Document:

Unassociated Document

     

    UNITED
STATES DISTRICT COURT

    SOUTHERN
DISTRICT OF NEW YORK

     

    
      	
              IN
      RE JAKKS PACIFIC, INC. DERIVATIVE ACTION

            	
              :

              :

              :

            	
              Case
      No. 04 Civ. 9441 (RJS)

            

    

     

    NOTICE
OF PENDENCY OF CONSOLIDATED DERIVATIVE ACTION AND PROPOSED SETTLEMENT AND
SETTLEMENT FINAL HEARING

     

     

    TO:  ALL
CURRENT STOCKHOLDERS OF JAKKS PACIFIC, INC. ("JAKKS" OR THE "COMPANY") AS OF
JUNE 29, 2010:

     

    YOU ARE
HEREBY NOTIFIED, pursuant to an order of the United States District Court for
the Southern District of New York (the "Court") and Federal Rule of Civil
Procedure 23.1, that a proposed settlement has been reached, subject to Court
approval, between the parties in the above-captioned consolidated shareholder’s
derivative action (the "Consolidated Derivative Action"). The terms of the
proposed settlement of the Consolidated Derivative Action (the "Settlement") are
set forth in a Stipulation and Agreement of Settlement dated as of November 16,
2009 (the "Stipulation").

     

    NO
PAYMENT WILL BE PAID TO YOU IN THIS SETTLEMENT AND THERE ARE NO CLAIM FORMS TO
COMPLETE.

     

    All
capitalized terms herein have the same meanings as set forth in the
Stipulation.

     

    The Final
Hearing

     

    On
October 19, 2010, at 10:00 a.m., a hearing (the "Final Hearing") will be held
before the Honorable Richard J. Sullivan, at the Daniel Patrick Moynihan United
States Courthouse, 500 Pearl St., Courtroom 21C, New York, NY 10007-1312, to
determine: (1) whether the terms of the Settlement should be approved as fair,
reasonable and adequate, including the Fee and Expense Award; and (2) whether
the Consolidated Derivative Action should be dismissed with prejudice as to the
Released Persons.

     

    Background of the
Action

     

    On and
after November 5, 2004, a number of securities class action complaints were
filed in the United States District Court for the Southern District of New York
on behalf of purchasers of JAKKS common stock between December 3, 1999 and
October 19, 2004, inclusive, alleging violations of the Securities Exchange Act
of 1934 (the “Exchange Act”), and those securities class actions were later
consolidated and captioned In
re JAKKS Pacific, Inc. Shareholders Class Action Litigation, 04 Civ. 8807
(RJS) in the Southern District of New York (the “Class Action”).

     

    On July
11, 2005, the lead plaintiffs in the Class Action filed a consolidated complaint
against JAKKS, Jack Friedman, Steven G. Berman and Joel M. Bennett alleging that
in order to procure valuable international license agreements to manufacture and
market World Wrestling Entertainment, Inc. (“WWE”) products, JAKKS allegedly
bribed a senior WWE executive (James Bell (“Bell”)) and WWE’s licensing agent,
Stanley Shenker & Associates, Inc. (“SSAI”).  In exchange for the
alleged bribes from JAKKS, which were allegedly laundered through foreign
corporations, Bell and SSAI allegedly agreed to assist JAKKS in securing a WWE
videogame license and favorable amendments to the toy
licenses.  During the Class Period, JAKKS publicly reported positive
financial results which it attributed, in material part, to its WWE product
line.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    On
December 2, 2004, Freeport commenced a derivative action styled Freeport Partners, LLC v.
Friedman, et al, 04
Civ. 9441 (RJS), in the United States
District Court for the Southern District of New York, seeking relief based upon
allegations, inter alia,
that Defendants Jack Friedman, Stephen G. Berman, and Joel M. Bennett
violated Section 10(b) of the Exchange Act, 15 U.S.C. §§ 78j(b), Section 21(D)
of the Exchange Act, 15 U.S.C. § 78u(d), were unjustly enriched, and breached
their fiduciary duties owed to JAKKS by engaging in conduct that harmed the
Company, including exposing JAKKS to potential liability in the Class
Action.

     

    On
February 10, 2005, Oppenheim commenced a derivative action styled Oppenheim v. Friedman, et al.,
05 Civ. 2046 (RJS), in the United States
District Court for the Southern District of New York, seeking relief based upon
similar allegations, asserting that Defendants Jack Friedman, Joel M. Bennett,
Stephen G. Berman, David C. Blatte, Robert E. Glick, Michael G. Miller, and
Murray L. Skala breached various fiduciary duties owed to JAKKS by engaging in
conduct that harmed the Company.

     

    On March
17, 2005, Tony Warr commenced a derivative action styled Warr v. Friedman, et al.,
Case No. BCC330477, in the Superior Court of the State of California, County of
Los Angeles (the “State Derivative Action”), against Defendants Jack Friedman,
Stephen G. Berman, Joel M. Bennett, David C. Blatte, Robert E. Glick, Michael G.
Miller, Murray L. Skala, and Does 1-25, seeking relief based upon similar
allegations, asserting that Defendants violated California Corporations Code §
25402, breached various fiduciary duties owed to JAKKS by engaging in conduct
that harmed the Company, abused their control of the Company, grossly mismanaged
the Company, wasted corporate assets, and were unjustly
enriched.  That action has been voluntarily dismissed without
prejudice.

     

    Plaintiffs’
overriding purpose in filing the derivative actions was to ensure that if JAKKS
was held liable for violations of the federal securities laws, or if such
litigation resulted in a settlement, the individual defendants (or their
insurers) would pay a fair portion of any judgment or settlement.

     

    On
February 24, 2009, after the district court granted in part and denied in part
the defendants’ motion to dismiss the complaint in the Class Action, and after
the lead plaintiffs filed a second amended complaint, which the defendants in
the action also moved to dismiss, the parties reached an agreement-in-principle
to settle the Class Action.

