Document:

Exhibit 10.9 Consulting Agreement with Excel Relations

    

       

      

        

        Yupp
          m

      

      
 

      

      

      

      
 

       

      Contract
        for Consulting Services

       

      Tradeshow
        Marketing Company Ltd.

       

      May
        12, 2005

       

       

      

       

       

       

      John
        Kirk

       

      President

       

      EXCEL
        RELATIONS

       

      1705
        1050 Burrard St.

       

      Vancouver,
        BC V6Z 2S3

       

      info@excelrelations.com/
        (604) 657-9040 / (604) 632-1607 (f)

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      CONSULTING
        AGREEMENT

       

      Agreement
        made this 12th day of May, 2005, between Tradeshow Marketing Company Ltd.
        (TSHO)
        with offices at Vancouver, Canada and EXCEL RELATIONS (EXCEL) having offices
        in
        Vancouver, BC:

       

      In
        consideration of the mutual promises contained in this Agreement, the
        contracting parties agree as follows:

       

      Recitals:

       

      TSHO
        desires to engage the services of EXCEL to perform consulting services regarding
        the shareholder communications of Tradeshow Marketing Company Ltd.
        (TSHO).

       

      EXCEL
        desires to consult with the Board of Directors, the Officers of TSHO, and
        certain administrative staff members of TSHO, and to undertake for the
        Corporation consultation as to the operation and management the shareholder
        communications of TSHO. 

       

      AGREEMENT

       

      Term

       

      
        	 	
                1.

              	
                The
                  respective duties and obligations of the contracting party shall
                  be for a
                  period of three (12) months commencing on the date first appearing
                  above.
                  This Agreement may be terminated by either party at any time upon
                  three
                  (3) months prior written notice or earlier pursuant to the provisions
                  set
                  forth below in Section 6 below.

              

      

       

      Services
        Provided by Consultant

       

      
        	 	
                2.

              	
                EXCEL
                  will provide consulting services in connection with TSHO’s shareholder
                  communications. At no time shall EXCEL provide services which would
                  require EXCEL to be registered or licensed with any federal or
                  Province
                  regulatory body or self-regulating agency. EXCEL will provide such
                  services in the manner EXCEL reasonably believes will accomplish
                  the goals
                  of TSHO. EXCEL agrees to provide fair disclosure of compensation
                  in any
                  publication or distribution of information made on TSHO’s behalf in
                  accordance with existing governmental regulations. EXCEL will devote
                  such
                  amount of time and effort necessary to accomplish the services
                  required.
                  However, there is no requirement that EXCEL devote a certain amount
                  of
                  time or effort hereunder. During the term of this Agreement, EXCEL
                  will
                  provide certain administrative and management services to TSHO,
                  including
                  but not necessarily limited to the
                  following:

              

      

      

      	(a)  	
              Consult
                with TSHO as to methods and procedures to build shareholder base
                and
                provide shareholder and investor communications.
                

            

      	(b)  	
              Advise
                TSHO and provide assistance in development of shareholder base and
                shareholder communications;

            

      

      TSHO
        agrees to support EXCEL in developing and building the shareholder base
        including, but not necessarily limited to the following:

      	(1)  	
              Providing
                EXCEL with information and news as required to build and retain the
                shareholder base.

            

      	(2)  	
              Providing
                support as needed for EXCEL to fulfill the terms of the contract
                as
                approved by TSHO.

            

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Compensation

       

      	3.  	
              Upon
                execution of this Agreement, EXCEL shall be compensated with $5,000
                USD
                cash per month until termination of this contract in accordance with
                section 6 titled Termination. 

            

       

       

      Representations
        of Corporation

       

      
        	 	
                4.

