Document:

lmi8k080107ex102.htm

     

    Exhibit
      10.2

    
      Restricted
        Stock Agreement

    

    
      Fair
        value per share on
Grant
        Date
        -- $23.07

    

    
      

       

      THE
        RESTRICTED SHARES AWARDED
        UNDER THIS RESTRICTED STOCK AWARD AGREEMENT

    

    
      ARE
        SUBJECT TO A SUBSTANTIAL
        RISK OF FORFEITURE UNTIL VESTED.

    

    
      

       

      LMI
        AEROSPACE,
        INC.

    

    
      RESTRICTED
        STOCK AWARD
        AGREEMENT

    

    
      TO:            Ryan
        P. Bogan

    

    
       

      For
        the purposes set forth in
        the LMI Aerospace, Inc. ("Company") 2005 Long-Term Incentive Plan, as the
        same
        may be amended from time to time (the "Plan"), you have been awarded by the
        Committee Twenty One Thousand Six Hundred Seventy-Three (21,673) shares
        of the common stock of
        the Company, $0.02 par value per share (the "Restricted Shares"), which award
        (the "Award") is subject to and conditioned upon your acceptance of this
        Restricted Stock Award Agreement (the "Agreement").

    

    
      

    

    
      The
        terms
        of the Award are as set forth in this Agreement and in the Plan. The Plan
        is
        incorporated into this Agreement by reference, which means that this Agreement
        is limited by and subject to the express terms and provisions of the Plan.
        In
        the event of a conflict between the terms of this Agreement and the terms
        of the
        Plan, the terms of the Plan shall control. Capitalized terms that are not
        defined in this Agreement have the meanings given to them in the Plan. The
        more
        salient terms of the Award are summarized as follows:

    

    
      

    

    
      1.      Grant
        Date:                           July
        31,
        2007

    

    
      

    

    
      2.      Number
        of Restricted
        Shares Subject to this Award:                    21,673

    

    
      

    

    
      3.      Restricted
        Period.  Restricted
        Shares
        awarded hereunder shall vest based upon the following
        schedule:

    

    
      

    

    
      	
              Anniversary

            	
              Percentage
                of

              Restricted
                Shares for

              which
                restrictions

              will
                lapse

            	
              Aggregate
                Percentage of

              Restricted
                Shares for which

              restrictions
                shall have lapsed

            
	
              First
                Anniversary

            	
              6.67%

            	
              6.67%

            
	
              Second

              Anniversary

            	
              13.34%

            	
              20.01%

            
	
              Third
                Anniversary

            	
              20.01%

            	
              40.02%

            
	
              Fourth

              Anniversary

            	
              26.68%

            	
              66.70%

            
	
              Fifth
                Anniversary

            	
              33.30%

            	
              100.00%

            

    

    
      

    

    
      provided,
        however, that
        notwithstanding the foregoing, the "Restricted Period" (as defined below)
        shall
        earlier lapse and such Restricted Shares shall vest and become unrestricted
        upon
        your death or Permanent Disability. As used herein, the term "Restricted
        Period"
        means the first to occur of: (a) your death; (b) your Permanent Disability;
        or
        (c) the expiration of the aforementioned Restricted Period expiration dates.
        During the Restricted Period, the Restricted Shares awarded to you pursuant
        to
        this Agreement shall not be sold, assigned, transferred or otherwise disposed
        of, or mortgaged, pledged or otherwise encumbered except as provided in this
        Agreement or in the Plan.

    

    
       

      4.      Termination.  All
        Restricted
        Shares granted under this Agreement shall terminate upon the termination
        of your
        status as an Employee of the Company and its Affiliates at any time during
        the
        Restricted Period for any reason other than your death or Permanent
        Disability.

    

    
       

      5.      Rights
        as a
        Stockholder.  Restricted
        Shares, when issued, will be represented by a stock certificate or certificates
        registered in your name. If requested by the Company, such certificate shall
        bear a legend in substantially the following form:

    

    
      

    

    
      "The
        shares represented by this certificate are subject to the terms and conditions
        (including forfeiture and restrictions against transfer) contained in the
        LMI
        Aerospace, Inc. 2005 Long-Term Incentive Plan. A copy of such Plan is on
        file in
        the office of LMI Aerospace, Inc."