     

    Terms of the
Settlement

     

    The terms
of the Settlement set forth in the Stipulation include: (1) the Individual
Defendants shall cause their directors and officers liability insurance carrier
to pay to JAKKS the sum of $4,090,000, which amount JAKKS shall cause to be
applied to (a) settle the Securities Class Action; and (b) to pay the
Plaintiffs’ attorneys fees and the reimbursement of expenses up to $165,000 as
approved by the Court.  If the Settlement is approved, the Court will
enter a Judgment providing that all claims have been released against the
Released Persons and the Consolidated Derivative Action will be
dismissed.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    Reasons For the
Settlement

     

    Before
the Actions were initiated, Plaintiffs’ Counsel performed an investigation
concerning the facts and claims alleged in the Consolidated Derivative Action.
After the Consolidated Derivative Action was initiated, Plaintiffs’ Counsel
continued their investigation including: (i) conducting a private investigation
related to the allegations of the Consolidated Derivative Action; (ii)
inspecting, analyzing and reviewing JAKKS’ filings with the U.S. Securities and
Exchange Commission (“SEC”), press releases, announcements, and transcripts of
conference calls; and (iii) monitoring and reviewing the pleadings, briefs and
accompanying exhibits, and the opinions and orders filed in the Class Action,
and in certain litigation brought against JAKKS by WWE.

     

    Plaintiffs'
Counsel has concluded that their investigation and their efforts are sufficient
for them to reach a conclusion regarding settlement.  In addition to
fully considering the arguments made by plaintiffs in those actions, the
defenses asserted, and the various courts' rulings, and in addition to
considering the agreement in principle reached to settle the Class Action,
Plaintiffs also recognize and acknowledge the expense and length of continued
proceedings necessary to prosecute the Consolidated Derivative Action against
Defendants through trial and appeals.  Plaintiffs have also taken into
account the uncertain outcome and the risk of any litigation, especially in
complex shareholder litigation such as the Consolidated Derivative Action, as
well as the difficulties and delays inherent in such
litigation.  Plaintiffs’ Counsel are also mindful of the inherent
problems of proof under, and possible defenses to, the violations asserted in
the Consolidated Derivative Action.  Based on these considerations,
among others, and the significant payment to JAKKS as referenced herein,
Plaintiffs believe that the Settlement confers substantial benefits upon JAKKS
and is in the best interests of JAKKS.

     

    Release

     

    If the
Settlement is approved, the claims being settled will be
released.  The releases state as follows:

     

    The
obligations incurred pursuant to this Stipulation shall be in full and final
disposition of the Consolidated Derivative Action with respect to the Released
Persons and any and all Settled Claims.  Upon the Effective Date of
the Settlement, the Settled Claims against each and all of the Released Persons
shall be dismissed with prejudice.  The Release shall extend to
Unknown Claims that the Parties do not know or suspect to exist at the time of
the Release that are related in any way to the Consolidated Derivative Action or
the Settled Claims, which, if known, might have affected their decision to enter
into the Release.  Plaintiffs shall be deemed to relinquish, to the
extent it is applicable, and to the full extent permitted by law, the
provisions, rights and benefits of § 1542 of the California Civil
Code.  Plaintiffs shall be deemed to waive any and all provisions,
rights and benefits conferred by any law of any state or territory of the United
States, or principle of common law, which is similar, comparable or equivalent
to California Civil Code § 1542.

     

    As of the
Effective Date of this Settlement, each of the Released Persons shall be deemed
to have, and by operation of the judgment in the Consolidated Derivative Action
shall have, fully, finally, and forever released, relinquished and discharged
Plaintiffs and Plaintiffs’ Counsel from all claims (including Unknown claims)
arising out of, relating to, or in connection with, the institution,
prosecution, assertion, settlement or resolution of the Consolidated Derivative
Action or the Settled Claims.

     

    The
Stipulation contains certain definitions of key terms involving the releases
which are set forth below:

     

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    “Released
Persons” means Defendants and JAKKS and their respective parent entities,
affiliates, subsidiaries, predecessors, successors or assigns, and each of their
past, present, or future officers and directors, associates, stockholders,
controlling persons, representatives, employees, attorneys, accountants,
underwriters, financial or investment advisors or agents, heirs, executors,
trustees, general or limited partnerships, personal representatives, estates or
administrators.

     

    “Settled
Claims” shall collectively mean all claims, demands, rights, liabilities and
causes of action, whether known or unknown, which have been or could have been
asserted by Plaintiffs derivatively on behalf of JAKKS against Defendants,
arising out of, based upon or related to the allegations, facts, circumstances,
transactions, events, matters, disclosures, occurrences, acts, failures to act,
representations or omissions involved, pled, set forth, or referred to in the
Complaints.

     

    “Unknown
Claims” means any Settled Claim which any Party does not know or suspect to
exist in his, her or its favor at the time of the release of the Released
Persons which, if known by him, her or it, might have affected his, her or its
Settlement with and release of the Released Persons, or might have affected his,
her or its decision not to object to this Settlement.  With respect to
any and all Settled Claims, the Parties stipulate and agree that, upon the
Effective Date, the Parties each shall expressly waive, and by operation of the
Judgment shall be deemed to have expressly waived, the provisions, rights and
benefits of California Civil Code section 1542, which provides:

     

    A general
release does not extend to claims which the creditor does not know or suspect to
exist in his or her favor at the time of executing the release, which if known
by him or her must have materially affected his or her settlement with the
debtor.

     

    The
Parties each shall expressly waive, and by operation of the Judgment shall be
deemed to have expressly waived, any and all provisions, rights and benefits
conferred by any law of any state or territory of the United States, or
principle of common law, which is similar, comparable or equivalent to
California Civil Code section 1542. The Parties each may hereafter discover
facts in addition to or different from those which he, she or it now knows or
believes to be true with respect to the subject matter of the Settled Claims,
but, upon the Effective Date, the Parties each shall expressly have, and by
operation of the Judgment shall be deemed to have, fully, finally, and forever
settled and released any and all Settled Claims, known or unknown, suspected or
unsuspected, contingent or non-contingent, whether or not concealed or hidden,
which now exist, or heretofore have existed upon any theory of law or equity now
existing including, but not limited to, conduct which is negligent, intentional,
with or without malice, or a breach of any duty, law or rule, without regard to
the subsequent discovery or existence of such different or additional facts. The
Parties acknowledge that the foregoing waiver was separately bargained for and a
material element of the Settlement of which this release is a Part.

     

    Attorneys’ Fees And
Expenses

     

    Plaintiffs'
Counsel shall make application to the Court for an award of attorneys’ fees and
the reimbursement of expenses in an amount of up to $165,000 to be paid from the
insurance payment described above.  Defendants have agreed not to
object to this application.

