Document:

Exhibit
      10.1

     

    EMPLOYMENT
      AGREEMENT

     

    This
      Agreement (this “Agreement”),
      dated
      as of July 18, 2008 (the “Effective
      Date”)
      by and
      between VioQuest Pharmaceuticals, Inc., a Delaware corporation with principal
      executive offices at 180 Mount Airy Road, Suite 102, Basking Ridge, NJ 07920
      (the “Company”),
      and
      Christopher Schnittker, residing at 652 Ashbourne Road, Elkins Park, PA 19027
      (the “Executive”).

     

    W
      I T N E S S E T H:

     

    WHEREAS,
      the
      Company desires to employ the Executive as Vice President and Chief Financial
      Officer of the Company, and the Executive desires to serve the Company in such
      capacity, upon the terms and subject to the conditions contained in this
      Agreement;

     

    NOW,
      THEREFORE,
      in
      consideration of the mutual covenants and agreements herein contained, the
      parties hereto hereby agree as follows:

     

    1.  Employment.

     

    (a)    Services.  
      The Executive will be employed by the Company as its Vice President and Chief
      Financial Officer. The Executive will report to the Chief Executive Officer
      (the
“CEO”)
      and
      shall perform such duties as are consistent with his position as Vice President
      and Chief Financial Officer (the “Services”).
      The
      Executive agrees to perform such duties faithfully, to devote all of his working
      time, attention and energies to the business of the Company, and while he
      remains employed, not to engage in any other business activity that is in
      conflict with his duties and obligations to the Company. 

     

    (b)    Acceptance.  
      The Executive hereby accepts such employment and agrees to render the
      Services.

     

    2.  
      Term.
      The
      Executive’s employment under this Agreement (the “Term”)
      shall
      commence on July 21, 2008 (the “Commencement
      Date”)
      and
      shall continue for a term of two (2) years, unless sooner terminated pursuant
      to
      Section 8
      of this
      Agreement. Notwithstanding anything to the contrary contained herein, the
      provisions of this Agreement specified in Sections 5,
      6,
      9,
      and
10
      shall
      survive the expiration or termination hereof.

     

    3.  Best
      Efforts; Place of Performance.

     

    (a)  
      The
      Executive
      shall devote substantially all of his business time, attention and energies
      to
      the business and affairs of the Company and shall use his best efforts to
      advance the best interests of the Company and shall not during the Term be
      actively engaged in any other business activity, whether or not such business
      activity is pursued for gain, profit or other pecuniary advantage, that will
      interfere with the performance by the Executive of his duties hereunder or
      the
      Executive’s availability to perform such duties or that will adversely affect,
      or negatively reflect upon, the Company.

     

    
      
        
        

      

      
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          1 of
          17

        
          

        

      

      
        
        

      

       

    

    (b)  
      The
      duties
      to
      be performed by the Executive hereunder shall be performed primarily at the
      office of the Company in the State of New Jersey or eastern Pennsylvania, or
      wherever the principal executive offices of the Company shall hereafter be
      located, subject to reasonable travel requirements on behalf of the Company,
      or
      such other place as the CEO may reasonably designate.

     

    4.  Compensation.  
      As full compensation for the performance by the Executive of his duties under
      this Agreement, the Company shall pay the Executive as follows:

     

    (a)  
      Base
      Salary.  
      The Company shall pay the Executive an annual salary (the “Base
      Salary”)
      of One
      Hundred Eighty Five Thousand Dollars ($185,000). Payment shall be made in
      accordance with the Company’s normal payroll practices in effect from time to
      time. Executive’s Base Salary will be reviewed at least annually and may be
      increased in the sole discretion of the Company’s Compensation Committee. The
      Base Salary may not be decreased, except upon a mutual written agreement between
      the parties.

     

    (b)  Bonus.  
      Executive shall be eligible to receive cash bonuses as follows: 

     

    (1)  in
      the
      event that the Company receives gross proceeds equal to or in excess of Ten
      Million Dollars ($10,000,000) as a result of the sale of its securities in
      one
      or a series of related transactions, the Company shall pay to Executive, within
      thirty (30) days after the date of the closing which results in the Ten Million
      Dollar ($10,000,000) threshold being satisfied, a one-time cash bonus, paid
      as a
      lump sum, in the amount of Fifty Thousand Dollars ($50,000).

     

    (2)  a
      discretionary 30% annual bonus should your job performance be deemed
      satisfactory in the sole discretion of the Chief Executive Officer.

     

    (c)  Withholding.  
      The Company shall withhold all applicable federal, state and local taxes and
      social security and such other amounts as may be required by law from all
      amounts payable to the Executive under this Agreement. 

     

    (d)  Stock
      Options / Merger Options.
      

     

    (1)  Pursuant
      to the Company’s 2003 Stock Option Plan, as amended (the “Stock
      Incentive Plan”),
      the
      Company shall issue to Executive stock options (the “Stock Options”) to purchase
      180,000 shares of the Company’s Common Stock. The Stock Options shall have an
      exercise price per share equal to the fair market value of a share of Common
      Stock on the date of grant as determined in accordance with the Company’s stock
      option pricing policies and practices and the provisions of Section 409A of
      the
      Internal Revenue Code and regulations thereunder. As a condition to the grant
      of
      the Stock Options, the Executive shall be required to execute and deliver the
      Company’s Stock Option Agreement. The Stock Options will vest in four equal
      annual installments, commencing with the first anniversary of the Commencement
      Date and ending on the fourth anniversary of the Commencement Date, subject
      to
      the terms of the Stock Incentive Plan and the Stock Option Agreement (such
      agreement to reflect the provisions of Section 9
      hereof).
      Notwithstanding the foregoing, in the event that the foregoing grant exceeds
      the
      number of shares reserved and available for option grants under the Stock
      Incentive Plan, the Company shall immediately amend the Stock Incentive Plan
      to
      appropriately increase the number of reserved shares under the Stock Incentive
      Plan. 

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

       

    

    (2)  The
      Company shall issue the Executive additional stock options (the “Merger
      Options”)
      to
      purchase 180,000 shares
      of
      the Company’s Common Stock. The
      Merger Options will vest in four equal annual installments, commencing with
      the
      first anniversary of the Commencement Date and ending on the fourth anniversary
      of the Commencement Date, subject to the terms of the Stock Incentive Plan
      and
      the Stock Option Agreement (such agreement to reflect the provisions of Section
      9
      hereof),
      provided, however, the Merger Options will not be exercisable unless and until
      the shares of Common Stock that are held in escrow (the “Escrow
      Shares”),
      pursuant to the terms of the merger agreement by and among the Company, VQ
      Acquisition Corp. and Greenwich Therapeutics, Inc. dated July 1, 2005, as
      amended (the “Merger
      Agreement”),
      are
      released from escrow pursuant to the terms of the Merger Agreement, and
      provided, further, that (i) only that amount of the Merger Options will be
      exercisable equal to the pro-rata portion of those Escrow Shares that are
      released from escrow pursuant to the terms of the Merger Agreement and (ii)
      the
      Executive is an employee of the Company at the time of such release. By way
      of
      example and for illustration purposes only, if 40% of the Escrow Shares are
      released from escrow pursuant to the terms of the Merger Agreement, then 40%
      of
      the Merger Options shall become exercisable by the Executive, provided, however,
      such Merger Options have vested pursuant to the terms of this Agreement.

