Document:

BRCM-EX10.37_2012.12.31-10K

EXHIBIT 10.37
SEVENTH AMENDMENT TO LEASE
(5201 California)

I.    PARTIES AND DATE.

This Seventh Amendment to Lease (the “Amendment”) dated and effective as of June 28, 2012, is by and between THE IRVINE COMPANY LLC, a Delaware limited liability company (“Landlord”), and BROADCOM CORPORATION, a California corporation (“Tenant”).

II.    RECITALS.

On October 31, 2007, Landlord and Tenant entered into a lease (the “Original Lease”) for all of the rentable space (approximately 63,440 rentable square feet) in the building located at 5211 California, Irvine, California (the “5211 California Premises” and the “5211 California Building”, respectively), which lease was amended by a First Amendment to Lease dated November 12, 2008 (the “First Amendment”) wherein Landlord leased to Tenant all of the rentable space (approximately 53,840 rentable square feet) in the building located at 5241 California Avenue (the “5241 California Premises” and the “5241 California Building”, respectively) as part of the Premises subject to the Lease, by a Second Amendment to Lease dated July 21, 2010 (the “Second Amendment”) wherein Landlord leased to Tenant approximately 14,336 rentable square feet of space commonly known as Suite 140, Suite 160, Suite 210, and Suite 250 in a building located at 5251 California Avenue (the “5251 California Building”) as part of the Premises subject to the Lease, by a Third Amendment to Lease dated September 14, 2010 (the “Third Amendment”) wherein Landlord leased to Tenant all of the rentable space (approximately 53,840 rentable square feet) in the building located at 5231 California Avenue (the “5231 California Premises” and the “5231 California Building”, respectively) as part of the Premises subject to the Lease, by a Fourth Amendment to Lease dated November 15, 2010  (the “Fourth Amendment”) wherein Landlord leased to Tenant approximately 2,021 rentable square feet of space commonly known as Suite 150 in the 5251 California Building, by a Fifth Amendment to Lease dated April 26, 2011 (the “Fifth Amendment”) wherein Landlord leased to Tenant approximately 3,404 rentable square feet of space commonly known as Suite 230 in the 5251 California Building, and by a Sixth Amendment to Lease dated August 2, 2011 (the “Sixth Amendment”) wherein Landlord leased to Tenant approximately 2,021 rentable square feet of space commonly known as Suite 130 in the 5251 California Building.  The portion of the Premises leased by Tenant in the 5251 California Building pursuant to the Second Amendment, the Fourth Amendment, the Fifth Amendment, the Sixth Amendment is collectively referred to herein as the “5251 California Premises”; and the Original Lease, as so amended, is referred to herein as the “Lease”.

Landlord and Tenant each desire to further modify the Lease to add approximately 44,240 rentable square feet of space consisting of all the rentable square footage of the building located at 5201 California, Irvine, California (the “5201 California Premises” and the “5201 California Building”, respectively), which 5201 California Premises is more particularly described on Exhibit A attached to this Amendment, to adjust the Basic Rent and to make such other modifications as are set forth in “III. MODIFICATIONS” next below.

III.    MODIFICATIONS.

A.  Premises.  From and after the “Commencement Date for the 5201 California Premises” (as hereinafter defined), the “Premises” under the Lease shall collectively consist of the 5201 California Premises 

    
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together with the 5251 California Premises, the 5231 California Premises, the 5211 California Premises and the 5241 California Premises.

B.  Building.  From and after the Commencement Date for the 5201 California Premises, all references to the “Building” shall include the 5201 California Building, and shall continue to refer to (a) the 5211 California Building, the 5231 California Building and the 5241 California Building, and (b) the 5251 California Building during any portion of the Term of the Lease as to the 5251 California Premises.  

C.  Basic Lease Provisions.  The Basic Lease Provisions are hereby amended as follows:

		
	1.
	Item 4 is hereby amended by adding the following:

“Commencement Date for the 5201 California Premises” shall mean the earlier to occur of (a) “Substantial Completion” of the “Tenant Improvements” in the 5201 California Premises (as those terms are defined in the Work Letter attached to this Amendment as Exhibit X), but not sooner than April 1, 2013, or (b) the commencement of Tenant’s regular business operations in the 5201 California Premises.  Within thirty (30) days following the Commencement Date for the 5201 California Premises, the parties shall document such date by a written memorandum on a form provided by Landlord (the “5201 California Commencement Date Notice”).  Tenant’s failure to execute such Notice within ten (10) days following its receipt thereof from Landlord shall not affect the validity of Landlord’s correct determination of the Commencement Date set forth in the applicable Notice.  The acknowledgments by Tenant contained in the second, third and fourth sentences of Section 2.2 of the Lease shall be applicable and binding with respect to Tenant’s lease of the 5201 California Premises.  As of the Commencement Date for the 5201 California Premises, Tenant shall be conclusively deemed to have accepted that the 5201 California Premises are in satisfactory condition and in conformity with the provisions of the Lease and the Work Letter, but for the Landlord’s minor punch-list work required to complete the “Tenant Improvement Work” in the 5201 California Premises (as provided in Exhibit X attached to this Amendment).”

2.    Item 5 of the Lease is hereby amended by adding the following:

“Lease Term as to the 5201 California Premises:  The Term of the Lease as to the 5201 California Premises  shall expire at midnight on April 30, 2017. 

3.    Effective as of the Commencement Date for the 5201 California Premises, 
Item 6 of the Lease is hereby amended by adding the following as additional paragraphs of the rent schedule: 
    
Basic Rent for the 5201 California Premises:

Commencing on the Commencement Date for the 5201 California Premises, the Basic Rent for the 5201 California Premises shall be Fifty Seven Thousand Five Hundred Twelve Dollars ($57,512.00) per month, based on $1.30 per rentable square foot.

Commencing twelve (12) months following the Commencement Date for the 5201 California Premises, the Basic Rent for the 5201 California Premises shall be Sixty 

    
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Thousand Six Hundred Nine Dollars ($60,609.00) per month, based on $1.37 per rentable square foot.

