Document:

EXHIBIT
10.4

     

    RESTATED
AND AMENDED EMPLOYMENT AGREEMENT

    

    THIS
RESTATED AND AMENDED EMPLOYMENT AGREEMENT (this “Agreement”) is made
and entered into as of September 27, 2010 and restates and amends the Restated
and Amended Employment Agreement made as of July 22, 2010 (the “Prior Agreement”) by
and between  Shu-Chih Chen, Ph.D., an individual (“Employee”), and
Atossa Genetics, Inc. a Delaware corporation, having its principal office at
4105 E. Madison Street, Suite 320, Seattle, WA 98112 (the “Company”, and
collectively with Employee referred to herein as the “Parties,” and
individually, as a “Party”).

    

    RECITALS

    

    Whereas,
the Company is engaged in the commercialization of a patented, FDA approved
non-invasive test for the detection of pre-cancerous conditions that may lead to
breast cancer;

    

    Whereas,
the Company has not yet completed development of its infrastructure and is in
need of capital, management, infrastructure, accounting and various other
critical elements including management and negotiations with sophisticated
corporate entities and organizations;

    

    Whereas,
Employee is a founder of the Company;

    

    Whereas,
Employee desires to be employed by Company and Company desires to employ the
Employee on the terms provided herein;

    

    Whereas,
the Employee and the Company desire to amend and restate the
Prior  Agreement and to accept the terms and conditions hereof in lieu
of the terms and conditions provided under the Prior Agreement.

    

    AGREEMENT

    

    NOW, THEREFORE, in consideration of the mutual promises and
agreements contained herein, the Parties agree as follows:

     

    1.          Employment.  The
Company hereby hires and employs Employee as Chief Scientific Officer of the
Company and Employee hereby accepts such employment with the Company on the
terms and conditions set forth herein.

     

    2.          Term &
Position.

     

    (a)           Employment
Term.  Subject to the terms and conditions set forth in Section
7 of this Agreement, the Employee and the Company shall each have the right to
terminate Employee’s employment hereunder.  The term of Employee’s
employment hereunder is referred to herein as the “Employment
Term.”

    
      
         

      

      
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    (b)           Position.  During
the Employment Term, Employee shall be the Chief Scientific Officer of the
Company and shall be appointed as a member of the Board of
Directors.

     

    3.          Duties and
Responsibilities.  Employee shall serve the Company diligently
and faithfully in the performance of her duties on the Company’s behalf, which
shall include duties and responsibilities as the Company may from time to time
reasonably prescribe consistent with the duties and responsibilities of the
Chief Scientific Officer of the Company, including establishing the Company’s
laboratory, and managing the Company’s biomarker research and development
efforts.

     

    4.          Compensation.  For
services rendered to the Company pursuant to this Agreement, Employee shall be
entitled to receive the following cash and equity compensation:

     

    (a)           Base
Salary.  Employee shall be entitled to an initial base salary
of $200,000.00 per year, payable biweekly.  The Company may elect to
accrue payment of such base salary until the completion of a
financing.

     

    (b)           Bonus.  Employee
shall be eligible to receive an annual cash performance bonus in an amount of up
to 30% of her then-current base salary, subject to the achievement of goals
established prospectively by the Compensation Committee of the
board.  The performance goals for 2010 will be set at the first board
meeting following the completion of the Company’s initial public
offering.

     

    (c)           Equity.  The
Company will grant to Employee an option (the “Option”) to purchase
226,333 shares of common stock at an exercise price per share equal to the fair
market value per share on the date the option is granted, as determined by the
Board of Directors.  The Option will be subject to the terms and
conditions applicable to options granted under an equity incentive plan to be
adopted by the Board of Directors and stockholders of the Company (the “Plan”), and the
applicable stock option agreement pursuant to the Plan, which will include the
appropriate provisions contained in this Agreement.  25% of the shares
of common stock underlying the option, or 56,583 shares, will vest on December
31, 2010, and the remaining 75%, or 169,750 shares, will vest in equal quarterly
installments over the next three years, so long as Employee remains employed
with the Company.

     

    (d)           Change in
Control.  In the event of a Change in Control (as defined
below) during the Employment Term, Employee shall be entitled to receive a
one-time bonus equal to 2.9 (two and nine-tenths) times her then-current base
salary as set forth and determined above, or on any amendment to this Agreement,
and all then-unvested shares of restricted stock, warrants and/or employee stock
options, if any, then held by Employee shall accelerate and become fully vested
as of immediately prior to the completion of the Change in
Control.  For purposes hereof, a “Change in Control”
shall mean:

    
      
         

      

      
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    (i)           merger
or consolidation in which (A) the Company is a constituent party or (B) a
Subsidiary of the Company is a constituent party and the Company issues shares
of its capital stock pursuant to such merger or consolidation, in each case
except any such merger or consolidation involving the Company or a Subsidiary in
which the shares of capital stock of the Company outstanding immediately prior
to such merger or consolidation continue to represent, or are converted into or
exchanged for shares of capital stock that represent, immediately following such
merger or consolidation, at least a majority, by voting power, of the capital
stock of (1) the surviving or resulting corporation or (2) if the surviving or
resulting corporation is a wholly owned subsidiary of another corporation
immediately following such merger or consolidation, the parent corporation of
such surviving or resulting corporation; or

     

    (ii)          the
sale, lease, transfer, exclusive license or other disposition, in a single
transaction or series of related transactions, by the Company or any Subsidiary
of all or substantially all the assets of the Company and its Subsidiaries taken
as a whole, except where such sale, lease, transfer, exclusive license or other
disposition is to a wholly-owned subsidiary of the Company.

     

    5.          Fringe
Benefits.  During the Employment Term, the Company agrees to
make available the following fringe benefits to Employee in accordance with the
policies and plans adopted by the Company; said fringe benefits shall be no less
favorable to the Employee than those provided to other key employees and
officers of the Company.  To the extent such benefits are based on
length of service with the Company, Employee shall receive full credit for prior
service with the Company.

     

    (a)           Expenses.  Employee
shall be expected to incur various business expenses and other out-of-pocket
expenses customarily incurred by persons holding like positions, including but
not limited to traveling, entertainment and similar expenses incurred by
Employee in the performance of Employee’s services for the benefit of the
Company.  Company shall reimburse Employee for all reasonable business
expenses incurred or paid by Employee upon presentation of documentation
reasonably acceptable to the Company and subject to any reimbursement policy
adopted by the Company.

     

    (b)           Health
Insurance.  Participation in health, hospitalization,
disability, dental and other insurance plans that the Company may have in effect
for other executives, all of which shall be paid for by the Company with
contribution by the Employee as set for the other executives, as and if
appropriate.

     

    (c)           Vacation.  Employee
shall be entitled to six weeks of paid vacation per year for each full year of
employment and pro rata for each partial year. Vacation time not taken during a
calendar year is not accrued to the next calendar year.

     

    6.          Termination.  Either
the Company or Employee may terminate Employee’s employment by the Company at
the end of any calendar month, with or without “Cause” or “Good Reason” (as such
terms are defined below), in its or her sole discretion, upon thirty (30) days’
prior written notice of termination.  In addition, Employee’s
employment by the Company shall terminate upon the death or Disability (as
defined below) of Employee.  Termination of Executive’s employment as
provided for herein shall terminate the Employment Term.  For purposes
of this Agreement, in the case of a termination of Employee’s employment
hereunder, the following terms shall have the following
meanings:

    
      
         

      

      
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    (a)           “Good Reason” shall
mean the Employee has complied with the Good Reason Process (as defined below)
following the occurrence of any of the following events: (i) a material
diminution in Employee’s responsibilities, authority or duties at the Company
that constitutes a demotion or (ii) a material diminution in Employee’s base
salary (other than a general reduction applicable to all executive employees of
the Company) (each, a “Good Reason
Condition”).

     

    (b)           “Good Reason Process”
means that (i) Employee reasonably determines in good faith that a Good Reason
Condition has occurred, (ii) Employee notifies the Company in writing of the
occurrence of the Good Reason Condition within 60 days after the first
occurrence of such condition; (iii) Employee cooperates in good faith with the
Company’s efforts, for a period not less than 30 days following such notice (the
“Cure Period”),
to remedy the Good Reason Condition; (iv) notwithstanding such efforts, the Good
Reason Condition continues to exist; and (v) Employee terminates her employment
within 60 days after the end of the Cure Period.  If the Company cures
the Good Reason Condition during the Cure Period, Good Reason will be deemed not
to have occurred.

     

    (c)           “Cause” shall mean:
(i) Employee’s willful and repeated failure reasonably to perform her duties
hereunder or to comply with any reasonable and proper direction given by the
Board if such failure of performance or compliance is not cured within thirty
(30) days following receipt by Employee of written notice from the Company
containing a description of such failures and non-compliance and a demand for
immediate cure thereof; (B) Employee being found guilty in a criminal court
of an offense involving moral turpitude; (C) Employee’s commission of any
material act of fraud or theft against the Company; or (D) Employee’s
material violation of any of the material terms, covenants, representations or
warranties contained in this Agreement if such violation is not cured within
thirty (30) days following receipt by Employee of written notice from the
Company containing a description of the violation and a demand for immediate
cure thereof.