     

    (e)  Additional
      Stock Options.  
      The Executive shall be eligible to receive additional stock options pursuant
      to
      the Company’s Stock Incentive Plan beginning on the first anniversary of this
      Agreement in an amount determined by the Board in its good faith and reasonable
      discretion. The Executive and the Board shall discuss such grant and the Board
      will award the Executive such options as it may, in its sole discretion after
      discussion with the Executive, determine.

     

    (f)  Expenses.  
      The Company shall reimburse the Executive for all normal, usual and necessary
      expenses incurred by the Executive in furtherance of the business and affairs
      of
      the Company, including reasonable travel and entertainment, upon timely receipt
      by the Company of appropriate vouchers or other proof of the Executive’s
      expenditures and otherwise in accordance with any expense reimbursement policy
      as may from time to time be adopted by the Company.

     

    
      
        
        

      

      
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    (g)  Other
      Benefits.  
      The Executive shall be entitled to all rights and benefits for which he shall
      be
      eligible under any benefit or other plans (including, without limitation,
      dental, medical, medical reimbursement and hospital plans, pension plans,
      employee stock purchase plans, profit sharing plans, bonus plans, prescription
      drug reimbursement plans, short and long term disability plans, life insurance
      and other so-called “fringe” benefits) as the Company shall make available to
      its senior executives from time to time. 

     

    (h)  Vacation.  
      The Executive shall be entitled to a vacation of three (3) non-consecutive
      weeks
      per annum, in addition to holidays observed by the Company. During the Term,
      the
      Executive shall not be entitled to carry forward vacation from one year of
      employment to the next year of employment, nor shall he receive any compensation
      for
      any
      unused vacation days 

     

    5.  Confidential
      Information and Inventions.

     

    (a)  The
      Executive
      recognizes and acknowledges that in the course of his duties he is likely to
      receive confidential or proprietary information of the Company,
      its
      affiliates or third parties with whom the Company or any such affiliates has
      an
      obligation of confidentiality.
      Accordingly, during and after the Term, the Executive agrees to keep
      confidential and not disclose or make accessible to any other person or use
      for
      any other purpose other than in connection with the fulfillment of his duties
      under this Agreement, any Confidential and Proprietary Information owned
      by,
      or received by or on behalf of
      the
      Company
      or any
      of its affiliates.
      “Confidential and Proprietary Information” shall include, but shall not be
      limited to, confidential or proprietary scientific or technical information,
      data, formulas and related concepts, business plans (both current and under
      development), client lists, promotion and marketing programs, trade secrets,
      or
      any other confidential or proprietary business information relating to
      development programs, costs, revenues, marketing, investments, sales activities,
      promotions, credit and financial data, manufacturing processes, financing
      methods, plans or the business and affairs of the Company or
      of any
      affiliate or client of the Company. The
      Executive expressly acknowledges that the Confidential and Proprietary
      Information constitutes a protectable business interest of the Company. The
      Executive agrees: (i) not to use any such Confidential and Proprietary
      Information for himself or others; and (ii) not to take any Company material
      or
      reproductions (including but not limited to writings, correspondence, notes,
      drafts, records, invoices, technical and business policies, computer programs
      or
      disks) thereof from the Company’s offices at any time during his employment by
      the Company, except as required in the execution of the Executive’s duties to
      the Company. The Executive agrees to return immediately all Company material
      and
      reproductions (including but not limited, to writings, correspondence, notes,
      drafts, records, invoices, technical and business policies, computer programs
      or
      disks) thereof in his possession to the Company upon request and in any event
      immediately upon termination of employment.

     

    (b)  Except
      with
      prior written authorization by the Company, the Executive agrees for a period
      of
      five (5) years from the termination of his employment with the Company not
      to
      disclose or publish:

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

       

    

    (1)  any
      of
      the Confidential and Proprietary Information;
      or

     

    (2)  any
      confidential, scientific, technical or business information of any other party
      to whom the Company or any of its affiliates owes an obligation of
      confidence.

     

    (c)  The
      Executive
      agrees that all inventions, discoveries, improvements and patentable or
      copyrightable works (“Inventions”) initiated, conceived or made by him, either
      alone or in conjunction with others, during the Term shall be the sole property
      of the Company to the maximum extent permitted by applicable law and, to the
      extent permitted by law, shall be “works made for hire” as that term is defined
      in the United States Copyright Act (17 U.S.C.A., Section 101). The Company
      shall
      be the sole owner of all patents, copyrights, trade secret rights, and other
      intellectual property or other rights in connection therewith. The Executive
      hereby assigns to the Company all right, title and interest he may have or
      acquire in all such Inventions; provided, however, that the Board may in its
      sole discretion agree to waive the Company’s rights pursuant to this Section
5(c)
      with
      respect to any Invention that is not directly or indirectly related to the
      Company’s business. The Executive further agrees to assist the Company in every
      proper way (but at the Company’s expense) to obtain and from time to time
      enforce patents, copyrights or other rights on such Inventions in any and all
      countries, and to that end the Executive will execute all documents
      necessary:

     

    (1)  to
      apply
      for, obtain and vest in the name of the Company alone (unless the Company
      otherwise directs) letters patent, copyrights or other analogous protection
      in
      any country throughout the world and when so obtained or vested to renew and
      restore the same; and

     

    (2)  to
      defend
      any opposition proceedings in respect of such applications and any opposition
      proceedings or petitions or applications for revocation of such letters patent,
      copyright or other analogous protection.

     

    (d)  The
      Executive
      acknowledges that while performing the Services, the Executive may locate,
      identify and/or evaluate patented or patentable inventions having commercial
      potential in the fields of pharmacy, pharmaceutical, biotechnology, healthcare,
      technology and other fields which may be of potential interest to the Company
      or
      one of its affiliates (the “Third Party Inventions”). The Executive understands,
      acknowledges and agrees that all rights to, interests in or opportunities
      regarding, all Third-Party Inventions identified by the Company,
      any of
      its affiliates or either of the foregoing persons’
      officers, directors, employees (including the Executive), agents or consultants
      during the Term shall be and remain the sole and exclusive property of the
      Company or
      such
      affiliate and
      the
      Executive shall have no rights whatsoever to such Third-Party Inventions and
      will not pursue for himself or for others any transaction relating to the
      Third-Party Inventions which is not on behalf of the Company unless the Company
      has expressly abandoned its interest in such Third Party Inventions in
      writing.

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

       

    

    (e)  The
      Executive
      agrees that he will promptly disclose to the Company all Inventions initiated,
      made
      or
conceived
      or reduced
      to practice,
      either
      alone or jointly
      with
      others, during the Term.

     

    (f)  The
      provisions
      of this Section 5
      shall
      survive any termination of this Agreement.

