Document:

EXHIBIT
      10.2

     

    THE
      SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      U.S.
      SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY OTHER
      APPLICABLE SECURITIES LAWS AND HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION
      FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND SUCH OTHER
      SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN
      MAY BE SOLD, ASSIGNED, TRANSFERRED, ENCUMBERED, OR OTHERWISE DISPOSED OF, EXCEPT
      PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR
      AN
      OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION
      IS NOT REQUIRED.

     

    Warrant
      No. _____

     

    WARRANT
      TO PURCHASE SHARES OF COMMON STOCK

     

    OF

     

    NEOSTEM,
      INC.

     

    THIS
      CERTIFIES that, for value received, ______________is entitled to purchase from
      NEOSTEM, INC., a Delaware corporation (the “Corporation”),
      subject to the terms and conditions hereof, ____________________ (______) shares
      (the “Warrant
      Shares”)
      of
      common stock, $.001 par value (the “Common
      Stock”).
      This
      warrant, together with all warrants hereafter issued in exchange or substitution
      for this warrant, is referred to as the “Warrant”
and
      the
      holder of this Warrant is referred to as the “Holder.”
The
      number of Warrant Shares is subject to adjustment as hereinafter provided.
      Notwithstanding anything to the contrary contained herein, this Warrant shall
      expire at 5:00 p.m. (Eastern Time) on _____________,
      2013
      (the
“Termination
      Date”).
      

     

    1. Exercise
      of Warrants.
      The
      Holder may, at any time six months after the date of issuance (i.e. on
_____________,
      2008)
      and
      prior to the Termination Date, exercise this Warrant in whole or in part at
      an
      exercise price per share equal to $1.75 per share, subject to adjustment as
      provided herein (the “Exercise
      Price”),
      by
      the surrender of this Warrant (properly endorsed) at the principal office of
      the
      Corporation, or at such other agency or office of the Corporation in the United
      States of America as the Corporation may designate by notice in writing to
      the
      Holder at the address of such Holder appearing on the books of the Corporation,
      and by payment to the Corporation of the Exercise Price in lawful money of
      the
      United States by check or wire transfer for each share of Common Stock being
      purchased. Upon any partial exercise of this Warrant, there shall be executed
      and issued to the Holder a new Warrant in respect of the shares of Common Stock
      as to which this Warrant shall not have been exercised. In the event of the
      exercise of the rights represented by this Warrant, a certificate or
      certificates for the Warrant Shares so purchased, as applicable, registered
      in
      the name of the Holder, shall be delivered to the Holder hereof as soon as
      practicable after the rights represented by this Warrant shall have been so
      exercised. 

     

    2. Reservation
      of Warrant Shares.
      The
      Corporation agrees that, prior to the expiration of this Warrant, it will at
      all
      times have authorized and in reserve, and will keep available, solely for
      issuance or delivery upon the exercise of this Warrant, the number of Warrant
      Shares as from time to time shall be issuable by the Corporation upon the
      exercise of this Warrant.

     

    3. No
      Stockholder Rights.
      This
      Warrant shall not entitle the holder hereof to any voting rights or other rights
      as a stockholder of the Corporation.

     

    4. Transferability
      of Warrant.
      Prior
      to the Termination Date and subject to compliance with applicable Federal and
      State securities and other laws, this Warrant and all rights hereunder are
      transferable, in whole or in part, at the office or agency of the Company by
      the
      Holder in person or by duly authorized attorney, upon surrender of this Warrant
      together with the Assignment Form annexed hereto properly endorsed for transfer.
      Any registration rights to which this Warrant may then be subject shall be
      transferred together with the Warrant to the subsequent Investor.

     

    
      
        
        

      

      
        -1-

        
          

        

      

      
        
        

      

    

    5. Certain
      Adjustments.
      With
      respect to any rights that Holder has to exercise this Warrant and convert
      into
      shares of Common Stock, Holder shall be entitled to the following
      adjustments:

     

    (a) Merger
      or Consolidation.
      If at
      any time there shall be a merger or a consolidation of the Corporation with
      or
      into another entity when the Corporation is not the surviving corporation,
      then,
      as part of such merger or consolidation, lawful provision shall be made so
      that
      the holder hereof shall thereafter be entitled to receive upon exercise of
      this
      Warrant, during the period specified herein and upon payment of the aggregate
      Exercise Price then in effect, the number of shares of stock or other securities
      or property (including cash) of the successor corporation resulting from such
      merger or consolidation, to which the holder hereof as the holder of the stock
      deliverable upon exercise of this Warrant would have been entitled in such
      merger or consolidation if this Warrant had been exercised immediately before
      such transaction. In any such case, appropriate adjustment shall be made in
      the
      application of the provisions of this Warrant with respect to the rights and
      interests of the holder hereof as the holder of this Warrant after the merger
      or
      consolidation.

     

    (b) Reclassification,
      Recapitalization, etc.
      If the
      Corporation at any time shall, by subdivision, combination or reclassification
      of securities, recapitalization, automatic conversion, or other similar event
      affecting the number or character of outstanding shares of Common Stock, or
      otherwise, change any of the securities as to which purchase rights under this
      Warrant exist into the same or a different number of securities of any other
      class or classes, this Warrant shall thereafter represent the right to acquire
      such number and kind of securities as would have been issuable as the result
      of
      such change with respect to the securities that were subject to the purchase
      rights under this Warrant immediately prior to such subdivision, combination,
      reclassification or other change.

     

    (c) Split
      or Combination of Common Stock and Stock Dividend.
      In case
      the Corporation shall at any time subdivide, redivide, recapitalize, split
      (forward or reverse) or change its outstanding shares of Common Stock into
      a
      greater number of shares or declare a dividend upon its Common Stock payable
      solely in shares of Common Stock, the Exercise
      Price
      shall be
      proportionately reduced and the number of Warrant Shares proportionately
      increased. Conversely, in case the outstanding shares of Common Stock of the
      Corporation shall be combined into a smaller number of shares, the Exercise
      Price
      shall be
      proportionately increased and the number of Warrant Shares proportionately
      reduced.

     

    6. Legend
      and Stop Transfer Orders.
      Unless
      the Warrant Shares have been registered under the Securities Act, upon exercise
      of any part of the Warrant, the Corporation shall instruct its transfer agent
      to
      enter stop transfer orders with respect to such Warrant Shares, and all
      certificates or instruments representing the Warrant Shares shall bear on the
      face thereof substantially the following legend:

     

    THE
      SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      U.S.
      SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY OTHER
      APPLICABLE SECURITIES LAWS AND HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION
      FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND SUCH OTHER
      SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN
      MAY BE SOLD, ASSIGNED, TRANSFERRED, ENCUMBERED, OR OTHERWISE DISPOSED OF, EXCEPT
      PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR
      AN
      OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE CORPORATION THAT SUCH
      REGISTRATION IS NOT REQUIRED.