     

    (d)           “Disability” shall
mean total and permanent disability as defined in Section 22(e)(3) of the
Internal Revenue Code of 1986, as amended.

    
      
         

      

      
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    7.          Severance.  Subject
to Section 6 hereof, if (i) the Company terminates the employment of Employee
without Cause, or (ii) Employee terminates her employment for Good Reason, then
Employee shall be entitled to receive all of her accrued and then-unpaid base
salary, any bonus cash compensation earned by Employee through the effective
date of termination (determined at the maximum annual rate for bonus cash
compensation provided for above but on a pro-rated basis for the portion of the
fiscal year that shall have elapsed when the termination occurs).  In
addition, subject to Employee’s execution and non-revocation of an agreement
containing a release of any and all legal claims and other termination-related
provisions in a form acceptable to the Company (the “Separation
Agreement”), Employee shall be entitled to receive upon such
termination an additional cash payment in the amount of twelve (12) months
of such base salary (the “Severance Payment”),
and notwithstanding the vesting and exercisability provisions otherwise
applicable to the options issued to Employee under prior agreements, the vesting
of all shares of common stock underlying such options shall accelerate as of the
effective date of such termination, and such options shall remain exercisable
for the remainder of their terms.  The Company shall pay the Severance
Payment in substantially equal installments over six (6) months (the “Severance Benefits
Period”) in accordance with the Company’s standard payroll practice, in
arrears beginning on the first payroll date that occurs following the thirtieth
(30th) day after the date on which Employee’s employment with the Company
terminates; provided,
that prior to such date, the Separation Agreement becomes
effective.  Solely for purposes of Section 409A of the Internal
Revenue Code of 1986, as amended (the “Code”), each
installment of the Severance Payment will be considered a separate
payment.  Notwithstanding the foregoing, the Company shall not be
required to pay any severance pay for any period following the effective date of
termination of Employee’s employment hereunder if Employee shall have materially
violated the provisions of Sections 3, 8, 10 or 11 of this Agreement and such
violation is not cured within thirty (30) days following receipt of written
notice from the Company containing a description of the violation and a demand
for immediate cure.

     

    8.          Noncompetition and
Non-Solicitation Commitment.  Employee hereby agrees as
follows:

     

    (a)           Agreement Not to
Compete.  Employee hereby covenants, and agrees that, during
the Employment Term and for a period of twelve (12) months thereafter, she shall
not within the United States directly or indirectly in any manner or capacity
(whether alone or as a partner, joint venturer, stockholder or investor,
creditor, principal, agent, advisor, employee, officer, director, licensor,
licensee, salesman, broker or representative, for any “Person” (defined as any
individual, corporation (including any non-profit corporation), general, limited
or limited liability partnership, limited liability company, joint venture,
estate, trust, association, organization, or other entity or governmental body),
or through any agency or by any other means whatsoever) engage in the Business
of the Company or any Subsidiary, except for on behalf of the Company or its
affiliates.  For purposes of the foregoing, the “Business of the
Company,” from time to time means the Company’s business as is described in Part
I, Item 1 (“Description of Business”) of the Company’s then most recent Annual
Report on Form 10-K filed with the United States Securities and Exchange
Commission, and the term “Subsidiary” means a corporation or other entity that
is at least majority owned, directly or indirectly, by the Company.

     

    (b)           No
Interference.  Employee shall not take any action to interfere
with the relationships between the Company and its Affiliates, on the one hand,
and their customers on the other, during the Non-Compete Period.

     

    (c)           Indirect
Competition.  Employee further agrees that, during the
Non-Compete Period, she shall not, directly or indirectly, assist or encourage
any other Person in carrying out, directly or indirectly, any activity that
would be prohibited by the foregoing provisions of this Section 8 if such
activity were carried out by Employee.

    
      
         

      

      
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    (d)           No
Solicitation.  Employee agrees that during the Non-Compete
Period, she will not, directly or indirectly, on behalf of himself or any other
Person, solicit the hiring of or hire, on any basis, any Person employed by the
Company or its Affiliates at the time of such solicitation.

     

    9.          Reasonable Restriction;
Limits on Enforcement.

     

    (a)           The
parties hereto agree that the restrictions on the activities and business of
Employee provided for in this Agreement, and the duration and territorial scope
thereof, are, under all circumstances, reasonable and necessary to safeguard the
interests of the Company and its Affiliates and to protect the goodwill acquired
pursuant thereto.

     

    (b)           If
any court of competent jurisdiction shall refuse to enforce any or all of the
provisions hereof because the time limit applicable thereto is deemed
unreasonable, it is expressly understood and agreed that such provisions shall
not be void, but that for the purpose of such proceedings and in such
jurisdiction such time limitation shall be deemed to be reduced to the extent
necessary to permit enforcement of such provisions.

     

    (c)           If
any court of competent jurisdiction shall refuse to enforce any or all of the
provisions hereof because they are more extensive (whether as to geographical
area, scope of business or otherwise) than is deemed reasonable, it is expressly
understood and agreed that such provisions shall not be void, but that for the
purpose of such proceedings and in such jurisdiction, the restrictions contained
herein (whether as to geographic area, scope of business or otherwise) shall be
deemed to be reduced to the extent necessary to permit enforcement of such
provisions.

     

    (d)           The
existence of any claim or cause of action by Employee or any other Person
against the Company or its Affiliates shall not constitute a defense to the
enforcement of any provision hereof.

     

    (e)           Employee
expressly stipulates and agrees that this Agreement shall be construed in a
manner which renders its provisions valid and enforceable to the maximum extent
(not exceeding its express terms) permissible under applicable law.

     

    10.        Confidential
Information.

     

    (a)           For
purposes of this Section 10, the term “Confidential
Information” means, in addition to its meaning under applicable law,
information which is not generally known in the Company’s industry and which is
proprietary to the Company and which is subject to efforts by the Company to
maintain its confidentiality, including (i) trade secret information about
the Company, its customers and its products, and (ii) information relating
to the business of the Company as conducted at any time within the previous five
(5) years or anticipated to be conducted by the Company, and to any of its past,
current or anticipated products, including, without limitation, information
about the Company’s purchasing, accounting, marketing, selling, or
servicing.  “Confidential
Information” shall not include information that is, or thereafter by
legal means becomes, lawfully available from public sources or any information
that is required by a law or any competent administrative agency or judicial
authority to be disclosed, or the disclosure of which is otherwise reasonably
necessary or appropriate in connection with performance by Employee of her
duties under this Agreement.

    
      
         

      

      
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    (b)           Employee
shall not, either during the term of this Agreement or for a period one (1) year
following the expiration or termination of this Agreement, use Confidential
Information for any purpose other than the performance of her duties and
responsibilities under this Agreement or disclose any Confidential Information
to any Person not employed by the Company except with the prior written
authorization of the Company or as may be necessary for Employee to perform her
duties hereunder and shall exercise prudence and the same degree of care taken
by the Company to safeguard and protect, and to prevent the unauthorized
disclosure of, all such Confidential Information.

     

    (c)           Upon
expiration or termination of this Agreement, Employee shall turn over to a
designated representative of the Company all property in Employee’s possession
and custody and belonging to the Company and all tangible embodiments of
Confidential Information.  Employee shall not retain any copies or
reproductions of correspondence, memoranda, reports, notebooks, drawings,
photographs or other documents relating in any way to the affairs of the Company
and containing Confidential Information which came into Employee’s possession at
any time during the term of this Agreement.

     

    11.        Inventions and
Innovations.  Employee agrees to communicate to the Company,
promptly and fully, and to assign to the Company, all inventions, trade secrets,
and technical or business innovations, and all worldwide intellectual property
rights therein, developed or conceived solely by Employee, or jointly with
others, while employed by the Company, which were developed on the time of the
Company or in reliance on Confidential Information.  Employee further
agrees to execute all necessary papers and otherwise to assist the Company, at
the Company’s sole expense, to obtain patents or other legal protection as the
Company deems fit, and to assist in perfecting in the Company all rights granted
to it hereunder.  Both the Company and Employee intend that all
original works of authorship created by Employee while working in the employ of
the Company will be works for hire within the meaning of applicable copyright
laws and will be the sole and exclusive property of the Company.

     

    12.        Third Party
Beneficiaries.  Employee acknowledges and agrees that the
covenants contained in Sections 8 through 11 hereof are expressly intended
to benefit the Company and all of its Affiliates, and that for purposes of such
sections the term “Company” shall include all of Company’s
Affiliates.

     

    13.        Survival.  The
covenants and agreements of the Employee set forth in Sections 8 through 12
shall remain in effect and survive the termination of this Agreement for the
respective periods set forth therein.

     

    14.        Waiver.  No
waiver of any term, condition or covenant of this Agreement shall be deemed to
be a waiver of subsequent breaches of the same or other terms, covenants or
conditions hereof.

     

    
      
         

      

      
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    15.        Amendment.   This
Agreement may not be amended, altered or modified except by a written agreement
between the parties hereto.

     

    16.        Assignability.  Employee
may not assign this Agreement to any third party for whatever purpose without
the express written consent of the Company, other than as specifically
authorized herein.  The Company may not assign this Agreement to any
third party without the express written consent of Employee except by operation
of law, or through merger, liquidation, recapitalization or sale of all or
substantially all of the assets of the Company, provided that the Company may
assign this Agreement at any time to an Affiliate of the Company.

