Document:

parl_ex1096.htm

 

Exhibit 10.96

FIRST AMENDMENT TO CREDIT AGREEMENT

 

THIS FIRST AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is made and entered into as of April 15, 2011 among PARLUX LTD., a Delaware corporation (“Borrower”), each of the other Loan Parties signatory hereto, and GENERAL ELECTRIC CAPITAL CORPORATION, a Delaware corporation, for itself, as a Lender, and as the Administrative Agent for the Lenders party from time to time to the Credit Agreement described below (in such capacity, the “Administrative Agent”).

 

W I T N E S S E T H:

 

WHEREAS, Borrower, the other Loan Parties, the Lenders signatory thereto and Administrative Agent are parties to that certain Credit Agreement dated as of June 25, 2010 (as amended or supplemented from time to time, the “Credit Agreement”; capitalized terms used herein and not otherwise defined herein shall have the meanings given such terms in the Credit Agreement), pursuant to which the Lenders committed to make certain loans available to Borrower upon the terms and conditions set forth therein;

 

WHEREAS, the Loan Parties have requested that the Lenders and the Administrative Agent amend the Credit Agreement as provided herein, and the Lenders and the Administrative Agent are willing to consent to such request, all in accordance with, and subject to the terms and conditions set forth in, this Amendment;

 

NOW, THEREFORE, in consideration of the premises, the covenants and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto do hereby agree:

 

1.           Amendments to the Credit Agreement.   Subject to the terms and conditions of this Amendment, including without limitation the fulfillment of the conditions precedent to the effectiveness of this Amendment set forth in Section 4 below, the Credit Agreement is hereby amended as follows:

(a)           Section 6.1(k) is hereby amended by deleting such subsection in its entirety and substituting in lieu thereof the following:

“(k)           Borrowing Base Certificate.  As soon as available and in any event within one (1) Business Day after the end of each calendar week (or within five (5) Business Day after the end of each fiscal month if and for so long as the Revolving Credit Outstandings are zero), and at such other times as the Administrative Agent may reasonably require, a Borrowing Base Certificate, certified on behalf of the Borrower by a Responsible Officer, setting forth the Borrowing Base as at the end of the most-recently ended week (or fiscal month if applicable) or as at such other date as the Administrative Agent may reasonably require.”

 

 

  

  

  

(b)           Section 7.11(a) is hereby amended by deleting such section in its entirety and substituting in lieu thereof the following:

“Section 7.11  Deposit Accounts; Securities Accounts; Cash Collateral Accounts; Maximum Cash and Cash Equivalents.  (a)  Each Group Member (other than Excluded Foreign Subsidiaries) shall have a lockbox arrangement reasonably satisfactory to the Administrative Agent in place on the date of this Agreement with a depository institution reasonably satisfactory to the Administrative Agent for the receipt of payments on its Accounts in the form of checks and other written instruments for the payment of money and commencing on the date of this Agreement each such Group Member shall direct its Account Debtors to send such items to such lockbox for collection and clearance, and commencing 90 days after the date of this Agreement such Group Member shall take such reasonable steps as may be necessary to ensure that all of its Account Debtors send such items directly to such lockbox or pay their Accounts by wire or automated clearinghouse transfers directly to a Controlled Deposit Account.   Each Group Member (other than Excluded Foreign Subsidiaries) shall deposit all payments received by it in one or more deposit accounts that are Controlled Deposit Accounts; provided, however, that each such Group Member may maintain zero-balance deposit accounts for the purpose of managing local disbursements and may maintain payroll, withholding tax and other fiduciary accounts.  Each Group Member (other than Excluded Foreign Subsidiaries) shall deposit all of its Cash Equivalents in securities accounts that are Controlled Securities Accounts, in each case except for cash and Cash Equivalents the aggregate value of which does not exceed $100,000 at any time.  Each Group Member (other than Excluded Foreign Subsidiaries) shall enter into, and cause each depository or other financial institution that holds any Controlled Deposit Accounts or Controlled Securities Accounts of such Group Member to enter into, Control Agreements providing for (i) “full” cash dominion with respect to each non-disbursement deposit account maintained by such Group Member as of or after the date of this Agreement; provided, however, that each such account may be subject to “springing” cash dominion if and for so long as either (x) the Net Liquidity is not less than $15,000,000 at all times during the immediately preceding 30 days, or (y) the aggregate Revolving Credit Outstandings are either not (1) more than $3,000,000 at any time during the immediately preceding 30 days, or (2) greater than zero at any time during the immediately preceding 5 days, or (3) more than $250,000 at any time so long as no Default or Event of Default exists, (ii) “springing” cash dominion with respect to each disbursement deposit account maintained by such Group Member as of or after the date of this Agreement other than the Group Members’ payroll account (so long as such payroll account is used only for such purpose and the balance of funds at any time on deposit therein does not exceed the amount necessary to pay the Group Members’ current or reasonably anticipated payroll liabilities) and their withholding tax, customs and fiduciary accounts and (iii) “springing” dominion with respect to each securities, commodity or similar account maintained by such Group Member as of or after the date of this Agreement.  With respect to any deposit, securities, commodity or similar accounts subject to such “springing” Control Agreements, the Administrative Agent shall not deliver to the relevant depository or other financial institution a notice or other instruction which provides for exclusive control over such account by the Administrative Agent unless and until an Event of Default has occurred and is continuing.  Each Group Member shall close any deposit accounts it has with Branch Bank & Trust Company within 10 days after the date of this Agreement.”

