Document:

Exhibit 10.11

    
      

    

    Exhibit
      10.11

    IFT
      CORPORATION

    DIRECTOR
      COMPENSATION PLAN

    (As
      Amended, Effective July 12, 2005)

    

    
      	
              I.

            	
              GENERAL
                PROVISIONS.

            

    

    

    1.1         
      Purposes
      of Plan.
      IFT
      Corporation (the "Company") has adopted this Director Compensation Plan (the
      "Plan") to enable the Company to attract and retain the services of experienced
      and knowledgeable Non-Employee Directors and to align further their interests
      with those of the stockholders of the Company by providing for or increasing
      the
      proprietary interests of the Non-Employee Directors in the Company.

    

    1.2         
      Definitions.
      The
      following terms, when used in this Plan, shall have the meanings set forth
      in
      this Section 1.2:

    

    (a)         
      "Award"
      means an award of Restricted Stock under the Plan.

    

    (b)         
      "Change
      in Control" means an Ownership Change Event or series of related Ownership
      Change Events (collectively, a "Transaction")
      in
      which the stockholders of the Company immediately before the Transaction do
      not
      retain immediately after the Transaction, direct or indirect beneficial
      ownership of more than fifty percent (50%) of the total combined voting power
      of
      the outstanding voting securities of the Company or, in the case of an Ownership
      Change Event, the entity to which the assets of the Company were transferred.
      An
"Ownership
      Change Event"
      shall be
      deemed to have occurred if any of the following occurs with respect to the
      Company: (i) the direct or indirect sale or exchange by the stockholders of
      the Company of all or substantially all of the voting stock of the Company;
      (ii) a merger or consolidation in which the Company is a party;
      (iii) the sale, exchange, or transfer of all or substantially all of the
      assets of the Company (other than a sale, exchange or transfer to one or more
      subsidiaries of the Company); or (iv) a liquidation or dissolution of the
      Company. The sole exception to Change in Control and Ownership Change Event
      as
      described above shall be any Change in Control that may result from the death
      or
      incapacity of Richard J. Kurtz wherein his interest is transferred to his heirs
      only. In such event for the purposes hereof, no Change in Control or Ownership
      Change Event shall be deemed to have occurred.

    

    (c)         
      "Common
      Stock" means the common stock, par value $.01 per share, of the
      Company.

    

    (d)         
      "Non-Employee
      Director" means any member of the Board of Directors who is not an employee
      of
      the Company or of a parent or subsidiary corporation (as defined in Section
      425
      of the Internal Revenue Code) with respect to the Company.

    

    (e)         
      "Participant"
      means any Non-Employee Director who receives an Award pursuant to the terms
      of
      the Plan.

    

    (f)         
      "Restricted
      Stock" means Common Stock which is the subject of an Award under this Plan
      and
      which is nontransferable and subject to a substantial risk of forfeiture until
      specific conditions are met as set forth in this Plan.

    

    (g)         
      “Retention
      Fee” means cash payment to Independent Directors (as such term is defined in the
      American Stock Exchange Company Guide) for serving on the Board of Directors.
      

    

    1.3         
      Common
      Shares Subject to Plan.

    

    (a)         
      Subject
      to the provisions of Article IV and of this Section 1.3, the maximum number
      of
      shares of Common Stock which may be issued or transferred pursuant to Awards
      under this Plan shall not exceed 1,600,000 shares.

    

    (b)         
      The
      shares of Common Stock to be delivered under the Plan shall be made available,
      at the discretion of the Board of Directors, either from authorized but unissued
      shares of Common Stock or from shares of Common Stock held by the Company as
      treasury shares, including shares purchased in the open market.

    

    (c)         
      If,
      on or
      before termination of the Plan, any shares of Common Stock subject to an Award
      shall not be issued or transferred and shall cease to be issuable or
      transferable for any reason, or if such shares shall have been reacquired by
      the
      Company pursuant to restrictions imposed on such shares under the Plan, the
      shares not so issued or transferred and the shares so reacquired shall not
      longer be charged against the limitation provided for in Paragraph (a) of this
      Section 1.3 and may be again made the subject of Awards under this
      Plan.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    1.4         
      Administration
      of Plan.

    

    (a)         
      Subject
      to the provisions of Paragraph (b) below, this Plan shall be administered by
      the
      Board of Directors. Awards under the Plan shall be automatic as described
      elsewhere in this Plan. Subject to the provisions of this Plan, the Board shall
      be authorized and empowered to do all things necessary or desirable in
      connection with the administration.

    

    (b)         
      The
      Board, in its absolute discretion may at any time and from time to time delegate
      to a committee of three or more persons appointed by the Board (the "Committee")
      all or any part of the authority, powers and discretion of the Board under
      this
      Plan. Any determinations, decisions, interpretations, rules, regulations or
      other actions of the Committee shall have the same effect as if made or taken
      by
      the Board. Members of the Committee shall be subject to removal at any time
      as
      determined by the Board, and the Board may at any time abolish the entire
      Committee, in which case all authority, powers and discretion delegated to
      the
      Committee shall immediately become revested in the Board. The Board also may
      limit the Committee's authority and power at any time, in which case any
      specified authority or power removed from the Committee shall immediately become
      revested in the Board. No Non-Employee Director shall be eligible to be a member
      of the Committee.

    

    1.5         
      Participation.
      All
      Non-Employee Directors shall receive Awards under this Plan, which Awards shall
      be granted automatically as provided in Section 2.1 below.

