Document:

Exhibit
      10.20

    SPECTRE
      GAMING, INC.

     

    2004
      STOCK OPTION PLAN

     

    1. Purpose.
      The
      purpose of the 2004 Stock Option Plan (the “Plan”) of Spectre Gaming, Inc., a
      Minnesota corporation (the “Company”), is to increase shareholder value and to
      advance the interests of the Company by furnishing a variety of economic
      incentives (variously referred to hereinafter as the “Incentives”) designed to
      attract, retain and motivate employees, directors and consultants. Incentives
      may consist of opportunities to purchase or receive shares of the Company’s
      common stock, $0.01 par value (the “Common Stock”), monetary payments, or both,
      on terms and conditions determined under this Plan.

     

    2. Administration

     

    2.1 The
      Plan
      shall be administered by a committee of the Company’s board of directors (the
“Committee”). The Committee shall consist of not less than two directors of the
      Company who shall be appointed from time to time by the Company’s board of
      directors. Each member of the Committee shall qualify both as a “non-employee
      director” within the meaning of Rule 16b-3 of the Securities Exchange Act of
      1934, as amended (together with the rules and regulations promulgated
      thereunder, the “Exchange Act”), and as an “outside director” as defined in
      Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”).
      The Committee shall have complete discretion and authority to determine all
      provisions of all Incentives awarded under the Plan (consistent with the terms
      of the Plan), interpret the Plan, and make any other determination which it
      believes necessary and advisable for the proper administration of the Plan.
      The
      Committee’s decisions and matters relating to the Plan shall be final and
      conclusive for the Company and its participants. No member of the Committee
      will
      be liable for any action or determination made in good faith with respect to
      the
      Plan or any Incentives granted under the Plan. The Committee will also have
      the
      authority under the Plan to amend or modify the terms of any outstanding
      Incentives in any manner; provided,
      however,
      that
      any such amended or modified terms are permitted by the Plan as then in effect,
      and any recipient of an Incentive adversely affected by such amended or modified
      terms has consented to such amendment or modification. No amendment or
      modification to an Incentive, however, whether pursuant to this Section
2
      or any
      other provisions of the Plan, will be deemed to be a re-grant of such Incentive
      for purposes of this Plan. If at any time there is no Committee, then for
      purposes of the Plan the term “Committee” shall mean the Company’s board of
      directors.

     

    2.2 In
      the
      event of (i) any reorganization, merger, consolidation, recapitalization,
      liquidation, reclassification, stock dividend, stock split, combination of
      shares, rights offering, extraordinary dividend or divestiture, including a
      spinoff, or any other similar change in corporate structure or shares, (ii)
      any
      purchase, acquisition, sale or disposition of a significant amount of assets
      or
      a significant business, (iii) any change in accounting principles or practices,
      or (iv) any other similar change, in each case with respect to the Company
      or
      any other entity whose performance is relevant to the grant or vesting of an
      Incentive, the Committee (or, if the Company is not the surviving corporation
      in
      any such transaction, the board of directors of the surviving corporation)
      may,
      without the consent of any affected recipient of an Incentive, amend or modify
      the vesting criteria of any outstanding Incentive based, in whole or in part,
      on
      the financial performance of the Company (or any subsidiary or division thereof)
      or such other entity so as equitably to reflect such event, with the desired
      result that the criteria for evaluating such financial performance of the
      Company or such other entity will be substantially the same (in the sole
      discretion of the Committee or the board of directors of the surviving
      corporation) following such event as prior to such event; provided,
      however,
      that
      the amended or modified terms are permitted by the Plan as then in
      effect.

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

       

    

    3. Eligible
      Participants.
      Employees of the Company or its subsidiaries, including officers and employees
      of the Company or its subsidiaries), directors and consultants, advisors or
      other independent contractors who provide services to the Company or its
      subsidiaries, including members of any advisory board, shall become eligible
      to
      receive Incentives under the Plan when designated by the Committee. Participants
      may be designated individually or by groups or categories (for example, by
      pay
      grade) as the Committee deems appropriate. Participation by Company officers
      or
      its subsidiaries and any performance objectives relating to such officers must
      be approved by the Committee. Participation by others and any performance
      objectives relating to others may be approved by groups or categories
      (for example, by pay grade) and authority to designate participants who are
      not officers and to set or modify such performance objectives may be
      delegated.

     

    4. Types
      of
      Incentives.
      Incentives under the Plan may be granted in any combination of the following
      forms: (a) incentive stock options and non-statutory stock options under Section
      6;
      (b)
      stock-appreciation rights(“SARs”) under Section 7;
      (c)
      stock awards under Section 8;
      (d)
      restricted stock under Section 8;
      and (e)
      performance shares under Section 9.

