Document:

Exhibit 10.5

 

ADOBE
EXECUTIVE OFFICER ANNUAL INCENTIVE PLAN

(FY
2007)

OBJECTIVES:

·                  Drive
growth and accountability

·                  Drive
execution of operating plan and strategic objectives

·                  Motivate and inspire employees to contribute
at peak performance

ELIGIBILITY: Executive officers of the Company who are
employed (full time or part time) during the full eligibility period (fiscal
year) are eligible to participate in the Plan. If an executive officer is hired
after the beginning of the Plan eligibility period, the executive officer’s
bonus will be prorated, assuming the executive is employed by the Company in an
eligible position at the end of the eligibility period.

INCENTIVE
BONUS TARGET: Each participant’s incentive bonus target is calculated as a percentage of annual base
salary.

PAYMENT
SCHEDULE: Incentive
bonuses are paid on annual basis approximately 45-60 days from fiscal
year-end.

INITIAL THRESHOLD ACHIEVEMENT: As a minimum threshold for participants to
earn an incentive bonus under the Plan, the Company must achieve at least 90%
of its revenue target for the fiscal year. 

INCENTIVE BONUS COMPONENTS: Once
the initial threshold is met, a Funding Level for a particular year is
determined based on the corporate achievement of two metrics - revenue growth
(including shippable backlog) and non-GAPP operating profit. The Funding Level
is a percentage determined based on the combined results of the metric targets.
The Funding Level percentage may range from a minimum of 36% (if corporate
achievement for each metric meets a 95% threshold) to 200% (if corporate
achievement for each metric reaches at least 107%). 

If corporate achievement is below
95% of target, no incentive bonus is paid.

If corporate achievement is
between 95% and 100% of target, the incentive bonus is calculated as follows: 

Target Bonus x Funding Level % x Individual
Results %

Determination of Individual Results - Based on the
achievement of goals tied to the corporate operating plan and strategic
objectives. 100% of the incentive bonus is weighted on Individual Results and
tied to corporate achievement. 

If corporate achievement is above
100% of target, the incentive bonus is calculated as follows: 

Target Bonus x Unit Multiplier x Individual
Results 

Step
1: Determine Aggregate Funding - The aggregate Funding Level for the Plan is
calculated by multiplying the Funding Level percentage achieved by the sum of
each participant’s incentive bonus target.

Step
2: Determine Allocation of Funds - These funds are then allocated to the
Company’s business and functional units based on relative contribution to the
Company’s success. 

Step
3: Determine Unit Multiplier - For each Company business and functional unit,
allocated funds are divided by the sum of individual participant target bonuses
within each particular business and functional unit.

Step 4: Calculate incentive bonus 

MAXIMUM AWARD:  

·                                          Maximum
incentive bonus per participant is 300% of target. 

·                                          Incentive
bonus per participant cannot exceed $5 million per year.Exhibit
10.1

AMENDMENT TO THE

AMENDED
AND RESTATED EMPLOYMENT AGREEMENT

THIS AMENDMENT NO. 1 (this “Amendment”)to theAmended and
Restated Employment Agreement (the “Agreement”) dated August 11, 2003, by and
between Cypress Bioscience, Inc., a Delaware corporation (the “Company”) and Jay D. Kranzler,
M.D., Ph.D. (the “Employee”) is entered into
as of January 26, 2007, by and between the Company and the Employee.  Capitalized terms that are used herein and
not otherwise defined shall have the meaning set forth in the Agreement.

The terms of the Agreement shall be amended and
restated as set forth below in this Amendment.

Section
1.3     shall be amended and restated in
its entirety as follows

“1.3 Term.  Unless sooner terminated as provided in
Article 5 hereof, the Employee’s employment hereunder shall be for a term
commencing on August 1, 2003 and ending on August 1, 2006, subject to automatic
renewal for one year periods unless written notice has been provided by either
party at least seventy-five (75) days prior to the date of such automatic
renewal (a “Non-Renewal Notice”). 
Notwithstanding anything herein to the contrary, either party may
terminate the Employee’s employment under this Agreement at any time, with or
without Cause, subject to the terms and conditions of Article 5 herein.  The actual term of employment hereunder,
giving effect to any early termination of employment under Article 5 hereof, is
referred to as the “Term.”