  

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2.           No Other Amendments or Waivers.  Except for the amendments set forth and referred to in Section 1 hereof, the Credit Agreement shall remain unchanged and in full force and effect.  Nothing in this Amendment is intended or shall be construed to be a novation of any Obligations or any part of the Credit Agreement or any of the other Loan Documents or to affect, modify or impair the continuity or perfection of the Administrative Agent’s Liens under the Collateral Documents.

 

3.           Representations and Warranties.   (a)  In order to induce the Administrative Agent and the Lenders to enter into this Amendment, the Loan Parties hereby represent and warrant to and in favor of the Administrative Agent and the Lenders as follows:

 

(i)           Each of the representations and warranties of each Loan Party contained in any of the Loan Documents is true and correct in all material respects on and as of the date hereof, except for any representation and warranty that relates by its terms only to a specified date (in which case, it shall be true and correct in all material respects on and as of such date);

 

(ii)           The execution, delivery and performance by each Loan Party of this Amendment (i) are within such Loan Party’s corporate or similar powers and, at the time of execution thereof, have been duly authorized by all necessary corporate and similar action (including, if applicable, consent of holders of its Securities), (ii) do not (A) contravene such Loan Party’s Constituent Documents, (B) violate any applicable Requirement of Law, (C) conflict with, contravene, constitute a default or breach under, or result in or permit the termination or acceleration of, any material Contractual Obligation of any Loan Party or any of its Subsidiaries (including other Loan Documents) other than those that would not, in the aggregate, have a Material Adverse Effect and are not created or caused by, or a conflict, breach, default or termination or acceleration event under, any Loan Document or (D) result in the imposition of any Lien (other than a Permitted Lien) upon any property of any Loan Party or any of its Subsidiaries and (iii) do not require any Permit of, or filing with, any Governmental Authority or any consent of, or notice to, any Person, other than the filings required to perfect the Liens created by the Loan Documents;

 

(iii)           From and after its delivery to the Administrative Agent, this Amendment has been duly executed and delivered to the other parties thereto by each Loan Party party thereto, is the legal, valid and binding obligation of such Loan Party and is enforceable against such Loan Party in accordance with its terms, subject, as to enforcement of remedies, to the following qualifications:  (i) an order of specific performance and an injunction are discretionary remedies and, in particular, may not be available where damages are considered an adequate remedy at law, and (ii) enforcement may be limited by bankruptcy, insolvency, liquidation, reorganization, reconstruction and other similar laws affecting enforcement of creditors’ rights generally (insofar as any such law relates to the bankruptcy, insolvency or similar event of any of the Loan Parties); and

 

  

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(iv)           No Default exists both before and after giving effect to this Amendment.

 

(b)           The failure of any representation, warranty or certification contained in this Section 3 made by or on behalf of any Loan Party to be correct in any material respect when made or deemed made shall be an Event of Default under the Credit Agreement.

 

(c)           All representations and warranties made by any Loan Party in this Amendment or any other document furnished in connection with this Amendment shall survive the execution and delivery of this Amendment and the other documents, and no investigation by the Administrative Agent or any Lender shall affect the representations and warranties or the right of the Administrative Agent and the Lenders to rely upon them.

 

4.           Conditions Precedent.  The effectiveness of this Amendment is subject to:

 

(a)           receipt by the Administrative Agent of one or more counterparts of this Amendment duly executed and delivered by the Loan Parties;

 

(b)           receipt by the Administrative Agent of all reasonable attorneys’ fees and expenses due and payable on the date hereof;

 

(c)           receipt by the Administrative Agent of a duly executed Control Agreement with PNC Bank, National Association in form and substance reasonably satisfactory to Administrative Agent; and

 

(d)           receipt of any other documents or instruments that the Administrative Agent may reasonably request

 

5.           Ratification and Acknowledgment.  Each of Borrower and the other Loan Parties hereby ratifies and reaffirms each and every term, covenant and condition (as modified by this Amendment, to the extent applicable) set forth in the Credit Agreement and all other Loan Documents executed or delivered by Borrower or such other Loan Party.

 

6.           Strict Compliance.  The Administrative Agent and the Lenders hereby notify the Borrower and each other Loan Party that, effective from and after the date of this Amendment, the Administrative Agent and the Lenders intend to enforce all of the provisions of the Loan Documents (as amended by this Amendment) and that the Administrative Agent and the Lenders expect that Borrower and the other Loan Parties will strictly comply with the terms of the Loan Documents (as amended by this Amendment) from and after this date.

 

  

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7.           Reimbursement of Expenses.  Borrower hereby agrees to reimburse the Administrative Agent on demand for all reasonable fees and reasonable out-of-pocket costs and expenses (including without limitation the reasonable and actual fees and expenses of its counsel) incurred by the Administrative Agent in connection with the negotiation, documentation and consummation of this Amendment and the other documents executed in connection herewith and the transactions contemplated hereby.

 

 

8.           Release and Covenant Not to Sue.   (a)    Each Loan Party, on behalf of itself and its successors, assigns and other legal representatives, hereby absolutely, unconditionally and irrevocably releases and discharges each of the Administrative Agent, the Lenders and their respective present and former directors, shareholders, officers, employees, agents, representatives, successors and assigns (collectively, the “Releasees”, and each, a “Releasee”), from any and all actions, causes of action, claims, debts, damages, demands, liabilities, obligations, and suits, of whatever kind or nature, in law or equity of such Loan Party, whether now known or unknown to such Loan Party, and whether contingent or matured (collectively, “Claims”):  (a) in respect of the Credit Agreement, the Loan Documents, or the actions or omissions of the Administrative Agent, any Lender or any other Releasee in respect of the Credit Agreement and the Loan Documents; and (b) arising from events occurring prior to the date of this Amendment; provided that nothing in this Section 8 shall release the Administrative Agent or any Lender from of any of its contractual obligations to any Loan Party under the Credit Agreement or any other Loan Document.