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    7.Redemption
      of Warrant.
      This
      Warrant is subject to redemption by the Company as provided in this Section
      7.

     

    (a) This
      Warrant may be redeemed, at the option of the Company, in whole and not in
      part,
      at a redemption price of $.0001 per Warrant (the “Redemption
      Price”),
      provided (i) the average closing price of the Common Stock as quoted by
      Bloomberg, LP., or the Principal Trading Market (as defined below) on which
      the
      Common Stock is included for quotation or trading, shall equal or exceed $2.40
      per share (taking into account all adjustments) for twenty (20) out of thirty
      (30) consecutive trading days. 

     

    (b) If
      the
      conditions set forth in Section
      7(a)
      are met,
      and the Company desires to exercise its right to redeem this Warrant, it shall
      mail a notice (the “Redemption
      Notice”)
      to the
      registered holder of this Warrant by first class mail, postage prepaid, at
      least
      ten (10) business days prior to the date fixed by the Company for redemption
      of
      the Warrants (the “Redemption
      Date”).

     

    (c
      ) The
      Redemption Notice shall specify (i) the Redemption Price, (ii) the Redemption
      Date, (iii) the place where the Warrant certificates shall be delivered and
      the
      redemption price paid, and (iv) that the right to exercise this Warrant shall
      terminate at 5:00 p.m. (New York time) on the business day immediately
      preceding the Redemption Date. No failure to mail such notice nor any defect
      therein or in the mailing thereof shall affect the validity of the proceedings
      for such redemption except as to a holder (a) to whom notice was not mailed,
      or
      (b) whose notice was defective. An affidavit of the Secretary or an
      Assistant Secretary of the Company that the Redemption Notice has been mailed
      shall, in the absence of fraud, be prima
      facie
      evidence
      of the facts stated therein.

     

    (d) Any
      right
      to exercise a Warrant shall terminate at 5:00 p.m. (New York time) on the
      business day immediately preceding the Redemption Date. On and after the
      Redemption Date, the holder of this Warrant shall have no further rights except
      to receive, upon surrender of this Warrant, the Redemption Price.

     

    (e) From
      and
      after the Redemption Date, the Company shall, at the place specified in the
      Redemption Notice, upon presentation and surrender to the Company by or on
      behalf of the holder thereof the warrant certificates evidencing this Warrant
      being redeemed, deliver, or cause to be delivered to or upon the written order
      of such holder, a sum in cash equal to the Redemption Price of this Warrant.
      From and after the Redemption Date, this Warrant shall expire and become void
      and all rights hereunder and under the warrant certificates, except the right
      to
      receive payment of the Redemption Price, shall cease. 

     

    8. Miscellaneous.
      This
      Warrant shall be governed by and construed in accordance with the laws of the
      State of New York. All the covenants and provisions of this Warrant by or for
      the benefit of the Corporation shall bind and inure to the benefit of its
      successors and assigns hereunder. Nothing in this Warrant shall be construed
      to
      give to any person or corporation other than the Corporation and the holder
      of
      this Warrant any legal or equitable right, remedy, or claim under this Warrant.
      This Warrant shall be for the sole and exclusive benefit of the Corporation
      and
      the Holder. The section headings herein are for convenience only and are not
      part of this Warrant and shall not affect the interpretation hereof. Upon
      receipt of evidence satisfactory to the Corporation of the loss, theft,
      destruction, or mutilation of this Warrant, and of indemnity reasonably
      satisfactory to the Corporation, if lost, stolen, or destroyed, and upon
      surrender and cancellation of this Warrant, if mutilated, the Corporation shall
      execute and deliver to the Holder a new Warrant of like date, tenor, and
      denomination.

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    

     

    IN
      WITNESS WHEREOF, the Corporation has caused this Warrant to be executed by
      its
      duly authorized officers under its seal, this ___ day of ________
      2008.

     

    
      	 	
              NEOSTEM,
                INC.

            
	 	 
	 	 
	 	   

	 	
              Robin
                L. Smith, Chairman & & Chief Executive Officer

            
	 	 

    

    

    

    

    

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    WARRANT
      EXERCISE FORM

     

    To
      Be Executed by the Holder in Order to Exercise Warrant

     

    
      	To:	
              NeoStem,
                Inc.           Dated:
                ________________ __, 20__

            

    

    420
      Lexington Avenue

    Suite
      450

    New
      York,
      New York 10170

    Attn:
      Chairman and CEO

     

    The
      undersigned, pursuant to the provisions set forth in the attached Warrant
      No. ______, hereby irrevocably elects to purchase ____________ shares of
      the Common Stock of NeoStem, Inc. covered by such Warrant.

     

    
      	 ̈  	
              The
                undersigned herewith makes payment of the full purchase price for
                such
                shares at the price per share provided for in such Warrant. Such
                payment
                takes the form of $__________ in lawful money of the United
                States.

            

    

     

    The
      undersigned hereby requests that certificates for the Warrant Shares purchased
      hereby be issued in the name of:

     

     

     

      
        

      

    

    (please
      print or type name and address)

     

    
      
        

      

    

    (please
      insert social security or other identifying number)

     

    and
      be
      delivered as follows:

     

    
      
        

      

    

     

    
      
        

      

    

    (please
      print or type name and address)

     

    
      
        

      

    

    (please
      insert social security or other identifying number)

     

    and
      if
      such number of shares of Common Stock shall not be all the shares evidenced
      by
      this Warrant Certificate, that a new Warrant for the balance of such shares
      be
      registered in the name of, and delivered to, Holder.

     

     

    
      	 	
              
                

              

              Signature
                of Holder

            
	 	 
	 	 
	
               

            	
              
                

              

              SIGNATURE
                GUARANTEE:

            

    

     

     

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

    ASSIGNMENT
      FORM

    

    (To
      assign the foregoing warrant, execute

    this
      form. Do not use this form to exercise the warrant.)

    
 

    FOR
      VALUE
      RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby
      assigned to

     

     

    
      
        

      

    

    whose
      address is 

     

    
      
 

      

    

     

    

    
       
Dated: ________ __,
      200_                                        

    

    

    
      	 	
              Holder’s
                Signature:

            	  

	 	
              Holder’s
                Address:

            	   
              
	 	
                
                

            	   
              
	 	 	 

    

    

    

    

    
      	Signature
              Guaranteed:	   
              	 

    

     

     

     

    NOTE:
      The
      signature to this Assignment Form must correspond with the name as it appears
      on
      the face of the Warrant, without alteration or enlargement or any change
      whatsoever, and must be guaranteed by a bank or trust Corporation. Officers
      of
      corporations and those acting in a fiduciary or other representative capacity
      should file proper evidence of authority to assign the foregoing
      Warrant.

