Document:

exv10w2

 

Exhibit 10.2

EQUIPMENT LEASE AGREEMENT

     THIS AGREEMENT (the “Agreement”) is made and entered into by and between
WWW.ELINKSYSTEMS.COM,LLC, a Texas Based Company (“Lessor”), and CLAIMSNET.COM
__________________, a ___ Delaware Corporation _______________ (“Lessee” and collectively with
Lessor, the “Parties”), as of December 1, 2006.

     1. EQUIPMENT LEASED. Lessor hereby leases to Lessee, and Lessee leases from Lessor,
the property (hereinafter referred to as the “Equipment”), set forth in Exhibit A, which is
attached hereto and made a part hereof. Exhibit A may be modified from time to time upon the
separate written agreement of the Parties.

     2. TERM AND RENT. The term of this Agreement (the “Lease Term”) shall commence on the
date first above written and, subject to any right to terminate the Agreement herein, shall remain
in force for three years from that date; provided, however, that Lessor may terminate this
Agreement at any time by giving prior notice to Lessee, not less than three (3) days before the
date of such termination. Unless a different pay period is subsequently agreed to by the Parties,
rent in the amount of Four Thousand, Seventy Eight and 39/100 Dollars ($4,078.39) shall be paid by
Lessee to Lessor on the first day of each month during the Lease Term.

     3. TITLE. This Agreement creates a lease only of the Equipment and, except as
otherwise stated in Section 6 below, nothing contained herein or the payment of rent hereunder
shall enable Lessee to acquire any right, title, or other interest in or to the Equipment other
than that of a lessee. Lessee will not (i) subject the Equipment to any claims, liens or
encumbrances, (ii) sell, sublet or lend the Equipment, or (iii) permit the Equipment to be used by
anyone other than Lessee and its employees and agents.

     4. TAXES AND OTHER CHARGES. Unless subsequently agreed to otherwise by the Parties:

	 	(a)	 	Lessee shall pay and/or be responsible for all sales and use taxes imposed on
the possession, use, or operation of the Equipment during the term of this Agreement.
	 
	 	(b)	 	Lessee assumes all responsibility and shall pay the cost and expense for all
licensing, registrations, permits, and such other certificates as may be required for
the lawful operation of the Equipment during the term of this Agreement.
	 
	 	(c)	 	Lessee shall observe all safety rules and other requirements of regulatory
bodies having jurisdiction and shall pay all fines assessed.
	 
	 	(d)	 	Lessor may pay any tax, licensing, registration, or permit fee, fine, or other
charge, whether levied, assessed, charged, or imposed against Lessor or the Lessee. If
such payment is made by Lessor, Lessee shall reimburse Lessor. Lessor shall also have
the right of offset in the event Lessor owes any monies to Lessee.

1

 

     5. LOCATION OF EQUIPMENT. The Equipment shall not be delivered to Lessee during the
Lease Term, but shall remain at Lessor’s place of business or other location as determined by the
Lessor.

     6. PURCHASE OPTION. At the end of the Lease Term, as further consideration for the
payment of rent by the Lessee, the Lessee shall have the right, but not the obligation, to purchase
all of the Equipment for the amount of One Dollar ($1.00) (the “Purchase Option”). Lessee shall
notify Lessor no later than thirty (30) days prior to the end of the Lease Term of its intention to
exercise the Purchase Option. If Lessee fails to provide such notice, the Purchase Option shall
expire thirty (30) days prior to the end of the Lease Term.

     7. MAINTENANCE AND REPAIR. Lessee shall purchase and pay all operating expenses
necessary for the operation of the Equipment, and at Lessee’s sole cost and expense keep the
Equipment in good repair, condition, and operating order. In the event Lessor pays any such costs,
Lessor shall invoice Lessee for such costs for payment. Lessor shall have the right of offset in
the event Lessor owes any monies to Lessee. At the end of the Lease Term, unless Lessee exercises
the Purchase Option, Lessee shall return the Equipment, if necessary, to Lessor at Lessor’s place
of business in operating order and in the same condition and state of repair as it was on the date
of this Agreement, ordinary wear and tear excepted.

     8. LOSS, DAMAGE AND INSURANCE. As between the Parties, Lessee accepts all risks of
loss and damage to the Equipment (“Loss”) from the shipment of the Equipment, if applicable, to
Lessee until returned to Lessor. Lessee Must notify Lessor immediately if there is any Loss and
Lessor will demand that Lessee either (a) repair or replace the Equipment or (b) pay Lessor the
“Stipulated Loss Value” which is the sum of (i) all Rent and other amounts due, and currently owed
to Lessor under the Lease, including unpaid taxes, (ii) all future Rent payments that would accrue
over the remaining Lease Term plus Lessor’s estimated value of the residual interest of all of the
Equipment at the end of the Lease Term, such sum to be discounted to present value at a discount
rate equal to the Federal Reserve Bank Discount Rate in effect at the date of this Agreement and
(iii) any costs and expenses incurred as a result of this event. For the Lease Term set forth
above, Lessee will maintain property casualty insurance in an amount equal to the replacement value
of the Equipment naming Lessor as loss payee and public liability and third party property damage
insurance naming Lessor as an additional insured. At Lessor’s request, Lessee will deliver the
policies or certificates of insurance to Lessor. If Lessee does not give Lessor evidence of
insurance we may obtain such insurance and charge Lessee for the cost. The foregoing policies shall
provide that it may not be cancelled or materially altered without at least 30 days’ prior written
notice to Lessor.

     9. DEFAULT. Each of the following is considered a default (“Default”) under this
Agreement: (i) if Lessee fails to perform any of the obligations, terms or conditions of this
Agreement including payment of rent when due, (ii) if Lessee becomes insolvent or enters into (or
has entered against Lessee) bankruptcy, receivership, reorganization, dissolution, liquidation or
other similar proceeding, (iii) if Lessee makes an attempt to sell or convert the Equipment, (iv)
or the Equipment be encumbered in any way. In the event of a Default, Lessor shall have the right
to exercise the following nonexclusive remedies:

2

 

	 	(a)	 	To require Lessee to pay to Lessor a sum equal to (i) the Stipulated Loss Value
calculated above plus; (ii) any costs and expenses (including breakage fees) incurred
as a result of the Default;
	 
	 	(b)	 	To receive payment by Lessee in the amount of $4078.39. + all appropriate
sales, city, county, federal, and any other taxes , due at the beginning of the month.
	 
	 	(c)	 	To Cancel or terminate this Agreement;
	 
	 	(d)	 	To retake and retain, if necessary, the Equipment without demand or legal
process free of all rights of the Lessee; and
	 
	 	(e)	 	Pursue all rights and remedies available to Lessor at law or in equity.