 

(b)           Each Loan Party, on behalf of itself and its successors, assigns and other legal representatives, hereby absolutely, unconditionally and irrevocably covenants and agrees with and in favor of each Releasee that such Loan Party will not sue (at law, in equity, in any regulatory proceeding or otherwise) any Releasee on the basis of any Claim released and discharged by such Loan Party pursuant to Section 8(a) above.  If any Loan Party or any of its successors, assigns or other legal representative violates the foregoing covenant, such Loan Party, for itself and its successors, assigns and legal representatives, agrees to pay, in addition to such other damages as any Releasee may sustain as a result of such violation, all reasonable attorneys’ fees and costs incurred by any affected Releasee as a result of such violation.

 

(c)           Each Loan Party understands, acknowledges and agrees that the release of claims and covenant not to sue set forth in Sections 8(a) and (b) above may be pleaded as a full and complete defense and may be used as a basis for an injunction against any action, suit or other proceeding which may be instituted, prosecuted or attempted in breach of the provisions of such release.

 

(d)           Each Loan Party agrees that no fact, event, circumstance, evidence or transaction which could now be asserted or which may hereafter be discovered shall affect in any manner the final, absolute and unconditional nature of the release of claims and the covenant not to sue set forth in Sections 8(a) and (b) above.

 

9.           Governing Law.  THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN THAT STATE AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA.

 

  

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10.           Severability of Provisions.  Any provision of this Amendment which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction.  To the extent permitted by applicable law, the Borrower hereby waives any provision of law that renders any provision hereof prohibited or unenforceable in any respect.

 

11.           Counterparts.  This Amendment may be executed in any number of several counterparts, all of which shall be deemed to constitute but one original and shall be binding upon all parties, their successors and permitted assigns.  Delivery of an executed signature page to this Amendment by facsimile transmission or other electronic image scan transmission (e.g., “PDF” or “tif” via electronic mail) shall be as effective as delivery of a manually signed counterpart of this Amendment.

 

12.           Entire Agreement.  The Credit Agreement, as amended through this Amendment, and the other Loan Documents embody the entire agreement among the parties hereto relating to the subject matter thereof and supersede all prior agreements, representations and understandings, if any, relating to the subject matter thereof.

 

13.           No Strict Construction.  The parties hereto have participated jointly in the negotiation and drafting of this Amendment.  In the event an ambiguity or question of intent or interpretation arises, this Amendment shall be construed as if drafted jointly by the parties hereto and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Amendment.

 

[Remainder of page intentionally blank; next pages are the signature pages]

 

 

  

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IN WITNESS WHEREOF, the parties have caused this Amendment to be duly executed by their respective officers or representatives thereunto duly authorized, as of the date first above written.

 

	 	 
PARLUX LTD.

	 
	 	 	 	 
	
 

	
By: 

	/s/ Raymond Balsys	 
	 	Name: 	Raymond Balsys	 
	 	Title: 	CFO	 

 

	 	 
PARLUX FRAGRANCES, INC.

	 
	 	 	 	 
	
 

	
By: 

	/s/ Raymond Balsys	 
	 	Name: 	Raymond Balsys	 
	 	Title: 	CFO	 
	 	 	 	 

 

 

 

[Signature page continues]

 

 

 PARLUX

 FIRST AMENDMENT TO CREDIT AGREEMENT

 SIGNATURE PAGE

 

  

  

  

 

 

 

	 	
GENERAL ELECTRIC CAPITAL CORPORATION,

as Administrative Agent, and as a Lender

	 
	 	 	 	 
	
 

	
By: 

	/s/ Donald J. Cavanaugh	 
	 	Name: 	Donald J. Cavanagh	 
	 	Title: 	Duly Authorized Signatory	 
	 	 	 	 

 

 

 

 

 

PARLUX

 FIRST AMENDMENT TO CREDIT AGREEMENT

 SIGNATURE PAGEExhibit 10.1

                         COMPETITIVE TECHNOLOGIES, INC.
                  2011 EMPLOYEES', DIRECTORS' AND CONSULTANTS'
                               STOCK OPTION PLAN

Upon adoption by the Board of Directors, this 2011 Employees', Directors' And
Consultants' Stock Option Plan (the "Plan") authorizes Competitive Technologies,
Inc. to issue options to purchase up to 1,000,000 shares of common stock, on
terms to be determined pursuant to option agreements, to its Employees,
Directors, and Consultants subject to the following terms.

1.     Purpose  of  the  Plan.

     The  purpose  of  the  Plan is to enable the Company to attract, retain and
motivate  its employees, directors and qualified consultants by providing for or
increasing  the  proprietary  interests  of  such  employees,  directors  and
consultants  in  the  Company  through  increased  stock  ownership.

     The  Plan  provides for options which either (i) qualify as incentive stock
options  ("Incentive Options") within the meaning of that term in Section 422 of
the  Internal  Revenue Code of 1986, as amended, or (ii) do not so qualify under
Section  422 of the Code ("Nonstatutory Options") (collectively "Options").  Any
Option  granted  under this Plan will be clearly identified at the time of grant
as  to whether it is intended to be either an Incentive Option or a Nonstatutory
Option.

2.     Definitions.

     The following terms, when appearing in the text of this Plan in capitalized
form,  will  have  the  meanings  set  out  below:

     (a)      "Board"  means  the  Board  of  Directors  of  the  Company.