    

    
       

      You
        will deposit such
        certificates with the Company or its designee, together with stock powers
        or
        other instruments of assignment, each endorsed in blank, which will permit
        transfer to the Company of all or any portion of the Restricted Shares that
        shall have been forfeited. The Restricted Shares shall constitute issued
        and
        outstanding shares of Common Stock for all corporate purposes other than
        the
        right to receive and retain dividends or other distributions in respect of
        such
        shares ("Retained Distributions"). You will have the right to vote such
        Restricted Shares and to exercise all other rights, powers and privileges
        of a
        holder of Common Stock with respect to such shares, with the exception that
        (i)
        you will not be entitled to delivery of the stock certificate or certificates
        representing such Restricted Shares until the Restricted Period shall have
        expired and unless all other vesting requirements with respect thereto shall
        have been fulfilled; (ii) the Company will retain custody of the stock
        certificate or certificates representing the Restricted Stock during the
        Restricted Period; (iii) the Company will retain custody of all distributions
        made or declared in respect of the Restricted Shares (and such Retained
        Distributions will be subject to the same restrictions, terms and conditions
        as
        are applicable to the Restricted Shares until such time, if ever, as the
        Restricted Shares with respect to which such Retained Distributions shall
        have
        been made, paid or declared shall have become vested, and such Retained
        Distributions shall not bear interest or be segregated in separate accounts);
        (iv) you may not sell, assign, transfer or otherwise dispose of, or mortgage,
        pledge, or otherwise encumber any Restricted Shares or any Retained
        Distributions during the Restricted Period; and (v) a breach of any
        restrictions, terms or conditions provided in the Plan or established by
        the
        Committee with respect to any Restricted Shares or
        Retained
        Distributions will cause a forfeiture of such Restricted Shares and any Retained
        Distributions with respect
        thereto.

    

    
       

      6.      Termination
        of
        Restricted Period.  Upon
        the
        termination of the Restricted Period (whether by the expiration or earlier
        termination thereof as provided in paragraph 3) with respect to your Restricted
        Shares and the satisfaction of any other applicable restrictions, terms and
        conditions, all Restricted Shares issued to you and any Retained Distributions
        with respect to such Restricted Shares shall become vested and no longer
        subject
        to forfeiture. The Company shall promptly thereafter issue and deliver to
        you
        new stock certificates or instruments representing the Restricted Shares
        and
        other distributions registered in your name or, if deceased or disabled,
        your
        legatee, personal representative or distributee, which do not contain the
        legend
        set forth in Section 5 hereof.

    

    
       

      7.      Beneficiary
        Designation. You
        may designate a
        beneficiary for each outstanding grant of Restricted Shares in the event
        of your
        death. If no beneficiary is designated or the beneficiary does not survive
        you,
        the award shall be made to your surviving spouse, or, if there is none, to
        your
        estate.

    

    
       

      8.      Section
        83(b)
        Election.  
If
        you decide to
        file an election with the Internal Revenue Service to include the Fair Market
        Value of any of your Restricted Shares awarded hereunder in your gross income
        as
        of the date of this Award, you shall promptly furnish to the Company a copy
        of
        such election, together with the amount of any federal, state, local or other
        taxes required to be withheld, to enable the Company to claim an income tax
        deduction with respect to such election.

    

    
      

    

    
      9.      Taxes.

    

    
      

    

    
      (a)  Generally.
        You are ultimately
        liable and responsible for all taxes owed in connection with the Award,
        regardless of any action the Company or any of its subsidiaries takes with
        respect to any tax withholding obligations that arise in connection with
        the
        Award. Neither the Company nor any of its subsidiaries makes any representation
        or undertaking regarding the treatment of any tax withholding in connection
        with
        the grant or vesting of the Award or the subsequent sale of Shares after
        the
        Restricted Shares has vested. The Company and its subsidiaries do not commit
        and
        are under no obligation to structure the Award to reduce or eliminate your
        tax
        liability.

    

    
      

    

    
      (b)  Payment
        of Withholding Taxes.
        Unless you have filed a Section 83(b) election, the vesting of Restricted
        Shares
        will trigger a taxable event. Prior to the occurrence of vesting, you must
        arrange for the satisfaction of the minimum amount of such tax, whether federal,
        state or local, including any social security tax obligation ("Tax Withholding
        Obligation") in a manner acceptable to the Company.

    

    
      

    

    
      You
        may satisfy your Tax
        Withholding Obligation by:

    

    
      

    

    
      (i)  delivering
        of a certified
        check payable to the Company, c/o the Corporate Secretary, at the address
        specified in Section 12, or such other address as the Company may from time
        to
        time direct; or

    

    
      

    

    
      (ii)  electing
        in writing to have
        the Company retain that number of Shares having a Fair Market Value equal
        to the
        minimum amount required to be withheld (rounded downward to the nearest whole)
        determined on the applicable Vest Date; or

    

    
      

    

    
      (iii)         such
        other means as the
        Committee may permit;

    

    
      

    

    
      provided,
        however, that if
        you do not elect the means by which you will satisfy your Tax Withholding
        Obligation within five business days following the date upon which the
        Restricted Shares vest, the Company may satisfy this obligation by any means
        reasonable, including automatic deduction from your check (s) for
        compensation.