All other provisions of the Agreement shall remain in
full force and effect.

IN WITNESS
WHEREOF, the parties hereto have executed this Amendment to
the Agreementas of the date stated above.

	
  

  	
   

  	
  CYPRESS BIOSCIENCE, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Sabrina
  Martucci Johnson

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Its:

  	
  Executive Vice
  President, Chief

  
	
   

  	
   

  	
   

  	
  Business Officer and Chief Financial

  
	
   

  	
   

  	
   

  	
  Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Jay Kranzler

  	
   

  
	
   

  	
   

  	
  Jay D. Kranzler, M.D., Ph.D.Untitled Page

		

		

		

		Exhibit 10.6

				

				

			
		
			PROMISSORY NOTE

						

					

		

		
			$96,897.00 U.S.

					

				FOR VALUE RECEIVED, JAKE’S TRUCKING INTERNATIONAL, INC. (the “Borrower”), unconditionally promises to pay to the order of MICAHEL QUESNEL, (the “Lender”) the sum of $96,897 in United States of America funds, together with interest at the rate of 0% per annum on the principal amount remaining unpaid, after as well as before demand or maturity or default, calculated on an annual basis (on the basis of a year of 365 days for the actual number of days elapsed) and payable on demand; PROVIDED that if the Borrower fails to pay on demand any payment of principal or interest on this note, then in such event the entire unpaid principal and all accrued and unpaid interest thereon shall become and be forthwith due and payable without presentment, notice, protest or demand of any kind (all of which are hereby expressly waived by the Borrower).

				

				The Borrower hereby agrees that the proper law of this instrument is the law of the state of Nevada and that this instrument shall be governed by and construed in accordance with the laws thereof and the undersigned agrees that any legal suit, action or proceeding brought upon or arising out of or relating to this instrument may be instituted in the courts of such State and the undersigned hereby accepts and irrevocably submits and attorns to the exclusive jurisdiction of the said courts and acknowledges their competence and agrees to be bound by any judgment thereof, provided that nothing herein shall limit the right of the Lender to bring proceedings against the Borrower elsewhere.

				

				This Promissory Note is dated the 29th day of January, 2007.

				

				

				                                                                        JAKE’S TRUCKING INTERNATIONAL, INC. 

					

					

				                                                                        By:       /s/ Michael Quesnel

				                                                                                    President/Director

				

				

				                                                                        By:       /s/ Michael Quesnel

				                                                                                    LenderExhibit 4.1

    
      

    

    

      THIS
        OPTION AND THE SECURITIES ISSUABLE UPON THE EXERCISE HEREOF
        HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
        1933.
        THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED,
        OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO
        AN
        EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
        ACT OF 1933, OR AN OPINION OF COUNSEL SATISFACTORY TO
        THE
        COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER SUCH
        ACT
        OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SUCH ACT.    

      
        

          
            	
                                             
                      BLUEGATE CORPORATION

                  	
                    No.
                      E-06-44

                  
	
                                             
                      STOCK OPTION AGREEMENT

                  	
                     

                  

          

        

         

        Date
          of
          Grant: December 31, 2006

      

       

      THIS
        GRANT, dated as of the date of grant first stated above (the "Date of
        Grant"),
        is delivered by Bluegate Corporation (the "Company") to Stephen J. Sperco
        (the
"Grantee"),
        who is an employee, consultant or director of the Company or one of its
subsidiaries
        (the Company is sometimes referred to herein as the "Employer").

       

      WHEREAS,
        the Board of Directors of the Company (the "Board") approved the Company's
        grant
        to Grantee the right to purchase shares of the Common Stock of the Company,
        par value $0.001 per share (the "Stock"), in accordance with the terms and
        provisions
        hereof.

       

      NOW,
        THEREFORE, the parties hereto, intending to be legally bound hereby,
agree
        as
        follows:

      

        
          	
                  1.

                	
                  Grant
                    of Option.

