Document:

March 20, 2007

LocatePLUS Corporation
100 Cummings Center, Suite 235 M
Beverly, MA 01915
Office 978-921-2727

Re: Payoff and Settlement Letter

Dear Messrs. Latorella & Fields:

Reference  is  made  to  that  certain  Debenture Agreement, Security Agreement,
Debenture  Registration  Rights  Agreement,  and  Subscription  Agreement,  each
effective as of December 30, 2005 and that certain Debenture Agreement, Security
Agreement,  Debenture  Registration  Rights Agreement and Subscription Agreement
dated  July  18,  2006  (collectively, the "Loan Documents"), between LocatePlus
Holdings  Corporation  (the  "Company"  or  "you") and Dutchess Private Equities
Fund,  L.P.  and  Dutchess  Private  Equities  Fund,  II,  LP (collectively, the
"Dutchess"  or  "we").  The  Company  and  Dutchess  are  hereinafter  sometimes
collectively  referred to as the "Parties" and each a "Party" to this Agreement.

Capitalized  terms  used  herein and not otherwise defined herein shall have the
respective  meanings  set  forth  in the Loan Documents, and are incorporated by
reference.

The  parties  are  entering  into  this  agreement to settle a dispute regarding
amounts  claimed  to  be  owing by Company to Dutchess under the Loan Documents.

The  Company  hereby  represents  that  a  closing  on  a  subsequent  financing
("Subsequent  Financing")  shall occur on or before March 20, 2007 (the "Closing
Date").

NOWTHEREFORE,  for  the  mutual  consideration set out herein and other good and
valuable  consideration,  the legal sufficiency of which is hereby acknowledged,
the  parties  agree  to  the  following;

1)     The  Company  and  the  Dutchess  hereby agree that upon the date of this
Letter, Dutchess is hereby owed (i) a new convertible debenture, attached hereto
as  Exhibit  A  and incorporated by reference, in the amount of one million five
hundred  thousand dollars ($1,500,000) ("March 2007 Convertible Debenture") (ii)
an adjustment of the exercise price for the Warrants dated December 30, 2005 and
July  18,  2006  between  the  Dutchess and Company and (iii) the following cash
payments  ("Payment  Amount")  on  the  terms  and  conditions  outlined herein:

<PAGE>
a.     Payment in immediately available funds of $1,500,000 by wire transfer to
the Dutchess' bank account at the earlier of 1) the closing of a Subsequent
Financing or 2) the Closing Date ("First Payment").
b.     Payment  in  immediately  available funds of $300,000 by wire transfer to
the  Dutchess'  bank account on the date which is the earlier of 1) 45 days from
the  Closing  Date  or  2)  the  date the Company files a registration statement
covering  the  resale  of  securities  for  the  Subsequent  Financing.
c.     Payment  in  immediately  available funds of $300,000 by wire transfer to
the  Dutchess' bank account on the date which is the earlier of 1) 145 days from
the  Closing  Date  or  2) the date the Company's registration statement for the
Subsequent  Financing  is  declared  effective  by  the  SEC.

2)     Upon  both  (i) the First Payment to Dutchess, and (ii) the execution and
delivery  of  the  March  2007  Convertible Debenture, Dutchess hereby agrees to
relinquish  any  rights  to:

a.      all  of  our  liens on, and security interests in, all of the assets and
properties  of  the Company and any other assets or properties pledged to us for
the  benefit  of  the  Company,  shall  terminate  automatically;  and we hereby
authorize you or any person authorized by you to file termination statements for
any  Uniform  Commercial  Code Financing Statements, or comparable forms, in any
jurisdiction  listing  Dutchess  as  a  secured  party  and  the Company, or any
subsidiary  of  the Company as a debtor without any further action by us; and we
also  hereby  agree to promptly, but in any event within three (3) business days
after the date hereof, deliver to you or as you shall direct any of your or such
other  person's  assets  that  we  are  holding  as  Pledged  Property;

3)     The  Warrants  issued  by the Company to Dutchess dated December 30, 2005
and  July  18,  2006  to  purchase  a total of 1,125,000 shares of the Company's
common  stock shall be deemed automatically amended such that the Exercise Price
shall  be  equal  to  the  ten  cents  ($.10)  per  share.

