Document:

ex10_25.htm

     EXHIBIT
10.25 

     

     LOCK-UP
AGREEMENT 

    

     As an
inducement to Liberty Alliance, Inc., a Delaware corporation (the “Company”), to
issue a number of shares of the Company common stock to increase the undersigned
stockholder’s holding to one round lot, or 100 shares, after the 1 for 3.5
reverse stock split effected on July 18, 2008 (the “Effective Date”), the
undersigned stockholder hereby agrees that from the Effective Date for a period
of one year,(the “Lock-up Period”) the undersigned will not offer, sell,
contract to sell, pledge or otherwise dispose of, directly or indirectly (a
“Transfer”), any shares of capital stock of the Company issued to the
undersigned in respect of shares of the Company now owned or hereafter acquired
by the undersigned, including any securities convertible into or exchangeable or
exercisable for any shares of capital stock of the Company (the “Securities”),
or enter into a transaction which would have the same effect, or publicly
disclose the intention to make any such offer, sale, pledge or
disposal. 

     

     Any
Securities received upon exercise of options granted to the undersigned will
also be subject to this Agreement.  A transfer of Securities to a
family member or trust may be made, provided the transferee agrees to be bound
in writing by the terms of this Agreement.  Upon the execution of the
Agreement, there shall be imprinted or otherwise placed, on certificates
representing the Securities the following restrictive legend: 

    

     THE
SALE OR TRANSFER OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE IS SUBJECT TO
THE TERMS AND CONDITONS OF A CERTAIN LOCK-UP AGREEMENT BETWEEN THE CORPORATION
AND CERTAIN HOLDERS OF STOCK OF THE CORPORATION.  COPIES OF SUCH
AGREEMENT MAY BE OBTAINED UPON WRITTEN REQUEST TO THE SECRETARY OF THE
CORPORATION. 

    

     In
furtherance of the foregoing, the Company and its transfer agent and registrar
are hereby authorized to decline to make any transfer of shares of Securities if
such transfer would constitute a violation or breach of this
Agreement. 

    

     This
Lock-up Agreement shall be binding on the undersigned and the successors, heirs,
personal representatives and assigns of the undersigned. 

    

     

     

    
      	  
      	  
      	  
      	  
      
	  
      	  
      	
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               Addressex10_26.htm

    
       EXHIBIT
10.26 

    

     

     SINOHUB,
INC. 

     

     

     2008
STOCK PLAN 

     

     

     1.    Purposes of the
Plan.  The purposes of this Plan are to attract and retain the
best available personnel for positions of substantial responsibility, to provide
additional incentive to Employees, Directors and Consultants and to promote the
success of the Company’s business. 

     

     The
Plan permits the grant of Incentive Stock Options, Nonstatutory Stock Options,
Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance
Units, Performance Shares and other stock or cash awards as the Administrator
may determine. 

     

     2.    Definitions.  As
used herein, the following definitions shall apply: 

     

     (a)        “Administrator” means
the Board or any of its Committees as shall be administering the Plan in
accordance with Section 4 hereof. 

     

     (b)        “Applicable Laws”
means the requirements relating to the administration of equity-based awards
under U.S. state corporate laws, U.S. federal and state securities laws, the
Code, any stock exchange or quotation system on which the Common Stock is listed
or quoted and the applicable laws of any other country or jurisdiction where
Awards are, or will be, granted under the Plan. 

     

     (c)        “Award” means,
individually or collectively, a grant under the Plan of Options, Stock
Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance
Units, Performance Shares and other stock or cash awards as the Administrator
may determine. 

     

     (d)        “Award Agreement”
means the written or electronic agreement setting forth the terms and provisions
applicable to each Award granted under the Plan.  The Award Agreement
is subject to the terms and conditions of the Plan. 

     

     (e)        “Board” means the
Board of Directors of the Company. 