     

    5. Shares
      Subject to the Plan

     

    5.1 Subject
      to adjustment as provided in Section 10.6,
      the
      number of shares of Common Stock which may be issued under the Plan shall not
      exceed 2,000,000 shares of Common Stock. Shares of Common Stock issued under
      the
      Plan or that are currently subject to outstanding Incentives will be applied
      to
      reduce the maximum number of shares of Common Stock remaining available for
      issuance under the Plan.

     

    5.2 To
      the
      extent that cash in lieu of shares of Common Stock is delivered upon the
      exercise of an SAR pursuant to Section 7.4,
      the
      Company shall be deemed, for purposes of applying the limitation on the number
      of shares, to have issued the greater of the number of shares of Common Stock
      which it was entitled to issue upon such exercise or upon the exercise of any
      related option. In the event that a stock option or SAR granted hereunder
      expires or is terminated or canceled unexercised or unvested as to any shares
      of
      Common Stock, such shares may again be issued under the Plan either pursuant
      to
      stock options, SARs or otherwise. In the event that shares of Common Stock
      are
      issued hereunder as restricted stock or pursuant to a stock award and thereafter
      are forfeited or reacquired by the Company pursuant to rights reserved upon
      issuance thereof, such forfeited and reacquired shares may again be issued
      under
      the Plan, either as restricted stock, pursuant to stock awards or otherwise.
      The
      Committee may also determine to cancel, and agree to the cancellation of, stock
      options in order to make a participant eligible for the grant of a stock option
      at a lower price than the option to be canceled.

     

    6. Stock
      Options.
      A stock
      option is a right to purchase shares of Common Stock from the Company. The
      Committee may designate whether an option is to be considered an incentive
      stock
      option or a non-statutory stock option. To the extent that any incentive stock
      option granted under the Plan ceases for any reason to qualify as an “incentive
      stock option” for purposes of Section 422 of the Code, such incentive stock
      option will continue to be outstanding for purposes of the Plan but will
      thereafter be deemed to be a non-statutory stock option. Each stock option
      granted by the Committee under this Plan shall be subject to the following
      terms
      and conditions:

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

       

    

    6.1 Price.
      The
      option price per share shall be determined by the Committee, subject to
      adjustment under Section 10.6.

     

    6.2 Number.
      The
      number of shares of Common Stock subject to the option shall be determined
      by
      the Committee, subject to adjustment as provided in Section 10.6.
      The
      number of shares of Common Stock subject to a stock option shall be reduced
      in
      the same proportion that the holder thereof exercises a SAR if any SAR is
      granted in conjunction with or related to the stock option. No individual may
      receive options to purchase more than 1,000,000 shares in any year.

     

    6.3 Term
      and Time for Exercise.
      Subject
      to earlier termination as provided in Section 10.4,
      the
      term of each stock option shall be determined by the Committee but shall not
      exceed ten (10) years and one day from the date of grant. Each stock option
      shall become exercisable at such time or times during its term as shall be
      determined by the Committee at the time of grant. The Committee may in its
      discretion accelerate the exercisability of any stock option. Subject to the
      foregoing and with the approval of the Committee, all or any part of the shares
      of Common Stock with respect to which the right to purchase has accrued may
      be
      purchased by the Company at the time of such accrual or at any time or times
      thereafter during the term of the option.

     

    6.4 Manner
      of Exercise.
      Subject
      to the conditions contained in this Plan and in the agreement with the recipient
      evidencing such option, a stock option may be exercised, in whole or in part,
      by
      giving written notice to the Company, specifying the number of shares of Common
      Stock to be purchased and accompanied by the full purchase price for such
      shares. The exercise price shall be payable (a) in United States dollars upon
      exercise of the option and may be paid by cash; uncertified or certified check;
      or bank draft; (b) at the discretion of the Committee, by delivery of shares
      of
      Common Stock already owned by the participant in payment of all or any part
      of
      the exercise price, which shares shall be valued for this purpose at the Fair
      Market Value (as defined in Section 10.13
      below)
      on the date such option is exercised; or (c) at the discretion of the Committee,
      by instructing the Company to withhold from the shares of Common Stock issuable
      upon exercise of the stock option shares of Common Stock in payment of all
      or
      any part of the exercise price and/or any related withholding-tax obligations,
      which shares shall be valued for this purpose at the Fair Market Value or in
      such other manner as may be authorized from time to time by the Committee.
      Any
      shares of Common Stock delivered by a participant pursuant to clause (b) above
      must have been held by the participant for a period of not less than six (6)
      months prior to the exercise of the option, unless otherwise determined by
      the
      Committee. Prior to the issuance of shares of Common Stock upon the exercise
      of
      a stock option, a participant shall have no rights as a shareholder with respect
      to shares of Common Stock issuable under such stock option. Except as otherwise
      provided in the Plan, no adjustment will be made for dividends or distributions
      declared as of a record date preceding the date on which a participant becomes
      the holder of record of shares of Common Stock acquired upon exercise of a
      stock
      option, except as the Committee may determine in its sole
      discretion.