    

    
       

      10.           Registration.  The
        Company
        currently has an effective registration statement on file with the Securities
        and Exchange Commission with respect to your Restricted Shares. The Company
        intends to maintain this registration but has no obligation to do so. If
        the
        registration ceases to be effective, you will not be able to transfer or
        sell
        shares even after the restrictions lapse unless exemptions from registration
        under applicable securities laws are available. Such exemptions from
        registration are limited and might be unavailable. You agree that any resale
        by
        you of Shares shall comply in all respects with the requirements of all
        applicable securities laws, rules and regulations (including, without
        limitation, the provisions of the Securities Act, the Exchange Act and the
        respective rules and regulations promulgated thereunder) and any other law,
        rule
        or regulation applicable thereto, as such laws, rules and regulations may
        be
        amended from time to time. The Company shall not be obligated to either issue
        Restricted Shares or permit the resale of any shares following vesting, if
        such
        issuance or resale would violate any such
        requirements.

    

    
       

      11.           Limitation
        on Rights;
        No Right to Future Grants.  By
        entering into
        this Agreement and accepting the Award, you acknowledge that: (a) the Plan
        is
        discretionary and may be modified, suspended or terminated by the Board at
        any
        time as provided in the Plan; (b) the grant of the Award is a one-time benefit
        and does not create any contractual or other right to receive future grants
        of
        awards or benefits in lieu of awards; (c) all determinations with respect
        to any
        such future grants, including, but not limited to, the times when awards
        will be
        granted, the number of shares of Common Stock subject to each award, the
        award
        price, if any, and the time or times when each award will be settled, will
        be at
        the sole discretion of the Company; (d) your participation in the Plan is
        voluntary; (e) the Award is not part of normal or expected compensation for
        any
        purpose, including without limitation for calculating any benefits, severance,
        resignation, termination, redundancy, end of service payments, bonuses,
        long-term service awards, pension or retirement benefits or similar payments;
        (f) the future value of the common stock subject to the Award is unknown
        and
        cannot be predicted with certainty; and (g) neither the Plan, the Award nor
        the
        issuance of the Restricted Shares confers upon you any right to any relationship
        with the Company or any subsidiary other than as expressly provided hereby
        or
        thereby.

    

    
       

      12.           Execution
        of Award
        Agreement.  Please
        acknowledge your acceptance of the terms and conditions of the Award by signing
        the original of this Agreement and returning it to the Corporate Secretary
        of
        the Company at the principal corporate offices of the Company at 411 Fountain
        Lake Boulevard, St. Charles, Missouri 63301. If you do not sign and return
        this
        Agreement, the Company is not obligated to provide you any benefit hereunder
        and
        may refuse to issue Restricted Shares to you.

    

    
       

      13.           Governing
        Law.  The
        validity,
        construction, and effect of this Agreement and any rules and regulations
        relating to this Agreement, shall be determined in accordance with the internal
        laws, and not the law of conflicts, of the State of
        Missouri.

    

    
       

      14.           Rights
        and Remedies
        Cumulative.  All
        rights and
        remedies of the Company and you enumerated in this Agreement shall be cumulative
        and, except as expressly provided otherwise in this Agreement, none shall
        exclude any other rights or remedies allowed by law or in equity, and each
        of
        said rights or remedies may be exercised and enforced
        concurrently.

    

    
      

    

    
      15.           Headings.  Headings
        are
        given to the sections and subsections of this Agreement solely as a convenience
        to facilitate reference. Such headings shall not be deemed in any way material
        or relevant to the construction-or interpretation of this Agreement or any
        provision thereof.

    

    
       

      16.           Entire
        Agreement.  This
        Agreement
        and the Plan constitute the entire agreement between the Company and you
        in
        respect of the subject matter of this Agreement, and this Agreement supersedes
        all prior and contemporaneous agreements between the parties hereto in
        connection with the subject matter of this Agreement. No officer, employee
        or
        other servant or agent of the Company, and no servant or agent of you is
        authorized to make any representation, warranty or other promise not contained
        in this Agreement. No change, termination or attempted waiver of any of the
        provisions of this Agreement shall be binding upon any party hereto unless
        contained in a writing signed by the party to be
        charged.

