of Common Stock
under the related Option, all as set forth in Section 14.2.

     

    “Ten Percent
Stockholder” shall mean an Employee who, at the time an Incentive Stock
Option is granted to him or her, owns stock possessing more than ten percent
(10%) of the total combined voting power of all classes of stock of the Company
or of any parent corporation or subsidiary corporation thereof (both as defined
in Section 424 of the Code), within the meaning of Section 422(b)(6) of the
Code.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    “Total and Permanent
Disability” shall mean the inability to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment
which can be expected to result in death or which has lasted or can be expected
to last for a continuous period of not less than twelve (12) months, all as
described in Section 22(e)(3) of the Code.

     

    “Units” shall mean
bookkeeping units, each of which represents such monetary amount as shall be
designated by the Committee in each Performance Unit Award Agreement, or
represents one (1) share of Common Stock for purposes of each Restricted Stock
Unit Award.

     

    “Unrestricted Stock
Award” shall mean an Award granted under Article IX of the Plan of shares
of Common Stock which are not subject to Restrictions.

     

    “Unrestricted Stock Award
Agreement” shall mean a written agreement between the Company and a
Holder with respect to an Unrestricted Stock Award.

     

    ARTICLE
III

    EFFECTIVE
DATE OF PLAN

     

    The Plan
shall be effective as of the Effective Date, provided that the Plan is approved
by the stockholders of the Company within twelve (12) months of such
date.

     

    ARTICLE
IV

    ADMINISTRATION

     

    Section
4.1    Composition of
Committee.  The Plan shall be administered by the Committee,
which shall be the Board or, at the option of the Board, a committee thereof as
appointed by the Board.  If the Committee shall be any committee of
the Board, the Committee shall consist solely of three (3) or more Directors who
are each (i) “outside directors” within the meaning of Section 162(m) of the
Code (“Outside
Directors”), (ii) “non-employee directors” within the meaning of Rule
16b-3 and (iii) “independent” for purposes of any applicable listing
requirements (“Non-Employee
Directors”); provided, however, that the
Board or the Committee may delegate to a committee of one or more members of the
Board who are not (x) Outside Directors, the authority to grant Awards to
eligible persons who are not (A) then “covered employees” within the meaning of
Section 162(m) of the Code and are not expected to be “covered employees” at the
time of recognition of income resulting from such Award, or (B) persons with
respect to whom the Company wishes to comply with the requirements of Section
162(m) of the Code, and/or (y) Non-Employee Directors, the authority to grant
Awards to eligible persons who are not then subject to the requirements of
Section 16 of the Exchange Act. If a member of the Committee shall be eligible
to receive an Award under the Plan, such Committee member shall have no
authority hereunder with respect to his or her own Award.

     

    Section
4.2    Powers. Subject to
the provisions of the Plan, the Committee shall have the sole authority, in its
discretion, to make all determinations under the Plan, including but not limited
to determining which Employees, Directors or Consultants shall receive an Award,
the time or times when an Award shall be made (the date of grant of an Award
shall be the date on which the Award is awarded by the Committee), what type of
Award shall be granted, the term of an Award, the date or dates on which an
Award vests (including acceleration of vesting), the form of any payment to be
made pursuant to an Award, the terms and conditions of an Award (including the
forfeiture of the Award (and/or any financial gain) if the Holder of the Award
violates any applicable restrictive covenant thereof), the Restrictions under a
Restricted Stock Award and the number of shares of Common Stock which may be
issued under an Award, all as applicable. In making such determinations the
Committee may take into account the nature of the services rendered by the
respective Employees, Directors and Consultants, their present and potential
contribution to the Company’s (or the Affiliate’s) success and such other
factors as the Committee in its discretion shall deem relevant.

     

    
      
        
        

      

      
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    Section
4.3    Additional
Powers.  The Committee shall have such additional powers as are
delegated to it under the other provisions of the Plan. Subject to the express
provisions of the Plan, the Committee is authorized to construe the Plan and the
respective Award Agreements executed hereunder, to prescribe such rules and
regulations relating to the Plan as it may deem advisable to carry out the
intent of the Plan, and to determine the terms, restrictions and provisions of
each Award, including such terms, restrictions and provisions as shall be
requisite in the judgment of the Committee to cause designated Options to
qualify as Incentive Stock Options, and to make all other determinations
necessary or advisable for administering the Plan. The Committee may correct any
defect or supply any omission or reconcile any inconsistency in any Award
Agreement in the manner and to the extent it shall deem expedient to carry it
into effect. The determinations of the Committee on the matters referred to in
this Article IV shall be conclusive and binding on the Company and all
Holders.

     

    Section
4.4     Committee
Action.  In the absence of specific rules to the contrary,
action by the Committee shall require the consent of a majority of the members
of the Committee, expressed either orally at a meeting of the Committee or in
writing in the absence of a meeting.  No member of the Committee shall
have any liability for any good faith action, inaction or determination in
connection with the Plan.

     

    ARTICLE
V

    STOCK
SUBJECT TO PLAN AND LIMITATIONS THEREON

     

    Section
5.1    Stock Grant and Award
Limits.  The Committee may from time to time grant Awards to
one or more Employees, Directors and/or Consultants determined by it to be
eligible for participation in the Plan in accordance with the provisions of
Article VI. Subject to Article XV, the aggregate number of shares of Common
Stock that may be issued under the Plan shall not exceed five million
(5,000,000) shares. Shares shall be deemed to have been issued under the Plan
solely to the extent actually issued and delivered pursuant to an Award. To the
extent that an Award lapses, expires, is canceled, is terminated unexercised or
ceases to be exercisable for any reason, or the rights of its Holder terminate,
any shares of Common Stock subject to such Award shall again be available for
the grant of a new Award. Solely to the extent provided in Section 17.8(b), the
maximum number of shares of Common Stock that may be subject to Awards of
Options under Article VII and/or Stock Appreciation Rights under Article XIV, in
either or both cases granted to any one Employee during any calendar year, shall
be one-hundred thousand (100,000) shares (subject to adjustment in the same
manner as provided in Article XV with respect to shares of Common Stock subject
to Awards then outstanding). The limitation set forth in the preceding sentence
shall be applied in a manner which shall permit compensation generated in
connection with the exercise of Options or Stock Appreciation Rights to
constitute “performance-based” compensation for purposes of Section 162(m) of
the Code, including, but not limited to, counting against such maximum number of
shares, to the extent required under Section 162(m) of the Code, any shares
subject to Options or Stock Appreciation Rights that are canceled or
repriced.

     

    
      
        
        

      

      
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    Section
5.2    Stock
Offered.  The stock to be offered pursuant to the grant of an
Award may be authorized but unissued Common Stock, Common Stock purchased on the
open market or Common Stock previously issued and outstanding and reacquired by
the Company.

     

    ARTICLE
VI

    ELIGIBILITY
FOR AWARDS; TERMINATION OF

    EMPLOYMENT,
DIRECTOR STATUS OR CONSULTANT STATUS

     

    Section
6.1    Eligibility.  Awards
made under the Plan may be granted solely to persons or entities who, at the
time of grant, are Employees, Directors or Consultants. An Award may be granted
on more than one occasion to the same Employee, Director or Consultant, and,
subject to the limitations set forth in the Plan, such Award may include, a
Non-Qualified Stock Option, a Restricted Stock Award, an Unrestricted Stock
Award, a Distribution Equivalent Right Award, a Performance Stock Award, a
Performance Unit Award, a Stock Appreciation Right, a Tandem Stock Appreciation
Right, any combination thereof or, solely for Employees, an Incentive Stock
Option.

     

    Section
6.2    Termination of Employment or
Director Status.  Except to the extent inconsistent with the
terms of the applicable Award Agreement and/or the provisions of Section 6.4,
the following terms and conditions shall apply with respect to the termination
of a Holder’s employment with, or status as a Director of, the Company or an
Affiliate, as applicable, for any reason, including, without limitation, Total
and Permanent Disability or death:

     

    (a)           The
Holder’s rights, if any, to exercise any then exercisable Non-Qualified Stock
Options and/or Stock Appreciation Rights shall terminate:

     

    (1)    If such
termination is for a reason other than the Holder’s Total and Permanent
Disability or death, ninety (90) days after the date of such termination of
employment or after the date of such termination of Director
status;

     

    
      
        
        

      

      
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    (2)    If such
termination is on account of the Holder’s Total and Permanent Disability, one
(1) year after the date of such termination of employment or Director status;
or

     

    (3)    If such
termination is on account of the Holder’s death, one (1) year after the date of
the Holder’s death.

     

    Upon such
applicable date the Holder (and such Holder’s estate, designated beneficiary or
other legal representative) shall forfeit any rights or interests in or with
respect to any such Non-Qualified Stock Options and Stock Appreciation
Rights.

     

    (b)           The
Holder’s rights, if any, to exercise any then exercisable Incentive Stock Option
shall terminate:

     

    (1)    If such
termination is for a reason other than the Holder’s Total and Permanent
Disability or death, three (3) months after the date of such termination of
employment;

     

    (2)    If such
termination is on account of the Holder’s Total and Permanent Disability, one
(1) year after the date of such termination of employment; or

     

    (3)    If such
termination is on account of the Holder’s death, one (1) year after the date of
the Holder’s death.

     

    Upon such
applicable date the Holder (and such Holder’s estate, designated beneficiary or
other legal representative) shall forfeit any rights or interests in or with
respect to any such Incentive Stock Options.

     

    (c)           If
a Holder’s employment with, or status as a Director of, the Company or an
Affiliate, as applicable, terminates for any reason prior to the actual or
deemed satisfaction and/or lapse of the Restrictions, vesting requirements,
terms and conditions applicable to a Restricted Stock Award and/or Restricted
Stock Unit Award, such Restricted Stock and/or Restricted Stock Units shall
immediately be canceled, and the Holder (and such Holder’s estate, designated
beneficiary or other legal representative) shall forfeit any rights or interests
in and with respect to any such Restricted Stock and/or Restricted Stock Units.
The immediately preceding sentence to the contrary notwithstanding, the
Committee, in its sole discretion, may determine, prior to or within thirty (30)
days after the date of such termination of employment or Director status, that
all or a portion of any such Holder’s Restricted Stock and/or Restricted Stock
Units shall not be so canceled and forfeited.

     

    Section
6.3    Termination of Consultant
Status. Except to the extent inconsistent with the terms of the
applicable Award Agreement and/or the provisions of Section 6.4, the following
terms and conditions shall apply with respect to the termination of a Holder’s
status as a Consultant, for any reason:

     

    
      
        
        

      

      
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    (a)           The
Holder’s rights, if any, to exercise any then exercisable Non-Qualified Stock
Options and/or Stock Appreciation Rights shall terminate:

     

    (1)    If such
termination is for a reason other than the Holder’s death, ninety (90) days
after the date of such termination; or

     

    (2)    If such
termination is on account of the Holder’s death, one (1) year after the date of
the Holder’s death.

     

    (b)           If
the status of a Holder as a Consultant terminates for any reason prior to the
actual or deemed satisfaction and/or lapse of the Restrictions, vesting
requirements, terms and conditions applicable to a Restricted Stock Award and/or
Restricted Stock Unit Award, such Restricted Stock and/or Restricted Stock Units
shall immediately be canceled, and the Holder (and such Holder’s estate,
designated beneficiary or other legal representative) shall forfeit any rights
or interests in and with respect to any such Restricted Stock and/or Restricted
Stock Units. The immediately preceding sentence to the contrary notwithstanding,
the Committee, in its sole discretion, may determine, prior to or within thirty
(30) days after the date of such termination of such a Holder’s status as a
Consultant, that all or a portion of any such Holder’s Restricted Stock and/or
Restricted Stock Units shall not be so canceled and forfeited.

     

    Section
6.4    Special Termination
Rule. Except to the extent inconsistent with the terms of the applicable
Award Agreement, and notwithstanding anything to the contrary contained in this
Article VI, if a Holder’s employment with, or status as a Director of, the
Company or an Affiliate shall terminate, and if, within ninety (90) days of such
termination, such Holder shall become a Consultant, such Holder’s rights with
respect to any Award or portion thereof granted thereto prior to the date of
such termination may be preserved, if and to the extent determined by the
Committee in its sole discretion, as if such Holder had been a Consultant for
the entire period during which such Award or portion thereof had been
outstanding. Should the Committee effect such determination with respect to such
Holder, for all purposes of the Plan, such Holder shall not be treated as if his
or her employment or Director status had terminated until such time as his or
her Consultant status shall terminate, in which case his or her Award, as it may
have been reduced in connection with the Holder’s becoming a Consultant, shall
be treated pursuant to the provisions of Section 6.3; provided, however, that any
such Award which is intended to be an Incentive Stock Option shall, upon the
Holder’s no longer being an Employee, automatically convert to a Non-Qualified
Stock Option.  Should a Holder’s status as a Consultant terminate, and
if, within ninety (90) days of such termination, such Holder shall become an
Employee or a Director, such Holder’s rights with respect to any Award or
portion thereof granted thereto prior to the date of such termination may be
preserved, if and to the extent determined by the Committee in its sole
discretion, as if such Holder had been an Employee or a Director, as applicable,
for the entire period during which such Award or portion thereof had been
outstanding, and, should the Committee effect such determination with respect to
such Holder, for all purposes of the Plan, such Holder shall not be treated as
if his or her Consultant status had terminated until such time as his or her
employment with the Company or an Affiliate, or his or her Director status, as
applicable, shall terminate, in which case his or her Award shall be treated
pursuant to the provisions of Section 6.2.