     

    6.  Non-Competition,
      Non-Solicitation and Non-Disparagement.

     

    (a)  The
      Executive
      understands and recognizes that his services to the Company are special and
      unique and that in the course of performing such services the Executive will
      have access to and knowledge of Confidential and Proprietary Information and
      the
      Executive agrees that, during
      the Term and for
      either (i) six (6) months following the expiration or earlier termination of
      this Agreement or, (ii) if the Company is providing severance benefits to the
      Executive pursuant to Section 9(c)
      hereof,
      twelve (12) months (the “Termination
      Benefits Period”),
      he
      shall not in any manner, directly or indirectly, on behalf of himself or any
      person, firm, partnership, joint venture, corporation or other business entity
      (“Person”), enter into or engage in any business which is engaged in any
      business directly or indirectly competitive with the business of the Company,
      either as an individual for his own account, or as a partner, joint venturer,
      owner, executive, employee, independent contractor, principal, agent,
      consultant, salesperson, officer, director or shareholder of a Person in a
      business competitive with the Company within the geographic area of in which
      the
      Company does business,
      which
      is deemed by the parties hereto to be New
      York,
      New Jersey, Connecticut, Massachusetts, Pennsylvania, and California.
      The
      Executive acknowledges that, due to the unique nature of the Company’s business,
      the loss of any of its clients or the improper use of its Confidential and
      Proprietary Information could create significant instability and cause
      substantial damage to the Company and therefore the Company has a strong
      legitimate business interest in protecting the continuity of its business
      interests and the restriction herein agreed to by the Executive narrowly and
      fairly serves such an important and critical business interest of the Company.
      For purposes of this Agreement, the Company shall be deemed to be actively
      engaged on the date hereof in the development and commercialization of medical
      technologies, including therapeutics, biologics, devices, and vaccines for
      the
      treatment, diagnosis, and/or prevention of (i) cancers by the inhibition,
      blocking, activation or other direct effect on the Akt family (Akt1, Akt2,
      and
      Akt3) that are members of the serine/threonine-specific protein kinase family
      or; (ii) “hand and foot syndrome” associated with the treatment of cancer; or
      (iii) cancers by the inhibition, activation blocking, or other direct effect
      on
      SHP-1 or SHP-2, two non-transmembrane tyrosine phosphatases. Notwithstanding
      the
      foregoing, nothing contained in this Section 6(a)
      shall be
      deemed to prohibit the Executive from acquiring or holding, solely for
      investment, publicly traded securities of any corporation, some or all of the
      activities of which are competitive with the business of the Company so long
      as
      such securities do not, in the aggregate, constitute more than five percent
      (5%)
      of any class or series of outstanding securities of such
      corporation.

     

    (b)  The
      Executive
      hereby acknowledges and agrees that the covenant against competition provided
      for pursuant to Section 6(a)
      is
      reasonable with respect to its duration, geographic area and scope. If, at
      the
      time of enforcement of this Section 6,
      a court
      holds that the restrictions stated herein are unreasonable under the
      circumstances then existing, the Parties hereto agree that the maximum duration,
      scope or geographic area legally permissible under such circumstances will
      be
      substituted for the duration, scope or area state herein. 

     

    
      
        
        

      

      
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    (c)  During
      the
      Term
      and the Termination Benefits Period (as defined in Section 6(a)
      above),
      the
      Executive shall not, directly or indirectly, without the prior written consent
      of the Company:

     

    (1)  solicit
      or induce any employee of the Company or
      any of
      its affiliates to
      leave
      the employ of the Company
      or any
      such affiliate
      (as the
      term “affiliate” is defined in Paragraph 6);
      or hire
      for any purpose any employee of the Company
      or any
      affiliate;
      or hire
      any former employee
      who has left the employment of the Company or any affiliate of the Company
      within
      twelve
      (12) months of the termination of such employee’s employment with the
      Company
      or any
      such affiliate;
      or hire
      any former employee of the Company in violation of such employee’s
      non-competition agreement with the Company
      or any
      such affiliate;
      or

     

    (2)  solicit
      or accept the business of any agent, client or customer of the Company or any
      of
      its affiliates
      with
      respect to products, services or investments similar to those provided or
      supplied by the Company
      or any
      of its affiliates;
      or

     

    (3)  solicit
      or accept employment or be retained by any Person who, at any time during the
      Term, was an agent, client or customer of the Company or any of its affiliates
      where his position will be related to the business of the Company or any such
      affiliate.
      

     

    (d)  The
      Company
      and the Executive each agree that both during the Term and for a period of
      five
      (5) years thereafter, neither party shall directly or indirectly disparage,
      whether or not true, the name or reputation of the other party or any of its
      affiliates, including but not limited to, any officer, director, employee or
      shareholder of the Company
      or any
      of its affiliates
      (as
      defined above).
      Notwithstanding this Section, nothing contained herein shall limit or impair
      the
      ability of the Executive to provide truthful testimony in response to any
      validly issued subpoena. 

     

    (e)  In
      the
      event
      that the Executive breaches any provisions of Section 5
      or this
      Section 6
      or there
      is a threatened breach, then, in addition to any other rights which the Company
      may have, the Company shall be entitled, without the posting of a bond or other
      security, to seek injunctive relief to enforce the restrictions contained in
      such Sections
      The
      Company and the Executive agree that any such action for injunctive or equitable
      relief shall be heard in a state or federal court situated in the State of
      New
      Jersey and each of the parties hereto agrees to accept service of process by
      registered or certified mail and to otherwise consent to the jurisdiction of
      such courts.

     

    
      
        
        

      

      
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    (f)  Each
      of
      the
      rights and remedies enumerated in Section 7(d) shall be independent of the
      others and shall be in addition to and not in lieu of any other rights and
      remedies available to the Company at law or in equity. If any of the covenants
      contained in this Section 7, or any part of any of them, is hereafter construed
      or adjudicated to be invalid or unenforceable, the same shall not affect the
      remainder of the covenant or covenants or rights or remedies which shall be
      given full effect without regard to the invalid portions. If any of the
      covenants contained in this Section 7 is held to be invalid or unenforceable
      because of the duration of such provision or the area covered thereby, the
      parties agree that the court making such determination shall have the power
      to
      reduce the duration and/or area of such provision and in its reduced form such
      provision shall then be enforceable. 

     

    (g)  The
      provisions
      of this Section 6
      shall
      survive any termination of this Agreement.

     

    

    7.  Representations
      and Warranties.
      The
      Executive hereby represents and warrants to the Company as follows:

     

    (a)  Neither
      the
      execution or delivery of this Agreement nor the performance by the Executive
      of
      his duties and other obligations hereunder violate or will violate any statute,
      law, determination or award, or conflict with or constitute a default or breach
      of any covenant or obligation under (whether immediately, upon the giving of
      notice or lapse of time or both) any prior employment agreement, contract,
      or
      other instrument to which the Executive is a party or by which he is
      bound.

     

    (b)  The
      Executive
      has the full right, power and legal capacity to enter and deliver this Agreement
      and to perform his duties and other obligations hereunder. This Agreement
      constitutes the legal, valid and binding obligation of the Executive enforceable
      against him in accordance with its terms. No approvals or consents of any
      persons or entities are required for the Executive to execute and deliver this
      Agreement or perform his duties and other obligations hereunder.