     (b)     "Code"  means  the  Internal Revenue Code of 1986, as heretofore or
hereafter  amended.

     (c)     "Committee"  means the committee appointed by the Board pursuant to
Section  3  below.

     (d)     "Company"  means  Competitive  Technologies,  Inc. or any parent or
"subsidiary corporation," as that term is defined by Section 424(f) of the Code,
thereof,  unless  the  context  requires  it  to  be  limited  to  Competitive
Technologies,  Inc

     (e)     "Consultants"  means the class of persons consisting of individuals
engaged  by  the  Company  by  contract  or otherwise to provide services to the
Company  as  the  Committee  shall  so  determine.

     (f)     "Directors"  means  the  class of persons consisting of individuals
duly  elected  to  and  actively  serving  on  the Company's Board of Directors.

     (g)     "Disabled  Grantee"  means  a  Grantee  who  is disabled within the
meaning  of  Section  422(c)(6)  of  the  Code.

     (h)     "Employees"  means the class of employees consisting of individuals
regularly  employed  by  the  Company  on  a  full-time  salaried  basis who are
identified  as  key employees, or such other employees as the Committee shall so
determine.

     (i)     "Executive Officer" means those individuals who, on the last day of
the  taxable year at issue:  (i) served as the Company's chief executive officer
or  was  acting  in  a  similar  capacity,  regardless  of

2011  Employees'  Directors'  and  Consultants Stock Option Plan     Page 1 of 9
<PAGE>
compensation level; and (ii) the four most highly compensated executive officers
(other  than the chief executive officer) all as determined pursuant to Treasury
Regulation  1.162-27(c)(2).

     (j)     "Fair  Market Value" means, with respect to the common stock of the
Company,  the  price  at which the stock would change hands between an informed,
able  and  willing  buyer  and seller, neither of which is under a compulsion to
enter  into the transaction.  Fair Market Value will be determined in good faith
by  the Committee in accordance with a valuation method which is consistent with
the  guidelines  set  forth  in  Treasury  Regulation  1.421-7  (e)  (2)  or any
applicable  regulations  issued  pursuant  to  Section 422(a) of the Code.  Fair
Market  Value  will be determined without regard to any restriction other than a
restriction  which,  by  its  terms,  will  never  lapse.

     (k)     "Grantee"  means an eligible Employee, Director or Consultant under
this  Plan  who  has  been  granted  an  Option.

     (l)     "Incentive  Option"  means an Option that qualifies for the benefit
described  in  Section  421  of  the  Code,  by  virtue  of  compliance with the
provisions  of  Section  422  of  the  Code.

     (m)     "Nonstatutory  Option"  means  an  Option  that is not an Incentive
Option.

     (n)     "Option"  means either an Incentive Option or a Nonstatutory Option
granted  under  this  Plan.

     (o)     "Option  Agreement"  means  the  agreement entered into between the
Company and an individual Grantee and specifying the terms and conditions of the
Option  granted  to  the  Grantee,  which  terms  and  conditions will recite or
incorporate by reference:  (i) the provisions of this Plan which are not subject
to  variation; and (ii) the variable terms and conditions of each Option granted
hereunder  which  will  apply  to  that  Grantee.

     (p)     "Optionee"  means  a  Grantee,  and,  under  the  appropriate
circumstances,  his  guardian,  representative,  heir,  distributee,  legatee or
successor  in  interest,  including  any  transferee.

     (q)     "Stock"  means  the  Company's  common  stock.

3.   Administration  of  the  Plan.

     (a)     Committee  Membership.  The  Plan  shall  be  administered  by  a
committee appointed by the Board, to be known as the Compensation Committee (the
"Committee").  The  Committee  shall  be  not  less  than two members and to the
extent  possible shall be comprised solely of Non-employee Directors, as defined
by  Rule  16b-3(b)(3)(i) of the Securities Exchange Act of 1934 ("1934 Act"), or
any  successor definition adopted by the Securities and Exchange Commission, and
who  shall  each  also  qualify  as  an Outside Director for purposes of Section
162(m)  of  the  Code.  Any  vacancy occurring on the Committee may be filled by
appointment  by  the  Board.  The  Board at its discretion may from time to time
appoint  members  to  the  Committee  in  substitution  of  members  previously
appointed,  may  remove members of the Committee and may fill vacancies, however
caused,  in  the  Committee.  The  Committee  shall initially consist of Richard
Hornidge,  Russ  Howard  and  Joel  Evans.

      (b)     Committee  Procedures.  The  Committee  shall  select  one  of its
members  as  chairman and shall hold meetings at such times and places as it may
determine.  A  quorum  of  the  Committee  shall  consist  of  a majority of its
members,  and the Committee may act by vote of a majority of its members present
at a meeting at which there is a quorum, or without a meeting by written consent
signed  by  all  members  of  the  Committee.  If  any  powers  of the Committee
hereunder  are  limited or denied by the Board or under applicable law, the same
powers  may  be  exercised  by  the  Board.