     

    
      
        
        

      

      
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    Section
6.5    Termination for
Cause.  Notwithstanding anything in this Article VI or
elsewhere in the Plan to the contrary, and unless a Holder’s Award Agreement
specifically provides otherwise, should a Holder’s employment, Director status
or engagement as a Consultant with or for the Company or an Affiliate be
terminated by the Company or Affiliate for Cause, all of such Holder’s then
outstanding Awards shall expire immediately and be forfeited in their entirety
upon such termination.

     

    ARTICLE
VII

    OPTIONS

     

    Section
7.1    Option
Period.  The term of each Option shall be as specified in the
Option Agreement; provided, however, that except
as set forth in Section 7.3, no Option shall be exercisable after the expiration
of ten (10) years from the date of its grant.

     

    Section
7.2    Limitations on Exercise of
Option.  An Option shall be exercisable in whole or in such
installments and at such times as specified in the Option
Agreement.

     

    Section
7.3    Special Limitations on
Incentive Stock Options.  To the extent that the aggregate Fair
Market Value (determined at the time the respective Incentive Stock Option is
granted) of Common Stock with respect to which Incentive Stock Options are
exercisable for the first time by an individual during any calendar year under
all plans of the Company and any parent corporation or subsidiary corporation
thereof (both as defined in Section 424 of the Code) which provide for the grant
of Incentive Stock Options exceeds One Hundred Thousand Dollars ($100,000) (or
such other individual limit as may be in effect under the Code on the date of
grant), the portion of such Incentive Stock Options that exceeds such threshold
shall be treated as Non-Qualified Stock Options. The Committee shall determine,
in accordance with applicable provisions of the Code, Treasury Regulations and
other administrative pronouncements, which of a Holder’s Options, which were
intended by the Committee to be Incentive Stock Options when granted to the
Holder, will not constitute Incentive Stock Options because of such limitation,
and shall notify the Holder of such determination as soon as practicable after
such determination. No Incentive Stock Option shall be granted to an Employee
if, at the time the Option is granted, such Employee is a Ten Percent
Stockholder, unless (i) at the time such Incentive Stock Option is granted the
Option price is at least one hundred ten percent (110 %) of the Fair Market
Value of the Common Stock subject to the Option, and (ii) such Incentive Stock
Option by its terms is not exercisable after the expiration of five (5) years
from the date of grant.  No Incentive Stock Option shall be granted
more than ten (10) years from the date on which the Plan is approved by the
Company’s stockholders.  The designation by the Committee of an Option
as an Incentive Stock Option shall not guarantee the Holder that the Option will
satisfy the applicable requirements for “incentive stock option” status under
Section 422 of the Code.

     

    Section
7.4    Option Agreement.
Each Option shall be evidenced by an Option Agreement in such form and
containing such provisions not inconsistent with the provisions of the Plan as
the Committee from time to time shall approve, including, but not limited to,
provisions intended to qualify an Option as an Incentive Stock Option. An Option
Agreement may provide for the payment of the Option price, in whole or in part,
by the delivery of a number of shares of Common Stock (plus cash if necessary)
that have been owned by the Holder for at least six (6) months and having a Fair
Market Value equal to such Option price, or such other forms or methods as the
Committee may determine from time to time, in each case, subject to such rules
and regulations as may be adopted by the Committee. Each Option Agreement shall,
solely to the extent inconsistent with the provisions of Sections 6.2, 6.3, 6.4
and 6.5, as applicable, specify the effect of termination of employment,
Director status or Consultant status on the exercisability of the Option.
Moreover, without limited the generality of the foregoing, an Option Agreement
may provide for a “cashless exercise” of the Option by establishing procedures
whereby the Holder, by a properly-executed written notice, directs (i) an
immediate market sale or margin loan respecting all or a part of the shares of
Common Stock to which he is entitled upon exercise pursuant to an extension of
credit by the Company to the Holder of the Option price, (ii) the delivery of
the shares of Common Stock from the Company directly to a brokerage firm and
(iii) the delivery of the Option price from sale or margin loan proceeds from
the brokerage firm directly to the Company. Each Option Agreement shall, solely
to the extent inconsistent with the provisions of Sections 6.2, 6.3, 6.4 and
6.5, as applicable, specify the effect of the termination of the Holder’s
employment, Director status or Consultant status on the exercisability of the
Option. An Option Agreement may also include provisions relating to (i) subject
to the provisions hereof, accelerated vesting of Options, including but not
limited to upon the occurrence of a Change of Control, (ii) tax matters
(including provisions covering any applicable Employee wage withholding
requirements and requiring additional “gross-up” payments to Holders to meet any
excise taxes or other additional income tax liability imposed as a result of a
payment made upon a Change of Control resulting from the operation of the Plan
or of such Option Agreement) and (iii) any other matters not inconsistent with
the terms and provisions of the Plan that the Committee shall in its sole
discretion determine. The terms and conditions of the respective Option
Agreements need not be identical.

     

    
      
        
        

      

      
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    Section
7.5    Option Price and
Payment.  The price at which a share of Common Stock may be
purchased upon exercise of an Option shall be determined by the Committee; provided, however, that such
Option price (i) shall not be less than the Fair Market Value of a share of
Common Stock on the date such Option is granted, and (ii) shall be subject to
adjustment as provided in Article XV. The Option or portion thereof may be
exercised by delivery of an irrevocable notice of exercise to the Company. The
Option price for the Option or portion thereof shall be paid in full in the
manner prescribed by the Committee as set forth in the Plan and the applicable
Option Agreement, which manner, with the consent of the Committee, may include
the withholding of shares of Common Stock otherwise issuable in connection with
the exercise of the Option. Separate stock certificates shall be issued by the
Company for those shares of Common Stock acquired pursuant to the exercise of an
Incentive Stock Option and for those shares of Common Stock acquired pursuant to
the exercise of a Non-Qualified Stock Option.

     

    
      
        
        

      

      
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    Section
7.6    Stockholder Rights and
Privileges. The Holder of an Option shall be entitled to all the
privileges and rights of a stockholder of the Company solely with respect to
such shares of Common Stock as have been purchased under the Option and for
which certificates of stock have been registered in the Holder’s
name.

     

    Section
7.7    Options and Rights in
Substitution for Stock Options Granted by Other
Corporations.  Options may be granted under the Plan from time
to time in substitution for stock options held by individuals employed by
entities who become Employees as a result of a merger or consolidation of the
employing entity with the Company or any Affiliate, or the acquisition by the
Company or an Affiliate of the assets of the employing entity, or the
acquisition by the Company or an Affiliate of stock of the employing entity with
the result that such employing entity becomes an Affiliate.

     

    Section
7.8    Prohibition Against
Repricing.  Except to the extent (i) approved in advance by
holders of a majority of the shares of the Company entitled to vote generally in
the election of directors, or (ii) as a result of any Change of Control or any
adjustment as provided in Article XV, the Committee shall not have the
power or authority to reduce, whether through amendment or otherwise, the
exercise price of any outstanding Option or Stock Appreciation right, or to
grant any new Award or make any payment of cash in substitution for or upon the
cancellation of Options and/or Stock Appreciation Rights previously
granted.

     

    ARTICLE
VIII

    RESTRICTED
STOCK AWARDS

     

    Section
8.1    Restriction Period to be
Established by Committee.  At the time a Restricted Stock Award
is made, the Committee shall establish the Restriction Period applicable to such
Award. Each Restricted Stock Award may have a different Restriction Period, in
the discretion of the Committee. The Restriction Period applicable to a
particular Restricted Stock Award shall not be changed except as permitted by
Section 8.2.

     

    Section
8.2    Other Terms and
Conditions.  Common Stock awarded pursuant to a Restricted
Stock Award shall be represented by a stock certificate registered in the name
of the Holder of such Restricted Stock Award. If provided for under the
Restricted Stock Award Agreement, the Holder shall have the right to vote Common
Stock subject thereto and to enjoy all other stockholder rights, including the
entitlement to receive dividends on the Common Stock during the Restriction
Period, except that (i) the Holder shall not be entitled to delivery of the
stock certificate until the Restriction Period shall have expired, (ii) the
Company shall retain custody of the stock certificate during the Restriction
Period (with a stock power endorsed by the Holder in blank), (iii) the Holder
may not sell, transfer, pledge, exchange, hypothecate or otherwise dispose of
the Common Stock during the Restriction Period and (iv) a breach of the terms
and conditions established by the Committee pursuant to the Restricted Stock
Award Agreement shall cause a forfeiture of the Restricted Stock Award. At the
time of such Award, the Committee may, in its sole discretion, prescribe
additional terms and conditions or restrictions relating to Restricted Stock
Awards, including, but not limited to, rules pertaining to the effect of
termination of employment, Director status or Consultant status prior to
expiration of the Restriction Period. Such additional terms, conditions or
restrictions shall, to the extent inconsistent with the provisions of Sections
6.2, 6.3 and 6.4, as applicable, be set forth in a Restricted Stock Award
Agreement made in conjunction with the Award. Such Restricted Stock Award
Agreement may also include provisions relating to (i) subject to the provisions
hereof, accelerated vesting of Awards, including but not limited to accelerated
vesting upon the occurrence of a Change of Control, (ii) tax matters (including
provisions covering any applicable Employee wage withholding requirements and
requiring additional “gross-up” payments to Holders to meet any excise taxes or
other additional income tax liability imposed as a result of a payment made in
connection with a Change of Control resulting from the operation of the Plan or
of such Restricted Stock Award Agreement) and (iii) any other matters not
inconsistent with the terms and provisions of the Plan that the Committee shall
in its sole discretion determine. The terms and conditions of the respective
Restricted Stock Agreements need not be identical.  All shares of
Common Stock delivered to a Holder as part of a Restricted Stock Award shall be
delivered and reported by the Company or the Affiliate, as applicable, to the
Holder by no later than by the fifteenth (15th) day of
the third (3rd)
calendar month next following the end of the Company’s fiscal year in which the
Holder’s entitlement to such shares becomes vested.

     

    
      
        
        

      

      
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    Section
8.3    Payment for Restricted
Stock.  The Committee shall determine the amount and form of
any payment from a Holder for Common Stock received pursuant to a Restricted
Stock Award, if any, provided that in the absence of such a determination, a
Holder shall not be required to make any payment for Common Stock received
pursuant to a Restricted Stock Award, except to the extent otherwise required by
law.

     

    Section
8.4    Restricted Stock Award
Agreements. At the time any Award is made under this Article VIII, the
Company and the Holder shall enter into a Restricted Stock Award Agreement
setting forth each of the matters contemplated hereby and such other matters as
the Committee may determine to be appropriate.

     

    ARTICLE
IX

    UNRESTRICTED
STOCK AWARDS

     

    Pursuant
to the terms of the applicable Unrestricted Stock Award Agreement, a Holder may
be awarded (or sold) shares of Common Stock which are not subject to
Restrictions, in consideration for past services rendered thereby to the Company
or an Affiliate or for other valid consideration.

     

    ARTICLE
X

    RESTRICTED
STOCK UNIT AWARDS

     

    Section
10.1    Terms and
Conditions.  The Committee shall set
forth in the applicable Restricted Stock Unit Award Agreement the individual
service-based vesting requirement which the Holder would be required to satisfy
before the Holder would become entitled to payment pursuant to Section 10.2 and
the number of Units awarded to the Holder.  Such payment shall be
subject to a “substantial risk of forfeiture” under Section 409A of the
Code.  At the time of such Award, the Committee may, in its sole
discretion, prescribe additional terms and conditions or restrictions relating
to Restricted Stock Unit Awards, including, but not limited to, rules pertaining
to the effect of termination of employment, Director status or Consultant status
prior to expiration of the applicable vesting period.  The terms and
conditions of the respective Restricted Stock Unit Award Agreements need not be
identical.

     

    
      
        
        

      

      
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    Section
10.2    Payments.  The
Holder of a Restricted Stock Unit shall be entitled to receive a cash payment
equal to the Fair Market Value of a share of Common Stock, or one (1) share of
Common Stock, as determined in the sole discretion of the Committee and as set
forth in the Restricted Stock Unit Award Agreement, for each Restricted Stock
Unit subject to such Restricted Stock Unit Award, if the Holder satisfies the
applicable vesting requirement.  Such payment shall be made no later
than by the fifteenth (15th) day of
the third (3rd)
calendar month next following the end of the calendar year in which the
Restricted Stock Unit first becomes vested.

     

    ARTICLE
XI

    PERFORMANCE
UNIT AWARDS

     

    Section
11.1    Terms and
Conditions.  The Committee shall set forth in the applicable
Performance Unit Award Agreement the performance goals and objectives (and the
period of time to which such goals and objectives shall apply) which the Holder
and/or the Company would be required to satisfy before the Holder would become
entitled to payment pursuant to Section 11.2, the number of Units awarded to the
Holder and the dollar value assigned to each such Unit.  Such payment
shall be subject to a “substantial risk of forfeiture” under Section 409A of the
Code.  At the time of such Award, the Committee may, in its sole
discretion, prescribe additional terms and conditions or restrictions relating
to Performance Unit Awards, including, but not limited to, rules pertaining to
the effect of termination of employment, Director status or Consultant status
prior to expiration of the applicable performance period.  The terms
and conditions of the respective Performance Unit Award Agreements need not be
identical.