    

    
      	
              II.

            	
              COMPENSATION.

            

    

    

    2.1         
      Restricted
      Stock Awards.

    

    (a)         
      Immediately
      following the effective date of this Plan (as determined pursuant to Section
      5.2
      hereof), each Non-Employee Director who is then serving as a member of the
      Board
      of Directors shall automatically be granted an Award consisting of a number
      of
      shares of Restricted Stock (rounded to the nearest whole number of shares)
      equal
      to: 48,000 for the Chairman of the Board, who is also a Non-Employee Director;
      and 12,000 for the other Non-Employee Directors, as of the effective date of
      this Plan.

    

    (b)         
      Thereafter,
      each Non-Employee Director who is newly appointed or elected to the Board for
      a
      full term of one (1) year shall automatically be granted an award consisting
      of
      the applicable number of shares of Restricted Stock described in Section 2.1(a)
      with respect to any other Non-Employee Director, at the time such Non-Employee
      Director first joins the Board. Such Award shall be made on the first business
      day following the date of the regular annual meeting of stockholders of the
      Company, or any adjournment thereof, at which directors are
      elected.

    

    (c)         
      Each
      Non-Employee Director who is appointed or elected to fulfill a term of less
      than
      one (1) year (whether by replacing a director who retires, resigns or otherwise
      terminates his service as a director prior to the expiration of this term or
      otherwise) shall automatically be granted a pro-rata Award consisting of the
      applicable number of shares of Restricted Stock described in Section
      2.1(a)(rounded to the nearest whole number of shares) equal to 1,000 multiplied
      by the Applicable Service Fraction with respect to such Non-Employee Director
      determined as of the date of such Non-Employee Director's appointment or
      election to the Board. Such Award shall be made as of the first business day
      following the date of such Non-Employee Director's appointment or election
      to
      the Board.

    

    (d)         
      Each
      Non-Employee Director who is re-elected (or, in the case of a Non-Employee
      Director who was appointed to the Board and received an Award pursuant to any
      of
      the preceding provisions of this Section 2.1 (an "Appointed Director"), elected)
      to the Board for a full term of one (1) year shall automatically be granted
      an
      Award consisting of the applicable number of shares of Restricted Stock
      described in Section 2.1(a) at the time of such Non-Employee Director's
      re-election (or, in the case of an Appointed Director, election) to the Board.
      Such Award shall be made on the first business day following the date of the
      annual meeting of stockholders of the Company, or any adjournment thereof,
      at
      which directors of the Company are elected.

    

    (e)         
      As
      used
      herein, "Applicable Service Fraction" means, with respect to any Non-Employee
      Director, a fraction the numerator of which is the number of months remaining
      in
      such Non-Employee Director's term at the time the Applicable Service Fraction
      is
      to be determined pursuant hereto and the denominator of which is
      12.

    

    (f)         
      Notwithstanding
      the foregoing, any restricted common stock received by any Non-Employee Director
      for serving on the Board prior to the effective date of this Plan under any
      other Non-Employee Plan or arrangement of the Company, shall be in addition
      to
      the automatic grant described in Section 2.1(a). The Chairman of the Board,
      who
      is also a Non-Employee Director, did not receive any prior restricted common
      stock for serving in such capacity on the Board since February 8,
      1999.

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    (g)         
      Anything
      stated herein to the contrary notwithstanding, a one-time grant of 1,168,000
      shares of Restricted Stock shall be made to Richard J. Kurtz, Chairman of the
      Board, which shall be in addition to the automatic grant described in Section
      2.1(a). This grant recognizes his personal cost for substantially funding the
      Company and acting as Chairman of the Board without adequate compensation over
      a
      three-year period.

    

    2.2         
      Purchase
      Price.
      Participants under the Plan shall not be required to pay any purchase price
      for
      the shares of Common Stock to be acquired pursuant to an Award, unless otherwise
      required under applicable law or regulations for the issuance of shares of
      Common Stock which are nontransferable and subject to a substantial risk of
      forfeiture until specific conditions are met. If so required, the price at
      which
      shares of Common Stock shall be sold to Participants under this Plan pursuant
      to
      an Award shall be the minimum purchase price required in such law or
      regulations, as determined by the Board in the exercise of its sole
      discretion.

    

    2.3         
      Terms
      of Payment.
      The
      purchase price, if any, of shares of Common Stock sold by the Company hereunder
      shall be payable by the Participant in cash at the time such award is
      granted.

    

    2.4         
      Cash
      Payment.
      An
      annual Retention Fee, payable on a quarterly basis, shall be paid by the Company
      to all eligible Participants under this Plan as follows:

    

    (a)         
      $4,000
      per annum for the first year of continuous service on the Board of
      Directors;

    

    (b)         
      $7,000
      per annum for the second year of continuous service on the Board of Directors;
      and

    

    (c)         
      $10,000
      per annum for the third year of continuous service and thereafter on the Board
      of Directors.

     

    
      
        	
                III.

              	
                RESTRICTIONS
                  ON GRANTED STOCK.

              

      

    

    

    3.1         
      Restrictions
      on Shares Issued.
      All
      shares of Common Stock granted pursuant to an Award under this Plan shall be
      subject to the following restrictions:

    

    (a)         
      The
      shares may not be sold, assigned, transferred, pledged, hypothecated or
      otherwise disposed of, alienated or encumbered until the restrictions set forth
      in Paragraph (b) below lapse and are removed as provided in Paragraph (d) below,
      and any additional requirements or restrictions set forth in or imposed pursuant
      to this Plan have been satisfied, terminated or expressly waived by the Company
      in writing.

