Document:

Exhibit 4.1

OMTOOL, LTD.

2007
EQUITY COMPENSATION INCENTIVE PLAN

1.             Purpose and
Eligibility

The purpose of this 2007 Equity Compensation Incentive Plan (the “Plan”) of Omtool, Ltd. is to provide
equity ownership opportunities in the Company (each an “Award”) to employees, officers, directors,
consultants and advisors of the Company and its Subsidiaries, all of whom are
eligible to receive Awards under the Plan. 
Any person to whom an Award has been granted under the Plan is called a “Participant.”  Additional definitions are contained in
Section 12(a).

2.             Administration

a.             Administration
by Committee of Independent Members of the Board of Directors.  The Plan will be administered by a committee
(the “Committee”) composed solely
of members of the Board of Directors of the Company that are “independent,” as
defined pursuant to Rule 10A-3(b)(1) of the Securities Exchange Act of 1934, as
amended, or any amendment, supplement or modification thereto; provided,
however, that at any time and on any one or more occasions the Board may itself
exercise any of the powers and responsibilities assigned the Committee under
the Plan and when so acting shall have the benefit of all of the provisions of
the Plan pertaining to the Committee’s exercise of its authority hereunder.  The Committee, in its sole discretion, shall
have the authority to grant Awards, to adopt, amend and repeal rules relating
to the Plan, to interpret and correct the provisions of the Plan and any Award,
and, subject to the limitations of the Plan, to modify and amend any
Award.  All decisions by the Committee
shall be final and binding on all interested persons.  Neither the Company nor any member of the
Committee shall be liable for any action or determination relating to the Plan.

b.             Delegation to
Executive Officers.  To the extent
permitted by applicable law, the Committee may delegate to one or more
executive officers of the Company the power to grant Awards and exercise such
other powers under the Plan as the Committee may determine; provided, however,
that the Committee shall fix the maximum number of Awards to be granted and the
maximum number of shares issuable to any one Participant pursuant to Awards
granted by such executive officer or officers. 
The Committee may, by a resolution adopted by the Committee, authorize
one or more executive officers of the Company to do one or both of the
following: (i) designate employees of the Company or of any of its Subsidiaries
to be recipients of Awards and (ii) determine the number, type and terms of
such Awards to be received by such employees, subject to the limitations of the
Plan; provided, however, that, in each case, the resolution so authorizing such
officer or officers shall specify the maximum number and type of Awards such
officer or officers may so award.  The
Committee may not authorize an officer to designate himself or herself as a
recipient of any such Awards or to grant Awards to other executive officers of
the Company.

3.             Stock Available
for Awards

a.             Number of Shares.  Subject to adjustment under
Section 3(c), the aggregate number of shares (the “Authorized Shares”) of the Company’s
common stock, $0.01 par value per share (the “Common
Stock”), that may be issued pursuant to the Plan shall be 500,000
shares 

of
Common Stock.  If any Award expires, is
terminated, surrendered or forfeited, expires unexercised, is settled in cash
in lieu of Common Stock or is exchanged for other Awards, in whole or in part,
the unissued Common Stock covered by such Award shall again be available for
the grant of Awards under the Plan. Shares issued under the Plan may consist in
whole or in part of authorized but unissued shares or of shares held in
treasury.  Notwithstanding anything to
the contrary in this Plan, the foregoing limitation shall be subject to adjustment
under Section 3(c), but only to the extent that such adjustment will not
affect the status of any Award intended to qualify as “performance-based
compensation” under Section 162(m) of the Code.

b.             Per-Participant
Limit.  Subject to adjustment under
Section 3(c), no Participant may be granted stock-based Awards during any
one fiscal year to purchase more than 450,000 shares of Common Stock.

c.             Adjustment to
Common Stock.  In the event of any
stock split, stock dividend, extraordinary cash dividend, recapitalization,
reorganization, merger, consolidation, combination, exchange of shares,
liquidation, spin-off, split-up, or other similar change in capitalization or
event, (i) the number and class of securities available for Awards under
the Plan and the per-Participant share limit, (ii) the number and class of
securities, vesting schedule and exercise price per share subject to each
outstanding stock-based Award, (iii) the repurchase price per security
subject to repurchase, and (iv) the terms of each other outstanding
stock-based Award shall be adjusted by the Company (or substituted Awards may
be made) to the extent the Committee shall determine, in good faith, that such
an adjustment (or substitution) is appropriate. If Section 10(f)(i) applies for
any event, this Section 3(c) shall not be applicable.  In the event of any extraordinary cash
dividend or other distribution of assets to stockholders other than a normal
cash dividend, the Board of Directors shall have the discretion to distribute
cash to holders of outstanding Awards in lieu of making equitable adjustments.

d.             Fractional
Shares.  No fractional shares shall
be issued under the Plan and the Participant shall, at the Committee’s
discretion, receive either cash in lieu of such fractional shares or a full
share for each fractional share.