     

    Section
11.2    Payments.  The
Holder of a Performance Unit shall be entitled to receive a cash payment equal
to the dollar value assigned to such Unit under the applicable Performance Unit
Award Agreement if the Holder and/or the Company satisfy (or partially satisfy,
if applicable under the applicable Performance Unit Award Agreement) the
performance goals and objectives set forth in such Performance Unit Award
Agreement.  If achieved, such payment shall be made no later than by
the fifteenth (15th) day of
the third (3rd)
calendar month next following the end of the Company’s fiscal year to which such
performance goals and objectives relate.

     

    ARTICLE
XII

    PERFORMANCE
SHARE AWARDS

     

    Section
12.1    Terms and
Conditions.  The Committee shall set forth in the applicable
Performance Share Award Agreement the performance goals and objectives (and the
period of time to which such goals and objectives shall apply) which the Holder
and/or the Company would be required to satisfy before the Holder would become
entitled to the receipt of shares of Common Stock pursuant to such Holder’s
Performance Share Award and the number of shares of Common Stock subject to such
Performance Share Award.  Such payment shall be subject to a
“substantial risk of forfeiture” under Section 409A of the Code and, if such
goals and objectives are achieved, the distribution of such Common Shares shall
be made no later than by the fifteenth (15th) day of
the third (3rd)
calendar month next following the end of the Company’s fiscal year to which such
goals and objectives relate.  At the time of such Award, the Committee
may, in its sole discretion, prescribe additional terms and conditions or
restrictions relating to Performance Share Awards, including, but not limited
to, rules pertaining to the effect of termination of the Holder’s employment,
Director status or Consultant status prior to the expiration of the applicable
performance period.  The terms and conditions of the respective
Performance Share Award Agreements need not be identical.

     

    
      
        
        

      

      
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    Section
12.2    Stockholder Rights and
Privileges.  The Holder of a Performance Share Award shall have
no rights as a stockholder of the Company until such time, if any, as the Holder
actually receives shares of Common Stock pursuant to the Performance Share
Award.

     

    ARTICLE
XIII

    DISTRIBUTION
EQUIVALENT RIGHTS

     

    Section
13.1    Terms and
Conditions.  The Committee shall set forth in the applicable
Distribution Equivalent Rights Award Agreement the terms and conditions, if any,
including whether the Holder is to receive credits currently in cash, is to have
such credits reinvested (at Fair Market Value determined as of the date of
reinvestment) in additional shares of Common Stock or is to be entitled to
choose among such alternatives. Such receipt shall be subject to a “substantial
risk of forfeiture” under Section 409A of the Code and, if such Award becomes
vested, the distribution of such cash or shares of Common Stock shall be made no
later than by the fifteenth (15th) day of
the third (3rd)
calendar month next following the end of the Company’s fiscal year in which the
Holder’s interest in the Award vests. Distribution Equivalent Rights Awards may
be settled in cash or in shares of Common Stock, as set forth in the applicable
Distribution Equivalent Rights Award Agreement. A Distribution Equivalent Rights
Award may, but need not be, awarded in tandem with another Award, whereby, if so
awarded, such Distribution Equivalent Rights Award shall expire, terminate or be
forfeited by the Holder, as applicable, under the same conditions as under such
other Award.

     

    Section
13.2    Interest
Equivalents.  The Distribution Equivalent Rights Award
Agreement for a Distribution Equivalent Rights Award may provide for the
crediting of interest on a Distribution Rights Award to be settled in cash at a
future date (but in no event later than by the fifteenth (15th) day of
the third (3rd)
calendar month next following the end of the Company’s fiscal year in which such
interest was credited), at a rate set forth in the applicable Distribution
Equivalent Rights Award Agreement, on the amount of cash payable
thereunder.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    ARTICLE
XIV

    STOCK
APPRECIATION RIGHTS

     

    Section
14.1    Terms and
Conditions.  The Committee shall set forth in the applicable
Stock Appreciation Right Award Agreement the terms and conditions of the Stock
Appreciation Right, including (i) the base value (the “Base Value”) for the
Stock Appreciation Right, which for purposes of a Stock Appreciation which is
not a Tandem Stock Appreciation Right, shall be not less than the Fair Market
Value of a share of the Common Stock on the date of grant of the Stock
Appreciation Right, (ii) the number of shares of Common Stock subject to the
Stock Appreciation Right, (iii) the period during which the Stock Appreciation
Right may be exercised; provided, however, that no
Stock Appreciation Right shall be exercisable after the expiration of ten (10)
years from the date of its grant, and (iv) any other special rules and/or
requirements which the Committee imposes upon the Stock Appreciation Right. Upon
the exercise of some or all of a Stock Appreciation Right, the Holder shall
receive a payment from the Company, in cash or in the form of shares of Common
Stock having an equivalent Fair Market Value or in a combination of both, as
determined in the sole discretion of the Committee, equal to the product
of:

     

    (a)           The
excess of (i) the Fair Market Value of a share of the Common Stock on the date
of exercise, over (ii) the Base Value, multiplied by;

     

    (b)           The
number of shares of Common Stock with respect to which the Stock Appreciation
Right is exercised.

     

    Section
14.2    Tandem Stock Appreciation
Rights. If the Committee grants a Stock Appreciation Right which is
intended to be a Tandem Stock Appreciation Right, the Tandem Stock Appreciation
Right must be granted at the same time as the related Option, and the following
special rules shall apply:

     

    (a)           The
Base Value shall be equal to or greater than the per share exercise price under
the related Option;

     

    (b)           The
Tandem Stock Appreciation Right may be exercised for all or part of the shares
of Common Stock which are subject to the related Option, but solely upon the
surrender by the Holder of the Holder’s right to exercise the equivalent portion
of the related Option (and when a share of Common Stock is purchased under the
related Option, an equivalent portion of the related Tandem Stock Appreciation
Right shall be cancelled);

     

    (c)           The
Tandem Stock Appreciation Right shall expire no later than the date of the
expiration of the related Option;

     

    (d)           The
value of the payment with respect to the Tandem Stock Appreciation Right may be
no more than one hundred percent (100%) of the difference between the per share
exercise price under the related Option and the Fair Market Value of the shares
of Common Stock subject to the related Option at the time the Tandem Stock
Appreciation Right is exercised, multiplied by the number of shares of Common
Stock with respect to which the Tandem Stock Appreciation Right is exercised;
and

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    (e)           The
Tandem Stock Appreciation Right may be exercised solely when the Fair Market
Value of a share of Common Stock subject to the related Option exceeds the per
share the exercise price under the related Option.

     

    ARTICLE
XV

    RECAPITALIZATION
OR REORGANIZATION

     

    Section
15.1    Adjustments to Common
Stock.  The shares with respect to which Awards may be granted
under the Plan are shares of Common Stock as presently constituted; provided, however, that if, and
whenever, prior to the expiration or distribution to the Holder of shares of
Common Stock underlying an Award theretofore granted, the Company shall effect a
subdivision or consolidation of shares of Common Stock or the payment of a stock
dividend on Common Stock without receipt of consideration by the Company, the
number of shares of Common Stock with respect to which such Award may thereafter
be exercised or satisfied, as applicable, (i) in the event of an increase in the
number of outstanding shares, shall be proportionately increased, and the
purchase price per share of the Common Stock shall be proportionately reduced,
and (ii) in the event of a reduction in the number of outstanding shares, shall
be proportionately reduced, and the purchase price per share of the Common Stock
shall be proportionately increased. Notwithstanding the foregoing or any other
provision of this Article XV, any adjustment made with respect to an Award (x)
which is an Incentive Stock Option, shall comply with the requirements of
Section 424(a) of the Code, and in no event shall any adjustment be made which
would render any Incentive Stock Option granted under the Plan to be other than
an “incentive stock option” for purposes of Section 422 of the Code, and (y)
which is a Non-Qualified Stock Option, shall comply with the requirements of
Section 409A of the Code, and in no event shall any adjustment be made which
would render any Non-Qualified Stock Option granted under the Plan to become
subject to Section 409A of the Code.

     

    Section
15.2    Recapitalization.  If
the Company recapitalizes or otherwise changes its capital structure, thereafter
upon any exercise or satisfaction, as applicable, of a previously granted Award,
the Holder shall be entitled to receive (or entitled to purchase, if applicable)
under such Award, in lieu of the number of shares of Common Stock then covered
by such Award, the number and class of shares of stock and securities to which
the Holder would have been entitled pursuant to the terms of the
recapitalization if, immediately prior to such recapitalization, the Holder had
been the holder of record of the number of shares of Common Stock then covered
by such Award.

     

    Section
15.3    Other
Events.  In the event of changes to the outstanding Common
Stock by reason of extraordinary cash dividend, reorganization, mergers,
consolidations, combinations, split-ups, spin-offs, exchanges or other relevant
changes in capitalization occurring after the date of the grant of any Award and
not otherwise provided for under this Article XV, any outstanding Awards and any
Award Agreements evidencing such Awards shall be adjusted by the Board in its
discretion in such manner as the Board shall deem equitable or appropriate
taking into consideration the applicable accounting and tax consequences, as to
the number and price of shares of Common Stock or other consideration subject to
such Awards. In the event of any adjustment pursuant to Sections 15.1, 15.2 or
this Section 15.3, the aggregate number of shares available under the Plan
pursuant to Section 5.1 (and the Code Section 162(m) limit set forth therein)
may be appropriately adjusted by the Board, the determination of which shall be
conclusive.  In addition, the Committee may make provision for a cash
payment to a Participant or a person who has an outstanding
Award.  The number of shares of Common Stock subject to any Award
shall be rounded to the nearest whole number.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    Section
15.4    Powers Not
Affected.  The existence of the Plan and the Awards granted
hereunder shall not affect in any way the right or power of the Board or of the
stockholders of the Company to make or authorize any adjustment,
recapitalization, reorganization or other change of the Company’s capital
structure or business, any merger or consolidation of the Company, any issue of
debt or equity securities ahead of or affecting Common Stock or the rights
thereof, the dissolution or liquidation of the Company or any sale, lease,
exchange or other disposition of all or any part of its assets or business or
any other corporate act or proceeding.

     

    Section
15.5    No Adjustment for Certain
Awards.  Except as hereinabove expressly provided, the issuance
by the Company of shares of stock of any class or securities convertible into
shares of stock of any class, for cash, property, labor or services, upon direct
sale, upon the exercise of rights or warrants to subscribe therefor or upon
conversion of shares or obligations of the Company convertible into such shares
or other securities, and in any case whether or not for fair value, shall not
affect previously granted Awards, and no adjustment by reason thereof shall be
made with respect to the number of shares of Common Stock subject to Awards
theretofore granted or the purchase price per share, if applicable.

     

    ARTICLE
XVI

    AMENDMENT
AND TERMINATION OF PLAN

     

    The Plan
shall continue in effect, unless sooner terminated pursuant to this Article XVI,
until the tenth (10th)
anniversary of the date on which it is adopted by the Board (except as to Awards
outstanding on that date).  The Board in its discretion may terminate
the Plan at any time with respect to any shares for which Awards have not
theretofore been granted; provided, however, that the
Plan’s termination shall not materially and adversely impair the rights of a
Holder with respect to any Award theretofore granted without the consent of the
Holder. The Board shall have the right to alter or amend the Plan or any part
hereof from time to time; provided, however, that without
the approval by a majority of the votes cast at a meeting of shareholders at
which a quorum representing a majority of the shares of the Company entitled to
vote generally in the election of directors is present in person or by proxy, no
amendment or modification of the Plan may (i) materially increase the benefits
accruing to Holders, (ii) except as otherwise expressly provided in Article
XV, materially increase the number of shares of Common Stock subject to the Plan
or the individual Award Agreements specified in Article V, (iii) materially
modify the requirements for participation in the Plan, or (iv) amend,
modify or suspend Section 7.8 (repricing prohibitions) or this Article
XVI.  In addition, no change in any Award theretofore granted may be
made which would materially and adversely impair the rights of a Holder with
respect to such Award without the consent of the Holder (unless such change is
required in order to cause the benefits under the Plan to qualify as
“performance-based” compensation within the meaning of Section 162(m) of the
Code) or to exempt the Plan or any Award from Section 409A of the
Code.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    ARTICLE
XVII

    MISCELLANEOUS

     

    Section
17.1    No Right to
Award.  Neither the adoption of the Plan by the Company nor any
action of the Board or the Committee shall be deemed to give an Employee,
Director or Consultant any right to an Award except as may be evidenced by an
Award Agreement duly executed on behalf of the Company, and then solely to the
extent and on the terms and conditions expressly set forth therein.

     

    Section
17.2    No Rights
Conferred.  Nothing contained in the Plan shall (i) confer upon
any Employee any right with respect to continuation of employment with the
Company or any Affiliate, (ii) interfere in any way with any right of the
Company or any Affiliate to terminate the employment of an Employee at any time,
(iii) confer upon any Director any right with respect to continuation of such
Director’s membership on the Board, (iv) interfere in any way with any right of
the Company or an Affiliate to terminate a Director’s membership on the Board at
any time, (v) confer upon any Consultant any right with respect to continuation
of his or her consulting engagement with the Company or any Affiliate, or (vi)
interfere in any way with any right of the Company or an Affiliate to terminate
a Consultant’s consulting engagement with the Company or an Affiliate at any
time.