    

    (b)         
      In
      the
      event a Participant's service as a director of the Company terminates for any
      reason other than death or total disability, all shares of Common Stock acquired
      under this Plan by such Participant with respect to which, at the date of such
      termination of service, the vesting restrictions imposed under this Plan have
      not lapsed and been removed as provided in Paragraph (d) below shall be returned
      to the Company forthwith, and all rights of the Participant to such shares
      shall
      immediately terminate upon payment by the Company to such Participant of the
      amount, if any, that the Participant paid to the Company for such
      shares.

    

    (c)         
      In
      the
      event a Participant's service as a director of the Company terminates because
      of
      death or total disability, the Participant shall not be obligated to return
      any
      shares as described in Paragraph (b) above and, except for any continuing and
      additional restrictions which may exist as set forth in or imposed pursuant
      to
      this Plan, the vesting restrictions imposed upon the shares of Common Stock
      acquired by such Participant under this Plan shall lapse and be removed (and
      the
      shares of Common Stock acquired by such Participant under Awards pursuant to
      the
      Plan shall vest) upon such termination of service.

    

    (d)         
      The
      restrictions imposed under Paragraph (b) above shall lapse and be removed (and
      the shares of Common Stock acquired by a Participant pursuant to an Award shall
      vest) in accordance with the following rules:

    

    (i)         
      Subject
      to the provisions of Subparagraphs (iii) and (iv) below, in the case of an
      Award
      granted pursuant to Paragraph (a) or (c) of Section 2.1, as of the date of
      each
      regular annual meeting of stockholders of the Company at which directors are
      to
      be elected following the date of such Award, the vesting restrictions imposed
      under this Plan shall lapse and be removed from such number of shares of
      Restricted Stock acquired pursuant to the Award as is required to cause the
      aggregate number of shares of Common Stock acquired pursuant to such Award
      with
      respect to which the vesting restrictions imposed pursuant to this Plan have
      lapsed and been removed (and in which the Participant shall be fully vested)
      to
      equal the number (rounded to the nearest whole number of shares) computed by
      multiplying the total number of shares of Restricted Stock that were initially
      the subject of such Award by the lesser of (a) one or (b) a fraction the
      numerator of which is the number of months the Participant has served as a
      member of the Board of Directors subsequent to the date upon which the Award
      was
      granted and the denominator of which is the total number of months in the term
      of such Non-Employee Director determined as of the date upon which the Award
      was
      granted.

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (ii)         
      Subject
      to the provisions of Subparagraph (iii) and (iv) below, in the case of an Award
      pursuant to Paragraph (b) or (d) of Section 2.1, as of the date of each regular
      annual meeting of stockholders of the Company at which directors are to be
      elected following the date of such Award, the vesting restrictions imposed
      pursuant to this Plan shall lapse and be removed (and the Participant shall
      be
      fully vested) with respect to all of the shares acquired by the Participant
      pursuant to such Award as of the date of the next annual meeting of stockholders
      following the date upon which the Award is granted.

    

    (iii)         
      Notwithstanding
      the provisions of Subparagraphs (i), (ii) and (v) of this Section 3.1, in the
      event that a Participant's service as a director of the Company terminates
      because of death or total disability, as of the date of such termination of
      service the vesting restrictions imposed pursuant to this Plan shall lapse
      and
      be removed (and the Participant shall be fully vested) with respect to all
      shares of Common Stock acquired by such Participant under Awards pursuant to
      this Plan.

    

    (iv)         
      Notwithstanding
      the provisions of Subparagraphs (i), (ii) and (v) of this Section 3.1, in the
      event of a Change in Control, as of the date of such Change in Control the
      vesting restrictions imposed pursuant to this Plan shall lapse and be removed
      (and Participants shall be fully vested) with respect to all shares of Common
      Stock acquired under Awards pursuant to this Plan.

    

    (v)         
      Notwithstanding
      the provisions in Subparagraphs (i) through (iv) of this Section 3.1(d), the
      Award made pursuant to Section 2.1(g), as of the effective date of this Plan,
      shall vest 25% per year commencing as of the effective date of this
      Plan.

    

    (e)         
      Vesting.
      Unless
      otherwise expressly stated herein, shares granted hereunder shall vest after
      12-months following date of grant.

    

    3.2         
      Prior
      Shares of Restricted Common Stock Outside of the Plan.
      Any and
      all restricted common stock received by each Non-Employee Director for serving
      on the Board prior to the effective date of this Plan under any other
      Non-Employee Plan or arrangement of the Company prior to the effective date
      of
      this Plan, shall be fully vested.

    

    3.3         
      Rights
      with Respect to Shares of Restricted Stock.
      A
      Non-Employee Director to whom an Award has been made shall be notified of the
      Award, and upon payment in full of the purchase price (if any) required for
      the
      shares of the Restricted Stock, the Company shall promptly cause to be issued
      or
      transferred to the name of the Non-Employee Director a certificate or
      certificates for the number of shares of Restricted Stock granted, subject
      to
      the provisions of Sections 3.4, 3.5 and 3.6 below. From and after the date
      of
      the Award, the Non-Employee Director shall be a Participant and shall have
      all
      rights of ownership with respect to such shares of Restricted Stock, including
      the right to vote and to receive dividends and other distributions with respect
      thereto, subject to the terms, conditions and restrictions described in this
      Plan.