     

    What You May
Do

     

    If you
like the Settlement you need to do nothing.  Any shareholder may
object to the Settlement.  A shareholder who objects to the Settlement
of the Consolidated Derivative Action shall have a right to appear and to be
heard at the Final Hearing, provided that he, she, or it was a beneficial
shareholder or shareholder of record as of June 29, 2010.  Any
shareholder of JAKKS who satisfies this requirement may enter an appearance
through counsel of such shareholder's own choosing and at such shareholder's own
expense or may appear on his, her, or its own.  However, no
shareholder of JAKKS shall be heard at the Final Hearing unless no later than 21
days prior to the date of the Final Hearing, such shareholder has satisfied the
following procedures:

     

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    Filed a
written objection or opposition, together with copies of all other papers
(including proof of ownership of JAKKS common stock) and briefs, with the
Clerk's Office at Daniel Patrick Moynihan United States Courthouse, 500 Pearl
St., New York, NY 10007-1312, no later than 21 days prior to the date of the
Final Hearing.  You must also serve the papers on the following
counsel no later than 21 days prior to the date of the Final
Hearing:

     

    
      
        	
                Plaintiffs’
      Counsel:

              	
                Defendants’
      Counsel:

              
	
                Laurence
      Paskowitz

                PASKOWITZ
      & ASSOCIATES

                60
      East 42nd
      Street, 46th
      Floor

                New
      York, NY 10165

              	
                Elliot
      Schaeffer

                SCHAEFFER
      & KRONGOLD LLP

                450
      Seventh Avenue

                New
      York, NY 10123

              
	 	 
	 
      	
                JAKKS’
      Counsel:

              
	 
      	
                Michael
      H. Gruenglas

                SKADDEN
      ARPS SLATE

                MEAGHER
      & FLOM LLP

                Four
      Times Square

                New
      York, NY 10036

              

      

    

     

    The
filing must demonstrate your ownership of JAKKS common stock, including the
dates of ownership, and must state the basis for your objection.

     

    You may
file a written objection without having to appear at the Final Hearing. You may
not appear at the Final Hearing to present your objection, however, unless you
first filed and served a written objection in accordance with the procedures
described above, unless the Court orders otherwise.

     

    If you
wish to be heard orally at the hearing in opposition to the approval of the
Settlement, including the Fee and Expense Award, and if you have filed and
served a timely written objection as described above, you must also notify the
above counsel in your written objection concerning your intention to
appear.  Persons who intend to object and desire to present evidence
at the Final Hearing must include in their written objection the identity of any
witnesses they may call to testify and exhibits they intend to introduce into
evidence at the hearing.

     

    As stated
above, you are not required to hire an attorney to represent you in making
written objections or in appearing at the Final Hearing.  If you
decide to hire an attorney, which will be at your own expense, however, he or
she must file a notice of appearance with the Court and serve it on Plaintiffs'
and Defendants' Counsel so that the notice is received no later than 14 days
prior to the date of the Final Hearing.

     

    The Final
Hearing may be adjourned by the Court without further written
notice.  If you intend to attend the Final Hearing, you should confirm
the date and time with Plaintiffs' Counsel.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Unless
the Court orders otherwise, any shareholder who does not object in the manner
described above will be deemed to have waived any objection and shall be forever
foreclosed from making any objection to the proposed Settlement, including the
Fee and Expense Award.  Shareholders do not need to appear at the
Final Hearing or take any other action to indicate their approval.

     

    Interim Stay and
Injunction

     

    Pending
the Settlement Hearing, all proceedings in the Action involving the Parties, as
defined in the Stipulation of Settlement, other than those proceedings necessary
to carry out or enforce the terms and conditions of the Stipulation are
stayed.

     

    Pending
final determination of whether the Settlement should be approved, Plaintiffs and
the JAKKS shareholders, and each of them, and anyone who acts or purports to act
on their behalf, shall not institute, commence or prosecute any action which
asserts Released Claims against any Released Person, as defined in the
Stipulation.

     

    Scope of the
Notice

     

    This
Notice is a summary description of the Derivative Actions, the complaints, the
terms of the Settlement and the Settlement Hearing.  For a more
detailed statement of the matters involved in the Derivative Actions, reference
is made to the Stipulation, a copy of which may be reviewed in the Court’s
files.

     

    DO
NOT CALL OR WRITE THE COURT OR THE OFFICE OF

    CLERK
OF THE COURT REGARDING THIS NOTICE.

     

    Dated
this 29th day of June, 2010

    

    By Order
of the CourtUnassociated Document

     

    
      ZEVOTEK,
INC.

      

      2010
EQUITY INCENTIVE PLAN

      

      1.  Purpose of the
Plan.

      

      This 2010
Equity Incentive Plan (the “Plan”) is intended as
an incentive, to retain in the employ of and as directors, officers,
consultants, advisors and employees to Zevotek, Inc., a Delaware corporation
(the “Company”), and any
Subsidiary of the Company, within the meaning of Section 424(f) of the United
States Internal Revenue Code of 1986, as amended (the “Code”), persons of
training, experience and ability, to attract new directors, officers,
consultants, advisors and employees whose services are considered valuable, to
encourage the sense of proprietorship and to stimulate the active interest of
such persons in the development and financial success of the Company and its
Subsidiaries.

      

      It is
further intended that certain options granted pursuant to the Plan shall
constitute incentive stock options within the meaning of Section 422 of the Code
(the “Incentive
Options”) while certain other options granted pursuant to the Plan shall
be nonqualified stock options (the “Nonqualified
Options”).  Incentive Options and Nonqualified Options are
hereinafter referred to collectively as “Options.”

      

      The
Company intends that the Plan meet the requirements of Rule 16b-3 (“Rule 16b-3”)
promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and
that transactions of the type specified in subparagraphs (c) to (f) inclusive of
Rule 16b-3 by officers and directors of the Company pursuant to the Plan will be
exempt from the operation of Section 16(b) of the Exchange
Act.  Further, the Plan is intended to satisfy the performance-based
compensation exception to the limitation on the Company’s tax deductions imposed
by Section 162(m) of the Code with respect to those Options for which
qualification for such exception is intended.  In all cases, the
terms, provisions, conditions and limitations of the Plan shall be construed and
interpreted consistent with the Company’s intent as stated in this Section
1.