    

     

    
      
        
        

      

      
        -6-EXHIBIT 4.1

    GTX
      CORP

     

    2008
      EQUITY COMPENSATION PLAN

     

    I.
      ESTABLISHMENT OF PLAN; DEFINITIONS

     

    1. Purpose.
      The
      purpose of the GTX Corp’s 2008 Equity Compensation Plan is to encourage certain,
      officers, employees, directors and consultants of GTX Corp, a Nevada corporation
      (the "Corporation")
      to
      acquire and hold stock in the Corporation as an added incentive to remain with
      the Corporation and to increase their efforts in promoting the interests of
      the
      Corporation and to enable the Corporation to attract and retain capable
      individuals.

     

    2. Definitions.
      Unless
      the context clearly indicates otherwise, the following terms shall have the
      meanings set forth below:

     

    (a)
       “Award”
      shall mean the grant of any Stock Option, Stock Appreciation Right or Stock
      Award pursuant to the Plan.

     

    (a) "Board"
      shall mean the Board of Directors of the Corporation.

     

    (b) "Code"
      shall mean the Internal Revenue Code of 1986, as it may be amended from time
      to
      time.

     

    (c) "Committee"
      shall mean a committee made up of at least two members of the Board whose
      members shall, from time to time, be appointed by the Board. If a Committee
      has
      not been appointed by the Board, “Committee” shall mean the Board..

     

    (d) "Corporation"
      shall mean GTX Corp, a Nevada corporation.

     

    (e) "Consultants"
      shall mean individuals or entities that provide services to the Corporation
      who
      are not Employees or Directors.

     

    (f) "Directors"
      shall mean those members of the Board of Directors of the Corporation who are
      not Employees.

     

    (g) "Disability"
      shall mean a medically determinable physical or mental condition which causes
      an
      Employee, Director or Consultant to be unable to engage in any substantial
      gainful activity and which can be expected to result in death or to be of
      long-continued and indefinite duration.

     

    (h) "Employee"
      shall mean any common law employee, including officers, of the Corporation
      as
      determined under the Code and the Treasury Regulations thereunder.

     

    (i) "Fair
      Market Value" with regards to the grant of Stock Options
      shall
      mean (i) if the Stock is listed on a national securities exchange, the mean
      between the highest and lowest sales prices for the Stock on such date, or,
      if
      no such prices are reported for such day, then on the next preceding day on
      which there were reported prices; (ii) if the Stock is not listed on a national
      securities exchange, the closing price for the shares on such date, or if no
      such prices are reported for such day, then on the next preceding day on which
      there were reported prices; or (iii) as determined in good faith by the Board.
      “Fair Market Value” with regards to Stock Awards shall be determined by the
      Board, in good faith and in its sole discretion.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    (j) "Grantee"
      shall mean an officer, Employee, Director or Consultant granted a Stock Option
      or Stock Award under this Plan.

     

    (k) "Incentive
      Stock Option" shall mean an option granted pursuant to the Incentive Stock
      Option provisions as set forth in Part II of this Plan.

     

    (l) "Non-Qualified
      Stock Option" shall mean an option granted pursuant to the Non-Qualified Stock
      Option provisions as set forth in Part III of this Plan.

     

    (m) "Plan"
      shall mean the GTX Corp 2008 Equity Compensation Plan as set forth herein and
      as
      amended from time to time.

     

    (n) "Restricted
      Stock" shall mean Stock which is issued pursuant to the Restricted Stock as
      set
      forth in Part IV of this Plan.

     

    (o) "Stock"
      shall mean authorized but unissued shares of the Common Stock of the Corporation
      or reacquired shares of the Corporation's Common Stock.

     

    (p) "Stock
      Appreciation Right" shall mean a stock appreciation right granted pursuant
      to
      the Stock Appreciation Right provisions as set forth in Part II and III of
      this
      Plan.

     

    (q) "Stock
      Award" shall mean an award of Restricted or Unrestricted Stock granted pursuant
      to this Plan.

     

    (r) "Stock
      Option" shall mean an option granted pursuant to the Plan to purchase shares
      of
      Stock.

     

    (s) “Subsidiary”
      shall
      mean any corporation (other than the Corporation) in an unbroken chain of
      corporations beginning with and including the Corporation, if each of the
      corporations other than the last corporation in the unbroken chain owns stock
      possessing 50 percent (50%) or more of the total combined voting power of all
      classes of stock in one of the other corporations in such chain. 

     

    (t) "Ten
      Percent Shareholder" shall mean an Employee who at the time a Stock Option
      is
      granted owns stock possessing more than ten percent (10%) of the total combined
      voting power of all stock of the Corporation or of its parent or subsidiary
      corporation.

     

    (u) "Unrestricted
      Stock" shall mean Stock which is issued pursuant to the Unrestricted Stock
      provisions as set forth in Part V of this Plan.

     

    3. Shares
      of Stock Subject to the Plan.
      Subject
      to the provisions of Paragraph 2 of Part VI of the Plan, the Stock which may
      be
      issued or transferred pursuant to Stock Options and Stock Awards granted under
      the Plan and the Stock which is subject to outstanding but unexercised Stock
      Options under the Plan shall not exceed 7,000,000 shares in the aggregate.
      If a
      Stock Option shall expire and terminate for any reason, in whole or in part,
      without being exercised or, if Stock Awards are forfeited because the
      restrictions with respect to such Stock Awards shall not have been met or have
      lapsed, the number of shares of Stock which are no longer outstanding as Stock
      Awards or subject to Stock Options may again become available for the grant
      of
      Stock Awards or Stock Options. There shall be no terms and conditions in a
      Stock
      Award or Stock Option which provide that the exercise of an Incentive Stock
      Option reduces the number of shares of Stock for which an outstanding
      Non-Qualified Stock Option may be exercised; and there shall be no terms and
      conditions in a Stock Award or Stock Option which provide that the exercise
      of a
      Non-Qualified Stock Option reduces the number of shares of Stock for which
      an
      outstanding Incentive Stock Option may be exercised.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    4. Administration
      of the Plan.
      The
      Plan shall be administered by the Committee. Subject to the express provisions
      of the Plan, the Committee shall have authority to interpret the Plan, to
      prescribe, amend, and rescind rules and regulations relating to it, to determine
      the terms and provisions of Stock Option agreements, and to make all other
      determinations necessary or advisable for the administration of the Plan. Any
      controversy or claim arising out of or related to this Plan shall be determined
      unilaterally by and at the sole discretion of the Committee.