     

    17.        Invalidity.  In
the event part or any portion of this Agreement is determined in a legally
binding manner to be invalid and unenforceable, the parties agree that this
Agreement as so construed shall remain in force and effect between them and
applied as if the offending part or portion did not comprise an element
hereof.

     

    18.        Severability.  If
any particular provision of this Agreement shall be determined to be invalid or
unenforceable, the parties expressly authorize the court or other tribunal
making such a determination to edit the invalid or unenforceable provision to
allow this Agreement, and the provisions thereof, to be valid and enforceable to
the fullest extent allowed by applicable law.

     

    19.        Entire
Agreement.  This Agreement contains the entire agreement of the
parties relative to the subject matter of this Agreement and there is no
provision, condition or understanding relative to the employment of Employee
outside this Agreement.

     

    20.        Notices.  Any
notice required to be given hereunder shall be duly and properly given,
effective as of the date of mailing, if mailed postage prepaid to either party
at the addresses set forth below, or to such other address as such party may
subsequently notify to the other.

     

    
      
        
          	
                  If
      to Employee:

                	
                  Shu-Chih
      Chen, PhD

                
	 
      	
                  4105
      E. Madison Street, Suite 320

                
	 
      	
                  Seattle,
      WA 98112

                
	 
      	 
      
	
                  If
      to Company:

                	
                  Atossa
      Genetics, Inc.

                
	 
      	
                  Attn:  President

                
	 
      	
                  4105
      E. Madison Street, Suite 320

                
	 
      	
                  Seattle,
      WA 98112

                

        

      

    

    

    21.        Governing
Law.  This Agreement shall be governed by and construed under
the internal laws of the State of Washington, without regard to the principles
of comity and/or the applicable conflicts of laws of any state that would result
in the application of any laws other than the State of
Washington.

    
      
         

      

      
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    22.        Jurisdiction &
Arbitration.  The validity, performance and interpretation of
the Agreement shall be governed by the laws of the State Washington, without
regard to its conflicts of law rules. Any dispute or claim arising under or with
respect to this Agreement, which is incapable of resolution, will be resolved by
arbitration before one (1) arbitrator in Seattle, Washington, in accordance with
the Rules for Commercial Arbitration of the American Arbitration Association
("AAA"). The
appointing agency shall be the AAA and the arbitrator shall apply Washington
State law to both interpret this Agreement and fashion an award.

     

    23.        Tax
Matters.

     

    (a)           The
parties intend that this Agreement be administered in accordance with Section
409A of the Code.  To the extent that any provision of this Agreement
is ambiguous as to its compliance with, or exemption from, Section 409A of the
Code, the provision will be read in such a manner so that all payments hereunder
either comply with, or are exempt from, Section 409A of the Code.  The
Parties agree that this Agreement may be amended as reasonably requested by
either Party, and as may be necessary to fully comply with Section 409A of the
Code and all related rules and regulations in order to preserve the payments and
benefits provided hereunder without additional cost to either
party.  The Company makes no representation or warranty and will have
no liability to Employee or any other person if any provisions of this Agreement
are determined to constitute deferred compensation subject to Section 409A of
the Code but do not satisfy an exemption from, or the conditions of, such
Section.

     

    (b)           Anything
in this Agreement to the contrary notwithstanding, if at the time of Employee’s
“separation from service” within the meaning of Section 409A of the Code, the
Company determines that Employee is a “specified employee” within the meaning of
Section 409A(a)(2)(B)(i) of the Code, then to the extent any payment or benefit
that Employee becomes entitled to under this Agreement on account of her
separation from service would be considered deferred compensation subject to the
20 percent additional tax imposed pursuant to Section 409A(a) of the Code as a
result of the application of Section 409A(a)(2)(B)(i) of the Code, such payment
shall not be payable and such benefit shall not be provided until the date that
is the earlier of (A) six months and one day after Employee’s separation from
service or (B) Employee’s death.  If any such delayed cash payment is
otherwise payable on an installment basis, the first payment shall include a
catch-up payment covering amounts that would otherwise have been paid during the
six-month period but for the application of this provision, and the balance of
the installments will be payable in accordance with their original
schedule.

     

    (c)           To
the extent that any payment or benefit described in this Agreement constitutes
“non-qualified deferred compensation” under Section 409A of the Code, and to the
extent that such payment or benefit is payable upon Employee’s termination of
employment, then such payments or benefits shall be payable only upon Employee’s
“separation from service.”  The determination of whether and when a
separation from service has occurred shall be made in accordance with the
presumptions set forth in Treasury Regulation Section 1.409A
1(h).

    
      
         

      

      
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    (d)           All
in-kind benefits provided and expenses eligible for reimbursement under this
Agreement shall be provided by the Company or incurred by Employee during the
time periods set forth in this Agreement.  All reimbursements shall be
paid as soon as administratively practicable, but in no event shall any
reimbursement be paid after the last day of the taxable year following the
taxable year in which the expense was incurred.  The amount of in-kind
benefits provided or reimbursable expenses incurred in one taxable year shall
not affect the in-kind benefits to be provided or the expenses eligible for
reimbursement in any other taxable year.  Such right to reimbursement
or in-kind benefits is not subject to liquidation or exchange for another
benefit.

     

    24.        Counterparts and Electronic
Signatures.  This Agreement may be executed in two or more
counterparts and by facsimile or any electronic means, each of which shall be
deemed an original but all of which together shall constitute one and the same
Agreement.

    

    [SIGNATURE
PAGE FOLLOWS]

    
      
         

      

      
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    IN
WITNESS WHEREOF, the parties have executed this Agreement as of September 27,
2010.

    

    
      
        	
                COMPANY:

              	 
      	
                EMPLOYEE:

              
	 
      	 
      	 
      
	
                Atossa
      Genetics, Inc.

              	 
      	 
      
	 
      	 
      	 
      
	
                By:

              	
                /s/ John Barnhart

              	 
      	
                By:

              	
                /s/ Shu-Chih Chen

              
	 
      	
                John
      Barnhart

              	 
      	 
      	
                Shu-Chih
      Chen, Ph.D.

              
	 
      	
                Director,
      Board of Directors

              	
                  

              	 
      	 
      

      

    

    

    [SIGNATURE
PAGE TO EMPLOYMENT AGREEMENT]EXHIBIT 10.6

       

      ATOSSA
GENETICS INC.

       

      2010
STOCK OPTION AND INCENTIVE PLAN

       

      
        	
                SECTION
      1.

              	
                GENERAL PURPOSE OF THE
      PLAN; DEFINITIONS

              

      

       

      The name
of the plan is the Atossa Genetics Inc. 2010 Stock Option and Incentive Plan
(the “Plan”).  The purpose of the Plan is to encourage and enable the
officers, employees, Non-Employee Directors and other key persons (including
Consultants and prospective employees) of Atossa Genetics Inc. (the “Company”)
and its Subsidiaries upon whose judgment, initiative and efforts the Company
largely depends for the successful conduct of its business to acquire a
proprietary interest in the Company.  It is anticipated that providing such
persons with a direct stake in the Company’s welfare will assure a closer
identification of their interests with those of the Company and its
stockholders, thereby stimulating their efforts on the Company’s behalf and
strengthening their desire to remain with the Company.

       

      The
following terms shall be defined as set forth below:

       

      “Act” means the Securities
Act of 1933, as amended, and the rules and regulations thereunder.

       

      “Administrator” means either
the Board or the compensation committee of the Board or a similar committee
performing the functions of the compensation committee and which is comprised of
not less than two Non-Employee Directors who are independent.

       

      “Award” or “Awards,” except where
referring to a particular category of grant under the Plan, shall include
Incentive Stock Options, Non-Qualified Stock Options, Stock Appreciation Rights,
Restricted Stock Units, Restricted Stock Awards, Unrestricted Stock Awards,
Cash-Based Awards, Performance Share Awards and Dividend Equivalent
Rights.

       

      “Award Certificate” means a
written or electronic document setting forth the terms and provisions applicable
to an Award granted under the Plan.  Each Award Certificate is subject to
the terms and conditions of the Plan.

       

      “Board” means the Board of
Directors of the Company.

       

      “Cash-Based Award” means an
Award entitling the recipient to receive a cash-denominated
payment.

       

      “Code” means the Internal
Revenue Code of 1986, as amended, and any successor Code, and related rules,
regulations and interpretations.

       

      “Consultant” means any
natural person that provides bona fide services to the Company, and such
services are not in connection with the offer or sale of securities in a
capital-raising transaction and do not directly or indirectly promote or
maintain a market for the Company’s securities.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      “Covered Employee” means an
employee who is a “Covered Employee” within the meaning of Section 162(m)
of the Code.

       

      “Dividend Equivalent Right”
means an Award entitling the grantee to receive credits based on cash dividends
that would have been paid on the shares of Stock specified in the Dividend
Equivalent Right (or other award to which it relates) if such shares had been
issued to and held by the grantee.

       

      “Effective Date” means the
date on which the Plan is approved by stockholders as set forth in
Section 21.

       

      “Exchange Act” means the
Securities Exchange Act of 1934, as amended, and the rules and regulations
thereunder.