              	
                (a)
                  TSHO, upon entering this Agreement, hereby warrants and guarantees
                  to
                  EXCEL that all Statements, either written or oral, made by TSHO
                  to EXCEL
                  are true and accurate, and contain no misstatements of material
                  fact. TSHO
                  acknowledges that the information it delivers to EXCEL will be
                  used by the
                  EXCEL in preparing materials regarding TSHO’s business, including but not
                  necessarily limited to, its financial condition, for dissemination
                  to the
                  public. Therefore, in accordance with Paragraph 5, below, TSHO
                  shall hold
                  harmless EXCEL from any and all errors, omissions, misstatements,
                  negligent or intentional misrepresentations, in connection with
                  all
                  information furnished by TSHO to EXCEL, in accordance with and
                  pursuant to
                  the terms and conditions of this Agreement for whatever purpose
                  or
                  purposes EXCEL sees fit to use said information. TSHO further represents
                  and warrants that as to all matters set forth within this Agreement
                  and
                  involving the corporate business affairs and the sale of securities,
                  TSHO
                  has had independent legal counsel and will continue to maintain
                  independent legal counsel to advise TSHO, of all matters concerning,
                  but
                  not necessarily limited to, corporate law, corporate relations,
                  investor
                  relations, all manners concerning and in connection with TSHO’s,
                  activities regarding the Securities Acts of 1933 and 1934, and
                  Province
                  Blue Sky or Securities laws. EXCEL, has no responsibility to obtain
                  or
                  render legal advice in connection with the sale of securities.
                  All legal,
                  regulatory or licensing matters as related to the corporate sale
                  of
                  securities are the responsibility of TSHO, and its
                  counsel.

              

      

      

       

      Limited
        Liability

       

      
        	 	
                5.

              	
                With
                  regard to the services to be performed by EXCEL, pursuant to the
                  terms of
                  this Agreement, EXCEL shall not be liable to TSHO, or to anyone
                  who may
                  claim any right due to any relationship with TSHO or any acts or
                  omissions
                  in the performance of services on the part of EXCEL, or on the
                  part of the
                  agents or employees of EXCEL, except when said acts or omissions
                  of EXCEL
                  are due to its willful misconduct or culpable
                  negligence.

              

      

       

      Termination

       

      
        	 	
                6.

              	
                Either
                  party may terminate this Agreement at any time after three (3)
                  months
                  written notice thereof. 

              

      

      

      In
        the
        event that this contract is terminated by either party, the Termination does
        not
        relieve TSHO of the obligation to pay amounts due and owing to EXCEL accrued
        up
        to the effective date of termination, nor prejudice any cause of action or
        claim
        of either party accrued, or to accrue, on account of the breach or default
        of
        the other party. 

       

      Notices

       

      
        	 	
                7.

              	
                All
                  notices to be sent pursuant to the terms and conditions of this
                  Agreement,
                  or other documents under this agreement shall be in writing and
                  delivered
                  personally, or by certified mail, return receipt requested, postage
                  pre-paid, addressed to either TSHO or EXCEL at the address set
                  forth as
                  follow or at such other address as may be provided to the notifying
                  party:

              

      

       

      As
        to EXCEL:  EXCEL,
        1705 1050 Burrard St., Vancouver, BC V6Z 2S3

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      As
        to
        TSHO:  TSHO,
        Box
        137,2498 W. 41st
        Ave.,
        Vancouver, BC, Canada

       

      Trade
        Secrets

       

      
        	 	
                8.

              	
                TSHO,
                  acknowledges and agrees that any confidential information is proprietary
                  to and a valuable trade secret of EXCEL and that any disclosure
                  or
                  unauthorized use thereof will cause irreparable harm and loss to
                  EXCEL.
                  The parties hereto agree that all such information conveyed to
                  TSHO,
                  regarding the operations and services of EXCEL constitutes a trade
                  secret
                  as defined by British Columbia Province. 688.002(4) and shall be
                  afforded
                  the protections provided by British Columbia’s Uniform trade Secrets Act
                  or any other applicable laws.

              

      

       

      Attorneys’
        Fees

       

      
        	 	
                9.

              	
                In
                  the event any litigation or controversy, including arbitration,
                  arises out
                  of or in connection with this Agreement between the parties hereto,
                  the
                  prevailing party in such litigation, arbitration or controversy,
                  shall be
                  entitled to recover from the other party or parties, all reasonable
                  attorneys’ fees, expenses and suit costs, including those associated
                  within the appellate or post judgment collection
                  proceedings.

              

      

       

      Governing
        Law

       

      
        	 	
                10.