     

    5. Amendment
      or Termination.
      The
      Board may, at any time, alter, amend, suspend, discontinue, or terminate this
      Plan; provided, however, that such action shall not adversely affect the right
      of Grantees to Stock Awards or Stock Options previously granted and no
      amendment, without the approval of the stockholders of the Corporation, shall
      increase the maximum number of shares which may be awarded under the Plan in
      the
      aggregate, materially increase the benefits accruing to Grantees under the
      Plan,
      change the class of Employees eligible to receive options under the Plan, or
      materially modify the eligibility requirements for participation in the Plan.
      

     

    6. Effective
      Date and Duration of the Plan.
      This
      Plan shall become effective on March 14, 2008. This Plan shall terminate at
      such
      time as may be determined by the Board, and no Stock Award or Stock Option
      may
      be issued or granted under the Plan thereafter, but such termination shall
      not
      affect any Stock Award or Stock Option theretofore issued or
      granted.

     

    7. General.

     

    (a) Each
      Stock Option, Stock Award and Stock Appreciation Right shall be evidenced by
      a
      written instrument (which may be in the form of a unanimous written consent
      of
      the Board) containing such terms and conditions, not inconsistent with this
      Plan, as the Committee shall approve.

     

    (b) The
      granting of a Stock Option, Stock Award or Stock Appreciation Right in any
      year
      shall not give the Grantee any right to similar grants in future years or any
      right to be retained in the employ of the Corporation, and all Employees shall
      remain subject to discharge to the same extent as if the Plan were not in
      effect.

     

    (c) No
      officer, Employee, Director or Consultant and no beneficiary or other person
      claiming under or through him, shall have any right, title or interest by reason
      of any Stock Option or any Stock Award to any particular assets of the
      Corporation, or any shares of Stock allocated or reserved for the purposes
      of
      the Plan or subject to any Stock Option or any Stock Award except as set forth
      herein. The Corporation shall not be required to establish any fund or make
      any
      other segregation of assets to assure the payment of any Stock Option or Stock
      Award.

     

    (d) No
      right
      under the Plan shall be subject to anticipation, sale, assignment, pledge,
      encumbrance, or charge except by will or the laws of descent and distribution,
      and a Stock Option shall be exercisable during the Grantee's lifetime only
      by
      the Grantee or his conservator.

     

    (e) Notwithstanding
      any other provision of this Plan or agreements made pursuant thereto, the
      Corporation's obligation to issue or deliver any certificate or certificates
      for
      shares of Stock under a Stock Option or Stock Award, and the transferability
      of
      Stock acquired by exercise of a Stock Option or grant of a Stock Award, shall
      be
      subject to all of the following conditions:

     

    (i) Any
      registration or other qualification of such shares under any state or federal
      law or regulation, or the maintaining in effect of any such registration or
      other qualification which the Board shall, in its absolute discretion upon
      the
      advice of counsel, deem necessary or advisable; and

     

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    (ii) The
      obtaining of any other consent, approval, or permit from any state or federal
      governmental agency which the Board shall, in its absolute discretion upon
      the
      advice of counsel, determine to be necessary or advisable.

     

    (f) All
      payments to Grantees or to their legal representatives shall be subject to
      any
      applicable tax, community property, or other statutes or regulations of the
      United States or of any state or country having jurisdiction thereof. The
      Grantee may be required to pay to the Corporation the amount of any withholding
      taxes which the Corporation is required to withhold with respect to a Stock
      Option or its exercise or a Stock Award. In the event that such payment is
      not
      made when due, the Corporation shall have the right to deduct, to the extent
      permitted by law, from any payment of any kind otherwise due to such person
      all
      or part of the amount required to be withheld.

     

    (g) In
      the
      case of a grant of a Stock Option or Stock Award to any Employee of a subsidiary
      of the Corporation, the Corporation may, if the Committee so directs, issue
      or
      transfer the shares, if any, covered by the Stock Option or Stock Award to
      the
      subsidiary, for such lawful consideration as the Committee may specify, upon
      the
      condition or understanding that the subsidiary will transfer the shares to
      the
      Employee in accordance with the terms of the Stock Option or Stock Award
      specified by the Committee pursuant to the provisions of the Plan. For purposes
      of this Section, a subsidiary shall mean any subsidiary corporation of the
      Corporation as defined in Section 424 of the Code.

     

    (h) A
      Grantee
      entitled to Stock as a result of the exercise of a Stock Option or grant of
      a
      Stock Award shall not be deemed for any purpose to be, or have rights as, a
      shareholder of the Corporation by virtue of such exercise, except to the extent
      a stock certificate is issued therefor and then only from the date such
      certificate is issued. No adjustments shall be made for dividends or
      distributions or other rights for which the record date is prior to the date
      such stock certificate is issued. The Corporation shall issue any stock
      certificates required to be issued in connection with the exercise of a Stock
      Option with reasonable promptness after such exercise.

     

    (i) The
      grant
      or exercise of Stock Options granted under the Plan or the grant of a Stock
      Award under the Plan shall be subject to, and shall in all respects comply
      with,
      applicable law relating to such grant or exercise, or to the number of shares
      of
      Stock which may be beneficially owned or held by any Grantee.

     

    (j) The
      Corporation intends that the Plan shall comply with the requirements of Rule
      16b-3 (the “Rule”) under the Securities Exchange Act of 1934, as amended, during
      the term of this Plan. Should any additional provisions be necessary for the
      Plan to comply with the requirements of the Rule, the Board may amend this
      Plan
      to add to or modify the provisions of this Plan accordingly.

     

    (k) The
      Corporation intends that the Plan shall comply with the requirements of Section
      409A of the Code, to the extent applicable. Should any changes to the Plan
      be
      necessary for the Plan to comply with the requirements of Code Section 409A
      the
      Board
      may amend this Plan to add to or modify the provisions of this Plan
      accordingly.

     

    (l) The
      Corporation will seek stockholder approval in the manner and to the degree
      required under Applicable Laws. If the Corporation fails to obtain stockholder
      approval of the Plan within twelve (12) months after the date this Plan is
      adopted by the Board, pursuant to Section 422 of the Code, any Option granted
      as
      an Incentive Option at any time under the Plan will not qualify as an Incentive
      Option within the meaning of the Code and will be deemed to be a Non-Statutory
      Option.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    II.
      INCENTIVE STOCK OPTION PROVISIONS

     

    1. Granting
      of Incentive Stock Options.

     

    (j) Only
      Employees of the Corporation shall be eligible to receive Incentive Stock
      Options under the Plan. Officers, Directors and Consultants of the Corporation
      who are not also Employees shall not be eligible to receive Incentive Stock
      Options.