     

    6.5 Incentive
      Stock Options.
      Notwithstanding anything in the Plan to the contrary, the following additional
      provisions shall apply to the grant of stock options which are intended to
      qualify as incentive stock options (as such term is defined in Section 422
      of
      the Code):

     

    (a) The
      aggregate Fair Market Value (determined as of the time the option is granted)
      of
      the shares of Common Stock with respect to which incentive stock options are
      exercisable for the first time by any participant during any calendar year
      (under the Plan and any other incentive stock-option plans of the Company or
      any
      subsidiary or parent corporation of the Company) shall not exceed $100,000.
      The
      determination will be made by taking incentive stock options into account in
      the
      order in which they were granted. 

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

       

    

    (b) Any
      certificate for an incentive stock option authorized under the Plan shall
      contain such other provisions as the Committee shall deem advisable, but shall
      in all events be consistent with and contain all provisions required in order
      to
      qualify the options as incentive stock options.

     

    (c) All
      incentive stock options must be granted within ten (10) years from the earlier
      of the date on which this Plan was adopted by board of directors or the date
      this Plan was approved by the Company’s shareholders.

     

    (d) Unless
      sooner exercised, all incentive stock options shall expire no later than ten
      (10) years after the date of grant. No incentive stock option may be exercisable
      after ten (10) years from its date of grant (or five (5) years from its date
      of
      grant if, at the time of grant, the participant owns, directly or indirectly,
      more than ten percent (10%) of the total combined voting power of all classes
      of
      stock of the Company or any parent or subsidiary corporation of the
      Company).

     

    (e) The
      exercise price for a share of Common Stock under an incentive stock options
      shall be not less than one hundred percent (100%) of the Fair Market Value
      of
      one share of Common Stock on the date of grant; provided,
      however,
      that
      the exercise price shall be one hundred ten percent (110%) of the Fair Market
      Value if, at the time the incentive stock option is granted, the participant
      owns, directly or indirectly, more than ten percent (10%) of the total combined
      voting power of all classes of stock of the Company or any parent or subsidiary
      corporation of the Company.

     

    7. Stock-Appreciation
      Rights.
      An SAR
      is a right to receive, without payment to the Company, a number of shares of
      Common Stock, cash, or any combination thereof, the amount of which is
      determined pursuant to the formula set forth in Section 7.4.
      An SAR
      may be granted (a) with respect to any stock option granted under this Plan,
      either concurrently with the grant of such stock option or at such later time
      as
      determined by the Committee (as to all or any portion of the shares of Common
      Stock subject to the stock option), or (b) alone, without reference to any
      related stock option. Each SAR granted by the Committee under this Plan shall
      be
      subject to the following terms and conditions:

     

    7.1 Number;
      Exercise Price.
      Each
      SAR granted to any participant shall relate to such number of shares of Common
      Stock as shall be determined by the Committee, subject to adjustment as provided
      in Section 10.6.
      In the
      case of an SAR granted with respect to a stock option, the number of shares
      of
      Common Stock to which the SAR pertains shall be reduced in the same proportion
      that the holder of the option exercises the related stock option. The exercise
      price of an SAR will be determined by the Committee, in its discretion, at
      the
      date of grant but may not be less than one hundred percent (100%) of the Fair
      Market Value of one share of Common Stock on the date of grant.

     

    7.2 Duration.
      Subject
      to earlier termination as provided in Section 10.4,
      the
      term of each SAR shall be determined by the Committee but shall not exceed
      ten
      (10) years and one day from the date of grant. Unless otherwise provided by
      the
      Committee, each SAR shall become exercisable at such time or times, to such
      extent and upon such conditions as the stock option, if any, to which it relates
      is exercisable. The Committee may in its discretion accelerate the
      exercisability of any SAR.

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

       

    

    7.3 Exercise.
      An SAR
      may be exercised, in whole or in part, by giving written notice to the Company,
      specifying the number of SARs which the holder wishes to exercise. Upon receipt
      of such written notice, the Company shall, within ninety (90) days thereafter,
      deliver to the exercising holder certificates for the shares of Common Stock
      or
      cash, or both, as determined by the Committee, to which the holder is entitled
      pursuant to Section 7.4.

     

    7.4 Payment.
      Subject
      to the right of the Committee to deliver cash in lieu of shares of Common Stock
      (which, as it pertains to Company officers and directors, shall comply with
      all
      requirements of the Exchange Act), the number of shares of Common Stock which
      shall be issuable upon the exercise of an SAR shall be determined by
      dividing:

     

    (a) the
      number of shares of Common Stock as to which the SAR is exercised multiplied
      by
      the amount of the appreciation in such shares (i.e., the amount by which the
      Fair Market Value of the shares of Common Stock subject to the SAR on the
      exercise date exceeds (1) in the case of an SAR related to a stock option,
      the
      exercise price of the shares of Common Stock under the stock option or (2)
      in
      the case of an SAR granted alone and without reference to a related stock
      option, an amount which shall be determined by the Committee at the time of
      grant, subject to adjustment under Section 10.6);
      by

     

    (b) the
      Fair
      Market Value of a share of Common Stock on the exercise date.

