Document:

Exhibit 4.4

 Exhibit 4.4 
  
 SECURITY AGREEMENT 
  
 THIS SECURITY AGREEMENT (the “Agreement”) is dated as of May 18, 2005 between KH FUNDING COMPANY, a Maryland corporation, as issuer (the
“Company”), and WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association, as trustee (the “Trustee”). 
  
 Recitals 
  
 A. The Company and the Trustee have executed and delivered an Indenture dated August 2, 2004, as thereafter and hereafter amended, modified, replaced or
supplemented to provide for the issuance of certain of the Company’s debt securities to be issued in one or more series (the “Debt Securities”). 
  

B. The Debt Securities have been registered with the U.S. Securities and Exchange Commission and consist of the Series 3 Senior Secured Securities and
the Series 4 Subordinated Unsecured Securities. 
  
 C. To evidence
the secured status of the Series 3 Senior Secured Securities, the parties agree as follows: 
  
 Section 1. Grant of Security Interest. The Company hereby confirms, reaffirms, grants, regrants, and conveys a security interest pursuant to Article 9 of the Maryland Uniform Commercial Code to the Trustee, for
the benefit of the holders of the Series 3 Senior Secured Securities, all of Company’s right, title and interest in and to all accounts, chattel paper, documents, equipment, general intangibles (including payment intangibles, trademarks,
patents, copyrights, tax refunds), goods, instruments (including promissory notes), inventory, investment property, letter-of-credit rights, and supporting obligations, wherever located, as now or hereafter existing, arising or acquired, and all
proceeds (including insurance proceeds) and products of the foregoing. 
  
 Section 2. Powers of Trustee. The Trustee shall have all powers, rights and remedies available to a secured creditor under Article 9 of the Maryland Uniform Commercial Code and as provided in the Indenture. 
  
 Section 3. Termination. The terms of this Agreement shall continue and
be binding upon the Company and the Trustee and their respective successors and assigns, until all obligations of the Company owing to the holders of Debt Securities have been paid, in full, or otherwise discharged, unless otherwise expressly agreed
in writing by the Company and the Trustee (or their respective successors and assigns). 

 IN WITNESS WHEREOF, the parties have executed this Agreement the day and year first above written.

  

					
	 WELLS FARGO BANK, NATIONAL ASSOCIATION,
as Trustee

			
	By:	 	 /s/ Robert L. Reynolds

	 	(SEAL)
	 	 	Robert L. Reynolds	 	 
	 	 	Vice President	 	 
	
	KH FUNDING COMPANY
			
	By:	 	 /s/ Robert L. Harris

	 	(SEAL)
	 	 	Robert L. Harris	 	 
	 	 	PresidentExhibit 10.3

 Exhibit 10.3 
  
 KH FUNDING COMPANY 
  
 2005 Equity Incentive Plan 
  
 Section 1. Purpose of the Plan. 
  
 This stock option plan (the “Plan”) is intended to provide incentives: 
  
 (a) to the officers and other employees of KH Funding Company (the “Company”), or any present or future parent or
subsidiary of the Company (“Affiliate”) by providing them with opportunities to purchase stock in the Company pursuant to options granted hereunder which qualify as “incentive stock options” under Section 422 of the Internal
Revenue Code of 1986, as amended (the “Code”) (“ISO” or “ISOs”); 
  
 (b) to officers, employees, directors, and consultants of the Company and any present or future subsidiaries by providing them with opportunities to purchase stock in the Company pursuant to options granted hereunder
which do not qualify as ISOs (“Non-Qualified Option” or “Non-Qualified Options,” collectively with ISO or ISOs, “Options”); and 
  
 (c) to officers, employees, directors, and consultants of the Company and any present or future Affiliates by providing them with either stock bonus
grants and/or restricted stock purchase grants for Company Common Stock (collectively, “Stock Grants”). 
  