       

      “Fair Market Value” of the
Stock on any given date means the fair market value of the Stock determined in
good faith by the Administrator; provided, however, that if the Stock is
admitted to quotation on the National Association of Securities Dealers
Automated Quotation System (“NASDAQ”), NASDAQ Global Market or another national
securities exchange, the determination shall be made by reference to market
quotations.  If there are no market quotations for such date, the
determination shall be made by reference to the last date preceding such date
for which there are market quotations; provided further, however, that if the
date for which Fair Market Value is determined is the first day when trading
prices for the Stock are reported on a national securities exchange, the Fair
Market Value shall be the “Price to the Public” (or equivalent) set forth on the
cover page for the final prospectus relating to the Company’s Initial Public
Offering.

       

      “Incentive Stock Option”
means any Stock Option designated and qualified as an “incentive stock option”
as defined in Section 422 of the Code.

       

      “Initial Public Offering”
means the consummation of the first fully underwritten, firm commitment public
offering pursuant to an effective registration statement under the Act covering
the offer and sale by the Company of its equity securities, or such other event
as a result of or following which the Stock shall be publicly held.

       

      “Non-Employee Director” means
a member of the Board who is not also an employee of the Company or any
Subsidiary.

       

      “Non-Qualified Stock Option”
means any Stock Option that is not an Incentive Stock Option.

       

      “Option” or “Stock Option” means any
option to purchase shares of Stock granted pursuant to
Section 5.

       

      “Performance-Based Award”
means any Restricted Stock Award, Restricted Stock Units, Performance Share
Award or Cash-Based Award granted to a Covered Employee that is intended to
qualify as “performance-based compensation” under Section 162(m) of the Code and
the regulations promulgated thereunder.

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      “Performance Criteria” means
the criteria that the Administrator selects for purposes of establishing the
Performance Goal or Performance Goals for an individual for a Performance
Cycle.  The Performance Criteria (which shall be applicable to the
organizational level specified by the Administrator, including, but not limited
to, the Company or a unit, division, group, or Subsidiary of the Company) that
will be used to establish Performance Goals are limited to the
following:  earnings before interest, taxes, depreciation and
amortization, net income (loss) (either before or after interest, taxes,
depreciation and/or amortization), changes in the market price of the Stock,
economic value-added, funds from operations or similar measure, sales or
revenue, acquisitions or strategic transactions, operating income (loss), cash
flow (including, but not limited to, operating cash flow and free cash flow),
return on capital, assets, equity, or investment, stockholder returns, return on
sales, gross or net profit levels, productivity, expense, margins, operating
efficiency, customer satisfaction, working capital, earnings (loss) per share of
Stock, sales or market shares and number of customers, any of which may be
measured either in absolute terms or as compared to any incremental increase or
as compared to results of a peer group.

       

      “Performance Cycle” means one
or more periods of time, which may be of varying and overlapping durations, as
the Administrator may select, over which the attainment of one or more
Performance Criteria will be measured for the purpose of determining a grantee’s
right to and the payment of a Restricted Stock Award, Restricted Stock Units,
Performance Share Award or Cash-Based Award.  Each such period shall not be
less than 12 months.

       

      “Performance Goals” means,
for a Performance Cycle, the specific goals established in writing by the
Administrator for a Performance Cycle based upon the Performance
Criteria.

       

      “Performance Share Award”
means an Award entitling the recipient to acquire shares of Stock upon the
attainment of specified Performance Goals.

       

      “Restricted Stock Award”
means an Award entitling the recipient to acquire, at such purchase price (which
may be zero) as determined by the Administrator, shares of Stock subject to such
restrictions and conditions as the Administrator may determine at the time of
grant.

       

      “Restricted Stock Units”
means an Award of phantom stock units to a grantee.

       

      “Sale Event” shall mean (i)
the sale of all or substantially all of the assets of the Company on a
consolidated basis to an unrelated person or entity, (ii) a merger,
reorganization or consolidation pursuant to which the holders of the Company’s
outstanding voting power immediately prior to such transaction do not own a
majority of the outstanding voting power of the resulting or successor entity
(or its ultimate parent, if applicable) immediately upon completion of such
transaction, (iii) the sale of all of the Stock of the Company to an unrelated
person or entity, or (iv) any other transaction in which the owners of the
Company’s outstanding voting power prior to such transaction do not own at least
a majority of the outstanding voting power of the Company or any successor
entity immediately upon completion of the transaction other than as a result of
the acquisition of securities directly from the Company.

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      “Sale Price” means the value
as determined by the Administrator of the consideration payable, or otherwise to
be received by stockholders, per share of Stock pursuant to a Sale
Event.

       

      “Section 409A” means Section
409A of the Code and the regulations and other guidance promulgated
thereunder.

       

      “Stock” means the Common
Stock, par value $0.001 per share, of the Company, subject to adjustments
pursuant to Section 3.

       

      “Stock Appreciation Right”
means an Award entitling the recipient to receive shares of Stock having a value
equal to the excess of the Fair Market Value of the Stock on the date of
exercise over the exercise price of the Stock Appreciation Right multiplied by
the number of shares of Stock with respect to which the Stock Appreciation Right
shall have been exercised.

       

      “Subsidiary” means any
corporation or other entity (other than the Company) in which the Company has at
least a 50 percent interest, either directly or indirectly.

       

      “Ten Percent Owner” means an
employee who owns or is deemed to own (by reason of the attribution rules of
Section 424(d) of the Code) more than 10 percent of the combined voting power of
all classes of stock of the Company or any parent or subsidiary
corporation.

       

      “Unrestricted Stock Award”
means an Award of shares of Stock free of any restrictions.

       

      
        	
                SECTION
      2.

              	
                ADMINISTRATION OF
      PLAN; ADMINISTRATOR AUTHORITY TO SELECT GRANTEES AND DETERMINE
      AWARDS

              

      

       

      (a)         Administration of
Plan.  The Plan shall be administered by the
Administrator.

       

      (b)         Powers of
Administrator.  The Administrator shall have the power and authority
to grant Awards consistent with the terms of the Plan, including the power and
authority:

       

      (i)           to
select the individuals to whom Awards may from time to time be
granted;

       

      (ii)          to
determine the time or times of grant, and the extent, if any, of Incentive Stock
Options, Non-Qualified Stock Options, Stock Appreciation Rights, Restricted
Stock Awards, Restricted Stock Units, Unrestricted Stock Awards, Cash-Based
Awards, Performance Share Awards and Dividend Equivalent Rights, or any
combination of the foregoing, granted to any one or more grantees;

       

      (iii)         to
determine the number of shares of Stock to be covered by any Award;

       

      (iv)        to
determine and modify from time to time the terms and conditions, including
restrictions, not inconsistent with the terms of the Plan, of any Award, which
terms and conditions may differ among individual Awards and grantees, and to
approve the forms of Award Certificates;

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      (v)         to
accelerate at any time the exercisability or vesting of all or any portion of
any Award;

       

      (vi)        subject
to the provisions of Section 5(b), to extend at any time the period in
which Stock Options may be exercised; and

       

      (vii)       at
any time to adopt, alter and repeal such rules, guidelines and practices for
administration of the Plan and for its own acts and proceedings as it shall deem
advisable; to interpret the terms and provisions of the Plan and any Award
(including related written instruments); to make all determinations it deems
advisable for the administration of the Plan; to decide all disputes arising in
connection with the Plan; and to otherwise supervise the administration of the
Plan.

       

      All
decisions and interpretations of the Administrator shall be binding on all
persons, including the Company and Plan grantees.

       

      (c)         Award
Certificate.  Awards under the Plan shall be evidenced by Award
Certificates that set forth the terms, conditions and limitations for each Award
which may include, without limitation, the term of an Award and the provisions
applicable in the event employment or service terminates.

       

      (d)         Indemnification. 
Neither the Board nor the Administrator, nor any member of either or any
delegate thereof, shall be liable for any act, omission, interpretation,
construction or determination made in good faith in connection with the Plan,
and the members of the Board and the Administrator (and any delegate thereof)
shall be entitled in all cases to indemnification and reimbursement by the
Company in respect of any claim, loss, damage or expense (including, without
limitation, reasonable attorneys’ fees) arising or resulting therefrom to the
fullest extent permitted by law and/or under the Company’s articles or bylaws or
any directors’ and officers’ liability insurance coverage which may be in effect
from time to time and/or any indemnification agreement between such individual
and the Company.

       

      (e)         Foreign Award
Recipients.  Notwithstanding any provision of the Plan to the
contrary, in order to comply with the laws in other countries in which the
Company and its Subsidiaries operate or have employees or other individuals
eligible for Awards, the Administrator, in its sole discretion, shall have the
power and authority to:  (i) determine which Subsidiaries shall be
covered by the Plan; (ii) determine which individuals outside the United States
are eligible to participate in the Plan; (iii) modify the terms and conditions
of any Award granted to individuals outside the United States to comply with
applicable foreign laws; (iv) establish subplans and modify exercise procedures
and other terms and procedures, to the extent the Administrator determines such
actions to be necessary or advisable (and such subplans and/or modifications
shall be attached to this Plan as appendices); provided, however, that no such
subplans and/or modifications shall increase the share limitations contained in
Section 3(a) hereof; and (v) take any action, before or after an Award is made, that
the Administrator determines to be necessary or advisable to obtain approval or
comply with any local governmental regulatory exemptions or approvals. 
Notwithstanding the foregoing, the Administrator may not take any actions
hereunder, and no Awards shall be granted, that would violate the Exchange Act
or any other applicable United States securities law, the Code, or any other
applicable United States governing statute or law.