     

    Section
17.3    Other Laws; No Fractional
Shares; Withholding.  The Company shall not be obligated by
virtue of any provision of the Plan to recognize the exercise of any Award or to
otherwise sell or issue shares of Common Stock in violation of any laws, rules
or regulations, and any postponement of the exercise or settlement of any Award
under this provision shall not extend the term of such Award.  Neither
the Company nor its directors or officers shall have any obligation or liability
to a Holder with respect to any Award (or shares of Common Stock issuable
thereunder) (i) that shall lapse because of such postponement, or
(ii) for any failure to comply with the requirements of any applicable law,
rules or regulations, including but not limited to any failure to comply with
the requirements of Section 409A of this Code.  No fractional shares
of Common Stock shall be delivered, nor shall any cash in lieu of fractional
shares be paid. The Company shall have the right to deduct in cash (whether
under this Plan or otherwise) in connection with all Awards any taxes required
by law to be withheld and to require any payments required to enable it to
satisfy its withholding obligations. In the case of any Award satisfied in the
form of shares of Common Stock, no shares shall be issued unless and until
arrangements satisfactory to the Company shall have been made to satisfy any tax
withholding obligations applicable with respect to such Award. Subject to such
terms and conditions as the Committee may impose, the Company shall have the
right to retain, or the Committee may, subject to such terms and conditions as
it may establish from time to time, permit Holders to elect to tender, Common
Stock (including Common Stock issuable in respect of an Award) to satisfy, in
whole or in part, the amount required to be withheld.

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    Section
17.4    No Restriction on Corporate
Action.  Nothing contained in the Plan shall be construed to
prevent the Company or any Affiliate from taking any corporate action which is
deemed by the Company or such Affiliate to be appropriate or in its best
interest, whether or not such action would have an adverse effect on the Plan or
any Award made under the Plan. No Employee, Director, Consultant, beneficiary or
other person shall have any claim against the Company or any Affiliate as a
result of any such action.

     

    Section
17.5    Restrictions on
Transfer. No Award under the Plan or any Award Agreement and no rights or
interests herein or therein, shall or may be assigned, transferred, sold,
exchanged, encumbered, pledged or otherwise hypothecated or disposed of by a
Holder except (i) by will or by the laws of descent and distribution, or (ii)
except for an Incentive Stock Option, by gift to any Family Member of the
Holder. An Award may be exercisable during the lifetime of the Holder only by
such Holder or by the Holder’s guardian or legal representative unless it has
been transferred by gift to a Family Member of the Holder, in which case it
shall be exercisable solely by such transferee. Notwithstanding any such
transfer, the Holder shall continue to be subject to the withholding
requirements provided for under Section 17.3 hereof.

     

    Section
17.6    Beneficiary
Designations.  Each Holder may, from time to time, name a
beneficiary or beneficiaries (who may be contingent or successive beneficiaries)
for purposes of receiving any amount which is payable in connection with an
Award under the Plan upon or subsequent to the Holder’s death. Each such
beneficiary designation shall serve to revoke all prior beneficiary
designations, be in a form prescribed by the Company and be effective solely
when filed by the Holder in writing with the Company during the Holder’s
lifetime. In the absence of any such written beneficiary designation, for
purposes of the Plan, a Holder’s beneficiary shall be the Holder’s
estate.

     

    Section
17.7    Rule
16b-3.  It is intended that the Plan and any Award made to a
person subject to Section 16 of the Exchange Act shall meet all of the
requirements of Rule 16b-3. If any provision of the Plan or of any such Award
would disqualify the Plan or such Award under, or would otherwise not comply
with the requirements of, Rule 16b-3, such provision or Award shall be construed
or deemed to have been amended as necessary to conform to the requirements of
Rule 16b-3.

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    Section
17.8    Section
162(m).  (a) Solely to the extent provided in Section 17.8(b),
it is intended that the Plan shall comply fully with and meet all the
requirements of Section 162(m) of the Code so that Awards hereunder which are
made to Holders who are “covered employees” (as defined in Section 162(m) of the
Code) shall constitute “performance-based” compensation within the meaning of
Section 162(m) of the Code. Any Performance Goal(s) applicable to Qualified
Performance-Based Awards shall be objective, shall be established not later than
ninety (90) days after the beginning of any applicable Performance Period (or at
such other date as may be required or permitted for “performance-based”
compensation under Section 162(m) of the Code) and shall otherwise meet the
requirements of Section 162(m) of the Code, including the requirement that the
outcome of the Performance Goal or Goals be substantially uncertain (as defined
in the regulations under Section 162(m) of the Code) at the time
established.  The Performance Criteria to be utilized under the Plan
to establish Performance Goals shall consist of objective tests based on one or
more of the following: earnings or earnings per share, cash flow or cash flow
per share, operating cash flow or operating cash flow per share revenue growth,
product revenue growth, financial return ratios (such as return on equity,
return on investment and/or return on assets), share price performance,
stockholder return, equity and/or value, operating income, operating margins,
earnings before interest, taxes, depreciation and amortization, earnings, pre-
or post-tax income, economic value added (or an equivalent metric), profit
returns and margins, credit quality, sales growth, market share, working capital
levels, comparisons with various stock market indices, year-end cash, debt
reduction, assets under management, operating efficiencies, strategic
partnerships or transactions (including co-development, co-marketing, profit
sharing, joint venture or other similar arrangements), and/or financing and
other capital raising transaction.  Performance criteria may be
established on a Company-wide basis or with respect to one or more Company
business units or divisions or subsidiaries; and either in absolute terms,
relative to the performance of one or more similarly situated companies, or
relative to the performance of an index covering a peer group of
companies.  When establishing Performance Goals for the applicable
Performance Period, the Committee may exclude any or all “extraordinary items”
as determined under U.S. generally accepted accounting principles including,
without limitation, the charges or costs associated with restructurings of the
Company, discontinued operations, other unusual or non-recurring items, and the
cumulative effects of accounting changes, and as identified in the Company’s
financial statements, notes to the Company’s financial statements or
management’s discussion and analysis of financial condition and results of
operations contained in the Company’s most recent annual report filed with the
U.S. Securities and Exchange Commission pursuant to the Exchange
Act.  Holders who are “covered employees” (as defined in Section
162(m) of the Code) shall be eligible to receive payment under a Qualified
Performance-Based Award which is subject to achievement of a Performance Goal or
Goals only if the applicable Performance Goal or Goals are achieved within the
applicable Performance Period, as determined by the Committee.  If any
provision of the Plan would disqualify the Plan or would not otherwise permit
the Plan to comply with Section 162(m) of the Code as so intended, such
provision shall be construed or deemed amended to conform to the requirements or
provisions of Section 162(m) of the Code.  The Committee may postpone
the exercising of Awards, the issuance or delivery of Common Stock under any
Award or any action permitted under the Plan to prevent the Company or any
subsidiary from being denied a federal income tax deduction with respect to any
Award other than an Incentive Stock Option, provided that such deferral
satisfies the requirements of Section 409A of the Code.  For
purposes of the requirements of Treasury Regulation Section 1.162-27(e)(4)(i),
the maximum amount of compensation that may be paid to any Employee under the
Plan for a calendar year shall be one million Dollars ($1,000,000).

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    (b)           The
provisions of the Plan which are required by or make specific reference to
Section 162(m) of the Code or any regulations thereunder, or any successor
section of the Code or regulations thereunder shall apply only where the Company
or an affiliate would otherwise not be entitled to a United States federal
income tax deduction for the payment of all remuneration to its employees solely
on account of the limitation contained in Section 162(m)(1) of the
Code.

     

    Section
17.9    Section
409A.  Notwithstanding any other provision of the Plan, the
Committee shall have no authority to issue an Award under the Plan with terms
and/or conditions which would cause such Award to constitute non-qualified
“deferred compensation” under Section 409A of the Code.  Accordingly,
by way of example but not limitation, no Option shall be granted under the Plan
with a per share Option exercise price which is less than the Fair Market Value
of a share of Common Stock on the date of grant of the
Option.  Notwithstanding anything herein to the contrary, no Award
Agreement shall provide for any deferral feature with respect to an Award which
constitutes a deferral of compensation under Section 409A of the
Code.  The Plan and all Award Agreements are intended to comply with
the requirements of Section 409A of the Code (so as to be exempt therefrom) and
shall be so interpreted and construed.

     

    Section
17.10    Indemnification.  Each
person who is or shall have been a member of the Committee or of the Board shall
be indemnified and held harmless by the Company against and from any loss, cost,
liability, or expense that may be imposed upon or reasonably incurred thereby in
connection with or resulting from any claim, action, suit, or proceeding to
which such person may be made a party or may be involved by reason of any action
taken or failure to act under the Plan and against and from any and all amounts
paid thereby in settlement thereof, with the Company’s approval, or paid thereby
in satisfaction of any judgment in any such action, suit, or proceeding against
such person; provided, however, that such
person shall give the Company an opportunity, at its own expense, to handle and
defend the same before he or she undertakes to handle and defend it on his or
her own behalf.  The foregoing right of indemnification shall not be
exclusive and shall be independent of any other rights of indemnification to
which such persons may be entitled under the Company’s Articles of Incorporation
or By-laws, by contract, as a matter of law, or otherwise.

     

    Section
17.11    Other
Plans.  No Award, payment or amount received hereunder shall be
taken into account in computing an Employee’s salary or compensation for the
purposes of determining any benefits under any pension, retirement, life
insurance or other benefit plan of the Company or any Affiliate, unless such
other plan specifically provides for the inclusion of such Award, payment or
amount received.  Nothing in the Plan shall be construed to limit the
right of the Company to establish other plans or to pay compensation to its
employees, in cash or property, in a manner which is not expressly authorized
under the Plan.

     

    Section
17.12    Limits of
Liability.  Any liability of the Company with respect to an
Award shall be based solely upon the contractual obligations created under the
Plan and the Award Agreement. None of the Company, any member of the Board nor
any member of the Committee shall have any liability to any party for any action
taken or not taken, in good faith, in connection with or under the
Plan.

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    Section
17.13    Governing
Law.  Except as otherwise provided herein, the Plan shall be
construed in accordance with the laws of the State of New York, without regard
to principles of conflicts of law.

     

    Section
17.14    Severability of
Provisions.  If any provision of the Plan is held invalid or
unenforceable, such invalidity or unenforceability shall not affect any other
provision of the Plan, and the Plan shall be construed and enforced as if such
invalid or unenforceable provision had not been included in the
Plan.

     

    Section
17.15    No
Funding.  The Plan shall be unfunded. The Company shall not be
required to establish any special or separate fund or to make any other
segregation of funds or assets to ensure the payment of any Award.

     

    Section
17.16    Headings. Headings
used throughout the Plan are for convenience only and shall not be given legal
significance.

     

    Section
17.17    Terms of Award
Agreements. Each Award shall be evidenced by an Award Agreement, which
Award Agreement, if it provides for the issuance of Common Stock, shall require
the Holder to enter into and be bound by the terms of the Company’s
Stockholders’ Agreement, if any.  The terms of the Award Agreements
utilized under the Plan need not be the same.

     

    Section
17.18    California Information
Requirements.  To the extent applicable, the Company shall
comply with the information requirements applicable to the Plan pursuant to
Section 260.140.46 of the California Code of Regulations.

    

    
      
        
        

      

      
        25Exhibit
10.1

    

    STATE OF
NORTH CAROLINA

    LEASE
AGREEMENT

    COUNTY OF
MECKLENBURG

    

    LEASE
AGREEMENT (“Lease”), dated as of September 4, 2009, between FAT BOY TRADING
COMPANY (“Landlord”), a North Carolina corporation, and SCR – TECH, LLC
(“Tenant”), a North Carolina limited liability company; and consented to by CPP
INTERNATIONAL, LLC (“CPPI”), a North Carolina limited liability company and
affiliate of Landlord, for the limited purposes contained
herein.

    

    RECITALS

    

    A.           Landlord
is the owner of certain real property and improvements located thereon
(together, the “Premises”) comprised of approximately 7.27 acres located at
11707 Steele Creek Road, Charlotte, Mecklenburg County, North Carolina, as more
particularly described on Exhibit A attached
hereto.

    

    B.           The
primary improvement upon the Premises is that building consisting of
approximately 143,500 heated and cooled square feet (the “Building”), which
Building has been occupied most recently by CPPI.

    

    C.           Landlord
has agreed to lease the Premises to Tenant, and Tenant has agreed to lease the
Premises from Landlord, upon the terms and conditions set forth
herein.

    

    WITNESSETH

    

    NOW,
THEREFORE, in consideration of the Recitals and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
Landlord and Tenant agree as follows:

    

    1.           Grant and Acceptance of
Lease.  Landlord hereby leases the Premises to Tenant, to have
and to hold unto the Tenant during the term of this Lease, including all
extensions thereof, subject to all terms and conditions of this
Lease.  Tenant hereby accepts this grant of lease and the Premises,
subject to all terms and conditions of this Lease.

    

    2.           Term.  The
term of this Lease shall commence September 4, 2009,
and shall expire at 11:59 PM on May 31, 2017 (the “Initial
Lease Term”), unless extended at the election of Tenant for up to two (2)
extension terms of five (5) years each, by written notice to Landlord given
not less than one hundred eighty (180) days prior to the expiration of the
then-current Lease term (each, a “Renewal Period”).  The Initial Lease
Term as extended by a Renewal Term is known as the “Term”.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    3.           Tenant’s Access to
Building.  Tenant acknowledges that CPPI has utilized the
Building for the preceding years and must continue to utilize a portion of the
Building for the immediate future.  Therefore:

    

    a.  Notwithstanding
anything in this Lease to the contrary, Landlord shall retain an area within the
Building constituting 45,040 square feet for lease to CPPI through August 31,
2010 (the “CPPI Portion”), which CPPI Portion shall be deemed specifically
excluded from the Premises subject to this Lease until such date.  The
location of the CPPI Portion is comprised of Sections CPP-1 and CPP-2 as
illustrated on Exhibit
B which is attached hereto and incorporated herein by
reference.