 (d) As used herein, the term “Award” means any Option or Stock Grant hereunder. The terms “parent” and “subsidiary” mean
“parent corporation” and “subsidiary corporation,” respectively, as those terms are defined in Section 424 of the Code and the Treasury Regulations promulgated thereunder (the “Regulations”). 
  
 Section 2. Common Stock Subject to the Plan. 
  
 (a) The total number of shares of the authorized but unissued shares of the
common stock, $.01 par value, of the Company (“Common Stock”) for which Awards may be granted under the Plan shall not exceed One Million (1,000,000) shares, subject to adjustment as provided in Section 13 hereof. 
  
 (b) If an Award granted hereunder shall expire, be cancelled or otherwise
terminate for any reason without having been exercised in full, the un-purchased shares subject thereto shall again be available for subsequent grants under the Plan. 
  
 (c) Common Stock issuable pursuant to an Award granted under the Plan may be subject to such restrictions on transfer,
repurchase rights or other restrictions as shall be determined by the Board of Directors of the Company (the “Board”) (discussed below in Section 3). 

 Section 3. Administration of the Plan. 
  
 (a) General. The Plan shall be administered by the Board. However, the Board may from time to time appoint a
committee to make recommendations concerning operation of the Plan or the granting of Awards. The Board may hold a special meeting to take actions concerning the Plan, or it may take actions concerning the Plan at a regular meeting. 
  
 (b) Powers of the Board. Subject to the provisions of the Plan, the
Board shall have sole authority, in its absolute discretion: 
  
 (i) determine the employees of the Company and its subsidiaries to whom ISOs may be granted, and to determine to whom Non-Qualified Options may be granted; 
  
 (ii) determine the time or times at which Awards may be granted; 
  
 (iii) determine the Award price of shares subject to each Award which price
shall not be less than the minimum price specified in Section 6; 
  
 (iv) determine whether each Award granted shall be an ISO, a Non-Qualified Option or a Stock Grant; 
  
 (v) determine (subject to Section 9) the time or times when each Option shall become exercisable and the duration of the exercise period; and 

 
 (vi) determine whether restrictions such as repurchase Awards are to be
imposed on shares subject to Awards and the nature of such restrictions. 
  
 (vii) to exercise such powers and to perform such acts as the Board deems necessary or expedient to promote the best interests of the Company which are not in conflict with the provisions of the Plan. 
  
 (c) Board Determinations. All determinations, interpretation and
constructions made by the Board in good faith shall not be subject to review by any person and shall be final, binding and conclusive on all persons. 
  
 Section 4. Eligibility. 
  
 (a) Options designated as ISOs may be granted only to employees and others who may eligible under the Code (including officers who are employees) of the
Company or an Affiliate. Non-Qualified Options may be granted to any officer, employee, or consultant of the Company or an Affiliate. 
  

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 (b) In determining the eligibility of an individual to be granted an Award, as well as in determining the
number of shares to be optioned to any person, the Board shall take into account the position and responsibilities of the person being considered, the nature and value to the Company or an Affiliate of his or her service and accomplishments, his or
her present and potential contribution to the success of the Company or an Affiliate, and such other factors as the Board may deem relevant. 
  
 (c) No Option designated as an ISO shall be granted to any employee of the Company or an Affiliate if such employee owns, immediately prior to the grant
of an Option, stock representing more than 10% of the total combined voting power of all classes of stock of the Company or an Affiliate, unless the purchase price for the stock under such Option shall be at least 110% of its fair market value at
the time such Option is granted and the Option, by its terms, shall not be exercisable more than five (5) years from the date it is granted. In determining the stock ownership under this paragraph, the provisions of Section 424(d) of the Code shall
be controlling. In determining the fair market value under this paragraph, the provisions of Section 6 hereof shall apply. 
  
 (d) The maximum number of shares of Common Stock with respect to which an Option may be granted to any employee in any taxable year of the Company shall
not exceed Five Hundred Thousand (500,000) shares, taking into account shares subject to options granted and terminated, or repriced, during such taxable year, subject to adjustment as provided in Section 13 hereof. 
  