     

    8.  Termination.
      The
      Executive’s employment hereunder shall be terminated upon the Executive’s death
      and may be terminated as follows:

     

    (a)  The
      Executive’s
      employment hereunder may be terminated by the CEO for Cause. Any of the
      following actions by the Executive shall constitute “Cause”:

     

    (1)  The
      willful failure, disregard or refusal by the Executive to perform his material
      duties or obligations under this Agreement;

     

    (2)  Any
      willful, intentional or grossly negligent act by the Executive having the effect
      of materially injuring (whether financial or otherwise and as determined in
      good-faith by a majority of the members of the Board) the business or reputation
      of the Company
      or any
      of its affiliates,
      including but not limited to, any officer, director, executive or shareholder
      of
      the Company or any of its affiliates;
      

     

    
      
        
        

      

      
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    (3)  Willful
      misconduct by the Executive in respect of the material duties or obligations
      of
      the Executive under this Agreement, including, without limitation, willful
      insubordination with respect to lawful directions received by the Executive
      from
      the CEO;

     

    (4)  The
      Executive’s indictment
      of any
      felony involving moral turpitude (including entry of a nolo contendere
      plea);

     

    (5)  The
      determination by the Company, after a reasonable and good-faith investigation
      by
      the Company following a written allegation by another employee of the Company,
      that the Executive engaged in some form of harassment prohibited by law
      (including, without limitation, age, sex or race discrimination;

     

    (6)  Any
      material misappropriation or embezzlement of the property of the Company or
      its
      affiliates (whether or not a misdemeanor or felony);

     

    (7)  Breach
      by
      the Executive of any of the provisions of Sections 5,
      6,
      or
7
      of this
      Agreement; or

     

    (8)  Breach
      by
      the Executive of any material provision of this Agreement other than those
      contained in Sections 5,
      6,
      or
7
      which is
      not cured by the Executive within thirty (30) days after notice thereof is
      given
      to the Executive by the Company.

     

    (b)  The
      Executive’s
      employment hereunder may be terminated by the CEO due to the Executive’s
      Disability. For purposes of this Agreement, a termination for “Disability” shall
      occur (i) when the CEO has provided a written termination notice to the
      Executive supported by a written statement from a reputable independent
      physician selected and approved by the parties to the effect that the Executive
      shall have become so physically or mentally incapacitated as to be unable to
      resume, within the ensuing six (6) months, his employment under this Agreement
      by reason of physical or mental illness or injury or (ii) upon rendering of
      a
      written termination notice by the CEO after the Executive has been unable to
      substantially perform his duties hereunder for 60 or more consecutive days,
      or
      more than 120 days in any consecutive twelve month period, by reason of any
      physical or mental illness or injury, which is supported by a written statement
      from a reputable independent physician selected and approved by the parties.
      For
      purposes of this Section 8(b),
      the
      Executive agrees to make himself available and to cooperate in a reasonable
      examination by a reputable independent physician retained by the Company and
      approved by the Executive. Nothing herein shall constitute a waiver of
      Executive’s right to dispute any assertion by the Company of Disability or
      termination on the grounds thereof.

     

    (c)  The
      Executive’s
      employment hereunder may be terminated by the CEO upon the occurrence of a
      Change of Control. For purposes of this Agreement, “Change of Control” means,
      following the Effective Date: (i) the acquisition by any Person (including
      a
      group of Persons within the meaning of Section 13(d)(3) or 14(d)(2) of the
      Exchange Act) of beneficial ownership of any capital stock of the Company,
      if,
      after such acquisition, such Person beneficially owns (within the meaning of
      Rule 13d-3 promulgated under the Exchange Act) 50% or more of the combined
      voting power of the then-outstanding securities of the Company entitled to
      vote
      generally in the election of directors (the “Outstanding Company Voting
      Securities”), provided, however, such person or
      his or
      its affiliate(s) do not own in excess of 50% of such voting power on the date
      of
      this Agreement;
      or (ii)
      the consummation of a merger, consolidation, reorganization, recapitalization
      or
      share exchange involving the Company or a sale or other disposition of all
      or
      substantially all of the assets of the Company (a “Business Combination”),
      unless, immediately following such Business Combination, all or substantially
      all of the individuals and entities who were the beneficial owners of the
      Outstanding Company Voting Securities immediately prior to such Business
      Combination beneficially own, directly or indirectly, more than 50% of the
      combined voting power of the then-outstanding securities entitled to vote
      generally in the election of directors of the resulting or acquiring corporation
      in such Business Combination (which shall include, without limitation, a
      corporation which as a result of such transaction owns the Company or
      substantially all of the Company’s assets either directly or through one or more
      subsidiaries) in substantially the same proportions as their ownership of the
      Outstanding Company Voting Securities immediately prior to such Business
      Combination. 

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

       

    

    (d)  The
      Executive’s
      employment hereunder may be terminated by the Executive for Good Reason. For
      purposes of this Agreement, “Good Reason” shall mean the occurrence of any of
      the following, provided that Executive provides the Company with written notice
      of the occurrence of any such condition within 90 days of its occurrence and
      the
      Company fails to cure such condition within 30 days after the date it receives
      Executive’s written notice: (i) any material reduction by the Company of the
      Executive’s compensation or benefits payable hereunder; or (ii) any material
      reduction or change in the Executive’s duties, responsibilities or position; or
      (iii) a material breach by the Company of a material term of this Agreement;
      or
      (iv) a relocation of Executive’s principal place of employment by more than
      fifty (50) miles without Executive’s consent.

     

    (e)  The
      Executive’s
      employment may be terminated by the Company for any reason or no reason, subject
      to the terms of Section 9
      of this
      Agreement.

     

    9.  Compensation
      upon Termination.

     

    (a)  
      If
      the
      Executive’s employment is terminated as a result of his death or Disability, the
      Company shall pay to the Executive or to the Executive’s estate, as applicable,
      in a lump sum within 30 days after the date of termination,
      (i)
      his
      unpaid Base Salary through the date of his termination and (ii) any expense
      reimbursement amounts owed the Executive through the date of his termination,
      and shall provide to Executive his benefits in accordance with this Agreement
      through the date of his termination. In addition, subject
      to the provisions of Section 9(h)
      hereof, the Company shall continue to pay to the Executive or to his estate
      his
      Base Salary on the regular payroll dates of the Company for the period
      beginning on the day after the date of termination and ending on the date that
      is six (6) months following
      the
      date of
      termination.
      In
      the
      event that the Company provides Executive (his spouse and his dependents, if
      applicable) with medical, dental and hospitalization coverage (“Health
      Coverage”) at the time of termination of Executive’s employment and Executive
      (and/or his spouse and dependents, as applicable) elects continued Health
      Coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985,
      as
      amended, or, if inapplicable, under the applicable state statutes and
      regulations governing continuation of health care coverage to former employees
      (collectively, “COBRA”), for the twelve
      (12) month period following the date of termination,
      the
      Company shall reimburse Executive for the amount of the COBRA payments, less
      the
      amount that Executive would have been obligated to make in order to receive
      the
      Health Coverage under the Company’s programs (as in effect at the time of
      termination of employment). Subject to Section 9(h)
      hereof, the Company will make reimbursement payments to Executive on a monthly
      basis on the last payroll date of the month for the previous month’s COBRA
      payments. All Merger Options and Stock Options that are scheduled to vest on
      the
      next succeeding anniversary of the Commencement Date shall be accelerated and
      deemed to have vested as of the termination date. All Merger Options and Stock
      Options that have not vested (or been deemed pursuant to the immediately
      preceding sentence to have vested) as of the date of termination shall be
      forfeited to the Company as of such date. Merger Options and Stock Options
      that
      have vested as of the Executive’s termination shall remain exercisable for
      ninety (90) days following such termination, provided, however, Merger Options
      that are not exercisable upon their terms at the time of such termination may
      not be exercised and shall be forfeited to the Company as of such
      date.