              	
                This
                  Agreement shall be construed under and in accordance with the laws
                  of
                  the

              

      

      Province
        of British Columbia, and all obligations of the parties created under it
        are
        performed in Vancouver, British Columbia. In any controversy arising out
        of this
        Agreement, venue for said proceeding shall be in Vancouver, British
        Columbia.

       

       

      Parties
        Bound

       

      
        	 	
                11.

              	
                This
                  Agreement shall be binding on and inure to the benefit of the contracting
                  parties and their respective heirs, executors, administrations,
                  legal
                  representatives, successors, and assigns when permitted by this
                  Agreement.

              

      

       

      Legal
        Construction

       

      
        	 	
                12.

              	
                In
                  case of any one or more of the provisions contained in this Agreement
                  shall for any reason be held to be invalid, illegal, or unenforceable
                  in
                  any respect, the invalidity, illegality, or unenforceability shall
                  not
                  affect any other provision, and this Agreement shall be construed
                  as if
                  the invalid, illegal, or unenforceable provision had never been
                  contained
                  in it.

              

      

      

       

      Prior
        Agreements Superseded

       

      
        	 	
                13.

              	
                This
                  Agreement constitutes the sole and only Agreement of the contracting
                  parties and supersedes any prior understandings or written or oral
                  agreements between the respective parties. Further, this Agreement
                  may
                  only be modified or changed by written agreement signed by all
                  parties
                  hereto.

              

      

       

      Multiple
        Copies or Counterparts of Agreement

       

      
        	 	
                14.

              	
                The
                  original and one or more copies of this Agreement may be executed
                  by one
                  or more of the parties hereto. In such event, all of such executed
                  copies
                  shall have the same force and effect as the executed original,
                  and all of
                  such counterparts taken together shall have the effect of a fully
                  executed
                  original. Further, this Agreement may be signed by the parties
                  and copies
                  hereof delivered to each party by way of facsimile transmission,
                  and such
                  facsimile copies shall be deemed original copies for all purposes
                  if
                  original copies of the parties’signatures are not
                  delivered.

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Headings

       

      
        	 	
                15.

              	
                Headings
                  used throughout this Agreement are for reference and
                  convenience,

              

      

      and
        in no
        way define, limit or describe the scope or intent of this Agreement or effect
        its provisions. 

       

       

       

      IN
        WITNESS WHEREOF, the parties have set their hands and seal as of the date
        written
        below.

       

      
        	
                Consultant:

                 

                Excel
                  Relations

                 

              	 	 	
                CLIENT:

                 

                Tradeshow
                  Marketing Company Ltd. 

                 

              
	/s/ John
                Kirk	 	 	/s/ Bruce
                Kirk
	
                
John
                Kirk	 	 	
                
Bruce
                Kirk
	Title: President	 	 	Title:
                President
                & Chairman
	Date:
                May 12, 2005	 	 	Date: May 12,
                2005exv10w1

 

Exhibit 10.1

GLOBAL EMPLOYMENT HOLDINGS, INC.

2006 STOCK PLAN

     1. Purpose of the Plan

          (a) The purpose of the 2006 Stock Plan (the “Plan”) of Global Employment Holdings,
Inc. (the “Company”) is to:

          (i) promote the interests of the Company and its stockholders by strengthening the
Company’s ability to attract, motivate and retain employees, officers, consultants and
members of the Board of Directors;

          (ii) furnish incentives to individuals chosen to receive Awards because they are
considered capable of responding by improving operations and increasing profits or otherwise
add value to the Company; and

          (iii) provide a means to encourage stock ownership and proprietary interest in the
Company to valued employees, members of the Board of Directors and consultants upon whose
judgment, initiative, and efforts the continued financial success and growth of the business
of the Company largely depend.

     2. Definitions

          (a) “Award” means an Option or Stock Award granted under the Plan.

          (b) “Award Agreement” means any written agreement, contract, or other instrument or
document between the Company and a Participant evidencing an Award, including an Option Agreement.

          (c) “Board” means the Board of Directors of the Company.