     10. LATE CHARGES. If any payment of rent or other amount payable to Lessor is no
received in full within 5 days after the due date, Lessee will pay to Lessor a late charge equal to
the greater of (i) 5.00% of the late payment amount or (ii) $50.00 for each late payment (or if
less, the highest amount permitted by applicable law). Payment of any late charge does not excuse
Lessee of any default under this Agreement.

     11. ARBITRATION. Either Party, or anyone to whom this Lease is transferred may choose
to have any dispute arising under this Lease resolved by binding arbitration. The party demanding
arbitration may elect for the arbitration to be conducted under the rules then in effect of either
the National Arbitration Forum (“NAF”); JAMS/Endispute; or the American Arbitration Association.
Where available, the arbitration shall be conducted under the commercial rules of the selected
forum, as amended by this arbitration clause (the “Arbitration Clause”). Arbitration rules and
other information are available by contacting these arbitration forums:

	 	 	 	 	 
	American Arbitration Association 

1150 Connecticut Avenue, NW, Floor 6

Washington, DC 20036-4104

202-296-8510

	 	JAMS/Endispute

700 11th Street, N.W., Suite 450

Washington, DC 20001

800-352-5267
	 	National Arbitration
Forum 

P. O. Box 50191

Minneapolis, MN 55405

612-631-1105

Any party may elect to arbitrate even if an action has been filed in court, so long as no
judgment has been rendered. However, if the party that has not demanded arbitration prefers to
proceed in small claims court instead of arbitrating the claim, the party that has demanded
arbitration shall be required to revoke the demand for arbitration and litigate in small claims
court after receiving adequate assurance that the total of all current and future claims to be
raised in the small claims court action by the party that has not demanded arbitration will not
exceed a total amount in controversy of $5,000.

A single arbitrator shall hold the arbitration hearing in the federal judicial district where
Lessee is located. The arbitrator shall apply applicable law. The arbitrator’s award shall be final
and binding on all parties, except that in the event of an award in excess of $100,000, the non
prevailing party may request a new arbitration by a three-arbitrator panel under the
selected forum’s rules.

3

 

Each party shall pay its own arbitration costs and expenses, including attorneys’ fees, except that
the arbitrator may award attorneys’ fees, court costs and other charges if applicable law permits.
Either party may enter judgment on the award in the highest local, state or federal court or before
any administrative body that has jurisdiction. This Arbitration Clause shall survive termination or
expiration of the Lease Term. No class action arbitration may be brought or ordered under this
Arbitration Clause and there shall be no joinder of parties, except for joinder of parties
mentioned in this Arbitration Clause.

UNDER THIS ARBITRATION CLAUSE, DISPUTES BETWEEN THE PARTIES MAY BE RESOLVED BY BINDING
ARBITRATION EVEN IF ONE PARTY WOULD PREFER TO SETTLE THE DISPUTE IN COURT; A PARTY MAY NOT HAVE
THE RIGHT TO SEEK REMEDIES IN COURT, INCLUDING THE RIGHT TO A JURY TRIAL; THE ABILITY TO COMPEL
OTHER PARTIES TO PRODUCE DOCUMENTS OR TO BE EXAMINED IS MORE LIMITED IN ARBITRATION THAN IN A
LAWSUIT; AND, RIGHTS TO APPEAL OR CHANGE AN ARBITRATION AWARD IN COURT ARE VERY LIMITED. IF LESSEE
IS IN DEFAULT, LESSOR RETAINS AN OPTION TO USE JUDICIAL OR NON-JUDICIAL RELIEF TO ENFORCE ITS
INTEREST IN THE EQUIPMENT AND TO ENFORCE THE MONETARY OBLIGATION. JUDICIAL RELIEF WOULD TAKE THE
FORM OF A LAWSUIT THAT WILL NOT CONSTITUTE A WAIVER OF THE RIGHT OF ANY PARTY TO COMPEL ARBITRATION
REGARDING ANY OTHER DISPUTE OR REMEDY SUBJECT TO ARBITRATION IN THIS LEASE, INCLUDING THE FILING OF
A COUNTERCLAIM IN A LAWSUIT BROUGHT BY EITHER PARTY PURSUANT TO THIS PROVISION.

     12. WAIVER. Lessor’s forbearance in exercising any right or remedy available
hereunder upon Lessee’s breach of the terms, covenants, and conditions of this Agreement or
Lessor’s failure to demand the punctual performance thereof shall not be deemed a waiver of:

	 	(a)	 	such right or remedy;
	 
	 	(b)	 	the requirement of punctual performance; or
	 
	 	(c)	 	any subsequent breach or default on the part of Lessee;

     13. DISCLAIMER OF WARRANTIES. Lessee acknowledges that (i) Lessor is not the
manufacturer of the Equipment nor the manufacturer’s agent, and (ii) Lessor has not made any
representation or warranty regarding the Equipment not contained herein, and (iii) Lessee is
responsible for reading the operating instructions and warnings provided by the manufacturer of the
Equipment. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, LESSOR DISCLAIMS ALL EXPRESS OR IMPLIED
WARRANTIES WITH RESPECT TO THE EQUIPMENT, INCLUDING WITHOUT LIMITATION ANY WARRANTY OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

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     14. NOTICES. All notices or other documents under this Agreement shall be in writing
and delivered personally or mailed by certified mail, postage prepaid, addressed to the Parties at
their last known address.

     15. GOVERNING LAW. This Agreement shall be construed in accordance with and governed
by the laws of the State of Texas. All civil actions filed as a result of disputes arising out of
this Agreement shall be filed in the court of proper jurisdiction in the State of Texas.

     16. BINDING EFFECT. The provisions of this Agreement shall be binding upon and inure
to the benefit of the Parties and their respective heirs, executors, administrators, legal
representatives, successors and assigns.

     IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date set forth
above.