     

    In
      lieu
      of issuing shares of Common Stock upon the exercise of a SAR, the Committee
      may
      elect to pay the holder of the SAR cash equal to the Fair Market Value on the
      exercise date of any or all of the shares which would otherwise be issuable.
      No
      fractional shares of Common Stock shall be issued upon the exercise of an SAR;
      instead, the holder of the SAR shall be entitled to receive a cash adjustment
      equal to the same fraction of the Fair Market Value of a share of Common Stock
      on the exercise date or to purchase the portion necessary to make a whole share
      at its Fair Market Value on the date of exercise.

     

    8. Stock
      Awards and Restricted Stock.
      A stock
      award consists of the transfer by the Company to a participant of shares of
      Common Stock, without other payment therefor, as additional compensation for
      services rendered to the Company. The participant receiving a stock award will
      have all voting, dividend, liquidation and other rights with respect to the
      shares of Common Stock issued to a participant as a stock award under this
      Section 8
      upon the
      participant becoming the holder of record of such shares. A share of restricted
      stock consists of shares of Common Stock which are sold or transferred by the
      Company to a participant at a price determined by the Committee (which price
      shall be at least equal to the minimum price required by applicable law for
      the
      issuance of a share of Common Stock) and subject to restrictions on their sale
      or other transfer by the participant, which restrictions and conditions may
      be
      determined by the Committee as long as such restrictions and conditions are
      not
      inconsistent with the terms of the Plan. The transfer of Common Stock pursuant
      to stock awards and the transfer and sale of restricted stock shall be subject
      to the following terms and conditions:

     

    8.1 Number
      of Shares.
      The
      number of shares to be transferred or sold by the Company to a participant
      pursuant to a stock award or as restricted stock shall be determined by the
      Committee.

     

    8.2 Sale
      Price.
      The
      Committee shall determine the price, if any, at which shares of restricted
      stock
      shall be sold or granted to a participant, which may vary from time to time
      and
      among participants and which may be below the Fair Market Value of such shares
      of Common Stock at the date of sale.

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

       

    

    8.3 Restrictions.
      All
      shares of restricted stock transferred or sold hereunder shall be subject to
      such restrictions as the Committee may determine, including without limitation
      any or all of the following:

     

    (a) a
      prohibition against the sale, transfer, pledge or other encumbrance of the
      shares of restricted stock, such prohibition to lapse at such time or times
      as
      the Committee shall determine (whether in annual or more frequent installments,
      at the time of the death, disability or retirement of the holder of such shares,
      or otherwise);

     

    (b) a
      requirement that the holder of shares of restricted stock forfeit, or (in the
      case of shares sold to a participant) resell back to the Company at his or
      her
      cost, all or a part of such shares in the event of termination of his or her
      employment or consulting engagement during any period in which such shares
      are
      subject to restrictions; or

     

    (c) such
      other conditions or restrictions as the Committee may deem
      advisable.

     

    In
      order
      to enforce the restrictions imposed by the Committee pursuant to Section
8.3,
      the
      participant receiving restricted stock shall enter into an agreement with the
      Company setting forth the conditions of the grant. Shares of restricted stock
      shall be registered in the name of the participant and deposited, together
      with
      a stock power endorsed in blank, with the Company unless otherwise determined
      by
      the Committee. Each such certificate shall bear a legend in substantially the
      following form:

     

    THE
      TRANSFERABILITY OF THIS CERTIFICATE AND THE SHARES OF COMMON STOCK REPRESENTED
      BY IT ARE SUBJECT TO THE TERMS AND CONDITIONS (INCLUDING CONDITIONS OF
      FORFEITURE) CONTAINED IN THE 2004 STOCK OPTION PLAN OF SPECTRE GAMING, INC.
      (THE
“COMPANY”), AND AN AGREEMENT ENTERED INTO BETWEEN THE REGISTERED OWNER AND THE
      COMPANY. A COPY OF THE 2004 STOCK OPTION PLAN AND THE AGREEMENT IS AVAILABLE
      FROM THE COMPANY UPON REQUEST.

     

    8.4 End
      of
      Restrictions.
      Subject
      to Section 10.5,
      at the
      end of any time period during which the shares of restricted stock are subject
      to forfeiture and restrictions on transfer, such shares will be delivered free
      of all restrictions to the participant or to the participant’s legal
      representative, beneficiary or heir.