4.             Stock Options

a.             General.  The Committee may grant options to purchase
Common Stock (each, an “Option”)
and determine the terms and conditions of each Option, including, but not
limited to (i) the number of shares subject to such Option or a formula
for determining such, (ii) subject to Section 4(e) hereof, the
exercise price of the Options and the means of payment for the shares,
(iii) the Performance Criteria (as defined in Section 10(d)), if any, and
level of achievement of such Performance Criteria that shall determine the
number of shares or Options granted, issued, retainable and/or vested,
(iv) the terms and conditions of the grant, issuance and/or forfeiture of
the shares or Options, and (v) such further terms and conditions as may be
determined from time to time by the Committee, in each case not inconsistent
with this Plan.

b.             Incentive Stock
Options.  An Option that the
Committee intends to be an “incentive stock option” as defined in
Section 422 of the Code (an “Incentive
Stock Option”) shall be granted only to employees of the Company and
shall be subject to and shall be construed consistently with the requirements
of Section 422 of the Code.  The
Committee and the 

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Company
shall have no liability if an Option or any part thereof that is intended to be
an Incentive Stock Option does not qualify as such.

c.             Nonstatutory
Stock Options.  An Option or any part
thereof that does not qualify as an Incentive Stock Option is referred to
herein as a “Nonstatutory Stock Option.”

d.             Dollar
Limitation.  For so long as the Code
shall so provide, Options granted to any employee under the Plan (and any other
plans of the Company) which are intended to constitute Incentive Stock Options
shall not constitute Incentive Stock Options to the extent that such Options,
in the aggregate, become exercisable for the first time in any one calendar
year for shares of Common Stock with an aggregate Fair Market Value (as defined
in Section 12 and determined as of the respective date or dates of grant)
of more than $100,000 (or such other limit as may be provided by the
Code).  To the extent that any such
Incentive Stock Options exceed the $100,000 limitation (or such other limit as
may be provided by the Code), such Options shall be Nonstatutory Stock Options.

e.             Exercise Price.  The Committee shall establish the exercise
price (or determine the method by which the exercise price shall be
established) at the time each Option is granted and specify the exercise price
in the applicable Option agreement; provided, that the exercise price per share
specified in the agreement relating to each Option granted under the Plan shall
not be less than the Fair Market Value per share of Common Stock on the date of
such grant.  In the case of an Incentive
Stock Option to be granted to an employee owning stock possessing more than ten
percent (10%) of the total combined voting power of all classes of stock
of the Company, the price per share specified in the agreement relating to such
Incentive Stock Option shall not be less than one hundred ten percent
(110%) of the Fair Market Value per share of Common Stock on the date of
grant (or such other limit as may be provided by the Code). For purposes of
determining stock ownership under this subsection, the rules of
Section 424(d) of the Code shall apply. 
Subject to Section 3(c), an Option may not be amended subsequent to its
issuance to reduce the price at which it is exercisable unless such amendment
is approved by the Company’s shareholders.

f.              Duration of Options.  Each Option shall be exercisable at such
times and subject to such terms, conditions and expiration as the Committee may
specify in the applicable Option agreement; provided, that no Option shall be
exercisable for a period of time greater than ten (10) years from the date
of grant of such Option;  provided,
further, that Incentive Stock Options granted to an employee owning stock
possessing more than ten percent (10%) of the total combined voting power
of all classes of stock of the Company shall be exercisable for a maximum of
five (5) years from the date of grant of such Option (or such other limit as
may be provided by the Code).  For
purposes of determining stock ownership under this subsection, the rules of
Section 424(d) of the Code shall apply.

g.             Vesting of
Options.  Subject to Section 10(f)
and Section 10(i), at the time of the grant of an Option, the Committee shall
establish a vesting date or vesting dates with respect to the shares of Common
Stock covered by such Options.  The
Committee may establish vesting dates based upon the passage of time and/or the
satisfaction of Performance Criteria or other conditions as deemed appropriate
by the Committee.

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h.             Exercise of
Option.  Options may be exercised
only by delivery to the Company at its principal office address or to such
transfer agent as the Company shall designate of a written notice of exercise
specifying the number of shares as to which such Option is being exercised,
signed by the proper person, or by notification of the Company-designated third
party commercial provider (the “Third Party
Commercial Provider”), in accordance with the procedures approved by
the Company and to which the holder of the Option shall have ongoing access by
means of accessing such person’s account maintained with the Third Party
Commercial Provider, together with payment in full as specified in
Section 4(i) for the number of shares for which the Option is exercised.

i.              Payment Upon
Exercise.  Common Stock purchased
upon the exercise of an Option shall be paid for by one or any combination of
the following forms of payment:

(i)            in United States dollars in cash or
by check payable to order of the Company or by funds transfer from the Option
holder’s account maintained with the Third Party Commercial Provider;

(ii)           at the discretion of the Committee,
through delivery of shares of Common Stock having a Fair Market Value equal as
of the date of the exercise to the cash exercise price of the Option,  provided, that such shares were not
acquired by the Participant in the prior six months;

(iii)          at the discretion of the Committee and
consistent with applicable law, through the delivery of an assignment to the
Company of a sufficient amount of the proceeds from the sale of the Common
Stock acquired upon exercise of the Option and an authorization to the Third
Party Commercial Provider to pay that amount to the Company, which sale shall
be at the Participant’s direction at the time of exercise; or

(iv)          at the discretion of the Committee, by
any combination of (i), (ii), or (iii) above.

If the Committee exercises its discretion to permit
payment of the exercise price of an Incentive Stock Option by means of the
methods set forth in clauses (ii), (iii) or (iv) of the preceding
sentence, such discretion shall be exercised in writing in the instrument
evidencing the Award of the Incentive Stock Option.

j.              Notice to
Company of Disqualifying Disposition. 
By accepting an Incentive Stock Option granted under the Plan, each
optionee agrees to notify the Company in writing immediately after such
optionee makes a disqualifying disposition of any stock acquired pursuant to
the exercise of the Incentive Stock Options. 
A “disqualifying disposition” is generally any disposition occurring on
or before the later of (a) the date two years following the date the
Incentive Stock Option was granted or (b) the date one year following the
date the Incentive Stock Option was exercised.

k.             Issuances of
Securities.  Except as provided in
Section 3(c) or as otherwise expressly provided herein, no issuance by the
Company of shares of stock of any class, or securities convertible into shares
of stock of any class, shall affect, and no adjustment by reason 

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thereof
shall be made with respect to, the number or price of shares subject to
Options.  Except as provided in Section
3(c), no adjustments shall be made for dividends paid in cash or in property
other than securities of the Company.

