Document:

Consulting Agreement dated May 26, 2005

 

EXHIBIT 10.1

CONSULTING AGREEMENT

     THIS CONSULTING AGREEMENT, dated as of May 26, 2005 (the “Agreement”), between Dycom
Industries, Inc., a Florida corporation, which includes any and all of its subsidiaries or
affiliates (collectively, the “Company”) and Michael K. Miller (the “Executive”).

     WHEREAS, the Executive is currently employed by the Company;

     WHEREAS, the Company and the Executive have agreed that the Executive will become a consultant
to the Company, effective as of July 11, 2005;

     WHEREAS, the parties intend that this Agreement shall set forth the terms regarding the
Executive’s consulting services to the Company; and

     NOW, THEREFORE, in consideration of the covenants and agreements hereinafter set forth in this
Agreement, the parties hereto hereby agree as follows:

     1. Consulting Engagement.

     (a) General. The Executive and the Company agree that as of July 10, 2005 (the
“Effective Date”) the Company will engage the Executive as a consultant, and the Executive hereby
accepts such engagement with the Company, for the period set forth in Section 1(b) of this
Agreement in accordance with the terms and conditions hereof. The Company and the Executive agree
that, effective as of the Effective Date, the Executive shall cease to be an employee of the
Company and will have no offices, positions and capacities with the Company.

     (b) Consulting Period. The period during which the Executive shall be engaged as a
consultant by the Company (the “Consulting Period”) shall commence on the Effective Date and end on
March 11, 2006.

     (c) Consulting Services. The Executive shall provide consulting services to the
Company on a non-exclusive basis. During the Consulting Period, the Executive agrees to make
himself available to the Company at such times (taking reasonable account of the Executive’s other
time commitments) and places and in such manner as shall be reasonably determined by the Chief
Executive Officer of the Company. Notwithstanding the foregoing, in the event the Executive
obtains full time employment during the Consulting Period, the Executive will only be required to
make himself available the Company by telephone at such times (taking into account the Executive’s
other time commitments, including, without limitation, his duties to any subsequent employer) as
shall be mutually determined by the Chief Executive Officer of the Company and the Executive.

     (d) Consulting Fees. In consideration for the consulting services provided pursuant
to this Agreement, the Company shall pay the Executive an aggregate of $161,500, in substantially equal
installments for the period beginning on the Effective Date and ending on March 11, 2006.

 

 

Such payments shall be made as soon as practicable following the end of the month to which the
payment relates, but not later than fifteen (15) days following the end of such month.

     (e) COBRA Continuation Benefits. As of the Effective Date, the Executive shall be
eligible to continue participation under the Company’s group health insurance plan to the extent
permitted under Section 4980B(f) of the Internal Revenue Code of 1986, as amended (“COBRA”). The
Company shall reimburse the Executive for his COBRA premiums to the extent of the Company’s
contribution to the group health insurance plan premiums for then current employees of the Company,
until the earlier of (x) the date the Executive becomes eligible for group health insurance
coverage as the result of his accepting employment with a subsequent employer or (y) June 11, 2006.
The Executive agrees to give the Company notice within 10 business days following the date he
becomes eligible for group health insurance coverage with a subsequent employer.

     2. Termination of Prior Agreements and Understandings. Except as expressly provided
herein, as of the Effective Date, any written or oral agreements or understandings between the
Executive and the Company are void and of no further force and effect and this Agreement shall
supersede all prior agreements or understandings between the Executive and the Company.

     3. No Other Benefits. As of the Effective Date, the Executive shall not be eligible
to participate in any benefit plan or program for employees of the Company, including without
limitation any incentive, bonus or similar compensation plan or arrangement. Without limiting the
generality of the preceding sentence, the Executive acknowledges and agrees that in consideration
of the payments and benefits to be provided under this Agreement, the Executive shall not be
entitled to any other severance or similar benefits under any plan, program, policy or arrangement,
whether formal or informal, written or unwritten, of the Company, or to any other bonus or
incentive payment for the fiscal year ending July 30, 2005 or any other period.

     4. Return of Property. The Executive represents and warrants that on or prior to the
Effective Date he will return all property made available to him in connection with his service to
the Company to Richard Dunn, including, without limitation, credit cards, any and all records,
manuals, reports, papers and documents kept or made by the Executive in connection with his
employment as an officer or employee of the Company, all computer hardware or software, cellular
phones, files, memoranda, correspondence, vendor and customer lists, financial data, keys and
security access cards; provided, however, that, subject to the Executive’s
compliance with Section 6(a), he may retain his laptop computer.

     5. Covenants. (a) Confidential Information. The Executive shall not now, or at any
time, directly or indirectly, disclose to any person, entity or other organization or appropriate
for his own use or the use of others any confidential information, except as otherwise required by
applicable law and in accordance with this Section 5. For purposes of this Agreement,
“confidential information” means information concerning the business or financial affairs of the
Company which has not been disclosed publicly by the Company. Confidential information may
include, without limitation, client lists of the Company, its respective trade secrets and
technological know-how, confidential information about (or provided by) any customer or supplier,
or prospective or former customer or supplier, information concerning the

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business or financial affairs of the Company, including books and records, commitments,
procedures, plans and prospectus, strategies, or current or prospective transactions or business,
and any other “inside information”. In the event the Executive believes he is, or has reason to
believe he will be, required by any applicable law, discovery request and/or legal process to
disclose any confidential information (as herein defined) the Executive shall provide the Company’s
General Counsel with written notice as soon as practicable and, if possible, given the date of his
receipt of such discovery request and/or legal process, such notice shall be provided no less than
5 business days prior to any such disclosure.

     (b) Non-Solicitation. As a separate and independent covenant, the Executive agrees with the
Company that, during the 12-month period following the Effective Date, he will not in any way, directly or indirectly (i) call
upon, solicit, advise or otherwise do, or attempt to do, business with any person who is, or was,
during the then most recent 12-month period, a customer of the Company or (ii) solicit, induce,
hire, attempt to hire, interfere with or attempt to interfere with, any person who is, or was
during the then most recent 12-month period, an employee, officer, representative or agent of the
Company.

     (c) Remedies. (i) The Executive agrees that the breach by him of any of the covenants in this
Section 5 is likely to result in immediate and irreparable harm, directly or indirectly, to the
Company. The Executive, therefore, consent and agree that if he violates any of such covenants,
the Company shall be entitled, among and in addition to any other rights or remedies available
under this Agreement or at law or in equity, to temporary and permanent injunctive relief, without
bond or other security, to prevent the Executive from committing or continuing a breach of such
covenants. Such injunctive relief in any court shall be available to the Company, in lieu of, or
prior to or pending determination in, any arbitration proceeding.

     (ii) In addition, if the Executive breaches any of his obligations under this Section 5, in
addition to any other remedies available to the Company under this Agreement or at law or in
equity, the Company may, upon written notice to him, cease to make any payments or provide any
benefits that may otherwise be due to the Executive under this Agreement.