    

    3.4         
      Custody
      of Stock Certificates.
      In
      order to enforce the restrictions imposed upon shares of Restricted Stock
      pursuant to this Plan, the Board may require that the certificates representing
      such shares of Restricted Stock remain in the physical custody of the Company
      until any or all of the restrictions imposed pursuant to the Plan expire or
      shall have been removed.

    

    3.5         
      Legends
      on Stock Certificates.
      The
      Board shall cause such legend or legends making reference to the restrictions
      imposed hereunder to be placed on certificates representing shares of Common
      Stock which are subject to restrictions hereunder as the Board deems necessary
      or appropriate in order to enforce the restrictions imposed upon shares of
      Restricted Stock issued pursuant to Awards granted hereunder.

    

    3.6         
      Securities
      Law Requirements.
      Shares
      of Common Stock shall not be offered or issued under this Plan unless the offer,
      issuance and delivery of such shares shall comply with all applicable provisions
      of law, domestic or foreign, including, without limitation, the Securities
      Act
      of 1933, as amended and the requirements of any stock exchange upon which the
      Common Stock may then be listed. As a condition precedent to the issuance of
      shares of Common Stock pursuant to an Award, the Company may require the
      Participant to execute such documents or take any reasonable action necessary
      to
      comply with such requirements.

    

    IV.         
      ADJUSTMENTS.
      If the
      outstanding shares of the 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
      in respect of such shares of Common Stock (or any stock or securities received
      with respect to such Common Stock), through merger, consolidation, sale or
      exchange of all or substantially all of the properties of the Company,
      reorganization, recapitalization, reclassification, stock dividend, stock split,
      reverse stock split, spin-off or other distribution in respect of such shares
      of
      Common Stock (or any stock or securities received with respect to such Common
      Stock), a fair, appropriate and proportionate adjustment shall be made in (i)
      the maximum number of securities provided in Section 1.3 of the Plan, (ii)
      the
      number of shares to be included in each grant of Restricted Stock of the Plan;
      (iii) the number and kind of shares then subject to restrictions pursuant to
      Section 3.1 of the Plan, and (iv) the repurchase price, if any, for each share
      of Common Stock subject to such restrictions. The Board's determination of
      the
      adjustments required under this Section 4.1 shall be final, binding and
      conclusive. No fractional interests shall be issued under the Plan on account
      of
      any such adjustment.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      	
              V.

            	
              MISCELLANEOUS
                PROVISIONS.

            

    

    

    5.1         
      Amendment,
      Suspension and Termination of Plan.
      The
      Board of Directors may at any time amend, suspend, or terminate the Plan;
      provided, however, that no such action shall deprive the holder of an Award
      of
      such Award without the consent of such holder, and further provided that the
      nondiscretionary manner in which Awards are made to Non-Employee Directors
      under
      Section 2.1 shall not be modified or amended (provided that the number of shares
      to be included in each automatic grant thereunder may be changed with the
      approval of the stockholders). Furthermore, no such amendment shall, without
      approval of the stockholders of the Company, except as provided in Article
      IV
      hereof:

    

    (a)         
      increase
      the maximum number of shares specified in paragraph (a) of Section
      1.3;

    

    (b)         
      change
      the price of Common Stock specified in Section 2.2;

    

    (c)         
      change
      the terms of payment specified in Section 2.3;

    

    (d)         
      accelerate
      the restriction-removal schedule specified in Paragraph (d) of Section
      3.1;

    

    (e)         
      extend
      the duration of the Plan;

    

    (f)         
      materially
      modify the requirements as to eligibility for participation in the Plan;
      or

    

    (g)         
      materially
      increase in any other way the benefits accruing to the holder of an Award
      already granted or that subsequently may be granted under this
      Plan.

    

    Except
      as
      provided in Article IV, no termination, suspension or amendment of this Plan
      may, without the consent of the holder thereof, affect Common Stock previously
      acquired by a Participant pursuant to this Plan.

    

    5.2         
      Effective
      Date and Duration of Plan.
      This
      Plan shall become effective on the date of its approval by the holders of the
      outstanding shares of Common Stock (either by a vote of a majority of such
      outstanding shares present in person or by proxy and entitled to vote at a
      meeting of the stockholders of the Company). Unless previously terminated by
      the
      Board of Directors, this Plan shall terminate at the close of business on May
      29, 2006, and no Award may be granted under the Plan thereafter, but such
      termination shall not affect any Award theretofore granted and any shares of
      Common Stock granted pursuant thereto.

    

    5.3         
      Additional
      Limitations on Common Stock.
      With
      respect to any shares of Common Stock issued or transferred under any provisions
      of the Plan, such shares may be issued or transferred subject to such
      conditions, in addition to those specifically provided in the Plan as the Board
      may direct.

    

    5.4         
      Director
      Status.
      Nothing
      in this Plan or in any instrument executed pursuant hereto shall confer upon
      any
      Non-Employee Director any right to continue as a member of the Board of
      Directors of the Company or any subsidiary thereof or shall interfere with
      or
      restrict the right of the Company or its stockholders (or of a subsidiary or
      its
      stockholders, as the case may be) to terminate the service of any Non-Employee
      Director at any time and for any reason whatsoever, with or without good
      cause.