Commencing twenty-four (24) months following the Commencement Date for the 5201 California Premises, the Basic Rent for the 5201 California Premises shall be Sixty Three Thousand Two Hundred Sixty-Three Dollars ($63,263.00) per month, based on $1.43 per rentable square foot.

Commencing thirty-six (36) months following the Commencement Date for the 5201 California Premises, the Basic Rent for the 5201 California Premises shall be Sixty Six Thousand Three Hundred Sixty Dollars ($66,360.00) per month, based on $1.50 per rentable square foot.”
 

4.    Effective as of the Commencement Date for 5201 California Premises, Item 8 of the Lease shall be deleted in its entirety and substituted therefor shall be the following:

“8.  Floor Area of Premises:  Approximately 237,142 rentable square feet, comprised of the following:

5201 California Premises – approximately 44,240 rentable square feet;
5211 California Premises – approximately 63,440 rentable square feet;
5231 California Premises – approximately 53,840 rentable square feet;
5241 California Premises – approximately 53,840 rentable square feet; and 
5251 California Premises, Suite 130, Suite 140, Suite 150, Suite 160, 
Suite 210, Suite 230, and Suite 250 – approximately 21,782 rentable square feet.”

5.    Effective as of the Commencement Date for 5201 California Premises, Item 15 shall be deleted in its entirety and substituted therefor shall be the following:

“15.  Vehicle Parking Spaces: Eight Hundred Six (806); provided that for the duration of the 5251 California Lease Term, Tenant shall be entitled to an additional seventy-two (72) vehicle parking spaces.”

D.  Right to Extend.  The parties confirm and agree that Tenant’s right to extend the Lease set forth in Section 3.4 of the Lease shall apply to the 5201 California Premises. 

E.  Delay in Delivery.  The parties hereby acknowledge that there is an existing tenant in occupancy of the 5201 California Premises.  Landlord will use commercially reasonable efforts to cause the tenant in possession to vacate the 5201 California Premises on or before November 1, 2012, but in the event the existing tenant in possession does not vacate the 5201 California Premises on or before February 1, 2013 (the “Outside Date”), then Tenant, as its sole recourse, shall have the right to terminate its obligation to lease the 5201 California Premises by written notice given to Landlord at any time following the Outside Date but prior to the actual vacation of the 5201 California Premises by the tenant in possession.  Upon any such termination by Tenant, neither party shall have any further obligation to the other under this Amendment, and Landlord shall reimburse Tenant for its reasonable out-of-pocket costs in connection with the preparation of the “Preliminary Plan” and the “Working Drawings and Specifications” (as defined in the attached Work Letter) incurred as of the date of such termination within 30 days following invoicing by Tenant.  

    
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F.  Condition of 5201 California Premises.  The warranty on the part of Landlord contained in Section 2.4 of the Lease shall be applicable and binding on Landlord as to 5201 California Premises as of the Commencement Date for 5201 California Premises.

G.  Signs.  Effective as of the Commencement Date for the 5201 California Premises, and for so long as Tenant leases the entire 5201 California Building, Section 5.2 of the Lease is hereby amended to provide Tenant with the exclusive right to one (1) exterior “eyebrow” sign and one (1) exterior “building top” sign on the 5201 California Building.

H.  Utilities and Services.  The parties confirm and agree that Tenant shall pay charges for “after hours” usage of HVAC units servicing the 5201 California Premises in accordance with the applicable provisions of the initial paragraph of Section 6.1 of the Lease.

I.  Communications Equipment.  Effective as of the Commencement Date for the 5201 California Premises, Section 7.6 of the Lease, entitled “Communications Equipment” shall be amended to provide Tenant a license (at no additional cost to Tenant) to install, maintain and operate one or more antennae (including but not limited to satellite dishes, line of sight transmitters and receivers, and the like) on the 5201 California Building pursuant to the provisions of said Section 7.6.

J.   Broker’s Commission.  Article XVIII of the Lease is amended to provide that the parties recognize Irvine Realty Company (“Landlord’s Broker”) as the broker representing Landlord in connection with the negotiation of this Amendment, and that no broker has represented Tenant in connection with the negotiation of this Amendment.  Landlord shall be responsible for the payment of a brokerage commission to Landlord’s Broker.  The warranty and indemnity provisions of Article XVIII of the Lease, as amended hereby, shall be binding and enforceable in connection with the negotiation of this Amendment.

K.  Tenant Improvements for the 5201 California Premises.  Landlord hereby agrees to complete the “Tenant Improvements” for the 5201 California Premises in accordance with the provisions of Exhibit X, Work Letter, attached hereto.  

IV.    GENERAL.

A.  Effect of Amendments.  The Lease shall remain in full force and effect except to the extent that it is modified by this Amendment.

B.  Entire Agreement.  This Amendment embodies the entire understanding between Landlord and Tenant with respect to the modifications set forth in “III. MODIFICATIONS” above and can be changed only by a writing signed by Landlord and Tenant.

C.  Counterparts.  If this Amendment is executed in counterparts, each is hereby declared to be an original; all, however, shall constitute but one and the same amendment.  In any action or proceeding, any photographic, photostatic, or other copy of this Amendment may be introduced into evidence without foundation.

D.  Defined Terms.  All words commencing with initial capital letters in this Amendment and defined in the Lease shall have the same meaning in this Amendment as in the Lease, unless they are otherwise defined in this Amendment.

    
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E.  Corporate and Partnership Authority.  If Tenant is a corporation or partnership, or is comprised of either or both of them, Tenant represents that each individual executing this Amendment for the corporation or partnership is duly authorized to execute and deliver this Amendment on behalf of the corporation or partnership and that this Amendment is binding upon the corporation or partnership in accordance with its terms.

V.    EXECUTION.

Landlord and Tenant executed this Amendment on the date as set forth in “I. PARTIES AND DATE.” above.