     (d) Enforcement. It is the desire, intent and agreement of the Executive and the Company that
the restrictions placed on him by this Section 5 be enforced to the fullest extent permissible
under the law and public policy applied by any jurisdiction in which enforcement is sought.
Accordingly, if and to the extent that any portion of this Section 6 shall be adjudicated to be
unenforceable, such portion shall be deemed amended to delete therefrom or to reform the portion
thus adjudicated to be invalid or unenforceable, such deletion or reformation to apply only with
respect to the operation of such portion in the particular jurisdiction in which such adjudication
is made.

     (e) Arbitration. Except with respect to the relief contemplated under Section 5 (d), any
controversy or claim arising out of or relating to this Agreement shall be resolved by arbitration
in Palm Beach County, Florida, in accordance with the rules then in effect of the American
Arbitration Association, and judgment upon the award rendered may be entered in any court having
jurisdiction thereon. The arbitrator(s) have the right and ability to award attorneys’ fees to the
prevailing party in any such arbitration proceeding.

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     (f) No Disparaging Comments. The Executive also agrees to refrain from making now or at any
time in the future any disparaging comment concerning the Company or any current or former
directors, officers or employees of the Company. In consideration thereof, the Company also agrees
to refrain from making now or at any time in the future any disparaging comment concerning the
Executive. For purposes of the foregoing covenant, a statement shall be attributable to the
Company if made or authorized by any of its senior corporate executives having the rank of Vice
President or higher or any member of the Board of Directors of the Company.

     6. Employee Satisfaction; Release. (a) Waiver. In recognition of such valuable
consideration provided pursuant to this Agreement, the Executive agrees to waive any and all
claims, actions and causes of action that he may have against the Company or any of its
subsidiaries or affiliates arising out of (i) his employment with the Company or his status as an
officer of the Company, or (ii) the termination of such employment and status. In recognition of
the consideration cited above, the Executive hereby forever releases and discharges the Company and
its present former and future directors, officers, employees, subsidiaries, affiliates, agents,
attorneys, heirs and assigns (the “Released Parties”) from any and all claims, actions, causes of
action suits, agreements, promises, damages, disputes, controversies and demands of any kind
whatsoever that the Executive have or may have or in the future possess or may possess with respect
to the Released Parties, including, but not limited to, any claims arising under Title VII of the
Civil Rights Act of 1964, the Rehabilitation Act of 1973, the Americans with Disabilities Act of
1990, the Civil Rights Act of 1866, the Civil Rights Act of 1991, the Employee Retirement Income
Security Act of 1974, the Older Workers Benefit Protection Act, the Family Medical Leave Act of
1993, or any other federal, state or local law, and in each case the applicable rules and
regulations promulgated thereunder, whether such claim arises under statute or common law and
whether or not the Executive is presently aware of the existence of such claim, damage, action or
cause of action, suit or demand (collectively, “Claims”), arising out of (y) his employment with
the Company or his status as an officer of the Company, or the termination of such employment and
status (including, without limitation, all claims related to the payment of compensation and
benefits and all claims arising under any Federal or state statute or regulation), or (z) any
event, condition, circumstance or obligation that occurred, existed or arose on or prior to the
date hereof; provided that this Section 6(a) shall not apply to any claims that arise out
of the Executive’s enforcement of his rights and obligations set forth in this Agreement (“Excluded
Claims”). By signing this Agreement, the Executive represents that he has been given the
opportunity to consult with the attorney(s) of his choice prior to signing this Agreement and to
have those attorney(s) explain the provisions of this Agreement to him, that the Executive has in
fact consulted an attorney and he has negotiated this Agreement on the Executive’s behalf, and that
the Executive has knowingly and voluntarily accepted the terms of the offer as described herein.
The Executive further agrees that the payments and benefits described in this Agreement will be in
full satisfaction of any and all claims for payments or benefits that he may have against the
Company arising out of his employment relationship and his service as an employee of the Company
and the termination thereof.

     (b) ADEA Waiver and Procedures. In addition to the release and waiver of claims contained
above and in recognition of the consideration recited above, the Executive specifically waives any
rights or claims he may have under the Age Discrimination in Employment Act of 1967 (“ADEA”),
against any of the Released Parties. As contemplated

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under ADEA, the Executive shall have up to 21 days from receipt of this Agreement to accept
its terms, although he may accept the Agreement at any time within those 21 days. The Company
hereby advises the Executive to consult with, and the Executive hereby acknowledges that he has
consulted with, his own personal legal counsel concerning any questions about the Agreement and he
has negotiated this Agreement on his behalf. This Agreement will not become effective or
enforceable until seven days following the date the Executive signs and returns it to the Company.
During that seven-day period, the Executive may rescind the Agreement by notifying the Company in
writing that he no longer wishes to enter into the Agreement, in which event the Company shall not
be required to provide him with any payment or benefit hereunder.

     (c) Not a Party to Litigation. The Executives agree that he has not, and will not, commence
or join any legal action, which term includes, without limitation, any demand for arbitration
proceedings and any complaint to any federal, state or local agency, court or other tribunal to
assert any Claim released by the Executive under Section 6(a) against the Company and its
subsidiaries or affiliates, except for any Excluded Claim. Except as permitted in the prior
sentence, if the Executive commences or joins any legal action against the Company, he agrees to
promptly indemnify the Company for its reasonable costs and attorneys fees incurred in defending
such action as well as any monetary judgment obtained by the Executive against the Company in such
action. Nothing in this Section 6(c) is intended to reflect any party’s belief that the
Executive’s waiver of claims under ADEA is invalid or unenforceable under this Agreement, it being
the intent of the parties that such claims are waived.

     7. Cooperation Obligation. The Executive shall make all reasonable and diligent
efforts to cooperate with the Company in connection with all pending, threatened or future claims,
actions, arbitrations, litigations, investigations, or inquiries by any state, federal, foreign or
private entity, directly or indirectly arising from or relating to any transaction, event or
activity the Executive was involved in, participated in, or had knowledge of, while at the Company
which have been or in the future may be asserted against any of the Released Parties. Such
cooperation shall include all reasonable assistance that the Company determines is necessary,
including, but not limited to, meeting or consulting with the Company and its counsel and their
designees, reviewing documents, analyzing facts and appearing or testifying as a witness or
interviewee or otherwise. The Executive agrees that he will provide such assistance and
cooperation in the manner and at the locations as shall be reasonably requested by the Company.
The Company agrees to reimburse the Executive in full for reasonable expenses incurred by him in
providing assistance and cooperation under this Section 7.

     8. Independent Contractor Status. As of the Effective Date, it is intended that the
Executive shall be an independent contractor, and that he shall not be an employee of the Company,
with respect to this Agreement and the services to be performed hereunder. Nothing contained in
this Agreement shall be construed to place the parties in the relationship of partners, joint
venturers or agent and principal, and no party shall have the power to obligate or bind the other
in any manner.

     9. Notices. All notices and other communications given or made pursuant hereto shall
be in writing and shall be deemed to have been duly given or made (a) if delivered by hand, upon
receipt, (b) if sent by telecopy or facsimile transmission, upon confirmation of receipt by the
sender of such transmission or (c) if mailed by registered or certified mail (postage

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prepaid, return receipt requested), on the fifth business day after mailed to the appropriate
party at the following address (or at such other address for a party as shall be specified by like
notice, except that notices of changes of address shall be effective upon receipt, such notice to
be provided as soon as practicable):

		
	          (a) 	if to the Company:

Dycom Industries, Inc.