2011  Employees'  Directors'  and  Consultants Stock Option Plan     Page 2 of 9
<PAGE>
     (c)     Committee  Powers  and  Responsibilities.  The  Committee  will
interpret  the  Plan,  prescribe,  amend  and  rescind  any rules or regulations
necessary or appropriate for the administration of the Plan, and make such other
determinations  and  take  such  other  actions it deems necessary or advisable,
except  as  otherwise  expressly  reserved  for  the  Board.  Subject  to  the
limitations  imposed  by  the Board or under applicable law and the terms of the
Plan,  the  Committee  may  periodically  determine  which Employees, Directors,
and/or  Consultants  should  receive Options under the Plan, whether the options
shall be Incentive Options or Nonstatutory Options, the number of shares covered
by  such  Options,  the  per share purchase price for such shares, and the terms
thereof, including but not limited to transferability of such Options, and shall
have  full  power  to  grant  such  Options.  In  making its determinations, the
Committee  shall  consider,  among other relevant factors, the importance of the
duties  of  the  Grantee to the Company, his or her experience with the Company,
and  his or her future value to the Company.  All decisions, interpretations and
other  actions  of  the  Committee  shall  be final and binding on all Grantees,
Optionees  and all persons deriving their rights from a Grantee or Optionee.  No
member  of  the  Board  or the Committee shall be liable for any action taken or
failed  to  be taken in good faith or for any determination made pursuant to the
Plan.

4.     Stock  Subject  to  Plan.

     This Plan authorizes the Committee to grant Options to Employees, Directors
and/or  Consultants  up  to  the  aggregate amount of 1,000,000 shares of Stock,
subject  to eligibility and any limitations specified herein.  Adjustment in the
shares  subject  to the Plan shall be made as provided in Section 9.  Any shares
covered  by  an Option which, for any reason, expires, terminates or is canceled
may  be  reoptioned  under  the  Plan.

5.     Eligibility

     (a)     General  Rule.  All Employees, Directors and Consultants defined in
Section  2(e)  and  2(g)  shall  be  eligible.

     (b)     Ten  Percent Stockholders.  An Employee, Director or Consultant who
owns  more  than  ten  percent  (10%)  of the total combined voting power of all
classes  of outstanding Stock shall not be eligible for designation as a Grantee
of  an  Incentive  Option  unless (i) the exercise price for each share of Stock
subject  to  such Incentive Option is at least one hundred ten percent (110%) of
the  Fair  Market  Value of a share of Stock on the date of grant, and (ii) such
Incentive  Option, by its terms, is not exercisable after the expiration of five
(5)  years  from  the  date  of  grant.

     (c)     Attribution  Rules.  For  purposes  of  Subsection  (b)  above,  in
determining stock ownership, an Employee, Director or Consultant shall be deemed
to  own the Stock owned, directly or indirectly, by or for his brothers, sisters
(whether  by  whole  or  half  blood), spouse, ancestors and lineal descendants.
Stock  owned,  directly  or  indirectly,  by  or for a corporation, partnership,
estate  or  trust  shall  be  deemed  to  be owned proportionately by or for its
stockholders,  partners  or  beneficiaries.

     (d)     Outstanding  Stock.  For  purposes  of  Subsection  (b)  above,
"Outstanding  Stock"  shall  include  all  Stock actually issued and outstanding
immediately  after  the  grant.  "Outstanding  Stock"  shall  not include shares
authorized for issuance under outstanding options held by the Employee, Director
or  Consultant,  or  by  any  other  person.

     (e)     Individual  Limits of Executive Officers. Subject to the provisions
of Section 9 hereof, the number of option shares granted in a fiscal year to any
Executive  Officer  shall  not  exceed  100,000 shares for the first fiscal year
during  which  such  person  becomes  an  Executive Officer and shall not exceed
200,000 shares for any subsequent fiscal year during which such person serves as
an  Executive  Officer.

     (f)     Incentive  Option  Limitation.  The  aggregate Fair Market Value of
the  stock  for  which  Incentive  Options granted to any one eligible Employee,
Director  or  Consultant  under  this  Plan and under all incentive stock option
plans  of  the Company, its parent(s) and subsidiaries, may by their terms first
become

2011  Employees'  Directors'  and  Consultants Stock Option Plan     Page 3 of 9
<PAGE>
exercisable during any calendar year shall not exceed $100,000, determining Fair
Market  Value  of  the stock subject to any Option as of the time that Option is
granted.  If  the  date  on  which  one or more Incentive Options could be first
exercised  would  be  accelerated pursuant to any other provision of the Plan or
any Stock Option Agreement referred to in Section 6(a), or an amendment thereto,
and  the  acceleration  of such exercise date would result in a violation of the
restriction  set  forth in the preceding sentence, then notwithstanding any such
other provision the exercise date of such Incentive Options shall be accelerated
only  to the extent, if any, that is permitted under Section 422 of the Code and
the  exercise  date of the Incentive Options with the lowest option prices shall
be  accelerated  first.  Any  exercise  date which cannot be accelerated without
violating  the  $100,000  restriction  of  this  section  shall  nevertheless be
accelerated, and the portion of the Option becoming exercisable thereby shall be
treated  as  a  Nonstatutory  Option.

6.     Terms  and  Conditions  of  All  Options  Under  the  Plan.

     (a)     Option  Agreement.  All  Options  granted  under  the Plan shall be
evidenced  by  a written Option Agreement and shall be subject to all applicable
terms  and  conditions  of  the  Plan  and may be subject to any other terms and
conditions  which  are  not  inconsistent  with the Plan and which the Committee
deems  appropriate  for  inclusion  in  an  Option  Agreement.

     (b)     Number  of  Shares.  Each Option Agreement shall specify the number
of  shares  of  the  Stock  each  such  Employee, Director or Consultant will be
entitled to purchase pursuant to the Option and shall provide for the adjustment
of  such number in accordance with Section 9.  Each Option Agreement shall state
the  minimum  number  of  shares  which  must  be exercised at any time, if any.

     (c)     Nature of Option.  Each Option Agreement shall specify the intended
nature  of the Option as an Incentive Option, a Nonstatutory Option or partly of
each  type.