    

    5.5         
      Securities
      Law Legends.
      In
      addition to any legend or legends pursuant to Section 3.5 above, each
      certificate representing shares of Common Stock issued under the Plan shall
      be
      endorsed with such legends as the Company may, in its discretion, deem
      reasonably necessary or appropriate to comply with or give notice of applicable
      federal and state securities laws.

    

    5.6         
      No
      Entitlement to Shares.
      No
      Non-Employee Director (individually or as a member of a group), and no
      beneficiary or other person claiming under or through such Non-Employee
      Director, shall have any right, title, or interest in or to any shares of Common
      Stock allocated or reserved for the purpose of the Plan or subject to any Award
      except as to such shares of Common Stock, if any, as shall have been issued
      in
      the name of or transferred to such Non-Employee Director. A Non-Employee
      Director's rights to any shares of Common Stock issued or transferred to the
      name of such Non-Employee Director pursuant to an Award under this Plan shall
      be
      subject to such limitations and restrictions as are set forth in or imposed
      pursuant to this Plan.

    

    5.7         
      Withholding
      of Taxes.
      The
      Company may make such provisions as it deems appropriate for the withholding
      by
      the Company of such amounts as the Company determines it is required to withhold
      in connection with any Award. The Company may require a Participant to satisfy
      any relevant tax requirements before authorizing any issuance of Common Stock
      to
      such Participant. Any such settlement shall be made in the form of cash, a
      certified or bank cashier's check or such other form of consideration as is
      satisfactory to the Board.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

    5.8         
      Transferability.
      No
      award or right under this Plan, contingent or otherwise, shall be assignable
      or
      otherwise transferable other than by will or the laws of descent and
      distribution, or shall be subject to any encumbrance, pledge or change or any
      nature. Any Award shall be accepted during a Participant's lifetime only by
      the
      Participant or the Participant's guardian or other legal
      representative.

    

    5.9         
      Other
      Plans.
      Nothing
      in this Plan is intended to be a substitute for, or shall preclude or limit
      the
      establishment or continuation of, any other plan, practice or arrangement for
      the payment of compensation or benefits to directors generally, which the
      Company now has or may hereafter lawfully put into effect, including, without
      limitation, any retirement, pension, insurance, stock purchase, incentive
      compensation or bonus plan.

    

    5.10         Invalid
      Provisions.
      In the
      event that any provision of this Plan document is found to be invalid or
      otherwise unenforceable under any applicable law, such invalidity or
      unenforceability shall not be construed as rendering any other provisions
      contained herein invalid or unenforceable, and all such other provisions shall
      be given full force and effect to the same extent as though the invalid or
      unenforceable provision were not contained herein.

    

    5.11         Singular,
      Plural; Gender.
      Whenever used herein, nouns in the singular shall include the plural, and the
      masculine pronoun shall include the feminine gender, as the context may
      require.

    

    5.12         Applicable
      Law.
      This
      Plan shall be governed by, interpreted under, and construed and enforced in
      accordance with the internal laws, and not the laws relating to conflicts or
      choice of laws, of the State of Delaware.

    

    5.13         Successors
      and Assigns of the Company.
      The
      Plan shall be binding upon the successors and assignees of the
      Company.

    

    5.14         Successors
      and Assigns of Participants.
      The
      provisions of this Plan and any agreement executed upon the acquisition of
      shares hereunder shall be binding upon each Participant in the Plan, and such
      Participant's heirs, executors, administrators, personal representatives,
      transferees, assignees and successors in interest.

    

    5.15         Headings,
      Etc. Not Part of Plan.
      Heading
      of Articles and Sections hereof are inserted for convenience and reference
      only,
      and they shall not constitute a part of the Plan.

     

     

    6<PAGE>

EXHIBIT 4.7

                              OVERHILL FARMS, INC.

                         2002 EMPLOYEE STOCK OPTION PLAN

                             STOCK OPTION AGREEMENT

         Unless otherwise defined herein, the terms defined in the 2002 Employee
Stock Option Plan of Overhill Farms, Inc. ("PLAN") shall have the same defined
meanings in this Stock Option Agreement ("OPTION AGREEMENT").

I.       NOTICE OF GRANT
         ---------------

         NAME:
                 ----------------------------------------

         ADDRESS:
                 ----------------------------------------

                 ----------------------------------------

         The undersigned Optionee has been granted an Option to purchase Common
Stock of the Company, subject to the terms and conditions of the Plan and this
Option Agreement, as follows:

         Grant Number
                                        ----------------------------------------

         Date of Grant
                                        ----------------------------------------

         Exercise Price per Share
                                        ----------------------------------------

         Total Number of Shares
                                        ----------------------------------------

         Total Exercise Price
                                        ----------------------------------------

         Type of Option:                ___      Incentive Stock Option

                                        ___      Nonqualified Stock Option

         Term/Expiration Date:
                                        ----------------------------------------

         Vesting Schedule:
         -----------------

         Subject to the terms and conditions of the Plan, this Option shall vest
and become exercisable according to the following schedule:

         [insert vesting schedule].

<PAGE>

         Termination Period:
         -------------------

         Any unexercised portion of this Option shall automatically and without
notice terminate and become null and void, after the earliest to occur of the
following:

              (a) six (6) months following the death or Disability of the
         Optionee;

              (b) thirty (30) days following the date on which the Optionee
         ceases to be an Eligible Person for any reason other than death,
         Disability, or termination for Cause; or

              (c) immediately upon the termination of an Optionee as an Eligible
         Person for Cause.