    

    
       

      17.           Successors
        and
        Assigns.  At
        the option of
        the Company, the rights of the Company under this Agreement may be transferable
        to any one or more persons or entities, and all covenants and agreements
        hereunder so transferred shall inure to the benefit of, and be enforceable
        by,
        such transferees.

    

    
      

    

    
      	 	
              Very
                truly
                yours,

            
	 	 
	 	
              LMI
                AEROSPACE,
                INC.

            
	 	 
	 	 
	 	
              By:

            	 /s/
              Lawrence E. Dickinson
	 	
              Name:

            	
              Lawrence
                E. Dickinson

            
	 	
              Title:

            	
              Chief
                Financial Officer
                and Secretary

            
	 	
              Facsimile:

            	
              (636)
                949-1576

            

    

    
      

    

    
      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      ACCEPTANCE
        AND
        ACKNOWLEDGMENT

    

    
      

       

      I,
        a resident of __________________
        (state,
        or
        country if other than U.S.), accept and agree to the terms of the Award described
        in this
        Agreement and in the Plan, acknowledge receipt of a copy of this Agreement,
        the
        Plan and the
        applicable Plan Summary, and acknowledge that I have read them carefully
        and
        that I fully understand their contents.

    

    
      

    

    
      

    

    
      	
              
                Dated:

              

            
	 	 

    

    
      

    

    
      

    

    
      	 	 	 
	
              Taxpayer
                I.D.
                Number

            	
              Participant

            
	 	 
	 	
              Address:

            
	 	 
	 	 
	 	 
	 	
              Facsimile
                No.:Exhibit 10.1

    WELLSTAR
      INTERNATIOANL, INC.

    2007
      COMPENSATION PLAN

    

    

    This
      Wellstar International, Inc. 2007
      COMPENSATION PLAN
      (the
      "Plan")
      is
      designed to retain non-executive employees, consultants, and advisors
      (“Participants) and reward them for making major contributions to the success
      of
      the Company. These objectives are accomplished by making long-term incentive
      awards under the Plan thereby providing Participants with a proprietary interest
      in the growth and performance of the Company.

    

    
      	1.  	
              Definitions.

            

    

    

    
      	(a)  	
              "Board"
                -
                The Board of Directors of the
                Company.

            

    

    

    
      	(b)  	
              "Code"
                -
                The Internal Revenue Code of 1986, as amended from time to
                time.

            

    

    

    
      	(c)  	
              "Committee"
                -
                The Compensation Committee of the Company's Board, or such other
                committee
                of the Board that is designated by the Board to administer the Plan,
                composed of not less than two members of the Board all of whom are
                disinterested persons, as contemplated by Rule 16b-3 ("Rule
                16b-3")
                promulgated under the Securities Exchange Act of 1934, as amended
                (the
                "Exchange
                Act").

            

    

    

    
      	(d)  	
              "Company"
                -
                Wellstar International, Inc. and its
                subsidiaries.

            

    

    

    
      	(e)  	
              "Exchange Act"
                -
                The Securities Exchange Act of 1934, as amended from time to
                time.

            

    

    

    
      	(f)  	
              "Fair
                Market Value"
                -
                The fair market value of the Company's issued and outstanding Stock
                as
                determined in good faith by the Board or
                Committee.

            

    

    

    
      	(g)  	
              "Grant"
                -
                The grant of any stock award to a Participant pursuant to such terms,
                conditions and limitations as the Committee may establish in order
                to
                fulfill the objectives of the Plan.

            

    

    

    
      	(h)  	
              "Grant
                Agreement"
                -
                An agreement between the Company and a Participant that sets forth
                the
                terms, conditions and limitations applicable to a
                Grant.

            

    

    

    
      	(i)  	
              "Participant"
                -
                Non-executive employees and outside consultants, advisors, professional
                and service providers of the Company to whom an Award has been made
                under
                the Plan.

            

    

    

    
      	(j)  	
              "Securities
                Act"
                -
                The Securities Act of 1933, as amended from time to
                time.

            

    

    

    
      	(k)  	
              "Stock"
                -
                Authorized and issued or unissued shares of common stock of the
                Company.

            

    

    

    
      	(l)  	
              "Stock
                Award"
                -
                A Grant made under the Plan in stock or denominated in units of stock
                for
                which the Participant is not obligated to pay additional
                consideration.

            

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	2.  	
              Administration.