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      
        	
                SECTION
      3.

              	
                STOCK ISSUABLE UNDER
      THE PLAN; MERGERS;
SUBSTITUTION

              

      

       

      (a)         Stock Issuable. 
The maximum number of shares of Stock reserved and available for issuance under
the Plan shall be 2,263,320 shares (the “Initial Limit”), subject to adjustment
as provided in Section 3(b), plus on January 1, 2012 and each January 1
thereafter, the number of shares of Stock reserved and available for issuance
under the Plan shall be cumulatively increased by 4 percent (4%) of the number
of shares of Stock issued and outstanding on the immediately preceding December
31 (the “Annual Increase”).  Subject to such overall limitation, the
maximum aggregate number of shares of Stock that may be issued in the form of
Incentive Stock Options shall not exceed the Initial Limit cumulatively
increased on January 1, 2012 and on each January 1 thereafter by the lesser of
the Annual Increase for such year or 50% of the Initial Limit, subject in all
cases to adjustment as provided in Section 3(b).  For purposes of this
limitation, the shares of Stock underlying any Awards that are forfeited,
canceled, held back upon exercise of an Option or settlement of an Award to
cover the exercise price or tax withholding, reacquired by the Company prior to
vesting, satisfied without the issuance of Stock or otherwise terminated (other
than by exercise) shall be added back to the shares of Stock available for
issuance under the Plan.  In the event the Company repurchases shares of
Stock on the open market, such shares shall not be added to the shares of Stock
available for issuance under the Plan.  Subject to such overall
limitations, shares of Stock may be issued up to such maximum number pursuant to
any type or types of Award; provided, however, that Stock Options or Stock
Appreciation Rights with respect to no more than 50% of the Initial Limit may be
granted to any one individual grantee during any one calendar year period. 
The shares available for issuance under the Plan may be authorized but unissued
shares of Stock or shares of Stock reacquired by the Company.

       

      (b)        Changes in
Stock.  Subject to Section 3(c) hereof, if, as a result of any
reorganization, recapitalization, reclassification, stock dividend, stock split,
reverse stock split or other similar change in the Company’s capital stock, the
outstanding shares of Stock are increased or decreased or are exchanged for a
different number or kind of shares or other securities of the Company, or
additional shares or new or different shares or other securities of the Company
or other non-cash assets are distributed with respect to such shares of Stock or
other securities, or, if, as a result of any merger or consolidation, sale of
all or substantially all of the assets of the Company, the outstanding shares of
Stock are converted into or exchanged for securities of the Company or any
successor entity (or a parent or subsidiary thereof), the Administrator shall
make an appropriate or proportionate adjustment in (i) the maximum number of
shares reserved for issuance under the Plan, including the maximum number of
shares that may be issued in the form of Incentive Stock Options, (ii) the
number of Stock Options or Stock Appreciation Rights that can be granted to any
one individual grantee and the maximum number of shares that may be granted
under a Performance-Based Award, (iii) the number and kind of shares or other
securities subject to any then outstanding Awards under the Plan, (iv) the
repurchase price, if any, per share subject to each outstanding Restricted Stock
Award, and (v) the exercise price for each share subject to any then
outstanding Stock Options and Stock Appreciation Rights under the Plan, without
changing the aggregate exercise price (i.e., the exercise price multiplied by
the number of Stock Options and Stock Appreciation Rights) as to which such
Stock Options and Stock Appreciation Rights remain exercisable.  The
Administrator shall also make equitable or proportionate adjustments in the
number of shares subject to outstanding Awards and the exercise price and the
terms of outstanding Awards to take into consideration cash dividends paid other
than in the ordinary course or any other extraordinary corporate event. 
The adjustment by the Administrator shall be final, binding and
conclusive.  No fractional shares of Stock shall be issued under the Plan
resulting from any such adjustment, but the Administrator in its discretion may
make a cash payment in lieu of fractional shares.

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      (c)         Mergers and Other
Transactions.  Except as the Administrator may otherwise specify
with respect to particular Awards in the relevant Award Certificate, in the case
of and subject to the consummation of a Sale Event, the Plan and all outstanding
Awards granted hereunder shall terminate, unless provision is made in connection
with the Sale Event in the sole discretion of the parties thereto for the
assumption or continuation of Awards theretofore granted by the successor
entity, or the substitution of such Awards with new Awards of the successor
entity or parent thereof, with appropriate adjustment as to the number and kind
of shares and, if appropriate, the per share exercise prices, as such parties
shall agree (after taking into account any acceleration hereunder).  In the
event of such termination, (i) the Company shall have the option (in its sole
discretion) to make or provide for a cash payment to the grantees holding
Options and Stock Appreciation Rights, in exchange for the cancellation thereof,
in an amount equal to the difference between (A) the Sale Price multiplied by
the number of shares of Stock subject to outstanding Options and Stock
Appreciation Rights (to the extent then exercisable (after taking into account
any acceleration hereunder) at prices not in excess of the Sale Price) and (B)
the aggregate exercise price of all such outstanding Options and Stock
Appreciation Rights; or (ii) each grantee shall be permitted, within a specified
period of time prior to the consummation of the Sale Event as determined by the
Administrator, to exercise all outstanding Options and Stock Appreciation Rights
held by such grantee.  The Administrator shall also have the discretion to
accelerate the vesting of all other Awards.

       

      (d)        Substitute
Awards.  The Administrator may grant Awards under the Plan in
substitution for stock and stock based awards held by employees, directors or
other key persons of another corporation in connection with the merger or
consolidation of the employing corporation with the Company or a Subsidiary or
the acquisition by the Company or a Subsidiary of property or stock of the
employing corporation.  The Administrator may direct that the substitute
awards be granted on such terms and conditions as the Administrator considers
appropriate in the circumstances.  Any substitute Awards granted under the
Plan shall not count against the share limitation set forth in
Section 3(a).

       

      
        	
                SECTION
      4.

              	
                ELIGIBILITY

              

      

       

      Grantees
under the Plan will be such full or part-time officers and other employees,
Non-Employee Directors and key persons (including Consultants and prospective
employees) of the Company and its Subsidiaries as are selected from time to time
by the Administrator in its sole discretion.

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      
        	
                SECTION
      5.

              	
                STOCK
      OPTIONS

              

      

       

      Any Stock
Option granted under the Plan shall be in such form as the Administrator may
from time to time approve.

       

      Stock
Options granted under the Plan may be either Incentive Stock Options or
Non-Qualified Stock Options.  Incentive Stock Options may be granted only
to employees of the Company or any Subsidiary that is a “subsidiary corporation”
within the meaning of Section 424(f) of the Code.  To the extent that
any Option does not qualify as an Incentive Stock Option, it shall be deemed a
Non-Qualified Stock Option.

       

      Stock
Options granted pursuant to this Section 5 shall be subject to the
following terms and conditions and shall contain such additional terms and
conditions, not inconsistent with the terms of the Plan, as the Administrator
shall deem desirable.  If the Administrator so determines, Stock Options
may be granted in lieu of cash compensation at the optionee’s election, subject
to such terms and conditions as the Administrator may establish.

       

      (a)         Exercise Price. 
The exercise price per share for the Stock covered by a Stock Option granted
pursuant to this Section 5 shall be determined by the Administrator at the
time of grant but shall not be less than 100 percent of the Fair Market Value on
the date of grant.  In the case of an Incentive Stock Option that is
granted to a Ten Percent Owner, the option price of such Incentive Stock Option
shall be not less than 110 percent of the Fair Market Value on the grant
date.

       

      (b)         Option Term. 
The term of each Stock Option shall be fixed by the Administrator, but no Stock
Option shall be exercisable more than ten years after the date the Stock Option
is granted.  In the case of an Incentive Stock Option that is granted to a
Ten Percent Owner, the term of such Stock Option shall be no more than five
years from the date of grant.

       

      (c)         Exercisability; Rights of a
Stockholder.  Stock Options shall become exercisable at such time or
times, whether or not in installments, as shall be determined by the
Administrator at or after the grant date.  The Administrator may at any
time accelerate the exercisability of all or any portion of any Stock
Option.  An optionee shall have the rights of a stockholder only as to
shares acquired upon the exercise of a Stock Option and not as to unexercised
Stock Options.

       

      (d)        Method of
Exercise.  Stock Options may be exercised in whole or in part, by
giving written or electronic notice of exercise to the Company, specifying the
number of shares to be purchased.  Payment of the purchase price may be
made by one or more of the following methods to the extent provided in the
Option Award Certificate:

       

      (i)           In
cash, by certified or bank check or other instrument acceptable to the
Administrator;

       

      (ii)          Through
the delivery (or attestation to the ownership) of shares of Stock that have been
purchased by the optionee on the open market or that have been beneficially
owned by the optionee for at least six months and that are not then subject to
restrictions under any Company plan.  Such surrendered shares shall be
valued at Fair Market Value on the exercise date;

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

      (iii)         By
the optionee delivering to the Company a properly executed exercise notice
together with irrevocable instructions to a broker to promptly deliver to the
Company cash or a check payable and acceptable to the Company for the purchase
price; provided that in the event the optionee chooses to pay the purchase price
as so provided, the optionee and the broker shall comply with such procedures
and enter into such agreements of indemnity and other agreements as the
Administrator shall prescribe as a condition of such payment procedure;
or

       

      (iv)        With
respect to Stock Options that are not Incentive Stock Options, by a “net
exercise” arrangement pursuant to which the Company will reduce the number of
shares of Stock issuable upon exercise by the largest whole number of shares
with a Fair Market Value that does not exceed the aggregate exercise
price.