4)     In furtherance of the foregoing, upon receipt of the entire Payout Amount
and  the  other  deliveries  referred  to above, Dutchess and Company, and their
respective  officers,  directors,  stockholders,  attorneys,  members,  agents,
representatives, employees, subsidiaries, affiliates, partners, predecessors and
successors in interest, and assigns and all other persons, firms or corporations
with  whom  any  of  the  former  have been, or are now, affiliated (hereinafter
"Releasors")  hereby  completely  release  and  forever discharge each other and
their  respective officers, directors, stockholders, attorneys, members, agents,
representatives, employees, subsidiaries, affiliates, partners, predecessors and
successors  in  interest, and assigns and all other persons, firms, associations
or  corporations  with  whom any of the former have been, or are now, affiliated
(hereinafter  "Releasees")  of  and  from  any  and all past and present claims,
demands,  actions, causes of action, debts and dues both in law and in equity of
any  nature  or  description  whatsoever,

<PAGE>
whether  now  known  or  unknown,  anticipated  or  unanticipated,  asserted  or
unasserted,  whether  based on statute, contract, tort, or otherwise, on account
of  or  in  any  way growing out of, related to, resulting or to result from the
Loan  Documents.  Dutchess agrees to execute and deliver from time to time after
receipt  of  the  Payment  Amount  and  other  deliveries  referred to above any
documents,  at your expense, as shall be reasonably requested by you to evidence
such release and termination. This letter agreement shall be a fully binding and
complete  settlement  and  release  between Dutchess, Company and Releasees with
respect  to the matters addressed herein upon receipt by Dutchess of the Payment
Amount  and  other  deliveries  referred  to  above.

5)     The  parties  warrant  and  represent  that:

(i)  the  parties have been fully informed and have full knowledge of the terms,
conditions,  and effects of this agreement, and have read this agreement and are
executing  it  under  advice  of  counsel;

(ii)  the  parties  have  investigated, to each party's satisfaction, all of the
facts  surrounding  the  various  claims,  controversies,  and  disputes and are
satisfied  with  the  terms  and  effects  of  this  agreement;

(iii)  the  parties  have  executed  and  agreed to this agreement as a complete
compromise of matters involving disputed issues of law and fact and fully assume
the  risk  that  the  facts  or  law  may  be  other  than  they  believe;  and

(iv)  no relative, or other person or entity, has or has had any interest in the
claims, demands, obligations, or causes of action referred to in this agreement;
that  they have the sole right and exclusive authority to execute this agreement
and  pay  or  receive  the  sums  specified  in it; and that they have not sold,
assigned,  transferred,  conveyed  or  otherwise  disposed of any of the claims,
demands,  obligations  or  causes  of  actions  referred  to  in this agreement.

6)     The  parties  agree  and  acknowledge  that  this agreement is a full and
complete  compromise  of  all matters involving disputed issues and that neither
this  agreement  nor  the  negotiations  for  this  settlement  (including  all
statements,  admissions  or  communications)  by  Dutchess  or  Company or their
attorneys  or  representatives  shall  be  considered  admissions by any of said
parties,  and that no past or present wrongdoing or liability on the part of any
party  shall  be  implied  by  such  settlement  or  negotiations.

7)     The Company hereby agrees that all sales of the Company's common stock by
Dutchess  underlying  the March 2007 Convertible Debenture or the Warrants shall
be deemed sellable under Rule 144 at such time as Rule 144 applies.  The Company
hereby  agrees  that  the  original  date  of  consideration  will apply for the
Warrants.  The  Company  shall provide an opinion letter from counsel within ten

<PAGE>
(10) business days of written request by the Dutchess.  In the event the Company
does  not deliver the opinion letter within ten business days, the Company shall
be charged one thousand dollars ($1,000) for each business day an opinion letter
fails  to  be  delivered.  In  the  event  that  counsel to the Company fails or
refuses  to render an opinion as required to issue the Shares in accordance with
this  section,  then the Company irrevocably and expressly authorizes counsel to
Dutchess to render such opinion and shall authorize the Transfer Agent to accept
and  to  rely on such opinion for the purposes of issuing the Shares.  Any costs
incurred  by  Holder  for such opinion letter shall be the responsibility of the
Company.

8)     After  the Closing Date, the Company must make a Prepayment to the Holder
if the aggregate amount of financing ("Financing") received by the Company is in
excess  of  five million seven hundred thousand dollars ($5,700,000) ("Threshold
Amount")  prior  to  the  payment  deadlines outlined in 1), above.  The Company
agrees  to  pay  twenty five percent (25%) of any proceeds raised by the Company
over  the  Threshold  Amount  toward  the Prepayment of the Payment Amount.  The
Prepayments  shall  be  made  to  the  Holder within one (1) business day of the
Company's  receipt  of  the  Financing.