      

      2.  Administration of the
Plan.

      

      The Board
of Directors of the Company (the “Board”) shall appoint
and maintain as administrator of the Plan a Committee (the “Committee”)
consisting of two or more directors who are (i) “Independent Directors” (as such
term is defined under the rules of the NASDAQ Stock Market), (ii) “Non-Employee
Directors” (as such term is defined in Rule 16b-3) and (iii) “Outside Directors”
(as such term is defined in Section 162(m) of the Code), which shall serve at
the pleasure of the Board. ` The Committee, subject to Sections 3, 5 and 6
hereof, shall have full power and authority to designate recipients of Options
and restricted stock (“Restricted Stock”)
and to determine the terms and conditions of the respective Option and
Restricted Stock agreements (which need not be identical) and to interpret the
provisions and supervise the administration of the Plan.  The
Committee shall have the authority, without limitation, to designate which
Options granted under the Plan shall be Incentive Options and which shall be
Nonqualified Options.  To the extent any Option does not qualify as an
Incentive Option, it shall constitute a separate Nonqualified
Option.

      

      Subject
to the provisions of the Plan, the Committee shall interpret the Plan and all
Options and Restricted Stock granted under the Plan, shall make such rules as it
deems necessary for the proper administration of the Plan, shall make all other
determinations necessary or advisable for the administration of the Plan and
shall correct any defects or supply any omission or reconcile any inconsistency
in the Plan or in any Options or Restricted Stock granted under the Plan in the
manner and to the extent that the Committee deems desirable to carry into effect
the Plan or any Options or Restricted Stock.  The act or determination
of a majority of the Committee shall be the act or determination of the
Committee and any decision reduced to writing and signed by all of the members
of the Committee shall be fully effective as if it had been made by a majority
of the Committee at a meeting duly held for such purpose.  Subject to
the provisions of the Plan, any action taken or determination made by the
Committee pursuant to this and the other Sections of the Plan shall be
conclusive on all parties.

      

      In the
event that for any reason the Committee is unable to act or if the Committee at
the time of any grant, award or other acquisition under the Plan does not
consist of two or more Non-Employee Directors, or if there shall be no such
Committee, or if the Board otherwise determines to administer the Plan, then the
Plan shall be administered by the Board, and references herein to the Committee
(except in the proviso to this sentence) shall be deemed to be references to the
Board, and any such grant, award or other acquisition may be approved or
ratified in any other manner contemplated by subparagraph (d) of Rule 16b-3;
provided, however, that grants
to the Company’s Chief Executive Officer or to any of the Company’s other four
most highly compensated officers that are intended to qualify as
performance-based compensation under Section 162(m) of the Code may only be
granted by the Committee.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      3.  Designation of Optionees and
Grantees.

      

      The
persons eligible for participation in the Plan as recipients of Options (the
“Optionees”) or
Restricted Stock (the “Grantees” and
together with Optionees, the “Participants”) shall
include directors, officers and employees of, and consultants and advisors to,
the Company or any Subsidiary; provided that Incentive Options may only be
granted to employees of the Company and any Subsidiary. In selecting
Participants, and in determining the number of shares to be covered by each
Option or award of Restricted Stock granted to Participants, the Committee may
consider any factors it deems relevant, including, without limitation, the
office or position held by the Participant or the Participant’s relationship to
the Company, the Participant’s degree of responsibility for and contribution to
the growth and success of the Company or any Subsidiary, the Participant’s
length of service, promotions and potential. A Participant who has been granted
an Option or Restricted Stock hereunder may be granted an additional Option or
Options, or Restricted Stock if the Committee shall so determine.

      

      4.  Stock Reserved for the
Plan.

      

      Subject
to adjustment as provided in Section 8 hereof, a total of 350,000,000 shares of
the Company’s common stock, par value $0.00001 per share (the “Stock”), shall be
subject to the Plan.  The shares of Stock subject to the Plan shall
consist of unissued shares, treasury shares or previously issued shares held by
any Subsidiary of the Company, and such number of shares of Stock shall be and
is hereby reserved for such purpose.  Any of such shares of Stock that
may remain unissued and that are not subject to outstanding Options at the
termination of the Plan shall cease to be reserved for the purposes of the Plan,
but until termination of the Plan the Company shall at all times reserve a
sufficient number of shares of Stock to meet the requirements of the
Plan.  Should any Option or award of Restricted Stock expire or be
canceled prior to its exercise or vesting in full or should the number of shares
of Stock to be delivered upon the exercise or vesting in full of an Option or
award of Restricted Stock be reduced for any reason, the shares of Stock
theretofore subject to such Option or Restricted Stock may be subject to future
Options or Restricted Stock under the Plan, except where such reissuance is
inconsistent with the provisions of Section 162(m) of the Code where
qualification as performance-based compensation under Section 162(m) of the Code
is intended.

      

      5.  Terms and Conditions of
Options.

      

      Options
granted under the Plan shall be subject to the following conditions and shall
contain such additional terms and conditions, not inconsistent with the terms of
the Plan, as the Committee shall deem desirable:

      

      (a)  Option
Price.  The purchase price of each share of Stock purchasable
under an Incentive Option shall be determined by the Committee at the time of
grant, but shall not be less than 100% of the Fair Market Value (as defined
below) of such share of Stock on the date the Option is granted; provided, however, that with
respect to an Optionee who, at the time such Incentive Option is granted, owns
(within the meaning of Section 424(d) of the Code) more than 10% of the total
combined voting power of all classes of stock of the Company or of any
Subsidiary, the purchase price per share of Stock shall be at least 110% of the
Fair Market Value per share of Stock on the date of grant.  The
purchase price of each share of Stock purchasable under a Nonqualified Option
shall not be less than 100% of the Fair Market Value of such share of Stock on
the date the Option is granted.  The exercise price for each Option
shall be subject to adjustment as provided in Section 8 below.  “Fair Market Value”
means the closing price on the final trading day immediately prior to the grant
date of the Stock on the principal securities exchange on which shares of Stock
are listed (if the shares of Stock are so listed), or on the NASDAQ Stock Market
or OTC Bulletin Board (if the shares of Stock are regularly quoted on the NASDAQ
Stock Market or OTC Bulletin Board, as the case may be), or, if not so listed,
the mean between the closing bid and asked prices of publicly traded shares of
Stock in the over the counter market, or, if such bid and asked prices shall not
be available, as reported by any nationally recognized quotation service
selected by the Company, or as determined by the Committee in a manner
consistent with the provisions of the Code.  Anything in this Section
5(a) to the contrary notwithstanding, in no event shall the purchase price of a
share of Stock be less than the minimum price permitted under the rules and
policies of any national securities exchange on which the shares of Stock are
listed.