 Section 5. Option Agreement. 
  
 (a) Each Option shall be evidenced by an option agreement (the “Option
Agreement”) duly executed on behalf of the Company and by the optionee to whom such Option is granted, which Option Agreement shall comply with and be subject to the terms and conditions of the Plan. 
  
 (b) The Option Agreement may contain such other terms, provisions and
conditions which are not inconsistent with the Plan as may be determined by the Board, provided that Options designated as ISOs shall meet all of the conditions for ISOs as defined in Section 422 of the Code. The date of grant of an Option shall be
as determined by the Board. More than one Option may be granted to an individual. 
  
 Section 6. Option Price. 
  
 (a) Non-Qualified
Options. The Option price or prices of shares of the Company’s Common Stock for Options designated as Non-Qualified Options shall be as determined by the Board, but in no event shall the Option price be less than eighty-five percent (85%)
of the fair market value of such Common Stock at the time the 
  

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 Option is granted as determined by the Board in accordance with the laws of the State of Maryland or the laws of any
jurisdiction in which the Company or its successors in interest may be organized. 
  
 (b) ISOs. The Option price or prices of shares of the Company’s Common Stock for ISOs shall be the fair market value of such Common Stock at the time the Option is granted as determined by the Board in
accordance with the Regulations promulgated under Section 422 of the Code as follows: 
  
 (i) If such shares are then listed on any national securities exchange, the fair market value shall be the mean between the high and low sales prices, if any, on such exchange on the date of the grant of the Option.

  
 (ii) If the shares are traded on the NASDAQ, the fair market
value of such shares shall be the mean between the high and low sales prices, if any, as reported in the NASDAQ for the date of the grant of the Option. 
  
 (iii) If the shares are not then either listed on any exchange or quoted in the NASDAQ, the fair market value shall be the average of the “Bid”
and “Ask” prices, if any, as reported in the National Daily Quotation Service for the date of the grant of the Option. If no sales occurred on the date of the grant, market value shall be determined by taking a weighted average of the
means between the highest and lowest sales prices or Bid/Ask prices as appropriate on the nearest date before and the nearest date after the date of grant in accordance with Treasury Regulations Section 25.2512-2. 
  
 (c) If the fair market value cannot be determined under the preceding
methods, it shall be determined in good faith by the Board. 
  
 Section 7.
Option Manner of Payment; Option Manner of Exercise. 
  
 (a) Options granted under the Plan may provide for the payment of the exercise price by delivery of: 
  
 (i) cash or a check payable to the order of the Company in an amount equal to the exercise price of such Options, 
  
 (ii) shares of Common Stock of the Company owned by the optionee having a
fair market value equal in amount to the exercise price of the Options being exercised, 
  
 (iii) any combination of (i) and (ii), provided, however, that payment of the exercise price by delivery of shares of Common Stock of the Company owned by such optionee may be made only under such circumstances and on
such terms as may from time to time be established by the Board and only if provided for in the Option 
  

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 Agreement. The fair market value of any shares of the Company’s Common Stock which may be delivered upon exercise of
an Option shall be determined by the Board in accordance with Section 6 hereof. Payment may also be made by delivery of a properly executed exercise notice to the Company, together with a copy of irrevocable instructions to a broker to deliver
promptly to the Company the amount of sale or loan proceeds to pay the exercise price if provided for in the Agreement. To facilitate the foregoing, the Company may enter into agreements for coordinated procedures with one or more brokerage firms,

  
 (iv) in consideration received by the Company under a formal
cashless exercise program maintained with an outside broker adopted by the Board in connection with the Plan, or 
  
 (v) by any other means approved by the Board. 
  