	 	 	 	 	 	 	 	 	 	 	 
	WWW.ELINK SYSTEMS.COM, LLC	 	 	 	CLAIMSNET.COM	 	 
	2500 Legacy Drive	 	 	 	 	 	 	 	 
	Suite 120	 	 	 	 	 	 	 	 
	Frisco, TX 75034	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Blake York
 

Name:  Blake York
	 	 
	 	By:
	 	/s/ Don Crosbie
 

Name:  Don Crosbie
	 	 
	 

	 	Title:    President
	 	 	 	 	 	Title:    CEO	 	 

5

 

EXHIBIT A

EQUIPMENT LEASE AGREEMENT

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Product	 	Vendor	 	Price	 	qty	 	Ext Price
	Cisco 2950 24 Port Switch
	 	eLink	 	$	1,950.00	 	 	 	2	 	 	$	3,900.00	 
	Cisco ASA5510 firewall w/Intrusion Detection Option
	 	eLink	 	$	7,000.00	 	 	 	1	 	 	$	7,000.00	 
	TrendMicro AntiVirus license
	 	eLink	 	$	35.00	 	 	 	8	 	 	$	280.00	 
	Misc Hardware
	 	eLink	 	$	125.00	 	 	 	1	 	 	$	125.00	 
	Installation
	 	eLink	 	$	3,800.00	 	 	 	2	 	 	$	7,600.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	MS Server Enterprise Edition 2003 R2 — *** and ****
	 	eLink	 	$	2,175.00	 	 	 	1	 	 	$	2,175.00	 
	MS Server Enterprise Edition 2003 R2 — Media
	 	eLink	 	$	25.96	 	 	 	1	 	 	$	25.96	 
	MS Server 2003 Web Edition
	 	eLink	 	$	399.00	 	 	 	2	 	 	$	798.00	 
	MS Server 2003
	 	eLink	 	$	650.26	 	 	 	3	 	 	$	1,950.78	 
	MS Server CAL
	 	eLink	 	$	25.96	 	 	 	20	 	 	$	519.20	 
	MS Server Media Kit
	 	eLink	 	$	27.00	 	 	 	1	 	 	$	27.00	 
	MS Terminal Server CALS
	 	eLink	 	$	71.79	 	 	 	20	 	 	$	1,435.80	 
	MS SQL Server Standard Per Processor
	 	eLink	 	$	5,300.00	 	 	 	2	 	 	$	10,600.00	 
	MS SQL Server Standard Media
	 	eLink	 	$	25.96	 	 	 	1	 	 	$	25.96	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	HP DL580 G4
	 	HP	 	$	20,950.63	 	 	 	2	 	 	$	41,901.26	 
	HP Care Pack DL580 24x7
	 	HP	 	$	1,102.50	 	 	 	2	 	 	$	2,205.00	 
	HP ILO2 License
	 	HP	 	$	226.85	 	 	 	2	 	 	$	453.70	 
	MSA1500 SAN Kit
	 	HP	 	$	9,235.00	 	 	 	1	 	 	$	9,235.00	 
	256MB Ram
	 	HP	 	$	377.65	 	 	 	2	 	 	$	755.30	 
	MSA1500 HA Bundle
	 	HP	 	$	6,250.00	 	 	 	1	 	 	$	6,250.00	 
	146GB U320 15K RPM HD
	 	HP	 	$	419.30	 	 	 	14	 	 	$	5,870.20	 
	HP Care Pack 24x7 MSA1500
	 	HP	 	$	2,382.10	 	 	 	1	 	 	$	2,382.10	 
	HP DL380 G5
	 	HP	 	$	5,545.22	 	 	 	1	 	 	$	5,545.22	 
	HP Care Pack DL380 24x7
	 	HP	 	$	616.85	 	 	 	1	 	 	$	616.85	 
	HP ILO2 License
	 	HP	 	$	226.85	 	 	 	1	 	 	$	226.85	 
	HP Dl360 G5
	 	HP	 	$	1,982.24	 	 	 	1	 	 	$	1,982.24	 
	HP Care Pack DL360 24x7
	 	HP	 	$	357.50	 	 	 	2	 	 	$	715.00	 
	HP ILO2 License
	 	HP	 	$	226.85	 	 	 	2	 	 	$	453.70	 
	HP Dl360 G5
	 	HP	 	$	2,042.55	 	 	 	2	 	 	$	4,085.10	 
	HP Care Pack DL360 24x7
	 	HP	 	$	357.50	 	 	 	2	 	 	$	715.00	 
	HP ILO2 License
	 	HP	 	$	226.85	 	 	 	2	 	 	$	453.70	 
	HP DL360 G4 — Send mail Server
	 	eLink	 	$	1,000.00	 	 	 	1	 	 	$	1,000.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	TOTAL
	 	 	 	 	 	 	 	 	 	 	 	$	121,308.92	 

 

			
	***	 	- Claimsnet needs qty2 — Claimsnet will provide 1 copy
	 
	****	 	- No User counts included

Lease Options                     36 monthsexv10w1

 

 

Exhibit 10.1

 

    APPLIX,
    INC.

 

    2006
    STOCK INCENTIVE PLAN

 

		
	
    1.  
	
    Purpose

 

    The purpose of this 2006 Stock Incentive Plan (the
    “Plan”) of Applix, Inc., a Massachusetts corporation
    (the “Company”), is to advance the interests of the
    Company’s stockholders by enhancing the Company’s
    ability to attract, retain and motivate persons who are expected
    to make important contributions to the Company and by providing
    such persons with equity ownership opportunities and
    performance-based incentives that are intended to align their
    interests with those of the Company’s stockholders. Except
    where the context otherwise requires, the term
    “Company” shall include any of the Company’s
    present or future parent or subsidiary corporations as defined
    in Sections 424(e) or (f) of the Internal Revenue Code
    of 1986, as amended, and any regulations promulgated thereunder
    (the “Code”) and any other business venture
    (including, without limitation, joint venture or limited
    liability company) in which the Company has a controlling
    interest, as determined by the Board of Directors of the Company
    (the “Board”).

 

		
	
    2.  
	
    Eligibility

 

    All of the Company’s employees, officers, consultants and
    advisors are eligible to receive options, stock appreciation
    rights, restricted stock, restricted stock units and other
    stock-based awards (each, an “Award”) under the Plan.
    Each person who receives an Award under the Plan is deemed a
    “Participant”.

 

		
	
    3.  
	
    Administration
    and Delegation

 

    (a) Administration by Board of
    Directors.  The Plan will be administered by
    the Board. The Board shall have authority to grant Awards and to
    adopt, amend and repeal such administrative rules, guidelines
    and practices relating to the Plan as it shall deem advisable.
    The Board may construe and interpret the terms of the Plan and
    any Award agreements entered into under the Plan. The Board may
    correct any defect, supply any omission or reconcile any
    inconsistency in the Plan or any Award in the manner and to the
    extent it shall deem expedient to carry the Plan into effect and
    it shall be the sole and final judge of such expediency. All
    decisions by the Board shall be made in the Board’s sole
    discretion and shall be final and binding on all persons having
    or claiming any interest in the Plan or in any Award. No
    director or person acting pursuant to the authority delegated by
    the Board shall be liable for any action or determination
    relating to or under the Plan made in good faith.

 

    (b) Appointment of Committees.  To
    the extent permitted by applicable law, the Board may delegate
    any or all of its powers under the Plan to one or more
    committees or subcommittees of the Board (a
    “Committee”). All references in the Plan to the
    “Board” shall mean the Board or a Committee of the
    Board to the extent that the Board’s powers or authority
    under the Plan have been delegated to such Committee.