4440 PGA Boulevard, Suite 500

Palm Beach Gardens, Florida 33410-6542

Fax: (561) 627-7709

		
	          (b) 	if to the Executive:

Mr. Michael K. Miller

253 DeSota Road

West Palm Beach, Florida 33450

     10. Withholding. The Executive shall be solely responsible for all taxes payable with
respect to the amounts to be received by the Executive pursuant to this Agreement. The amounts
paid to the Executive under this Agreement are not subject to any federal, state or local tax
withholdings. The Company shall not withhold any employment taxes from compensation it pays to the
Executive for services rendered under this Agreement. Rather, the Company shall report the amount
it pays the Executive on an IRS Form 1099, to the extent required under applicable Internal Revenue
Code provisions and state or local law.

     11. Governing Law. This Agreement will be subject to, and construed in accordance
with, the laws of the State of Florida.

     12. Successors. All obligations of the Company hereunder, including the Company’s
obligation to provide the Executive with the payments set forth in Section 3 herein shall inure to
the benefit of the Executive and his executors, heirs, beneficiaries, trustees, and/or legal
representatives.

     13. Severability. Each provision of this Agreement will be interpreted in such manner
as to be effective and valid under applicable law, but if any provision of this Agreement is held
to be prohibited by or invalid under applicable law, such provision will be ineffective only to the
extent of such prohibition or invalidity, without invalidating the remainder of such provision or
the remaining provisions of this Agreement.

     14. Headings. Section headings are used for convenience of reference only and shall
not affect the meaning of any provision of this Agreement.

     15. Drafting. No party or their counsel shall be deemed to have drafted this
Agreement, it being the intent of the parties that all parties be deemed to have participated
equally in its preparation.

     16. Execution. This Agreement may be signed in counterpart which when taken together
shall be deemed one and the same document.

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     The parties’ respective signature on the line below constitutes their agreement with each
provision contained herein.

	 	 	 	 	 
	 	DYCOM INDUSTRIES, INC.

 	 
	 	By:  	/s/  Richard L. Dunn

	 
	 	 	Name:  	Richard L. Dunn 	 
	 	 	Title:  	Senior Vice President and

Chief Financial Officer 	 
	 

ACCEPTED AND AGREED:

/s/ Michael K. Miller

Michael K. Miller

Dated: May 26, 2005

7<PAGE>

                                                                    EXHIBIT 10.1

                             LANVISION SYSTEMS, INC.

                        2005 INCENTIVE COMPENSATION PLAN

    (AS ADOPTED MARCH 24, 2005 BY THE BOARD OF DIRECTORS AND APPROVED BY THE
              STOCKHOLDERS AT THE ANNUAL MEETING ON MAY 25, 2005)

                                       1
<PAGE>

<TABLE>
<S>                                                            <C>
ARTICLE 1. ESTABLISHMENT, PURPOSE, AND DURATION                 3
         1.1.     Establishment of the Plan                     3
         1.2.     Purpose of the Plan                           3
         1.3.     Duration of the Plan                          4
ARTICLE 2. DEFINITIONS AND CONSTRUCTION                         4
         2.1.     Definitions                                   4
         2.2.     Gender and Number                             7
         2.3.     Severability                                  7
ARTICLE 3. ADMINISTRATION                                       8
         3.1.     Authority of the Committee.                   8
         3.2.     Decisions Binding                             8
         3.3.     Delegation of Certain Responsibilities        8
         3.4.     Procedures of the Committee                   9
         3.5.     Award Agreements                              9
         3.6.     Rule 16b-3 Requirements                       9
ARTICLE 4. STOCK SUBJECT TO THE PLAN                            9
         4.1.     Number of Shares                              9
         4.2.     Adjustments in Authorized Shares             10
ARTICLE 5. ELIGIBILITY AND PARTICIPATION                       10
         5.1.     Eligibility                                  10
         5.2.     Actual Participation                         10
ARTICLE 6. STOCK APPRECIATION RIGHTS                           10
         6.1.     Grant of Stock Appreciation Rights           10
         6.2.     Exercise of SARs                             11
         6.3.     Payment of SAR Amount                        11
         6.4.     Form of Payment                              11
         6.5.     Duration of SAR                              11
         6.6.     Termination of Employment or Service         11
         6.7.     Nontransferability of SARs                   11
ARTICLE 7. RESTRICTED STOCK                                    11
         7.1.     Grant of Restricted Stock                    11
         7.2.     Transferability                              11
         7.3.     Other Restrictions                           12
         7.4.     End of Period of Restriction                 12
         7.5.     Voting Rights                                12
         7.6.     Dividends and Other Distributions            12
         7.7.     Termination of Employment or Service         12
ARTICLE 8. OPTIONS                                             12
         8.1.     Grant of Options                             12
         8.2.     Option Award Agreement                       12
         8.3.     Option Price                                 12
         8.4.     Duration of Options                          13
         8.5.     Exercise of Options                          13
         8.6.     Payment                                      13
</TABLE>

                                       2
<PAGE>

<TABLE>
<S>                                                                                     <C>
         8.7.     Restrictions on Stock Transferability                                 13
         8.8.     Special Provisions Applicable to Incentive Stock Options              13
         8.9.     Termination of Employment or Service                                  14
         8.10.           Nontransferability of Options                                  14
ARTICLE 9. TERMINATION OF EMPLOYMENT OR SERVICE AS A DIRECTOR                           14
         9.1.     Termination of Employment or Service Other Than Due to
         Death or Disability                                                            14
         9.2.     Termination Due to Death or Disability                                14
         9.3.     Effect of Termination of Employment or Service                        15
ARTICLE 10. BENEFICIARY DESIGNATION                                                     15
ARTICLE 11. RIGHTS OF PARTICIPANTS                                                      15
         11.1.           Employment or Service                                          15
         11.2.           Participation                                                  15
         11.3.           No Implied Rights                                              15
         11.4.           No Right to Company Assets                                     15
         11.5.           Rights as Shareholder; Fractional Shares                       16
         11.6.           Other Restrictions and Limitations                             16
ARTICLE 12. CHANGE IN CONTROL                                                           16
ARTICLE 13. AMENDMENT, MODIFICATION, AND TERMINATION                                    16
         13.1.           Amendment, Modification and Termination of Plan                16
         13.2.           Amendment or Modification of Awards                            17
         13.3.           Effect on Outstanding Awards                                   17
ARTICLE 14. WITHHOLDING                                                                 17
         14.1.           Tax Withholding                                                17
         14.2.           Stock Delivery or Withholding                                  17
ARTICLE 15. SUCCESSORS                                                                  17
ARTICLE 16. REQUIREMENTS OF LAW                                                         18
         16.1.           Requirements of Law                                            18
         16.2.           Governing Law                                                  18
</TABLE>

ARTICLE 1. ESTABLISHMENT, PURPOSE, AND DURATION

      1.1. Establishment of the Plan. On March 24, 2005, the Board of Directors
of LanVision Systems, Inc. (the "Company") adopted, subject to the approval of
stockholders, this incentive compensation plan known as the "LanVision Systems,
Inc. 2005 Incentive Compensation Plan" (hereinafter referred to as the "Plan"),
which permits the grant of short-term and long-term incentive and other stock
awards. If approved by the stockholders, the Plan would replace the LanVision
Systems, Inc. 1996 Employee Stock Option Plan and the LanVision Systems, Inc.
1996 Non-Employee Directors Stock Option Plan, and no further awards would be
made under such plans.