9)     Please  indicate  your agreement to the foregoing by signing in the space
provided  below.  This  agreement may be executed in any number of counterparts,
each  of  which when so executed and delivered shall be deemed to be but one and
the  same  agreement.  Delivery  by any party hereto of a signature page to this
agreement  by facsimile shall be effective as delivery of a counterpart manually
executed  by  such  party of this agreement. This agreement shall be governed by
the  laws  of  the  Commonwealth  of  Massachusetts without giving effect to its
choice  of  law  principles.

                   [Balance of page left blank intentionally]

<PAGE>

Very truly yours,

DUTCHESS PRIVATE EQUITIES FUND, LTD.
AS SUCCESSOR IN INTEREST TO:
DUTCHESS PRIVATE EQUITIES FUND, LP &
DUTHCESS PRIVATE EQUITIES FUND, II, LP

By:/s/ Douglas H. Leighton
Name: Douglas H. Leighton
Title: Director

AGREED:

<PAGE>
LOCATEPLUS HOLDINGS CORPORATION

By: /s/ Jon Latorella
Name: Jon Latorella
Title: CEO

By:/s/ James Fields
Name: James Fields
Title: CFOULURU Inc. 2006 Equity Incentive Plan

    
      

      

    

    

      EXHIBIT
        4.1

      

      ULURU
        INC.

      2006
        Equity Incentive Plan

      

      ARTICLE
        I

      GENERAL

      

      1.1      
Purpose.
        The purpose of the Plan is to provide additional incentive to employees,
        officers and directors of Uluru Inc. ("Corporation"). It is intended that
        Awards
        granted under the Plan strengthen the desire of such persons to remain in
        the
        employ or act as directors of the Corporation and stimulate their efforts
        on
        behalf of the Corporation.

      

      
        	
                1.2

              	
                Effective
                  Date; Term. The Plan is effective as of the date on which the Plan
                  was
                  adopted by the Board, subject to approval of the stockholders within
                  twelve months before or after such date. No Award shall be granted
                  under
                  the Plan after the close of business on the day immediately preceding
                  the
                  tenth anniversary of the effective date of the Plan. Subject to
                  other
                  applicable provisions of the Plan, all Awards made under the Plan
                  prior to
                  such termination of the Plan shall remain in effect until such
                  Awards have
                  been satisfied or terminated in accordance with the Plan and the
                  terms of
                  such Awards.

              

      

      

      
        	
                1.3

              	
                Shares
                  Subject to the Plan. Subject to adjustments as provided in Article
                  IX, the
                  number of shares of Stock that may be delivered, purchased or used
                  for
                  reference purposes (with respect to SARs or Stock Units) with respect
                  to
                  Awards granted under the Plan shall be 2,000,000 shares. If any
                  Award, or
                  portion of an Award, under the Plan expires or terminates unexercised,
                  becomes unexercisable or is forfeited or otherwise terminated,
                  surrendered
                  or canceled as to any shares without the delivery of shares of
                  Stock or
                  other consideration, the shares subject to such Award shall thereafter
                  be
                  available for further Awards under the
                  Plan.

              

      

      

      ARTICLE
        II

      DEFINITIONS

      

      For
        purposes of the Plan, the following terms shall be defined as set forth
        below.

      

      
        	
                2.1

              	
                Administrator
                  means the Compensation Committee or any other committee which is
                  designated by the Board as the "Administrator."

              

      

      

      
        	
                2.2

              	
                Award
                  means any Stock Options (including ISOs and NSOs), SARs (including
                  free-standing and tandem SARs), Restricted Stock Awards, Stock
                  Units, or
                  any combination of the foregoing granted pursuant to the Plan,
                  except,
                  however, when the term is being used under the Plan with respect
                  to a
                  particular category of grant in which case it shall only refer
                  to that
                  particular category of grant.

              

      

      

      2.3   Board
        means the Board of Directors of the Corporation.

      

      2.4   Code
        means the Internal Revenue Code of 1986, as amended.

      

      
        	
                2.5

              	
                Fair
                  Market Value of the Stock on any given date means the average of
                  the high
                  and low price of a share of Stock, as traded on a national securities
                  exchange.

              

      

       

      
        	
                2.6

              	
                Grant
                  Agreement means the agreement between the Corporation and the Participant
                  pursuant to which the Corporation authorizes an Award hereunder.
                  Each
                  Grant Agreement entered into between the Corporation and a Participant
                  with respect to an Award granted under the Plan shall contain such
                  provisions, consistent with the provisions of the Plan, as may
                  be
                  established by the
                  Administrator.

              

      

      
        
          
          

        

        
          -
            1
            -

          
            

          

        

        
          
          

        

      

      

      
        	
                2.7

              	
                Grant
                  Date means the date on which the Administrator formally acts to
                  grant an
                  Award to a Participant or such other date as the Administrator
                  shall so
                  designate at the time of taking such formal
                  action.