            

    

    The
      Plan
      shall be administered by the Board, provided however, that the Board may
      delegate such administration to the Committee. Subject to the provisions of
      the
      Plan, the Board and/or the Committee shall have authority to (a) grant, in
      its
      discretion, Stock Awards; (b) determine in good faith the fair market value
      of
      the Stock covered by any Grant; (c) determine which eligible persons shall
      receive Grants and the number of shares, restrictions, terms and conditions
      to
      be included in such Grants; (d) construe and interpret the Plan; (e) promulgate,
      amend and rescind rules and regulations relating to its administration, and
      correct defects, omissions and inconsistencies in the Plan or any Grant; (f)
      consistent with the Plan and with the consent of the Participant, as
      appropriate, amend any outstanding Grant; (g) determine the duration and purpose
      of leaves of absence which may be granted to Participants without constituting
      termination of their engagement for the purpose of the Plan or any Grant; and
      (h) make all other determinations necessary or advisable for the Plan's
      administration. The interpretation and construction by the Board of any
      provisions of the Plan or selection of Participants shall be conclusive and
      final. No member of the Board or the Committee shall be liable for any action
      or
      determination made in good faith with respect to the Plan or any Grant made
      thereunder.

    

    
      	3.  	
              Eligibility.

            

    

    

    The
      persons who shall be eligible to receive Grants shall be non-executive
      employees, consultants, and advisors to the Company. The term consultant shall
      mean any person, other than an employee, who is engaged by the Company to render
      services and is compensated for such services.

    

    
      	4.  	
              Stock.

            

    

    

    
      	(a)  	
              Authorized
                Stock:
                Stock subject to Grants may be either unissued or reacquired
                Stock.

            

    

    

    
      	(b)  	
              Number
                of Shares:
                The total number of shares of Stock which may be purchased or granted
                directly by Stock Awards granted under the Plan shall not
                exceed Eight Million Five Hundred Thousand (8,500,000) shares. If any
                Grant shall for any reason terminate or expire, any shares allocated
                thereto but remaining unvested shall again be available for Grants
                with
                respect thereto under the Plan as though no Grant had previously
                occurred
                with respect to such shares. Any shares of Stock issued pursuant
                to a
                Grant and repurchased pursuant to the terms thereof shall be available
                for
                future Grants as though not previously covered by a
                Grant.

            

    

    

    
      	(c)  	
              Reservation
                of Shares:
                The Company shall reserve and keep available at all times during
                the term
                of the Plan such number of shares as shall be sufficient to satisfy
                the
                requirements of the Plan. If, after reasonable efforts, which efforts
                shall not include the registration of the Plan or Grants under the
                Securities Act, the Company is unable to obtain authority from any
                applicable regulatory body, which authorization is deemed necessary
                by
                legal counsel for the Company for the lawful issuance of shares hereunder,
                the Company shall be relieved of any liability with respect to its
                failure
                to issue and sell the shares for which such requisite authority was
                so
                deemed necessary unless and until such authority is
                obtained.

            

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	5.  	
              Stock
                Awards.

            

    

    

    All
      or
      part of any Stock Award under the Plan may be subject to conditions established
      by the Board or the Committee, and set forth in a Stock Award Agreement, which
      may include, but are not limited to, continuous service with the Company,
      achievement of specific business objectives, increases in specified indices,
      attaining growth rates and other comparable measurements of Company performance.
      Such Awards may be based on Fair Market Value or other specified valuation.
      All
      Stock Awards will be made pursuant to the execution of a Stock Award
      Agreement.

    

    
      	(a)  	
              Conditions
                and Restrictions.
                Shares of Stock which Participants may receive as a Stock Award under
                a
                Stock Award Agreement may include such restrictions as the Board
                or
                Committee, as applicable, shall determine, including restrictions
                on
                transfer, repurchase rights, right of first refusal, and forfeiture
                provisions. When transfer of Stock is so restricted or subject to
                forfeiture provisions it is referred to as "Restricted
                Stock."
                Further, with Board or Committee approval, Stock Awards may be deferred,
                either in the form of installments or a future lump sum distribution.
                The
                Board or Committee may permit selected Participants to elect to defer
                distributions of Stock Awards in accordance with procedures established
                by
                the Board or Committee to assure that such deferrals comply with
                applicable requirements of the Code including, at the choice of
                Participants, the capability to make further deferrals for distribution
                after retirement. Any deferred distribution, whether elected by the
                Participant or specified by the Stock Award Agreement or by the Board
                or
                Committee, may require the payment be forfeited in accordance with
                the
                provisions of Section 5(b). .Dividends or dividend equivalent rights
                may
                be extended to and made part of any Stock Award, subject to such
                terms,
                conditions and restrictions as the Board or Committee may
                establish.