5.             Stock
Appreciation Rights

a.             General.  A Stock Appreciation Right (a “SAR”) is an Award entitling the holder,
upon exercise, to receive an amount in cash or Common Stock, or a combination
thereof (such form to be determined by the Committee), determined solely by
reference to appreciation, from and after the date of grant, in the Fair Market
Value of a share of Common Stock.  The
date as of which such appreciation or other measure is determined shall be the
exercise date of the SAR Award.

b.             Grants.  SARs may be granted in tandem with, or
independently of, Options granted under the Plan.

(i)            Tandem Awards.  When
SARs are expressly granted in tandem with Options: (i) the SARs will be
exercisable only at such time or times, and to the extent, that the related
Option is exercisable, and will be exercisable in accordance with the procedure
required for exercise of the related Option; (ii) the SARs will terminate
and no longer be exercisable upon the termination or exercise of the related
Option except that a SAR granted with respect to less than the full number of
shares covered by an Option will not be terminated until and only to the extent
that the number of shares as to which the related Option has been exercised or
has terminated exceeds the number of shares not covered by the SAR;
(iii) the Option will terminate and no longer be exercisable upon the
exercise of the related SAR; and (iv) the SAR will be transferable only
with the related Option.

(ii)           Independent Stock Appreciation Rights.  A SAR not expressly granted in tandem with an
Option will become exercisable at such time or times, and on such conditions,
as the Committee may specify in the SAR Award.

c.             Terms
and Conditions.  The Committee shall
determine all terms and conditions of a SAR Award, including, but not limited
to (i) the number of shares subject to such SAR Award or a formula for
determining such, (ii) the Performance Criteria, if any, and level of
achievement of such Performance Criteria that shall determine the number of
shares granted, issued, retainable and/or vested or the amount of cash payable,
(iii) the terms and conditions of the grant, issuance and/or forfeiture of
the shares, and (iv) such further terms and conditions as may be
determined from time to time by the Committee, in each case not inconsistent
with this Plan.

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d.             Vesting of SAR
Awards.  Subject to Section 10(f) and
Section 10(i), at the time of the grant of a SAR Award, the Committee shall
establish a vesting date or vesting dates with respect to such SAR Award,
provided that SARs awarded in tandem with Options shall be subject to the same
vesting date or vesting dates established by the Committee pursuant to
Section 4(g) for such related Options and shall be exercisable only to the
extent that such related Option shall then be exercisable.  The Committee may establish vesting dates
based upon the passage of time and/or the satisfaction of Performance Criteria
or other conditions as deemed appropriate by the Committee.

6.             Restricted Stock

a.             Grants.  The Committee may grant Awards entitling
recipients to acquire shares of Common Stock, subject to (i) delivery to
the Company by the Participant of cash, a check or other sufficient legal
consideration in an amount at least equal to the par value of the shares
purchased, (ii) the right of the Company to repurchase or reacquire all or
part of such shares at their issue price or other stated or formula price from
the Participant in the event that conditions specified by the Committee in the
applicable Award are not satisfied prior to the end of the applicable
restriction period or periods established by the Committee for such Award
(each, a “Restricted Stock Award”),
and (iii) Section 6(b).

b.             Terms
and Conditions.  A Participant that
is the holder of a Restricted Stock Award, whether vested or unvested, shall be
entitled to enjoy all shareholder rights with respect to the shares of Common
Stock underlying such Restricted Stock Award, including the right to receive
dividends and vote such shares. Subject to Section 6(c), the Committee
shall determine all terms and conditions of any such Restricted Stock Award,
including, but not limited to (i) the number of shares subject to such
Restricted Stock Award or a formula for determining such, (ii) the
purchase price of the shares, if any, and the means of payment for the shares,
(iii) the Performance Criteria, if any, and level of achievement of such
Performance Criteria that shall determine the number of shares granted, issued,
retainable and/or vested, (iv) the terms and conditions on the grant,
issuance and/or forfeiture of the shares, and (v) such further terms and
conditions as may be determined from time to time by the Committee, in each
case not inconsistent with this Plan. At the Committee’s election, shares of
Common Stock issued in respect of a Restricted Stock Award may be (i) held
in book entry form subject to the Company’s instructions until any restrictions
relating to the Restricted Stock Award lapses, or (ii) evidenced by a
stock certificate that may bear a legend indicating that the ownership of the
shares of Common Stock represented by such certificate is subject to the
restrictions, terms and conditions of this Plan and the Restricted Stock
Award.  Any stock certificates issued in
respect of a Restricted Stock Award shall be registered in the name of the
Participant.  All certificates registered
in the name of the Participant shall, unless otherwise determined by the
Committee, be deposited by the Participant, together with a stock power
endorsed in blank, with the Company (or its designee).  After the expiration of the applicable
restriction periods, the Company (or such designee) shall deliver the
certificates no longer subject to such restrictions to the Participant or, if
the Participant has died, to the beneficiary designated by the Participant, in
a manner determined by the Committee, to receive amounts due or exercise rights
of the Participant in the event of the Participant’s death (the “Designated Beneficiary”).  In the absence of an effective designation by
a Participant, Designated Beneficiary shall mean the Participant’s estate.