       

       

      
        
          	
                   

                	
                  - 2 -

                	 
      

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (b)  Option
Term.  The term of each Option shall be fixed by the Committee,
but no Option shall be exercisable more than ten years after the date such
Option is granted and in the case of an Incentive Option granted to an Optionee
who, at the time such Incentive Option is granted, owns (within the meaning of
Section 424(d) of the Code) more than 10% of the total combined voting power of
all classes of stock of the Company or of any Subsidiary, no such Incentive
Option shall be exercisable more than five years after the date such Incentive
Option is granted.

      

      (c)  Exercisability.  Subject
to Section 5(j) hereof, Options shall be exercisable at such time or times and
subject to such terms and conditions as shall be determined by the Committee at
the time of grant; provided, however, that in the
absence of any Option vesting periods designated by the Committee at the time of
grant, Options shall vest and become exercisable as to one-tenth of the total
number of shares subject to the Option on each of the three month anniversary of
the date of grant; and provided further that no Options shall be exercisable
until such time as any vesting limitation required by Section 16 of the Exchange
Act, and related rules, shall be satisfied if such limitation shall be required
for continued validity of the exemption provided under Rule
16b-3(d)(3).

      

      Upon the
occurrence of a “Change in Control” (as hereinafter defined), the Committee may
accelerate the vesting and exercisability of outstanding Options, in whole or in
part, as determined by the Committee in its sole discretion.  In its
sole discretion, the Committee may also determine that, upon the occurrence of a
Change in Control, each outstanding Option shall terminate within a specified
number of days after notice to the Optionee thereunder, and each such Optionee
shall receive, with respect to each share of Company Stock subject to such
Option, an amount equal to the excess of the Fair Market Value of such shares
immediately prior to such Change in Control over the exercise price per share of
such Option; such amount shall be payable in cash, in one or more kinds of
property (including the property, if any, payable in the transaction) or a
combination thereof, as the Committee shall determine in its sole
discretion.

      

      For
purposes of the Plan, unless otherwise defined in an employment agreement
between the Company and the relevant Optionee, a Change in Control shall be
deemed to have occurred if:

      

      (i)  a
tender offer (or series of related offers) shall be made and consummated for the
ownership of 50% or more of the outstanding voting securities of the Company,
unless as a result of such tender offer more than 50% of the outstanding voting
securities of the surviving or resulting corporation shall be owned in the
aggregate by the stockholders of the Company (as of the time immediately prior
to the commencement of such offer), any employee benefit plan of the Company or
its Subsidiaries, and their affiliates;

      

      (ii)  the
Company shall be merged or consolidated with another corporation, unless as a
result of such merger or consolidation more than 50% of the outstanding voting
securities of the surviving or resulting corporation shall be owned in the
aggregate by the stockholders of the Company (as of the time immediately prior
to such transaction), any employee benefit plan of the Company or its
Subsidiaries, and their affiliates;

      

      (iii)  the
Company shall sell substantially all of its assets to another corporation that
is not wholly owned by the Company, unless as a result of such sale more than
50% of such assets shall be owned in the aggregate by the stockholders of the
Company (as of the time immediately prior to such transaction), any employee
benefit plan of the Company or its Subsidiaries and their affiliates;
or

      

      (iv)  a
Person (as defined below) shall acquire 50% or more of the outstanding voting
securities of the Company (whether directly, indirectly, beneficially or of
record), unless as a result of such acquisition more than 50% of the outstanding
voting securities of the surviving or resulting corporation shall be owned in
the aggregate by the stockholders of the Company (as of the time immediately
prior to the first acquisition of such securities by such Person), any employee
benefit plan of the Company or its Subsidiaries, and their
affiliates.

       

       

      
        	
                 

              	
                - 3 -

              	 
      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Notwithstanding
the foregoing, if Change of Control is defined in an employment agreement
between the Company and the relevant Optionee, then, with respect to such
Optionee, Change of Control shall have the meaning ascribed to it in such
employment agreement.

      

      For
purposes of this Section 5(c), ownership of voting securities shall take into
account and shall include ownership as determined by applying the provisions of
Rule 13d-3(d)(I)(i) (as in effect on the date hereof) under the Exchange
Act.  In addition, for such purposes, “Person” shall have the meaning
given in Section 3(a)(9) of the Exchange Act, as modified and used in Sections
13(d) and 14(d) thereof; provided, however, that a
Person shall not include (A) the Company or any of its Subsidiaries; (B) a
trustee or other fiduciary holding securities under an employee benefit plan of
the Company or any of its Subsidiaries; (C) an underwriter temporarily holding
securities pursuant to an offering of such securities; or (D) a corporation
owned, directly or indirectly, by the stockholders of the Company in
substantially the same proportion as their ownership of stock of the
Company.

      

      (d)  Method of
Exercise.  Options to the extent then exercisable may be
exercised in whole or in part at any time during the option period, by giving
written notice to the Company specifying the number of shares of Stock to be
purchased, accompanied by payment in full of the purchase price, in cash, or by
check or such other instrument as may be acceptable to the
Committee.  As determined by the Committee, in its sole discretion, at
or after grant, payment in full or in part may be made at the election of the
Optionee (i) in the form of Stock owned by the Optionee (based on the Fair
Market Value of the Stock which is not the subject of any pledge or security
interest, (ii) in the form of shares of Stock withheld by the Company from the
shares of Stock otherwise to be received with such withheld shares of Stock
having a Fair Market Value equal to the exercise price of the Option, or (iii)
by a combination of the foregoing, such Fair Market Value determined by applying
the principles set forth in Section 5(a), provided that the combined value of
all cash and cash equivalents and the Fair Market Value of any shares
surrendered to the Company is at least equal to such exercise price and except
with respect to (ii) above, such method of payment will not cause a
disqualifying disposition of all or a portion of the Stock received upon
exercise of an Incentive Option.  An Optionee shall have the right to
dividends and other rights of a stockholder with respect to shares of Stock
purchased upon exercise of an Option at such time as the Optionee (i) has given
written notice of exercise and has paid in full for such shares, and (ii) has
satisfied such conditions that may be imposed by the Company with respect to the
withholding of taxes.