LANDLORD:    TENANT:

THE IRVINE COMPANY LLC    BROADCOM CORPORATION,
a Delaware limited liability company    a California corporation

By: /s/ Steven M. Case    By: /s/ Ryan Lorey
   Steven M. Case        Name: Ryan Lorey
   Executive Vice President        Title:  Senior Director, Global Real Estate
   Office Properties

By: /s/ Michael T. Bennett    By: /s/ Eric Brandt
   Michael T. Bennett, Senior Vice President         Name:  Eric Brandt
   Operations, Office Properties         Title:  Executive Vice President and CFO

Broadcom Corporation agrees to furnish supplementally a copy of any of the foregoing exhibits to the SEC upon request.

    
5Lithium Exploration Group, Inc.:  Exhibit 4.1 - Filed by newsfilecorp.com

LITHIUM EXPLORATION GROUP, INC.

2013 STOCK PLAN 

1.         
 Purpose. 

              The
purpose of this plan (the "Plan") is to secure for Lithium Exploration Group,
Inc., a Nevada Corporation, (the "Corporation") and its stockholders, the
benefits arising from capital stock ownership by employees, officers and
directors of, and consultants or advisors to, the Corporation and its subsidiary
corporations who are expected to contribute to the Corporation's future growth
and success. The Plan permits grants of options to purchase shares of Common
Stock, $0.001 par value per share, of the Corporation (“Common Stock”) and
awards of shares of Common Stock that are restricted as provided in Section 12
(“Restricted Shares”). Those provisions of the Plan which make express reference
to Section 422 of the Internal Revenue Code of 1986, as amended or replaced from
time to time (the "Code"), shall apply only to Incentive Stock Options (as that
term is defined in the Plan). 

2.         
 Type of Options and Administration. 

              (a)       
Types of Options. Options granted pursuant to the Plan shall be
authorized by action of the Board of Directors of the Corporation (or a
Committee designated by the Board of Directors) and may be either incentive
stock options ("Incentive Stock Options") meeting the requirements of Section
422 of the Code or non-statutory options which are not intended to meet the
requirements of Section 422 of the Code. 

              (b)        Administration.
The Plan will be administered by the Board of Directors of the Corporation,
whose construction and interpretation of the terms and provisions of the Plan
shall be final and conclusive. The Board of Directors may in its sole discretion
grant Restricted Shares and options to purchase shares of Common Stock and issue
shares upon exercise of such options as provided in the Plan. The Board shall
have authority, subject to the express provisions of the Plan, to construe the
respective option and Restricted Share agreements and the Plan, to prescribe,
amend and rescind rules and regulations relating to the Plan, to determine the
terms and provisions of the respective option and Restricted Share agreements,
which need not be identical, and to make all other determinations in the
judgment of the Board of Directors necessary or desirable for the administration
of the Plan. The Board of Directors may correct any defect or supply any
omission or reconcile any inconsistency in the Plan or in any option or
Restricted Share agreement in the manner and to the extent it shall deem
expedient to carry the Plan into effect and it shall be the sole and final judge
of such expediency. No director or person acting pursuant to authority delegated
by the Board of Directors shall be liable for any action or determination under
the Plan made in good faith. The Board of Directors may, to the full extent
permitted by or consistent with applicable laws or regulations (including,
without limitation, applicable state law and Rule 16b-3 promulgated under the
Securities Exchange Act of 1934 (the "Exchange Act"), or any successor rule
("Rule 16b-3")), delegate any or all of its powers under the Plan to a committee
(the "Committee") appointed by the Board of Directors, and if the Committee is
so appointed all references to the Board of Directors in the Plan shall mean and
relate to such Committee with respect to the powers so
delegated. Any director to whom an option or stock grant is awarded shall be
ineligible to vote upon his or her option or stock grant, but such option or
stock grant may be awarded any such director by a vote of the remainder of the
directors, except as limited below. 

              (c)        Applicability
of Rule 16b-3. Those provisions of the Plan which make express reference to
Rule 16b-3 shall apply to the Corporation only at such time as the Corporation's
Common Stock is registered under the Exchange Act, and then only to such persons
as are required to file reports under Section 16(a) of the Exchange Act (a
"Reporting Person"). 

              (d)        Compliance
with Section 162(m) of the Code. Section 162(m) of the Code, added by the
Omnibus Budget Reconciliation Act of 1993, generally limits the tax
deductibility to publicly held companies of compensation in excess of $1,000,000
paid to certain “covered employees” (“Covered Employees”). It is the
Corporation’s intention to preserve the deductibility of such compensation to
the extent it is reasonably practicable and to the extent it is consistent with
the Corporation’s compensation objectives. For purposes of this Plan, Covered
Employees of the Corporation shall be those employees of the Corporation
described in Section 162(m)(3) of the Code. 

              (e)       
Special Provisions Applicable to Options Granted to Covered Employees. In
order for the full value of options granted to Covered Employees to be
deductible by the Corporation for federal income tax purposes, the Corporation
may intend for such options to be treated as “qualified performance based
compensation” as described in Treas. Reg. §1.162 -27(e) (or any successor
regulation). In such case, options granted to Covered Employees shall be subject
to the following additional requirements: 

                          (i)       
such options and rights shall be granted only by a committee comprised solely of
two or more “outside directors”, within the meaning of Treas. Reg. §
1.162.27(e)(3); and 

                          (ii)       the
exercise price of such options shall in no event be less than the Fair Market
Value (as defined below) of the Common Stock as of the date of grant of such
options. 

              (f)       
Section 409A of the Code. The Board of Directors may only grant those
awards that either comply with the applicable requirements of Section 409A of
the Code, or do not result in the deferral of compensation within the meaning of
Section 409A of the Code. 

3.          
Eligibility. 

              (a)        (a)
General. Options and Restricted Shares may be granted to persons who are,
at the time of grant, in a Business Relationship (as defined below) with the
Corporation; provided, that Incentive Stock Options may only be granted
to individuals who are employees of the Corporation (within the meaning of
Section 3401(c) of the Code). A person who has been granted an option or
Restricted Shares may, if he or she is otherwise eligible, be granted additional
options or Restricted Shares if the Board of Directors shall so determine. For
purposes of the Plan, “Business Relationship” means that a
person is serving the Corporation, its parent, if applicable, or any of its
subsidiaries, if applicable, in the capacity of an employee, officer, director,
advisor or consultant. 