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c.             Vesting of
Restricted Stock.  Subject to Section
10(f) and Section 10(i), at the time of the grant of a Restricted Stock Award,
the Committee shall establish a vesting date or vesting dates with respect to
the shares of Common Stock covered by such Restricted Stock Award, which
vesting dates may be based upon the passage of time and/or the satisfaction of
Performance Criteria or other conditions as deemed appropriate by the
Committee.

7.             Restricted Stock
Unit

a.             Grants.  The Committee may grant Awards entitling
recipients to acquire shares of Common Stock in the future, with the future
delivery of the Common Stock subject to a risk of forfeiture or other
restrictions that will lapse upon the satisfaction of one or more specified conditions
(each, a “Restricted Stock Unit”).

b.             Terms and
Conditions.  Subject to
Section 7(c), the Committee shall determine all terms and conditions of
any such Restricted Stock Unit, including, but not limited to (i) the
number of shares subject to such Restricted Stock Unit or a formula for
determining such, (ii) the purchase price of the shares, if any, and the
means of payment for the shares, (iii) the Performance Criteria, if any,
and level of achievement of such Performance Criteria that shall determine the
number of shares granted, issued, retainable and/or vested, (iv) the terms
and conditions on the grant, issuance and/or forfeiture of the shares, and
(v) such further terms and conditions as may be determined from time to
time by the Committee, in each case not inconsistent with this Plan.  A Participant shall not be entitled to any
shareholder rights with respect to any Restricted Stock Unit, and may not vote
the shares represented by a Restricted Stock Unit or, subject to Section 3(c),
receive dividends with respect to the shares represented by the Restricted
Stock Unit. A Restricted Stock Unit may be settled in cash or Common Stock, as
determined by the Committee, with the amount of the cash payment based on the
Fair Market Value of the shares of Common Stock at the time of vesting.  Any such settlements may be subject to such
conditions, restrictions and contingencies as the Committee shall establish.

c.             Vesting of
Restricted Stock Unit.  Subject to
Section 10(f) and Section 10(j), at the time of the grant of a Restricted Stock
Unit, the Committee shall establish a vesting date or vesting dates with
respect to the shares of Common Stock covered by such Restricted Stock Unit,
which vesting dates may be based upon the passage of time and/or the satisfaction
of Performance Criteria or other conditions as deemed appropriate by the
Committee.

8.             Phantom Stock

a.             General.  The Committee may grant Awards entitling
recipients to receive, in cash or shares, the Fair Market Value of shares of
Common Stock (“Phantom Stock”)
upon the satisfaction of one or more specified conditions.

b.             Terms and
Conditions.  Subject to
Section 8(c), the Committee shall determine the terms and conditions of a
Phantom Stock Award, including, but not limited to (i) the number of shares
subject to or represented by such Phantom Stock Award or a formula for
determining such, (ii) the purchase price of the shares, if any, and the
means of payment for the shares, (iii) the Performance Criteria, if any,
and level of achievement of such Performance Criteria that shall determine the
number of shares granted, issued, retainable and/or vested or the amount of 

 7
 

cash
payable, (iv) the terms and conditions on the grant, issuance and/or
forfeiture of the shares or Phantom Stock Award, and (v) such further
terms and conditions as may be determined from time to time by the Committee,
in each case not inconsistent with this Plan. 
A Participant shall not be entitled to any shareholder rights with
respect to any Phantom Stock Award, and may not vote the shares represented by
a Phantom Stock Award or, subject to Section 3(c), receive dividends with
respect to the shares represented by the Phantom Stock Award.  Any settlements of Phantom Stock Awards may
be subject to such conditions, restrictions and contingencies as the Committee
shall establish.

c.             Vesting of
Phantom Stock.  Subject to Section
10(f) and Section 10(i), at the time of the grant of a Phantom Stock Award, the
Committee shall establish a vesting date or vesting dates with respect to such Phantom
Stock Award.  The Committee may establish
vesting dates based upon the passage of time and/or the satisfaction of
Performance Criteria or other conditions as deemed appropriate by the
Committee.

9.             Other
Stock-Based Awards

The Committee shall have the right to grant other Awards based upon the
Common Stock and having such terms and conditions as the Committee may
determine, including, without limitation, the grant of shares based upon
certain conditions and/or Performance Criteria, the grant of securities
convertible into Common Stock and the grant of stock units.  The Committee shall determine the terms and
conditions of any such Awards, including, but not limited to (i) the
number of shares subject to such Award or a formula for determining such, (ii) the
purchase price of the shares, if any, and the means of payment for the shares,
(iii) the Performance Criteria, if any, and level of achievement of such
Performance Criteria that shall determine the number of shares granted, issued,
retainable and/or vested, (iv) the terms and conditions on the grant,
issuance and/or forfeiture of the shares or Award, and (v) such further
terms and conditions as may be determined from time to time by the Committee,
in each case not inconsistent with this Plan. Subject to Section 10(f) and
Section 10(i), at the time of the grant of an Award under this Section 9,
the Committee shall establish a vesting date or vesting dates with respect to
such Award, which vesting date may be based upon the passage of time and/or the
satisfaction of Performance Criteria or other conditions as deemed appropriate
by the Committee.