      1.2. Purpose of the Plan. The purpose of the Plan is to promote the
success of the Company and its Subsidiaries by providing incentives to Employees
and Directors of the

                                        3
<PAGE>

Company and its Subsidiaries that will link their personal interests to the
financial success of the Company and its Subsidiaries and to growth in
shareholder value. The Plan is designed to provide flexibility to the Company
and its Subsidiaries in their ability to motivate, attract, and retain the
services of Employees and Directors upon whose judgment, interest, and special
effort the successful conduct of their operations is largely dependent.

      1.3. Duration of the Plan. The Plan was approved by the Board on March 24,
2005, shall become effective on the date it is approved by the Company's
stockholders (the "Effective Date"), and shall remain in effect, subject to the
right of the Board of Directors to terminate the Plan at any time pursuant to
Article 13 herein, until all Shares subject to it shall have been purchased or
acquired according to the provisions herein. However, in no event may an Award
be granted under the Plan on or after the tenth (10th) anniversary of the
Effective Date of the Plan.

ARTICLE 2. DEFINITIONS AND CONSTRUCTION

      2.1. Definitions. Whenever used in the Plan, the following terms shall
have the meanings set forth below and, when the meaning is intended, the initial
letter of the word is capitalized:

            (a) "Award" means, individually or collectively, a grant under the
Plan of Options, Stock Appreciation Rights or Restricted Stock.

            (b) "Award Agreement" means the agreement or other writing (which
may be framed as a plan or program) that sets forth the terms and conditions of
each Award under the Plan, including any amendment or modification thereof.

            (c) "Beneficial Owner" shall have the meaning ascribed to such term
in Rule 13d-3 of the General Rules and Regulations under the Exchange Act.

            (d) "Board" or "Board of Directors" means the Board of Directors of
the Company.

            (e) "Change in Control" shall be deemed to have occurred if the
conditions set forth in any one of the following paragraphs shall have been
satisfied:

                  (i) any Person (other than a trustee or other fiduciary
      holding securities under an employee benefit plan of the Company or any of
      its Subsidiaries, or a corporation owned directly or indirectly by the
      common stockholders of the Company in substantially the same proportions
      as their ownership of Stock of the Company), is or becomes the Beneficial
      Owner, directly or indirectly, of securities of the Company representing
      20% or more of the combined voting power of the Company's then outstanding
      securities, unless arranged by, or consummated with, the prior approval of
      the Board of Directors; or

                  (ii) during any period of two (2) consecutive years (not
      including any period prior to the Effective Date), individuals who at the
      beginning

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<PAGE>

      of such period constitute the Board and any new Director, whose election
      by the Board or nomination for election by the Company's stockholders, was
      approved by a vote of at least two-thirds (2/3) of the Directors then
      still in office who either were Directors at the beginning of the period
      or whose election or nomination for election was previously so approved,
      cease for any reason to constitute a majority thereof; or

                  (iii) the consummation of (1) the sale or disposition of all
      or substantially all the Company's assets; or (2) a merger or
      consolidation of the Company with any other corporation, other than a
      merger or consolidation which would result in the voting securities of the
      Company outstanding immediately prior thereto continuing to represent
      (either by remaining outstanding or by being converted into voting
      securities of the surviving entity), at least 50% of the combined voting
      power of the voting securities of the Company (or such surviving entity)
      outstanding immediately after such merger or consolidation; or

                  (iv) the stockholders of the Company approve a plan of
      complete liquidation of the Company.

            However, in no event shall a Change in Control be deemed to have
occurred, with respect to a Participant, if the Participant is part of a
purchasing group which consummates the Change in Control transaction. The
Participant shall be deemed "part of a purchasing group..." for purposes of the
preceding sentence if the Participant is an equity participant or has agreed to
become an equity participant in the purchasing company or group (except for (i)
passive ownership of less than 5% of the voting securities of the purchasing
company or (ii) ownership of equity participation in the purchasing company or
group which is otherwise not deemed to be significant, as determined prior to
the Change in Control by a majority of the continuing members of the Board who
are not also Employees).

            (f) "Code" means the Internal Revenue Code of 1986, as amended from
time to time.

            (g) "Committee" means the LanVision Systems, Inc. Compensation
Committee, or such other committee designated by the Board of Directors to
administer this Plan. The Committee shall be appointed by the Board, shall
consist of two or more outside, independent members of the Board, and in the
judgment of the Board, shall be qualified to administer the Plan as contemplated
by (i) Rule 16b-3 of the Securities Exchange Act of 1934 (or any successor
rule), (ii) Section 162(m) of the Code, as amended, and the regulations
thereunder (or any successor Section and regulations), and (iii) any rules and
regulations of the Nasdaq Stock Market (or such other stock exchange on which
the Stock is traded). Any member of the Committee who does not satisfy the
qualifications set out in the preceding sentence may recuse himself or herself
from any vote or other action taken by the Committee. The Board may, at any time
and in its complete discretion, remove any member of the Committee and may fill
any vacancy in the Committee.

                                        5
<PAGE>

            (h) "Company" means LanVision Systems, Inc., a Delaware corporation,
or any successor thereto as provided in Article 15 herein.

            (i) "Covered Employee" means any Participant who is or may be a
"covered employee" within the meaning of Section 162(m)(3) of the Code in the
year in which an Award becomes taxable to such Participant.

            (j) "Director" means a director of the Company or a Subsidiary.

            (k) "Disability" means totally and permanently disabled as from time
to time defined under the long-term disability plan of the Company or a
Subsidiary applicable to Employee, or in the case where there is no applicable
plan, permanent and total disability as defined in Section 22(e)(3) of the Code
(or any successor Section).

            (l) "Effective Date" means the date this Plan is approved by the
Company's stockholders.

            (m) "Employee" means an employee of the Company or any of its
Subsidiaries, including an employee who is an officer or a Director.

            (n) "Exchange Act" means the Securities Exchange Act of 1934, as
amended from time to time.

            (o) As used in this Plan (unless a different method of calculation
is required by applicable law) "Fair Market Value" on or as of any date shall
mean (i) the closing price of the Stock as reported by the Nasdaq Stock Market
(or, if the Stock is not listed for trading on the Nasdaq Stock Market, then on
such other national exchange upon which the Stock is then listed) for such date,
or if there are no sales on such date, on the next following business day on
which there were sales, or (ii) in the event that the Stock is no longer listed
for trading on a national exchange, an amount determined in accordance with
standards adopted by the Committee.

            (p) "Incentive Stock Option" or "ISO" means an option to purchase
Stock, granted under Article 8 herein, which is designated as an incentive stock
option and is intended to meet the requirements of Section 422 of the Code (or
any successor Section).

            (q) "Nonqualified Stock Option" or "NQSO" means an option to
purchase Stock, granted under Article 8 herein, which is not intended to be an
Incentive Stock Option.