              (b)        Grant
of Options to Reporting Persons. From and after the registration of the
Common Stock of the Corporation under the Exchange Act, the selection of a
director or an officer who is a Reporting Person (as the terms "director" and
"officer" are defined for purposes of Rule 16b-3) as a recipient of an option or
Restricted Shares, the timing of the option or Restricted Share grant, the
exercise price of the option and the number of Restricted Shares or shares
subject to the option shall be determined either (i) by the Board of Directors,
or (ii) by a committee consisting of two or more "Non-Employee Directors" having
full authority to act in the matter. For the purposes of the Plan, a director
shall be deemed to be a "Non-Employee Director" only if such person qualifies as
a "Non-Employee Director" within the meaning of Rule 16b-3, as such term is
interpreted from time to time.

4.          
Stock Subject to Plan. 

              The
stock subject to options granted under the Plan or grants of Restricted Shares
shall be shares of authorized but unissued or reacquired Common Stock. Subject
to adjustment as provided in Section 16 below, the maximum number of shares of
Common Stock of the Corporation (“Shares”) which may be issued and sold under
the Plan is Three Million Eight Hundred Thousand (3,800,000) Shares. If any
Restricted Shares shall be reacquired by the Corporation, forfeited or an option
granted under the Plan shall expire, terminate or is canceled for any reason
without having been exercised in full, the forfeited Restricted Shares or
unpurchased Shares subject to such option shall again be available for
subsequent option or Restricted Share grants under the Plan. Subject to
adjustment in accordance with Section 16: 

            (a)        No
  more than an aggregate of 3,800,000 Shares may be issued under Stock
  Options or in the form of Restricted Shares during the term of the Plan; 

           (b)        The
  maximum number of Shares with respect to which Stock Options or Restricted Shares
  may be granted to any one person during any fiscal year of the Corporation may
  not exceed 5% of the Corporation’s issued and outstanding shares at the
time of grant.

These limits shall be applied and construed consistently with
  Section 162(m) of the Code. 

5.          
Forms of Option and Restricted Share Agreements. 

              As
a condition to the grant of Restricted Shares or an option under the Plan, each
recipient of Restricted Shares or an option shall execute an option or
Restricted Share or Stock Option agreement in such form not inconsistent with the Plan as
may be approved by the Board of Directors. Such Option or Restricted Share
agreements may differ among recipients. 

6.          
Purchase Price. 

              (a)       
General. The purchase price per Share deliverable upon the exercise of an
option shall be determined by the Board of Directors at the time of grant of
such option; provided, however, that the exercise price of an
option shall not be less than 100% of the Fair Market Value (as hereinafter
defined) of a Share, at the time of grant of such option, or not less than 110%
of such Fair Market Value in the case of an Incentive Stock Option described in
Section 11(b). "Fair Market Value" of a Share as of a specified date for the
purposes of the Plan shall mean the closing price of a Share on the principal
securities exchange on which such Shares are traded on the day immediately
preceding the date as of which Fair Market Value is being determined, or on the
next preceding date on which such Shares are traded if no shares were traded on
such immediately preceding day, or if the Shares are not traded on a securities
exchange, Fair Market Value shall be deemed to be the average of the high bid
and low asked prices of the Shares in the over-the-counter market on the day
immediately preceding the date as of which Fair Market Value is being determined
or on the next preceding date on which such high bid and low asked prices were
recorded. In no case shall Fair Market Value be determined with regard to
restrictions other than restrictions which, by their terms, will never lapse.
The Board of Directors may also permit optionees, either on a selective or
aggregate basis, to simultaneously exercise options and sell the Shares thereby
acquired, pursuant to a brokerage or similar arrangement, approved in advance by
the Board of Directors, and to use the proceeds from such sale as payment of the
purchase price of such shares. 

              (b)        Payment
of Purchase Price. Options granted under the Plan may provide for the
payment of the exercise price by delivery of cash or a check to the order of the
Corporation in an amount equal to the exercise price of such options, or, to the
extent provided in the applicable option agreement, (i) by delivery to the
Corporation of Shares having a Fair Market Value on the date of exercise equal
in amount to the exercise price of the options being exercised, (ii) through any
cashless exercise feature that may be included in the option agreement covering
a particular option grant, (iii) by any other means which the Board of Directors
determines are consistent with the purpose of the Plan and with applicable laws
and regulations (including, without limitation, the provisions of Rule 16b-3 and
Regulation T promulgated by the Federal Reserve Board) or (iv) by any
combination of such methods of payment.

7.         
 Option Period. 

              Subject
to earlier termination as provided in the Plan, each option and all rights
thereunder shall expire on such date as determined by the Board of Directors and
set forth in the applicable option agreement, provided, that such date
shall not be later than (10) ten years after the date on which the option is
granted. 

8.         
Exercise of Options. 

              Each
option granted under the Plan shall be exercisable either in full or in
installments at such time or times and during such period as shall be set forth
in the option agreement evidencing such option, subject to the provisions of the
Plan. No option granted to a Reporting Person for purposes of the Exchange Act,
however, shall be exercisable during the first six months after the date of
grant. Subject to the requirements in the immediately preceding sentence, if an
option is not at the time of grant immediately exercisable, the Board of
Directors may (i) in the agreement evidencing such option, provide for the
acceleration of the exercise date or dates of the subject option upon the
occurrence of specified events, and/or (ii) at any time prior to the complete
termination of an option, accelerate the exercise date or dates of such option,
unless it would cause an option that otherwise qualified as an Incentive Stock
Option to lose Incentive Stock Option treatment by application of Section
422(d)(1) of the Code and Section 11(c) of the Plan. 