10.           General
Provisions Applicable to Awards

a.             Transferability
of Awards.  Except as the Committee
may otherwise determine or provide in an Award, Awards shall not be sold,
assigned, transferred, pledged or otherwise encumbered by the person to whom
they are granted, either voluntarily or by operation of law, except by will or
the laws of descent and distribution, and, during the life of the Participant,
shall be exercisable only by the Participant, provided, however, that
Nonstatutory Stock Options may be transferred to a grantor-retained annuity
trust or a similar estate-planning vehicle in which the trust is bound by all
provisions of the Option which are applicable to the Participant.  References to a Participant, to the extent
relevant in the context, shall include references to authorized transferees of
such an Option.

b.             Documentation.  Each Award granted under the Plan shall be
evidenced by a 

 8
 

written
Award agreement in such form as the Committee shall from time to time
approve.  Award agreements shall comply
with the terms and conditions of the Plan and may contain such other provisions
not inconsistent with the terms and conditions of the Plan as the Committee
shall deem advisable.  In the case of an
Incentive Stock Option, the Award agreement shall contain, or refer to, such
provisions relating to exercise and other matters as are required of “incentive
stock options” under the Code.  Award
agreements may be evidenced by an electronic transmission (including an e-mail
or reference to a website or other URL) sent to the Participant through the
Company’s normal process for communicating electronically with its
employees.  As a condition to receiving
an Award, the Committee may require the Participant to affirmatively accept the
Award and agree to the terms and conditions set forth in the Award agreement by
physically and/or electronically executing the Award agreement or by otherwise
physically and/or electronically acknowledging such acceptance and
agreement.  With or without such
affirmative acceptance, however, the Committee may prescribe conditions
(including the exercise or attempted exercise of any benefit conferred by the
Award) under which the proposed Participant may be deemed to have accepted the
Award and agreed to the terms and conditions set forth in the Award agreement.

c.             Committee
Discretion.  The terms of each type
of Award need not be identical, and the Committee need not treat Participants
uniformly.

d.             Performance
Criteria.  For purposes of this Plan,
the term “Performance Criteria” shall mean such performance measures as may be
established at any time and on one or more occasions by the Committee,  applied to either the Company as a whole or
to a division, business unit or Subsidiary, and measured either annually or
cumulatively over a period of years or over a shorter or longer periodic basis
(such as quarterly), on an absolute basis or relative to a pre-established
target, to previous years’ results or to a designated comparison group, in each
case as specified by the Committee  The
Committee’s determination of the achievement of any Performance Criteria shall
be conclusive.

e.             Termination of
Status.  Except as otherwise
specified herein, the Committee shall determine the effect on an Award of the
disability, death, retirement, authorized leave of absence or other change in
the employment or other status of a Participant and the extent to which, and
the period during which, the Participant, or the Participant’s legal
representative, conservator, guardian or Designated Beneficiary, may exercise
rights under the Award under such circumstances, subject to applicable law and
the provisions of the Code.

f.              Acquisition or
Liquidation of the Company.

(i)            Consequences of an Acquisition.  If the Company is to be consolidated with or
acquired by another entity in a merger or other reorganization in which the
holders of the outstanding voting stock of the Company immediately preceding
the consummation of such event shall, immediately following such event, hold,
as a group, less than a majority of the voting securities of the surviving or
successor entity or its ultimate parent, or a sale of all or substantially all
of the Company’s assets (each, an “Acquisition”),
the Committee or the board of directors of any entity assuming the obligations
of the Company hereunder (the “Successor
Committee”), shall, as to outstanding Awards, either (A) make
appropriate provision for the continuation of such Awards by substituting on an
equitable basis for the shares then subject to 

 9
 

such Awards either
(1) the consideration payable with respect to the outstanding shares of
Common Stock in connection with the Acquisition, (2) shares of stock of
the surviving or successor corporation or (3) such other securities as the
Committee or the Successor Committee deems appropriate, the Fair Market Value
of which shall not materially exceed the Fair Market Value of the shares of
Common Stock subject to such Awards immediately preceding the Acquisition; or
(B) upon written notice to the Participants, provide that all Awards must
be exercised, to the extent then exercisable or to be exercisable as a result
of the Acquisition, within a specified number of days of the date of such notice,
at the end of which period the Awards shall terminate; or (C) terminate
all Awards in exchange for a cash payment equal to the excess, if any, of the
Fair Market Value of the shares subject to such Awards (to the extent then
exercisable or to be exercisable as a result of the Acquisition) over the
exercise price thereof, if any; or (D) in the case of Awards that may be
settled in whole or in part in cash, provide for equitable treatment of such
Awards.

(ii)           Substitution of Awards Upon Certain Events.  In connection with a merger or consolidation
of an entity with the Company or the acquisition by the Company of property or
stock of an entity, the Committee may grant Awards under the Plan in
substitution for stock and stock-based awards issued by such entity or an
affiliate thereof.  The substitute Awards
shall be granted on such terms and conditions as the Committee considers
appropriate in the circumstances.

(iii)          Liquidation or Dissolution. 
In the event of the proposed liquidation or dissolution of the Company,
each Award, to the extent not then exercised or vested, will terminate
immediately prior to the consummation of such proposed action or at such other
time and subject to such other conditions as shall be determined by the
Committee.