            

    

    

    
      	(b)  	
              Cancellation
                and Rescission of Grants.
                Unless the Stock Award Agreement specifies otherwise, the Board or
                Committee, as applicable, may cancel any unvested or deferred Grants
                at
                any time if the Participant is not in compliance with all other applicable
                provisions of the Stock Award Agreement, the Plan and with the following
                conditions:

            

    

    

    
      	(i)  	
              A
                Participant shall not render services for any organization or engage
                directly or indirectly in any business which, in the judgment of
                the chief
                executive officer of the Company or other senior officer designated
                by the
                Board or Committee, is or becomes competitive with the Company, or
                which
                organization or business, or the rendering of services to such
                organization or business, is or becomes otherwise prejudicial to
                or in
                conflict with the interests of the Company. For Participants whose
                engagement has terminated, the judgment of the chief executive officer
                shall be based on the Participant's position and responsibilities
                while
                employed by the Company, the Participant's post-engagement
                responsibilities and position with the other organization or business,
                the
                extent of past, current and potential competition or conflict between
                the
                Company and the other organization or business, the effect on the
                Company's customers, suppliers and competitors and such other
                considerations as are deemed relevant given the applicable facts
                and
                circumstances. A Participant who has retired shall be free, however,
                to
                purchase as an investment or otherwise, stock or other securities
                of such
                organization or business so long as they are listed upon a recognized
                securities exchange or traded over-the-counter, and such investment
                does
                not represent a substantial investment to the Participant or a greater
                than five percent (5%) equity interest in the organization or
                business.

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	(ii)  	
              A
                Participant shall not, without prior written authorization from the
                Company, disclose to anyone outside the Company, or use in other
                than the
                Company's business, any confidential information or material relating
                to
                the business of the Company, acquired by the Participant either during
                or
                after engagement with the Company. 

            

    

    

    
      	(iii)  	
              A
                Participant shall disclose promptly and assign to the Company all
                right,
                title and interest in any invention or idea, patentable or not, made
                or
                conceived by the Participant during engagement by the Company, relating
                in
                any manner to the actual or anticipated business, research or development
                work of the Company and shall do anything reasonably necessary to
                enable
                the Company to secure a patent where appropriate in the United States
                and
                in foreign countries.

            

    

    

    
      	(iv)  	
              Upon
                exercise, payment or delivery pursuant to a Grant, the Participant
                shall
                certify on a form acceptable to the Committee that he or she is in
                compliance with the terms and conditions of the Plan.
                

            

    

    

    
      	(c)  	
              Nonassignability.

            

    

    

    
      	(i)  	
              Except
                as set forth in Section 5(c)(ii), no Grant or any other benefit under
                the
                Plan shall be assignable or transferable, or payable to, anyone other
                than
                the Participant to whom it was
                granted.

            

    

    

    
      	(ii)  	
              Where
                a Participant terminates engagement and retains a Grant pursuant
                to
                Section 5(d)(ii) in order to assume a position with a governmental,
                charitable or educational institution, the Board or Committee, in
                its
                discretion and to the extent permitted by law, may authorize a third
                party
                (including but not limited to the trustee of a "blind" trust), acceptable
                to the applicable governmental or institutional authorities, the
                Participant and the Board or Committee, to act on behalf of the
                Participant with regard to such
                Awards.

            

    

    

    
      	(d)  	
              Termination
                of Engagement.
                If
                the engagement or service to the Company of a Participant terminates,
                other than pursuant to any of the following provisions under this
                Section
                5(d), all unvested or deferred Stock Awards shall be cancelled
                immediately, unless the Stock Award Agreement provides otherwise:
                

            

    

    

    
      	(i)  	
              Retirement
                Under a Company Retirement Plan.
                When a Participant's engagement terminates as a result of retirement
                in
                accordance with the terms of a Company retirement plan, the Board
                or
                Committee may permit Stock Awards to continue in effect beyond the
                date of
                retirement in accordance with the applicable Grant Agreement and
                vesting
                of any such Grants may be
                accelerated.

            

    

    

    
      	(ii)  	
              Rights
                in the Best Interests of the Company.
                When a Participant resigns from the Company and, in the judgment
                of the
                Board or Committee, the acceleration and/or continuation of outstanding
                Stock Awards would be in the best interests of the Company, the Board
                or
                Committee may (i) authorize, where appropriate, the acceleration
                and/or
                continuation of all or any part of Grants issued prior to such termination
                and (ii) permit the vesting of such Grants for such period as may
                be set
                forth in the applicable Grant Agreement, subject to earlier cancellation
                at such time as the Board or Committee shall deem the continuation
                of all
                or any part of the Participant's Grants are not in the Company's
                best
                interest.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    
      	(iii)  	
              Death
                or Disability of a Participant. 