9.         
 Non-transferability of Options. 

              No
option granted under this Plan shall be assignable or otherwise transferable by
the optionee except by will or by the laws of descent and distribution or
pursuant to a qualified domestic relations order as defined in the Code or Title
I of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”),
or the rules thereunder. An option may be exercised during the lifetime of the
optionee only by the optionee. In the event an optionee dies during his
employment by the Corporation or any of its subsidiaries, or during the five
year period following the date of termination of such employment, his option
shall thereafter be exercisable, during the period specified to the full extent
to which such option was exercisable by the optionee at the time of his death
during the periods set forth in Section 10 or 11(d). If any optionee should
attempt to dispose of or encumber his or her options, other than in accordance
with the applicable terms of this Plan or the applicable option agreement, his
or her interest in such options shall terminate. 

10.        Effect of
Termination of Employment or Other Relationship. 

              Except
as provided in Section 11(d) with respect to Incentive Stock Options, and
subject to the provisions of the Plan and the applicable option agreement, an
optionee may exercise an option (but only to the extent such option was
exercisable at the time of termination of the optionee’s employment or other
relationship with the Corporation) at any time within five (5) years following
the termination of the optionee's employment or other relationship with the
Corporation or within one (1) year if such termination was due to the death or
disability of the optionee, but, except in the case of the optionee's death, in
no event later than the expiration date of the Option. If the termination of the
optionee's employment is for cause or is otherwise attributable to a breach by
the optionee of an employment or confidentiality or non-disclosure agreement,
the option shall expire immediately upon such termination. The Board of
Directors shall have the power to determine what constitutes a termination for
cause or a breach of an employment or confidentiality or non-disclosure
agreement, whether an optionee has been terminated for cause or has breached such an agreement, and the
date upon which such termination for cause or breach occurs. Any such
determinations shall be final and conclusive and binding upon the optionee.

11.        Incentive
Stock Options. 

             Options
granted under the Plan which are intended to be Incentive Stock Options shall be
subject to the following additional terms and conditions: 

              (a)        Express
Designation. All Incentive Stock Options granted under the Plan shall, at
the time of grant, be specifically designated as such in the option agreement
covering such Incentive Stock Options. 

              (b)       
10% Stockholder. If any employee to whom an Incentive Stock Option is to
be granted under the Plan is, at the time of the grant of such option, the owner
of stock possessing more than 10% of the total combined voting power of all
classes of stock of the Corporation (after taking into account the attribution
of stock ownership rules of Section 424(d) of the Code), then the following
special provisions shall be applicable to the Incentive Stock Option granted to
such individual: 

                (i)        The
    purchase price per share of the Common Stock subject to such Incentive Stock
    Option shall not be less than 110% of the Fair Market Value of one share of
    Common Stock at the time of grant; and 

                (ii)      
    the option exercise period shall not exceed five years from the date of grant.
  

              (c)        Dollar
Limitation. For so long as the Code shall so provide, options granted to any
employee under the Plan (and any other incentive stock option plans of the
Corporation) 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 of the respective
date or dates of grant, of more than $100,000 (or such other limitations as the
Code may provide). 

              (d)        Termination
of Employment, Death or Disability. No Incentive Stock Option may be
exercised unless, at the time of such exercise, the optionee is, and has been
continuously since the date of grant of his or her option, employed by the
Corporation, except that, unless otherwise specified in the applicable option
agreement: 

                (i)       
    an Incentive Stock Option may be exercised within the period of three months
    after the date the optionee ceases to be an employee of the Corporation (or
    within such lesser period as may be specified in the applicable option agreement),
    provided, that the agreement with respect to such option may designate a longer exercise period and that the exercise after such three-month period shall be treated as the exercise of a non-statutory option under the Plan; 

                (ii)      if
    the optionee dies while in the employ of the Corporation, or within three
    months after the optionee ceases to be such an employee, the Incentive Stock
    Option may be exercised by the person to whom it is transferred by will or
    the laws of descent and distribution within the period of one year after the
    date of death (or within such lesser period as may be specified in the applicable
    option agreement); and 

                (iii)      if
    the optionee becomes disabled (within the meaning of Section 22(e)(3) of the
    Code or any successor provisions thereto) while in the employ of the Corporation,
    the Incentive Stock Option may be exercised within the period of one year
    after the date the optionee ceases to be such an employee because of such
    disability (or within such lesser period as may be specified in the applicable
    option agreement). 

For all purposes of the Plan and any option granted hereunder,
"employment" shall be defined in accordance with the provisions of Section 1.421
-1(h) of the Income Tax Regulations (or any successor regulations).
Notwithstanding the foregoing provisions no Incentive Stock Option may be
exercised after its expiration date. 

12.        Restricted
Shares. 

              (a)        Awards.
The Board of Directors may from time to time in its discretion award Restricted
Shares to persons having a Business Relationship with the Corporation and may
determine the number of Restricted Shares awarded and the terms and conditions
of, and the amount of payment, if any, to be made by such persons. Each award of
Restricted Shares will be evidenced by a written agreement executed on behalf of
the Corporation and containing terms and conditions not inconsistent with the
Plan as the Board of Directors shall determine to be appropriate in its sole
discretion. 

              (b)       
Restricted Period; Lapse of Restrictions. At the time an award of
Restricted Shares is made, the Board of Directors shall establish a period of
time (the “Restricted Period”) applicable to such award which shall not be more
than ten years. Each award of Restricted Shares may have a different Restricted
Period. In lieu of establishing a Restricted Period, the Board of Directors may
establish restrictions based only on the achievement of specified performance
measures or a time release schedule. At the time an award is made, the Board of
Directors may, in its discretion, prescribe conditions for the incremental lapse
of restrictions during the Restricted Period and for the lapse or termination of
restrictions upon the occurrence of other conditions in addition to or other
than the expiration of the Restricted Period with respect to all or any portion
of the Restricted Shares. Such conditions may include, without limitation, the
death or disability of the participant to whom Restricted Shares are awarded,
retirement of the participant pursuant to normal or early retirement under any
retirement plan of the Corporation or termination by the Corporation of the
participant’s employment other than for cause, or the occurrence of a change in control of the
Corporation. Such conditions may also include performance measures, which, in
the case of any such award of Restricted Shares to a participant who is a
“covered employee” within the meaning of Section 162(m) of the Code, shall be
based on one or more of the following criteria: earnings per share, market value
per share, return on invested capital, return on operating assets and return on
equity. The Board of Directors may also, in its discretion, shorten or terminate
the Restricted Period or waive any conditions for the lapse or termination of
restrictions with respect to all or any portion of the Restricted Shares at any
time after the date the award is made. 