     

    8.5 Shareholder.
      Subject
      to the terms and conditions of the Plan, each participant receiving restricted
      stock shall have all the rights of a shareholder with respect to shares of
      stock
      during any period in which such shares are subject to forfeiture and
      restrictions on transfer, including without limitation the right to vote such
      shares. Dividends paid in cash or property other than Common Stock with respect
      to shares of restricted stock shall be paid to the participant currently. Unless
      the Committee determines otherwise in its sole discretion, any dividends or
      distributions (including regular quarterly cash dividends) paid with respect
      to
      shares of Common Stock subject to the restrictions set forth above will be
      subject to the same restrictions as the shares to which such dividends or
      distributions relate. In the event the Committee determines not to pay dividends
      or distributions currently, the Committee will determine in its sole discretion
      whether any interest will be paid on such dividends or distributions. In
      addition, the Committee in its sole discretion may require such dividends and
      distributions to be reinvested (and in such case the participant consents to
      such reinvestment) in shares of Common Stock that will be subject to the same
      restrictions as the shares to which such dividends or distributions
      relate.

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

       

    

    9. Performance
      Shares.
      A
      performance share consists of an award which shall be paid in shares of Common
      Stock, as described below. The grant of a performance share shall be subject
      to
      such terms and conditions as the Committee deems appropriate, including the
      following:

     

    9.1 Performance
      Objectives.
      Each
      performance share will be subject to performance objectives respecting the
      Company or one of its operating units to be achieved by the participant before
      the end of a specified period. The Committee shall determine the terms and
      conditions of each grant and the number of performance shares granted. If the
      performance objectives are achieved, the participant will be paid in shares
      of
      Common Stock or cash as determined by the Committee. If such objectives are
      not
      met, each grant of performance shares may provide for lesser payments in
      accordance with formulas established in the award.

     

    9.2 Not
      Shareholder.
      The
      grant of performance shares to a participant shall not create any rights in
      such
      participant as a shareholder of the Company, until the payment of shares of
      Common Stock with respect to an award.

     

    9.3 No
      Adjustments.
      No
      adjustment shall be made in performance shares granted on account of cash
      dividends which may be paid or other rights which may be issued to the holders
      of Common Stock prior to the end of any period for which performance objectives
      were established.

     

    9.4 Expiration
      of Performance Share.
      If any
      participant’s employment or consulting engagement with the Company is terminated
      for any reason other than normal retirement, death or disability prior to the
      achievement of the participant’s stated performance objectives, all the
      participant’s rights on the performance shares shall expire and terminate unless
      otherwise determined by the Committee. In the event of termination of employment
      or consulting by reason of death, disability, or normal retirement, the
      Committee, in its own discretion may determine what portions, if any, of the
      performance shares should be paid to the participant.

     

    10. General.

     

    10.1 Effective
      Date.
      The
      Plan will become effective upon approval by the Company’s board of directors;
      and the ability of the Company to make grants of incentive stock options
      hereunder will become effective upon approval of the Company’s shareholders
      within one year of the date of this Plan’s adoption by the Board.

     

    10.2 Duration.
      The
      Plan shall remain in effect until all Incentives granted under the Plan have
      either been satisfied by the issuance of shares of Common Stock or the payment
      of cash or have been terminated under the terms of the Plan and all restrictions
      imposed on shares of Common Stock in connection with their issuance under the
      Plan have lapsed. No Incentives may be granted under the Plan after the tenth
      anniversary of the date the Plan is approved by the shareholders of the
      Company.

     

    10.3 Non-Transferability
      of Incentives.
      No
      stock option, SAR, restricted stock or performance award may be transferred,
      pledged or assigned by the holder thereof (except, in the event of the holder’s
      death, by will or the laws of descent and distribution to the limited extent
      provided in the Plan or the Incentive), or pursuant to a qualified domestic
      relations order as defined by the Code or Title I of the Employee Retirement
      Income Security Act, or the rules thereunder, and the Company shall not be
      required to recognize any attempted assignment of such rights by any
      participant. Notwithstanding the preceding sentence, stock options may be
      transferred by the holder thereof to Employee’s spouse, children, grandchildren
      or parents (collectively, the “Family Members”), to trusts for the benefit of
      Family Members, to partnerships or limited liability companies in which Family
      Members are the only partners or shareholders, or to entities exempt from
      federal income taxation pursuant to Code Section 501(c)(3). During a
      participant’s lifetime, a stock option may be exercised only by him or her, by
      his or her guardian or legal representative or by the transferees permitted
      by
      the preceding sentence

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

       

    