       

      Payment
instruments will be received subject to collection.  The transfer to the
optionee on the records of the Company or of the transfer agent of the shares of
Stock to be purchased pursuant to the exercise of a Stock Option will be
contingent upon receipt from the optionee (or a purchaser acting in his stead in
accordance with the provisions of the Stock Option) by the Company of the full
purchase price for such shares and the fulfillment of any other requirements
contained in the Option Award Certificate or applicable provisions of laws
(including the satisfaction of any withholding taxes that the Company is
obligated to withhold with respect to the optionee).  In the event an
optionee chooses to pay the purchase price by previously-owned shares of Stock
through the attestation method, the number of shares of Stock transferred to the
optionee upon the exercise of the Stock Option shall be net of the number of
attested shares.  In the event that the Company establishes, for itself or
using the services of a third party, an automated system for the exercise of
Stock Options, such as a system using an internet website or interactive voice
response, then the paperless exercise of Stock Options may be permitted through
the use of such an automated system.

       

      (e)         Annual Limit on Incentive
Stock Options.  To the extent required for “incentive stock option”
treatment under Section 422 of the Code, the aggregate Fair Market Value
(determined as of the time of grant) of the shares of Stock with respect to
which Incentive Stock Options granted under this Plan and any other plan of the
Company or its parent and subsidiary corporations become exercisable for the
first time by an optionee during any calendar year shall not exceed
$100,000.  To the extent that any Stock Option exceeds this limit, it shall
constitute a Non-Qualified Stock Option.

       

      
        	
                SECTION
      6.

              	
                STOCK APPRECIATION
      RIGHTS

              

      

       

      (a)         Exercise Price of Stock
Appreciation Rights.  The exercise price of a Stock Appreciation
Right shall not be less than 100 percent of the Fair Market Value of the Stock
on the date of grant.

       

      (b)         Grant and Exercise of Stock
Appreciation Rights.  Stock Appreciation Rights may be granted by
the Administrator independently of any Stock Option granted pursuant to
Section 5 of the Plan.

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

      (c)         Terms and Conditions of
Stock Appreciation Rights.  Stock Appreciation Rights shall be
subject to such terms and conditions as shall be determined from time to time by
the Administrator.  The term of a Stock Appreciation Right may not exceed
ten years.

       

      
        	
                SECTION
      7.

              	
                RESTRICTED STOCK
      AWARDS

              

      

       

      (a)         Nature of Restricted Stock
Awards.  The Administrator shall determine the restrictions and
conditions applicable to each Restricted Stock Award at the time of grant. 
Conditions may be based on continuing employment (or other service relationship)
and/or achievement of pre-established performance goals and objectives. 
The terms and conditions of each such Award Certificate shall be determined by
the Administrator, and such terms and conditions may differ among individual
Awards and grantees.

       

      (b)        Rights as a
Stockholder.  Upon the grant of the Restricted Stock Award and
payment of any applicable purchase price, a grantee shall have the rights of a
stockholder with respect to the voting of the Restricted Stock, subject to such
conditions contained in the Restricted Stock Award Certificate.  Unless the
Administrator shall otherwise determine, (i) uncertificated Restricted Stock
shall be accompanied by a notation on the records of the Company or the transfer
agent to the effect that they are subject to forfeiture until such Restricted
Stock are vested as provided in Section 7(d) below, and (ii) certificated
Restricted Stock shall remain in the possession of the Company until such
Restricted Stock is vested as provided in Section 7(d) below, and the
grantee shall be required, as a condition of the grant, to deliver to the
Company such instruments of transfer as the Administrator may
prescribe.

       

      (c)         Restrictions. 
Restricted Stock may not be sold, assigned, transferred, pledged or otherwise
encumbered or disposed of except as specifically provided herein or in the
Restricted Stock Award Certificate.  Except as may otherwise be provided by
the Administrator either in the Award Certificate or, subject to Section 18
below, in writing after the Award is issued, if a grantee’s employment (or other
service relationship) with the Company and its Subsidiaries terminates for any
reason, any Restricted Stock that has not vested at the time of termination
shall automatically and without any requirement of notice to such grantee from
or other action by or on behalf of, the Company be deemed to have been
reacquired by the Company at its original purchase price (if any) from such
grantee or such grantee’s legal representative simultaneously with such
termination of employment (or other service relationship), and thereafter shall
cease to represent any ownership of the Company by the grantee or rights of the
grantee as a stockholder.  Following such deemed reacquisition of unvested
Restricted Stock that are represented by physical certificates, a grantee shall
surrender such certificates to the Company upon request without
consideration.

       

      (d)        Vesting of Restricted
Stock.  The Administrator at the time of grant shall specify the
date or dates and/or the attainment of pre-established performance goals,
objectives and other conditions on which the non-transferability of the
Restricted Stock and the Company’s right of repurchase or forfeiture shall
lapse.  Subsequent to such date or dates and/or the attainment of such
pre-established performance goals, objectives and other conditions, the shares
on which all restrictions have lapsed shall no longer be Restricted Stock and
shall be deemed “vested.”  Except as may otherwise be provided by the
Administrator either in the Award Certificate or, subject to Section 18
below, in writing after the Award is issued, a grantee’s rights in any shares of
Restricted Stock that have not vested shall automatically terminate upon the
grantee’s termination of employment (or other service relationship) with the
Company and its Subsidiaries and such shares shall be subject to the provisions
of Section 7(c) above.

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

      
        	
                SECTION
      8.

              	
                RESTRICTED STOCK
      UNITS

              

      

       

      (a)         Nature of Restricted Stock
Units.   The Administrator shall determine the restrictions and
conditions applicable to each Restricted Stock Unit at the time of grant. 
Conditions may be based on continuing employment (or other service relationship)
and/or achievement of pre-established performance goals and objectives. 
The terms and conditions of each such Award Certificate shall be determined by
the Administrator, and such terms and conditions may differ among individual
Awards and grantees.  At the end of the deferral period, the Restricted
Stock Units, to the extent vested, shall be settled in the form of shares of
Stock.  To the extent that an award of Restricted Stock Units is subject to
Section 409A, it may contain such additional terms and conditions as the
Administrator shall determine in its sole discretion in order for such Award to
comply with the requirements of Section 409A.

       

      (b)        Election to Receive
Restricted Stock Units in Lieu of Compensation.  The Administrator
may, in its sole discretion, permit a grantee to elect to receive a portion of
future cash compensation otherwise due to such grantee in the form of an award
of Restricted Stock Units.  Any such election shall be made in writing and
shall be delivered to the Company no later than the date specified by the
Administrator and in accordance with Section 409A and such other rules and
procedures established by the Administrator.  Any such future cash
compensation that the grantee elects to defer shall be converted to a fixed
number of Restricted Stock Units based on the Fair Market Value of Stock on the
date the compensation would otherwise have been paid to the grantee if such
payment had not been deferred as provided herein.  The Administrator shall
have the sole right to determine whether and under what circumstances to permit
such elections and to impose such limitations and other terms and conditions
thereon as the Administrator deems appropriate.  Any Restricted Stock Units
that are elected to be received in lieu of cash compensation shall be fully
vested, unless otherwise provided in the Award Certificate.

       

      (c)         Rights as a
Stockholder.  A grantee shall have the rights as a stockholder only
as to shares of Stock acquired by the grantee upon settlement of Restricted
Stock Units; provided, however, that the grantee may be credited with Dividend
Equivalent Rights with respect to the phantom stock units underlying his
Restricted Stock Units, subject to such terms and conditions as the
Administrator may determine.

       

      (d)        Termination. 
Except as may otherwise be provided by the Administrator either in the Award
Certificate or, subject to Section 18 below, in writing after the Award is
issued, a grantee’s right in all Restricted Stock Units that have not vested
shall automatically terminate upon the grantee’s termination of employment (or
cessation of service relationship) with the Company and its Subsidiaries for any
reason.

       

      
        	
                SECTION
      9.

              	
                UNRESTRICTED STOCK
      AWARDS

              

      

       

      Grant or Sale of
Unrestricted Stock.  The Administrator may, in its sole discretion,
grant (or sell at par value or such higher purchase price determined by the
Administrator) an Unrestricted Stock Award under the Plan.  Unrestricted
Stock Awards may be granted in respect of past services or other valid
consideration, or in lieu of cash compensation due to such
grantee.

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

      
        	
                SECTION
      10.