              (c)        Rights
of Holder; Limitations Thereon. Upon an award of Restricted Shares, a
stock certificate representing the number of Restricted Shares awarded to the
participant shall be registered in the participant’s name and, at the discretion
of the Board of Directors, will be either delivered to the participant with an
appropriate legend or held in custody by the Corporation or a bank for the
participant’s account. The participant shall generally have the rights and
privileges of a stockholder as to such Restricted Shares, including the right to
vote such Restricted Shares, except that the following restrictions shall apply:
(i) with respect to each Restricted Share, the participant shall not be entitled
to delivery of an unlegended certificate until the expiration nor termination of
the Restricted Period, and the satisfaction of any other conditions prescribed
by the Board of Directors, relating to such Restricted Share; (ii) with respect
to each Restricted Share, such share may not be sold, transferred, assigned,
pledged, or otherwise encumbered or disposed of until the expiration of the
Restricted Period, and the satisfaction of any other conditions prescribed by
the Board of Directors, relating to such Restricted Share (except, subject to
the provisions of the participant’s stock restriction agreement, by will or the
laws of descent and distribution or pursuant to a qualified domestic relations
order as defined by the Code or Title I of ERISA or the rules promulgated
thereunder) and (iii) all of the Restricted Shares as to which restrictions have
not at the time lapsed shall be forfeited and all rights of the participant to
such Restricted Shares shall terminate without further obligation on the part of
the Corporation unless the participant has remained in a Business Relationship
with the Corporation or any of its subsidiaries until the expiration or
termination of the Restricted Period and the satisfaction of any other
conditions prescribed by the Board of Directors applicable to such Restricted
Shares. Upon the forfeiture of any Restricted Shares, such forfeited shares
shall be transferred to the Corporation without further action by the
participant. At the discretion of the Board of Directors, cash and stock
dividends with respect to the Restricted Shares may be either currently paid or
withheld by the Corporation for the participant’s account, and interest may be
paid on the amount of cash dividends withheld at a rate and subject to such
terms as determined by the Board of Directors. The participant shall have the
same rights and privileges, and be subject to the same restrictions, with
respect to any shares received pursuant to Section 16 hereof. 

              (d)        Delivery
of Unrestricted Shares. Upon the expiration or termination of the
Restricted Period and the satisfaction of any other conditions prescribed by the
Board of Directors, the restrictions applicable to the Restricted Shares shall
lapse and a stock certificate for the number of Restricted Shares with respect
to which the restrictions have lapsed shall be delivered, free of all such
restrictions, except any that may be imposed by law including without limitation
securities laws, to the participant or the participant’s beneficiary or estate,
as the case may be. The Corporation shall not be required to deliver any
fractional share of Common Stock but will pay, in lieu thereof, the fair market value
(determined as of the date the restrictions lapse) of such fractional share to
the participant or the participant’s beneficiary or estate, as the case may be. 

13.        Additional
Provisions. 

              (a)        Additional
Provisions. The Board of Directors may, in its sole discretion, include
additional provisions in option or Restricted Stock agreements covering options
or Restricted Stock granted under the Plan, including without limitation,
restrictions on transfer, repurchase rights, rights of first refusal,
commitments to pay cash bonuses, to make, arrange for or guaranty loans or to
transfer other property to optionees upon exercise of options, or such other
provisions as shall be determined by the Board of Directors; provided,
that such additional provisions shall not be inconsistent with any other term or
condition of the Plan and such additional provisions shall not cause any
Incentive Stock Option granted under the Plan to fail to qualify as an Incentive
Stock Option within the meaning of Section 422 of the Code or result in the
imposition of an additional tax under Section 409A of the Code. 

              (b)       
Acceleration, Extension, Etc. The Board of Directors may, in its sole
discretion, (i) accelerate the date or dates on which all or any particular
option or options granted under the Plan may be exercised or (ii) extend the
dates during which all, or any particular, option or options granted under the
Plan may be exercised if it would not cause any Incentive Stock Option granted
under the Plan to fail to qualify as an Incentive Stock Option within the
meaning of Section 422 of the Code or result in the imposition of an additional
tax under Section 409A of the Code. 

14.        General
Restrictions. 

              (a)       
Investment Representations. The Corporation may require any person to
whom Restricted Shares or an option is granted, as a condition of receiving such
Restricted Shares or exercising such option, to give written assurances in
substance and form satisfactory to the Corporation to the effect that such
person is acquiring the Restricted Shares or Common Stock subject to the option
for his or her own account for investment and not with any present intention of
selling or otherwise distributing the same, and to such other effects as the
Corporation deems necessary or appropriate in order to comply with federal and
applicable state securities laws, or with covenants or representations made by
the Corporation in connection with any public offering of its Common Stock. 

              (b)       
Compliance with Securities Law. Each option and grant of Restricted
Shares shall be subject to the requirement that if, at any time, counsel to the
Corporation shall determine that the listing, registration or qualification of
the Restricted Shares or shares subject to such option upon any securities
exchange or under any state or federal law, or the consent or approval of any
governmental or regulatory body, or that the disclosure of non-public
information or the satisfaction of any other condition is necessary as a
condition of, or in connection with the issuance or purchase of shares
thereunder, such Restricted Shares shall not be granted and such option may not be exercised, in whole or in part, unless such
listing, registration, qualification, consent or approval, or satisfaction of
such condition shall have been effected or obtained on conditions acceptable to
the Board of Directors. Nothing herein shall be deemed to require the
Corporation to apply for or to obtain such listing, registration or
qualification, or to satisfy such condition. 