    

    b.           Landlord
shall ensure that CPPI vacates the CPPI Portion on or before the conclusion of
business on August 31, 2010; provided, however, Tenant shall have the right to
notify Landlord in writing that Tenant needs the CPPI Portion prior to September
1, 2010, and upon Tenant so notifying Landlord, Landlord shall ensure that CPPI
vacates the CPPI Portion no later than sixty (60) days after such notice from
Tenant.  As of September 1, 2010 (or as of the day immediately
following CPPI’s vacation of the CPPI Portion if Tenant requests CPPI vacate the
CPPI Portion prior to September 1, 2010 as provided above), Tenant shall lease
the CPPI Portion from Landlord on the terms and conditions otherwise applicable
under this Lease, and such CPPI Portion shall be deemed a portion of the leased
Premises as of such date.

    

    c.           Notwithstanding
anything in this Lease to the contrary, during the period from September 4,
2009, through August 31, 2010, while Landlord is retaining the CPPI Portion for
lease to CPPI pursuant to this Section 3, any and all insurance, taxes,
maintenance, and utilities that benefit both the CPPI Portion and the remainder
of the Building and the Premises will be prorated between the CPPI Portion and
the remainder of the Building, which pro ration shall be calculated based upon
the square footage of the CPPI Portion as a percentage of the entire
Building.  CPPI shall promptly pay to Tenant its pro rata share of
such expenses upon receipt from Tenant of an invoice for such expenses with such
payment being due no later than thirty (30) days after the date of CPPI’s
receipt of such invoice.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    d.           CPPI
shall have unlimited access from Tenant to gain access to the CPPI Portion
across Tenant’s leased portion of the Premises, and CPPI shall follow standard
safety procedures during any such access.  CPPI agrees to maintain an
uncluttered walkway across Sections CPP-1 and CPP-2 of the CPPI Portion to
enable Tenant to freely cross over such space to access Tenant’s leased portion
of the Premises at all times.  Tenant and CPPI covenant and agree that
each of them will not block each others means of ingress and egress from the
space leased by each of them under this Lease.

    

    4.           Holding
Over.  If Tenant shall hold over and continue occupancy of the
Premises beyond the expiration of the Lease term, as extended (if extended),
Tenant’s obligations to Landlord shall continue from month to month under all of
the then applicable terms and conditions of this Lease; except, however, absent
written agreement by the Landlord to another rate, rent payable by Tenant to
Landlord during the holdover period shall be 150% of the rent payable
immediately prior to the expiration of the last applicable Lease
term.  Landlord’s permitting Tenant to continue holdover occupancy
shall not be construed as giving Tenant any renewal tenancy or any extension
rights other than as a month-to-month tenant.  Tenant may terminate
such holdover month-to-month tenancy as of the end of any calendar month upon at
least thirty (30) days’ advance written notice to Landlord.  Landlord
may terminate such holdover month-to-month tenancy as of any date (whether or
not the end of a calendar month) upon at least thirty (30) days’ advance written
notice to Tenant.

    

    5.           Rent.  All
monthly rent shall be payable on or before the first day of each calendar month,
and shall be prorated on a per
diem basis for any partial month.  A late charge of ten percent
(10%) of the rent due shall be payable as to each monthly installment of rent
not received by the Landlord by the fifth (5th)
business day of the calendar month when due. Monthly rent during the term of
this Lease, and any extensions hereof, shall be as set forth in the following
rent schedule.  Such rent schedule assumes Tenant leases the CPPI
Portion on September 1, 2010, and if Tenant leases the CPPI Portion prior to
September 1, 2010 the rent schedule shall be revised to reflect the square
footage of the Building leased by Tenant on the applicable dates with an initial
annual rent rate of $2.70 commencing September 4, 2009 increased three percent
(3%) per year on each following September 1 with nine (9) months free rent for
the space initially leased by Tenant on September 4, 2009, and six (6) months
free rent for the CPPI Portion when leased by Tenant.  The monthly
rent for the first month in which rent is due (June, 2010) is prorated to
reflect commencement of the Lease on September 4, 2009 (i.e. amount of monthly
rent payment is multiplied by the fraction of 27/30).

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              a.

            	
              Initial Lease
      Term.

            

    

    

    
      
        
          
            	
                    Months

                  	 	
                    Monthly Rent

                  	 
	
                    9/1/2009 - 5/31/2010

                  	 	$	0.00	 
	
                    6/1/2010 – 6/30/2010

                  	 	$	19,938.15	 
	
                    7/1/2010 – 8/31/2010

                  	 	$	22,153.50	 
	
                    9/1/2010 – 2/28/2011

                  	 	$	22,818.11	 
	
                    3/1/2011 – 8/31/2011

                  	 	$	33,256.13	 
	
                    9/1/2011 – 8/31/2012

                  	 	$	34,253.81	 
	
                    9/1/2012 – 8/31/2013

                  	 	$	35,281.42	 
	
                    9/1/2013 – 8/31/2014

                  	 	$	36,339.87	 
	
                    9/1/2014 – 8/31/2015

                  	 	$	37,430.06	 
	
                    9/1/2015 – 8/31/2016

                  	 	$	38,552.96	 
	
                    9/1/2016 – 5/31/2017

                  	 	$	39,709.55	 

          

        

      

    

    

    b.           First Extension
Term.  If Tenant elects to extend the term of the Lease by five
(5) years from June 1, 2017, through May 31, 2022, pursuant to Section 2 above
(the “First Extension Term”), the monthly rent for the first year (measured as a
12-month period from 6/1/2017 through 5/31/2018) of such First Extension Term
shall be the Fair Market Rental Rate (as defined in Paragraph (d) below) as of
June 1, 2017. The monthly rent for each subsequent 12-month period within the
First Extension Term shall increase by three percent (3.0%) from the prior
12-month period.

    

    c.           Second Extension
Term.  If Tenant elects to extend the term of the Lease by five
(5) years from June 1, 2022, through May 31, 2027, pursuant to Section 2 above
(the “Second Extension Term”), the monthly rent for the first year (measured as
a 12-month period from 6/1/2022 through 5/31/2023) of such Second Extension Term
shall be the Fair Market Rental Rate (as defined in Paragraph (d) below) as of
June 1, 2022. The monthly rent for each subsequent 12-month period within the
Second Extension Term shall increase by three percent (3.0%) from the prior
12-month period.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    d.           Fair Market Rental Rate.
 For the
purposes of paragraphs (b) and (c) above, the term “Fair Market Rental Rate”
shall mean a rate comprised of the prevailing base rental rate per square foot
of rentable area available in the Charlotte, North Carolina market for renewals,
as determined by Landlord in good faith, taking into account leases for improved
space which are comparable to the Premises in reputation, quality, use, age,
size, location, and level and quality of services (the foregoing factors not
being exclusive in identifying comparable buildings).  Landlord shall
notify Tenant of Landlord’s determination of the Fair Market Rental Rate within
thirty (30) days after Landlord’s receipt of Tenant’s election to extend the
term of the Lease (“Landlord’s Fair Market Rate Notice”).  Within
fourteen (14) days following the date upon which Landlord gives Tenant
Landlord’s Fair Market Rate Notice, Tenant shall, by written notice to Landlord,
either (i) accept Landlord’s determination of the Fair Market Rental Rate, or
(ii) reject Landlord’s determination of the Fair Market Rental Rate and proceed
as set forth in the following paragraph.  In the absence of timely
written notice from Tenant, Tenant shall be deemed to have chosen option
(ii).  If the monthly Fair Market Rental Rate is determined to be
lower than the monthly rent paid by Tenant to Landlord during the 12-month
period concluding the preceding term (though which preceding term shall be the
then-current term at the time of calculation; the “Preceding Rent Rate”), then
the Fair Market Rental Rate shall be deemed to equal the Preceding Rent
Rate.

     

    If Tenant
rejects Landlord's determination of the Fair Market Rental Rate, then within
thirty (30) days after receipt of Landlord’s Fair Market Rate Notice, Tenant
shall have the right to submit to Landlord an appraisal (“Tenant’s Fair Market
Rate Notice”) by a Qualified Real Estate Appraiser of Fair Market Rental Rate
effective as of the commencement date of the applicable Renewal Period. If the
higher estimate (as between Landlord’s Fair Market Rate Notice and Tenant’s Fair
Market Rate Notice) is not more than one hundred five percent (105%) of the
lower estimate, the Fair Market Rental Rate shall be established as the average
of the two rates. If the higher rate is more than one hundred five percent
(105%) of the lower rate, Landlord and Tenant shall, within fifteen (15) days
after Tenant’s Fair Market Rate Notice has been submitted, each select a
Qualified Real Estate Appraiser (which for Tenant may be the same individual as
previously utilized).  The two appointed Qualified Real Estate
Appraisers shall select a third Qualified Real Estate Appraiser (the “Referee”).
If Landlord and Tenant are unable to agree upon the selection of a Referee, then
the Referee shall be selected within fifteen (15) days thereafter by an
arbitrator selected pursuant to the rules of the American Arbitration
Association.

     

    The
Referee shall, within thirty (30) days after appointment, render his decision as
to the Fair Market Rental Rate, by electing Landlord’s Fair Market Rental Rate,
Tenant’s Fair Market Rental Rate, or any figure in between.  The
decision of the Referee shall be issued in writing, shall be binding upon
Landlord and Tenant, and shall constitute the Base Rent for the applicable
Renewal Term. Landlord and Tenant shall each pay for their own determination,
and the cost of the Referee and arbitrator, if any, shall be shared equally by
Landlord and Tenant.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     As
used in this Paragraph (d), the term “Qualified Real Estate Appraiser” shall
mean an appraiser who has at least five (5) years’ full-time commercial real
estate appraisal experience in the geographical area in which the Premises are
located.

     

    e.           Escalation
Cap.  Any increase from the Preceding Rent Rate to a higher
Fair Market Rental Rate for a subsequent period shall be capped at 110% of the
Preceding Rent Rate.

    

    6.           Additional
Rent.  If the Landlord shall make any expenditure for which
Tenant is responsible, or if the Tenant shall fail to make any payment to
Landlord which Tenant is obliged to make hereunder, then the amount thereof may
at Landlord’s option be added to any installment of rent then due or thereafter
becoming due.

    

    7.           Security Deposit / Letter of
Credit.

    

    a.           Prior to the commencement
of the Lease term, Tenant shall issue to Landlord a security deposit in the
amount of $35,000.00, to be held by Landlord as security for the faithful
performance by Tenant of all covenants of this Lease (the “Security
Deposit”).  The amount of the Security Deposit, without interest,
shall be repaid to Tenant after the termination of this Lease and any renewal
thereof, provided Tenant shall have made all such payments and performed all
such agreements of this Lease.

    

    b.           If
any rent or any other sum payable by Tenant to Landlord shall be overdue and
unpaid, or should Landlord make payments on behalf of Tenant, or Tenant shall
fail to perform any of the terms of this Lease, then Landlord may (at its option
and without prejudice to any other remedy) apply so much of the Security Deposit
as may be necessary toward the payment of such rent or cost; and Tenant shall
forthwith upon demand restore said Security Deposit to the original amount of
$35,000.00.  Tenant’s failure to restore said deficiency shall
constitute a default hereunder.  Tenant hereby waives the benefit of
any provision of law requiring such deposit to be held in escrow or in
trust.  In the event of bankruptcy or other creditor-debtor
proceedings against Tenant, the security deposit shall be applied first to the
payment of rent and other charges due Landlord for all periods prior to the
filing of such proceedings.

    

    c.           Landlord
may deliver the Security Deposit to any purchaser of Landlord’s interest in the
Premises, and thereupon Landlord shall be discharged from any further liability
with respect to the Security Deposit.  This provision shall also apply
to any subsequent transferees.  Tenant agrees that it shall hold the
successor Landlord solely liable for the return of the Security
Deposit.

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

    d.           In
addition to the payment of the Security Deposit, Tenant shall, prior to June 1,
2010, issue an irrevocable letter of credit in Landlord’s favor in the amount of
$75,000.00 (the “Letter of Credit”).  Landlord may draw upon the
Letter of Credit for any reason that would otherwise justify an application of
the Security Deposit as set forth in Paragraph (b) above, and Landlord may
proceed to draw against the Letter of Credit prior to the application of all or
any part of the Security Deposit, in Landlord’s sole discretion.  If
Tenant successfully pays to Landlord all rent and additional rent owing under
this Lease through November 30, 2011, then Tenant may terminate the Letter of
Credit.

    

    8.           Use.  Tenant
shall use the Premises exclusively for general offices, storage, and
regeneration of catalysts and the provision of Tenant’s other services offered
to coal and gas fired power plants.

    

    9.           Compliance with Laws and
Regulations.  Tenant shall materially comply at all times with
all applicable laws, ordinances, requirements, regulations, standards and
guidelines (“Laws”) of all federal, state, county, municipal and other
authorities (i.e. Laws applicable to the Premises and/or to its use and/or
occupancy, and Laws applicable to Tenant’s conduct of business at and on the
Premises); and shall promptly take such reasonable actions as may be appropriate
to come into and remain in material compliance by with such Laws.  If
such material compliance by Tenant shall require alterations or other
improvements to the Premises, such work shall be performed at Tenant’s expense,
in compliance with Section 12 hereof.

    

     Landlord
represents and warrants that the Premises will, at the time possession thereof
is delivered to Tenant, materially comply with all Laws which may be applicable
to the Premises and the Building.