          (d) “Cause” means (i) a Participant’s willful and repeated failure to comply with the
lawful directives of the Board or such Participant’s supervisory personnel, (ii) any criminal act
or act of dishonesty, disloyalty, misconduct or moral turpitude by a Participant that is injurious
in any significant respect to the property, operations, business or reputation of the Company
after, in the case of non-criminal conduct, notice and an opportunity to cure if such conduct is
capable of cure within a reasonable period of time, or (iii) material breach by a Participant of
his or her employment agreement (if any) with the Company; provided that to the extent this
definition is inconsistent with the definition of “cause” in any employment or
consulting agreement of a Participant, the definition in such employment agreement shall
control.

 

 

          (e) “Code” means the Internal Revenue Code of 1986, as amended.

          (f) “Committee” means the committee of two or more persons established by the Board to
administer the Plan; provided, that at any time such a committee does not exist, “Committee” means
the Board.

          (g) “Common Stock” means the $.0001 par value Common Stock of the Company.

          (h) “Consultant” means any person, including an advisor, who is engaged by the Company
or any Parent or Subsidiary to render services to the Company as an independent contractor.

          (i) “Director” means any member of the Board.

          (j) “Disability” means a disability that would qualify as such under the Company’s
then current long term disability plan. In the event no such long-term disability plan exists,
disability shall mean that the Committee determines in good faith, based on medical evidence
acceptable to it, that the Participant has become physically or mentally disabled or incapacitated
for a continuous period of 90 days to such an extent that he or she is unable to perform his or her
duties.

          (k) “Eligible Person” means any Employee or Director of the Company or any Parent or
Subsidiary of the Company, or any Consultant.

          (l) “Employee” means any person, including officers, employed by the Company or any
Parent or Subsidiary of the Company, with the status of employment determined based upon such
minimum number of hours or periods worked as shall be determined by the Committee at its
discretion, subject to any requirements of the Code. The payment by the Company of a director
shall not be sufficient to constitute “employment” of such director by the Company.

          (m) “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to
time, and as now or hereafter construed, interpreted and applied by regulations, rulings and cases.

          (n) “Fair Market Value” of the Common Stock as of any date means:

     (i) If the Company is listed on a national securities exchange, the closing sales price of
the Common Stock on the stock exchange composite tape on the date of determination.

     (ii) In the event that the Common Stock is not listed on a national securities exchange, the
Committee shall determine the Common Stock’s Fair Market Value by the reasonable application of a
reasonable methodology, as it deems appropriate, taking into account all available information
material to the value of the Company.

2

 

          (o) “ISO” means an Option that meets the requirements of Section 422 of the Code, or
any successor provision, and that is designated by the Committee as an Incentive Stock Option. An
ISO may be granted only to Employees.

          (p) “NQO” means an Option other than an ISO.

          (q) “Option” means any stock Option granted pursuant to the Plan.

          (r) “Option Agreement” means the written agreement by and between the Company and an
Optionee evidencing the grant of an Option and setting forth the terms and conditions of the grant,
including any amendments to that agreement.

          (s) “Optionee” means an Eligible Person who receives an Option.

          (t) “Parent” means a “parent corporation,” whether now or hereafter existing, as
defined in Section 424(e) of the Code, or any successor provision.

          (u) “Participant” means any Eligible Person selected to participate in an Award
pursuant to Section 5.

          (v) “Reporting Person” means an officer or Director of the Company who is required to
file reports pursuant to Rule 16a-3 under the Exchange Act.

          (w) “Rule 16b-3” means Rule 16b-3 promulgated under the Exchange Act, as the same may
be amended form time to time, or any successor provision.

          (x) “Stock Award” means a right to the grant or purchase, at a price determined by the
Committee, of Common Stock, which is nontransferable and subject to substantial risk of forfeiture
until specific conditions are met. Conditions may be based on continuing employment or achievement
of pre-established financial objectives or both.

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

     3. Shares of Common Stock Subject to the Plan

          (a) Subject to the provisions of Section 3(c) and Section 11, the aggregate number of shares
of Common Stock that may be issued, transferred or exercised pursuant to Awards under the Plan will
not exceed 2,100,000 shares of Common Stock, of which 1,750,000
shares may only be granted to Employees, all of which may be ISOs, and Consultants and 350,000 shares may only be granted to Directors.