 (b) To the extent that the right to purchase shares under an Option has accrued and is in effect, Options may be exercised in full at one time or in part
from time to time, by giving written notice, signed by the person or persons exercising the Option, to the Company, stating the number of shares with respect to which the Option is being exercised, accompanied by payment in full for such shares as
provided in subparagraph (a) above. Upon such exercise, delivery of a certificate for paid-up non-assessable shares shall be made at the principal office of the Company to the person or persons exercising the Option at such time, during ordinary
business hours, after ten business days from the date of receipt of the notice by the Company, as shall be designated in such notice, or at such time, place and manner as may be agreed upon by the Company and the person or persons exercising the
Option. 
  
 Section 8. Exercise of Options. 
  
 Subject to the provisions of Sections 9 through 11 and 13, each Option
granted under the Plan shall be exercisable as follows: 
  
 (a)
Vesting. The Option shall either be fully exercisable on the date of grant or shall become exercisable thereafter in such installments as the Board may specify; 
  
 (b) Full Vesting of Installments. Once an installment becomes exercisable it shall remain exercisable until
expiration of the Option, unless otherwise specified by the Board; 
  
 (c) Partial Exercise. Each Option or installment may be exercised at any time or from time to time, in whole or in part, for up to the total number of shares with respect to which it is then exercisable; and 
  
 (d) Acceleration of Vesting. The Board shall have the right to
accelerate the 
  

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 date of exercise of any installment of any Option; provided that the Board shall not, without the consent of an optionee,
accelerate the exercise date of any installment of any Option granted to any employee as an ISO if such acceleration would violate the annual vesting limitation contained in Section 422(d) of the Code. The Board, in its sole discretion, shall have
the right to provide in any Agreement for the acceleration of the date of exercise of any installment of any Option granted hereunder upon the occurrence of any event or circumstance as the Board shall determine. 
  
 Section 9. Term of Options’ Exercisability. 
  
 (a) Term. Each Option shall expire not more than ten (10) years from
the date of the granting thereof but shall be subject to earlier termination as may be provided in any Agreement evidencing an Option granted hereunder. 
  
 (b) Exercisability. Subject to the provisions of Section 10 below, an Option granted to an employee optionee who ceases to be an employee of the
Company or one of its subsidiaries shall be exercisable only to the extent that the right to purchase shares under such Option has accrued and is in effect on the date such optionee ceases to be an employee of the Company or one of its subsidiaries.

  
 Section 10. Employee’s Post-Termination Exercise of Options

  
 (a) An Option will, to the extent not previously exercised by
an employee optionee, terminate three (3) months after the date on which optionee’s employment by the Company or an Affiliate is terminated (whether such termination be voluntary or involuntary) other than by reason of disability (as defined in
Section 22(e)(3) of the Code, and the Regulations thereunder), Cause (as defined below) or death. In the event of termination of employment due to disability or death, the Option will terminate one (1) year from the date of termination of employment
due to disability or death. In the event of termination of employment due to Cause, the Option will terminate immediately and automatically upon such termination. After the date optionee’s employment is terminated, as aforesaid, optionee may
exercise this Option only for the number of shares which optionee had a right to purchase and did not purchase on the date optionee’s employment terminated. If optionee is employed by an Affiliate, optionee’s employment shall be deemed to
have terminated on the date optionee’s employer ceases to be an Affiliate of the Company, unless optionee is on that date transferred to the Company or another Affiliate. Optionee’s employment shall not be deemed to have terminated if
optionee is transferred from the Company to an Affiliate, or vice versa, or from one Affiliate to another Affiliate. “Cause” means, in the absence of an employment, consulting or other agreement otherwise defining Cause and
applicable to a particular optionee: (i) incompetence, fraud, personal dishonesty, embezzlement or acts of gross negligence or gross misconduct on the part of optionee in the course of his or her employment or services, (ii) an optionee’s
engagement in conduct that is materially injurious to the Company or an Affiliate, (iii) an optionee’s 
  

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 conviction by a court of competent jurisdiction of, or pleading “guilty” or “no contest” to, (x) a
felony, or (y) any other criminal charge (other than minor traffic violations) which could reasonably be expected to have a material adverse impact on the Company’s or an Affiliate’s reputation or business; or (iv) willful failure by an
optionee to follow the lawful directions of a superior officer or the Board. 
  