 

		
	
    4.  
	
    Stock
    Available for Awards

 

    (a) Number of Shares.  Subject to
    adjustment under Section 9, Awards may be made under the
    Plan for up to 1,000,000 shares of common stock,
    $.0025 par value per share, of the Company (the
    “Common Stock”). If any Award expires or is
    terminated, surrendered or canceled without having been fully
    exercised, is forfeited in whole or in part (including as the
    result of shares of Common Stock subject to such Award being
    repurchased by the Company at the original issuance price
    pursuant to a contractual repurchase right), is settled in cash
    or otherwise results in any Common Stock not being issued, the
    unused Common Stock covered by such Award shall again be
    available for the grant of Awards under the Plan. However, in
    the case of Incentive Stock Options (as hereinafter defined),
    the foregoing provisions shall be subject to any limitations
    under the Code. Shares issued under the Plan may consist in
    whole or in part of authorized but unissued shares or treasury
    shares.

    

    1

 

    (b) Sub-limits.  Subject
    to adjustment under Section 9, the following sub-limits on
    the number of shares subject to Awards shall apply:

 

    (1) Section 162(m) Per-Participant
    Limit.  The maximum number of shares of Common
    Stock with respect to which Awards may be granted to any
    Participant under the Plan shall be 250,000 per calendar
    year. For purposes of the foregoing limit, the combination of an
    Option in tandem with an SAR (as each is hereafter defined)
    shall be treated as a single Award. The per-Participant limit
    described in this Section 4(b)(1) shall be construed and
    applied consistently with Section 162(m) of the Code or any
    successor provision thereto, and the regulations thereunder
    (“Section 162(m)”).

 

    (2) Limit on Awards other than Options and
    SARS.  The maximum number of shares with
    respect to which Awards other than Options and SARs may be
    granted shall be 300,000.

 

    (c) Substitute Awards.  In
    connection with a merger or consolidation of an entity with the
    Company or the acquisition by the Company of property or stock
    of an entity, the Board may grant Awards in substitution for any
    options or other stock or stock-based awards granted by such
    entity or an affiliate thereof. Substitute Awards may be granted
    on such terms as the Board deems appropriate in the
    circumstances, notwithstanding any limitations on Awards
    contained in the Plan. Substitute Awards shall not count against
    the overall share limit set forth in Section 4(a), except
    as may be required by reason of Section 422 and related
    provisions of the Code.

 

		
	
    5.  
	
    Stock
    Options

 

    (a) General.  The Board may grant
    options to purchase Common Stock (each, an “Option”)
    and determine the number of shares of Common Stock to be covered
    by each Option, the exercise price of each Option and the
    conditions and limitations applicable to the exercise of each
    Option, including conditions relating to applicable federal or
    state securities laws, as it considers necessary or advisable.
    An Option that is not intended to be an Incentive Stock Option
    (as hereinafter defined) shall be designated a
    “Nonstatutory Stock Option.”

 

    (b) Incentive Stock Options.  An
    Option that the Board intends to be an “incentive stock
    option” as defined in Section 422 of the Code (an
    “Incentive Stock Option”) shall only be granted to
    employees of Applix, Inc., any of Applix, Inc.’s present or
    future parent or subsidiary corporations as defined in
    Sections 424(e) or (f) of the Code, and any other
    entities the employees of which are eligible to receive
    Incentive Stock Options under the Code, and shall be subject to
    and shall be construed consistently with the requirements of
    Section 422 of the Code. The Company shall have no
    liability to a Participant, or any other party, if an Option (or
    any part thereof) that is intended to be an Incentive Stock
    Option is not an Incentive Stock Option or for any action taken
    by the Board, including without limitation the conversion of an
    Incentive Stock Option to a Nonstatutory Stock Option.

 

    (c) Exercise Price.  The Board
    shall establish the exercise price of each Option and specify
    such exercise price in the applicable option agreement;
    provided, however, that the exercise price shall be not less
    than 100% of the Fair Market Value (as defined below) on the
    date the Option is granted.

 

    (d) Duration of Options.  Each
    Option shall be exercisable at such times and subject to such
    terms and conditions as the Board may specify in the applicable
    option agreement, provided, however, that no Option will be
    granted for a term in excess of seven years.

 

    (e) Exercise of Option.  Options
    may be exercised by delivery to the Company of a written notice
    of exercise signed by the proper person or by any other form of
    notice (including electronic notice) approved by the Board,
    together with payment in full as specified in Section 5(f)
    for the number of shares for which the Option is exercised.
    Shares of Common Stock subject to the Option will be delivered
    by the Company following exercise either as soon as practicable
    or, subject to such conditions as the Board shall specify, on a
    deferred basis (with the Company’s obligation to be
    evidenced by an instrument providing for future delivery of the
    deferred shares at the time or times specified by the Board).

    

    2

 

    (f) Payment Upon Exercise.  Common
    Stock purchased upon the exercise of an Option granted under the
    Plan shall be paid for as follows:

 

    (1) in cash or by check, payable to the order of the
    Company;

 

    (2) except as may otherwise be provided in the applicable
    option agreement, by (i) delivery of an irrevocable and
    unconditional undertaking by a creditworthy broker to deliver
    promptly to the Company sufficient funds to pay the exercise
    price and any required tax withholding or (ii) delivery by
    the Participant to the Company of a copy of irrevocable and
    unconditional instructions to a creditworthy broker to deliver
    promptly to the Company cash or a check sufficient to pay the
    exercise price and any required tax withholding;

 

    (3) to the extent provided for in the applicable option
    agreement or approved by the Board, in its sole discretion, by
    delivery (either by actual delivery or attestation) of shares of
    Common Stock owned by the Participant valued at their fair
    market value as determined by (or in a manner approved by) the
    Board (“Fair Market Value”), provided (i) such
    method of payment is then permitted under applicable law,
    (ii) such Common Stock, if acquired directly from the
    Company, was owned by the Participant for such minimum period of
    time, if any, as may be established by the Board in its
    discretion and (iii) such Common Stock is not subject to
    any repurchase, forfeiture, unfulfilled vesting or other similar
    requirements;

 

    (4) to the extent permitted by applicable law and provided
    for in the applicable option agreement or approved by the Board,
    in its sole discretion, by (i) delivery of a promissory
    note of the Participant to the Company on terms determined by
    the Board, or (ii) payment of such other lawful
    consideration as the Board may determine; or

 

    (5) by any combination of the above permitted forms of
    payment.