              

      

      

      
        	
                2.8

              	
                ISO
                  means any Stock Option designated and qualified as an "incentive
                  stock
                  option" as defined in Code section
                  422.

              

      

      

      
        	
                2.9

              	
                NSO
                  means any Option that is not an
                  ISO.

              

      

      

      
        	
                2.10

              	
                Option
                  means any option to purchase shares of Stock granted under Article
                  V.

              

      

      

      
        	
                2.10

              	
                Parent
                  means a corporation, whether now or hereafter existing, within
                  the meaning
                  of the definition of "parent corporation" provided in Code section
                  424(e),
                  or any successor to such
                  definition.

              

      

      

      
        	
                2.11

              	
                Participant
                  means any person to whom any Award is granted pursuant to the
                  Plan.

              

      

      

      
        	
                2.12

              	
                Restricted
                  Stock Award means any Award of shares of restricted Stock granted
                  pursuant
                  to Article VII of the Plan.

              

      

      

      
        	
                2.13

              	
                SAR
                  means a stock appreciation right, as awarded under Article
                  VI.

              

      

      

      
        	
                2.14

              	
                Stock
                  means the voting common stock of the Corporation, subject to adjustments
                  pursuant to the Plan.

              

      

      

      
        	
                2.15

              	
                Stock
                  Unit means credits to a bookkeeping reserve account solely for
                  accounting
                  purposes, where the amount of the credit shall equal the Fair Market
                  Value
                  of a share of Stock on the date of grant (unless the Administrator
                  provides otherwise in the Grant Agreement) and which shall be subsequently
                  increased or decreased to reflect the Fair Market Value of a share
                  of
                  Stock. Stock Units do not require segregation of any of the Corporation's
                  assets. Stock Units are awarded under Article
                  VII.

              

      

      

      
        	
                2.16

              	
                Subsidiary
                  means any corporation or other entity (other than the Corporation)
                  in any
                  unbroken chain of corporations or other entities, beginning with
                  the
                  Corporation, if each of the corporations or entities (other than
                  the last
                  corporation or entity in the unbroken chain) owns stock or other
                  interests
                  possessing 50% or more of the economic interest or the total combined
                  voting power of all classes of stock or other interests in one
                  of the
                  other corporations or entities in the
                  chain.

              

      

      

      ARTICLE
        III

      ADMINISTRATION

      

      
        	
                3.1

              	
                General.
                  The Plan shall be administered by the Administrator. The Administrator's
                  determinations under the Plan (including without limitation determinations
                  of the persons to receive Awards, the form, amount and timing of
                  such
                  Awards, the terms and provisions of such Awards and the agreements
                  evidencing same) need not be uniform and may be made by the Administrator
                  selectively among persons who receive, or are eligible to receive,
                  Awards
                  under the Plan, whether or not such persons are similarly
                  situated.

              

      

       

      
        	
                3.2

              	
                Duties.
                  The Administrator shall have full power and authority to administer
                  and
                  interpret the Plan and to adopt such rules, regulations, agreements,
                  guidelines and instruments for the administration of the Plan and
                  for the
                  conduct of its business as the Administrator deems necessary or
                  advisable,
                  all within the Administrator's sole and absolute discretion. The
                  Administrator shall have full power and authority to take all other
                  actions necessary to carry out the purpose and intent of the Plan,
                  including, but not limited to, the authority to:
                  

              

      

      
        
          
          

        

        
          -
            2
            -

          
            

          

        

        
          
          

        

      

      

      	(a)  	
              construe
                the Plan and any Award under the Plan;

            

      

      	(b)  	
              select
                the officers and directors to whom Awards may be granted and the
                time or
                times at which Awards shall be granted;

            

      

      	(c)  	
              determine
                the number of shares of Stock to be covered by or used for reference
                purposes for any Award;

            

      

      	(d)  	
              determine
                and modify from time to time the terms and conditions, including
                restrictions, of any Award (including provisions that would allow
                for
                cashless exercise of Awards and/or reduction in the exercise price
                of
                outstanding Awards) and to approve the form of written instrument
                evidencing Awards;

            

      

      	(e)  	
              accelerate
                or otherwise change the time or times at which an Award becomes vested
                or
                when an Award may be exercised or becomes payable and to waive or
                accelerate the lapse, in whole or in part, of any restriction or
                condition
                with respect to such Award, including, but not limited to, any restriction
                or condition with respect to the vesting or exercisability of an
                Award
                following a Participant's termination of employment or
                death;

            

      

      	(f)  	
              impose
                limitations on Awards, including limitations on transfer and repurchase
                provisions; and

            

      

      	(g)  	
              modify,
                extend or renew outstanding Awards, or accept the surrender of outstanding
                Awards and substitute new Awards.