 (b) If optionee dies while employed by the Company or an Affiliate, optionee’s executor or administrator, as the case may be, may, at any time within one (1) year after the date of optionee’s death, exercise
the Option as to any shares which optionee had a right to purchase and did not purchase during optionee’s lifetime. If optionee’s employment with the Company or an Affiliate is terminated by reason of optionee’s becoming disabled
(within the meaning of Section 22(e)(3) of the Code and the Regulations thereunder), optionee or optionee’s legal guardian or custodian may at any time within one (1) year after the date of such termination, exercise the Option as to any shares
which optionee had a right to purchase and did not purchase prior to such termination. Optionee’s executor, administrator, guardian or custodian must present proof of his or her authority satisfactory to the Company prior to being allowed to
exercise this Option. 
  
 Section 11. Transferability of Options.

  
 (a) An Option shall not be transferable except by will or by
the laws of descent and distribution and shall be exercisable during the lifetime of the optionee only by the optionee. Notwithstanding the foregoing, the optionee may, by delivering written notice to the Company, in a form satisfactory to the
Company, designate a third party who, in the event of the death of the optionee, shall thereafter be entitled to exercise the Option. 
  
 (b) Notwithstanding the foregoing, a Nonqualified Stock Option shall be transferable to the extent provided in the Option Agreement. 
  
 Section 12. Provisions of Stock Grants. 
  
 (a) Stock Bonus Grants. Each stock bonus grant shall be evidence by a
stock bonus agreement (“Stock Bonus Agreement”) duly executed on behalf of the Company and by the grantee, which Stock Bonus Agreement shall comply with and be subject to the terms and conditions of the Plan. The Stock Bonus Agreement
shall be in such form and shall contain such terms and conditions as the Board shall deem appropriate. The terms and conditions of Stock Bonus Agreements may change from time to time, and the terms and conditions of separate Stock Bonus Agreements
need not be identical, but each Stock Bonus Agreement shall include (through incorporation of provisions hereof by reference in the agreement or otherwise) the substance of each of the following provisions: 
  
 (i) Consideration. A stock bonus may be awarded in consideration for
past services actually rendered to the Company or an Affiliate for its benefit. 
  

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 (ii) Vesting. Shares of Common Stock awarded under the Stock Bonus Agreement may, but need not, be
subject to a share repurchase option or other restrictions in favor of the Company in accordance with a vesting schedule to be determined by the Board. 
  
 (iii) Termination of Stock Bonus Holder’s Employment. In the event a stock bonus grantee’s employment or other service with the Company
terminates, the Company may reacquire any or all of the shares of Common Stock held by the stock bonus grantee which have not vested as of the date of termination under the terms of the Stock Bonus Agreement. 
  
 (iv) Transferability. Rights to acquire shares of Common Stock under
the Stock Bonus Agreement shall be transferable by the stock bonus grantee only upon such terms and conditions as are set forth in the Stock Bonus Agreement, as the Board shall determine in its discretion, so long as Common Stock awarded under the
Stock Bonus Agreement remains subject to the terms of the Stock Bonus Agreement. 
  