 

    (g) Limitation on
    Repricing.  Unless such action is approved by
    the Company’s stockholders: (i) no outstanding Option
    granted under the Plan may be amended to provide an exercise
    price per share that is lower than the then-current exercise
    price per share of such outstanding Option (other than
    adjustments pursuant to Section 9) and (2) the
    Board may not cancel any outstanding option (whether or not
    granted under the Plan) and grant in substitution therefore new
    Awards under the Plan covering the same or a different number of
    share of Common Stock and having an exercise price per share
    lower than the then-current exercise price per share of the
    cancelled option.

 

		
	
    6.  
	
    Stock
    Appreciation
    Rights.  
    

 

    (a) General.  The Board may grant
    Awards consisting of a Stock Appreciation Right
    (“SAR”) entitling the holder, upon exercise, to
    receive an amount in Common Stock or cash or a combination
    thereof (such form to be determined by the Board) determined by
    reference to appreciation, from and after the date of grant, in
    the fair market value of a share of Common Stock. The date as of
    which such appreciation or other measure is determined shall be
    the exercise date.

 

    (b) Grants.  Stock Appreciation
    Rights may be granted in tandem with, or independently of,
    Options granted under the Plan.

 

    (1) Tandem Awards.  When Stock
    Appreciation Rights are expressly granted in tandem with
    Options, (i) the Stock Appreciation Right will be
    exercisable only at such time or times, and to the extent, that
    the related Option is exercisable (except to the extent
    designated by the Board in connection with a Reorganization
    Event) and will be exercisable in accordance with the procedure
    required for exercise of the related Option; (ii) the Stock
    Appreciation Right will terminate and no longer be exercisable
    upon the termination or exercise of the related Option, except
    to the extent designated by the Board in connection with a
    Reorganization Event and except that a Stock Appreciation Right
    granted with respect to less than the full number of shares
    covered by an Option will not be reduced until the number of
    shares as to which the related Option has been exercised or has
    terminated exceeds the number of shares not covered by the Stock
    Appreciation Right; (iii) the Option will terminate and no
    longer be exercisable upon the exercise of the related Stock
    Appreciation Right; and (iv) the Stock Appreciation Right
    will be transferable only with the related Option.

    

    3

 

    (2) Independent SARs.  A Stock
    Appreciation Right not expressly granted in tandem with an
    Option will become exercisable at such time or times, and on
    such conditions, as the Board may specify in the SAR Award.

 

    (c) Grant Price.  The grant price
    or exercise price of an SAR shall not be less than 100% of the
    Fair Market Value per share of Common Stock on the date of grant
    of the SAR.

 

    (d) Term.  The term of an SAR shall
    not be more than seven years from the date of grant.

 

    (e) Exercise.  Stock Appreciation
    Rights may be exercised by delivery to the Company of a written
    notice of exercise signed by the proper person or by any other
    form of notice (including electronic notice) approved by the
    Board, together with any other documents required by the Board.

 

    7.  Restricted
    Stock; Restricted Stock
    Units.  
    

 

    (a) General.  The Board may grant
    Awards entitling recipients to acquire shares of Common Stock
    (“Restricted Stock”), subject to the right of the
    Company to repurchase all or part of such shares at their issue
    price or other stated or formula price (or to require forfeiture
    of such shares if issued at no cost) from the recipient in the
    event that conditions specified by the Board in the applicable
    Award are not satisfied prior to the end of the applicable
    restriction period or periods established by the Board for such
    Award. Instead of granting Awards for Restricted Stock, the
    Board may grant Awards entitling the recipient to receive shares
    of Common Stock to be delivered at the time such shares of
    Common Stock vest (“Restricted Stock Units”)
    (Restricted Stock and Restricted Stock Units are each referred
    to herein as a “Restricted Stock Award”).

 

    (b) Limitations on Vesting.  

 

    (1) Restricted Stock Awards that vest based on the passage
    of time alone shall be zero percent vested prior to the first
    anniversary of the date of grant, no more than
    331/3%
    vested prior to the second anniversary of the date of grant, and
    no more than
    662/3%
    vested prior to the third anniversary of the date of grant.
    Restricted Stock Awards that vest upon the passage of time and
    provide for accelerated vesting based on performance shall not
    vest prior to the first anniversary of the date of grant. This
    subsection 7(b)(1) shall not apply to a maximum of
    30,000 shares of Common Stock with respect to which
    Restricted Stock Awards may be granted.

 

    (2) Notwithstanding any other provision of this Plan, the
    Board may, in its discretion, either at the time a Restricted
    Stock Award is made or at any time thereafter, waive its right
    to repurchase shares of Common Stock (or waive the forfeiture
    thereof) or remove or modify any part or all of the restrictions
    applicable to the Restricted Stock Award, provided that the
    Board may only exercise such rights in extraordinary
    circumstances which shall include, without limitation, death or
    disability of the Participant; estate planning needs of the
    Participant; a merger, consolidation, sale, reorganization,
    recapitalization, or change in control of the Company; or any
    other nonrecurring significant event affecting the Company, a
    Participant or the Plan.

 

    (c) Terms and Conditions for all Restricted Stock
    Awards.  The Board shall determine the terms
    and conditions of a Restricted Stock Award, including the
    conditions for vesting and repurchase (or forfeiture) and the
    issue price, if any.

 

    (d) Additional Provisions Relating to Restricted
    Stock.  

 

    (1) Dividends.  Participants
    holding shares of Restricted Stock will be entitled to all
    ordinary cash dividends paid with respect to such shares, unless
    otherwise provided by the Board. If any such dividends or
    distributions are paid in shares, or consist of a dividend or
    distribution to holders of Common Stock other than an ordinary
    cash dividend, the shares, cash or other property will be
    subject to the same restrictions on transferability and
    forfeitability as the shares of Restricted Stock with respect to
    which they were paid. Each dividend payment will be made no
    later than the end of the calendar year in which the dividends
    are paid to shareholders of that class of stock or, if later,
    the 15th day of the third month following the date the
    dividends are paid to shareholders of that class of stock.

 

    (2) Stock Certificates.  The
    Company may require that any stock certificates issued in
    respect of shares of Restricted Stock shall be deposited in
    escrow by the Participant, together with a stock power endorsed
    in blank, with the Company (or its designee). At the expiration
    of the applicable restriction periods, the Company (or such

    

    4

 

    designee) shall deliver the certificates no longer subject to
    such restrictions to the Participant or if the Participant has
    died, to the beneficiary designated, in a manner determined by
    the Board, by a Participant to receive amounts due or exercise
    rights of the Participant in the event of the Participant’s
    death (the “Designated Beneficiary”). In the absence
    of an effective designation by a Participant, “Designated
    Beneficiary” shall mean the Participant’s estate.