     (d)     Exercise  Price.  Each  Option Agreement shall specify the exercise
price.  The  exercise  price  of either the Incentive Option or the Nonstatutory
Option  shall  not  be  less  than one hundred percent (100%) of the Fair Market
Value  of  a  share of Stock on the date of grant. Subject to the foregoing, the
exercise price under any Option shall be determined by the Committee in its sole
discretion.  The  exercise  price  shall  be  payable  in  the form described in
Section  7.

     (e)     Term of Option.  The Option Agreement shall specify the term of the
Option.  The  term  of  any  Option  granted  under  this  Plan  is  subject  to
expiration,  termination,  and  cancellation  as  set  forth  within  this Plan.

     (f)     Exercisability.  Each  Option Agreement shall specify the date when
all  or  any  installment  of  the Option is to become exercisable.  Such Option
shall  not be exercisable after the expiration of such term which shall be fixed
by  the  Committee, but in any event not later than ten years from the date such
Option  is  granted.  Subject  to  the provisions of the Plan, the Committee may
grant  Options which are vested, or which become vested upon the happening of an
event  or  events  as  specified  by  the  Committee.

     (g)     Withholding  Taxes.  Upon  exercise  of any Nonstatutory Option (or
any  Incentive Option which is treated as a Nonstatutory Option because it fails
to  meet  the  requirements  set  forth  in the Code for Incentive Options), the
Optionee  must  tender  full  payment  to the Company for any federal income tax
withholding  required  under  the  Code  in  connection  with  such  exercise
("Withholding  Tax").  If  the  Optionee  fails  to  tender  to  the Company the
Withholding  Tax,  the  Committee,  at  its  discretion, shall withhold from the
Optionee  any and all shares subject to such Option, and accordingly, subject to
Withholding  Tax until such time as either of the following events has occurred:

          (i)     the Optionee tenders to the Company payment in cash to pay the
Withholding  Tax;  or

2011  Employees'  Directors'  and  Consultants Stock Option Plan     Page 4 of 9
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          (ii)     if  the  Optionee  is an Employee, the Company withholds from
the  Optionee's  wages  an  amount  sufficient  to  pay  the  Withholding  Tax.

     (h)     Termination  and  Acceleration  of  Option.

          For  Incentive  Options:

          (i)     If  the  employment of a Grantee who is not a Disabled Grantee
is  terminated without cause, or such Grantee voluntarily quits or retires under
any  retirement  plan of the Company, any then outstanding and exercisable stock
option  held  by  such  a  Grantee  shall be exercisable, in accordance with the
provisions  of  the  Option  Agreement, by such Grantee at any time prior to the
expiration  date  of  such  Option  or  within  three  months  after the date of
termination  of  employment  or  service,  whichever  is  the  shorter  period.

          (ii)  If  the  employment  of  a  Grantee who is a Disabled Grantee is
terminated  without  cause,  any then outstanding and exercisable Option held by
such  a  Grantee  shall be exercisable, in accordance with the provisions of the
Option  Agreement, by such a Grantee at any time prior to the expiration date of
such  Option or within one year after the date of such termination of employment
or  service,  whichever  is  the  shorter  period.

          For  all  Options  issued  hereunder:

          (i)     If  the  Company  terminates  the  employment of a Grantee for
cause,  all  outstanding  stock  options held by the Grantee at the time of such
termination  shall  automatically  terminate  unless  the Committee notifies the
Grantee  that  his or her options will not terminate.  A termination "for cause"
shall  be  defined  under each written Option Agreement.  The Company assumes no
responsibility  and  is under no obligation to notify a Permitted Transferee (as
hereafter defined in section 13) of early termination of an Option on account of
a  Grantee's  termination  of  employment.

          (ii)     Whether  termination  of  employment  or  other  service is a
termination  "for  cause"  or  whether  a Grantee is a Disabled Grantee shall be
determined  in  each  case,  in  its  discretion,  by the Committee and any such
determination  by  the  Committee  shall  be  final  and  binding.

          (iii)     Following  the  death  of  a  Grantee during employment, any
outstanding  and  exercisable  Options held by such Grantee at the time of death
shall be exercisable, in accordance with the provisions of the Option Agreement,
by the person or persons entitled to do so under the Will of the Grantee, or, if
the  Grantee  shall fail to make testamentary disposition of the stock option or
shall  die  intestate,  by  the  legal representative of the Grantee at any time
prior to the expiration date of such Option or within one year after the date of
death,  whichever  is  the  shorter  period.

          (iv)     The  Committee may grant Options, or amend Options previously
granted, to provide that such Options continue to be exercisable up to ten years
after  the  date  of  grant  irrespective  of  the  termination of the Grantee's
employment with the Company, and which vest upon grant or become vested upon the
happening  of  an  event  or  events  specified  by  the Committee, although the
exercise of such vested Options in the case of Incentive Options more than three
months  after termination of employment may convert such Options to Nonstatutory
Options  with  respect  to  the  income  tax  consequences  of  such  exercise.

7.     Payment  for  Shares

     (a)     Cash.  Payment  in  full for shares purchased under an Option shall
be  made  in  cash (including check, bank draft or money order) or pursuant to a
cashless  exercise provision, if any is available under the Option Agreement, at
the  time  that  the  Option  is  exercised.

2011  Employees'  Directors'  and  Consultants Stock Option Plan     Page 5 of 9
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     (b)     Stock.  In  lieu  of  cash an Optionee may, with the consent of the
Committee,  make  payment  for  Stock  purchased under an Option, in whole or in
part,  by  tendering  to  the Company in good form for transfer, shares of Stock
valued  at  Fair  Market Value on the date the Option is exercised.  Such shares
will  have  been  owned by the Optionee or the Optionee's representative for the
time  specified  by  the  Committee  but  in  no  case shall the Optionee or his
representative  have  held  a  beneficial interest in such tendered shares for a
period  less  than  six  months  prior  to  the  exercise  of  the  Option.