            (r) "Option" means an Incentive Stock Option or a Nonqualified Stock
Option.

            (s) "Participant" means an Employee or Director who has been granted
an Award under the Plan.

                                        6
<PAGE>

            (t) "Period of Restriction" means the period during which the
transfer of Shares of Restricted Stock is restricted, during which the
Participant is subject to a substantial risk of forfeiture, pursuant to Article
7 herein.

            (u) "Person" shall have the meaning ascribed to such term in Section
3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d) thereof,
including a "group" as defined in Section 13(d) thereof.

            (v) "Plan" means this LanVision Systems, Inc. 2005 Incentive
Compensation Plan, as herein described and as hereafter from time to time
amended.

            (w) "Predecessor Plan(s)" means the LanVision Systems, Inc. 1996
Employee Stock Option Plan, as from time to time amended, and/or the LanVision
Systems, Inc. 1996 Non-Employee Directors Stock Option Plan, as from time to
time amended, as the context so indicates.

            (x) "Previously-Acquired Shares" means shares of Stock acquired by
the Participant or any beneficiary of a Participant, which Shares have been held
for a period of not less than six months, or such longer, or shorter period as
the Committee may require or permit.

            (y) "Restricted Stock" means an Award of Stock granted to a
Participant pursuant to Article 7 herein.

            (z) "Stock" or "Shares" means the common stock without par value of
the Company.

            (aa) "Stock Appreciation Right" or "SAR" means an Award, granted to
a Participant pursuant to Article 6 herein.

            (bb) "Subsidiary" shall mean any corporation which is a subsidiary
corporation of the Company, as that term is defined in Section 424(f) of the
Code.

            (cc) "Voting Stock" shall mean securities of any class or classes of
stock of a corporation, the holders of which are ordinarily, in the absence of
contingencies, entitled to elect a majority of the corporate directors.

      2.2. 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.

      2.3. Severability. In the event any provision of the Plan shall be held
illegal or invalid for any reason, the 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.

                                        7
<PAGE>

ARTICLE 3. ADMINISTRATION

      3.1. Authority of the Committee.

            (a) The Plan shall be administered by the Committee. Subject to the
provisions of the Plan, the Committee shall have all powers vested in it by the
term of the Plan, such powers to include the authority to:

                  (i) Select the persons to be granted Awards under the Plan;

                  (ii) Determine the terms, conditions, form and amount of
      Awards to be made to each person selected;

                  (iii) Determine the time when Awards are to be made and any
      conditions which must be satisfied before an Award is made;

                  (iv) To establish objectives and conditions for earning
      Awards;

                  (v) To determine the terms of each Award Agreement and any
      amendments or modifications thereof (which shall not be inconsistent with
      the Plan); and

                  (vi) To determine the guidelines and/or procedures for the
      payment or exercise of Awards.

      Notwithstanding the foregoing, no action of the Committee (other than
pursuant to Section 4.2 hereof) may, without the consent of the person or
persons entitled to exercise any outstanding Option or Stock Appreciation Right,
adversely affect the rights of such person or persons with respect to such
Awards.

      3.2. Decisions Binding. The Committee shall have full power and authority
to administer and interpret the Plan and to adopt or establish such rules,
regulations, agreements, guidelines, procedures and instruments, which are not
contrary to the terms of the Plan and which, in its opinion, may be necessary or
advisable for the administration and operation of the Plan. All determinations
and decisions made by the Committee pursuant to the provisions of the Plan and
all related orders or resolutions of the Board of Directors shall be final,
conclusive and binding on all persons, including the Company and its
Subsidiaries, its stockholders, employees, and Participants and their estates
and beneficiaries, and such determinations and decisions shall not be
reviewable.

      3.3. Delegation of Certain Responsibilities. The Committee may, subject to
the terms of the Plan and applicable law, appoint such agents as it deems
necessary or advisable for the proper administration of the Plan under this
Article 3; provided, however, that except as provided below the Committee may
not delegate its authority to grant Awards under the Plan or to correct errors,
omissions or inconsistencies in the Plan. The Committee may delegate to the
Company's Chief Executive Officer and/or to other officers of the Company its
authority under this Article 3, provided that such delegation shall not extend
to the grant of Awards or the exercise of discretion with respect to Awards to
Employees who, at the time of

                                        8
<PAGE>

such action, are (a) Covered Employees or (b) officers of the Company or its
Subsidiaries who are subject to the reporting requirements of Section 16(a) of
the Exchange Act. All authority delegated by the Committee under this Section
3.3 shall be exercised in accordance with the provisions of the Plan and any
guidelines for the exercise of such authority that may from time to time be
established by the Committee.

      3.4. Procedures of the Committee. Except as may otherwise be provided in
the charter or similar governing document applicable to the Committee, (a) all
determinations of the Committee shall be made by not less than a majority of its
members present at the meeting (in person or otherwise) at which a quorum is
present; (b) a majority of the entire Committee shall constitute a quorum for
the transaction of business; and (c) any action required or permitted to be
taken at a meeting of the Committee may be taken without a meeting if a
unanimous written consent, which sets forth the action, is signed by each member
of the Committee and filed with the minutes for proceedings of the Committee.
Service on the Committee shall constitute service as a director of the Company
so that members of the Committee shall be entitled to indemnification,
limitation of liability and reimbursement of expenses with respect to their
services as members of the Committee to the same extent that they are entitled
under the Company's Certificate of Incorporation, as amended from time to time,
and Delaware law for their services as directors of the Company.

      3.5. Award Agreements. Each Award under the Plan shall be evidenced by an
Award Agreement which shall be signed by an authorized officer of the Company
and, if required, by the Participant, and shall contain such terms and
conditions as may be authorized or approved by the Committee. Such terms and
conditions need not be the same in all cases. Notwithstanding any other
provision of the Plan to the contrary, The Board of the Committee shall impose
such conditions on any Award (including without limitation, the right of the
Board or the Committee to limit the time of exercise to specific periods or the
time and form of payment to certain key employees and participants) as may be
required to satisfy the requirements of Section 409A of the Code.

      3.6. Rule 16b-3 Requirements. Not withstanding any other provision of the
Plan, the Board or the Committee may impose such conditions on any Award
(including, without limitation, the right of the Board or the Committee to limit
the time of exercise to specified periods) as may be required to satisfy the
requirements of Rule 16b-3 (or any successor rule), under the Exchange Act
("Rule 16b-3").

ARTICLE 4. STOCK SUBJECT TO THE PLAN

      4.1.  Number of Shares.

            (a) Subject to adjustment as provided in Section 4.2 herein, the
aggregate number of Shares that may be delivered under this Plan at any time
shall not exceed one million (1,000,000) Shares. Stock delivered under this Plan
may consist, in whole or in part, of authorized and unissued Shares or treasury
Shares. To the extent that Shares subject to an outstanding Award under this
Plan are not issued by reason of the forfeiture, termination, surrender,
cancellation or expiration while unexercised of such award, by reason of the
tendering or withholding of Shares (by either actual delivery or by attestation)
to pay all or a portion of the purchase price or to satisfy all or a portion of

                                       9
<PAGE>

the tax withholding obligations relating to an Award, by reason of being settled
in cash in lieu of Stock or settled in a manner such that some or all of the
Shares covered by the Award are not issued to a Participant, or being exchanged
for a grant under this Plan that does not involve Stock, then such shares shall
immediately again be available for issuance under this Plan. The Committee may
from time to time adopt and observe such procedures concerning the counting of
Shares against the Plan maximum as it may deem appropriate.