 

    (e) Additional Provisions Relating to Restricted
    Stock Units.  

 

    (1) Settlement.  Upon the vesting
    of and/or
    lapsing of any other restrictions (i.e., settlement) with
    respect to each Restricted Stock Unit, the Participant shall be
    entitled to receive from the Company one share of Common Stock
    or an amount of cash equal to the Fair Market Value of one share
    of Common Stock, as provided in the applicable Award agreement.
    The Board may, in its discretion, provide that settlement of
    Restricted Stock Units shall be deferred, on a mandatory basis
    or at the election of the Participant.

 

    (2) Voting Rights.  A Participant
    shall have no voting rights with respect to any Restricted Stock
    Units.

 

    (3) Dividend Equivalents.  To the
    extent provided by the Board, in its sole discretion, a grant of
    Restricted Stock Units may provide Participants with the right
    to receive an amount equal to any dividends or other
    distributions declared and paid on an equal number of
    outstanding shares of Common Stock (“Dividend
    Equivalents”). Dividend Equivalents may be paid currently
    or credited to an account for the Participants, may be settled
    in cash
    and/or
    shares of Common Stock and may be subject to the same
    restrictions on transfer and forfeitability as the Restricted
    Stock Units with respect to which paid, as determined by the
    Board in its sole discretion, subject in each case to such terms
    and conditions as the Board shall establish, in each case to be
    set forth in the applicable Award agreement.

 

		
	
    8.  
	
    Other
    Stock Unit
    Awards.  
    

 

    Other Awards of shares of Common Stock, and other Awards that
    are valued in whole or in part by reference to, or are otherwise
    based on, shares of Common Stock or other property, may be
    granted hereunder to Participants (“Other Stock Unit
    Awards”), including without limitation Awards entitling
    recipients to receive shares of Common Stock to be delivered in
    the future. Such Other Stock Unit Awards shall also be available
    as a form of payment in the settlement of other Awards granted
    under the Plan or as payment in lieu of compensation to which a
    Participant is otherwise entitled. Other Stock Unit Awards may
    be paid in shares of Common Stock or cash, as the Board shall
    determine. Subject to the provisions of the Plan, the Board
    shall determine the terms and conditions of each Other Stock
    Unit Award, including any purchase price applicable thereto.

 

		
	
    9.  
	
    Adjustments
    for Changes in Common Stock and Certain Other
    Events.  
    

 

    (a) Changes in Capitalization.  In
    the event of any stock split, reverse stock split, stock
    dividend, recapitalization, combination of shares,
    reclassification of shares, spin-off or other similar change in
    capitalization or event, or any dividend or distribution to
    holders of Common Stock other than an ordinary cash dividend,
    (i) the number and class of securities available under this
    Plan, (ii) the sub-limits set forth in Section 4(b),
    (iii) the number and class of securities and exercise price
    per share of each outstanding Option, (iv) the share- and
    per-share provisions and the exercise price of each Stock
    Appreciation Right, (v) the number of shares subject to and
    the repurchase price per share subject to each outstanding
    Restricted Stock Award and (vi) the share- and
    per-share-related provisions and the purchase price, if any, of
    each outstanding Other Stock Unit Award, shall be appropriately
    and equitably adjusted by the Company (or substituted Awards may
    be made, if applicable) in the manner determined by the Board.
    Without limiting the generality of the foregoing, in the event
    the Company effects a split of the Common Stock by means of a
    stock dividend and the exercise price of and the number of
    shares subject to such Option are adjusted as of the date of the
    distribution of the dividend (rather than as of the record date
    for such dividend), then an optionee who exercises an Option
    between the record date and the distribution date for such stock
    dividend shall be entitled to receive, on the distribution date,
    the stock dividend with respect to the shares of Common Stock
    acquired upon such Option exercise, notwithstanding the fact
    that such shares were not outstanding as of the close of
    business on the record date for such stock dividend.

    

    5

 

    (b) Reorganization Events.

 

    (1) Definition.  A
    “Reorganization Event” shall mean: (a) any merger
    or consolidation of the Company with or into another entity as a
    result of which all of the Common Stock of the Company is
    converted into or exchanged for the right to receive cash,
    securities or other property or is cancelled, (b) any
    exchange of all of the Common Stock of the Company for cash,
    securities or other property pursuant to a share exchange
    transaction or (c) any liquidation or dissolution of the
    Company.

 

    (2) Consequences of a Reorganization Event on Awards
    Other than Restricted Stock Awards.  In
    connection with a Reorganization Event, the Board may take any
    one or more of the following actions as to all or any
    outstanding Awards other than Restricted Stock Awards on such
    terms as the Board determines: (i) provide that Awards
    shall be assumed, or substantially equivalent Awards shall be
    substituted, by the acquiring or succeeding corporation (or an
    affiliate thereof), (ii) upon written notice to a
    Participant, provide that the Participant’s unexercised
    Options or other unexercised Awards will terminate immediately
    prior to the consummation of such Reorganization Event unless
    exercised by the Participant within a specified period following
    the date of such notice, (iii) provide that outstanding
    Awards shall become exercisable, realizable, or deliverable, or
    restrictions applicable to an Award shall lapse, in whole or in
    part prior to or upon such Reorganization Event, (iv) in
    the event of a Reorganization Event under the terms of which
    holders of Common Stock will receive upon consummation thereof a
    cash payment for each share surrendered in the Reorganization
    Event (the “Acquisition Price”), make or provide for a
    cash payment to a Participant equal to the excess, if any, of
    (A) the Acquisition Price times the number of shares of
    Common Stock subject to the Participant’s Options or other
    Awards (to the extent the exercise price does not exceed the
    Acquisition Price) over (B) the aggregate exercise price of
    all such outstanding Options or other Awards, in exchange for
    the termination of such Options or other Awards and any
    applicable tax withholdings, (v) provide that, in
    connection with a liquidation or dissolution of the Company,
    Awards shall convert into the right to receive liquidation
    proceeds (if applicable, net of the exercise price thereof) and
    (vi) any combination of the foregoing.

 

    For purposes of clause (i) above, an Option shall be
    considered assumed if, following consummation of the
    Reorganization Event, the Option confers the right to purchase,
    for each share of Common Stock subject to the Option immediately
    prior to the consummation of the Reorganization Event, the
    consideration (whether cash, securities or other property)
    received as a result of the Reorganization Event by holders of
    Common Stock for each share of Common Stock held immediately
    prior to the consummation of the Reorganization Event (and if
    holders were offered a choice of consideration, the type of
    consideration chosen by the holders of a majority of the
    outstanding shares of Common Stock); provided, however, that if
    the consideration received as a result of the Reorganization
    Event is not solely common stock of the acquiring or succeeding
    corporation (or an affiliate thereof), the Company may, with the
    consent of the acquiring or succeeding corporation, provide for
    the consideration to be received upon the exercise of Options to
    consist solely of common stock of the acquiring or succeeding
    corporation (or an affiliate thereof) equivalent in value (as
    determined by the Board) to the per share consideration received
    by holders of outstanding shares of Common Stock as a result of
    the Reorganization Event.