      

      (e)  Non-transferability of
Options.  Options are not transferable and may be exercised
solely by the Optionee during his lifetime or after his death by the person or
persons entitled thereto under his will or the laws of descent and
distribution.  The Committee, in its sole discretion, may permit a
transfer of a Nonqualified Option to (i) a trust for the benefit of the
Optionee, (ii) a member of the Optionee’s immediate family (or a trust for his
or her benefit) or (iii) pursuant to a domestic relations order.  Any
attempt to transfer, assign, pledge or otherwise dispose of, or to subject to
execution, attachment or similar process, any Option contrary to the provisions
hereof shall be void and ineffective and shall give no right to the purported
transferee.

      

      (f)  Termination by
Death.  Unless otherwise determined by the Committee, if any
Optionee’s employment with or service to the Company or any Subsidiary
terminates by reason of death, the Option may thereafter be exercised, to the
extent then exercisable (or on such accelerated basis as the Committee shall
determine at or after grant), by the legal representative of the estate or by
the legatee of the Optionee under the will of the Optionee, for a period of one
(1) year after the date of such death (or, if later, such time as the Option may
be exercised pursuant to Section 14(d) hereof) or until the expiration of the
stated term of such Option as provided under the Plan, whichever period is
shorter.

      

      (g)  Termination by Reason of
Disability.  Unless otherwise determined by the Committee, if
any Optionee’s employment with or service to the Company or any Subsidiary
terminates by reason of Disability (as defined below), then any Option held by
such Optionee may thereafter be exercised, to the extent it was exercisable at
the time of termination due to Disability (or on such accelerated basis as the
Committee shall determine at or after grant), but may not be exercised after one
(1) year after the date of such termination of employment or service (or, if
later, such time as the Option may be exercised pursuant to Section 14(d)
hereof) or the expiration of the stated term of such Option, whichever period is
shorter; provided, however, that, if the
Optionee dies within such ninety (90) day period, any unexercised Option held by
such Optionee shall thereafter be exercisable to the extent to which it was
exercisable at the time of death for a period of one (1) year after the date of
such death (or, if later, such time as the Option may be exercised pursuant to
Section 14(d) hereof) or for the stated term of such Option, whichever period is
shorter.  “Disability” shall mean an Optionee’s total and permanent
disability; provided,
that if Disability is defined in an employment agreement between the Company and
the relevant Optionee, then, with respect to such Optionee, Disability shall
have the meaning ascribed to it in such employment agreement

       

       

      
        	
                 

              	
                - 4 -

              	 
      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (h)  Termination by Reason of
Retirement.  Unless otherwise determined by the Committee, if
any Optionee’s employment with or service to the Company or any Subsidiary
terminates by reason of Normal or Early Retirement (as such terms are defined
below), any Option held by such Optionee may thereafter be exercised to the
extent it was exercisable at the time of such Retirement (or on such accelerated
basis as the Committee shall determine at or after grant), but may not be
exercised after ninety (90) days after the date of such termination of
employment or service (or, if later, such time as the Option may be exercised
pursuant to Section 14(d) hereof) or the expiration of the stated term of such
Option, whichever date is earlier; provided, however, that, if the
Optionee dies within such ninety (90) day period, any unexercised Option held by
such Optionee shall thereafter be exercisable, to the extent to which it was
exercisable at the time of death, for a period of one (1) year after the date of
such death (or, if later, such time as the Option may be exercised pursuant to
Section 14(d) hereof) or for the stated term of such Option, whichever period is
shorter.

      

      For
purposes of this paragraph (h), “Normal Retirement”
shall mean retirement from active employment with the Company or any Subsidiary
on or after the normal retirement date specified in the applicable Company or
Subsidiary pension plan or if no such pension plan, age 65, and “Early Retirement”
shall mean retirement from active employment with the Company or any Subsidiary
pursuant to the early retirement provisions of the applicable Company or
Subsidiary pension plan or if no such pension plan, age 55.

      

      (i)  Other
Terminations.  Unless otherwise determined by the Committee
upon grant, if any Optionee’s employment with or service to the Company or any
Subsidiary is terminated by such Optionee for any reason other than death,
Disability, Normal or Early Retirement or Good Reason (as defined below), the
Option shall thereupon terminate, except that the portion of any Option that was
exercisable on the date of such termination of employment or service may be
exercised for the lesser of ninety (90) days after the date of termination (or,
if later, such time as the Option may be exercised pursuant to Section 14(d)
hereof) or the balance of such Option’s term, whichever period is
shorter.  The transfer of an Optionee from the employ of or service to
the Company to the employ of or service to a Subsidiary, or vice versa, or from
one Subsidiary to another, shall not be deemed to constitute a termination of
employment or service for purposes of the Plan.

      

      (i)  In
the event that the Optionee’s employment or service with the Company or any
Subsidiary is terminated by the Company or such Subsidiary for “cause” any
unexercised portion of any Option shall immediately terminate in its
entirety.  For purposes hereof, unless otherwise defined in an
employment agreement between the Company and the relevant Optionee, “Cause”
shall exist upon a good-faith determination by the Board, following a hearing
before the Board at which an Optionee was represented by counsel and given an
opportunity to be heard, that such Optionee has been accused of fraud,
dishonesty or act detrimental to the interests of the Company or any Subsidiary
of Company or that such Optionee has been accused of or convicted of an act of
willful and material embezzlement or fraud against the Company or of a felony
under any state or federal statute; provided, however, that it is
specifically understood that “Cause” shall not include any act of commission or
omission in the good-faith exercise of such Optionee’s business judgment as a
director, officer or employee of the Company, as the case may be, or upon the
advice of counsel to the Company.  Notwithstanding the foregoing, if
Cause is defined in an employment agreement between the Company and the relevant
Optionee, then, with respect to such Optionee, Cause shall have the meaning
ascribed to it in such employment agreement.