              	
                CASH-BASED
      AWARDS

              

      

       

      Grant of Cash-Based
Awards.  The Administrator may, in its sole discretion, grant
Cash-Based Awards to any grantee in such number or amount and upon such terms,
and subject to such conditions, as the Administrator shall determine at the time
of grant.  The Administrator shall determine the maximum duration of the
Cash-Based Award, the amount of cash to which the Cash-Based Award pertains, the
conditions upon which the Cash-Based Award shall become vested or payable, and
such other provisions as the Administrator shall determine.  Each
Cash-Based Award shall specify a cash-denominated payment amount, formula or
payment ranges as determined by the Administrator.  Payment, if any, with
respect to a Cash-Based Award shall be made in accordance with the terms of the
Award and may be made in cash or in shares of Stock, as the Administrator
determines.

       

      
        	
                SECTION
      11.

              	
                PERFORMANCE SHARE
      AWARDS

              

      

       

      (a)         Nature of Performance Share
Awards.  The Administrator may, in its sole discretion, grant
Performance Share Awards independent of, or in connection with, the granting of
any other Award under the Plan.  The Administrator shall determine whether
and to whom Performance Share Awards shall be granted, the Performance Goals,
the periods during which performance is to be measured, and such other
limitations and conditions as the Administrator shall determine.

       

      (b)        Rights as a
Stockholder.  A grantee receiving a Performance Share Award shall
have the rights of a stockholder only as to shares actually received by the
grantee under the Plan and not with respect to shares subject to the Award but
not actually received by the grantee.  A grantee shall be entitled to
receive shares of Stock under a Performance Share Award only upon satisfaction
of all conditions specified in the Performance Share Award Certificate (or in a
performance plan adopted by the Administrator).

       

      (c)         Termination. 
Except as may otherwise be provided by the Administrator either in the Award
agreement or, subject to Section 18 below, in writing after the Award is
issued, a grantee’s rights in all Performance Share Awards shall automatically
terminate upon the grantee’s termination of employment (or cessation of service
relationship) with the Company and its Subsidiaries for any reason.

       

      
        	
                SECTION
      12.

              	
                PERFORMANCE-BASED
      AWARDS TO COVERED EMPLOYEES

              

      

       

      (a)         Performance-Based
Awards.  Any employee or other key person providing services to the
Company and who is selected by the Administrator may be granted one or more
Performance-Based Awards in the form of a Restricted Stock Award, Restricted
Stock Units, Performance Share Awards or Cash-Based Award payable upon the
attainment of Performance Goals that are established by the Administrator and
relate to one or more of the Performance Criteria, in each case on a specified
date or dates or over any period or periods determined by the
Administrator.  The Administrator shall define in an objective fashion the
manner of calculating the Performance Criteria it selects to use for any
Performance Cycle.  Depending on the Performance Criteria used to establish
such Performance Goals, the Performance Goals may be expressed in terms of
overall Company performance or the performance of a division, business unit, or
an individual.  The Administrator, in its discretion, may adjust or modify
the calculation of Performance Goals for such Performance Cycle in order to
prevent the dilution or enlargement of the rights of an individual (i) in the
event of, or in anticipation of, any unusual or extraordinary corporate item,
transaction, event or development, (ii) in recognition of, or in anticipation
of, any other unusual or nonrecurring events affecting the Company, or the
financial statements of the Company, or (iii) in response to, or in anticipation
of, changes in applicable laws, regulations, accounting principles, or business
conditions provided however, that the Administrator may not exercise such
discretion in a manner that would increase the Performance-Based Award granted
to a Covered Employee.  Each Performance-Based Award shall comply with the
provisions set forth below.

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

      (b)        Grant of Performance-Based
Awards.  With respect to each Performance-Based Award granted to a
Covered Employee, the Administrator shall select, within the first 90 days of a
Performance Cycle (or, if shorter, within the maximum period allowed under
Section 162(m) of the Code) the Performance Criteria for such grant, and
the Performance Goals with respect to each Performance Criterion (including a
threshold level of performance below which no amount will become payable with
respect to such Award).  Each Performance-Based Award will specify the
amount payable, or the formula for determining the amount payable, upon
achievement of the various applicable performance targets.  The Performance
Criteria established by the Administrator may be (but need not be) different for
each Performance Cycle and different Performance Goals may be applicable to
Performance-Based Awards to different Covered Employees.

       

      (c)         Payment of Performance-Based
Awards.  Following the completion of a Performance Cycle, the
Administrator shall meet to review and certify in writing whether, and to what
extent, the Performance Goals for the Performance Cycle have been achieved and,
if so, to also calculate and certify in writing the amount of the
Performance-Based Awards earned for the Performance Cycle.  The
Administrator shall then determine the actual size of each Covered Employee’s
Performance-Based Award, and, in doing so, may reduce or eliminate the amount of
the Performance-Based Award for a Covered Employee if, in its sole judgment,
such reduction or elimination is appropriate.

       

      (d)        Maximum Award
Payable.  The maximum Performance-Based Award payable to any one
Covered Employee under the Plan for a Performance Cycle is up to 50% of the
Initial Limit (subject to adjustment as provided in Section 3(b) hereof) or
$500,000 in the case of a Performance-Based Award that is a Cash-Based
Award.

       

      
        	
                SECTION
      13.

              	
                DIVIDEND EQUIVALENT
      RIGHTS

              

      

       

      (a)         Dividend Equivalent
Rights.  A Dividend Equivalent Right may be granted hereunder to any
grantee as a component of an award of Restricted Stock Units, Restricted Stock
Award or Performance Share Award or as a freestanding award.  The terms and
conditions of Dividend Equivalent Rights shall be specified in the Award
Certificate.  Dividend equivalents credited to the holder of a Dividend
Equivalent Right may be paid currently or may be deemed to be reinvested in
additional shares of Stock, which may thereafter accrue additional
equivalents.  Any such reinvestment shall be at Fair Market Value on the
date of reinvestment or such other price as may then apply under a dividend
reinvestment plan sponsored by the Company, if any.  Dividend Equivalent
Rights may be settled in cash or shares of Stock or a combination thereof, in a
single installment or installments.  A Dividend Equivalent Right granted as
a component of an award of Restricted Stock Units, Restricted Stock Award or
Performance Share Award may provide that such Dividend Equivalent Right shall be
settled upon settlement or payment of, or lapse of restrictions on, such other
Award, and that such Dividend Equivalent Right shall expire or be forfeited or
annulled under the same conditions as such other Award.  A Dividend
Equivalent Right granted as a component of a Restricted Stock Units, Restricted
Stock Award or Performance Share Award may also contain terms and conditions
different from such other Award.

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

      (b)        Interest
Equivalents.  Any Award under this Plan that is settled in whole or
in part in cash on a deferred basis may provide in the grant for interest
equivalents to be credited with respect to such cash payment.  Interest
equivalents may be compounded and shall be paid upon such terms and conditions
as may be specified by the grant.

       

      (c)         Termination. 
Except as may otherwise be provided by the Administrator either in the Award
Certificate or, subject to Section 18 below, in writing after the Award is
issued, a grantee’s rights in all Dividend Equivalent Rights or interest
equivalents granted as a component of an award of Restricted Stock Units,
Restricted Stock Award or Performance Share Award that has not vested shall
automatically terminate upon the grantee’s termination of employment (or
cessation of service relationship) with the Company and its Subsidiaries for any
reason.

       

      
        	
                SECTION
      14.

              	
                TRANSFERABILITY OF
      AWARDS

              

      

       

      (a)         Transferability. 
Except as provided in Section 14(b) below, during a grantee’s lifetime, his
or her Awards shall be exercisable only by the grantee, or by the grantee’s
legal representative or guardian in the event of the grantee’s incapacity. 
No Awards shall be sold, assigned, transferred or otherwise encumbered or
disposed of by a grantee other than by will or by the laws of descent and
distribution or pursuant to a domestic relations order.  No Awards shall be
subject, in whole or in part, to attachment, execution, or levy of any kind, and
any purported transfer in violation hereof shall be null and void.

       

      (b)        Administrator
Action.  Notwithstanding Section 14(a), the Administrator, in
its discretion, may provide either in the Award Certificate regarding a given
Award or by subsequent written approval that the grantee (who is an employee or
director) may transfer his or her Awards (other than any Incentive Stock Options
or Restricted Stock Units) to his or her immediate family members, to trusts for
the benefit of such family members, or to partnerships in which such family
members are the only partners, provided that the transferee agrees in writing
with the Company to be bound by all of the terms and conditions of this Plan and
the applicable Award.  In no event may an Award be transferred by a grantee
for value.

       

      (c)         Family Member. 
For purposes of Section 14(b), “family member” shall mean a grantee’s
child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former
spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law,
daughter-in-law, brother-in-law, or sister-in-law, including adoptive
relationships, any person sharing the grantee’s household (other than a tenant
of the grantee), a trust in which these persons (or the grantee) have more than
50 percent of the beneficial interest, a foundation in which these persons (or
the grantee) control the management of assets, and any other entity in which
these persons (or the grantee) own more than 50 percent of the voting
interests.

      
        
           

        

        
          14

          
            

          

        

        
           

        

      

      (d)        Designation of
Beneficiary.  Each grantee to whom an Award has been made under the
Plan may designate a beneficiary or beneficiaries to exercise any Award or
receive any payment under any Award payable on or after the grantee’s
death.  Any such designation shall be on a form provided for that purpose
by the Administrator and shall not be effective until received by the
Administrator.  If no beneficiary has been designated by a deceased
grantee, or if the designated beneficiaries have predeceased the grantee, the
beneficiary shall be the grantee’s estate.