            

      

      ARTICLE
        IV

      ELIGIBILITY
        AND PARTICIPATION

      

      
        	
                4.1

              	
                Eligibility.
                  Officers, directors, employees and non-employee service providers
                  of the
                  Corporation shall be eligible to participate in the
                  Plan.

              

      

      

      ARTICLE
        V

      STOCK
        OPTIONS

      

      
        	
                5.1

              	
                General.
                  Subject to the other applicable provisions of the Plan, the Administrator
                  may from time to time grant to eligible Participants Awards of
                  ISOs or
                  NSOs. The ISO or NSO Awards granted shall be subject to the following
                  terms and conditions.

              

      

      

      
        	
                5.2

              	
                Grant
                  of Option. The grant of an Option shall be evidenced by a Grant
                  Agreement,
                  executed by the Corporation and the Participant, describing the
                  number of
                  shares of Stock subject to the Option, whether the Option is an
                  ISO or
                  NSO, the Exercise Price of the Option, the vesting period for the
                  Option
                  and such other terms and conditions that the Administrator deems,
                  in it
                  sole discretion, to be appropriate, provided that such terms and
                  conditions are not inconsistent with the
                  Plan.

              

      

       

      
        	
                5.3

              	
                Price.
                  The price per share payable upon the exercise of each Option (the
                  "Exercise Price") shall be determined by the Administrator and
                  set forth
                  in the Grant Agreement; provided, however, that in the case of
                  ISOs, the
                  Exercise Price shall not be less than 100% of the Fair Market Value
                  of the
                  shares on the Grant Date.

              

      

      

      
        	
                5.4

              	
                Payment.
                  Options may be exercised in whole or in part by payment of the
                  Exercise
                  Price of the shares to be acquired in accordance with the provisions
                  of
                  the Grant Agreement, and/or such rules and regulations as the
                  Administrator may prescribe, and/or such determinations, orders,
                  or
                  decisions as the Administrator may
                  make.

              

      

      
        
          
          

        

        
          -
            3
            -

          
            

          

        

        
          
          

        

      

      

      
        	
                5.5

              	
                Terms
                  of Options. The term during which each Option may be exercised
                  shall be
                  determined by the Administrator; provided, however, that in no
                  event shall
                  an ISO be exercisable more than ten years from the date it is
                  granted.

              

      

      

      
        	
                5.6 

              	
                Reload
                  Options. The terms of an Option may provide for the automatic grant
                  of a
                  new Option Award when the Exercise Price of the Option and/or any
                  related
                  tax withholding obligation is paid by tendering shares of
                  Stock.

              

      

      

      
        	
                5.7

              	
                Restrictions
                  on ISOs. ISO Awards granted under the Plan shall comply in all
                  respects
                  with Code section 422 and, as such, shall meet the following additional
                  requirements:

              

      

      

      	(a)  	
              Grant
                Date. An ISO must be granted within ten (10) years of the earlier
                of the
                Plan's adoption by the Board of Directors or approval by the Corporation's
                shareholders.

            

      

      	(b)  	
              Exercise
                Price and Term. The Exercise Price of an ISO shall not be less than
                100%
                of the Fair Market Value of the shares on the date the Option is
                granted
                and the term of the Option shall not exceed ten (10) years.
                Notwithstanding the immediately preceding sentence, the Exercise
                Price of
                any ISO granted to a Participant who owns, within the meaning of
                Code
                section 422(b)(6), after application of the attribution rules in
                Code
                section 424(d), more than ten percent (10%) of the total combined
                voting
                power of all classes of shares of the Corporation, or its Parent
                or
                Subsidiary corporations, shall be not less than 110% of the Fair
                Market
                Value of the Stock on the Grant Date and the term of such ISO shall
                not
                exceed five (5) years.

            

      

      	(c)  	
                Maximum
                Grant. The aggregate Fair Market Value (determined as of the Grant
                Date)
                of shares of Stock with respect to which all ISOs first become exercisable
                by any Participant in any calendar year under this or any other plan
                of
                the Corporation and its Parent and Subsidiary corporations may not
                exceed
                $100,000 or such other amount as may be permitted from time to time
                under
                Code section 422. To the extent that such aggregate Fair Market Value
                shall exceed $100,000, or other applicable amount, such Options shall
                be
                treated as NSOs. In such case, the Corporation may designate the
                shares of
                Stock that are to be treated as stock acquired pursuant to the exercise
                of
                an ISO by issuing a separate certificate for such shares and identifying
                the certificate as ISO shares in the stock transfer records of the
                Corporation.