 (b) Restricted Stock Purchase Grants. Each restricted stock purchase grant shall be evidence by a restricted stock purchase agreement (“Restricted Stock Purchase Agreement”) duly executed on behalf of
the Company and by the grantee, which Restricted Stock Purchase Agreement shall comply with and be subject to the terms and conditions of the Plan. The Restricted Stock Purchase Agreement shall be in such form and shall contain such terms and
conditions as the Board shall deem appropriate. The terms and conditions of the Restricted Stock Purchase Agreements may change from time to time, and the terms and conditions of separate Restricted Stock Purchase Agreements need not be identical,
but each Restricted Stock Purchase Agreement shall include (through incorporation of provisions hereof by reference in the agreement or otherwise) the substance of each of the following provisions: 
  
 (i) Purchase Price. Subject to the provisions of Section 4(c)
regarding 10% shareholders, the purchase price under each Restricted Stock Purchase Agreement shall be such amount as the Board shall determine and designate in such Restricted Stock Purchase Agreement. In no event, shall the purchase price shall be
less than eighty-five percent (85%) of the Common Stock’s fair market value on the date such grant is made or at the time the purchase is consummated. 
  
 (ii) Consideration. The purchase price of Common Stock acquired pursuant to the Restricted Stock Purchase Agreement shall be paid either: (A) in
cash at the time of purchase; (B) at the discretion of the Board, according to a deferred payment or other similar arrangement with the restricted stock purchase grantee; or (C) in any other form of legal consideration that may be acceptable to the
Board in its discretion. 
  

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 (iii) Vesting. Shares of Common Stock acquired under the Restricted Stock Purchase Agreement may,
but need not, be subject to a share repurchase option in favor of the Company in accordance with a vesting schedule to be determined by the Board. 
  
 (iv) Termination of Restricted Stock Purchase Grantee’s Service. In the event a restricted stock purchase grantee’s employment or other
service with the Company terminates, the Company may repurchase or otherwise reacquire any or all of the shares of Common Stock held by the restricted stock purchase grantee which have not vested as of the date of termination under the terms of the
Restricted Stock Purchase Agreement. 
  
 (v)
Transferability. Rights to acquire shares of Common Stock under the Restricted Stock Purchase Agreement shall be transferable by the restricted stock purchase grantee only upon such terms and conditions as are set forth in the Restricted
Stock Purchase Agreement, as the Board shall determine in its discretion, so long as Common Stock awarded under the Restricted Stock Purchase Agreement remains subject to the terms of the Restricted Stock Purchase Agreement. 
  
 Section 13. Adjustments. 
  
 (a) Upon the occurrence of any of the following events, an Award
holder’s rights with respect to Awards granted to him or her hereunder shall be adjusted as hereinafter provided, unless otherwise specifically provided in the written agreement between the Award holder and the Company relating to such Award:

  
 (i) Common Stock Dividends and Common Stock Splits. If
the shares of Common Stock shall be subdivided or combined into a greater or smaller number of shares or if the Company shall issue any shares of Common Stock as a stock dividend on its outstanding Common Stock, the number of shares of Common Stock
deliverable upon the exercise of Options shall be appropriately increased or decreased proportionately, and appropriate adjustments shall be made in the purchase price per share to reflect such subdivision, combination or stock dividend; and

  
 (ii) Recapitalization or Reorganization. In the event
of a recapitalization or reorganization of the Company (except as otherwise provided in any Option Agreement) pursuant to which securities of the Company or of another corporation are issued with respect to the outstanding shares of Common Stock, an
optionee upon exercising an Option shall be entitled to receive for the purchase price paid upon such exercise the securities the optionee would have received if the optionee had exercised the Option prior to such recapitalization or reorganization.

  
 (iii) Modification of ISOs. Notwithstanding the
foregoing, any adjustments made pursuant to subparagraphs (i) or (ii) with respect to ISOs shall be made only after the Board, after consulting with counsel for the Company, determines 
  

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 whether such adjustments would constitute a “modification” of such ISOs (as that term is defined in Section 424
of the Code) or would cause any adverse tax consequences for the holders of such ISOs. If the Board determines that such adjustments made with respect to ISOs would constitute a modification of such ISOs, it may refrain from making such adjustments.

  
 (iv) Dissolution or Liquidation. In the event of the
proposed dissolution or liquidation of the Company, each Option will terminate immediately prior to the consummation of such proposed action or at such other time and subject to such other conditions as shall be determined by the Board. 