         In no event, however, shall the periods described above extend beyond
the Term/Expiration Date provided above or beyond the expiration of ten (10)
years from the Date of Grant.

II.      AGREEMENT
         ---------

         1. GRANT OF OPTION. The Committee (or the Disinterested Committee, if
applicable) hereby grants to the Optionee named in the Notice of Grant (the
"OPTIONEE"), an option (this "OPTION") to purchase the number of Shares set
forth in the Notice of Grant, at the exercise price per Share set forth in the
Notice of Grant (the "EXERCISE PRICE"), and subject to the terms and conditions
of the Plan, which is incorporated herein by reference, and this Option
Agreement. Subject to Section 18 of the Plan, in the event of a conflict between
the terms and conditions of the Plan and this Option Agreement, the terms and
conditions of the Plan shall prevail.

         If designated in the Notice of Grant as an Incentive Stock Option
("ISO"), this Option is intended to qualify as an Incentive Stock Option as
defined in Section 422 of the Code. Nevertheless, to the extent that it exceeds
the $100,000 rule of Code Section 422(d), this Option shall be treated as a
Nonqualified Stock Option ("NSO").

         2. EXERCISE OF OPTION.

              (a) RIGHT TO EXERCISE. This Option shall vest and become
exercisable during its term in accordance with the Vesting Schedule set out in
the Notice of Grant and with the applicable provisions of the Plan and this
Option Agreement.

              (b) METHOD OF EXERCISE. This Option shall be exercisable by
delivery of an exercise notice in the form attached as EXHIBIT A (the "EXERCISE
NOTICE"), which shall state the election to exercise this Option, the number of
Shares with respect to which this Option is being exercised ("EXERCISED
SHARES"), and such other representations and agreements as may be required by
the Company. The Exercise Notice shall be accompanied by payment of the
aggregate Exercise Price as to all Exercised Shares. This Option shall be deemed
to be exercised when (i) the Company has received a fully executed Exercise
Notice, (ii) full payment of the aggregate Exercise Price for the Exercised
Shares has been made, and (iii) arrangements that are satisfactory to the
Committee (or the Disinterested Committee, if applicable) in its sole discretion

                                      -2-

<PAGE>

have been made for the Optionee's payment to the Company of the amount, if any,
that the Committee (or the Disinterested Committee, if applicable) determines to
be necessary for the Company or a Subsidiary to withhold in accordance with
applicable federal or state income tax withholding requirements.

              No Shares shall be issued pursuant to the exercise of an Option
unless the issuance and the exercise complies with all applicable laws, as
determined by the Committee (or the Disinterested Committee, if applicable) in
its sole discretion. Assuming such compliance, for income tax purposes the
Shares shall be considered transferred to the Optionee on the date on which the
Option is exercised with respect to the Shares.

         3. OPTIONEE'S REPRESENTATIONS. If the issuance of the Shares is not
registered under the Securities Act of 1933 ("Securities Act") at the time this
Option is exercised, then the Optionee shall, if requested by the Company,
deliver to the Company his or her Investment Representation Statement in the
form attached hereto as EXHIBIT B.

         4. METHOD OF PAYMENT. Payment of the aggregate Exercise Price shall be
by any of the following, or a combination thereof, at the election of the
Optionee:

              (a) cash;

              (b) certified or cashier's check payable to the order of the
         Company;

              (c) other Shares which have a Fair Market Value on the date of
         surrender equal to the aggregate Exercise Price of the Shares as to
         which this Option will be exercised; or

              (d) any other consideration and method of payment for the issuance
         of Shares to the extent permitted by applicable laws and authorized by
         the Committee (or the Disinterested Committee, if applicable).

         5. RESTRICTIONS ON EXERCISE. This Option may not be exercised until
such time as the Plan has been approved by the stockholders of the Company, or
if the issuance of the Shares upon exercise or the method of payment of
consideration for the Shares would constitute a violation of any applicable law.

         6. NON-TRANSFERABILITY OF OPTION. This Option may not be transferred in
any manner otherwise than by will or by the laws of descent or distribution and
may be exercised during the lifetime of Optionee only by Optionee or his
guardian or legal representative. The terms of the Plan and this Option
Agreement shall be binding upon the executors, administrators, heirs, successors
and assigns of the Optionee.

         7. TERM OF OPTION. This Option may be exercised only within the term
set out in the Notice of Grant, and may be exercised during such term only in
accordance with the Plan and the terms of this Option Agreement.

                                      -3-

<PAGE>

         8. TAX OBLIGATIONS.

              (a) WITHHOLDING TAXES. The Optionee agrees to make appropriate
         arrangements with the Company (or the Subsidiary employing or retaining
         Optionee) for the satisfaction of all federal, state, local and foreign
         income and employment tax withholding requirements applicable to the
         Option exercise. The Optionee acknowledges and agrees that the Company
         may refuse to honor the exercise and refuse to deliver Shares if the
         withholding amounts are not delivered at the time of exercise.

              (b) NOTICE OF DISQUALIFYING DISPOSITION OF ISO SHARES. If this
         Option is an ISO, and if the Optionee sells or otherwise disposes of
         any of the Shares acquired pursuant to the ISO on or before the later
         of (i) the date two (2) years after the Date of Grant, or (ii) the date
         one (1) year after the date of exercise, the Optionee shall immediately
         notify the Company in writing of the disposition. The Optionee agrees
         that the Optionee may be subject to income tax withholding by the
         Company on the compensation income recognized by the Optionee.