          (b) The shares of Common Stock to be delivered under the Plan will be made available, at the
discretion of the Board or the Committee, either from authorized but unissued Common Stock or from
previously issued Common Stock reacquired by the Company, including shares of Common Stock
purchased on the open market.

3

 

          (c) To the extent any Option or Award expires unexercised or is canceled, terminated or
forfeited in any manner without the issuance of Common Stock thereunder, such shares shall again be
available for issuance under the Plan.

     4. Administration of the Plan

     The Committee has and may exercise such powers and authority of the Board as may be necessary
or appropriate for the Committee to carry out its functions as described in the Plan. The
Committee has authority in its discretion to determine the Eligible Persons to whom, and the time
or times at which, Awards may be granted and the number of shares subject to each Award. The
Committee also has authority to interpret the Plan, to determine the terms and provisions of
the respective Award Agreements and to make all other determinations necessary or advisable for
Plan administration. The Committee has authority to prescribe, amend, and rescind rules and
regulations relating to the Plan. All interpretations, determinations, and actions by the
Committee will be final, conclusive, and binding upon all parties. No member of the Board or the
Committee will be liable for any action or determination made in good faith by the Board or the
Committee with respect to the Plan or any Award under it.

     5. Eligibility

     Awards may be granted to Employees, Directors and Consultants of the Company or any of its
Subsidiaries in the sole discretion of the Committee. In determining the persons to whom Awards
shall be granted and the type of Award, the Committee shall take into account such factors as the
Committee shall deem relevant in connection with accomplishing the purposes of the Plan. Each Award
will be evidenced by an agreement and may include any other terms and conditions consistent with
the Plan as the Committee may determine.

     6. Written Agreement; Effect

     Each Award shall be evidenced by an Award Agreement, in a form satisfactory to the Committee,
executed by the Company and by the person to whom such Award is granted. If applicable, the Award
Agreement shall specify whether each Option it evidences is a NQO or an ISO. Failure of the
grantee to execute an Award Agreement shall not void or invalidate the grant of an Award; provided,
however, that an Option may not be exercised until the Award Agreement evidencing such Option is
executed.

     7. Annual $100,000 Limitation in ISOs

     To the extent required by Section 422(d) of the Code, the aggregate Fair Market Value of
shares of the Common Stock with respect to which ISOs are exercisable for the first time by any
individual during any calendar year shall not exceed $100,000. For this purpose, Fair Market Value
shall be the Fair Market Value of the shares covered by the ISOs when the ISOs were granted.

4

 

     8. Stock Options

          (a) Option Agreement. The Committee may from time to time grant Options pursuant to
an Option Agreement. Each Option Agreement shall state the number of shares of Common Stock to
which the Option relates.

          (b) Type of Option. Each Option shall be designated as an ISO or a NQO and shall be
subject to the terms and conditions set forth in this Section 8. ISOs shall also be subject to the
terms and conditions set forth in Section 9.

          (c) Grant Date. Each Option Agreement shall specify the date as of which it shall be
effective, which date shall be the Grant Date.

          (d) Exercise Price. Except as provided in Section 9, the purchase price of Common
Stock under each Option will be determined by the Committee.

          (e) Term and Exercisability. The term of each Option shall be determined by the
Committee but shall not exceed 10 years. Unless otherwise specified in an Option Agreement,
Options shall vest and become exercisable on the following schedule: 1/3 on the first annual
anniversary of the Grant Date, 1/3 on the second anniversary of the Grant Date and 1/3 on the third
anniversary of the Grant Date.

          (f) Method of Payment. Options shall be exercisable by written notice to the Company
(to the attention of the Company’s Chief Financial Officer) accompanied by payment in full of the
applicable exercise price. Payment of the exercise price may be made (i) in cash, (ii) by delivery
of Options valued at the excess of the Fair Market Value of the shares of Common Stock subject
thereto less the exercise price of such Options (i.e., a “cashless exercise”) or (iii) by a
combination of the above. The Committee may, in its discretion and upon request of the
holder, issue shares upon exercise of an Option directly to a brokerage firm or firms to be
selected by the Committee, or selected by the exercising Optionee and approved by the Company’s
Chief Financial Officer, without payment of the purchase price by the holder but upon delivery of
an irrevocable guarantee by such brokerage firm or firms of the payment or such purchase price.