 
 (v) Issuances of Securities. Except as expressly provided herein,
no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares subject to
Options. No adjustments shall be made for dividends paid in cash or in property other than securities of the Company. 
  
 (vi) Fractional Shares. No fractional share shall be issued under the Plan and the optionee shall receive from the Company cash in lieu of such
fractional shares. 
  
 (vii) Adjustments. Upon the
happening of any of the events described in subparagraphs (i) or (ii) above, the class and aggregate number of shares set forth in Section 2 and Section 4 hereof that are subject to Options which previously have been or subsequently may be granted
under the Plan shall also be appropriately adjusted to reflect the events described in such subparagraphs. The Board or Successor Board shall determine the specific adjustments to be made under this Section 13 and, subject to Section 3, its
determination shall be conclusive. 
  
 (b) If any person or entity
owning restricted Common Stock obtained by exercise of an Option made hereunder receives shares or securities or cash in connection with a corporate transaction described in subparagraphs (i) or (ii) above as a result of owning such restricted
Common Stock, such shares or securities or cash shall be subject to all of the conditions and restrictions applicable to the restricted Common Stock with respect to which such shares or securities or cash were issued, unless otherwise determined by
the Board or the Successor Board. 
  
 Section 14. No Special Employment
Rights. 
  
 Nothing contained in the Plan or in any Award
granted under the Plan shall confer upon any Award holder any right with respect to the continuation of his employment by the Company or an Affiliate or interfere in any way with the right of the Company or an Affiliate, subject to the terms of any
separate employment 
  

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 agreement to the contrary, at any time to terminate such employment or to increase or decrease the compensation of the
Award holder from the rate in existence at the time of the grant of an Award. Whether an authorized leave of absence, or absence in military or government service, shall constitute termination of employment shall be determined by the Board at the
time. 
  
 Section 15. Withholding Tax. 
  
 The Company’s obligation to deliver shares upon the exercise of any
Award granted under the Plan shall be subject to the Award holder’s satisfaction of all applicable Federal, state and local income, excise, employment and any other tax withholding requirements. The Company and employee may agree to withhold
shares of Common Stock purchased upon exercise of an Award to satisfy the above-mentioned withholding requirements. The Board shall also have the right to require that shares be withheld from delivery to satisfy such condition. 
  
 Section 16. Restrictions on Issue of Shares. 
  
 (a) Notwithstanding the provisions of Section 7, the Company may delay the
issuance of shares covered by an Award and the delivery of a certificate for such shares until one of the following conditions shall be satisfied: 
  
 (i) The shares with respect to which such Award has been granted are at the time of the issue of such shares effectively registered or qualified under
applicable Federal and state securities acts now in force or as hereafter amended; or 
  
 (ii) Counsel for the Company shall have given an opinion, which opinion shall not be unreasonably conditioned or withheld, that such shares are exempt from registration under applicable Federal and state securities
acts now in force or as hereafter amended. 
  
 (b) It is intended
that all Awards shall be effective, and the Company shall use its best efforts to bring about compliance with the above conditions within a reasonable time, except that the Company shall be under no obligation to qualify shares or to cause a
registration statement or a post-effective amendment to any registration statement to be prepared for the purpose of covering the issue of shares in respect of which any Award may be granted, except as otherwise agreed to by the Company in writing.

  
 Section 17. Purchase For Investment; Rights of Holder on Subsequent
Registration. 
  
 (a) Unless the shares to be issued in
connection with any Award granted under the Plan have been effectively registered or are exempt from registration under the Securities Act of 1933, as now in force or hereafter amended, the Company shall be 
  

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 under no obligation to issue any shares covered by any Award unless the Award holder shall give a written representation
and undertaking to the Company which is satisfactory in form and scope to counsel for the Company and upon which, in the opinion of such counsel, the Company may reasonably rely, that he or she is acquiring the shares issued pursuant to such Award
for his or her own account as an investment and not with a view to, or for sale in connection with, the distribution of any such shares, and that he or she will make no transfer of the same except in compliance with any rules and regulations in
force at the time of such transfer under the Securities Act of 1933, or any other applicable law, and that if shares are issued without such registration, a legend to this effect may be endorsed upon the securities so issued. 
  