 

    (3) Consequences of a Reorganization Event on
    Restricted Stock Awards.  Upon the occurrence
    of a Reorganization Event other than a liquidation or
    dissolution of the Company, the repurchase and other rights of
    the Company under each outstanding Restricted Stock Award shall
    inure to the benefit of the Company’s successor and shall,
    unless the Board determines otherwise, apply to the cash,
    securities or other property which the Common Stock was
    converted into or exchanged for pursuant to such Reorganization
    Event in the same manner and to the same extent as they applied
    to the Common Stock subject to such Restricted Stock Award. Upon
    the occurrence of a Reorganization Event involving the
    liquidation or dissolution of the Company, except to the extent
    specifically provided to the contrary in the instrument
    evidencing any Restricted Stock Award or any other agreement
    between a Participant and the Company, all restrictions and
    conditions on all Restricted Stock Awards then outstanding shall
    automatically be deemed terminated or satisfied.

 

		
	
    10.  
	
    General
    Provisions Applicable to Awards

 

    (a) Transferability of
    Awards.  Awards shall not be sold, assigned,
    transferred, pledged or otherwise encumbered by the person to
    whom they are granted, either voluntarily or by operation of
    law, except by will

    

    6

 

    or the laws of descent and distribution or, other than in the
    case of an Incentive Stock Option, pursuant to a qualified
    domestic relations order, and, during the life of the
    Participant, shall be exercisable only by the Participant;
    provided, however, that the Board may permit or provide in an
    Award for the gratuitous transfer of the Award by the
    Participant to or for the benefit of any immediate family
    member, family trust or other entity established for the benefit
    of the Participant
    and/or an
    immediate family member thereof if, with respect to such
    proposed transferee, the Company would be eligible to use a
    Form S-8
    for the registration of the sale of the Common Stock subject to
    such Award under the Securities Act of 1933, as amended;
    provided, further, that the Company shall not be required to
    recognize any such transfer until such time as the Participant
    and such permitted transferee shall, as a condition to such
    transfer, deliver to the Company a written instrument in form
    and substance satisfactory to the Company confirming that such
    transferee shall be bound by all of the terms and conditions of
    the Award. References to a Participant, to the extent relevant
    in the context, shall include references to authorized
    transferees.

 

    (b) Documentation.  Each Award
    shall be evidenced in such form (written, electronic or
    otherwise) as the Board shall determine. Each Award may contain
    terms and conditions in addition to those set forth in the Plan.

 

    (c) Board Discretion.  Except as
    otherwise provided by the Plan, each Award may be made alone or
    in addition or in relation to any other Award. The terms of each
    Award need not be identical, and the Board need not treat
    Participants uniformly.

 

    (d) Termination of Status.  The
    Board shall determine the effect on an Award of the disability,
    death, termination of employment, authorized leave of absence or
    other change in the employment or other status of a Participant
    and the extent to which, and the period during which, the
    Participant, or the Participant’s legal representative,
    conservator, guardian or Designated Beneficiary, may exercise
    rights under the Award.

 

    (e) Withholding.  The Participant
    must satisfy all applicable federal, state, and local or other
    income and employment tax withholding obligations before the
    Company will deliver stock certificates or otherwise recognize
    ownership of Common Stock under an Award. The Company may decide
    to satisfy the withholding obligations through additional
    withholding on salary or wages. If the Company elects not to or
    cannot withhold from other compensation, the Participant must
    pay the Company the full amount, if any, required for
    withholding or have a broker tender to the Company cash equal to
    the withholding obligations. Payment of withholding obligations
    is due before the Company will issue any shares on exercise or
    release from forfeiture of an Award or, if the Company so
    requires, at the same time as is payment of the exercise price
    unless the Company determines otherwise. If provided for in an
    Award or approved by the Board in its sole discretion, a
    Participant may satisfy such tax obligations in whole or in part
    by delivery of shares of Common Stock, including shares retained
    from the Award creating the tax obligation, valued at their Fair
    Market Value; provided, however, except as otherwise provided by
    the Board, that the total tax withholding where stock is being
    used to satisfy such tax obligations cannot exceed the
    Company’s minimum statutory withholding obligations (based
    on minimum statutory withholding rates for federal and state tax
    purposes, including payroll taxes, that are applicable to such
    supplemental taxable income). Shares surrendered to satisfy tax
    withholding requirements cannot be subject to any repurchase,
    forfeiture, unfulfilled vesting or other similar requirements.

 

    (f) Amendment of Award.  Except as
    otherwise provided in Section 5(g), the Board may amend,
    modify or terminate any outstanding Award, including but not
    limited to, substituting therefor another Award of the same or a
    different type, changing the date of exercise or realization,
    and converting an Incentive Stock Option to a Nonstatutory Stock
    Option, provided either (i) that the Participant’s
    consent to such action shall be required unless the Board
    determines that the action, taking into account any related
    action, would not materially and adversely affect the
    Participant or (ii) that the change is permitted under
    Section 9 hereof.

 

    (g) Conditions on Delivery of
    Stock.  The Company will not be obligated to
    deliver any shares of Common Stock pursuant to the Plan or to
    remove restrictions from shares previously delivered under the
    Plan until (i) all conditions of the Award have been met or
    removed to the satisfaction of the Company, (ii) in the
    opinion of the Company’s counsel, all other legal matters
    in connection with the issuance and delivery of such shares have
    been satisfied, including any applicable securities laws and any
    applicable stock exchange or stock market rules and regulations,
    and (iii) the Participant has executed and delivered to the
    Company such representations or agreements as the Company may
    consider appropriate to satisfy the requirements of any
    applicable laws, rules or regulations.

    

    7

 

    (h) Acceleration.  Except as
    otherwise provided in Section 7(b), the Board may at any
    time provide that any Award shall become immediately exercisable
    in full or in part, free of some or all restrictions or
    conditions, or otherwise realizable in full or in part, as the
    case may be.

 

    (i) Performance Awards.  

 

    (1) Grants.  Restricted Stock
    Awards and Other Stock Unit Awards under the Plan may be made
    subject to the achievement of performance goals pursuant to this
    Section 10(i) (“Performance Awards”), subject to
    the limit in Section 4(b)(1) on shares covered by such
    grants.