            

      

      	(d)  	
               Participant.
                ISOs shall only be issued to employees of the Corporation, or of
                a Parent
                or Subsidiary of the Corporation.

            

      

      	(e)  	
              Tandem
                Options Prohibited. An ISO may not be granted in tandem with a NSO
                in such
                a manner that the exercise of one affects a Participant's right to
                exercise the other.

            

      

      	(f)  	
              Designation.
                No option shall be an ISO unless so designated by the Administrator
                at the
                time of grant or in the Grant Agreement evidencing such
                Option.

            

       

      5.8    Exercisability.
        Options shall be exercisable as provided in the Grant Agreement.

      

      5.9    Transferability.
        ISOs shall be non-transferable. Except as provided in the Grant Agreement,
        NSOs
        shall 

      not
        be
        assignable or transferable by the Participant, except by will or by the laws
        of
        descent and distribution.

      

      ARTICLE
        VI

      STOCK
        APPRECIATION RIGHTS

      

      
        	
                6.1    

              	
                Award
                  of SARs. Subject to the other applicable provisions of the Plan,
                  the
                  Administrator may at any time and from time to time grant SARs
                  to eligible
                  Participants, either on a free-standing basis (without regard to
                  or in
                  addition to the grant of an Option) or on a tandem basis (related
                  to the
                  grant of an underlying Option).

              

      

      
        
          
          

        

        
          -
            4
            -

          
            

          

        

        
          
          

        

      

      

      
        	
                6.2   

              	
                Restrictions
                  on Tandem SARs. ISOs may not be surrendered in connection with
                  the
                  exercise of a tandem SAR unless the Fair Market Value of the Stock
                  subject
                  to the ISO is greater than the Exercise Price for such ISO. SARs
                  granted
                  in tandem with Options shall be exercisable only to the same extent
                  and
                  subject to the same conditions as the related Options are exercisable.
                  The
                  Administrator may, in its discretion, prescribe additional conditions
                  to
                  the exercise of any such tandem
                  SAR.

              

      

      

      
        	
                6.3    

              	
                Amount
                  of Payment Upon Exercise of SARs. A SAR shall entitle the Participant
                  to
                  receive, subject to the provisions of the Plan and the Grant Agreement,
                  a
                  payment having an aggregate value equal to the product of (i) the
                  excess
                  of (A) the Fair Market Value on the exercise date of one share
                  of Stock
                  over (B) the base price per share specified in the Grant Agreement,
                  times
                  (ii) the number of shares specified by the SAR, or portion thereof,
                  which
                  is exercised. In the case of exercise of a tandem SAR, such payment
                  shall
                  be made in exchange for the surrender of the unexercised related
                  Option
                  (or any portions thereof which the Participant from time to time
                  determines to surrender for this
                  purpose).

              

      

      

      
        	
                6.4  

              	
                Form
                  of Payment Upon Exercise of SARs. Payment by the Corporation of
                  the amount
                  receivable upon any exercise of a SAR may be made by the delivery
                  of Stock
                  or cash, or any combination of Stock and cash, as determined in
                  the sole
                  discretion of the Administrator.

              

      

      

      
        	
                6.5  

              	
                Transferability.
                  SARs shall be transferable only as provided in the Grant
                  Agreement.

              

      

      

      ARTICLE
        VII

      RESTRICTED
        STOCK AND STOCK UNITS

      

      
        	
                7.1   

              	
                Grants.
                  Subject to the other applicable provisions of the Plan, the Administrator
                  may grant Restricted Stock or Stock Units to Participants in such
                  amounts
                  and for such consideration, including no consideration or such
                  minimum
                  consideration as may be required by law, as it determines. Such
                  Awards
                  shall be made pursuant to a Grant
                  Agreement.

              

      

      

      
        	
                7.2    

              	
                Terms
                  and Conditions. A Restricted Stock Award entitles the recipient
                  to acquire
                  shares of Stock and a Stock Unit Award entitles the recipient to
                  be paid
                  the Fair Market Value of the Stock on the exercise date. Stock
                  Units may
                  be settled in Stock, cash or a combination thereof, as determined
                  by the
                  Administrator. Restricted Stock Awards and Stock Unit Awards are
                  subject
                  to vesting periods and other restrictions and conditions as the
                  Administrator may include in the Grant
                  Agreement.

              

      

       

      
        	
                7.3    

              	
                Restricted
                  Stock.