(iv)          Withholding.  Each
Participant shall pay to the Company, or make provisions satisfactory to the
Company for payment, of any taxes required by law to be withheld in connection
with Awards to such Participant no later than the date of the event creating
the tax withholding obligation.  The
Committee may allow Participants to satisfy such tax withholding obligations in
whole or in part by transferring shares of Common Stock, including shares
retained from the Award creating the tax obligation, valued at their Fair
Market Value.  The Company may, to the
extent permitted by law, deduct any such tax obligations from any payment of
any kind otherwise due to a Participant.

g.             Amendment of
Awards.  The Committee may amend,
modify or terminate any outstanding Award including, but not limited to,
substituting therefore another Award of the same or a different type, changing
the date of exercise or realization, the vesting provisions (subject to the
minimum vesting requirements set forth herein), Performance Criteria, or level
of achievement of Performance Criteria, and converting an Incentive Stock
Option to a Nonstatutory Stock Option; provided that, except as otherwise
provided in Section 10(f)(i), the Participant’s consent to such action shall be
required unless the Committee determines that the action, taking into account
any related action, would not materially and adversely affect the Participant;
provided, further, that subject to Section 3(c), an Option may not be
amended subsequent to its issuance either to reduce the price at which such
previously issued Option is exercisable or to extend the period of time for
which such previously-issued Option shall be exercisable beyond ten
(10) years unless such amendment is approved by the Company’s 

 10
 

shareholders.  Furthermore, no Option shall be canceled and
replaced with Options having a lower exercise price unless such cancellation
and exchange is approved by the Company’s shareholders.

h.             Conditions on
Delivery of Stock.  The Company will
not be obligated to deliver any shares of Common Stock pursuant to the Plan or
to remove restrictions from shares previously delivered under the Plan until
(i) all conditions of the Award have been met or removed to the
satisfaction of the Company, (ii) in the opinion of the Company’s counsel,
all other legal matters in connection with the issuance and delivery of such
shares have been satisfied, including any applicable securities laws and any
applicable stock exchange or stock market rules and regulations, (iii) the
Participant has executed and delivered to the Company such representations or
agreements as the Company may consider appropriate to satisfy the requirements
of any applicable laws, rules or regulations, and (iv) the Participant has
paid to the Company, or made provisions satisfactory to the Company for payment
of, any taxes required by law to be withheld in connection with the Award.

i.              Acceleration.  The Committee may at any time provide
(i) that any Option shall become immediately exercisable in full or in
part, (ii) that Awards that may be settled in whole or in part in cash may
become immediately exercisable in full or in part, and (iii) in connection
with the disability, death or retirement of a Participant or in connection with
an event contemplated by Section 10(f)(i), (A) that any Restricted
Stock Award or Restricted Stock Unit shall become exercisable in full or in
part or shall be free of some or all restrictions or the risk of forfeiture or
(B) that any other Full Value Award shall become exercisable in full or in
part or free of some or all restrictions or conditions, or otherwise realizable
in full or in part, as the case may be. 
The Committee may take the actions contemplated by the preceding
sentence despite the fact that such actions may (x) cause the application
of Sections 280G and 4999 of the Code if an event contemplated by
Section 10(f)(i) occurs, or (y) disqualify all or part of an Option
as an Incentive Stock Option. In the event of the acceleration of the
exercisability of one or more outstanding Options, including pursuant to
Section 11(f)(i), the Committee may provide, as a condition of accelerated
exercisability of any or all such Options, that the Common Stock or other
substituted consideration, including cash, as to which exercisability has been
accelerated shall be restricted and subject to forfeiture back to the Company
at the election of the Company at the cost thereof upon termination of
employment or other relationship, with the timing and other terms of the
vesting of such restricted Common Stock or other consideration being not less
favorable to the Participant than the timing and other terms of the superseded
vesting schedule of the related Option.

j.              Option or SAR
Award Exchange.  The Committee may,
from time to time, upon obtaining shareholder approval therefor, undertake an
exchange program under which employees deemed eligible by the Committee may
elect to surrender for cancellation then existing Awards under the Plan or
outstanding, unexercised options previously granted under the Company’s 1997
Stock Option Plan or 1997 Stock Plan, that have, at the time, an exercise price
at or above a level determined by the Board of Directors or the Committee in
exchange for cash and/or another Award under the Plan, the form of such
consideration to be determined by the Committee.

k.             Compliance with
Section 409A.  Any other
provision of the Plan or any Award to the contrary notwithstanding, the Plan
and every Award hereunder shall be construed, 

 11
 

administered
and enforced as necessary to comply with applicable requirements of
Section 409A of the Code and the Treasury and IRS rulings and regulations
issued thereunder, so that no Participant shall (without such Participant’s
express written consent) incur any of the additional tax or interest
liabilities of Section 409A(a)(B) of the Code with respect to any
Award.  The Plan and each Award are
hereby modified and limited as necessary to comply with applicable requirements
of Section 409A.

11.           Foreign
Jurisdictions

To the extent that the Committee determines that the material terms set
by the Committee or imposed by the Plan preclude the achievement of the
material purposes of the Plan in jurisdictions outside the United States, the
Committee will have the authority and discretion to modify those terms and
provide for such other terms and conditions as the Committee determines to be
necessary, appropriate or desirable to accommodate differences in local law,
policy or custom or to facilitate administration of the Plan.  The Committee may adopt or approve sub-plans,
appendices or supplements to, or amendments, restatements or alternative
versions of, the Plan as it may consider necessary, appropriate or desirable
for such purpose, without thereby affecting the terms of the Plan as in effect
for any other purpose.  The special terms
and any appendices, supplements, amendments, restatements or alternative
versions, however, shall not include any provisions that are inconsistent with
the terms of the Plan as then in effect, unless the Plan could have been
amended to eliminate such inconsistency without further approval by the
shareholders.  The Committee shall also
have the authority and discretion to delegate the foregoing powers to
appropriate officers of the Company.

12.           Miscellaneous

a.             Definitions.

(i)            “Company”
for purposes of eligibility under the Plan, shall include Omtool, Ltd. and any
present or future subsidiary corporations of Omtool, Ltd., as defined in
Section 424(f) of the Code (a “
Subsidiary “), and any present or future parent corporation of
Omtool, Ltd., as defined in Section 424(e) of the Code. For purposes of
Awards other than Incentive Stock Options, the term “Company” shall include any other entity in which the Company
has a direct or indirect significant interest, as determined by the Committee
in its sole discretion.