 

    (2) Committee.  Grants of
    Performance Awards to any Covered Employee intended to qualify
    as “performance-based compensation” under
    Section 162(m) (“Performance-Based Compensation”)
    shall be made only by a Committee (or subcommittee of a
    Committee) comprised solely of two or more directors eligible to
    serve on a committee making Awards qualifying as
    “performance-based compensation” under
    Section 162(m). In the case of such Awards granted to
    Covered Employees, references to the Board or to a Committee
    shall be deemed to be references to such Committee or
    subcommittee. “Covered Employee” shall mean any person
    who is a “covered employee” under
    Section 162(m)(3) of the Code.

 

    (3) Performance Measures.  For any
    Award that is intended to qualify as Performance-Based
    Compensation, the Committee shall specify that the degree of
    granting, vesting
    and/or
    payout shall be subject to the achievement of one or more
    objective performance measures established by the Committee,
    which shall be based on the relative or absolute attainment of
    specified levels of one or any combination of the following:
    (a) net income, (b) earnings before or after
    discontinued operations, interest, taxes, depreciation
    and/or
    amortization, (c) operating profit before or after
    discontinued operations
    and/or
    taxes, (d) sales, (e) sales growth, (f) earnings
    growth, (g) cash flow or cash position, (h) gross
    margins, (i) stock price, (j) market share,
    (k) return on sales, assets, equity or investment,
    (l) improvement of financial ratings, (m) achievement
    of balance sheet or income statement objectives or
    (n) total shareholder return, and may be absolute in their
    terms or measured against or in relationship to other companies
    comparably, similarly or otherwise situated. Such performance
    measures may be adjusted to exclude any one or more of
    (i) extraordinary items, (ii) gains or losses on the
    dispositions of discontinued operations, (iii) the
    cumulative effects of changes in accounting principles,
    (iv) the writedown of any asset, and (v) charges for
    restructuring and rationalization programs. Such performance
    measures: (i) may vary by Participant and may be different
    for different Awards; (ii) may be particular to a
    Participant or the department, branch, line of business,
    subsidiary or other unit in which the Participant works and may
    cover such period as may be specified by the Committee; and
    (iii) shall be set by the Committee within the time period
    prescribed by, and shall otherwise comply with the requirements
    of, Section 162(m). Awards that are not intended to qualify
    as Performance-Based Compensation may be based on these or such
    other performance measures as the Board may determine.

 

    (4) Adjustments.  Notwithstanding
    any provision of the Plan, with respect to any Performance Award
    that is intended to qualify as Performance-Based Compensation,
    the Committee may adjust downwards, but not upwards, the cash or
    number of Shares payable pursuant to such Award, and the
    Committee may not waive the achievement of the applicable
    performance measures except in the case of the death or
    disability of the Participant.

 

    (5) Other.  The Committee shall
    have the power to impose such other restrictions on Performance
    Awards as it may deem necessary or appropriate to ensure that
    such Awards satisfy all requirements for Performance-Based
    Compensation.

 

		
	
    11.  
	
    Miscellaneous

 

    (a) No Right To Employment or Other
    Status.  No person shall have any claim or
    right to be granted an Award, and the grant of an Award shall
    not be construed as giving a Participant the right to continued
    employment or any other relationship with the Company. The
    Company expressly reserves the right at any time to dismiss or
    otherwise terminate its relationship with a Participant free
    from any liability or claim under the Plan, except as expressly
    provided in the applicable Award.

 

    (b) No Rights As
    Stockholder.  Subject to the provisions of the
    applicable Award, no Participant or Designated Beneficiary shall
    have any rights as a stockholder with respect to any shares of
    Common Stock to be distributed with respect to an Award until
    becoming the record holder of such shares.

    

    8

 

    (c) Effective Date and Term of
    Plan.  The Plan shall become effective on the
    date the Plan is approved by the Company’s stockholders
    (the “Effective Date”). No Awards shall be granted
    under the Plan after the completion of 10 years from the
    Effective Date, but Awards previously granted may extend beyond
    that date.

 

    (d) Amendment of Plan.  The Board
    may amend, suspend or terminate the Plan or any portion thereof
    at any time provided that (i) to the extent required by
    Section 162(m), no Award granted to a Participant that is
    intended to comply with Section 162(m) after the date of
    such amendment shall become exercisable, realizable or vested,
    as applicable to such Award, unless and until such amendment
    shall have been approved by the Company’s stockholders if
    required by Section 162(m) (including the vote required
    under Section 162(m)); (ii) no amendment that would
    require stockholder approval under the rules of the NASDAQ Stock
    Market (“NASDAQ”) may be made effective unless and
    until such amendment shall have been approved by the
    Company’s stockholders; and (iii) if the NASDAQ amends
    its corporate governance rules so that such rules no longer
    require stockholder approval of NASDAQ “material
    amendments” to equity compensation plans, then, from and
    after the effective date of such amendment to the NASDAQ rules,
    no amendment to the Plan (A) materially increasing the
    number of shares authorized under the Plan (other than pursuant
    to Section 9), (B) expanding the types of Awards that
    may be granted under the Plan, or (C) materially expanding
    the class of participants eligible to participate in the Plan
    shall be effective unless stockholder approval is obtained. In
    addition, if at any time the approval of the Company’s
    stockholders is required as to any other modification or
    amendment under Section 422 of the Code or any successor
    provision with respect to Incentive Stock Options, the Board may
    not effect such modification or amendment without such approval.
    No Award shall be made that is conditioned upon stockholder
    approval of any amendment to the Plan.

 

    (e) Provisions for Foreign
    Participants.  The Board may modify Awards or
    Options granted to Participants who are foreign nationals or
    employed outside the United States or establish subplans or
    procedures under the Plan to recognize differences in laws,
    rules, regulations or customs of such foreign jurisdictions with
    respect to tax, securities, currency, employee benefit or other
    matters.

 

    (f) Compliance With Code
    Section 409A.  No Award shall provide for
    deferral of compensation that does not comply with
    Section 409A of the Code, unless the Board, at the time of
    grant, specifically provides that the Award is not intended to
    comply with Section 409A of the Code. The Company shall
    have no liability to a Participant, or any other party, if an
    Award that is intended to be exempt from, or compliant with,
    Section 409A is not so exempt or compliant or for any
    action taken by the Board.

 

    (g) Governing Law.  The provisions
    of the Plan and all Awards made hereunder shall be governed by
    and interpreted in accordance with the laws of the Commonwealth
    of Massachusetts, excluding
    choice-of-law
    principles of the law of such state that would require the
    application of the laws of a jurisdiction other than such state.

    

    9

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