            (b) Shares of Stock issued in connection with the Predecessor Plans
and/or awards that are assumed, converted or substituted pursuant to a merger,
acquisition or similar transaction entered into by the Company or any of its
Subsidiaries shall not reduce the number of Shares available for issuance under
this Plan.

            (c) Subject to Section 4.2, the following limitations shall apply to
awards under the Plan with respect to Awards of Incentive Stock Options, up to
1,000,000 Shares that may be issued under this Plan.

      4.2.  Adjustments in Authorized Shares. In the event of any merger,
reorganization, consolidation, recapitalization, separation, liquidation, Stock
dividend, split-up, share combination, or other change in the corporate
structure of the Company affecting the Stock, such adjustment shall be made in
the number and class of shares which may be delivered under the Plan, in the
maximum number of Shares set forth in paragraph 4.1(c) above, and in the number
and class of and/or price of shares subject to outstanding Awards granted under
the Plan, as may be determined to be appropriate and equitable by the Committee,
in its sole discretion, to prevent dilution or enlargement of rights; and
provided that the number of shares subject to any Award shall always be a whole
number. Any adjustment of an Incentive Stock Option under this paragraph shall
be made in such a manner so as not to constitute a modification within the
meaning of Section 424(h)(3) of the Code.

ARTICLE 5. ELIGIBILITY AND PARTICIPATION

      5.1. Eligibility. Persons eligible to participate in the Plan include all
Employees and Directors.

      5.2. Actual Participation. Subject to the provisions of the Plan, the
Committee may from time to time select those Employees and Directors to whom
Awards shall be granted and determine the nature and amount of each Award. No
Employee or Director shall have any right to be granted a subsequent Award under
the Plan if previously granted an Award.

ARTICLE 6. STOCK APPRECIATION RIGHTS

      6.1. Grant of Stock Appreciation Rights. Subject to the terms and
conditions of the Plan, Stock Appreciation Rights may be granted to Employees
and/or Directors at any time and from time to time, at the discretion of the
Committee. Subject to the immediately preceding sentence, the Committee shall
have the sole discretion, subject to the requirements of the Plan, to determine
the actual number of Shares subject to SARs granted to any Participant.

                                       10
<PAGE>

      6.2. Exercise of SARs. SARs may be exercised upon whatever terms and
conditions the Committee, in its sole discretion, imposes upon the SARs, which
may include, but are not limited to, a corresponding proportional reduction in
Options or other Awards granted in tandem with such SARs.

      6.3. Payment of SAR Amount. Upon exercise of the SAR, the holder shall be
entitled to receive payment of an amount determined by multiplying:

            (a) The difference between the Fair Market Value of a Share on the
date of exercise over the price fixed by the Committee at the date of grant
(which price shall not be less than 100% of the Fair Market Value of a Share on
the date of grant); by

            (b) The number of Shares with respect to which the SAR is exercised.

      6.4. Form of Payment. Payment to a Participant of the amount due upon SAR
exercise will be made in Shares having a Fair Market Value as of the date of
exercise equal to the amount determined under Section 6.3.

      6.5. Duration of SAR. Each SAR shall expire at such time as the Committee
shall determine in the Award Agreement, however, no SAR shall be exercisable
later than the tenth (10th) anniversary of the date of its grant.

      6.6. Termination of Employment or Service. The disposition of SARs held by
a Participant at the time of termination of employment or service as a Director
shall be determined in accordance with Article 9 below.

      6.7. Nontransferability of SARs. Except as the Committee may permit, no
SAR granted under the Plan may be sold, transferred, pledged, assigned, or
otherwise alienated or hypothecated, otherwise than by will or by the laws of
descent and distribution. Further, all SARs granted to a Participant under the
Plan shall be exercisable during his lifetime only by such Participant.

ARTICLE 7. RESTRICTED STOCK

      7.1. Grant of Restricted Stock. Subject to the terms and conditions of the
Plan, the Committee, at any time and from time to time, may grant Restricted
Stock under the Plan to such Employees and/or Directors and in such amounts and
on such terms and conditions as it shall determine.

      7.2. Transferability. Except as the Committee may permit, the Shares of
Restricted Stock granted hereunder may not be sold, transferred, pledged,
assigned, or otherwise alienated or hypothecated until the termination of the
applicable Period of Restriction or for such period of time as shall be
established by the Committee and as shall be specified in the Award Agreement,
or upon earlier satisfaction of other conditions (which may include the
attainment of performance goals) as specified by the Committee in its sole
discretion and set forth in the Award Agreement, otherwise than by will or by
the laws of descent and distribution. All rights with respect to the Restricted
Stock granted to a Participant under the Plan shall be exercisable during his
lifetime only by such Participant.

                                       11
<PAGE>

      7.3. Other Restrictions. The Committee shall impose such other
restrictions on any Shares of Restricted Stock granted pursuant to the Plan as
it may deem advisable and the Committee may legend certificates representing
Restricted Stock or record stop transfer orders with respect to uncertificated
Shares to give appropriate notice of such restrictions.

      7.4. End of Period of Restriction. Except as otherwise provided in this
Article, after the last day of the Period of Restriction, Shares of Restricted
Stock covered by each Restricted Stock grant made under the Plan shall become
freely transferable by the Participant. Once the Shares are released from the
restrictions, the Participant shall be entitled to have the legend or stop
transfer order removed.

      7.5. Voting Rights. During the Period of Restriction, Participants holding
Shares of Restricted Stock granted hereunder may exercise full voting rights
with respect to those Shares, unless otherwise specified in the applicable Award
Agreement.

      7.6. Dividends and Other Distributions. Except as otherwise provided by
the Committee, during the Period of Restriction, Participants holding Shares of
Restricted Stock shall be entitled to receive all dividends and other
distributions paid with respect to those Shares while they are so held. If any
such dividends or distributions are paid in Shares, the Shares shall be subject
to the same restrictions on transferability as the Shares of Restricted Stock
with respect to which they were paid.

      7.7. Termination of Employment or Service. The disposition of Restricted
Stock held by a Participant at the time of termination of employment or service
as a Director shall be determined in accordance with Article 9 below.

ARTICLE 8. OPTIONS

      8.1. Grant of Options. Subject to the terms and provisions of the Plan,
Options may be granted to Employees and/or Directors at any time and from time
to time as shall be determined by the Committee. The Committee shall have the
sole discretion, subject to the requirements of the Plan, to determine the
actual number of Shares subject to Options granted to any Participant. The
Committee may grant any type of Option to purchase Stock that is permitted by
law at the time of grant including, but not limited to, ISOs and NQSOs. However,
only Employees may receive an Award of Incentive Stock Options.