    

    10.           Environmental
Compliance.  Without limiting the broader requirements of
Section 9 above, Tenant shall at all times materially comply with all Laws as to
all environmental matters (“Environmental Matters”) impacting the Premises,
which shall include without limitation those Laws applicable to any regulated or
hazardous materials (“Hazardous Materials” as defined hereafter).  In
addition:

    

    a.           Tenant
shall not cause or permit any Hazardous Materials (as hereinafter defined) to be
used, stored, generated, or disposed of on or in the Premises except in
substantial compliance with applicable Laws, and in the case of Tenant
consistent with Tenant’s normal course of business.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

    b.           “Hazardous
Material” or “Hazardous Materials” means any substance: (i) the presence of
which requires permitting, investigation or remediation under any Laws; or (ii)
which is or becomes defined as a hazardous waste, hazardous substance,
pollutant, or contaminant under any Laws including, without limitation, the
Comprehensive Environmental Response, Compensation and Liability Act (42 U.S.C.
Sec. 6901 et seq.); or (iii) which is toxic, explosive, corrosive, flammable,
infectious, radioactive, carcinogenic, mutagenic, or otherwise hazardous and is
or becomes subject to any Laws; or (iv) without limitation, which contains
polychlorinated biphenols (PCB’s), asbestos, or urea formaldehyde foam
insulation.

    

    c.           Except
as to those above ground storage tanks (“AST’s”) generally described on the
Plans (as defined in Section 12(b) below) and approved by Landlord prior to the
commencement of the Lease term and those AST’s to be located inside the
Premises, Tenant shall not, without the prior written consent of Landlord, which
consent shall not be unreasonably withheld, install or place any AST’s or
underground storage tanks (“UST’s”) on the Premises.  If Landlord
consents to any such installation, Tenant shall: install the UST’s and AST’s in
a good and workmanlike manner and in accordance with all Laws; maintain the
UST’s and AST’s in good condition and in material compliance with applicable
Laws, including any applicable monitoring and reporting obligations; and within
thirty (30) days after the termination or expiration of the Lease, remove the
UST’s and AST’s at the express advance written request of the Landlord and at
Tenant’s sole expense, and restore the Premises to the condition existing on the
commencement date of the Lease term ordinary wear and tear
excepted.

    

    d.           Landlord
shall provide to Tenant a copy of the Phase I environmental report
previously completed concerning the Premises.  Tenant may, at the sole
cost and expense of Tenant, conduct any environmental testing at the Premises
deemed necessary by Tenant.

    

    e.           Landlord
may, at the sole cost and expense of Landlord, obtain a reasonably periodic
environmental review of the Premises, by an experienced environmental consultant
satisfactory to Landlord, to determine that Tenant is in compliance with the
environmental requirements set forth in this Lease.  Tenant shall
provide, upon reasonable advance written notice, reasonable access to the
Premises and Tenant’s environmental related documents which are not confidential
or privileged such that the environmental consultant may perform the
environmental review. Landlord shall, within thirty (30) days after receipt of
the environmental review, deliver a copy to Tenant along with a list of any
alleged non-compliance with environmental requirements of this Lease, the
“Alleged Non-Compliance” (“Landlord’s Environmental Notice”).  Unless
Tenant objects as set forth below, Tenant shall, within thirty (30) days
thereafter, at Tenant’s expense, commence to resolve any Alleged Non-Compliance
in accordance with applicable environmental Laws and diligently pursue
completion of same.

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    If Tenant
objects to Landlord’s Environmental Notice, then within thirty (30) days after
receipt of Landlord’s Environmental Notice, Tenant shall have the right to
submit to Landlord an environmental report prepared by an experienced
environmental consultant chosen by Tenant, and Tenant shall submit a copy of the
environmental report prepared by Tenant’s environmental consultant to Landlord
within such time period. Landlord and Tenant shall work cooperatively and in
good faith to resolve any differences between Landlord’s Environmental Notice
and Tenant’s environmental report.  If Landlord and Tenant cannot
resolve such differences within sixty (60) days after Landlord’s receipt of
Tenant’s environmental report, then any unresolved differences shall be resolved
by an arbitrator selected and acting pursuant to the rules of the American
Arbitration Association, and the decision of the arbitrator shall be binding
upon both Tenant and Landlord.  Landlord and Tenant shall each pay for
their own environmental consultant, and the cost of the arbitrator, if any,
shall be borne by the party against whom the arbitrator rules, and in the event
there shall not be one party against whom the arbitrator rules, the cost of the
arbitrator shall be borne by the parties in proportion to the fault as
determined by the arbitrator.

    

    f.           Tenant
shall promptly upon receipt provide Landlord with a copy of all communications
to or from any governmental authorities in connection with environmental matters
other than routine communications, permit renewals and other non-material
matters.

    

    11.           Delivery of
Premises.  Landlord shall deliver the Premises to Tenant in
“broom-clean” condition, with all systems (e.g. HVAC, electrical, plumbing,
lighting, sprinkler, dock doors and levelers, etc.) in good operational
condition, and the roof shall be water-tight.  Prior to the
commencement of the Initial Lease Term, Landlord shall repair or replace, as
needed in Landlord’s discretion, any cracked or broken windows, sky lights,
loading doors, or personnel doors.  Landlord covenants and agrees to
promptly perform at Landlord’s expense the repairs set forth in Table I attached
hereto as “Exhibit
C” which is incorporated herein by reference with such repairs completed
no later than October 31, 2010, or if such repairs cannot be practically
completed by such date, good faith efforts toward completion
made.

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    12.           Alterations and
Improvements.

    

    a.           Subject
only to the repair obligations set forth in Section 11 above and Landlord’s
other obligations and representations set forth elsewhere in this Lease,
Landlord shall lease the Premises to Tenant in “as-is” condition.

    

    b.           Prior
to the commencement of the Initial Lease Term, Tenant shall submit detailed
plans to Landlord illustrating Tenant’s proposed up-fit of the Premises (the
“Plans”).  Landlord shall approve or deny the Plans (or suggest
alterations thereto) in a timely fashion, and such approval shall not be
unreasonably withheld.  Landlord acknowledges that Tenant intends to
install equipment, tanks (subject to Section 10 above), piping, valves, ovens,
and other fixtures incidental to Tenant’s business.

    

    c.           Following
Landlord’s approval of the Plans and Tenant’s completion of the work set forth
therein, Tenant shall be able to make such additional expansions,
reconfigurations, and additions to the Premises, including, but not limited to,
the Building, driveways and parking lots, as are deemed necessary by Tenant upon
the prior written consent of Landlord, which consent shall not be unreasonably
withheld.  Subject to Section 10(c) above, Tenant may install or cause
to be installed any trade fixtures or other equipment used in Tenant’s business
without the consent of Landlord.

    

    d.           All
approved alterations, additions and improvements, including fixtures installed,
shall be performed by Tenant at Tenant’s sole cost and expense.  All
alterations, additions and improvements shall be accomplished with first quality
materials, parts, components and equipment, in a good workmanlike manner, in
compliance with all Laws, and consistent with the style, character and quality
of existing improvements.

    

    e.           All
approved alterations, additions and improvements, including fixtures installed
(less and except Tenant’s production equipment, machinery, tanks and other
similar equipment and fixtures which may be affixed to the Premises and later
removed by Tenant), shall upon installation attach to and become a part of the
Premises and shall become the property of Landlord.  However, Landlord
shall be entitled, at its election, to require Tenant upon termination of the
Lease to remove any such Tenant installed alterations, additions, improvements
or fixtures, and to substantially restore the Premises to its condition prior to
such installation (except as to such approved alterations, additions, or
improvements that are of a permanent nature as can not be removed by Tenant
using commercially reasonable means, effort, and expenditures, e.g. walls,
plumbing, electrical and other similar structural items), ordinary wear and tear
excepted.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    13.           Maintenance and
Repairs.

    

    a.           Landlord
shall maintain, repair and replace, as necessary, the roof (including skylights)
and structure of the Building (including the sides, external walls other than
those constructed by Tenant, beams, footings, load-bearing walls, and columns,
but excluding the floor and any damage to any aforementioned structural elements
caused by Tenant’s activity) as it exists upon delivery of the Premises to
Tenant.  Additionally, until August 31, 2014, Landlord shall be
responsible for maintaining the HVAC units at standard condition in the manner
required of Landlord under Exhibit C.  As of September 1, 2014, Tenant
shall be fully responsible for maintenance of the HVAC
units.  Notwithstanding the foregoing, Landlord shall not be
responsible for maintaining the roof or structure relating to any addition to
the Building (or any other building constructed upon the Premises) constructed
by Tenant pursuant to Section 12 above, including but not limited to the fusion
of any new roof area constructed by Tenant to any existing roof area, which
items shall be solely Tenant’s maintenance responsibility.  Landlord
shall be responsible for repair of any structural deficiency in the concrete and
asphalt paved areas of the Premises in the event of collapse or sink hole
through August 31, 2014, and Landlord and Tenant shall each share one-half the
cost and responsibility for repair of any structural deficiency in the concrete
and asphalt paved areas in the event of collapse or sink hole for the balance of
the Lease Term.

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    b.           Subject
to Landlord’s responsibilities of maintenance, repair and replacement set forth
in Paragraph (a) of this Section 13 and Section 11 and excluding any
environmental obligation arising under Section 10 of this Lease, Tenant shall be
responsible for the maintenance, repair and (subject to Section 12 above)
replacement of all improvements on or to the Premises, including without
limitation the exterior of all buildings constructed by Tenant, additions to
buildings constructed by Tenant, all interior improvements including fixtures,
all heating, ventilating and air conditioning equipment systems, all electrical,
telephone, plumbing, natural gas, cable and other utility systems, all exterior
and interior lighting, drives, curbs, sidewalks, parking areas and landscaped
areas, all paved portions of driveways and loading areas utilized by tractor
trailers servicing Tenant’s business, interior walls, floor coverings, ceilings,
interior partitions, inside doors, dock doors, dock leveling systems, any of
Tenant’s alterations, additions or improvements, and all
landscaping.  All such maintenance, repairs and replacements shall be
accomplished with first quality materials, parts, components and equipment, in a
good workmanlike manner, in material compliance with all Laws, and consistent
with the style, character and quality of existing improvements.  Upon
expiration of this Lease, Tenant shall deliver the Premises to Landlord in
substantially as good condition as received from Landlord, ordinary wear and
tear excepted.

    

    14.           Right of
Entry.  The Landlord shall have the right to enter the
Premises, and to authorize its representatives and others to enter the Premises,
at any reasonable time for inspecting, making such repairs as the Landlord may
be required to make, and showing the Premises to any prospective purchaser, and,
during the last one hundred eighty (180) days of the Lease Term or any extension
or renewal, to prospective tenants.  Landlord shall use its best
efforts to perform any repairs at such times and in such manner as will not
unreasonably interfere with Tenant’s use and occupancy of the Premises or the
conduct of Tenant’s business.  Except for any entry by Landlord in an
emergency situation, Landlord shall provide Tenant with reasonable prior notice
of any entry into the Premises any purpose which the Landlord shall deem
necessary during the term of this Lease.  No such entry shall render
the Landlord liable for any claim, loss, damage, cause of action or other
liability to the Tenant or the property of Tenant, unless arising from the
misconduct or negligence of Landlord.  Landlord’s right of entry shall
include the right to place signs on the Premises indicating that it is for sale
or during the last one hundred eighty (180) days of the Term for
rent.

    

    15.           Operating
Expenses.  Subject only to proration of such items with CPPI
for the period from September 4, 2009, through August 31, 2010, Tenant shall
bear full responsibility for the following operating expenses relating to the
Premises:

    

    a.           Utilities.  Tenant
shall be solely responsible for the providing of electricity, heating and air
conditioning (subject to Landlord’s maintenance responsibilities set forth in
Section 13(a) above), water and sewer service, janitorial service and all other
utilities and services to the Premises, and all costs associated
therewith.

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    b.           Insurance.  Tenant
shall obtain, maintain and pay for all property, casualty and public liability
insurance required in the sole reasonable discretion of Landlord to be provided
from time to time, with insurance companies reasonably acceptable to Landlord
with customary limits for industrial properties of similar size, construction,
quality, use and location.  Tenant shall insure in Landlord’s name all
buildings and improvements now existing or hereafter erected as part of the
Premises against loss by fire, windstorm, water and other hazards, casualties
and contingencies, vandalism, and malicious mischief as are usually covered by
extended coverage policies, for their full repair and replacement cost, without
reduction for depreciation.  Tenant shall in addition insure itself
and Landlord under policies providing comprehensive general public liability
coverage in customary amounts not less than reasonably required by
Landlord.  Tenant shall deliver to Landlord policies, certificates and
endorsements of such fire and hazard insurance naming Landlord as an insured
party and containing loss payable clauses which make all losses relating to the
Building under such policies payable to Landlord.  Tenant shall
deliver to Landlord policies, certificates and endorsements of such
comprehensive general public liability insurance naming Tenant and Landlord as
insured parties and containing loss payable clauses which make losses under such
policies payable to whichever of Tenant or Landlord are entitled payment under
such insurance.  Landlord, at its election, may obtain all such
required insurance, to be paid for by Tenant. Such policies or certificates
shall contain provisions that no insurance may be canceled or decreased without
thirty (30) days prior written notice to Landlord.  Tenant shall not
by any act or omission cause an increase in the rate of insurance or the
cancellation of any insurance policy.

    

    c.           Taxes.  Tenant
shall pay all taxes and assessments levied upon or with respect to the Premises
and this Lease, including without limitation ad valorem, real property, personal
business property, intangibles and sales taxes, excluding only income taxes
payable by Landlord by reason of Landlord’s receipt of rent.