(ii)           “Code”
means the Internal Revenue Code of 1986, as amended, and any regulations
promulgated thereunder.

(iii)          “Employee”
for purposes of eligibility under the Plan shall include a person to whom an
offer of employment has been extended by the Company and who has actually
commenced employment with the Company, whether full or part-time status.

(iv)          “Fair
Market Value” of the Company’s Common Stock on any date means
(i) the last reported sale price (on that date) of the Common Stock on The
NASDAQ Capital Market (the “Nasdaq”)
or the national securities exchange on which the Common Stock is then 

 12
 

traded; or (ii) the
average of the closing bid and asked prices last quoted (on that date) by an
established quotation service for over-the-counter securities, if the Common
Stock is not then traded on a national securities exchange or on the Nasdaq; or
(iii) if the Common Stock is not publicly traded, the fair market value of
the Common Stock as determined by the Committee after taking into consideration
all factors which it deems appropriate, including, without limitation, recent
sale and offer prices of the Common Stock in private transactions negotiated at
arm’s length;  provided, that, in all events the
Fair Market Value shall represent the Committee’s good faith determination of
the fair market value of the Common Stock. The Committee’s determination shall
be conclusive as to the Fair Market Value of the Common Stock.

(v)           “Full
Value Awards” means Restricted Stock, Restricted Stock Units and
Awards other than (a) Options or (b) SARs or (c) other
stock-based Awards for which the Participant pays the intrinsic value (whether
directly or by forgoing a right to receive a cash payment from the Company).

b.             Legal
Consideration for Issuance of Shares. 
Unless otherwise determined by the Committee, in the case of Awards of
Restricted Stock, Restricted Stock Units, or Awards that are settled in whole
or in part with shares of Common Stock, to the extent such Awards do not
otherwise require the payment by the Participant of cash consideration that
exceeds the par value of the shares of Common Stock received in connection
therewith, the services rendered or to be rendered by the Participant shall
satisfy the legal requirement of payment of par value for such shares of Common
Stock.

c.             No Right To
Employment or Other Status.  No
person shall have any claim or right to be granted an Award, and the grant of
an Award shall not be construed as giving a Participant the right to continued
employment or any other relationship with the Company.  The Company expressly reserves the right at
any time to dismiss or otherwise terminate its relationship with a Participant
free from any liability or claim under the Plan.

d.             No Rights As
Shareholder.  Subject to the
provisions of the applicable Award, no Participant or Designated Beneficiary
shall have any rights as a shareholder with respect to any shares of Common
Stock to be distributed with respect to an Award until becoming the record
holder thereof.

e.             Effective Date
and Term of Plan.  The Plan shall
become effective on the date on which it is approved by the shareholders of the
Company (the “Effective Date”).  No
Awards shall be granted under the Plan after the completion of ten
(10) years from the Effective Date, but Awards previously granted may
extend beyond that date.

f.              Amendment of
Plan.  The Committee may amend this
Plan at any time, provided that any material amendment to the Plan will not be
effective unless approved by the Company’s shareholders. For this purpose, a
material amendment is any amendment that would (i) other than pursuant to
Section 3(c), materially increase either the aggregate number of shares of
Common Stock available for issuance under the Plan or the maximum number of
shares of Common Stock issuable in one fiscal year to a Participant;
(ii) expand or limit the class of persons eligible to receive Awards or
otherwise participate in the Plan; (iii) subject to Section 3(c),
reduce the price at which a previously-issued Option is exercisable or extend
the period of time for which a 

 13
 

previously-issued
Option shall be exercisable beyond ten (10) years; (iv) subject to
Section 10(f) and Section 10(i), amend the minimum vesting provisions of Full
Value Awards; or (v) require shareholder approval pursuant to the requirements
of the Nasdaq and/or any other exchange or quotation service on which the
Company is then listed or pursuant to applicable law.

g.             Governing Law.  The provisions of the Plan and all Awards
made hereunder shall be governed by and interpreted in accordance with the laws
of The Commonwealth of Massachusetts, exclusive of reference to rules and
principles of conflicts of law.

 14ex101.htm

    Exhibit
      10.1

    

    

    May
      8,
      2007

    

    Mr.
      Rob
      Howe

    1227
      Whispering Oaks Drive

    DeSoto,
      TX  75115

    

    Dear
      Rob:

    

    eTelcharge,
      Inc. (the “Company”) is pleased to offer you the position of President and Chief
      Executive Officer (CEO).  Your primary duties, including, but not
      limited to, will be to develop primary goals, operating plans, policies, and
      short and long range objectives for the Company.  Oversee the design,
      marketing, promotion, delivery and quality of products and
      services.  Plan and direct all aspects of the Company’s operational
      policies, objectives and initiatives.  Direct the development of the
      Company to ensure future growth. Represent the Company to the financial
      community, major customers and shareholders as needed.  The following
      sets forth the terms and conditions of your employment, which shall be binding
      upon the parties hereto:

    

    1.
      Salary.  Your salary will be $2,083.33 per semi-monthly pay
      period ($50,000.00 annualized), subject to payroll withholding and
      deductions.  You are eligible for pay increases from time to time as
      the Board of Directors deems appropriate.  As a salaried employee, you
      will be categorized as “exempt,” which means you will not be eligible to receive
      over-time pay.

    

    2.  Board
      Seat.  You will be granted a seat on the eTelcharge, Inc.
      Board of Directors with all rights and privileges which appertain
      thereto.