    10.4 Effect
      of Termination or Death.
      In the
      event that a participant ceases to be an employee of or consultant to the
      Company, or the participant’s other service with the Company is terminated, for
      any reason, including death, any Incentives may be exercised or shall expire
      at
      such times as may be determined by the Committee in its sole discretion in
      the
      agreement evidencing an Incentive. Notwithstanding the other provisions of
      this
      Section 10.4,
      upon a
      participant’s termination of employment or other service with the Company and
      all subsidiaries, the Committee may, in its sole discretion (which may be
      exercised at any time on or after the date of grant, including following such
      termination), cause options and SARs (or any part thereof) then held by such
      participant to become or continue to become exercisable and/or remain
      exercisable following such termination of employment or service and restricted
      stock awards, performance shares and stock awards then held by such participant
      to vest and/or continue to vest or become free of transfer restrictions, as
      the
      case may be, following such termination of employment or service, in each case
      in the manner determined by the Committee; provided,
      however,
      that no
      Incentive may remain exercisable or continue to vest beyond its expiration
      date.
      Any incentive stock option that remains unexercised more than one (1) year
      following termination of employment by reason of death or disability or more
      than three (3) months following termination for any reason other than death
      or
      disability will thereafter be deemed to be a non-statutory stock
      option. 

     

    10.5 Additional
      Conditions.
      Notwithstanding anything in this Plan to the contrary: (a) the Company may,
      if
      it shall determine it necessary or desirable for any reason, at the time of
      award of any Incentive or the issuance of any shares of Common Stock pursuant
      to
      any Incentive, require the recipient of the Incentive, as a condition to the
      receipt thereof or to the receipt of shares of Common Stock issued pursuant
      thereto, to deliver to the Company a written representation of present intention
      to acquire the Incentive or the shares of Common Stock issued pursuant thereto
      for his or her own account for investment and not for distribution; and (b)
      if
      at any time the Company further determines, in its sole discretion, that the
      listing, registration or qualification (or any updating of any such document)
      of
      any Incentive or the shares of Common Stock issuable pursuant thereto is
      necessary on any securities exchange or under any federal or state securities
      law, or that the consent or approval of any governmental regulatory body is
      necessary or desirable as a condition of, or in connection with the award of
      any
      Incentive, the issuance of shares of Common Stock pursuant thereto, or the
      removal of any restrictions imposed on such shares, such Incentive shall not
      be
      awarded or such shares of Common Stock shall not be issued or such restrictions
      shall not be removed, as the case may be, in whole or in part, unless such
      listing, registration, qualification, consent or approval shall have been
      effected or obtained free of any conditions unacceptable to the Company.
      Notwithstanding any other provision of the Plan or any agreements entered into
      pursuant to the Plan, the Company will not be required to issue any shares
      of
      Common Stock under this Plan, and a participant may not sell, assign, transfer
      or otherwise dispose of shares of Common Stock issued pursuant to any Incentives
      granted under the Plan, unless (a) there is in effect with respect to such
      shares a registration statement under the Securities Act of 1933, as amended
      (the “Securities Act”), and any applicable state or foreign securities laws or
      an exemption from such registration under the Securities Act and applicable
      state or foreign securities laws, and (b) there has been obtained any other
      consent, approval or permit from any other regulatory body which the Committee,
      in its sole discretion, deems necessary or advisable. The Company may condition
      such issuance, sale or transfer upon the receipt of any representations or
      agreements from the parties involved, and the placement of any legends on
      certificates representing shares of Common Stock, as may be deemed necessary
      or
      advisable by the Company in order to comply with such securities law or other
      restrictions.

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

       

    

    10.6 Adjustment.
      In the
      event of any recapitalization, stock dividend, stock split, combination of
      shares or other change in the Common Stock, the number of shares of Common
      Stock
      then subject to the Plan, including shares subject to restrictions, options
      or
      achievements of performance shares, shall be adjusted in proportion to the
      change in outstanding shares of Common Stock. In the event of any such
      adjustments, the purchase price of any option, the performance objectives of
      any
      Incentive, and the shares of Common Stock issuable pursuant to any Incentive
      shall be adjusted as and to the extent appropriate, in the discretion of the
      Committee, to provide participants with the same relative rights before and
      after such adjustment.

     

    10.7 Incentive
      Plans and Agreements.
      Except
      in the case of stock awards or cash awards, the terms of each Incentive shall
      be
      stated in a plan or agreement approved by the Committee. The Committee may
      also
      determine to enter into agreements with holders of options to reclassify or
      convert certain outstanding options, within the terms of the Plan, as Incentive
      Stock Options or as non-statutory stock options and in order to eliminate SARs
      with respect to all or part of such options and any other previously issued
      options.

     

    10.8 Withholding.

     

    (a) The
      Company shall have the right to (i) withhold and deduct from any payments made
      under the Plan or from future wages of the participant (or from other amounts
      that may be due and owing to the participant from the Company or a subsidiary
      of
      the Company), or make other arrangements for the collection of, all legally
      required amounts necessary to satisfy any and all foreign, federal, state and
      local withholding and employment-related tax requirements attributable to an
      Incentive, or (ii) require the participant promptly to remit the amount of
      such
      withholding to the Company before taking any action, including issuing any
      shares of Common Stock, with respect to an Incentive. At any time when a
      participant is required to pay to the Company an amount required to be withheld
      under applicable income tax laws in connection with a distribution of Common
      Stock or upon exercise of an option or SAR, the participant may satisfy this
      obligation in whole or in part by electing (the “Election”) to have the Company
      withhold from the distribution shares of Common Stock having a value up to
      the
      amount required to be withheld. The value of the shares to be withheld shall
      be
      based on the Fair Market Value of the Common Stock on the date that the amount
      of tax to be withheld shall be determined
      (the “Tax Date”).