       

      
        	
                SECTION
      15.

              	
                TAX
      WITHHOLDING

              

      

       

      (a)         Payment by
Grantee.  Each grantee shall, no later than the date as of which the
value of an Award or of any Stock or other amounts received thereunder first
becomes includable in the gross income of the grantee for Federal income tax
purposes, pay to the Company, or make arrangements satisfactory to the
Administrator regarding payment of, any Federal, state, or local taxes of any
kind required by law to be withheld by the Company with respect to such
income.  The Company and its Subsidiaries shall, to the extent permitted by
law, have the right to deduct any such taxes from any payment of any kind
otherwise due to the grantee.  The Company’s obligation to deliver evidence
of book entry (or stock certificates) to any grantee is subject to and
conditioned on tax withholding obligations being satisfied by the
grantee.

       

      (b)        Payment in
Stock.  Subject to approval by the Administrator, a grantee may
elect to have the Company’s minimum required tax withholding obligation
satisfied, in whole or in part, by authorizing the Company to withhold from
shares of Stock to be issued pursuant to any Award a number of shares with an
aggregate Fair Market Value (as of the date the withholding is effected) that
would satisfy the withholding amount due.

       

      
        	
                SECTION
      16.

              	
                SECTION 409A
      AWARDS

              

      

       

      To the
extent that any Award is determined to constitute “nonqualified deferred
compensation” within the meaning of Section 409A (a “409A Award”), the Award
shall be subject to such additional rules and requirements as specified by the
Administrator from time to time in order to comply with Section 409A.  In
this regard, if any amount under a 409A Award is payable upon a “separation from
service” (within the meaning of Section 409A) to a grantee who is then
considered a “specified employee” (within the meaning of Section 409A), then no
such payment shall be made prior to the date that is the earlier of (i) six
months and one day after the grantee’s separation from service, or (ii) the
grantee’s death, but only to the extent such delay is necessary to prevent such
payment from being subject to interest, penalties and/or additional tax imposed
pursuant to Section 409A.  Further, the settlement of any such Award may
not be accelerated except to the extent permitted by Section
409A.

      
        
           

        

        
          15

          
            

          

        

        
           

        

      

      
        	
                SECTION
      17.

              	
                TRANSFER, LEAVE OF
      ABSENCE, ETC.

              

      

       

      For
purposes of the Plan, the following events shall not be deemed a termination of
employment:

       

      (a)         a
transfer to the employment of the Company from a Subsidiary or from the Company
to a Subsidiary, or from one Subsidiary to another; or

       

      (b)        an
approved leave of absence for military service or sickness, or for any other
purpose approved by the Company, if the employee’s right to re-employment is
guaranteed either by a statute or by contract or under the policy pursuant to
which the leave of absence was granted or if the Administrator otherwise so
provides in writing.

       

      
        	
                SECTION
      18.

              	
                AMENDMENTS AND
      TERMINATION

              

      

       

      The Board
may, at any time, amend or discontinue the Plan and the Administrator may, at
any time, amend or cancel any outstanding Award for the purpose of satisfying
changes in law or for any other lawful purpose, but no such action shall
adversely affect rights under any outstanding Award without the holder’s
consent.  The Administrator is specifically authorized to exercise its
discretion to reduce the exercise price of outstanding Stock Options or Stock
Appreciation Rights or effect the repricing through cancellation and
re-grants.  To the extent required under the rules of any securities
exchange or market system on which the Stock is listed, to the extent determined
by the Administrator to be required by the Code to ensure that Incentive Stock
Options granted under the Plan are qualified under Section 422 of the Code,
or to ensure that compensation earned under Awards qualifies as
performance-based compensation under Section 162(m) of the Code, Plan
amendments shall be subject to approval by the Company stockholders entitled to
vote at a meeting of stockholders.  Nothing in this Section 18 shall
limit the Administrator’s authority to take any action permitted pursuant to
Section 3(b) or 3(c).

       

      
        	
                SECTION
      19.

              	
                STATUS OF
      PLAN

              

      

       

      With
respect to the portion of any Award that has not been exercised and any payments
in cash, Stock or other consideration not received by a grantee, a grantee shall
have no rights greater than those of a general creditor of the Company unless
the Administrator shall otherwise expressly determine in connection with any
Award or Awards.  In its sole discretion, the Administrator may authorize
the creation of trusts or other arrangements to meet the Company’s obligations
to deliver Stock or make payments with respect to Awards hereunder, provided
that the existence of such trusts or other arrangements is consistent with the
foregoing sentence.

       

      
        	
                SECTION
      20.

              	
                GENERAL
      PROVISIONS

              

      

       

      (a)         No
Distribution.  The Administrator may require each person acquiring
Stock pursuant to an Award to represent to and agree with the Company in writing
that such person is acquiring the shares without a view to distribution
thereof.

      
        
           

        

        
          16

          
            

          

        

        
           

        

      

      (b)        Delivery of Stock
Certificates.  Stock certificates to grantees under this Plan shall
be deemed delivered for all purposes when the Company or a stock transfer agent
of the Company shall have mailed such certificates in the United States mail,
addressed to the grantee, at the grantee’s last known address on file with the
Company.  Uncertificated Stock shall be deemed delivered for all purposes
when the Company or a Stock transfer agent of the Company shall have given to
the grantee by electronic mail (with proof of receipt) or by United States mail,
addressed to the grantee, at the grantee’s last known address on file with the
Company, notice of issuance and recorded the issuance in its records (which may
include electronic “book entry” records).  Notwithstanding anything herein
to the contrary, the Company shall not be required to issue or deliver any
certificates evidencing shares of Stock pursuant to the exercise of any Award,
unless and until the Administrator has determined, with advice of counsel (to
the extent the Administrator deems such advice necessary or advisable), that the
issuance and delivery of such certificates is in compliance with all applicable
laws, regulations of governmental authorities and, if applicable, the
requirements of any exchange on which the shares of Stock are listed, quoted or
traded.  All Stock certificates delivered pursuant to the Plan shall be
subject to any stop-transfer orders and other restrictions as the Administrator
deems necessary or advisable to comply with federal, state or foreign
jurisdiction, securities or other laws, rules and quotation system on which the
Stock is listed, quoted or traded.  The Administrator may place legends on
any Stock certificate to reference restrictions applicable to the Stock. 
In addition to the terms and conditions provided herein, the Administrator may
require that an individual make such reasonable covenants, agreements, and
representations as the Administrator, in its discretion, deems necessary or
advisable in order to comply with any such laws, regulations, or
requirements.  The Administrator shall have the right to require any
individual to comply with any timing or other restrictions with respect to the
settlement or exercise of any Award, including a window-period limitation, as
may be imposed in the discretion of the Administrator.

       

      (c)         Stockholder
Rights.  Until Stock is deemed delivered in accordance with Section
20(b), no right to vote or receive dividends or any other rights of a
stockholder will exist with respect to shares of Stock to be issued in
connection with an Award, notwithstanding the exercise of a Stock Option or any
other action by the grantee with respect to an Award.

       

      (d)        Other Compensation
Arrangements; No Employment Rights.  Nothing contained in this Plan
shall prevent the Board from adopting other or additional compensation
arrangements, including trusts, and such arrangements may be either generally
applicable or applicable only in specific cases.  The adoption of this Plan
and the grant of Awards do not confer upon any employee any right to continued
employment with the Company or any Subsidiary.

       

      (e)         Trading Policy
Restrictions.  Option exercises and other Awards under the Plan
shall be subject to the Company’s insider trading policies and procedures, as in
effect from time to time.

       

      (f)         
Forfeiture of Awards
under Sarbanes-Oxley Act.  If the Company is required to prepare an
accounting restatement due to the material noncompliance of the Company, as a
result of misconduct, with any financial reporting requirement under the
securities laws, then any grantee who is one of the individuals subject to
automatic forfeiture under Section 304 of the Sarbanes-Oxley Act of 2002 shall
reimburse the Company for the amount of any Award received by such individual
under the Plan during the 12-month period following the first public issuance or
filing with the United States Securities and Exchange Commission, as the case
may be, of the financial document embodying such financial reporting
requirement.

      
        
           

        

        
          17

          
            

          

        

        
           

        

      

      
        	
                SECTION
      21.

              	
                EFFECTIVE DATE OF
      PLAN

              

      

       

      This Plan
shall become effective upon stockholder approval in accordance with applicable
state law, the Company’s bylaws and articles of incorporation, and applicable
stock exchange rules or pursuant to written consent.  No grants of Stock
Options and other Awards may be made hereunder after the tenth anniversary of
the Effective Date and no grants of Incentive Stock Options may be made
hereunder after the tenth anniversary of the date the Plan is approved by the
Board.

       

      
        	
                SECTION
      22.

              	
                GOVERNING
      LAW

              

      

       

      This Plan
and all Awards and actions taken thereunder shall be governed by, and construed
in accordance with, the laws of the State of Delaware, applied without regard to
conflict of law principles.

       

      DATE
APPROVED BY BOARD OF DIRECTORS: September 28, 2010

       

      DATE
APPROVED BY STOCKHOLDERS:  September 28, 2010

      
        
           

        

        
          18

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