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

       

    

    (b)  
      If
      the
      Executive’s employment is terminated by the CEO for Cause or by the Executive
      for other than Good Reason, then the Company shall pay or provide to the
      Executive (i) his unpaid Base Salary, (ii) any expense reimbursement amounts
      owed the Executive and (iii) his benefits in accordance with this Agreement,
      all
      through the date of his termination. The Executive shall have no further
      entitlement hereunder to any other compensation or benefits from the Company.
      All Merger Options and Stock Options that have not vested as of the date of
      termination shall be forfeited to the Company as of such date. Merger Options
      and Stock Options that have vested as of the Executive’s termination shall
      remain exercisable for 90 days following such termination, provided, however,
      Merger Options that are not exercisable upon their terms at the time of such
      termination may not be exercised and shall be forfeited to the Company as of
      such date. 

     

    (c)  
      If
      the
      Executive’s employment is terminated by the Company (or its successor) upon the
      occurrence of a Change of Control, is terminated by the Company other than
      as a
      result of the Executive’s death or Disability or other than as set forth in
      Section 8(a),
      or
      is terminated by the Executive for Good Reason, then the Company (or its
      successor, as applicable) shall pay
      to
      Executive, in a lump sum within 30 days after the date of termination,
(i)
      his
      unpaid Base Salary through the date of his termination and (ii) any expense
      reimbursement amounts owed the Executive through the date of his termination,
      and shall provide to Executive his benefits in accordance with this Agreement
      though the date of his termination. In addition, subject
      to the provisions of Section 9(h)
      hereof and Section 9(d)
      hereof, the Company shall continue to pay to the Executive his Base Salary
      on
      the
      regular payroll dates of the Company for the period
      beginning on the first payroll date that occurs on or after the 31st day after
      the date of termination and ending on the date that is twelve
      (12) months following such
      date.
      In
      the
      event that the Company provides Executive (his spouse and his dependents, if
      applicable) with Health Coverage at the time of termination of Executive’s
      employment and Executive elects continued Health Coverage under COBRA, subject
      to Section 9(d),
      for
      a twelve
      (12) month period beginning on the first month-end payroll date that occurs
      on
      or after the 31st day after the date of termination,
      the
      Company shall reimburse Executive for the amount of the COBRA payments, less
      the
      amount that Executive would have been obligated to make in order to receive
      the
      Health Coverage under the Company’s programs (as in effect at the time of
      termination of employment). Subject to Section 9(h)
      hereof (and the foregoing sentence), the Company will make reimbursement
      payments to Executive on a monthly basis on the last payroll date of the month
      for the previous month’s COBRA payments. The Company’s continuing Health
      Coverage reimbursement obligations under this Section 9(c)
      shall
      cease in the event that Executive has the ability to obtain Health Coverage
      from
      a subsequent employer. All Merger Options and Stock Options that
      are
      scheduled to vest on the next succeeding anniversary of the Commencement Date
      shall be accelerated and deemed to have vested as of the termination date.
      All
      Merger Options and Stock Options that have
      not
      vested (or been deemed pursuant to the immediately preceding sentence to have
      vested) as of the date of termination shall be forfeited to the Company as
      of
      such date. Merger
      Options and Stock Options that have vested as of the Executive’s termination
      shall remain exercisable for 90 days following such termination provided,
      however, Merger Options that are not exercisable upon their terms at the time
      of
      such termination may not be exercised and shall be forfeited to the Company
      as
      of such date. Notwithstanding the foregoing, if Executive’s employment is
      terminated upon a Change of Control and such Change of Control is a result
      of
      (i) a merger, consolidation, share exchange, or other business combination
      transaction, (ii) a sale by the Company of all or substantially all of its
      assets for consideration, or (iii) the sale by the Company of newly issued
      securities resulting in gross proceeds in excess of $60,000,000, then in each
      case all Merger Options and Stock Options that have not vested as of the
      termination date shall
      be
      accelerated and deemed to have vested as of the termination date. 

     

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

       

    

    (d)  Notwithstanding
      anything
      to the contrary contained herein, no payments shall be made to Executive
      pursuant to Section 9(c)
      hereof (other than unpaid Base Salary and reimbursements for business expenses,
      both through Executive’s date of termination), whether for Base Salary
      continuation or reimbursement of Health Coverage, and no acceleration of vesting
      of the Merger Options or Stock Options shall occur pursuant to Section
9(c)
      hereof unless Executive executes and delivers to the Company within 30 days
      after the date of termination a general mutual release in favor of the Company,
      its affiliates and their respective officers, directors, shareholders, members,
      partners, managers, employees, plan administrators, agents and attorneys, as
      well as any predecessor, future successor or estate or assign of any of the
      foregoing from all legally releasable claims and liability (other than the
      payments and benefits due under this Agreement) in a form reasonably
      satisfactory to the Company and Executive (and the release is not rescinded
      and
      remains in effect). The mutual release shall not release Executive from claims
      or liability relating to Executive’s
      acts or omissions involving or arising from fraud, theft, criminal acts, or
      violations of securities law while employed by the Company. Notwithstanding
      the foregoing, the Company shall have no obligation to provide Executive with
      a
      release of any claims or liability if the Company terminates Executive’s
      employment in accordance with Section 8(a).

     

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

     

    (e)  This
      Section
      9
      sets
      forth the only obligations of the Company with respect to the termination of
      the
      Executive’s employment with the Company, and the Executive acknowledges that,
      upon the termination of his employment, he shall not be entitled to any payments
      or benefits which are not explicitly provided in Section 9.

     

    (f)  Omitted.

     

    (g)  The
      obligations
      of the Company that arise under this Section 9 shall
      survive the expiration or earlier termination of this Agreement.

     

    (h)  
      If
      any
      payment, compensation or other benefit provided to the Executive in connection
      with his employment termination is determined, in whole or in part, to
      constitute “nonqualified deferred compensation” within the meaning of Section
      409A of the Code and the Executive is a specified employee as defined in Section
      409A(2)(B)(i), no part of such payments shall be paid before the day that is
      six
      (6) months plus one (1) day after the termination date (the “New Payment Date”).
      The aggregate of any payments that otherwise would have been paid to the
      Executive during the period between the termination date and the New Payment
      Date shall be paid to the Executive in a lump sum on such New Payment Date.
      Thereafter, any payments that remain outstanding as of the day immediately
      following the New Payment Date shall be paid without delay over the time period
      originally scheduled, in accordance with the terms of this Agreement..
      Notwithstanding anything contained herein to the contrary, Executive shall
      not
      be considered to have terminated employment with the Company for purposes of
      Sections 8
      and
9
      hereof
      unless he would be considered to have incurred a “termination of employment”
from the Company within the meaning of Treasury Regulation
§1.409A-1(h)(1)(ii).