8.     Use  of  Proceeds  from  Stock.

     Cash  proceeds from the sale of Stock pursuant to Options granted under the
Plan  shall  constitute  general  funds  of  the  Company.

9.     Adjustments.

     Changes  or adjustments in the Option price, number of shares subject to an
Option  or  other specifics as the Committee should decide will be considered or
made  pursuant  to  the  following  rules:

     (a)     Upon  Changes  in  Stock.  If the outstanding Stock is increased or
decreased,  or  is  changed into or exchanged for a different number or kinds of
shares  or  securities,  as  a  result  of  one  or  more  reorganizations,
recapitalization,  stock  splits, reverse stock splits, split-up, combination of
shares,  exchange  of  shares,  change  in  corporate  structure,  or otherwise,
appropriate  adjustments  will  be made in the exercise price and/ or the number
and/or  kind of shares or securities for which Options may thereafter be granted
under  this  Plan  and  for  which  Options then outstanding under this Plan may
thereafter  be  exercised.  The  Committee  will make such adjustments as it may
deem  fair, just and equitable to prevent substantial dilution or enlargement of
the rights granted to or available for Optionees.  No adjustment provided for in
this  Section  9 will require the Company to issue or sell a fraction of a share
or  other  security.  Nothing  in  this Section will be construed to require the
Company  to  make  any  specific  or  formula  adjustment.

     (b)     Prohibited Adjustment.  If any such adjustment provided for in this
Section  9  requires the approval of stockholders in order to enable the Company
to  grant  or  amend  Options,  then no such adjustment will be made without the
required  stockholder approval.  Notwithstanding the foregoing, if the effect of
any such adjustment would be to cause an Incentive Option to fail to continue to
qualify  under  Section 422 of the Code or to cause a modification, extension or
renewal  of such stock option within the meaning described in Section 424 of the
Code,  the Committee may elect that such adjustment not be made but rather shall
use  reasonable efforts to effect such other adjustment of each then outstanding
Option  as the Committee, in its sole discretion, shall deem equitable and which
will  not  result  in  any  disqualification, modification, extension or renewal
(within  the  meaning  of  Section  424  of  the Code) of such Incentive Option.

     (c)     Further  Limitations.  Nothing  in  this  Section  will entitle the
Optionee  to  adjustment  of  his  Option  in  the  following  circumstances:

          (i)     The  issuance  or  sale  of  additional  shares  of the Stock,
through  public  offering  or  otherwise;

          (ii)     The  issuance  or  authorization  of  an  additional class of
capital  stock  of  the  Company;

          (iii)     The conversion of convertible preferred stock or debt of the
Company  into  Stock;

          (iv)     The payment of dividends except as provided in Section 9 (a).

The  grant  of  an  Option shall not affect in any way the right or power of the
Company  to  make  adjustments, reclassifications, reorganizations or changes of
its  capital  or  business  structure,  to  merge or consolidate or to dissolve,
liquidate,  sell  or  transfer  all  or  any  part  of  its  business or assets.

2011  Employees'  Directors'  and  Consultants Stock Option Plan     Page 6 of 9
<PAGE>
10.     Legal  Requirements:

     (a)     Compliance  with  All  Laws.  The  Company  will not be required to
issue  or  deliver any certificates for shares of Stock prior to (a) the listing
of  any  such Stock to be acquired pursuant to the exercise of any Option on any
stock  exchange  on  which  the Stock may then be listed, and (b) the compliance
with  any  registration  requirements  or qualification of such shares under any
federal  securities  laws,  including  without  limitation the Securities Act of
1933, as amended ("1933 Act"), the rules and regulations promulgated thereunder,
or  state securities laws and regulations, the regulations of any stock exchange
or  interdealer  quotation  system on which the Company's securities may then be
listed,  or  obtaining  any  ruling or waiver from any government body which the
Company  may, in its sole discretion, determine to be necessary or advisable, or
which,  in  the  opinion  of  counsel  to  the  Company,  is otherwise required.

     (b)     Compliance  with Specific Code Provisions.  It is the intent of the
Company  that  the  Plan  and  its  administration  conform  strictly  to  the
requirements  of  Section  422  of  the  Code with respect to Incentive Options.
Therefore, notwithstanding any other provision of this Plan, nothing herein will
contravene  any requirement set forth in Section 422 of the Code with respect to
Incentive  Options  and  if  inconsistent provisions are otherwise found herein,
they  will be deemed void and unenforceable or automatically amended to conform,
as  the  case  may  be.

     (c)     Plan  Subject  to Delaware Law.  All questions arising with respect
to  the provisions of the Plan will be determined by application of the Code and
the  laws  of  the state of Delaware except to the extent that Delaware laws are
preempted  by  any  federal  law.

11.     Rights  as  a  Stockholder.

     An Optionee shall have no rights as a stockholder with respect to any Stock
covered by his or her Option until the date of issuance of the stock certificate
to him or her after receipt of the consideration in full set forth in the Option
Agreement.  Except  as provided in Section 9 hereof, no adjustments will be made
for  dividends,  whether ordinary or extraordinary, whether in cash, securities,
or  other  property,  or for distributions for which the record date is prior to
the  date  on  which  the  Option  is  exercised.