     

    (b) The
      Committee may disapprove of any Election, may suspend or terminate the right
      to
      make Elections, or may provide with respect to any Incentive that the right
      to
      make Elections shall not apply to such Incentive. An Election is
      irrevocable.

     

    (c) If
      a
      participant is a Company officer or director within the meaning of Section
      16 of
      the Exchange Act, then an Election is subject to the following additional
      restrictions: (a) no Election shall be effective for a Tax Date which occurs
      within six (6) months of the grant or exercise of the award, except that this
      limitation shall not apply in the event death or disability of the participant
      occurs prior to the expiration of the six-month period; and (b) the Election
      must be made either six months prior to the Tax Date or must be made during
      a
      period beginning on the third business day following the date of release for
      publication of the Company’s quarterly or annual summary statements of sales and
      earnings and ending on the twelfth business day following such
      date.

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

       

    

    10.9 No
      Continued Employment, Engagement or Right to Corporate Assets.
      No
      participant under the Plan shall have any right, because of his or her
      participation, to continue in the employ of the Company for any period of time
      or to any right to continue his or her present or any other rate of
      compensation. Nothing contained in the Plan shall be construed as giving an
      employee, a consultant, such persons’ beneficiaries or any other person any
      equity or interests of any kind in the assets of the Company or creating a
      trust
      of any kind or a fiduciary relationship of any kind between the Company and
      any
      such person.

     

    10.10 Deferral
      Permitted.
      Payment
      of cash or distribution of any shares of Common Stock to which a participant
      is
      entitled under any Incentive shall be made as provided in the Incentive. Payment
      may be deferred at the option of the participant if provided in the
      Incentive.

     

    10.11 Amendment
      of the Plan.
      The
      Board may amend, suspend or discontinue the Plan at any time; provided, however,
      that no amendments to the Plan will be effective without approval of the
      shareholders of the Company if shareholder approval of the amendment is then
      required pursuant to Section 422 of the Code or the rules of any stock exchange
      or Nasdaq or similar regulatory body. No termination, suspension or amendment
      of
      the Plan may adversely affect any outstanding Incentive without the consent
      of
      the affected participant; provided,
      however,
      that
      this sentence will not impair the right of the Committee to take whatever action
      it deems appropriate under Section 10.6
      of the
      Plan.

     

    10.12 Merger,
      Sale, Exchange or Liquidation.
      Unless
      otherwise provided in the agreement for an Incentive, in the event of an
      acquisition of the Company through the sale of substantially all of the
      Company’s assets or through a merger, exchange, reorganization or liquidation of
      the Company or a similar event as determined by the Committee (collectively
      a
“transaction”), the Committee shall be authorized, in its sole discretion, to
      take any and all action it deems equitable under the circumstances, including
      but not limited to any one or more of the following:

     

    (a) providing
      that the Plan and all Incentives shall terminate and the holders of (i) all
      outstanding vested options shall receive, in lieu of any shares of Common Stock
      they would be entitled to receive under such options, such stock, securities
      or
      assets, including cash, as would have been paid to such participants if their
      options had been exercised and such participant had received Common Stock
      immediately prior to such transaction (with appropriate adjustment for the
      exercise price, if any), (ii) performance shares and/or SARs that entitle the
      participant to receive Common Stock shall receive, in lieu of any shares of
      Common Stock each participant was entitled to receive as of the date of the
      transaction pursuant to the terms of such Incentive, if any, such stock,
      securities or assets, including cash, as would have been paid to such
      participant if such Common Stock had been issued to and held by the participant
      immediately prior to such transaction, and (iii) any Incentive under this
      Agreement which does not entitle the participant to receive Common Stock shall
      be equitably treated as determined by the Committee;

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

       

    

    (b) providing
      that participants holding outstanding vested Common Stock based Incentives
      shall
      receive, with respect to each share of Common Stock issuable pursuant to such
      Incentives as of the effective date of any such transaction, at the
      determination of the Committee, cash, securities or other property, or any
      combination thereof, in an amount equal to the excess, if any, of the Fair
      Market Value of such Common Stock on a date within ten days prior to the
      effective date of such transaction over the option price or other amount owed
      by
      a participant, if any, and that such Incentives shall be cancelled, including
      the cancellation without consideration of all options that have an exercise
      price below the per share value of the consideration received by the Company
      in
      the transaction;

     

    (c) providing
      that the Plan (or replacement plan) shall continue with respect to Incentives
      not cancelled or terminated as of the effective date of such transaction and
      provide to participants holding such Incentives the right to earn their
      respective Incentives on a substantially equivalent basis (taking into account
      the transaction and the number of shares or other equity issued by such
      successor entity) with respect to the equity of the entity succeeding the
      Company by reason of such transaction; or

     

    (d) providing
      that all unvested, unearned or restricted Incentives, including but not limited
      to restricted stock for which restrictions have not lapsed as of the effective
      date of such transaction, shall be void and deemed terminated, or, in the
      alternative, for the acceleration or waiver of any vesting, earning or
      restrictions on any Incentive.