              

      

      

      	(a)  	
              The
                Grant Agreement for each Restricted Stock Award shall specify the
                applicable restrictions on such shares of Stock, the duration of
                such
                restrictions, and the times at which such restrictions shall lapse
                with
                respect to all or a specified number of shares of Stock that are
                part of
                the Award. Notwithstanding the foregoing, the Administrator may reduce
                or
                shorten the duration of any restriction applicable to any shares
                of Stock
                awarded to any Participant under the
                Plan.

            

      

      

      	(b)  	
              Share
                certificates with respect to restricted shares of Stock may be issued
                at
                the time of grant of the Restricted Stock Award, subject to forfeiture
                if
                the restrictions do not lapse, or upon lapse of the restrictions.
                If share
                certificates are issued at the time of grant of the Restricted Stock
                Award, the certificates shall bear an appropriate legend with respect
                to
                the restrictions applicable to such Restricted Stock Award (as described
                in Section 11.1) or, alternatively, the Participant may be required
                to
                deposit the certificates with the Corporation during the period of
                any
                restriction thereon and to execute a blank stock power or other instrument
                of transfer.

            

      

      .

      	(c)  	
              The
                extent of the Participant's rights as a shareholder with respect
                to the
                Restricted Stock shall be specified in the Grant
                Agreement.

            

      
        
          
          

        

        
          -
            5
            -

          
            

          

        

        
          
          

        

      

      

      
        	
                7.4   

              	
                Stock
                  Units.

              

      

      

      	(a)  	
              The
                grant of Stock Units shall be evidenced by a Grant Agreement that
                states
                the number of Stock Units evidenced thereby and the terms and conditions
                of such Stock Units.

            

      

      

      	(b)  	
              Stock
                Units may be exercised in the manner described in the Grant
                Agreement.

            

      

      	(c)  	
              The
                extent of the Participant's rights as a shareholder with respect
                to the
                Stock Units shall be specified in the Grant
                Agreement.

            

      

      
        	
                7.5  

              	
                Transferability.
                  Unvested Restricted Stock Awards or Stock Units may not be sold,
                  assigned,
                  transferred, pledged or otherwise encumbered or disposed of except
                  as
                  specifically provided in the Grant
                  Agreement.

              

      

      

      ARTICLE
        VIII

      TAX
        WITHHOLDING

      

      8.1    Corporation's
        Right to Demand Payment for Withholding.

      

      	(a)  	
              Subject
                to subparagraph (b), as a condition to taking any action otherwise
                required under the Plan or any Grant Agreement, the Corporation shall
                have
                the right to require assurance that the Participant will remit to
                the
                Corporation when required an amount sufficient to satisfy federal,
                state
                and local tax withholding requirements. The Administrator may permit
                such
                withholding obligations to be satisfied through cash payment by the
                Participant, through the surrender of shares of Stock which the
                Participant already owns, through the surrender of shares of Stock
                to
                which the Participant is otherwise entitled under the Plan or through
                any
                other method determined by the
                Administrator.

            

      

      

      	(b)  	
               If
                a Participant makes a disposition of shares of Stock acquired upon
                the
                exercise of an ISO within either two (2) years after the Option was
                granted or one (1) year after its exercise by the Participant, the
                Participant shall promptly notify the Corporation and the Corporation
                shall have the right to require the Participant to pay to the Corporation
                an amount sufficient to satisfy federal, state and local tax withholding
                requirements.

            

       

      ARTICLE
        IX

      CORPORATE
        TRANSACTIONS

      

      9.1     Adjustments
        Due to Special Circumstances.

      

      	(a)  	
              In
                the event of any change in the capital structure or business of the
                Corporation by reason of any stock dividend or extraordinary dividend,
                stock split or reverse stock split, recapitalization, reorganization,
                merger, consolidation, split-up, combination or exchange of shares,
                non-cash distributions with respect to its outstanding Stock,
                reclassification of the Corporation's capital stock, any sale or
                transfer
                of all or part of the Corporation's assets or business, or any similar
                change affecting the Corporation's capital structure or business
                or the
                capital structure of any business of any Subsidiary, as determined
                by the
                Administrator, if the Administrator determines that an adjustment
                is
                equitable, then the Administrator may make such adjustments as it
                deems
                equitable with respect to the Plan and Awards, including, without
                limitation, in: (i) the number of shares of Stock that can be granted
                or
                used for reference purposes pursuant to the Plan; (ii) the number
                and kind
                of shares or other securities subject to any then outstanding Awards
                under
                the Plan; and (iii) the exercise price, base price, or purchase price
                applicable to outstanding Awards under the Plan. The adjustment by
                the
                Administrator shall be final, binding and
                conclusive.