     

    (k) The
      purchase price of each share of Stock subject to an Incentive Stock Option
      shall
      not be less than 100% of the Fair Market Value of a share of the Stock on the
      date the Incentive Stock Option is granted; provided, however, that the purchase
      price of each share of Stock subject to an Incentive Stock Option granted to
      a
      Ten Percent Shareholder shall not be less than 110% of the Fair Market Value
      of
      a share of the Stock on the date the Incentive Stock Option is
      granted.

     

    (l) No
      Incentive Stock Option shall be exercisable more than ten years from the date
      the Incentive Stock Option was granted; provided, however, that an Incentive
      Stock Option granted to a Ten Percent Shareholder shall not be exercisable
      more
      than five years from the date the Incentive Stock Option was
      granted.

     

    (m) The
      Committee shall determine and designate from time to time those Employees who
      are to be granted Incentive Stock Options and specify the number of shares
      subject to each Incentive Stock Option.

     

    (n) The
      Committee, in its sole discretion, shall determine whether any particular
      Incentive Stock Option shall become exercisable in one or more installments,
      specify the installment dates, and, within the limitations herein provided,
      determine the total period during which the Incentive Stock Option is
      exercisable. Further, the Committee may make such other provisions as may appear
      generally acceptable or desirable to the Committee or necessary to qualify
      its
      grants under the provisions of Section 422 of the Code.

     

    (o) The
      Committee may grant at any time new Incentive Stock Options to an Employee
      who
      has previously received Incentive Stock Options or other options whether such
      prior Incentive Stock Options or other options are still outstanding, have
      previously been exercised in whole or in part, or are canceled in connection
      with the issuance of new Incentive Stock Options. The purchase price of the
      new
      Incentive Stock Options may be established by the Committee without regard
      to
      the existing Incentive Stock Options or other options.

     

    (p) Notwithstanding
      any other provisions hereof, the aggregate Fair Market Value (determined at
      the
      time the option is granted) of the Stock with respect to which Incentive Stock
      Options are exercisable for the first time by the Employee during any calendar
      year (under all such plans of the Grantee's employer corporation and its parent
      and subsidiary corporation) shall not exceed $100,000.

     

    2. Exercise
      of Incentive Stock Options.
      The
      option price of an Incentive Stock Option shall be payable on exercise of the
      option (i) in cash or by check, bank draft or postal or express money
      order, (ii) by the surrender of Stock then owned by the Grantee,
(iii)
      the
      proceeds of a loan from an independent broker-dealer whereby the loan is secured
      by the option or the stock to be received upon exercise,
      or
      (iv) any combination of the foregoing;
      provided,
      that
      each such method and time for payment and each such borrowing and terms and
      conditions of repayment shall then be permitted by and be in compliance with
      applicable law.
      Shares
      of Stock so surrendered in accordance with clause (ii) or (iv) shall be valued
      at the Fair Market Value thereof on the date of exercise, surrender of such
      Stock to be evidenced by delivery of the certificate(s) representing such shares
      in such manner, and endorsed in such form, or accompanied by stock powers
      endorsed in such form, as the Committee may determine.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    3. Termination
      of Employment.

     

    (a) If
      a
      Grantee's employment with the Corporation is terminated other than by Disability
      or death, the terms of any then outstanding Incentive Stock Option held by
      the
      Grantee shall extend for a period ending on the earlier of the date on which
      such Stock Option would otherwise expire or three months after such termination
      of employment, and such Stock Option shall be exercisable to the extent it
      was
      exercisable as of such last date of employment.

     

    (b) If
      a
      Grantee's employment with the Corporation is terminated by reason of Disability,
      the term of any then outstanding Incentive Stock Option held by the Grantee
      shall extend for a period ending on the earlier of the date on which such Stock
      Option would otherwise expire or twelve months after such termination of
      employment, and such Stock Option shall be exercisable to the extent it was
      exercisable as of such last date of employment.

     

    (c) If
      a
      Grantee's employment with the Corporation is terminated by reason of death,
      the
      representative of his estate or beneficiaries thereof to whom the Stock Option
      has been transferred shall have the right during the period ending on the
      earlier of the date on which such Stock Option would otherwise expire or twelve
      months after such date of death, to exercise any then outstanding Incentive
      Stock Options in whole or in part. If a Grantee dies without having fully
      exercised any then outstanding Incentive Stock Options, the representative
      of
      his estate or beneficiaries thereof to whom the Stock Option has been
      transferred shall have the right to exercise such Stock Options in whole or
      in
      part.

     

    4. Stock
      Appreciation Rights

     

    (a) Grant.
      Stock
      Appreciation Rights related to all or any portion of an Incentive Stock Option
      may be granted by the Committee to any Grantee in connection with the grant
      of
      an Incentive Stock Option or unexercised portion thereof held by the Grantee
      at
      any time and from time to time during the term thereof. Each Stock Appreciation
      Right shall be granted at least at Fair Market Value on the date of grant and
      be
      subject to such terms and conditions not inconsistent with the provisions of
      this Part II as shall be determined by the Committee and included in the
      agreement relating to such Stock Appreciation Right, subject in any event,
      however, to the following terms and conditions of this Section 4. Each Stock
      Appreciation Right may include limitations as to the time when such Stock
      Appreciation Right becomes exercisable and when it ceases to be exercisable
      that
      are more restrictive than the limitations on the exercise of the Incentive
      Stock
      Option to which it relates.

     

    (b) Exercise.
      No
      Stock Appreciation Right shall be exercisable with respect to such related
      Incentive Stock Option or portion thereof unless such Incentive Stock Option
      or
      portion shall itself be exercisable at that time. A Stock Appreciation Right
      shall be exercised only upon surrender of the related Incentive Stock Option
      or
      portion thereof in respect of which the Stock Appreciation Right is then being
      exercised.

     

    (c) Amount
      of Payment.
      On
      exercise of a Stock Appreciation Right, a Grantee shall be entitled to receive
      an amount equal to the product of (i) the amount by which the Fair Market Value
      of a share of Stock on the date of exercise of the Stock Appreciation Right
      exceeds the option price per share specified in the related Incentive Stock
      Option and (ii) the number of shares of Stock in respect of which the Stock
      Appreciation Right shall have been exercised.

     

    (d) Form
      of Payment.
      Stock
      Appreciation Rights may be settled in Stock, cash or a combination thereof.
      The
      number of shares of Stock to be distributed shall be the largest whole number
      obtained by dividing the amount otherwise distributable in respect of such
      settlement by the Fair Market Value of a share of Stock on the date of exercise
      of the Stock Appreciation Right. The value of fractional shares of Stock shall
      be paid in cash.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    (e) Effect
      of Exercise of Right or Related Option.
      If the
      related Incentive Stock Option is exercised in whole or in part, then the Stock
      Appreciation Right with respect to the Stock purchased pursuant to such exercise
      (but not with respect to any unpurchased Stock) shall be terminated as of the
      date of exercise if such Stock Appreciation Right is not exercised on such
      date.