     

    The
      Board
      may restrict the rights of participants or the applicability of this Section
      10.12
      to the
      extent necessary to comply with Section 16(b) of the Securities Exchange Act
      of
      1934, the Code or any other applicable law or regulation. The grant of an
      Incentive award pursuant to the Plan shall not limit in any way the right or
      power of the Company to make adjustments, reclassifications, reorganizations
      or
      changes of its capital or business structure or to merge, exchange or
      consolidate or to dissolve, liquidate, sell or transfer all or any part of
      its
      business or assets.

     

    10.13 Definition
      of Fair Market Value.
      For
      purposes of this Plan, the “Fair Market Value” of a share of Common Stock at a
      specified date shall, unless otherwise expressly provided in this Plan, be
      the
      amount which the Committee or the Company’s board of directors determines in
      good faith in the exercise of its reasonable discretion to be one hundred
      percent (100%) of the fair market value of such a share as of the date in
      question; provided,
      however,
      that
      notwithstanding the foregoing, if such shares are listed on a U.S. securities
      exchange or are quoted on the Nasdaq National Market System, Nasdaq SmallCap
      Stock Market (“Nasdaq”), or the Over-The-Counter Bulletin Board (“OTCBB”), then
      Fair Market Value shall be determined by reference to the last sale price of
      a
      share of Common Stock on such U.S. securities exchange or Nasdaq, or the average
      of the bid and ask price on the OTCBB, on the applicable date. If such U.S.
      securities exchange or Nasdaq is closed for trading on such date, or if the
      Common Stock does not trade on such date, then the last sale price used shall
      be
      the one on the date the Common Stock last traded on such U.S. securities
      exchange or Nasdaq.

     

    10.14 Breach
      of Confidentiality, Assignment of Inventions, or Non-Compete
      Agreements.
      Notwithstanding anything in the Plan to the contrary, in the event that a
      participant materially breaches the terms of any confidentiality,
      assignment-of-inventions, or noncompete agreement entered into with the Company
      or any parent or subsidiary of the Company, whether such breach occurs before
      or
      after termination of such participant’s employment or other service with the
      Company or any subsidiary, the Committee in its sole discretion may immediately
      terminate all rights of the participant under the Plan and any agreements
      evidencing an Incentive then held by the participant without notice of any
      kind.

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

       

    

    10.15 Governing
      Law.
      The
      validity, construction, interpretation, administration and effect of the Plan
      and any rules, regulations and actions relating to the Plan will be governed
      by
      and construed exclusively in accordance with the laws of the State of Minnesota,
      notwithstanding the conflicts-of-law principles of Minnesota or any other
      jurisdiction.

     

    10.16 Successors
      and Assigns.
      The
      Plan will be binding upon and inure to the benefit of the successors and
      permitted assigns of the Company and the participants in the Plan.Unassociated Document

    Exhibit
      10.1

     

    AMENDMENT
      TO EMPLOYMENT LETTER DATED MAY 5, 2004

     

    This
      26th
      date of
      September, 2006, GIGABEAM CORPORATION, a Delaware corporation, with its
      corporate headquarters located at 470 Springpark Place, Suite 900, Herndon,
      Virginia, 20170, its successors and assigns (hereinafter collectively referred
      to as “Company”), and DON E. PECK, an individual residing at 1309 Ballyclare
      Court, Raleigh, North Carolina, 27614 (“Executive”), taking into consideration
      certain current financial exigencies affecting the Company, and intending to
      be
      legally bound hereby, agree to amend the Employment Letter of May 5, 2004
      between them, as follows:

     

    Effective
      September 26, 2006, the annual base salary, as adjusted and provided for in
      Item
      4 of the Employment Letter shall be reduced by twenty-five (25%)
      percent.

     

    IN
      WITNESS WHEREOF, the parties have executed and delivered this amendment, as
      of
      the date first above written.

    
      	 	 	 
	 	GIGABEAM
              CORPORATION
	 
 	 
 	 
 
	 	By:  	/s/
              Douglas G.
              Lockie                     
              
	 	Douglas G. Lockie
	 	President
              and
              Chief Technology Officer
	 	 
	 	 
	 	DON E. PECK 
	 	/s/Don E.
              Peck

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}]]