     

    (i)  Anything
      in
      this
      Agreement to the contrary notwithstanding, if in the event of a Change of
      Control, it is determined that any payment, award, benefit or distribution
      (or
      any acceleration of any payment, award, benefit or distribution) by the Company
      or any entity to or for the benefit of the Executive (the “Payments”) would
      result in an excise tax within the meaning of Section 4999 of the Internal
      Revenue Code of 1986, as amended (“Code”) (such excise tax, together with any
      such interest and penalties, are hereinafter collectively referred to as the
      “Excise Tax”), then the Company (or any successor entity) shall pay to Executive
      an additional payment (“Gross Up Payment”) in an amount such that after payment
      by the Executive of all taxes (including any Excise Tax) imposed upon the Gross
      Up Payment, the Executive retains an amount of the Gross Up Payment equal to
      the
      amount the Excise Tax imposes upon the Payments.

     

    10.  Indemnification.
      The
      Company shall defend and indemnify the Executive in his capacity as Vice
      President and Chief Financial Officer of the Company to the fullest extent
      permitted by the Company’s articles and by-laws and under the Delaware General
      Corporate Law (the “DGCL”). Within sixty (60) days of the Effective Date, the
      Company shall also establish a policy for indemnifying its officers and
      directors, including but not limited to the Executive, for all actions permitted
      under the DGCL taken in good faith pursuit of their duties for the Company,
      including but not limited to the obtaining of an appropriate level of Directors
      and Officers Liability coverage and including such provisions in the Company’s
      by-laws or certificate of incorporation, as applicable and customary. The rights
      to indemnification shall survive any termination of this Agreement.

     

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

       

    

    11.  Miscellaneous.

     

    (a)  This
      Agreement
      shall be governed by, and construed and interpreted in accordance with, the
      laws
      of the State of New Jersey, without giving effect to its principles of conflicts
      of laws.

     

    (b)  Any
      dispute
      arising out of, or relating to, this Agreement or the breach thereof (other
      than
      Sections 5
      or
6
      hereof),
      or regarding the interpretation thereof, shall be finally settled by arbitration
      conducted in New Jersey in accordance with the National Rules for the Resolution
      of Employment Disputes
      of
      the
      American Arbitration Association then in effect before a panel of three
      arbitrators appointed in accordance with such rules. Judgment upon any award
      rendered therein may be entered and enforcement obtained thereon in any court
      having jurisdiction. The arbitrator shall have authority to grant any form
      of
      appropriate relief, whether legal or equitable in nature, including specific
      performance.
      For the
      purpose of any judicial proceeding to enforce such award or incidental to such
      arbitration or to compel arbitration and for purposes of Sections 5
      or
6 hereof,
      the parties hereby submit to the non-exclusive jurisdiction of the courts of
      the
      State of New Jersey, or the United States District Court for the District of
      New
      Jersey, and agree that service of process in such arbitration or court
      proceedings shall be satisfactorily made upon it if sent by registered mail
      addressed to it at the address referred to below in paragraph (g) of this
      Section 11.
      The
      costs of such arbitration shall be borne proportionate to the finding of fault
      as determined by the panel of arbitrators.
      Pending
      such resolution of any claim, the Executive shall be entitled to continue to
      receive all payments and benefits due under this Agreement or otherwise, unless
      the arbitration panel determines otherwise. Judgment on the arbitration award
      may be entered by any court of competent jurisdiction. 

     

    (c)  This
      Agreement
      shall be binding upon and inure to the benefit of the parties hereto, and their
      respective heirs, legal representatives, successors and assigns.

     

    (d)  This
      Agreement,
      and the Executive’s rights and obligations hereunder, may not be assigned by the
      Executive. The Company may assign its rights, together with its obligations,
      hereunder in connection with any sale, transfer or other disposition of all
      or
      substantially all of its business or assets.

     

    (e)  This
      Agreement
      cannot be amended orally, or by any course of conduct or dealing, but only
      by a
      written agreement signed by the parties hereto.

     

    
      
        
        

      

      
        -14-

        
          

        

      

      
        
        

      

    

     

    (f)  The
      failure
      of either party to insist upon the strict performance of any of the terms,
      conditions and provisions of this Agreement shall not be construed as a waiver
      or relinquishment of future compliance therewith, and such terms, conditions
      and
      provisions shall remain in full force and effect. No waiver of any term or
      condition of this Agreement on the part of either party shall be effective
      for
      any purpose whatsoever unless such waiver is in writing and signed by such
      party.

     

    (g)  All
      notices,
      requests, consents and other communications, required or permitted to be given
      hereunder, shall be in writing and shall be delivered personally or by an
      overnight courier service or sent by registered or certified mail, postage
      prepaid, return receipt requested, to the parties at the addresses set forth
      on
      the first page of this Agreement, and shall be deemed given when so delivered
      personally or by overnight courier or when actually received if sent by
      registered or certified mail. Each party may designate another address, for
      receipt of notices hereunder by giving notice to the other party in accordance
      with this paragraph (g) of this Section 11.

     

    (h)  This
      Agreement
      sets forth the entire agreement and understanding of the parties relating to
      the
      subject matter hereof, and supersedes all prior agreements, arrangements and
      understandings, written or oral, relating to the subject matter hereof. No
      representation, promise or inducement has been made by either party that is
      not
      embodied in this Agreement, and neither party shall be bound by or liable for
      any alleged representation, promise or inducement not so set forth.

     

    (i)  As
      used
      in
      this Agreement, “affiliate” of a specified Person shall mean and include any
      Person controlling, controlled by or under common control with the specified
      Person.

     

    (j)  The
      section
      headings contained herein are for reference purposes only and shall not in
      any
      way affect the meaning or interpretation of this Agreement.

     

    (k)  This
      Agreement
      may be executed in any number of counterparts, each of which shall constitute
      an
      original, but all of which together shall constitute one and the same
      instrument.

     

    (l)  As
      used
      in
      this Agreement, the masculine, feminine or neuter gender, and the singular
      or
      plural, shall be deemed to include the others whenever and wherever the context
      so requires. Additionally, unless the context requires otherwise, “or” is not
      exclusive.

     

    (m)  This
      Agreement
      is intended to comply with the requirements of Section 409A of the Code
      (“Section 409A”) and regulations promulgated thereunder. To the extent that any
      provision in this Agreement is ambiguous as to its compliance with Section
      409A,
      the provision shall be read in such a manner so that all payments due under
      this
      Agreement shall comply with Section 409A . For purposes of Section 409A, each
      payment made under this Agreement shall be treated as a separate payment. In
      no
      event may Executive, directly or indirectly, designate the calendar year of
      payment.

     

    
      
        
        

      

      
        -15-

        
          

        

      

      
        
        

      

    

    

    Remainder
      of Page Intentionally Left Blank; Signature Page Follows

     

    
      
        
        

      

      
        -16-

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF,
      the
      parties hereto have executed this Agreement as of the date first above
      written.

     

     

    
      	 	
              By:/s/
                Michael D.
                Becker                         
                

              Name:
                Michael D. Becker

              Title:
                President & CEO

            
	 	 
	 	 
	 	 
	 	
              By:
                /s/ Christopher
                Schnittker                  
                

              Name:
                Christopher Schnittker

            

    

     

    
      
        
        

      

      
        -17-Unassociated Document

    Exhibit
      10.2

     

    VIOQUEST
      PHARMACEUTICALS, INC.