    

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    16.           Indemnification.

     a.           Except
to the extent any damages, actions, liabilities and expenses are covered by
property insurance or liability insurance required to be maintained or actually
carried by either party hereunder, Tenant shall defend, indemnify and hold
harmless Landlord, any successor to Landlord’s interest in the Premises, and
their respective partners, shareholders, members, directors, managers, officers,
employees, agents and contractors (each an “Indemnified Party” and collectively
“Indemnified Parties”), from and against any and all claims, demands, actions,
causes of action, suits, proceedings, damages, fines, judgments, penalties,
liabilities (including strict liability), losses and any and all sums paid for
settlement of claims including reasonable attorneys’ fees relating to same (the
foregoing being hereinafter referred to, collectively, as “Indemnified
Exposure”), arising from: (1) any injury to or death of any person or the damage
to or theft, destruction, loss, or loss of use of any property arising from
Tenant’s or any of its employees’ agents’ or contractors’ (collectively,
“Tenant’s Representatives”) negligent use and occupancy of the Premises during
the Term or arising out of the negligent installation, operation, maintenance,
repair or removal of any of Tenant’s improvements, and excluding the negligence
and intentional misconduct of Landlord, its employees, agents, contractors,
members and managers (“Landlord’s Representatives”); or (2) Tenant’s failure to
perform its obligations under this Lease, and excluding the negligence and
intentional misconduct of Landlord, its employees, agents and
contractors.  Notwithstanding any forgoing provisions hereof to the
contrary, Tenant shall have no obligation to indemnify Landlord or Landlord’s
Representatives for and against any claims directly resulting from the
Landlord’s negligence or intentional misconduct.

    

     b.           Without
limiting the generality of the foregoing, Tenant shall defend, indemnify and
hold harmless each Indemnified Party from and against any and all Indemnified
Exposure (as defined above) arising during or after the Lease term as a result
of Tenant’s failure to comply with any environmental obligation arising under
Section 10 of this Lease.  This indemnification includes, without
limitation, any and all costs incurred because of any reasonable investigation
of the Premises and any cleanup, removal or restoration specifically mandated by
any federal, state or local agency or political subdivision resulting from
Tenant’s failure to comply with any environmental obligation arising under
Section 10 of this Lease.  Without limitation of the foregoing, if
Tenant, or any of its employees, agents or contractors, causes or permits the
presence of any Hazardous Materials on the Premises resulting in contamination,
Tenant shall promptly, at its sole expense, take any and all necessary actions
to resolve the contamination consistent with applicable environmental
Laws.  Tenant shall be entitled to conduct such environmental
investigations as it sees fit prior to the commencement of the Initial Lease
Term so as to establish a baseline status of the Premises from which Tenant’s
indemnification duty under this paragraph (b) may be
ascertained.

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    

    c.  Except
to the extent any damages, actions, liabilities and expenses are covered by
property insurance or liability insurance required to be maintained or actually
carried by either party hereunder, Landlord shall defend, indemnify and hold
harmless Tenant, any successor to Tenant’s interests in the Premises, and
Tenant’s Representatives, from and against any and all Indemnified Exposure
arising from any breach or default in the performance of any obligation on
Landlord’s part to be performed under the terms of the Lease or arising from any
negligence or misconduct of Landlord, or any of Landlord’s Representatives, and
from and against all costs, reasonable attorneys’ fees, expenses and liabilities
incurred in the defense of any such claim or any action or proceeding brought
thereon.  Notwithstanding any foregoing provisions hereof to the
contrary, Landlord shall have no obligation to indemnify Tenant from and against
any claims directly resulting from Tenant’s negligence or intentional
misconduct.

    

    17.           Tenant’s Right of First
Refusal.  Landlord hereby gives and grants to Tenant during the
Term of this Lease, including any extensions, the right of first refusal to
purchase the Premises as provided in this Section.  Should Landlord
receive or secure from any third party a bona fide purchase offer for
the Premises acceptable to Landlord, Landlord shall, within ten (10) days
following receipt of such offer, transmit a true copy of such offer to
Tenant.  Tenant shall then have twenty (20) days following receipt of
such offer (i) to notify Landlord, in writing, that Tenant elects to purchase
the Premises upon the same terms and conditions as contained in said third-party
offer; and (ii) to provide to Landlord a written loan commitment from a lender
(the “Commitment”) and/or a standby letter of credit (the “LOC”), which
Commitment and/or LOC evidence the ability of Tenant to provide cash and/or
financing at closing for the purchase price of the Premises as contemplated in
such third-party offer.  Tenant shall close on the purchase of the
Premises within sixty (60) days after the date Tenant elects to purchase the
Premises, on the same terms as set forth in such third-party offer or as may
otherwise be negotiated between Landlord and Tenant.

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    18.           Damage.  Tenant agrees
to give Landlord notice of any damage to the Premises as soon as reasonably
practicable.  In
the event the Premises are damaged by fire or other casualty, but are not
rendered untenantable for Tenant's business, either in whole or in part, Tenant
shall cause such damage to be repaired without unreasonable delay (and Landlord
shall promptly disburse any insurance proceeds received in connection with such
damage to Tenant as needed to fund any repairs to be made by Tenant hereunder)
and the Rent shall not be abated.  In the event the Premises are
rendered untenantable for Tenant's business by reason of such casualty, either
in whole or in part, Tenant shall cause the damage to be repaired or replaced
without unreasonable delay (and Landlord shall promptly disburse any insurance
proceeds received in connection with such damage to Tenant as needed to fund any
repairs to be made by Tenant hereunder), and, in the interim, the Rent shall be
proportionately reduced as to such portion of the Premises as is rendered
untenantable.  Any such abatement of rent shall not, however, create
an extension of the Term of this Lease.  Provided, however, in the
event the Premises are rendered untenantable in some material portion by reason
of such casualty, and the amount of time required to repair the damage using due
diligence is in excess of one hundred eighty (180) days, then either party shall
have the right to terminate this Lease by giving written notice of termination
within sixty (60) days after the date of casualty, and the Rent shall abate as
of the date of such casualty in proportion to the part of the Premises rendered
untenantable.  

    

    19.           Condemnation.  If
the Premises or any part thereof shall be taken by any governmental authority by
exercise of the right of condemnation or eminent domain, this Lease may be
terminated by either party only in the event that the taking precludes Tenant
from continuing to conduct its business on the Premises.  Notice of
any such termination must be given within ninety (90) days after such taking is
completed.  Otherwise, this Lease shall continue in full force and
effect, and the rent shall be proportionately and equitably
reduced.  Landlord shall be entitled to receive all awards and
compensation that may be made in respect of such taking relating to the Premises
and improvements and this Lease; and Tenant shall not be
entitled to any part of any award or payment to be received by Landlord for such
taking except for the unamortized value of any leasehold improvements installed
and paid for by Tenant and Tenant’s moving costs.  Tenant shall
be entitled to seek and receive any award or other compensation (if separately assessed or
awarded) that may be payable by the condemner directly to Tenant; but only to the
extent that any such award or compensation would not reduce the award or
compensation otherwise due and payable to Landlord.  Subject to the
immediately preceding two sentences, Tenant hereby assigns and transfers to
Landlord any and all rights to awards and compensation that would otherwise be
made to Tenant as a result of any condemnation or taking of the
Premises.  Except for the foregoing, in no event shall Tenant have any claim or
rights as against Landlord for the value of any unexpired term of this Lease,
for damages to its personal property, or for relocation costs, or to any
proceeds received by Landlord as a result of any condemnation or taking
of the Premises.

    

    20.           Assignment.  This
Lease may not be assigned by Tenant, nor may the Premises be subleased by
Tenant, without the prior written consent of the Landlord, which consent may not
be unreasonably withheld.  However, in the event of any such approved
assignment or sublease, Tenant shall remain jointly and severally liable with
its assignee or sublessee (as applicable) for any and all obligations otherwise
owing of Tenant under this Lease.  Landlord shall be entitled at any
time to assign its interest in this Lease, including without limitation in
connection with any conveyance or encumbrance of the Premises.

    
      
         

      

      
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    21.           Subordination.  This
Lease and all rights hereunder shall be, become and remain subordinate to the
lien of any mortgage, deed of trust or other encumbrance, now or hereafter
imposed upon all or any part of the Premises, securing any loan or lender to
Landlord, and Tenant shall promptly execute and deliver to Landlord and any
lender of Landlord any instruments reasonably requested by either with respect
to such subordination, including but not limited to any financial statements of
Tenant as may be reasonably requested by Landlord or any such
lender.

    

    22.           Estoppel
Certificate.  Within ten (10) days after written request
therefor by Landlord or any mortgagee or beneficiary under a deed of trust
covering the Premises, or if, upon any contract of sale, sale, assignment or
other transfer of the Premises by Landlord, an estoppel certificate shall be
requested of the Tenant, Tenant shall execute and deliver in recordable form a
statement to any mortgagee, beneficiary or other transferee, or to Landlord,
certifying any facts that are then true with respect to this Lease, including
without limitation, if true, that this Lease is in full force and effect, that
Tenant has accepted and is presently occupying said payments, that Tenant has
commenced the payment of rent, that said payments are current, that no default
exists under the terms and provisions of said Lease, and that there are no
defenses or offsets to the Lease claim by Tenant.

    

    23.           Quiet
Possession.  The Landlord covenants and agrees that Tenant,
upon paying the rent as herein reserved and performing all the covenants and
agreements herein contained on the part of the Tenant, may quietly and peaceably
have, hold and enjoy the Premises, subject to the terms of this
Lease.

    

    24.           Tenant Default and
Remedies.  In addition to and not in limitation of all other
remedies available to Landlord, if the Tenant fails to perform or observe any of
the covenants contained herein on its part to be observed and performed within
ten (10) days after notice from Landlord upon any monetary default, or within
thirty (30) days after notice from Landlord upon any nonmonetary default,
then Landlord shall have the duty to use reasonable efforts to mitigate damages
and shall have the option to pursue any one of the following
remedies:

    
      
         

      

      
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     (a) Terminate
this Lease, in which event Tenant shall immediately surrender the Premises to
Landlord, and if Tenant fails to do so, Landlord may, without prejudice to any
other remedy which it may have for possession, by legal process, enter upon and
take possession and expel or remove Tenant and any other person who may be
occupying said Premises or any part thereof.  In the event of
termination, Landlord may declare due and payable (x) the remaining rent due
under this Lease less (y) the current market rent available to the Landlord,
expressly factoring in any foreseeable time delay for re-letting the Premises as
determined by a Qualified Real Estate Appraiser (as defined in Section 5(d)
above), but both (x) and (y) shall be discounted to present value using a
discount rate of the then prime rate of Bank of America, N.A.; or

    

    (b) Enter
upon and take possession of the Premises and remove Tenant and any other person
who may be occupying the Premises or any part thereof, without terminating this
Lease, in which event Landlord shall use Landlord's best efforts to relet the
Premises on such terms as Landlord shall deem advisable and Landlord shall
receive the rent thereof. Tenant hereby agrees to pay Landlord's unamortized
costs for leasing commissions for this Lease but not Landlord’s costs to relet
the Premises since such costs are a normal cost of doing business and will be
amortized over the term of the new lease. Landlord shall apply the rent received
first to the Landlord's then unamortized leasing commissions costs for this
Lease, and secondly to any rent due Landlord from Tenant.  Tenant
agrees to pay to Landlord on demand any deficiency in rent that may
arise.  Notwithstanding any such reletting without termination,
Landlord may, at any time thereafter elect to terminate this Lease for a
previous uncured event of default. In addition, Landlord shall be entitled to
recover from Tenant all reasonable attorneys’ fees, court costs and other
expenses incurred in connection with any default of Tenant.

    

    Forbearance
by Landlord to enforce one or more of the remedies herein provided upon an event
of default shall not be deemed or construed to constitute a waiver of any such
violation or default.

    

    24A. Landlord Default and
Remedies.   Landlord shall be deemed to be in default
under this Lease if Landlord shall fail to comply with any term, provision, or
covenant of this Lease and (i) shall not cure such default within thirty (30)
days after notice thereof from Tenant, or (ii) in the event such failure cannot
reasonably be cured within thirty (30) days, if Landlord fails to commence cure
within thirty (30) days and pursue to a diligent conclusion, or (iii) if the
default shall fundamentally interfere with Tenant’s use or occupancy of the
Premises or from carrying on business at the Premises if Landlord shall not cure
such default within forty-eight (48) hours after either oral or written notice
from Tenant.  In the event the Landlord is in default under this
Lease, Tenant may, at its option cure Landlord's default without relieving the
Landlord from any liability or responsibility or waiving any of Tenant's rights
under this Lease.  If upon the completion of Tenant's cure of
Landlord's default the cost of such cure is not reimbursed by the Landlord to
Tenant within ten (10) business days of receipt of written invoice from Tenant
to Landlord and the validity of the necessity of such cure is approved by
Landlord, Tenant may deduct the cost of such cure from any rent or other
payments owed under this Lease.  Forbearance by Tenant to enforce the
remedy herein provided upon an event of default shall not be deemed or construed
to constitute a waiver of any such violation or default.