15.        Rights as a
Stockholder. 

             The
holder of an option shall have no rights as a stockholder with respect to any
shares covered by the option (including, without limitation, any rights to
receive dividends or non-cash distributions with respect to such shares) until
the date of issue of a stock certificate to him or her for such shares. No
adjustment shall be made for dividends or other rights for which the record date
is prior to the date such stock certificate is issued. 

16.        Adjustment
Provisions for Recapitalization, Reorganizations and Related Transactions.

              (a)       
Recapitalization and Related Transactions. If, through or as a result of
any recapitalization, reclassification, stock dividend, stock split, reverse
stock split or other similar transaction, (i) the outstanding shares of Common
Stock are increased, decreased or exchanged for a different number or kind of
shares or other securities of the Corporation, or (ii) additional shares or new
or different shares or other non-cash assets are distributed with respect to
such shares of Common Stock or other securities, an appropriate and
proportionate adjustment shall be made in (x) the maximum number and kind of
shares reserved for issuance under the Plan, (y) the number and kind of
Restricted Shares granted and shares or other securities subject to any then
outstanding options under the Plan, and (z) the exercise price for each share
subject to any then outstanding options under the Plan, without changing the
aggregate purchase price as to which such options remain exercisable.
Notwithstanding the foregoing, no adjustment shall be made pursuant to this
Section 16 if such adjustment (i) would cause the Plan to fail to comply with
Section 422 of the Code or with Rule 16b-3 or (ii) would be considered as the
adoption of a new plan requiring stockholder approval. 

              (b)       
Reorganization, Merger and Related Transactions. If the Corporation shall
be the surviving corporation in any reorganization, merger or consolidation of
the Corporation with one or more other corporations, any then outstanding
Restricted Shares or option granted pursuant to the Plan shall pertain to and
apply to the securities to which a holder of the number of shares of Common
Stock subject to such Restricted Shares or options would have been entitled
immediately following such reorganization, merger, or consolidation, with a
corresponding proportionate adjustment of the purchase price as to which such
options may be exercised so that the aggregate purchase price as to which such
options may be exercised shall be the same as the aggregate purchase price as to
which such options may be exercised for the shares remaining subject to the
options immediately prior to such reorganization, merger, or consolidation. 

              (c)        Board
Authority to Make Adjustments. Any adjustments made under this Section 16
will be made by the Board of Directors, whose determination as to what
adjustments, if any, will be made and the extent thereof will be final, binding and
conclusive. No fractional shares will be issued under the Plan on account of any
such adjustments. 

17.        Merger,
Consolidation, Asset Sale, Liquidation, Etc. 

             (a)        General.
In the event of a consolidation or merger in which the Corporation is not the
surviving corporation, or sale of all or substantially all of the assets of the
Corporation in which outstanding shares of Common Stock are exchanged for
securities, cash or other property of any other corporation or business entity
or in the event of a liquidation of the Corporation (collectively, a "Corporate
Transaction"), the Board of Directors of the Corporation, or the board of
directors of any corporation assuming the obligations of the Corporation, may,
in its discretion, take any one or more of the following actions, as to
outstanding options: (i) provide that such Restricted Shares or options shall be
assumed, or equivalent Restricted Shares or options shall be substituted, by the
acquiring or succeeding corporation (or an affiliate thereof), provided
that any such options substituted for Incentive Stock Options shall meet the
requirements of Section 424(a) of the Code, (ii) upon written notice, provide
that all unexercised options and Restricted Shares will terminate immediately
prior to the consummation of such transaction unless such options are exercised
by the optionee within a specified period following the date of such notice,
(iii) in the event of a Corporate Transaction under the terms of which holders
of the Common Stock of the Corporation will receive upon consummation thereof a
cash payment for each share surrendered in the Corporate Transaction (the
"Transaction Price"), make or provide for a cash payment to the optionees equal
to the difference between (A) the Transaction Price times the number of shares
of Common Stock subject to such outstanding options (to the extent then
exercisable at prices not in excess of the Transaction Price) and (B) the
aggregate exercise price of all such outstanding options in exchange for the
termination of such options, and (iv) provide that all restrictions on
Restricted Shares shall lapse in full or in part and all or any outstanding
options shall become exercisable in full or in part immediately prior to such
event. 

              (b)        Substitute
Restricted Shares or Options. The Corporation may grant Restricted Shares or
options under the Plan in substitution for Restricted Shares or options held by
persons in a Business Relationship with another corporation who enter into a
Business Relationship with the Corporation, or a subsidiary of the Corporation,
as the result of a merger or consolidation of the employing corporation with the
Corporation or a subsidiary of the Corporation, or as a result of the
acquisition by the Corporation, or one of its subsidiaries, of property or stock
of the other corporation. The Corporation may direct that substitute Restricted
Shares or options be granted on such terms and conditions as the Board of
Directors considers appropriate in the circumstances. 

18.        No
Special Employment Rights. 

              Nothing
contained in the Plan or in any Restricted Share or option agreement shall
confer upon any holder of Restricted Shares or optionee any right with respect
to the continuation of his or her employment by, or other Business Relationship
with, the Corporation or interfere in any way with the right of the Corporation at any time to terminate
such employment or Business Relationship or to increase or decrease the
compensation of the optionee. 

19.        Other Employee
Benefits. 

              Except
as to plans which by their terms include such amounts as compensation, the
amount of any compensation deemed to be received by an employee as a result of
the grant of Restricted Shares or lapse of restrictions thereon, the exercise of
an option or the sale of shares received upon such exercise will not constitute
compensation with respect to which any other employee benefits of such employee
are determined, including, without limitation, benefits under any bonus,
pension, profit-sharing, life insurance or salary continuation plan, except as
otherwise specifically determined by the Board of Directors. 