      8.2. Option Award Agreement. Each Option grant shall be evidenced by an
Award Agreement that shall specify the type of Option granted, the Option price,
the duration of the Option, the number of Shares to which the Option pertains,
and such other provisions as the Committee shall determine. Unless the Option
Agreement shall specify that the Option is intended to be an Incentive Stock
Option within the meaning of Section 422 of the Code, the Option shall be a
Nonqualified Stock Option whose grant is not intended to be subject to the
provisions of Code Section 422.

      8.3. Option Price. The purchase price per share of Stock covered by an
Option shall be determined by the Committee but shall not be less than 100% of
the Fair Market Value of such Stock on the date the Option is granted.
Notwithstanding the authority granted to the Committee pursuant to Section 3.1
of the Plan, once an Option is granted, the

                                       12
<PAGE>

Committee shall have no authority to reduce the Option price, nor may any Option
granted under the Plan be surrendered to the Company as consideration for the
grant of a new Option with a lower exercise price without the approval of the
Company's stockholders, except pursuant to Section 4.2 of the Plan related to an
adjustment in the number of Shares.

      8.4. Duration of Options. Each Option shall expire at such time as the
Committee shall determine in the Award Agreement, however, no Option shall be
exercisable later than the tenth (10th) anniversary date of its grant.

      8.5. Exercise of Options. To the extent exercisable and not expired,
forfeited, cancelled or otherwise terminated, Options granted under the Plan
shall be exercisable at such times and be subject to such restrictions and
conditions as provided in the Award Agreement, which need not be the same for
all Participants.

      8.6. Payment. To the extent exercisable and not expired or forfeited,
cancelled or otherwise terminated, Options shall be exercised by the delivery of
a written notice to the Company setting forth the number of Shares with respect
to which the Option is to be exercised, accompanied by full payment for the
Shares. The Option price upon exercise of any Option shall be payable to the
Company in full either (a) in cash or its equivalent, including, but not limited
to, delivery of a properly completed exercise notice, together with irrevocable
instructions to a broker to promptly deliver to the Company the amount of sale
proceeds from the sale of the Shares subject to the Option exercise or to
deliver loan proceeds from such broker to pay the exercise price and any
withholding taxes due, (b) by delivery or deemed delivery through attestation of
Previously-Acquired Shares having a Fair Market Value at the time of exercise
equal to the total Option price, (c) by a combination of (a) or (b), (d) the
exchange, in successive steps, of Shares to be received from the exercise of the
Option, with the result that the Participant will receive from the exercise a
net number of Shares represented by the difference between the total number of
Shares with respect to which the Option is being exercised and that number of
Shares the Fair Market Value (determined as of the Exercise Date) of which is
equal to that portion of the price being paid by the delivery of Shares, or (e)
such other methods as the Committee deems appropriate. The proceeds from such a
payment shall be added to the general funds of the Company and shall be used for
general corporate purposes. As soon as practicable after receipt of written
notification and payment, the Company shall deliver to the Participant Stock
certificates in an appropriate amount based upon the number of Options
exercised, issued in the Participant's name.

      8.7. Restrictions on Stock Transferability. The Committee shall impose
such restrictions on any Shares acquired pursuant to the exercise of an Option
under the Plan as it may deem advisable, including, without limitation,
restrictions under applicable Federal securities law, under the requirements of
any stock exchange upon which such Shares are then listed and under any blue sky
or state securities laws applicable to such Shares.

      8.8. Special Provisions Applicable to Incentive Stock Options. To the
extent provided or required under Section 422 of the Code or regulations
thereunder (or any successor Section or regulations) the Award of Incentive
Stock Options shall be subject to the following:

                                       13
<PAGE>

            (a) In the event that the aggregate Fair Market Value of the Stock
(determined at the time the Options are granted) subject to ISOs held by a
Participant that first becomes exercisable during any calendar year exceeds
$100,000 then the portion of such ISOs equal to such excess shall be NQSOs;

            (b) An Incentive Stock Option granted to an Employee who, at the
time of grant, owns (within the meaning of Section 424(d) of the Code) stock
possessing more than 10% of the total combined voting power of all classes of
Stock of the Company, shall have an exercise price which is at least 110% of the
Fair Market Value of the Stock subject to the Option; and

            (c) No ISO granted to an Employee who, at the time of grant, has
(within the meaning of Section 424(d) of the Code) stock possessing more than
10% of the total combined voting power of all classes of stock of the Company,
shall be exercisable later than the fifth (5th) anniversary date of its grant.

      8.9. Termination of Employment or Service. The disposition of Options held
by a Participant at the time of termination of employment or service as a
Director shall be determined in accordance with Article 9 below.

      8.10. Nontransferability of Options. Except as the Committee may permit,
no Option granted under the Plan may be sold, transferred, pledged, assigned, or
otherwise alienated or hypothecated, otherwise than by will or by the laws of
descent and distribution. Further, all Options granted to a Participant under
the Plan shall be exercisable during his lifetime only by such Participant. The
Committee may impose additional restrictions on transferability, and establish
such operational procedures regarding transferability, as it may deem
appropriate, necessary, or advisable.

ARTICLE 9. TERMINATION OF EMPLOYMENT OR SERVICE AS A DIRECTOR

      9.1. Termination of Employment or Service Other Than Due to Death or
Disability. Subject to Section 9.4 below, if the employment or service of a
Participant shall terminate for any reason other than death or Disability:

            (a) Each SAR shall be immediately cancelled and terminated;

            (b) Any shares of Restricted Stock, still subject to restrictions as
of the date of such termination, shall automatically be forfeited and returned
to the Company or cancelled, as applicable; and

            (c) Each Option shall be cancelled and terminated if not exercised
within the 90 day period immediately following the date of termination of
employment.

      9.2. Termination Due to Death or Disability. Subject to Section 9.3 below,
in the event the employment or service of a Participant is terminated by reason
of death or Disability:

                                       14

<PAGE>

            (a) Each SAR and Option held by the Participant (whether or not
exercisable prior to the date of termination) may be exercised on or before the
earlier of the expiration date of the SAR or Option or within the applicable
period provided by the Code for termination due to death or permanent
disability; and

            (b) Any remaining Period of Restriction applicable to Restricted
Stock Units pursuant to Section 7.2 herein shall automatically terminate and the
Shares of Restricted Stock shall thereby be free of restrictions and be fully
transferable.

      9.3. Effect of Termination of Employment or Service. The disposition of
each Award held by a Participant in the event of termination of employment or
service as a Director shall be as determined by the Committee and set forth in
the applicable Award Agreement and any amendment or modification thereof, which
disposition may differ from the provisions of Sections 9.1 and 9.2 above. To the
extent the applicable Award Agreement or an amendment or modification thereof
does not expressly provide for such disposition, the disposition of the Award
shall be determined in accordance with Sections 9.1 and 9.2.

ARTICLE 10. BENEFICIARY DESIGNATION

      Each Participant under the Plan may, from time to time, name any
beneficiary or beneficiaries (who may be named contingently or successively and
who may include a trustee under a will or living trust) to whom any benefit
under the Plan is to be paid in case of his death before he receives any or all
of such benefit. Each designation will revoke all prior designations by the same
Participant, shall be in a form prescribed by the Committee, and will be
effective only when filed by the Participant in writing with the Committee
during his lifetime. In the absence of any such designation or if all designated
beneficiaries predecease the Participant, benefits remaining unpaid at the
Participant's death shall be paid to the Participant's estate.