                

        

      

       

      Subject
        to the terms and conditions hereinafter set forth, the Company, with the
        approval
        and at the direction of the Board, hereby grants to the Grantee, as of the
        Date
        of Grant, an option to purchase up to 1,200,000 shares of Stock
        at a price of $0.95
        per share. Such option is hereinafter referred to as the "Option" and
        the shares
        of
        stock purchasable upon exercise of the Option are hereinafter sometimes
referred
        to as the "Option Shares." The Option Shares to be issued pursuant to
this
        Stock Option Agreement shall be restricted securities.

      

        
          	
                  2.

                	
                  Vesting.

                

        

      

       

      This
        Option shall vest according to the schedule below:

       

      
        	
                Option
                  Shares

              	
                Vesting
                  Date

              
	 	 
	
                600,000

              	
                          
                  December 31, 2006

              
	
                  
                  25,000

              	
                        January
                  1, 2007

              
	
                 25,000

              	
                      
                  February 1,2007

              
	
                  
                  25,000

              	
                      
                  March 1, 2007

              
	
                25,000

              	
                 April
                  1, 2007

              
	
                25,000

              	
                May
                  1, 2007

              
	
                25,000

              	
                June
                  1, 2007

              
	
                25,000

              	
                July
                  1, 2007

              
	
                25,000

              	
                    
                  August 1, 2007

              

      

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      

      
        	
                25,000

              	
                             September
                  1, 2007

              
	
                25,000

              	
                      
                  October 1, 2007

              
	
                25,000

              	
                          November
                  1,2007

              
	
                25,000

              	
                        
                  December 1, 2007

              
	
                25,000

              	
                     
                  January 1, 2008

              
	
                25,000

              	
                       
                  February 1, 2008

              
	
                25,000

              	
                  
                  March 1, 2008

              
	
                25,000

              	
                April
                  1, 2008

              
	
                25,000

              	
                May
                  1, 2008

              
	
                25,000

              	
                June
                  1, 2008

              
	
                25,000

              	
                July
                  1, 2008

              
	
                25,000

              	
                    
                  August 1, 2008

              
	
                25,000

              	
                        
                  September 1,2008

              
	
                25,000

              	
                       October
                  1,2008

              
	
                25,000

              	
                         
                  November 1, 2008

              
	
                25,000

              	
                        
                  December 1,2008

              

      

       

      
        	
                3.

              	
                Termination
                  of Option.

              

      

      
        	 	
                (a)

              	
                The
                  Option and all rights hereunder with respect thereto, to the extent
                  suchOption
                  has vested, shall terminate and become null and void after theexpiration
                  of five (5) years from the Date of Grant (the "Option Term").To
                  the extent that the Option has not vested in accordance with Section
                  2above,
                  then the non-vested portion of the Option shall terminate andbecome
                  null and void upon the termination of the Grantee as an employee,officer
                  or director of the Company.

              

      

      

      
        	 	
                (b)

              	
                In
                  the event of the death of the Grantee, the Option may be exercised
                  bythe
                  Grantee's legal representative(s), but only to the extent that
                  the
                  Optionwould
                  otherwise have been exercisable by the
                  Grantee.

              

      

      

        
          	 	
                  (c)

                	
                  In
                    the event the Board (or Committee, if any) finds by a majority
                    vote
                    after
                    full consideration of the facts that Grantee, before or after
termination
                    of his employment with the Company or an Affiliate for any reason
                    (i) committed or engaged in fraud, embezzlement, theft, commission
                    of a felony, or proven dishonesty in the course of his employment
                    by the
                    Company or any subsidiary or affiliate of the Company,
                    which conduct damaged the Company or subsidiary or affiliate,
or
                    disclosed trade secrets of the Company its subsidiary or its
                    affiliate, or
                    (ii)
                    participated, engaged in or had a material, financial or other
                    interest,
                    whether
                    as an employee, officer, director, consultant, contractor, shareholder,
                    owner, or otherwise, in any commercial endeavor anywhere which
                    is competitive with the business of the Company or a subsidiary
                    or
                    Affiliate
                    without the written consent of the Company, the Grantee shall
                    forfeit all
                    outstanding Options. Clause (ii) shall not be deemed to have
been
                    violated solely by reason of the Grantee's ownership of stock
                    or
                    securities
                    of any publicly owned corporation, if that ownership does not
result
                    in effective control of the
                    corporation.