            

    

    

    
      	(1)  	
              In
                the event of a Participant's death, the Participant's estate or
                beneficiaries shall have a period up to the expiration date specified
                in
                the Grant Agreement within which to receive or exercise any outstanding
                Grant held by the Participant under such terms as may be specified
                in the
                applicable Grant Agreement. Rights to any such outstanding Grants
                shall
                pass by will or the laws of descent and distribution in the following
                order: (a) to beneficiaries so designated by the Participant; if
                none,
                then (b) to a legal representative of the Participant; if none, then
                (c)
                to the persons entitled thereto as determined by a court of competent
                jurisdiction. Grants so passing shall be made at such times and in
                such
                manner as if the Participant were
                living.

            

    

    

    
      	(2)  	
              In
                the event a Participant is deemed by the Board or Committee to be
                unable
                to perform his or her usual duties by reason of mental disorder or
                medical
                condition which does not result from facts which would be grounds
                for
                termination for cause, Grants and rights to any such Grants may be
                paid to
                the Participant, if legally competent, or a committee or other legally
                designated guardian or representative if the Participant is legally
                incompetent by virtue of such
                disability.

            

    

    

    
      	(3)  	
              After
                the death or disability of a Participant, the Board or Committee
                may in
                its sole discretion at any time (1) terminate restrictions in Grant
                Agreements; (2) accelerate any or all installments and rights; and
                (3)
                instruct the Company to pay the total of any accelerated payments
                in a
                lump sum to the Participant, the Participant's estate, beneficiaries
                or
                representative; notwithstanding that, in the absence of such termination
                of restrictions or acceleration of payments, any or all of the payments
                due under the Grant might ultimately have become payable to other
                beneficiaries.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    
      	(4)  	
              In
                the event of uncertainty as to interpretation of or controversies
                concerning this Section 5, the determinations of the Board or Committee,
                as applicable, shall be binding and
                conclusive.

            

    

    

    
      	6.  	
              Investment
                Intent. All Grants under the Plan are intended to be exempt from
                registration under the Securities Act provided by Rule 701 thereunder.
                Unless and until the sale and issuance of Stock subject to the Plan
                are
                registered under the Securities Act or shall be exempt pursuant to
                the
                rules promulgated thereunder, each Grant under the Plan shall provide
                that
                the purchases or other acquisitions of Stock thereunder shall be
                for
                investment purposes and not with a view to, or for resale in connection
                with, any distribution thereof. Further, unless the issuance and
                sale of
                the Stock have been registered under the Securities Act, each Grant
                shall
                provide that no shares shall be purchased upon the exercise of the
                rights
                under such Grant unless and until (i) all then applicable requirements
                of
                state and federal laws and regulatory agencies shall have been fully
                complied with to the satisfaction of the Company and its counsel,
                and (ii)
                if requested to do so by the Company, the person exercising the rights
                under the Grant shall (i) give written assurances as to knowledge
                and
                experience of such person (or a representative employed by such person)
                in
                financial and business matters and the ability of such person (or
                representative) to evaluate the merits and risks of receiving the
                Stock as
                compensation, and (ii) execute and deliver to the Company a letter
                of
                investment intent and/or such other form related to applicable exemptions
                from registration, all in such form and substance as the Company
                may
                require. If shares are issued upon exercise of any rights under a
                Grant
                without registration under the Securities Act, subsequent registration
                of
                such shares shall relieve the purchaser thereof of any investment
                restrictions or representations made upon the exercise of such
                rights.

            

    

    

    
      	7.  	
              Amendment,
                Modification, Suspension or Discontinuance of the Plan. The Board
                may,
                insofar as permitted by law, from time to time, with respect to any
                shares
                at the time not subject to outstanding Grants, suspend or terminate
                the
                Plan or revise or amend it in any respect whatsoever, except that
                without
                the approval of the shareholders of the Company, no such revision
                or
                amendment shall (i) increase the number of shares subject to the
                Plan,
                (ii) decrease the price at which Grants may be granted, (iii) materially
                increase the benefits to Participants, or (iv) change the class of
                persons
                eligible to receive Grants under the Plan; provided, however, no
                such
                action shall alter or impair the rights and obligations under any
                Stock
                Award outstanding as of the date thereof without the written consent
                of
                the Participant thereunder. No Grant may be issued while the Plan
                is
                suspended or after it is terminated, but the rights and obligations
                under
                any Grant issued while the Plan is in effect shall not be impaired
                by
                suspension or termination of the
                Plan.