     

    (f) Non-transferability.
      A Stock
      Appreciation Right shall not be transferable or assignable by the Grantee other
      than by will or the laws of descent and distribution, and shall be exercisable
      during the Grantee's lifetime only by the Grantee.

     

    (g) Termination
      of Employment.
      If the
      Grantee ceases to be an Employee of the Corporation for any reason, each
      outstanding Stock Appreciation Right shall be exercisable for such period and
      to
      such extent as the related Incentive Stock Option or portion
      thereof.

     

    III.
      NON-QUALIFIED STOCK OPTION PROVISIONS

     

    1. Granting
      of Stock Options.

     

    (a) Officers,
      Employees, Directors and Consultants shall be eligible to receive Non-Qualified
      Stock Options under the Plan.

     

    (b) The
      Committee shall determine and designate from time to time those officers,
      Employees, Directors and Consultants who are to be granted Non-Qualified Stock
      Options and the amount subject to each Non-Qualified Stock Option.

     

    (c) The
      Committee may grant at any time new Non-Qualified Stock Options to an Employee,
      Director or Consultant who has previously received Non-Qualified Stock Options
      or other Stock Options, whether such prior Non-Qualified Stock Options or other
      Stock Options are still outstanding, have previously been exercised in whole
      or
      in part, or are canceled in connection with the issuance of new Non-Qualified
      Stock Options.

     

    (d) The
      Committee shall determine the purchase price of each share of Stock subject
      to a
      Non-Qualified Stock Option. Such price shall not be less than 100% of the Fair
      Market Value of such Stock on the date the Non-Qualified Stock Option is
      granted. 

     

    (e) The
      Committee, in its sole discretion, shall determine whether any particular
      Non-Qualified Stock Option shall become exercisable in one or more installments,
      specify the installment dates, and, within the limitations herein provided,
      determine the total period during which the Non-Qualified Stock Option is
      exercisable. Further, the Committee may make such other provisions as may appear
      generally acceptable or desirable to the Committee, including the extension
      of a
      Non-Qualified Stock Option, provided that such extension does not extend the
      option beyond the period specified in paragraph (f) below.

     

    (f) No
      Non-Qualified Stock Option shall be exercisable more than ten years from the
      date such option is granted.

     

    2. Exercise
      of Stock Options.
      The
      option price of a Non-Qualified Stock Option shall be payable on exercise of
      the
      Stock Option (i) in cash or by check, bank draft or postal or express money
      order, (ii) by the surrender of Stock then owned by the
      Grantee,
      (iii)
      the proceeds of a loan from an independent broker-dealer whereby the loan is
      secured by the option or the stock to be received upon exercise,
      or
      (iv) any combination of the foregoing;
      provided,
      that
      each such method and time for payment and each such borrowing and terms and
      conditions of repayment shall then be permitted by and be in compliance with
      applicable law.
      Shares
      of Stock so surrendered in accordance with clause (ii) or (iv) shall be valued
      at the Fair Market Value thereof on the date of exercise, surrender of such
      Stock to be evidenced by delivery of the certificate(s) representing such shares
      in such manner, and endorsed in such form, or accompanied by stock powers
      endorsed in such form, as the Committee may determine.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    3. Termination
      of Relationship.

     

    (a) If
      a
      Grantee's employment with the Corporation is terminated, a Director Grantee
      ceases to be a Director, or a Consultant Grantee ceases to be a Consultant,
      other than by reason of Disability or death, the terms of any then outstanding
      Non-Qualified Stock Option held by the Grantee shall extend for a period ending
      on the earlier of the date established by the Committee at the time of grant
      or
      three months after the Grantee's last date of employment or cessation of being
      a
      Director or Consultant, and such Stock Option shall be exercisable to the extent
      it was exercisable as of the date of termination of employment or cessation
      of
      being a Director or Consultant.

     

    (b) If
      a
      Grantee's employment is terminated by reason of Disability, a Director Grantee
      ceases to be a Director by reason of Disability or a Consultant Grantee ceases
      to be a Consultant by reason of Disability, the term of any then outstanding
      Non-Qualified Stock Option held by the Grantee shall extend for a period ending
      on the earlier of the date on which such Stock Option would otherwise expire
      or
      twelve months after the Grantee's last date of employment or cessation of being
      a Director or Consultant, and such Stock Option shall be exercisable to the
      extent it was exercisable as of such last date of employment or cessation of
      being a Director or Consultant.

     

    (c) If
      a
      Grantee's employment is terminated by reason of death, a Director Grantee ceases
      to be a Director by reason of death or a Consultant Grantee ceases to be a
      Consultant by reason of death, the representative of his estate or beneficiaries
      thereof to whom the Stock Option has been transferred shall have the right
      during the period ending on the earlier of the date on which such Stock Option
      would otherwise expire or twelve months following his death to exercise any
      then
      outstanding Non-Qualified Stock Options in whole or in part. If a Grantee dies
      without having fully exercised any then outstanding Non-Qualified Stock Options,
      the representative of his estate or beneficiaries thereof to whom the Stock
      Option has been transferred shall have the right to exercise such Stock Options
      in whole or in part.

     

    4. Stock
      Appreciation Rights

     

    (a) Grant.
      Stock
      Appreciation Rights related to all or any portion of a Non-Qualified Stock
      Option may be granted by the Committee to any Grantee in connection with the
      grant of a Non-Qualified Stock Option or unexercised portion thereof held by
      the
      Grantee at any time and from time to time during the term thereof. Each Stock
      Appreciation Right shall be granted at least at Fair Market Value on the date
      of
      grant and be subject to such terms and conditions not inconsistent with the
      provisions of this Part III as shall be determined by the Committee and included
      in the agreement relating to such Stock Appreciation Right, subject in any
      event, however, to the following terms and conditions of this Section 4. Each
      Stock Appreciation Right may include limitations as to the time when such Stock
      Appreciation Right becomes exercisable and when it ceases to be exercisable
      that
      are more restrictive than the limitations on the exercise of the Non-Qualified
      Stock Option to which it relates.

     

    (b) Exercise.
      No
      Stock Appreciation Right shall be exercisable with respect to such related
      Non-Qualified Stock Option or portion thereof unless such Non-Qualified Stock
      Option or portion shall itself be exercisable at that time. A Stock Appreciation
      Right shall be exercised only upon surrender of the related Non-Qualified Stock
      Option or portion thereof in respect of which the Stock Appreciation Right
      is
      then being exercised.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    (c) Amount
      of Payment.
      On
      exercise of a Stock Appreciation Right, a Grantee shall be entitled to receive
      an amount equal to the product of (i) the amount by which the Fair Market Value
      of a share of Stock on the date of exercise of the Stock Appreciation Right
      exceeds the option price per share specified in the related Non-Qualified Stock
      Option and (ii) the number of shares of Stock in respect of which the Stock
      Appreciation Right shall have been exercised.