                

        

        

        The
          decision of the Board (or Committee, if any) as to the cause of the Grantee's
          discharge, the damage done to the Company or a subsidiary or an
          affiliate, and the extent of the Grantee's competitive activity shall be
          final.
          No decision of the Board (or Committee, if any) however, shall affect
          the finality of the discharge of the Grantee by the
          Company.

      

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      

        
          	
                  4.

                	
                  Exercise
                    of Options.

                

        

         

        
          	 	
                  (a)

                	
                  The
                    Grantee may exercise the Option with respect to all or any part
                    of the
                    number
                    of Option Shares then exercisable hereunder by giving the Secretary
                    of the Company written notice of intent to exercise. The notice
                    of
                    exercise shall specify the number of Option Shares as to which
                    the
                    Option
                    is to be exercised and the date of exercise thereof, which date
                    shall
                    be
                    at least five days after the giving of such notice unless an
                    earlier time
                    shall
                    have been mutually agreed upon. Notwithstanding the foregoing,
                    an
                    Option
                    granted under this Agreement may be exercised in increments of
                    not
                    less than 10% of the full number of Shares as to which it can
                    be
                    exercised.
                    A partial exercise of an Option will not affect the Grantee's
right
                    to exercise the Option from time to time in accordance with this
                    Agreement
                    as to the remaining Shares subject to the
                    Option.

                

        

         

        
          	 	
                  (b)

                	
                  Full
                    payment (in U.S. dollars) by the Grantee of the option price
                    for the
                    Option
                    Shares purchased shall be made on or before the exercise date
specified
                    in the notice of exercise in cash, or certified or cashier's
                    check or
                    money
                    order, or, with the prior written consent of the Board, in whole
                    or
                    in
                    part through the surrender of previously acquired shares of Stock
                    at
                    their
                    fair market value on the exercise
                    date.

                

        

         

        On
          the
          exercise date specified in the Grantee's notice or as soon thereafter
as
          is
          practicable, but not to exceed ten (10) business days, the Company shall
          cause
          to be delivered to the Grantee, a certificate or certificates for the
          Option Shares then being purchased (out of theretofore unissued Stock
or
          reacquired Stock, as the Company may elect) upon full payment for such
          Option Shares. If the Grantee fails to pay for any of the Option Shares
          specified in such notice, the Grantee's right to purchase such Option
          Shares may be terminated by the Company. The date specified in the Grantee's
          notice as the date of exercise shall be deemed the date of exercise
          of the Option, provided that payment in full for the Option Shares to
          be
          purchased upon such exercise shall have been received by such date.

        

          
            	 	
                    (c)

                  	
                    Notwithstanding
                      any of the other provisions hereof. Grantee agrees that he
will
                      not exercise this Option and that the Company will not be obligated
                      to
                      issue
                      any Option Shares pursuant to this Stock Option Agreement,
                      if the
                      exercise
                      of the Option or the issuance of such Option Shares would constitute
                      a
                      violation by the Grantee or by the Company of any provision
                      of any law or
                      regulation
                      of any governmental authority or national securities exchanges.
                      Upon
                      the acquisition of any Option Shares pursuant to the exercise
                      of the
                      Option
                      herein granted, Grantee will enter into such written representations,
                      warranties
                      and agreements as the Company may reasonably request in order
                      to
                      comply
                      with applicable securities laws with this Stock Option
                      Agreement.

                  

          

        

         

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

         

      

      
        	
                5.

              	
                Piggyback
                  Registration Rights.

              

      

       

      If
        the
        Company at any time proposes to register any of its Common Stock under the
        Securities Act (other than a registration on Form S-8 or S-4 or any successor
        or
        similar forms) whether or not for sale for the Company's account, the
Company
        shall use its best efforts to include in such registration (and any related
        qualifications
        under blue sky laws or other compliance) all the Option Shares specified
        in a
        written request or requests, made by the Grantee and received by the
        Company within 15 days after the Grantee's receipt of written notice from
        the
        Company regarding the proposed registration, which written request may specify
        the inclusion of all or a part of Grantee's Option Shares.

       

      
        	
                6.

              	
                Adjustment
                  of and Changes in Stock of the
                  Company.