    

    3.
      Stock and Options.  In accordance with the wishes of the
      eTelcharge Board of Directors, and subject to compliance with applicable
      securities laws, as an incentive to accept employment, you will be granted
      options to purchase Company stock as follows:

    

    10,000,000
      options at the per share price of  $0.011 (one share per option)
      vesting immediately upon the signing of this agreement, and 10,000,000 options
      (one share per option) vesting 1,000,000 shares per month, the vesting period
      beginning on the first day of your employment at the price per share
      of  $0.011.  You will have 36 months from the vesting date
      in which to exercise these options.  After 36 months, the unexercised
      options will expire at the same rate at which they were earned.

    

    One
      hundred percent (100%) of all granted options will immediately vest upon a
      Corporate Transaction within the first year of your employment.  One
      Hundred percent (100%) of any additional options will immediately vest upon
      a
      Corporate Transaction after the first year of your employment.  A
“Corporate Transaction,” as used herein shall mean any (i) a merger or
      acquisition in which the Company is not the surviving entity, except for a
      transaction the principal purpose of which is to change the state in which
      the
      Company is incorporated; (ii) the sale, transfer or other disposition of all
      or
      substantially all of the assets of the Company whether through a single
      transaction or a series of transactions; or (iii) or any reverse merger in
      which
      the Company is the surviving entity but in which fifty percent (50%) or more
      of
      the Company’s outstanding voting stock is transferred to holders different from
      those who held the stock immediately prior to such merger.

    

    4. Executive
      Bonus Plan. It is the Company's intention to establish an executive
      bonus plan.  Equitable participation in the executive bonus plan(s)
      will be provided when such plans are adopted by the Company and approved by
      the
      Board of Directors.

    

    5.
      Vacation / Holidays. You shall be eligible for Vacation and Holiday pay
      in accordance with the Company’s policy as such policies are developed and
      changed from time to time.

    

    6.
      Health Insurance.  You will be eligible to apply for
      participation in all health related benefits offered to employees of the
      Company.  Your participation in such plans will be subject to the
      terms of the applicable benefit plan when the plan is adopted by the Company
      and
      approved by the Board of Directors.  The plans may be changed from
      time to time or the Company may cease such plans at any time.  The
      Company will reimburse you for your current COBRA  medical insurance
      premium payments made directly by you until a medical benefit plan has been
      adopted by the Company.

    

    7.Travel
      and expenses.  You are the primary representative, voice and
      face of the company.  As such, you will be expected to travel in
      accordance with the needs of your position.  The Company will
      reimburse you for any expenses associated with such business-related travel,
      and
      from time-to-time for the expenses associated with and fees charged for
      participation in conferences, seminars, presentations, customer calls, and
      the
      like in accordance with the duties of your position.

    

    8.
      Reporting Structure.  You will report directly to the Board
      of Directors.

    

    9.
      Company Confidentiality.  As a condition of your employment,
      you will be required to sign and comply with the Company’s standard Employee
      Confidentiality and Invention Assignment Agreement and to sign any revised
      agreements or amendments as a condition of continued employment.

    

    10.  At
      will employment.  Your employment with the Company is not for
      a specified period of time and can be terminated by you or the Company at any
      time, with or without cause.  However, if you are terminated without
      cause, all your unvested options will immediately vest, and you will be paid
      a
      lump sum cash payment of 1/2 of your annual salary ($25,000) plus six months
      COBRA payments grossed up for taxes.  Statements pertaining to vesting
      schedules, salaries, or other matters measured in particular time periods in
      no
      way abrogate the nature of the employment relationship as other than
      at-will.  No promises, assurances, or other conduct whether written or
      oral, can modify this paragraph unless set forth in a written agreement signed
      by you and an authorized officer of the Company.

    

    11.
      Compliance.  You will be required to comply with the
      Company’s policies as they may be constituted from time to
      time.  Notwithstanding, the terms set forth in this letter or any
      other written fully executed agreement between you and the Company shall prevail
      over conflicting Company policies.  You should also know that the
      Company is a drug free workplace.

    

    12.
      Background check.  This offer is subject to the completion of
      background and reference checking to the satisfaction of the Company and your
      agreement to the terms of any background check by any third party retained
      by
      the Company to perform the investigation.  You consent to all
      background and reference checking conducted by the Company, and, to the extent
      allowed by law, you waive any claims that any of the Company’s inquiries and
      investigation constitutes an infringement of any privacy or other right you
      may
      have.

    

    By
      signing this letter, you acknowledge that the terms described in this letter
      sets forth the entire understanding between us; there are no terms, conditions,
      representations, warranties or covenants other than those contained
      herein.  No term or provision of this letter may be amended, waived,
      released, discharged or modified except in writing, signed by you and an
      authorized officer of the Company.

    

     Please
      sign and date this letter, and the enclosed Employee Confidentiality and
      Invention Assignment Agreement and return them to me by May 15, 2007, if you
      wish to accept employment at ETelcharge under the terms described
      above.  If you accept our offer, we would like you to start on June 4,
      2007.  Should you have any questions, please feel free to contact
      me.

    

    This
      offer is valid until 5:00PM May 20, 2007.

    

    Mr.
      Howe,
      we are excited about you joining the Company and look forward to your
      contribution to the Company’s success.

    

    Sincerely,

    

    eTelcharge,
      Inc.

     

    /s/Carl O. Sherman

    Carl
      O.
      Sherman,  Chairman

    

    I
      accept
      the position of President and Chief Executive Officer offered by eTelcharge,
      Inc., and agree to the terms described in this letter.

    

    

    /s/
      Rob Howe

    Rob
      Howe        5-11-2007
Signature                                Date

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