          (g) Fractional Shares. No fractional shares will be issued pursuant to the exercise
of an Option nor will any cash payment be made in lieu of fractional shares. If an Option exercise
results in a fractional share, the number of shares issued to the Participant shall be rounded up
to the next whole share.

          (h) Other Provisions. Each Option Agreement may contain such other terms, provisions,
and conditions not inconsistent with this Plan, including rights of repurchase, as may be
determined by the Committee, and each ISO granted under this Plan shall include such provisions and
conditions as are necessary to qualify such option as an “incentive stock option” within the
meaning of Section 422 of the Code.

          (i) Withholding of Taxes. The Company may, if necessary or desirable, withhold from
any amounts due and payable by the Company to any Participant (or secure payment from such
Participant in lieu of withholding) the amount of any withholding or other tax due from the Company
with respect to any issuance or exercise of Options granted under the Plan to such Participant, and
the Company may defer such issuance or exercise unless
indemnified to its satisfaction against the payment of any such amount. The Company shall not
be responsible for payment by any Participant of the proper amount of taxes.

5

 

          (j) Termination of Employment. Unless otherwise provided in an Option Agreement, in
the event that a Participant ceases to be employed by (or, in the case of a non employee, ceases to
perform services for) the Company or any Parent or Subsidiary (in each case, a “Termination of
Employment”), all outstanding Options held by such Participant shall be treated as follows:

          (i) Cause. If the Participant is terminated from his or her employment with
the Company or a Parent or Subsidiary for Cause, all the Options (whether vested or
unvested) shall automatically terminate and be cancelled (without any action on the part of
the Company) on the date of Termination of Employment.

          (ii) Disability. If the Participant is terminated from his or her employment
with the Company or a Parent or Subsidiary by reason of Disability, all unvested Options
shall automatically terminate and be cancelled (without any action on the part of the
Company) on the date of Termination of Employment. All Options that have vested prior to
such date shall remain exercisable for a period of one year following such date.

          (iii) Death. If the Participant dies while employed by the Company or a Parent
or Subsidiary, all unvested Options shall automatically terminate and be cancelled (without
any action on the part of the Company) on the date of death. Following the Participant’s
death, his or her executors, administrators, legatees or distributees may exercise the
Options that have vested prior to the date of death for a period of one year following the
date of death.

          (iv) Other Terminations of Employment. If the Participant’s employment is
terminated for any other reason, all unvested Options shall automatically terminate and be
cancelled (without any action on the part of the Company) on the date of Termination of
Employment. All Options that have vested prior to such date shall remain exercisable for a
period of 90 days following such date.

          (k) Rule 16b-3. Options granted to Reporting Persons shall comply with Rule 16b-3 and
shall contain such additional conditions or restrictions as may be required thereunder to qualify
for the maximum exemption for Plan transactions.

     9. Terms and Conditions to Which Only ISOs Are Subject

     Options which are designated as ISOs shall be subject to the following terms and conditions:

          (a) Exercise Price. The exercise price of an ISO shall be determined in accordance
with the applicable provisions of the Code and shall in no event be less than the Fair Market Value
of the stock covered by the ISO at the Grant Date; provided, however, that the exercise price of an
ISO granted to any person who owns, directly or indirectly (or is treated as owning by reason of
attribution rules, currently set forth in Code Section 424), stock of the

6

 

Company constituting more than 10% of the total combined voting power of all classes of
outstanding stock of the Company or of any affiliate of the Company, shall in no event be less than
110% of such Fair Market Value.

          (b) Option Term. Unless an earlier expiration date is specified by the Committee in the Option Agreement, each ISO shall expire 10 years from its Grant Date; except
that an ISO granted to any person who owns, directly or indirectly (or is treated as owning by
reason of applicable attribution rules currently set forth in Section 424 of the Code) stock of the
Company constituting more than 10% of the total combined voting power of the Company’s outstanding
stock, or the stock of any affiliate of the Company, shall expire five years from its Grant Date.