              

      

       

      In
        the
        event of a reorganization, recapitalization, change of shares, stock split,
        spin-off, stock dividend, reclassification, subdivision or combination of
        shares, merger,
        consolidation, rights offering, or any other change in the corporate
structure
        or shares of capital stock of the Company, the Board shall make such
adjustment
        in the number and kind of shares of Stock subject to the Option and in
the
        option price; provided, however, that no such adjustment shall give the
Grantee
        any additional benefits under the Option.

      

        
          	
                  7.

                	
                  Fair
                    Market Value.

                

        

      

       

      As
        used
        herein, the "fair market value" of a share of Stock shall be the closing
        price
        per
        share of Stock on the PINK SHEETS, OTCBB, NASDAQ, the NYSE, the
        Amex,
        the composite tape or other recognized market source, as determine by
the
        Board, on the applicable date of reference hereunder, or if there is no sale
        on
such
        date, then the closing price on the last previous day on which a sale is
        reported.

       

      
        
          	
                  8.

                	
                  No
                    Rights of
                    Stockholders.

                

        

      

       

      Neither
        the Grantee nor any personal representative shall be, or shall have any of
        the
        rights and privileges of, a stockholder of the Company with respect to any
        shares
        of
        Stock purchasable or issuable upon the exercise of the Option, in whole or
        in
        part, prior to the date of exercise of the Option.

      

        
          	
                  9.

                	
                  Non-Transferability
                    of Option.

                

        

         

      

      During
        the Grantee's lifetime, the Option hereunder shall be exercisable only by
        the
        Grantee or any guardian or legal representative of the Grantee, and the Option
        shall
        not
        be transferable except, (i) in case of the death of the Grantee, by will
        or the
        laws of descent and distribution, and (ii) to a child, grandchild or stepchild
        of the Grantee or to a trust or partnership created by the Grantee, who,
        in each
        case, will be subject to all of the provisions hereof, nor shall the Option
        be
        subject to attachment, execution or other similar process. In the event of
        (a)
        any attempt by the Grantee to alienate, assign, pledge, hypothecate or otherwise
        dispose of the Option,
        except as provided for herein, or (b) the levy of any attachment, execution
        or
        similar process upon the rights or interest hereby conferred, the Company
        may
terminate
        the Option by notice to the Grantee and it shall thereupon become null
and
        void
        and of no value to any such party.

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      

      
        	
                10.

              	
                Disputes.

              

      

       

      As
        a
        condition of the granting of this Option, the Grantee and his heirs and
        successors agree that any dispute or disagreement which may arise hereunder
        shall
        be
        determined by the Board (or Committee, if any) in its sole discretion and
        judgment,
        and that any such determination and any interpretation by the Board (or
Committee,
        if any) of the terms of this Option shall be final and shall be binding and
        conclusive, for all purposes upon the Company, the Grantee, his heirs and
        successors.

      

        
          	
                  11.

                	
                  Notice.

                

        

         

        Any
          notice to the Company provided for in this instrument shall be addressed
          to it
in
          care
          of its Secretary at its executive offices at Bluegate Corporation, and
          any
notice
          to
          the Grantee shall be addressed to the Grantee at the current address
shown
          on
          the records of the Company. Any notice shall be deemed to be duly given
          if
          and when properly addressed and posted by registered or certified mail,
          postage
          prepaid.

         

        
          	
                  12.

                	
                  Governing
                    Law.

                

        

         

        The
          validity, construction, interpretation and effect of this instrument shall
          exclusively be governed by and determined in accordance with the law of
          the
State
          of
          Texas, except to the extent preempted by federal law, which shall to the
          extent
          govern.

         

        IN
          WITNESS WHEREOF, the Company has caused its duly authorized officers to
          execute
          and attest to this Stock Option Agreement, and to apply the corporate seal
          hereto, and
          the
          Grantee has placed his or her signature hereon, effective as of the Date
          of
          Grant.

      

      

      
        	 	
                Bluegate
                  Corporation 

              
	 	 
	 	
                By: 
                  /s/ Manfred Sternberg

              
	 	
                Manfred
                  Sternberg

              
	 	 
	 	
                Grantee:

              
	 	 
	 	/s/
                Stephen J. Sperco
	 	
                Stephen
                  J. Sperco

              

      

      
 

    

    
      5

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