12.     Restrictions  on  Shares.

     Prior  to  the  issuance  or  delivery of any shares of the Stock under the
Plan,  the  person  exercising  the  Option  may  be  required  to:

     (a)     represent  and  warrant that the shares of the Stock to be acquired
upon exercise of the Option are being acquired for investment for the account of
such  person  and  not  with  a  view  to  resale or other distribution thereof;

     (b)     represent  and  warrant  that  such  person  will  not, directly or
indirectly,  sell, transfer, assign, pledge, hypothecate or otherwise dispose of
any  such shares unless the sale, transfer, assignment, pledge, hypothecation or
other  disposition  of the shares is pursuant to the provisions of this Plan and
effective  registrations  under the 1933 Act and any applicable state or foreign
securities  laws  or  pursuant  to  appropriate  exemptions  from  any  such
registrations;  and

     (c)     execute such further documents as may reasonably be required by the
Committee  upon  exercise  of  the Option or any part thereof, including but not
limited  to  any  stock  restriction  agreement that the Committee may choose to
require.

2011  Employees'  Directors'  and  Consultants Stock Option Plan     Page 7 of 9
<PAGE>
     Nothing  in  this Plan shall assure any Optionee that shares issuable under
this  Option  are  registered  on  a Form S-8 under the 1933 Act or on any other
Form. The certificate or certificates representing the shares of the Stock to be
issued  or delivered upon exercise of an Option may bear a legend evidencing the
foregoing  and  other  legends  required  by  any  applicable  securities  laws.
Furthermore,  nothing  herein  or  any Option granted hereunder will require the
Company to issue any Stock upon exercise of any Option if the issuance would, in
the  opinion of counsel for the Company, constitute a violation of the 1933 Act,
applicable  state  securities  laws,  or any other applicable rule or regulation
then  in effect. The Company shall have no liability for failure to issue shares
upon  any exercise of Options because of a delay pending the meeting of any such
requirements.

13.     Transferability.

     The  Committee  shall  retain  the  authority  and  discretion  to permit a
Nonstatutory  Option,  but in no case an Incentive Option, to be transferable as
long  as  such  transfers  are made only to one or more of the following: family
members,  limited to children of Grantee, spouse of Grantee, or grandchildren of
Grantee,  or  trusts  for  the  benefit  of  Grantee  and/or such family members
("Permitted  Transferee"),  provided  that such transfer is a bona fide gift and
accordingly,  the  Grantee  receives no consideration for the transfer, and that
the  Options transferred continue to be subject to the same terms and conditions
that  were applicable to the Options immediately prior to the transfer.  Options
are  also  subject  to transfer by will or the laws of descent and distribution.
Options  granted  pursuant  to  this  Plan  shall  not be otherwise transferred,
assigned,  pledged, hypothecated or disposed of in any way, whether by operation
of  law  or  otherwise.  A Permitted Transferee may not subsequently transfer an
Option.  The  designation  of  a  beneficiary  shall  not constitute a transfer.

14.     No  Right  to  Continued  Employment.

     This  Plan  and any Option granted under this Plan will not confer upon any
Optionee  any  right  with  respect to continued employment or engagement by the
Company  nor  shall  they  alter,  modify,  limit or interfere with any right or
privilege  of the Company under any employment agreement heretofore or hereafter
executed  with  any  Optionee,  including  the right to terminate any Optionee's
employment  or engagement at any time for or without cause, to change his or her
level  of  compensation  or  to  change his or her responsibilities or position.

15.     Corporate  Reorganizations.

     Upon  the  dissolution  or  liquidation  of  the  Company,  or  upon  a
reorganization,  merger or consolidation of the Company as a result of which the
outstanding  securities  of  the  class  then  subject  to Options hereunder are
changed  into  or  exchanged  for  cash  or  property  or  securities not of the
Company's issue, or upon a sale of substantially all the property of the Company
to,  or  the acquisition of stock representing more than eighty percent (80%) of
the  voting  power  of  the  stock  of  the  Company then outstanding by another
corporation  or person, the Plan will terminate and all Options will lapse.  The
result  described  above  will  not  occur  if  provision  is made in writing in
connection  with such transaction for the continuance of the Plan and/or for the
assumption  of  Options earlier granted, or the substitution for such Options of
options covering the stock of a successor employer corporation, or a parent or a
subsidiary  thereof,  with  appropriate adjustments as to the number and kind of
shares  and prices, in which event the Plan and Options theretofore granted will
continue  in  the  manner  and  under  the  terms  so provided.  If the Plan and
unexercised  Options  shall  terminate  pursuant  to  the foregoing, all persons
holding  any  unexercised  portions  of  Options then outstanding shall have the
right,  at  such  time  prior to the consummation of the transaction causing the
termination as the Company shall designate, to exercise the unexercised portions
of  their  options,  including  the  portions  thereof  which would but for this
Section  15  not  yet  be  exercisable.

2011  Employees'  Directors'  and  Consultants Stock Option Plan     Page 8 of 9
<PAGE>
16.     Modification,  Extension  and  Renewal.

     (a)     Options.  Subject  to  the conditions of and within the limitations
prescribed in the Plan herein, the Committee may modify, extend, cancel or renew
outstanding  Options.  Notwithstanding  the  foregoing,  no  modification  will,
without  the  prior  written consent of the Optionee, alter, impair or waive any
rights or obligations associated with any Option earlier granted under the Plan.

     (b)     Plan.  The  Board  may at any time and from time to time interpret,
amend  or  discontinue  the  Plan.

17.     Plan  Date  and  Duration.

     The Plan shall take effect on the date it is adopted by the Board.  Options
may  not  be  granted  under  this  Plan  after  December  31,  2015.

2011  Employees'  Directors'  and  Consultants Stock Option Plan     Page 9 of 9

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