          (c) Disqualifying Dispositions. If Common Stock acquired by exercise of an ISO is
disposed of within two years from the Grant Date or within one year after the transfer of the
Common Stock to the Optionee, the holder of the Common Stock immediately prior to the disposition
shall promptly notify the Company in writing of the date and terms of the disposition and shall
provide such other information regarding the disposition as the Company may reasonably require.
Such holder shall pay to the Company any withholding and employment taxes which the Company in its
sole discretion deems applicable. The Company shall not be responsible for payment by any
Participant of the proper amount of taxes. The Company may instruct its stock transfer agent by
appropriate means, including placement of legends on stock certificates, not to transfer stock
acquired by exercise of an ISO unless it has been advised by the Company that the requirements of
this Section have been satisfied.

     10. Stock Awards

          (a) Terms and Conditions. All shares of Common Stock granted or sold pursuant to the
Plan will be subject to the following conditions:

          (i) The Committee may impose conditions on any shares granted or sold pursuant
to the Plan as it may deem advisable, including, without limitations, restrictions under the
Exchange Act, under the requirements of any stock exchange upon which such shares or shares
of the same class are then listed and under and blue sky or other securities laws applicable
to such shares.

          (ii) The Committee may require the Participant to enter into an agreement providing
that the certificates representing Stock Awards granted or sold pursuant to the Plan will
remain in the physical custody of the Company until all restrictions are removed or expire.

          (iii) Each Certificate representing Stock Awards granted pursuant to the Plan will bear
a legend making appropriate reference to the restrictions imposed.

7

 

          (b) Lapse of Terms and Conditions. The restrictions imposed under Section 10(a) upon
Stock Awards will lapse in accordance with a schedule or other conditions as determined by the
Committee.

          (c) Stockholder Rights. Subject to the provisions of Section 10(a) and Section 10(b),
the holder will have all rights of a stockholder with respect to the Stock Awards granted or sold,
including the right to vote the shares and receive all dividends and other distributions paid or
made with respect thereto.

          (d) Method of Payment. Except as set forth below, the purchase price (if any) for
shares acquired pursuant to Stock Awards will be payable in full in cash or by check.

     11. Adjustment Provisions

          (a) Subject to Section 11(b), if the outstanding shares of Common Stock of the Company are
increased, decreased, or exchanged for a different number or kind of shares or other securities, or
if additional shares or new or different shares or other securities are distributed with respect to
such shares of Common Stock or other securities, through merger, consolidation, sale of all or
substantially all of the property of the Company, reorganization, recapitalization,
reclassification, stock dividend, stock split, reverse stock split or other distribution with
respect to such shares of Common Stock, or other securities, an appropriate and proportionate
adjustment may be made in (i) the maximum number and kind of shares provided in Section 3, (ii) the
number and kind of shares or other securities subject to the then outstanding Awards, and (iii) the
price for each share or other unit of any other securities subject to then outstanding Awards
without change in the aggregate purchase price or value as to which such Awards remain exercisable
or subject to restrictions.

          (b) Notwithstanding the provisions of Section 11(a), upon dissolution or liquidation of the
Company or upon a reorganization, merger, or consolidation of the Company with one or more
corporations as a result of which the Company is not the surviving corporation, or upon the sale of
all or substantially all of the property of the Company, all Awards then outstanding under the Plan
will be fully vested and exercisable and all restrictions will immediately cease.

          (c) Adjustments under Section 11(a) will be made by the Committee, whose
determinations to what adjustments will be made and the extent thereof will be final, binding, and
conclusive. No fractional interest will be issued under the Plan on account of any such
adjustments.

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     12. General Provisions

          (a) No Right To Continued Employment. Nothing in the Plan or in any instrument
executed pursuant to the Plan will confer upon any Participant any right to continue as an Employee
or Consultant or member of the Board of the Company or any of its Subsidiaries or affect the right
of the Company to terminate the employment, consulting relationship or membership on the Board of
any Participant at any time with or without cause.

          (b) Compliance with Legal Requirements. No shares of Common Stock will be issued or
transferred pursuant to an Award unless and until all then-applicable requirements imposed by
Federal and state securities laws, rules and regulations and by any regulatory agencies
having jurisdiction, and by any stock exchanges upon which the Common
Stock may be listed, have been
fully met. As a condition precedent to the issuance of shares pursuant to the grant or exercise of
an Award, the Company may require the Participant to take any reasonable action to meet such
requirements.