         9. ENTIRE AGREEMENT. The Plan is incorporated herein by reference. The
Plan and this Option Agreement constitute the entire agreement of the parties
with respect to the subject matter hereof and supersede in their entirety all
prior undertakings and agreements of the Company and the Optionee with respect
to the subject matter hereof, and may not be modified adversely to the
Optionee's interest except by means of a writing signed by the Company and the
Optionee.

         10. GOVERNING LAW. The corporate laws of the State of Nevada shall
govern all issues concerning the relative rights of the Company and its security
holders under this Stock Option Agreement. All other questions and obligations
under this Option Agreement shall be construed and enforced in accordance with
the internal laws of the State of California, without giving effect to any
choice of law or conflict of law provision or rule (whether of the State of
California or any other jurisdiction) that would cause the application of the
laws of any jurisdiction other than the State of California. In any action,
dispute, litigation or other proceeding concerning this Option Agreement
(including arbitration), exclusive jurisdiction shall be with the courts of
California, with the County of Los Angeles being the sole venue for the bringing
of the action or proceeding.

         11. NO GUARANTEE OF CONTINUED SERVICE. THE OPTIONEE ACKNOWLEDGES AND
AGREES THAT THE VESTING OF SHARES PURSUANT TO THE VESTING SCHEDULE HEREOF IS
EARNED ONLY BY CONTINUING AS AN ELIGIBLE PERSON AT THE WILL OF THE COMPANY (NOT
THROUGH THE ACT OF BEING HIRED, BEING GRANTED THIS OPTION OR ACQUIRING SHARES
HEREUNDER). THE OPTIONEE FURTHER ACKNOWLEDGES AND AGREES THAT THIS OPTION
AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET
FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED
ENGAGEMENT AS AN ELIGIBLE PERSON FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT
ALL, AND SHALL NOT INTERFERE IN ANY WAY WITH THE OPTIONEE'S RIGHT OR THE
COMPANY'S RIGHT TO TERMINATE THE OPTIONEE'S RELATIONSHIP AS AN ELIGIBLE PERSON
AT ANY TIME, WITH OR WITHOUT CAUSE.

                                      -4-

<PAGE>

         The Optionee acknowledges receipt of a copy of the Plan and represents
that he or she is familiar with the terms and provisions thereof, and hereby
accepts this Option subject to all of the terms and provisions thereof. The
Optionee has reviewed the Plan and this Option in their entirety, has had an
opportunity to obtain the advice of counsel prior to executing this Option and
fully understands all provisions of this Option. The Optionee hereby agrees to
accept as binding, conclusive and final all decisions or interpretations of the
Committee (or the Disinterested Committee, if applicable) upon any questions
arising under the Plan or this Option. The Optionee further agrees to notify the
Company upon any change in the residence address indicated below.

         IN WITNESS WHEREOF, the Company has caused this Option Agreement to be
duly executed by its officer thereunto duly authorized, and the Optionee has
hereunto set his or her hand, on the respective dates set forth below, to
memorialize the grant of the Option that occurred as of the Date of Grant set
forth in the above Notice of Grant.

OPTIONEE                                 OVERHILL FARMS, INC.

----------------------------------       By:
Signature                                    -----------------------------------

----------------------------------       Title:
Print Name                                      --------------------------------

----------------------------------       Date:
                                               ---------------------------------

----------------------------------
Residence Address

----------------------------------
Social Security Number/Taxpayer ID

Date:
      ----------------------------

                                      -5-

<PAGE>

                                    EXHIBIT A
                                    ---------

                         2002 EMPLOYEE STOCK OPTION PLAN

                                 EXERCISE NOTICE

Overhill Farms, Inc.
2727 East Vernon Avenue
Vernon, California 90058
Attention: Corporate Secretary

         1. EXERCISE OF OPTION. The undersigned ("OPTIONEE") hereby elects to
exercise Optionee's option (the "OPTION") by purchasing _________ shares of the
common stock (the "SHARES") of Overhill Farms, Inc. (the "COMPANY") under and
pursuant to the 2002 Employee Stock Option Plan (the "PLAN") and the Stock
Option Agreement dated ____________, 20___ (the "OPTION AGREEMENT"). Capitalized
terms not otherwise defined in this Exercise Notice shall have the meanings
ascribed thereto in the Option Agreement.

         2. DELIVERY OF PAYMENT. Optionee herewith delivers to the Company the
full purchase price of the Shares, as set forth in the Option Agreement, and any
and all withholding taxes due in connection with the exercise of the Option.

         3. REPRESENTATIONS OF OPTIONEE. Optionee acknowledges that Optionee has
received, read and understood the Plan and the Option Agreement and agrees to
abide by and be bound by their terms and conditions.

         4. RIGHTS AS STOCKHOLDER. Until the issuance of the Shares (as
evidenced by the appropriate entry on the books of the Company or of a duly
authorized transfer agent of the Company), no right to vote or receive dividends
or any other rights as a stockholder shall exist with respect to the Shares
subject to the Option, notwithstanding the exercise of the Option. The Shares
shall be issued to the Optionee as soon as practicable after the Option is
exercised in accordance with the Option Agreement. No adjustment shall be made
for a dividend or other right for which the record date is prior to the date of
issuance except as provided in Section 10 of the Plan.

         5. TAX CONSULTATION. Optionee understands that Optionee may suffer
adverse tax consequences as a result of Optionee's purchase or disposition of
the Shares. Optionee represents that Optionee has consulted with any tax
consultants Optionee deems advisable in connection with the purchase or
disposition of the Shares and that Optionee is not relying on the Company for
any tax advice.