       

       

      
        	
                 

              	
                - 5 -

              	 
      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (ii)  In
the event that an Optionee is removed as a director, officer or employee by the
Company at any time other than for “Cause” or resigns as a director, officer or
employee for “Good Reason” the Option granted to such Optionee may be exercised
by the Optionee, to the extent the Option was exercisable on the date such
Optionee ceases to be a director, officer or employee.  Such Option
may be exercised at any time within one (1) year after the date the Optionee
ceases to be a director, officer or employee (or, if later, such time as the
Option may be exercised pursuant to Section 14(d) hereof), or the date on which
the Option otherwise expires by its terms; which ever period is shorter, at
which time the Option shall terminate; provided, however, if the
Optionee dies before the Options terminate and are no longer exercisable, the
terms and provisions of Section 5(f) shall control.  For purposes of
this Section 5(i), and unless otherwise defined in an employment agreement
between the Company and the relevant Optionee, Good Reason shall exist upon the
occurrence of the following:

      

      
        
          	
                	
                  (A) 

                	
                  the
      assignment to Optionee of any duties inconsistent with the position in the
      Company that Optionee held immediately prior to the
      assignment;

                

        

      

      

      
        
          	
                	
                  (B) 

                	
                  a
      Change of Control resulting in a significant adverse alteration in the
      status or conditions of Optionee’s participation with the Company or other
      nature of Optionee’s responsibilities from those in effect prior to such
      Change of Control, including any significant alteration in Optionee’s
      responsibilities immediately prior to such Change in Control;
      and

                

        

      

      

      
        
          	
                	
                  (C) 

                	
                  the
      failure by the Company to continue to provide Optionee with benefits
      substantially similar to those enjoyed by Optionee prior to such
      failure.

                

        

      

      

      Notwithstanding
the foregoing, if Good Reason is defined in an employment agreement between the
Company and the relevant Optionee, then, with respect to such Optionee, Good
Reason shall have the meaning ascribed to it in such employment
agreement.

      

      (j)  Limit on Value of Incentive
Option.  The aggregate Fair Market Value, determined as of the
date the Incentive Option is granted, of Stock for which Incentive Options are
exercisable for the first time by any Optionee during any calendar year under
the Plan (and/or any other stock option plans of the Company or any Subsidiary)
shall not exceed $100,000.

      

      6.  Terms and Conditions of Restricted
Stock.

      

      Restricted
Stock may be granted under this Plan aside from, or in association with, any
other award and shall be subject to the following conditions and shall contain
such additional terms and conditions (including provisions relating to the
acceleration of vesting of Restricted Stock upon a Change of Control), not
inconsistent with the terms of the Plan, as the Committee shall deem
desirable:

      

      (a)  Grantee
rights.  A Grantee shall have no rights to an award of
Restricted Stock unless and until Grantee accepts the award within the period
prescribed by the Committee and, if the Committee shall deem desirable, makes
payment to the Company in cash, or by check or such other instrument as may be
acceptable to the Committee.  After acceptance and issuance of a
certificate or certificates, as provided for below, the Grantee shall have the
rights of a stockholder with respect to Restricted Stock subject to the
non-transferability and forfeiture restrictions described in Section 6(d)
below.

      

      (b)  Issuance of
Certificates.  The Company shall issue in the Grantee’s name a
certificate or certificates for the shares of Common Stock associated with the
award promptly after the Grantee accepts such award.

      

      (c)  Delivery of
Certificates.  Unless otherwise provided, any certificate or
certificates issued evidencing shares of Restricted Stock shall not be delivered
to the Grantee until such shares are free of any restrictions specified by the
Committee at the time of grant.

      

      (d)  Forfeitability,
Non-transferability of Restricted Stock.  Shares of Restricted
Stock are forfeitable until the terms of the Restricted Stock grant have been
satisfied.  Shares of Restricted Stock are not transferable until the
date on which the Committee has specified such restrictions have
lapsed.  Unless otherwise provided by the Committee at or after grant,
distributions in the form of dividends or otherwise of additional shares or
property in respect of shares of Restricted Stock shall be subject to the same
restrictions as such shares of Restricted Stock.

       

       

      
        	
                 

              	
                - 6 -

              	 
      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (e)  Change of
Control.  Upon the occurrence of a Change in Control as defined
in Section 5(c), the Committee may accelerate the vesting of outstanding
Restricted Stock, in whole or in part, as determined by the Committee, in its
sole discretion.

      

      (f)  Termination of
Employment.  Unless otherwise determined by the Committee at or
after grant, in the event the Grantee ceases to be an employee or otherwise
associated with the Company for any other reason, all shares of Restricted Stock
theretofore awarded to him which are still subject to restrictions shall be
forfeited and the Company shall have the right to complete the blank stock
power.  The Committee may provide (on or after grant) that
restrictions or forfeiture conditions relating to shares of Restricted Stock
will be waived in whole or in part in the event of termination resulting from
specified causes, and the Committee may in other cases waive in whole or in part
restrictions or forfeiture conditions relating to Restricted Stock.

      

      7.  Term of Plan.

      

      No Option
or award of Restricted Stock shall be granted pursuant to the Plan on or after
the date which is ten years from the effective date of the Plan, but Options and
awards of Restricted Stock theretofore granted may extend beyond that
date.

      

      8.  Capital Change of the
Company.

      

      In the
event of any merger, reorganization, consolidation, recapitalization, stock
dividend, or other change in corporate structure affecting the Stock, the
Committee shall make an appropriate and equitable adjustment in the number and
kind of shares reserved for issuance under the Plan and in the number and option
price of shares subject to outstanding Options granted under the Plan, to the
end that after such event each Optionee’s proportionate interest shall be
maintained (to the extent possible) as immediately before the occurrence of such
event.  The Committee shall, to the extent feasible, make such other
adjustments as may be required under the tax laws so that any Incentive Options
previously granted shall not be deemed modified within the meaning of Section
424(h) of the Code.  Appropriate adjustments shall also be made in the
case of outstanding Restricted Stock granted under the Plan.

      

      The
adjustments described above will be made only to the extent consistent with
continued qualification of the Option under Section 422 of the Code (in the case
of an Incentive Option) and Section 409A of the Code.

      

      9.  Purchase for
Investment/Conditions.

      

      Unless
the Options and shares covered by the Plan have been registered under the
Securities Act of 1933, as amended (the “Securities Act”), or
the Company has determined that such registration is unnecessary, each person
exercising or receiving Options or Restricted Stock under the Plan may be
required by the Company to give a representation in writing that he is acquiring
the securities for his own account for investment and not with a view to, or for
sale in connection with, the distribution of any part thereof.  The
Committee may impose any additional or further restrictions on awards of Options
or Restricted Stock as shall be determined by the Committee at the time of
award.

      

      10.  Taxes.

      

      (a)  The
Company may make such provisions as it may deem appropriate, consistent with
applicable law, in connection with any Options or Restricted Stock granted under
the Plan with respect to the withholding of any taxes (including income or
employment taxes) or any other tax matters.