          (c) Participant Rights. No Participant and no beneficiary or other person claiming
under or through such Participant will have any right, title or interest in or to any shares of
Common Stock allocated or reserved under the Plan or subject to any Award except as to such shares
of Common Stock, if any, that have been issued or transferred to such Participant.

          (d) Withholding Taxes. The Company may make such provisions as it deems appropriate
to withhold any taxes the Company determines it is required to withhold in connection with any
Award. The Company shall not be responsible for payment by any
Participant of the proper amount of taxes.

          (e) Nontransferability. No Award and no right under the Plan, contingent or
otherwise, will be transferable, assignable or subject to any encumbrance, pledge or charge of any
nature except that, under such rules and regulations as the Company may establish pursuant to the
terms of the Plan, a beneficiary may be designated with respect to an Award in the event of death
of a Participant. If such beneficiary is the executor or administrator of the estate of the
Participant, any rights with respect to such Award may be transferred to the person or persons or
entity (including a trust) entitled thereto under the will of the holder of such Award.

          (f) Amendment and Termination of Option. The Committee may cancel, with the consent
of the Participant, all or a portion of any Option granted under the Plan to be conditioned upon
the granting to the Participant a new Option for the same or a different number of shares as the
Option surrendered, or may require such voluntary surrender as a condition to a grant of a new
Option to such Participant. Such Option shall be exercisable at the price, during the period, and
in accordance with any other terms or conditions specified by the Committee at the time the new
Option is granted, all determined in accordance with the provisions of the Plan without regard to
the price, period of exercise, or any other terms or conditions of the Option surrendered. The
Committee may not delegate authority to any officer of the Company or other person to amend or
terminate any Option as described in this Section 12(f).

9

 

          (g) Amendment and Termination of Plan. The Committee will have the power, in its
discretion, to amend, suspend or terminate the Plan at any time. No such
amendment will, without approval of the stockholders of the Company, except as provided in
Section 11 of the Plan:

          (i) Change the class of persons eligible to receive Awards under the Plan;

          (ii) Materially increase the benefits accruing to Eligible Persons under the Plan; or

          (iii) Increase the number of shares of Common Stock subject to the Plan.

     The Committee may, with the consent of a Participant, make such modifications in the
terms and conditions of an Award agreement as it deems advisable.

     No amendment, suspension or termination of the Plan will, without the consent of the
Participant, alter, terminate, impair or adversely affect any right or obligation under any Award
previously granted under the Plan.

          (h) Governing Law. The Plan and all determinations made and actions taken
pursuant hereto shall be governed by the laws of the State of Delaware without giving effect to the
conflict of laws principles thereof.

          (i) Effective Date and Duration of Plan. This Plan will become effective upon
adoption by the Board and the holders of a majority of the outstanding shares at a meeting of
stockholders of the Company (the “Effective Date”). In the absence of such approval, all
Awards shall be null and void. Unless previously terminated, the Plan will terminate 10 years
after the Effective Date.

          (j) Indemnification. In addition to such other rights of indemnification as they may
have as members of the Board or the Committee, the members of the Committee shall be indemnified by
the Company against all costs and expenses reasonably incurred by them in connection with any
action, suit or proceeding to which they or any of them may be party by reason of any action taken
or failure to act under or in connection with the Plan or any Award granted under the Plan, and
against all amounts paid by them in settlement thereof (provided such settlement is approved by
independent legal counsel selected by the Company) or paid by them in satisfaction of a judgment in
any such action, suit or proceeding; provided, however, that any such Committee member
shall be entitled to the indemnification rights set forth in this Section only if such member has
acted in good faith and in a manner that such member reasonably believed to be in or not opposed to
the best interests of the Company and, with respect to any criminal action or proceeding, had no
reasonable cause to believe that such conduct was unlawful, and further provided that upon the
institution of any such action, suit or proceeding a Committee member shall give the
Company written notice thereof and an opportunity to handle and defend the same before such
Committee member undertakes to handle and defend it on his or her own behalf.

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