ARTICLE 11. RIGHTS OF PARTICIPANTS

      11.1. Employment or Service. Nothing in the Plan shall interfere with or
limit in any way the right of the Company or any of its Subsidiaries to
terminate any Participant's employment or service as a Director at any time, nor
confer upon any Participant any right to continue in the employ or to serve as a
Director of the Company or any of its Subsidiaries.

      11.2. Participation. No Employee or Director shall have a right to be
selected as a Participant, or, having been so selected, to be selected again as
a Participant.

      11.3. No Implied Rights. Neither the establishment of the Plan nor any
amendment thereof shall be construed as giving any Participant, beneficiary, or
any other person any legal or equitable right unless such right shall be
specifically provided for in the Plan or conferred by specific action of the
Committee in accordance with the terms and provisions of the Plan. Except as
expressly provided in this Plan, neither the Company nor any of its Subsidiaries
shall be required or be liable to make any payment under the Plan.

      11.4. No Right to Company Assets. Neither the Participant nor any other
person shall acquire, by reason of the Plan, any right in or title to any
assets, funds or property of the

                                       15

<PAGE>

Company or any of its Subsidiaries whatsoever including, without limiting the
generality of the foregoing, any specific funds, assets, or other property which
the Company or any of its Subsidiaries, in its sole discretion, may set aside in
anticipation of a liability hereunder. Any benefits which become payable
hereunder shall be paid from the general assets of the Company or the applicable
subsidiary. The Participant shall have only a contractual right to the amounts,
if any, payable hereunder unsecured by any asset of the Company or any of its
Subsidiaries. Nothing contained in the Plan constitutes a guarantee by the
Company or any of its Subsidiaries that the assets of the Company or the
applicable subsidiary shall be sufficient to pay any benefit to any person.

      11.5. Rights as Shareholder; Fractional Shares. Except as otherwise
provided under the Plan, a Participant or Beneficiary shall have no rights as a
holder of Shares with respect to Awards hereunder, unless and until Shares are
issued (as evidenced by the appropriate entry on the books of the Company or of
a duly authorized transfer agent of the Company). Fractional Shares shall not be
issued or transferred under an Award, but the Committee may authorize payment of
cash in lieu of a fraction, or round the fraction down. To the extent the Stock
is uncertificated, references in this Plan to certificates shall be deemed to
include references to any book-entry evidencing such Shares.

      11.6. Other Restrictions and Limitations. The Committee may impose such
restrictions and limitations on any Awards granted pursuant to the Plan as it
may deem advisable, including, without limitation, restrictions under applicable
Federal or state securities laws, Share ownership or holding period
requirements, or requirements to enter into or to comply with confidentiality,
non-competition and/or other restrictive or similar covenants, and may legend
the certificates issued in connection with an Award to give appropriate notice
of any such restrictions.

ARTICLE 12. CHANGE IN CONTROL

Notwithstanding any other provisions of the Plan, and except as otherwise
provided in the Award Agreement, in the event of a Change in Control all Awards
granted under this Plan shall immediately vest 100% in each Participant,
including Incentive Stock Options, Nonqualified Stock Options, Stock
Appreciation Rights and Restricted Stock.

ARTICLE 13. AMENDMENT, MODIFICATION, AND TERMINATION

      13.1. Amendment, Modification and Termination of Plan. The Board may
terminate the Plan or any portion thereof at any time, and may amend or modify
the Plan from time to time in such respects as the Board may deem advisable in
order that any Awards thereunder shall conform to any change in applicable laws
or regulations or in any other respect the Board may deem to be in the best
interests of the Company; provided, however, that no such amendment or
modification shall, without stockholder approval, (i) except as provided in
Section 4.2, increase the number of shares of Stock which may be issued under
the Plan, (ii) expand the types of Awards available to Participants under the
Plan, (iii) materially expand the class of persons eligible to participate in
the Plan; (iv) delete or limit the provisions in Section 8.3 prohibiting the
repricing of Options or reduce the price at which Shares may be offered under
Options; or (v) extend the termination date for making Awards under the Plan. In
addition, the Plan shall not be amended without approval of such amendment by
the

                                       16

<PAGE>

Company's stockholders if such amendment is required under (1) the rules and
regulations of the Nasdaq Stock Market or an other national exchange on which
the Stock is then listed, or (2) other applicable law, rules or regulations.

      13.2. Amendment or Modification of Awards. The Committee may amend or
modify any outstanding Awards in any manner to the extent that the Committee
would have had the authority under the Plan initially to make such Award as so
modified or amended, including without limitation, to change the date or dates
as of which Awards may be exercised, to remove the restrictions on Awards, or to
modify the manner in which Awards are determined and paid.

      13.3. Effect on Outstanding Awards. No such amendment, modification or
termination of the Plan pursuant to Section 13.1 above, or amendment or
modification of an Award pursuant to Section 13.2 above, shall materially
adversely alter or impair any outstanding Awards without the consent of the
Participant affected thereby.

ARTICLE 14. WITHHOLDING

      14.1. Tax Withholding. The Company and any of its Subsidiaries shall have
the power and the right to deduct or withhold, or require a Participant to remit
to the Company or any of its Subsidiaries, an amount sufficient to satisfy
Federal, state and local taxes (including the Participant's FICA obligation)
required by law to be withheld with respect to any grant, exercise, or payment
made under or as a result of this Plan.

      14.2. Stock Delivery or Withholding. With respect to withholding required
upon the exercise of Options or SARs, upon the lapse of restrictions on
Restricted Stock, or upon any other taxable event arising as a result of Awards
granted hereunder, Participants may elect to satisfy the withholding
requirement, in whole or in part, by having the Company withhold Shares of Stock
having a Fair Market Value on the date the tax is to be determined equal to the
minimum (or such greater amount as the Committee may permit) statutory total tax
which would be imposed on the transaction; provided, however, that in the event
a deferral election is in effect with respect to the shares deliverable upon
exercise of an Option, then the Participant may only elect to have such
withholding made from the Stock tendered to exercise such Option. All such
elections shall be irrevocable, made in writing, signed by the Participant, and
shall be subject to any restrictions or limitations that the Committee, in its
sole discretion, deems appropriate. Stock withholding elections made by
Participants who are subject to the short-swing profit restrictions of Section
16 of the Exchange Act must comply with the additional restrictions of Section
16 and Rule 16b-3 in making their elections.

ARTICLE 15. SUCCESSORS

      All obligations of the Company under the Plan, with respect to Awards
granted hereunder, shall be binding on any successor to the Company, whether the
existence of such successor is the result of a direct or indirect purchase,
merger, consolidation or otherwise, of all or substantially all of the business
and/or assets of the Company.

                                       17

<PAGE>

ARTICLE 16. REQUIREMENTS OF LAW

      16.1. Requirements of Law. The granting of Awards and the issuance of
Shares of Stock under this Plan shall be subject to all applicable laws, rules,
and regulations, and to such approvals by any governmental agencies or national
securities exchanges as may be required.

      16.2. Governing Law. The Plan, and all agreements hereunder, shall be
construed in accordance with and governed by the laws of the State of Delaware.

                                       18

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