            

      
        
          
          

        

        
          -
            6
            -

          
            

          

        

        
          
          

        

      

      

      

      	(b)  	
              The
                Administrator may cancel outstanding Awards, but not outstanding
                Stock or
                Restricted Stock Awards, in connection with any merger, consolidation
                of
                the Corporation, or any sale or transfer of all or part of the
                Corporation's assets or business, or any similar event. The Administrator
                may determine to make no compensation whatsoever for any canceled
                Awards
                that are not in-the-money (as hereinafter defined) or for any canceled
                Awards to the extent not vested. The Corporation shall provide payment
                in
                cash or other property for the in-the-money value of the vested portion
                of
                Awards that are in-the-money and that are canceled as aforesaid.
                Awards
                are "in-the-money" only to the extent of their then realizable market
                value, without taking into account the potential future increase
                in the
                value of the Award (whether under Black-Scholes-type formulas or
                otherwise). The opinion by the Administrator of the in-the-money
                value of
                any Award shall be final, binding and
                conclusive.

            

      

      
        	
                9.2    

              	
                Substitution
                  of Options. In the event that, by reason of a corporate merger,
                  consolidation, acquisition of property or stock, separation,
                  reorganization or liquidation, the Board shall authorize the issuance
                  or
                  assumption of a stock option or stock options in a transaction
                  to which
                  Code section 424(a) applies, then, notwithstanding any other provision
                  of
                  the Plan, the Administrator may grant options upon such terms and
                  conditions as it may deem appropriate for the purpose of assumption
                  of the
                  old option, or substitution of a new option for the old option,
                  in
                  conformity with the provisions of Code section 424(a) and the rules
                  and
                  regulations thereunder, as they may be amended from time to
                  time.

              

      

      

      ARTICLE
        X

      AMENDMENT
        AND TERMINATION

      

      
        	
                10.1    

              	
                Amendment.
                  The Board may amend the Plan at any time and from time to time,
                  provided
                  that (i) no amendment shall deprive any person of any rights granted
                  under
                  the Plan before the effective date of such amendment, without such
                  person's consent; and (ii) amendments may be subject to shareholder
                  approval to the extent needed to comply with applicable law and
                  stock
                  exchange requirements.

              

      

      

      
        	
                10.2    

              	
                Termination.
                  The Board reserves the right to terminate the Plan in whole or
                  in part at
                  any time, without the consent of any person granted any rights
                  under the
                  Plan.

              

      

       

      ARTICLE
        XI

      MISCELLANEOUS

      

      
        	
                11.1    

              	
                Restrictive
                  Legends. The Corporation may at any time place legends referencing
                  any
                  restrictions described in the Grant Agreement and any applicable
                  federal
                  or state securities law restrictions on all certificates representing
                  shares of Stock underlying an
                  Award.

              

      

      

      
        	
                11.2    

              	
                Compliance
                  with Governmental Regulations. Notwithstanding any provision of
                  the Plan
                  or the terms of any Grant Agreement entered into pursuant to the
                  Plan, the
                  Corporation shall not be required to issue any shares hereunder
                  prior to
                  registration of the shares subject to the Plan under the Securities
                  Act of
                  1933, as amended, or the Securities Exchange Act of 1934, as amended,
                  if
                  such registration shall be necessary, or before compliance by the
                  Corporation or any Participant with any other provisions of either
                  of
                  those acts or of regulations or rulings of the Securities and Exchange
                  Commission thereunder, or before compliance with other federal
                  and state
                  laws and regulations and rulings thereunder, including the rules
                  any
                  applicable securities exchange or quotation
                  system.

              

      

      

      
        	
                11.3   

              	
                No
                  Guarantee of Employment. Participation in this Plan shall not be
                  construed
                  to confer upon any Participant the legal right to be retained in
                  the
                  employ of the Corporation or give any person any right to any payment
                  whatsoever, except to the extent of the benefits provided for
                  hereunder.

              

      

      
        
          
          

        

        
          -
            7
            -

          
            

          

        

        
          
          

        

      

      

      
        	
                11.4    

              	
                Governing
                  Law. The provisions of this Plan shall be governed by, construed
                  and
                  administered in accordance with applicable federal law; provided,
                  however,
                  that to the extent not in conflict with federal law, this Plan
                  shall be
                  governed by, construed and administered under the laws of Nevada,
                  other
                  than its laws respecting choice of
                  law.

              

      

      

      
        	
                11.5    

              	
                Severability.
                  If any provision of the Plan shall be held invalid, the remainder
                  of this
                  Plan shall not be affected thereby and the remainder of the Plan
                  shall
                  continue in
                  force.

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