    
      
         

      

      
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    25.           Insolvency
Proceedings.  If at any time proceedings in bankruptcy, or
pursuant to any other act for the relief of debtors, shall be instituted by or
against Tenant, or if Tenant shall compound Tenant’s debts or assign over
Tenant’s estate or effects for payment thereof, or if any execution shall issue
against the Tenant or any of Tenant’s effects whatsoever, or if a receiver or
trustee shall be appointed of the Tenant’s property, or if this Lease shall by
operation of law, devolve upon or pass to any person or persons other than the
Tenant, then and in any of such cases, the Landlord may terminate this Lease
immediately and without advance notice, by notifying Tenant as herein
provided.  Upon such termination all sums due and payable or to become
due and payable by Tenant shall at once become due and payable in accordance
with the terms of this Lease (subject to the clause (a) of Section 24
above).

    

    26.           Liens.  Tenant
shall prevent the filing of and will promptly discharge any mechanics’ or other
liens against the Premises or any part of the income therefrom due to its
activities, and Tenant will not suffer any other matter whereby the estate of
Landlord in any part of the Premises might be impaired.  If any such
lien shall at any time be filed, Tenant shall either cause the same to be
discharged of record within thirty (30) days after the date of filing or,
if in Tenant’s discretion and in good faith, it determines that such lien should
be contested, shall furnish such bond or security as required by Landlord to
prevent any perfection and foreclosure while being contested at the expense of
Tenant.  If Tenant shall fail to discharge such lien within such
period or fail to furnish such security, then, in addition to any other right or
remedy of Landlord resulting from Tenant’s said default, Landlord may pay and
discharge the same, in which event Tenant shall repay to Landlord, as additional
rent, on demand, all such sums disbursed by Landlord, including all of
Landlord’s costs, expenses and reasonable attorney’s fees.

    
      
         

      

      
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    27.           Notices.  All
notices, requests and other communications hereunder shall be in writing and
shall be deemed to have been duly given: (a) when personally delivered; (b) when
sent by telefax to a party at the number listed below for such party, with the
sender being able to provide written confirmation of successfully completed
transmission (provided that if sent after 5:00 p.m. on a business day, or if not
sent on a business day, then same shall be deemed given at 9:00 a.m. on the next
business day); (c) one (1) business day after the day on which the same has been
delivered prepaid to a national overnight courier service for overnight delivery
with all fees prepaid; or (d) three (3) business days after the deposit in the
United States mail, registered or certified, return receipt requested, postage
prepaid (with a copy sent by regular United States mail, postage prepaid); in
each case

    addressed
to the party to whom such notice is to be given at the following address for
such party:

    

    
      	 
      	
              LANDLORD:

            	
              Fat Boy Trading Company

            
	 
      	 
      	
              c/o Carolina Pad

            
	 
      	 
      	
              9144 Arrowpoint Blvd., Suite 200

            
	 
      	 
      	
              Charlotte, NC 28273

            
	 
      	 
      	
              Facsimile: 704-588-1123

            
	 
      	 
      	
              Attn: Joseph Hall

            
	 
      	 
      	 
      
	 
      	
              TENANT:

            	
              SCR-Tech,
      LLC

            
	 
      	 
      	
              11701
      Mt. Holly Road

            
	 
      	 
      	
              Charlotte,
      NC 28214

            
	 
      	 
      	
              Facsimile:
      704-827-8935

            
	 
      	 
      	
              Attn:
      General Counsel

            

    

    

    Any party
may change the address to which notices to it are to be sent by giving the
notice of such change to the other parties in accordance with this
Section.

    

    28.           Severability.  If
any provision of this Lease is prohibited or invalid under applicable law, such
provision shall be ineffective to the extent of such prohibition or invalidity,
without invalidating the remainder of such provision or the remaining provisions
of this Lease.

    

    29.           Nonwaiver.  The
failure of Landlord or Tenant to require compliance with, or Landlord’s or
Tenant’s waiver of any noncompliance of, any term or provision of this Lease
shall not be deemed to be a wavier of such term or provision, or of any
subsequent noncompliance or breach of the same or any other term or provision of
this Lease.  The acceptance of rent at any time under this Lease shall
not be deemed to be a waiver of any existing or previously occurring
noncompliance or breach of any term or condition of this Lease.

    

    30.           Captions.  Captions
used in this Lease have been inserted for convenience and reference only and do
not define or limit the provisions hereof.

    
      
         

      

      
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    31.           Capitalized
Terms.  Capitalized terms not defined herein shall have the
meanings given to them in the respective documents to which their use in context
shall refer or apply.

    

    32.           Governing
Law.  This Lease shall be construed and interpreted in
accordance with the internal laws of the State of North Carolina without giving
effect to the conflict of laws principles thereof.  Exclusive venue
for any dispute arising hereunder shall lie with the North Carolina State
Superior Court in Mecklenburg County, North Carolina.

    

    33.           Attorney
Fees.  If either party shall institute any action against the
other arising under this Lease, the unsuccessful party in such action shall
reimburse and pay to the successful party the amount of reasonable attorneys’
fees and costs incurred by the successful party associated with said
action.

    

    34.           Entire
Agreement.  This Lease constitutes the entire agreement of the
parties and may not be amended, supplemented or modified except by written
agreement duly executed by all parties hereto.

    

    35.           Binding
Effect.  This Lease, as amended from time to time, shall be
binding upon and inure to the benefit of and be enforceable by the respective
heirs, successors and assigns of the parties.

    

    36.           Execution
Counterparts.  This Lease may be executed in multiple
counterparts, which when so executed, each counterpart shall constitute an
original.

    

    37.           Broker Commissions or
Fees.  Landlord is responsible for the prompt payment of any
and all broker commissions or fees associated with this Lease transaction.
Tenant and Landlord each represent that they have had no dealings with any
broker or agent in connection with this Lease other than CB Richard Ellis
representing Landlord and Southeast Commercial Real Estate representing Tenant,
and Landlord and Tenant agree to hold each other harmless from the claims of any
other broker or agent who alleges to have performed services on behalf of
Landlord or Tenant, respectively, in connection with this Lease.

    

    38.           Force
Majeure.  Whenever a period of time is herein prescribed for
action to be taken by either Landlord or Tenant, neither shall be liable or
responsible for, and there shall be excluded from the computation of any such
period of time, any delays due to strikes, riots, Acts of God, war, terrorism,
criminal acts by third parties, or other causes which are beyond the control of
either party.  Notwithstanding the foregoing, Tenant shall be required
to pay rent during any such period of Force Majeure except as otherwise provided
in this Lease, provided that any time period set forth in the Lease that relates
to the abatement of Tenant’s payment of rent shall be computed during any such
period of Force Majeure.

    
      
         

      

      
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    39.           Signage.  Tenant
may, at Tenant’s sole cost and expense, affix Tenant’s signage and logo to the
monument located in front of the Building and the upper portion of the
administrative office area of the Building facing Steele Creek
Road.

    

    40.           Contingency.  The
effectiveness of this Lease shall be contingent upon Tenant obtaining from the
Charlotte-Mecklenburg Utility Department (“CMUD”) a permit authorizing Tenant to
discharge waste water and sewage per Tenant’s needs and in accordance with the
details set forth in Tenant’s discharge application with CMUD and as that
application or permit may be changed from time to time.  In the event
Tenant does not receive such permit by December 15, 2009 (or such extended date
as is mutually agreed upon by Landlord and Tenant in writing), at no fault of
Tenant, then Tenant may terminate this Lease upon providing Landlord written
notice of same, and this Lease shall terminate.  In the event Tenant
so terminates this Lease, Tenant covenants and agrees that it shall diligently
complete, at its sole cost and expense, the upfit of any interior portion of the
Building which has been demolished by Tenant or in which upfit has been
commenced by Tenant.

    

    41.           Zoning.  In
the event that Tenant shall desire to pursue rezoning of that portion of the
Premises zoned I-1 to I-2, Tenant shall be permitted to do so at its sole cost
and expense, and Landlord covenants and agrees to cooperate with Tenant in
obtaining such rezoning.

    

    42.           Landlord’s
Equipment.  On a non-exclusive basis, Landlord hereby leases to
Tenant for the sum of One Dollar ($1.00) that certain JLG four wheel lift (the
“Lift”) during the Term, and Tenant shall maintain, repair and ensure the Lift
at its sole expense.  Tenant shall return the Lift to Landlord in as
good condition as it was in on commencement of this Lease, ordinary wear and
tear accepted.  Notwithstanding the foregoing, Landlord shall have use
of the Lift during the Term to effectuate any of Landlord’s duties under this
Lease.  Additionally, if at any time during the Term Landlord has need
to utilize the Lift away from the Premises for any purpose, Landlord shall be
entitled to remove the Lift from the Premises upon ten (10) days’ written notice
to Tenant for such period of time as Landlord deems necessary, in good faith, to
complete the task for which Landlord requires the Lift.  Landlord
shall return the Lift to the Premises as soon as practicable upon the completion
of said task.

    
      
         

      

      
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    [SIGNATURES
TO APPEAR ON FOLLOWING PAGE]

    

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    IN
WITNESS WHEREOF, the Landlord and Tenant have executed and sealed this
instrument as of the date first above written.

    

    
      	 
      	
              LANDLORD:

            
	 
      	 
      
	 
      	
              FAT
      BOY TRADING COMPANY

            
	 
      	 
      
	 
      	
              By:

            	
              s/s Joseph Hall

            
	 
      	 
      	
              Joseph
      Hall, President

            

    

     

    
      	 
      	
              TENANT:

            
	 
      	 
      
	 
      	
              SCR-TECH,
      LLC

            
	 
      	 
      
	 
      	
              By:

            	
              s/s William J. McMahon

            
	 
      	 
      	
              William
      J. McMahon, President

            

    

    

    This
Lease is signed by CPP International, LLC for the limited purposes of setting
forth its agreement and assent to the terms and intentions set forth in Section
3 above.

    

    
      	 
      	
              CPP
      INTERNATIONAL, LLC

            
	 
      	 
      
	 
      	
              By:

            	
              /s/Clay Presley

            
	 
      	 
      	
              _____________,
      President

            

    

     

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

    EXHIBIT
A

    

    Property
Description

    

    All that
certain tract or parcel of land lying the City of Charlotte, Mecklenburg County,
North Carolina, and being more particularly described as follows:

    

    BEGINNING
at an iron pipe found at the intersection of the easterly right-of-way margin of
Steele Creek Road (currently a 60-foot public right-of-way) and the northerly
right-of-way margin of the 100' Norfolk-Southern Railway right-of-way; thence
running with the easterly right-of-way margin of Steele Creek Road, N 13-45-17 E
451.64 feet to an iron pin found; thence running within the right-of-way of
Steele Creek Road, the following two (2) courses and distances: (1) N 81-23-03 W
30.07 feet to a point located in the centerline of Steele Creek Road and (2)
with the centerline of Steele Creek Road, N 13-46-11 E 20.02 feet to a point;
thence crossing the right-of-way of Steele Creek Road, S 81-22-20 E 472.57 feet
to a point; thence with the arc of a circular curve to the right having a radius
of 745.88 feet, an arc distance of 112.24 feet (Chord Bearing = S 77-03-41 E
112.13 feet) to a point; thence S 72-45-00 E 50.03 feet to a
point; thence with the arc of a circular curve to the left having a radius of
360.00 feet, an arc distance of 54.27 feet (Chord Bearing = S 77-17-15 E 54.22
feet) to an iron pin found (bent); thence S 08-38-27 W 450.21 feet to a railroad
spike found in the norther1y right-of-way margin of the 100' Norfolk-Southern
Railway right-of-way; thence running with the northerly right-of-way margin of
the 100' Norfolk-Southern Railway right-of-way, N 81-21-10 W 699.91 feet to an
iron pipe found at the intersection of the northerly right-of-way margin of the
100' Norfolk-Southern Railway right-of-way and the easterly right-of-way margin
of Steele Creek Road, the POINT AND PLACE OF BEGINNING, containing approximately
7.2928± acres, as shown on that certain plat of survey entitled “ALTA/ACSM Land
Title Survey/11707 Steele Creek Road," prepared by Andrew G. Zoutewelle, PLS,
dated October 27, 2003, and certified on October 30, 2003, reference to which is
hereby made for a more particular description.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
B

    

    CPPI
Portion

    (see
attached)

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      EXHIBIT
C

      

      Table
1

      

      Immediate
Repair and Deferred Maintenance Expenditures

      

      
        
          
            	
                    ITEM

                  	 	
                    DETAIL

                  
	
                    1.  Repair
      cracks in exterior concrete

                  	 	
                    Seal
      cracks from water infiltration and fix several areas of concrete; Landlord
      will repair any structural deficiencies in the concrete paved areas until
      August 31, 2014 in the event of any collapse or sink hole (Tenant is
      responsible for everyday wear and tear)

                  
	
                    2.  Repair
      damaged asphalt

                  	 	 
      
	
                    3.  Refresh
      gravel paving

                  	 	
                    North
      side of building

                  
	
                    4.  Paint
      exterior walls

                  	 	 
      
	
                    5.  Repair
      roof

                  	 	 
      
	
                    6.  Landscape
      drainage areas

                  	 	 
      
	
                    7.  Remove
      some damaged interior warehouse walls

                  	 	
                    Replace
      damaged warehouse walls and repair office/warehouse firewall (but no work
      to be done on office walls)

                  
	
                    8.  Repair
      localized areas of floor slab

                  	 	
                    Only
      in areas specified during previous inspections

                  
	
                    9.  Bring
      HVAC units up to standard condition

                  	 	
                    Landlord
      will maintain the HVAC units at standard condition through a service
      contract until August 31, 2014, at which time they will become Tenant’s
      full responsibility

                  
	
                    10.
      Update parking spaces with code required and accessible spaces, signage
      and curb cuts

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00165-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00165-of-00352.parquet"}]]