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    In
      the
      event of any change in the outstanding Stock by reason of a stock split, stock
      dividend, combination or reclassification of shares, recapitalization, merger,
      or similar event, the Board or the Committee may adjust proportionally (a)
      the
      number of shares of Stock (i) reserved under the Plan, (ii) covered by
      outstanding Stock Awards; (b) the Stock prices related to outstanding Grants;
      and (c) the appropriate Fair Market Value and other price determinations for
      such Grants. In the event of any other change affecting the Stock or any
      distribution (other than normal cash dividends) to holders of Stock, such
      adjustments as may be deemed equitable by the Board or the Committee, including
      adjustments to avoid fractional shares, shall be made to give proper effect
      to
      such event. In the event of a corporate merger, consolidation, acquisition
      of
      property or stock, separation, reorganization or liquidation, the Board or
      the
      Committee shall be authorized to issue or assume stock options, whether or
      not
      in a transaction to which Section 424(a) of the Code applies, and other Grants
      by means of substitution of new Grant Agreements for previously issued Grants
      or
      an assumption of previously issued Grants.

    

    
      	8.  	
              Tax
                Withholding. The Company shall have the right to deduct applicable
                taxes
                from any Grant payment and withhold, at the time of delivery or exercise
                of Stock Awards or vesting of shares under such Grants, an appropriate
                number of shares for payment of taxes required by law or to take
                such
                other action as may be necessary in the opinion of the Company to
                satisfy
                all obligations for withholding of such taxes. If Stock is used to
                satisfy
                tax withholding, such stock shall be valued based on the Fair Market
                Value
                when the tax withholding is required to be made.
                

            

    

     

    
      	9.  	
              Availability
                of Information. During the term of the Plan and any additional period
                during which a Grant granted pursuant to the Plan shall be payable,
                the
                Company shall make available, not later than one hundred and twenty
                (120)
                days following the close of each of its fiscal years, such financial
                and
                other information regarding the Company as is required by the bylaws
                of
                the Company and applicable law to be furnished in an annual report
                to the
                shareholders of the Company. 

            

    

     

    
      	10.  	
              Notice.
                Any written notice to the Company required by any of the provisions
                of the
                Plan shall be addressed to the chief personnel officer or to the
                chief
                executive officer of the Company, and shall become effective when
                it is
                received by the office of the chief personnel officer or the chief
                executive officer. 

            

    

    

    
      	11.  	
              Indemnification
                of Board. In addition to such other rights or indemnifications as
                they may
                have as directors or otherwise, and to the extent allowed by applicable
                law, the members of the Board and the Committee shall be indemnified
                by
                the Company against the reasonable expenses, including attorneys'
                fees,
                actually and necessarily incurred in connection with the defense
                of any
                claim, action, suit or proceeding, or in connection with any appeal
                thereof, to which they or any of them may be a party by reason of
                any
                action taken, or failure to act, under or in connection with the
                Plan or
                any Grant granted thereunder, and against all amounts paid by them
                in
                settlement thereof (provided such settlement is approved by independent
                legal counsel selected by the Company) or paid by them in satisfaction
                of
                a judgment in any such claim, action, suit or proceeding, except
                in any
                case in relation to matters as to which it shall be adjudged in such
                claim, action, suit or proceeding that such Board or Committee member
                is
                liable for negligence or misconduct in the performance of his or
                her
                duties; provided that within sixty (60) days after institution of
                any such
                action, suit or Board proceeding the member involved shall offer
                the
                Company, in writing, the opportunity, at its own expense, to handle
                and
                defend the same. 

            

    

     

    
      	12.  	
              Governing
                Law. The Plan and all determinations made and actions taken pursuant
                hereto, to the extent not otherwise governed by the Code or the securities
                laws of the United States, shall be governed by the law of the State
                of
                Delaware and construed accordingly.

            

    

    

     

    [SIGNATURE
      PAGE FOLLOWS]

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

 

    The
      foregoing 2007
      COMPENSATION PLAN
      (consisting of 8 pages, including this page) was duly adopted and approved
      by
      the Board of Directors on August 6, 2007.

     

    
      	 	 	 
	 	
              Wellstar
                International, Inc.

              a
                Nevada corporation

            
	 
 	 
 	 
 
	 	By:  	/s/ John
              Antonio
	 	
              
                

              

              By:
                John Antonio

              Title:
                Chief Executive Officer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00127-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00127-of-00352.parquet"}]]