      

      (b)  If
any Grantee, in connection with the acquisition of Restricted Stock, makes the
election permitted under Section 83(b) of the Code (that is, an election to
include in gross income in the year of transfer the amounts specified in Section
83(b)), such Grantee shall notify the Company of the election with the Internal
Revenue Service pursuant to regulations issued under the authority of Code
Section 83(b).

       

       

      
        	
                 

              	
                - 7 -

              	 
      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (c)  If
any Grantee shall make any disposition of shares of Stock issued pursuant to the
exercise of an Incentive Option under the circumstances described in Section
421(b) of the Code (relating to certain disqualifying dispositions), such
Grantee shall notify the Company of such disposition within ten (10) days
hereof.

      

      11.  Effective Date of
Plan.

      

      The Plan
shall be effective on August 17, 2010; provided, however, that if, and only if,
certain options are intended to qualify as Incentive Stock Options, the Plan
must subsequently be approved by majority vote of the Company’s stockholders no
later than August 17, 2011, and further, that in the event certain Option grants
hereunder are intended to qualify as performance-based compensation within the
meaning of Section 162(m) of the Code, the requirements as to stockholder
approval set forth in Section 162(m) of the Code are satisfied.

      

      12.  Amendment and
Termination.

      

      The Board
may amend, suspend, or terminate the Plan, except that no amendment shall be
made that would impair the rights of any Participant under any Option or
Restricted Stock theretofore granted without the Participant’s consent, and
except that no amendment shall be made which, without the approval of the
stockholders of the Company would:

      

      (a)  materially
increase the number of shares that may be issued under the Plan, except as is
provided in Section 8;

      

      (b)  materially
increase the benefits accruing to the Participants under the Plan;

      

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

      

      (d)  decrease
the exercise price of an Incentive Option to less than 100% of the Fair Market
Value per share of Stock on the date of grant thereof or the exercise price of a
Nonqualified Option to less than 100% of the Fair Market Value per share of
Stock on the date of grant thereof; or

      

      (e)  extend
the term of any Option beyond that provided for in Section 5(b).

      

      (f)  except
as otherwise provided in Sections 5(d) and 8 hereof, reduce the exercise price
of outstanding Options or effect repricing through cancellations and re-grants
of new Options.

      

      Subject
to the forgoing, the Committee may amend the terms of any Option theretofore
granted, prospectively or retrospectively, but no such amendment shall impair
the rights of any Optionee without the Optionee’s consent.

      

      It is the
intention of the Board that the Plan comply strictly with the provisions of
Section 409A of the Code and Treasury Regulations and other Internal Revenue
Service guidance promulgated thereunder (the “Section 409A Rules”)
and the Committee shall exercise its discretion in granting awards hereunder
(and the terms of such awards), accordingly.  The Plan and any grant
of an award hereunder may be amended from time to time (without, in the case of
an award, the consent of the Participant) as may be necessary or appropriate to
comply with the Section 409A Rules.

      

      13.  Government
Regulations.

      

      The Plan,
and the grant and exercise of Options or Restricted Stock hereunder, and the
obligation of the Company to sell and deliver shares under such Options and
Restricted Stock shall be subject to all applicable laws, rules and regulations,
and to such approvals by any governmental agencies, national securities
exchanges and interdealer quotation systems as may be required.

       

       

      
        	
                 

              	
                - 8 -

              	 
      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      14.  General
Provisions.

      

      (a)  Certificates.  All
certificates for shares of Stock delivered under the Plan shall be subject to
such stop transfer orders and other restrictions as the Committee may deem
advisable under the rules, regulations and other requirements of the Securities
and Exchange Commission, or other securities commission having jurisdiction, any
applicable Federal or state securities law, any stock exchange or interdealer
quotation system upon which the Stock is then listed or traded and the Committee
may cause a legend or legends to be placed on any such certificates to make
appropriate reference to such restrictions.

      

      (b)  Employment
Matters.  Neither the adoption of the Plan nor any grant or
award under the Plan shall confer upon any Participant who is an employee of the
Company or any Subsidiary any right to continued employment or, in the case of a
Participant who is a director, continued service as a director, with the Company
or a Subsidiary, as the case may be, nor shall it interfere in any way with the
right of the Company or any Subsidiary to terminate the employment of any of its
employees, the service of any of its directors or the retention of any of its
consultants or advisors at any time.

      

      (c)  Limitation of
Liability.  No member of the Committee, or any officer or
employee of the Company acting on behalf of the Committee, shall be personally
liable for any action, determination or interpretation taken or made in good
faith with respect to the Plan, and all members of the Committee and each and
any officer or employee of the Company acting on their behalf shall, to the
extent permitted by law, be fully indemnified and protected by the Company in
respect of any such action, determination or interpretation.

      

      (d)  Registration of
Stock.  Notwithstanding any other provision in the Plan, no
Option may be exercised unless and until the Stock to be issued upon the
exercise thereof has been registered under the Securities Act and applicable
state securities laws, or are, in the opinion of counsel to the Company, exempt
from such registration in the United States.  The Company shall not be
under any obligation to register under applicable federal or state securities
laws any Stock to be issued upon the exercise of an Option granted hereunder in
order to permit the exercise of an Option and the issuance and sale of the Stock
subject to such Option, although the Company may in its sole discretion register
such Stock at such time as the Company shall determine.  If the
Company chooses to comply with such an exemption from registration, the Stock
issued under the Plan may, at the direction of the Committee, bear an
appropriate restrictive legend restricting the transfer or pledge of the Stock
represented thereby, and the Committee may also give appropriate stop transfer
instructions with respect to such Stock to the Company’s transfer
agent.

      

      15.  Non-Uniform
Determinations.

      

      The
Committee’s determinations under the Plan, including, without limitation, (i)
the determination of the Participants to receive awards, (ii) the form, amount
and timing of such awards, (iii) the terms and provisions of such awards and
(ii) the agreements evidencing the same, need not be uniform and may be made by
it selectively among Participants who receive, or who are eligible to receive,
awards under the Plan, whether or not such Participants are similarly
situated.

      

      16.  Governing Law.

      

      The
validity, construction, and effect of the Plan and any rules and regulations
relating to the Plan shall be determined in accordance with the internal laws of
the State of Delaware, without giving effect to principles of conflicts of laws,
and applicable federal law.

       

       

      
        	
                 

              	
                - 9 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}]]