         6. SUCCESSORS AND ASSIGNS. The Company may assign any of its rights
under this Exercise Notice to single or multiple assignees, and this Exercise
Notice shall inure to the benefit of the successors and assigns of the Company.
Subject to the restrictions on transfer herein set forth, this Exercise Notice
shall be binding upon Optionee and his or her heirs, executors, administrators,
successors and assigns.

                                      A-1

<PAGE>

         7. INTERPRETATION. Any dispute regarding the interpretation of this
Exercise Notice shall be submitted by Optionee or by the Company forthwith to
the Committee (or the Disinterested Committee, if applicable), which shall
review such dispute at its next regular meeting. The resolution of such a
dispute by the Committee (or the Disinterested Committee, if applicable) shall
be final and binding on all parties.

         8. GOVERNING LAW; SEVERABILITY. The corporate laws of the State of
Nevada shall govern all issues concerning the relative rights of the Company and
its security holders under this Exercise Notice. All other questions and
obligations under this Exercise Notice shall be construed and enforced in
accordance with the internal laws of the State of California, without giving
effect to any choice of law or conflict of law provision or rule (whether of the
State of California or any other jurisdiction) that would cause the application
of the laws of any jurisdiction other than the State of California. In any
action, dispute, litigation or other proceeding concerning this Exercise Notice
(including arbitration), exclusive jurisdiction shall be with the courts of
California, with the County of Los Angeles being the sole venue for the bringing
of the action or proceeding. If any provision hereof becomes or is declared by a
court of competent jurisdiction to be illegal, unenforceable or void, this
Exercise Notice will continue in full force and effect.

         9. ENTIRE AGREEMENT. The Plan and the Option Agreement are incorporated
herein by reference. This Exercise Notice, the Plan and the Option Agreement
constitute the entire agreement of the parties with respect to the subject
matter hereof and supersede in their entirety all prior undertakings and
agreements of the Company and Optionee with respect to the subject matter
hereof, and may not be modified adversely to the Optionee's interest, or
modified by the Optionee, except by means of a writing signed by the Company and
Optionee.

Submitted by:                            Accepted by:
OPTIONEE                                 OVERHILL FARMS, INC.

----------------------------------       By:
Signature                                    -----------------------------------

----------------------------------       Title:
Print Name                                      --------------------------------

Address:                                 Address:
--------                                 --------

----------------------------------       2727 East Vernon Avenue
                                         Vernon, California 90058
----------------------------------

                                         ---------------------------------------
                                         Date Received

                                      A-2

<PAGE>

                                    EXHIBIT B
                                    ---------

                         2002 EMPLOYEE STOCK OPTION PLAN

                       INVESTMENT REPRESENTATION STATEMENT

OPTIONEE:

COMPANY:          OVERHILL FARMS, INC.

SECURITY:         COMMON STOCK

AMOUNT:

         In connection with the purchase of the above-referenced Securities, the
undersigned Optionee represents to the Company as follows:

         (a) Optionee is aware of the Company's business affairs and financial
condition and has acquired sufficient information about the Company to reach an
informed and knowledgeable decision to acquire the Securities. Optionee is
acquiring these Securities for investment for Optionee's own account only and
not with a view to, or for resale in connection with, any "distribution" thereof
within the meaning of the Securities Act of 1933 (the "Securities Act").

         (b) Optionee acknowledges and understands that the Securities
constitute "restricted securities" under the Securities Act and have not been
registered under the Securities Act in reliance upon a specific exemption
therefrom, which exemption depends upon, among other things, the bona fide
nature of Optionee's investment intent as expressed herein. In this connection,
Optionee understands that, in the view of the Securities and Exchange
Commission, the statutory basis for the exemption may be unavailable if
Optionee's representation was predicated solely upon a present intention to hold
these Securities for the minimum capital gains period specified under tax
statutes, for a deferred sale, for or until an increase or decrease in the
market price of the Securities, or for a period of one (1) year or any other
fixed period in the future. Optionee further understands that the Securities
must be held indefinitely unless they are subsequently registered under the
Securities Act or an exemption from such registration is available. Optionee
further acknowledges and understands that the Company is under no obligation to
register the Securities. Optionee understands that the certificate evidencing
the Securities may be imprinted with any legend required under applicable
federal or state securities laws.

         (c) Optionee is familiar with the provisions of Rule 144 promulgated
under the Securities Act, which, in substance, permits limited public resale of
"restricted securities" acquired, directly or indirectly from the issuer
thereof, in a non-public offering subject to the satisfaction of certain
conditions.

         (d) Optionee further understands that if all of the applicable
requirements of Rule 144 are not satisfied, registration under the Securities
Act or some other registration exemption will be required; and that,
notwithstanding the fact that Rule 144 is not exclusive, the Staff of the

                                      B-1

<PAGE>

Securities and Exchange Commission has expressed its opinion that persons
proposing to sell private placement securities other than in a registered
offering and otherwise than pursuant to Rule 144 will have a substantial burden
of proof in establishing that an exemption from registration is available for
the offers or sales, and that persons and their respective brokers who
participate in these transactions do so at their own risk. Optionee understands
that no assurances can be given that any other registration exemption will be
available in that event.

                                              Signature of Optionee:

                                              ----------------------------------

                                              Date:_____________________, 20____

                                      B-2

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