     

    (d) Form
      of Payment.
      Stock
      Appreciation Rights may only be settled in Stock, cash or any combination
      thereof. The number of shares of Stock to be distributed shall be the largest
      whole number obtained by dividing the amount otherwise distributable in respect
      of such settlement by the Fair Market Value of a share of Stock on the date
      of
      exercise of the Stock Appreciation Right. The value of fractional shares of
      Stock shall be paid in cash. 

     

    (e) Effect
      of Exercise of Right or Related Option.
      If the
      related Non-Qualified Stock Option is exercised in whole or in part, then the
      Stock Appreciation Right with respect to the Stock purchased pursuant to such
      exercise (but not with respect to any unpurchased Stock) shall be terminated
      as
      of the date of exercise if such Stock Appreciation Right is not exercised on
      such date.

     

    (f) Non-transferability.
      A Stock
      Appreciation Right shall not be transferable or assignable by the Grantee other
      than by will or the laws of descent and distribution, and shall be exercisable
      during the Grantee's lifetime only by the Grantee.

     

    (g) Termination
      of Employment.
      If the
      Grantee ceases to be an officer, Employee, Director or Consultant of the
      Corporation for any reason, each outstanding Stock Appreciation Right shall
      be
      exercisable for such period and to such extent as the related Non-Qualified
      Stock Option or portion thereof.

     

    IV.
      RESTRICTED STOCK AWARDS

     

    1. Grant
      of Restricted Stock.
      

     

    (a)
      Officers, Employees, Directors and Consultants shall be eligible to receive
      grants of Restricted Stock under the Plan.

     

    (b) The
      Committee shall determine and designate from time to time those officers,
      Employees, Directors and Consultants who are to be granted Restricted Stock
      and
      the number of shares of Stock subject to such Stock Award.

     

    (c) The
      Committee, in its sole discretion, shall make such terms and conditions
      applicable to the grant of Restricted Stock as may appear generally acceptable
      or desirable to the Committee.

     

    2. Termination
      of Relationship.

     

    (a) If
      a
      Grantee's employment with the Corporation, a Director Grantee ceases to be
      a
      Director, or a Consultant Grantee ceases to be a Consultant, prior to the lapse
      of any restrictions applicable to the Restricted Stock such Stock shall be
      forfeited and the Grantee shall return the certificates representing such Stock
      to the Corporation.

     

    (b) If
      the
      restrictions applicable to a grant of Restricted Stock shall lapse, the Grantee
      shall hold such Stock free and clear of all such restrictions except as
      otherwise provided in the Plan.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    V.
      UNRESTRICTED STOCK AWARDS

     

    1. Grant
      of Unrestricted Stock.

     

    (a) Officers,
      Employees, Directors and Consultants shall be eligible to receive grants of
      Unrestricted Stock under the Plan.

     

    (b) The
      Committee shall determine and designate from time to time those officers,
      Employees, Directors and Consultants who are to be granted Unrestricted Stock
      and number of shares of Stock subject to such Stock Award.

     

    2. Issuance
      of Stock.
      The
      Grantee shall hold Stock issued pursuant to an Unrestricted Stock award free
      and
      clear of all restrictions except as otherwise provided in the Plan.

     

    VI.
      ADJUSTMENTS UPON MERGER, REORGANIZATION, DISSOLUTION OR CHANGE IN
      CONTROL

     

    1. Substitution
      of Options.
      In the
      event of a corporate merger or consolidation, or the acquisition by the
      Corporation of property or stock of an acquired corporation or any
      reorganization or other transaction qualifying under Section 424 of the Code,
      the Committee may, in accordance with the provisions of that Section, substitute
      Stock Options, Stock Awards and Stock Appreciation Rights under this Plan for
      Stock Options, Stock Awards and Stock Appreciation Rights under the plan of
      the
      acquired corporation provided (i) the excess of the aggregate Fair Market
      Value of the shares of Stock subject to Stock Option immediately after the
      substitution over the aggregate option price of such Stock is not more than
      the
      similar excess immediately before such substitution and (ii) the new Stock
      Option does not give the Grantee additional benefits, including any extension
      of
      the exercise period. Alternatively, the
      Committee may provide, that each Stock Option, Stock Award and Stock
      Appreciation Right granted under the Plan shall terminate as of a date to be
      fixed by the Board; provided,
      that no
      less than thirty days written notice of the date so fixed shall be given to
      each
      holder, and each holder shall have the right, during the period of fifteen
      days
      preceding such termination, to exercise the Stock Options, Stock Awards and
      Stock Appreciation Rights as to all or any part of the Stock covered thereby,
      including Stock as to which such would not otherwise be exercisable. 

     

    2. Adjustment
      Provisions.

     

    (a) In
      the
      event that a dividend shall be declared upon the Stock payable in shares of
      the
      Corporation's common stock, the number of shares of Stock then subject to any
      Stock Option or Stock Award outstanding under the Plan and the number of shares
      reserved for the grant of Stock Options or Stock Awards pursuant to the Plan
      shall be adjusted by adding to each such share the number of shares which would
      be distributable in respect thereof if such shares had been outstanding on
      the
      date fixed for determining the shareholders of the Corporation entitled to
      receive such share dividend.

     

    (b) If
      the
      shares of Stock outstanding are changed into or exchanged for a different number
      or class or other securities of the Corporation or of another corporation,
      whether through split-up, merger, consolidation, reorganization,
      reclassification or recapitalization then there shall be substituted for each
      share of Stock subject to any such Stock Option or Stock Award and for each
      share of Stock reserved for the grant of Stock Options or Stock Awards pursuant
      to the Plan the number and kind of shares or other securities into which each
      outstanding share of Stock shall have been so changed or for which each share
      shall have been exchanged.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    (c) In
      the
      event there shall be any change, other than as specified above in this Section
      2, in the number or kind of outstanding shares of Stock or of any shares or
      other securities into which such shares shall have been changed or for which
      they shall have been exchanged, then if the Board shall, in its sole discretion,
      determine that such change equitably requires an adjustment in the number or
      kind of shares theretofore reserved for the grant of Stock Options or Stock
      Awards pursuant to the Plan and of the shares then subject to Stock Options
      or
      Stock Awards, such adjustment shall be made by the Board and shall be effective
      and binding for all purposes of the Plan and of each Stock Option and Stock
      Award outstanding thereunder.

     

    (d) Each
      Stock Appreciation Right outstanding at the time of any adjustment pursuant
      to
      this Section 2 and the number of outstanding Stock Appreciation Rights, shall
      be
      adjusted, changed or exchanged in the same manner as related Stock
      Options.