    

    2003
      Stock Option Plan

    (as
      amended through July 2008)

    

    1.    Purpose.
      The
      purpose of the 2003 Stock Option Plan (the “Plan”)
      of
      VioQuest Pharmaceuticals, Inc. (the “Company”)
      is to
      increase shareholder value and to advance the interests of the Company by
      furnishing a variety of economic incentives (“Incentives”)
      designed to attract, retain and motivate employees, directors and consultants.
      Incentives may consist of opportunities to purchase or receive shares of Common
      Stock, $0.001 par value, of the Company (“Common
      Stock”),
      monetary payments or both on terms determined under this Plan.

    

    2.    Administration.
      

    

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

    

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

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

       

    

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

    

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

    

    5.    Shares
      Subject to the Plan.

    

    5.1.    Number
      of Shares.
      Subject
      to adjustment as provided in Section 11.6, the number of shares of Common Stock
      which may be issued under the Plan shall not exceed 2,000,000 shares of Common
      Stock. Shares of Common Stock that are issued under the Plan or that are subject
      to outstanding Incentives will be applied to reduce the maximum number of shares
      of Common Stock remaining available for issuance under the Plan. 

    

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

    

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

    

    6.1.    Price.
      The
      option price per share shall be determined by the Committee, subject to
      adjustment under Section 11.6.

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

       

    

    6.2.    Number.
      The
      number of shares of Common Stock subject to the option shall be determined
      by
      the Committee, subject to adjustment as provided in Section 11.6. The number
      of
      shares of Common Stock subject to a stock option shall be reduced in the same
      proportion that the holder thereof exercises a SAR if any SAR is granted in
      conjunction with or related to the stock option. No individual may receive
      options to purchase more than 900,000 shares in any year. 

     

    6.3.    Duration
      and Time for Exercise.
      Subject
      to earlier termination as provided in Section 11.4, the term of each stock
      option shall be determined by the Committee but shall not exceed ten years
      and
      one day from the date of grant. Each stock option shall become exercisable
      at
      such time or times during its term as shall be determined by the Committee
      at
      the time of grant. The Committee may accelerate the exercisability of any stock
      option. Subject to the foregoing and with the approval of the Committee, all
      or
      any part of the shares of Common Stock with respect to which the right to
      purchase has accrued may be purchased by the Company at the time of such accrual
      or at any time or times thereafter during the term of the option.

    

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

    

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

    

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

    

    (b)    Any
      Incentive Stock Option certificate authorized under the Plan shall contain
      such
      other provisions as the Committee shall deem advisable, but shall in all events
      be consistent with and contain all provisions required in order to qualify
      the
      options as Incentive Stock Options.

    

    
      
         

      

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

    

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

    

    (e)    The
      exercise price for Incentive Stock Options shall be not less than 100% of the
      Fair Market Value of one share of Common Stock on the date of grant with respect
      to an Incentive Stock Option; provided that the exercise price shall be 110%
      of
      the Fair Market Value if, at the time the Incentive Stock Option is granted,
      the
      participant owns, directly or indirectly, more than 10% of the total combined
      voting power of all classes of stock of the Company or any parent or subsidiary
      corporation of the Company.

    

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

    

    7.1.    Number;
      Exercise Price.
      Each
      SAR granted to any participant shall relate to such number of shares of Common
      Stock as shall be determined by the Committee, subject to adjustment as provided
      in Section 11.6. In the case of an SAR granted with respect to a stock option,
      the number of shares of Common Stock to which the SAR pertains shall be reduced
      in the same proportion that the holder of the option exercises the related
      stock
      option. The exercise price of an SAR will be determined by the Committee, in
      its
      discretion, at the date of grant but may not be less than 100% of the Fair
      Market Value of one share of Common Stock on the date of grant.

    

    7.2.    Duration.
      Subject
      to earlier termination as provided in Section 11.4, the term of each SAR shall
      be determined by the Committee but shall not exceed ten years and one day from
      the date of grant. Unless otherwise provided by the Committee, each SAR shall
      become exercisable at such time or times, to such extent and upon such
      conditions as the stock option, if any, to which it relates, is exercisable.
      The
      Committee may in its discretion accelerate the exercisability of any
      SAR.

    

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

    

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

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

       

    

    (a)    the
      number of shares of Common Stock as to which the SAR is exercised multiplied
      by
      the amount of the appreciation in such shares (for this purpose, the
“appreciation” shall be the amount by which the Fair Market Value of the shares
      of Common Stock subject to the SAR on the exercise date exceeds (1) in the
      case
      of an SAR related to a stock option, the exercise price of the shares of Common
      Stock under the stock option or (2) in the case of an SAR granted alone, without
      reference to a related stock option, an amount which shall be determined by
      the
      Committee at the time of grant, subject to adjustment under Section 11.6);
      by

    

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

    

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

    

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

    

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

    

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

    

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

    

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

    

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

    

    
      
         

      

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

    

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

    

    The
      transferability of this certificate and the shares of Common Stock represented
      by it are subject to the terms and conditions (including conditions of
      forfeiture) contained in the 2003 Stock Option Plan of VioQuest Pharmaceuticals,
      Inc., (the “Company”), and an agreement entered into between the registered
      owner and the Company. A copy of the 2003 Stock Option Plan and the agreement
      is
      on file in the office of the secretary of the Company.

    

    8.5.    End
      of
      Restrictions.
      Subject
      to Section 11.5, at the end of any time period during which the shares of
      restricted stock are subject to forfeiture and restrictions on transfer, such
      shares will be delivered free of all restrictions to the participant or to
      the
      participant’s legal representative, beneficiary or heir.

    

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

    

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

    

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

    

    
      
         

      

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

    

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

    

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

    

    10.    Change
      of Control.

    

    10.1    Change
      in Control.
      For
      purposes of this Section 10, a “Change
      in Control”
of
      the
      Company will mean the following:

     

     
      (a)    the
      sale,
      lease, exchange or other transfer, directly or indirectly, of substantially
      all
      of the assets of the Company (in one transaction or in a series of related
      transactions) to a person or entity that is not controlled by the Company;
      

     

     
      (b)    the
      approval by the shareholders of the Company of any plan or proposal for the
      liquidation or dissolution of the Company;

     

     
      (c)    any
      person becomes after the effective date of the Plan the “beneficial owner” (as
      defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of (i)
      20% or more, but not 50% or more, of the combined voting power of the Company’s
      outstanding securities ordinarily having the right to vote at elections of
      directors, unless the transaction resulting in such ownership has been approved
      in advance by the Continuing Directors (as defined below), or (ii) 50% or more
      of the combined voting power of the Company’s outstanding securities ordinarily
      having the right to vote at elections of directors (regardless of any approval
      by the Continuing Directors); provided that a traditional institution or venture
      capital financing transaction shall be excluded from this
      definition;

     

     
      (d)    a
      merger
      or consolidation to which the Company is a party if the shareholders of the
      Company immediately prior to effective date of such merger or consolidation
      have
“beneficial ownership” (as defined in Rule 13d-3 under the Exchange Act),
      immediately following the effective date of such merger or consolidation, of
      securities of the surviving corporation representing (i) 50% or more, but less
      than 80%, of the combined voting power of the surviving corporation’s then
      outstanding securities ordinarily having the right to vote at elections of
      directors, unless such merger or consolidation has been approved in advance
      by
      the Continuing Directors, or (ii) less than 50% of the combined voting
      power of the surviving corporation’s then outstanding securities ordinarily
      having the right to vote at elections of directors (regardless of any approval
      by the Continuing Directors); or

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

       

    

     
      (e)    after
      the
      date the Company’s securities are first sold in a registered public offering,
      the Continuing Directors cease for any reason to constitute at least a majority
      of the Board. 