 (b) In the event that the Company shall, nevertheless, deem it necessary or
desirable to register under the Securities Act of 1933 or other applicable statutes any shares with respect to which an Award shall have been granted, or to qualify any such shares for exemption from the Securities Act of 1933 or other applicable
statutes, then the Company may take such action and may require from each optionee such information in writing for use in any registration statement, supplementary registration statement, prospectus, or offering circular as is reasonably necessary
for such purpose and may require reasonable indemnity to the Company and its officers and directors and controlling persons from such holder against all losses, claims, damages and liabilities arising from such use of the information so furnished
and caused by any untrue statement of any material fact therein or caused by the omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances under which
they were made. 
  
 Section 18. Modification of Outstanding Awards.

  
 The Board may authorize the amendment of any outstanding
Award with the consent of the optionee when and subject to such conditions as are deemed to be in the best interests of the Company and in accordance with the purposes of this Plan. 
  
 Section 19. Approval of Stockholders. 
  
 The Plan shall be subject to approval by the vote of stockholders holding at least a majority of the voting stock of the Company present, or represented,
and entitled to vote at a duly held stockholders’ meeting, or by written consent of stockholders holding at least a majority of the voting stock of the Company, within twelve (12) months after the adoption of the Plan by the Board and shall
take effect as of the date of adoption by the Board upon such approval. The Board may grant Awards under the Plan prior to such approval, but any such Award shall become effective as of the date of grant only upon such approval and, accordingly, no
such Option may be exercisable prior to such approval. 
  

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 Section 20. Termination and Amendment. 
  
 (a) Unless sooner terminated as herein provided, the Plan shall terminate ten (10) years from the date upon which the Plan
was duly adopted by the Board of the Company. The Board may at any time terminate the Plan or make such modification or amendment thereof as it deems advisable; provided, however, that except as provided in this Section 21, the Board may not,
without the approval of the stockholders of the Company obtained in the manner stated in Section 20, increase the maximum number of shares for which Awards may be granted or change the designation of the class of persons eligible to receive Awards
under the Plan, or make any other change in the Plan which requires stockholder approval under applicable law or regulations or any applicable rule or regulation of any stock exchange or over-the-counter market on which the Company’s Common
Stock is then listed. The Board may grant Awards under the Plan prior to such approval, but any such Award shall become effective as of the date of grant only upon such approval and, accordingly, no such Award may be exercisable prior to such
approval. 
  
 (b) The Board may terminate, amend or modify any
outstanding Award without the consent of the Award holder, provided, however, that, except as provided in Section 13, without the consent of the optionee, the Board shall not change the number of shares subject to an Award, nor the exercise price
thereof, nor extend the term of such Award. 
  
 Section 21. Reservation of
Common Stock. 
  
 The Company shall at all times during the
term of the Plan reserve and keep available such number of shares of stock as will be sufficient to satisfy the requirements of the Plan and shall pay all fees and expenses necessarily incurred by the Company in connection therewith. 
  
 Section 22. Limitation of Rights in the Award Shares. 
  
 An optionee shall not be deemed for any purpose to be a stockholder of the
Company with respect to any of the Awards except to the extent that the Award shall have been exercised with respect thereto and, in addition, a certificate shall have been issued theretofore and delivered to the optionee. 
  
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 2005 Equity Incentive Plan 
 - 13 - 

 Plan Adopted by the Board on January 27, 2005 
  
 Plan Approved by the Stockholders on May 23, 2005 
  

 2005 Equity Incentive Plan 
 - 14 -

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