20.        Amendment of
the Plan. 

              (a)       
The Board of Directors may at any time, and from time to time, modify or amend
the Plan in any respect, except that if at any time the approval of the
stockholders of the Corporation is required under Section 422 of the Code or any
successor provision with respect to Incentive Stock Options, or the legal
requirements relating to the administration of equity compensation plans, if
any, under applicable provisions of federal securities laws, applicable state
corporate and securities laws, the Code, the rules of any applicable stock
exchange or national market system or quotation system on which the Common Stock
is listed or quoted, and the applicable laws and rules of any foreign country or
jurisdiction where awards are, or will be, granted under the Plan. 

              (b)        The
termination or any modification or amendment of the Plan shall not, without the
consent of an optionee or holder of Restricted Shares, affect his or her rights
under an option or grant of Restricted Shares previously granted to him or her.
With the consent of the optionee or holder of Restricted Shares affected, the
Board of Directors may amend outstanding option or Restricted Share agreements
in a manner not inconsistent with the Plan. The Board of Directors shall have
the right to amend or modify the terms and provisions of the Plan and of any
outstanding Incentive Stock Options granted under the Plan to the extent
necessary to qualify any or all such options for such favorable federal income
tax treatment (including deferral of taxation upon exercise) as may be afforded
incentive stock options under Section 422 of the Code. 

21.       
Withholding. 

             (a)        The
Corporation shall have the right to deduct from payments of any kind otherwise
due to the optionee or holder of Restricted Shares any federal, state or local
taxes of any kind required by law to be withheld with respect to any shares
issued upon exercise of options or lapse of restrictions on Restricted Shares
under the Plan. Subject to the prior approval of the Corporation, which may be
withheld by the Corporation in its sole discretion, the optionee or holder of
Restricted Shares may elect to satisfy such obligations, in whole or in part,
(i) by causing the Corporation to withhold shares of Common Stock otherwise
issuable pursuant to the exercise of an option or lapse of restrictions on
Restricted Shares or (ii) by delivering to the Corporation shares of Common
Stock already owned by the optionee or holder of Restricted Shares. The shares
so delivered or withheld shall have a Fair Market Value equal to such
withholding obligation as of the date that the amount of tax to be withheld is
to be determined. An optionee who has made an election pursuant to this Section
21(a) may satisfy his or her withholding obligation only with shares of Common
Stock which are not subject to any repurchase, forfeiture, unfulfilled vesting
or other similar requirements. 

             (b)       
The acceptance of shares of Common Stock upon exercise of an Incentive Stock
Option shall constitute an agreement by the optionee (i) to notify the
Corporation if any or all of such shares are disposed of by the optionee within
two years from the date the option was granted or within one year from the date
the shares were transferred to the optionee pursuant to the exercise of the
option, and (ii) if required by law, to remit to the Corporation, at the time of
and in the case of any such disposition, an amount sufficient to satisfy the
Corporation's federal, state and local withholding tax obligations with respect
to such disposition, whether or not, as to both (i) and (ii), the optionee is in
the employ of the Corporation at the time of such disposition. 

             (c)       
Notwithstanding the foregoing, in the case of a Reporting Person whose options
have been granted in accordance with the provisions of Section 3(b) herein, no
election to use shares for the payment of withholding taxes shall be effective
unless made in compliance with any applicable requirements of Rule 16b-3. 

22.        Section
162(m) of the Code. The Board of Directors, in its sole discretion, may
require that one or more agreements contain provisions which provide that, in
the event Section 162(m) of the Code, or any successor provision relating to
excessive employee remuneration, would operate to disallow a deduction by the
Corporation for all or part of any payment of an award under the Plan, a
grantee’s receipt of the portion that would not be deductible by the Corporation
shall be deferred to either the earliest date at which the Board reasonably
anticipates that the grantee's remuneration either does not exceed the limit set
forth in Section 162(m) of the Code or is not subject to Section 162(m) of Code,
or the calendar year in which the grantee separates from service. This Section
22 shall be applied and construed consistently with Section 409A of the Code and
the regulations (and guidance) thereunder. 

23.        Effective Date
and Duration of the Plan. 

             (a)        Effective
Date. The Plan shall become effective when adopted by the Board of
Directors, but no Incentive Stock Option granted under the Plan shall become
exercisable unless and until the Plan shall have been approved by the
Corporation's stockholders. If such stockholder approval is not obtained within
twelve (12) months after the date of the Board's adoption of the Plan, no
options previously granted under the Plan shall be deemed to be Incentive Stock
Options and no Incentive Stock Options shall be granted thereafter. Amendments
to the Plan not requiring stockholder approval shall become effective when
adopted by the Board of Directors; amendments requiring stockholder approval (as
provided in Section 20) shall become effective when adopted by the Board of
Directors, but no Incentive Stock Option granted after the date of such
amendment shall become exercisable (to the extent that such amendment to the
Plan was required to enable the Corporation to grant such Incentive Stock Option
to a particular optionee) unless and until such amendment shall have been
approved by the Corporation's stockholders. If such stockholder approval is not
obtained within twelve (12) months of the Board's adoption of such amendment,
any Incentive Stock Options granted on or after the date of such amendment shall
terminate to the extent that such amendment to the Plan was required to enable
the Corporation to grant such option to a particular optionee. Subject to this
limitation, options may be granted under the Plan at any time after the
effective date and before the date fixed for termination of the Plan. 

             (b)       
Termination. Unless sooner terminated in accordance with Section 17, the
Plan shall terminate upon the earlier of (i) the close of business on the day
next preceding the tenth anniversary of the date of its adoption by the Board of
Directors, or (ii) the date on which all shares available for issuance under the
Plan shall have been issued pursuant to the exercise or cancellation of
Restricted Shares or options granted under the Plan. If the date of termination
is determined under (i) above, then Restricted Shares or options outstanding on
such date shall continue to have force and effect in accordance with the
provisions of the instruments evidencing such Restricted Shares or options. 

24.        Governing
Law. 

             The
provisions of this Plan shall be governed and construed in accordance with the
laws of the State of Nevada without regard to the principles of conflicts of
laws. 

Adopted by the Board of Directors on January 21, 2013

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