     

    (e) In
      the
      case of any such substitution or adjustment as provided for in this Section
      2,
      the option price set forth in each outstanding Stock Option for each share
      covered thereby prior to such substitution or adjustment will be the option
      price for all shares or other securities which shall have been substituted
      for
      such share or to which such share shall have been adjusted pursuant to this
      Section 2, and the price per share shall be adjusted accordingly.

     

    (f) No
      adjustment or substitution provided for in this Section 2 shall require the
      Corporation to sell a fractional share, and the total substitution or adjustment
      with respect to each outstanding Stock Option shall be limited
      accordingly.

     

    (g) Upon
      any
      adjustment made pursuant to this Section 2 the Corporation will, upon request,
      deliver to the Grantee a certificate setting forth the option price thereafter
      in effect and the number and kind of shares or other securities thereafter
      purchasable on the exercise of such Stock Option.

     

    3. Dissolution
      or Liquidation.
      In the
      event of a proposed dissolution or liquidation of the Corporation, to the extent
      an Award has not been previously exercised, it will terminate immediately prior
      to the consum-mation of such proposed action.

     

    4. Change
      in Control.
      Notwithstanding Sections 1 and 2 above, in the event of a Change of Control
      (as
      defined below), except as otherwise determined by the Board, the Grantee shall
      fully vest in and have the right to exercise the Awards as to all of the Stock,
      including Stock as to which it would not otherwise be vested or exercisable.
      If
      an Award becomes fully vested and exercisable as the result of a Change of
      Control, the Committee shall notify the Grantee in writing or electronically
      prior to the Change of Control that the Award shall be fully vested and
      exercisable for a period of fifteen (15) days from the date of such notice,
      and
      the Award shall terminate upon the expiration of such period. For purposes
      of
      this Agreement, a “Change of Control” means the happening of any of the
      following events:

     

    (a) When
      any
“person,” as such term is used in Sections 13(d) and 14(d) of the
      Securities Exchange Act of 1934, as amended (“Exchange Act”) (other than the
      Corporation, a Subsidiary or a Corporation employee benefit plan, including
      any
      trustee of such plan acting as trustee) is or becomes the “beneficial owner” (as
      defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
      securities of the Corporation representing fifty percent (50%) or more of the
      combined voting power of the Corporation’s then outstanding securities entitled
      to vote generally in the election of directors; or

    

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    (b) The
      stockholders of the Corporation approve a merger or consolidation of the
      Corporation with any other corporation, other than a merger or consolidation
      which would result in the voting securities of the Corporation outstanding
      immediately prior thereto continuing to represent (either by remaining
      outstanding or by being converted into voting securities of the surviving
      entity) more than fifty percent (50%) of the total voting power represented
      by
      the voting securities of the Corporation or such surviving entity outstanding
      immediately after such merger or consolidation, or the stockholders of the
      Corporation approve an agreement for the sale or disposition by the Corporation
      of all or substantially all the Corporation’s assets; or

    

    (c) A
      change
      in the composition of the Board of the Corporation, as a result of which less
      than a majority of the directors are Incumbent Directors. “Incumbent
      Directors”
shall
      mean directors who either (A) are directors of the Corporation as of the
      date the Plan is approved by the stockholders, or (B) are elected, or
      nominated for election, to the Board with the affirmative votes of at least
      a
      majority of the Incumbent Directors at the time of such election or nomination
      (but shall not include an individual whose election or nomination is in
      connection with an actual or threatened proxy contest relating to the election
      of directors to the Corporation). 

     

    VII. INDEMNIFICATION

     

    Each
      person who is or shall have been a member of the Committee, or of the Board,
      shall be indemnified and held harmless by the Corporation against and from
      any
      loss, cost, liability, or expense that may be imposed upon or reasonably
      incurred by him or her in connection with or resulting from any claim, notion,
      suit, or proceeding to which he or she may be a party or in which he or she
      may
      be involved by reason of any action taken or failure to act under the Plan
      or
      any Award agreement and against and from any and all amounts paid by him or
      her
      in settlement thereof, with the Corporation’s approval, or paid by him or her in
      settlement thereof, with the Corporation’s approval, or paid by him or her in
      satisfaction of any judgment in any such action, suit, or proceeding against
      him
      or her, provided he or she shall give the Corporation an opportunity, at its
      own
      expense, to handle and defend the same before he or she undertakes to handle
      and
      defend it on his or her own behalf. The foregoing right of indemnification
      shall
      not be exclusive of any other rights of indemnification to which such persons
      may be entitled under the Corporation’s Articles of Incorporation or Bylaws, as
      a matter of law, or otherwise, or any power that the Corporation may have to
      indemnify them or hold them harmless.

     

    VIII.
       CONDITIONS
      UPON ISSUANCE OF SHARES 

     

    1. Legal
      Compliance.
      Stock
      shall not be issued pursuant to the exercise of an Award unless the exercise
      of
      such Award and the issuance and delivery of Stock shall comply with applicable
      laws and shall be further subject to the approval of counsel for the Corporation
      with respect to such compliance. 

     

    2. Investment
      Representations.
      As a
      condition to the exercise of an Award, the Corporation may require the Grantee
      exercising such Award to represent and warrant at the time of any such exercise
      that the Stock is being purchased only for investment and without any present
      intention to sell or distribute such Stock if, in the opinion of counsel for
      the
      Corporation, such a representation is required.

     

    3. No
      Rights as Stockholder.
      No
      Grantee will have any of the rights of a stockholder with respect to any Stock
      until the Stock is issued to the said Grantee. After Stock is issued to the
      Grantee, the Grantee will be a stockholder and will have all the rights of
      a
      stockholder with respect to such Stock, including the right to vote and receive
      all dividends or other distributions made or paid with respect to such Stock.
      

     

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    IX.
      LEGAL
      CONSTRUCTION

     

     

    1. Gender
      and Number.
      Except
      where otherwise indicated by the context, any masculine term used herein also
      shall include the feminine; the plural shall include the singular and the
      singular shall include the plural. 

     

    2. Severability.
      In the
      event any provision of the Plan shall be held illegal or invalid for any reason,
      such illegality or invalidity shall not affect the remaining parts of the Plan,
      and the Plan shall be construed and enforced as if the illegal or invalid
      provision had not been included.

     

    3. Requirements
      of Law.
      The
      granting of Awards and the issuance of Stock under the Plan shall be subject
      to
      all applicable laws.

     

    4. Governing
      Law.
      The
      Plan and all Award agreements shall be construed in accordance with and governed
      by the laws of the State of California.

     

    5. Captions.
      Captions are provided herein for convenience only, and shall not serve as a
      basis for interpretation or construction of the Plan.

    

    [End
      of
      Document]

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