     

    10.2    Continuing
      Directors.
      For
      purposes of this Section 10, “Continuing Directors” of the Company will mean any
      individuals who are members of the Board on the effective date of the Plan
      and
      any individual who subsequently becomes a member of the Board whose election,
      or
      nomination for election by the Company’s shareholders, was approved by a vote of
      at least a majority of the Continuing Directors (either by specific vote or
      by
      approval of the Company’s proxy statement in which such individual is named as a
      nominee for director without objection to such nomination).

     

    10.3    Acceleration
      of Incentives.
      Without
      limiting the authority of the Committee under the Plan, if a Change in Control
      of the Company occurs whereby the acquiring entity or successor to the Company
      does not assume the Incentives or replace them with substantially equivalent
      incentive awards, then, unless otherwise provided by the Committee in its sole
      discretion in the agreement evidencing an Incentive at the time of grant, then
      as of the date of the Change of Control (a) all outstanding options and SARs
      will vest and will become immediately exercisable in full and will remain
      exercisable for the remainder of their terms, regardless of whether the
      participant to whom such options or SARs have been granted remains in the employ
      or service of the Company or any subsidiary of the Company or any acquiring
      entity or successor to the Company; (b) the restrictions on all shares of
      restricted stock awards shall lapse immediately; and (c) all performance shares
      shall be deemed to be met and payment made immediately.

     

    10.4    Cash
      Payment for Options.
      If a
      Change in Control of the Company occurs, then the Committee, if approved by
      the
      Committee in its sole discretion either in an agreement evidencing an option
      at
      the time of grant or at any time after the grant of an option, and without
      the
      consent of any participant affected thereby, may determine that:

     

     
      (a)    some
      or
      all participants holding outstanding options will receive, with respect to
      some
      or all of the shares of Common Stock subject to such options, as of the
      effective date of any such Change in Control of the Company, cash in an amount
      equal to the excess of the Fair Market Value of such shares immediately prior
      to
      the effective date of such Change in Control of the Company over the exercise
      price per share of such options; and

     

     
      (b)    any
      options as to which, as of the effective date of any such Change in Control,
      the
      Fair Market Value of the shares of Common Stock subject to such options is
      less
      than or equal to the exercise price per share of such options, shall terminate
      as of the effective date of any such Change in Control.

     

    If
      the
      Committee makes a determination as set forth in subparagraph (a) of this Section
      10.4, then as of the effective date of any such Change in Control of the Company
      such options will terminate as to such shares and the participants formerly
      holding such options will only have the right to receive such cash payment(s).
      If the Committee makes a determination as set forth in subparagraph (b) of
      this
      Section 10.4, then as of the effective date of any such Change in Control of
      the
      Company such options will terminate, become void and expire as to all
      unexercised shares of Common Stock subject to such options on such date, and
      the
      participants formerly holding such options will have no further rights with
      respect to such options.

    

    
      
         

      

      
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    11.    General.

    

    11.1.    Effective
      Date.
      The
      Plan will become effective upon approval by the Company’s board of directors.

    

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

    

    11.3.    Non-transferability
      of Incentives.
      Except,
      in the event of the holder’s death, by will or the laws of descent and
      distribution to the limited extent provided in the Plan or the Incentive, unless
      approved by the Committee, no stock option, SAR, restricted stock or performance
      award may be transferred, pledged or assigned by the holder thereof, either
      voluntarily or involuntarily, directly or indirectly, by operation of law or
      otherwise, and the Company shall not be required to recognize any attempted
      assignment of such rights by any participant. During a participant’s lifetime,
      an Incentive may be exercised only by him or her or by his or her guardian
      or
      legal representative.

    

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

    

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

    

    
      
         

      

      
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    11.6.    Adjustment.
      In the
      event of any merger, consolidation or reorganization of the Company with any
      other corporation or corporations, there shall be substituted for each of the
      shares of Common Stock then subject to the Plan, including shares subject to
      restrictions, options, or achievement of performance share objectives, the
      number and kind of shares of stock or other securities to which the holders
      of
      the shares of Common Stock will be entitled pursuant to the transaction. In
      the
      event of any recapitalization, reclassification, stock dividend, stock split,
      reverse stock split of shares or other similar change in the corporate structure
      of the Company or shares of the Company, the exercise price of an outstanding
      Incentive and the number of shares of Common Stock then subject to the Plan,
      including shares subject to restrictions, options or achievements of performance
      shares, shall be adjusted in proportion to the change in outstanding shares
      of
      Common Stock in order to prevent dilution or enlargement of the rights of the
      participants. In the event of any such adjustments, the purchase price of any
      option, the performance objectives of any Incentive, and the shares of Common
      Stock issuable pursuant to any Incentive shall be adjusted as and to the extent
      appropriate, in the discretion of the Committee, to provide participants with
      the same relative rights before and after such adjustment.

    

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

    

    11.8.    Withholding.

    

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

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

       

    

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

    

     
      (c)    If
      a
      participant is an officer or director of the Company within the meaning of
      Section 16 of the Exchange Act, then an Election is subject to the following
      additional restrictions:

    

     
      (1)    No
      Election shall be effective for a Tax Date which occurs within six months of
      the
      grant or exercise of the award, except that this limitation shall not apply
      in
      the event death or disability of the participant occurs prior to the expiration
      of the six-month period.

    

     
      (2)    The
      Election must be made either six months prior to the Tax Date or must be made
      during a period beginning on the third business day following the date of
      release for publication of the Company’s quarterly or annual summary statements
      of sales and earnings and ending on the twelfth business day following such
      date.

    

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

    

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

    

    11.11.    Amendment
      of the Plan.
      The
      Board may amend, suspend or discontinue the Plan at any time; provided, however,
      that no amendments to the Plan will be effective without approval of the
      shareholders of the Company if shareholder approval of the amendment is then
      required pursuant to Section 422 of the Code or the rules of any stock exchange
      or Nasdaq or similar regulatory body. No termination, suspension or amendment
      of
      the Plan may adversely affect any outstanding Incentive without the consent
      of
      the affected participant; provided, however, that this sentence will not impair
      the right of the Committee to take whatever action it deems appropriate under
      Section 11.6 of the Plan. 

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

    

    
      
         

      

      
        11

        
          

        

      

      
         

      

       

    

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

    

    11.13    Governing
      Law.
      The
      validity, construction, interpretation, administration and effect of the Plan
      and any rules, regulations and actions relating to the Plan will be governed
      by
      and construed exclusively in accordance with the laws of the State of Delaware,
      notwithstanding the conflicts of laws principles of any
      jurisdictions.

    

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

     

    
      
         

      

      
        12

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