     

     (f)         “Change in Control”
means the occurrence of any of the following events: 

     

     (i)        A change
in the ownership of the Company which occurs on the
date that any one person, or more than one person acting as a group, (“Person”) acquires
ownership of the stock of the Company that, together with the stock held by such
Person, constitutes more than fifty percent (50%) of the total voting power of
the stock of the Company; provided, however, that for purposes of this
subsection (i), the acquisition of additional stock by any one Person, who is
considered to own more than fifty percent (50%) of the total voting power of the
stock of the Company will not be considered a Change in Control;
or 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

     (ii)        A change
in the ownership of a substantial portion of the Company’s assets which occurs
on the date that any Person acquires (or has acquired during the twelve (12)
month period ending on the date of the most recent acquisition by such person or
persons) assets from the Company that have a total gross fair market value equal
to or more than fifty percent (50%) of the total gross fair market value of all
of the assets of the Company immediately prior to such acquisition or
acquisitions; provided, however, that for purposes of this subsection (ii), the
following will not constitute a change in the ownership of a substantial portion
of the Company’s assets: (A) a transfer to an entity that is controlled by the
Company’s stockholders immediately after the transfer, or (B) a transfer of
assets by the Company to: (1) a stockholder of the Company (immediately before
the asset transfer) in exchange for or with respect to the Company’s stock, (2)
an entity, fifty percent (50%) or more of the total value or voting power of
which is owned, directly or indirectly, by the Company, (3) a Person, that owns,
directly or indirectly, fifty percent (50%) or more of the total value or voting
power of all the outstanding stock of the Company, or (4) an entity, at least
fifty percent (50%) of the total value or voting power of which is owned,
directly or indirectly, by a Person described in this subsection
(ii)(B)(3).  For purposes of this subsection (ii), gross fair market
value means the value of the assets of the Company, or the value of the assets
being disposed of, determined without regard to any liabilities associated with
such assets. 

     

     For
purposes of this Section 2(f), persons will be considered to be acting as a
group if they are owners of a corporation that enters into a merger,
consolidation, purchase or acquisition of stock, or similar business transaction
with the Company. 

     

     (g)        “Code” means the
Internal Revenue Code of 1986, as amended. 

     

     (h)        “Committee” means a
committee of Directors or of other individuals satisfying Applicable Laws
appointed by the Board in accordance with Section 4
hereof. 

     

     (i)         “Common Stock” means
the Common Stock of the Company. 

     

     (j)         “Company” means
SinoHub, Inc., a Delaware corporation, or any successor
thereto. 

     

     (k)        “Consultant” means any
person who is engaged by the Company or any Parent or Subsidiary to render
consulting or advisory services to such entity. 

     

     (l)        
“Determination Date”
means the latest possible date that will not jeopardize the qualification of an
Award granted under the Plan as “performance-based compensation” under Section
162(m) of the Code. 

     

     (m)        “Director” means a
member of the Board. 

     

     (n)        “Disability” means
total and permanent disability as defined in Section 22(e)(3) of the Code,
provided that in the case of Awards other than Incentive Stock Options, the
Administrator in its discretion may determine whether a permanent and total
disability exists in accordance with uniform and non-discriminatory standards
adopted by the Administrator from time to time. 

     

     (o)        “Employee” means any
person, including Officers and Directors, employed by the Company or any Parent
or Subsidiary of the Company.  Neither service as a Director nor
payment of a director’s fee by the Company shall be sufficient to constitute
“employment” by the Company. 

     

    
      
         

      

      
         -2- 

        
          

        

      

      
         

      

       

    

     (p)         “Exchange Act” means
the Securities Exchange Act of 1934, as amended. 

     

     (q)        “Exchange Program”
means a program under which (i) outstanding Awards are surrendered or cancelled
in exchange for Awards of the same type (which may have lower exercise prices
and different terms), Awards of a different type, and/or cash, (ii) Participants
would have the opportunity to transfer any outstanding Awards to a financial
institution or other person or entity selected by the Administrator, and/or
(iii) the exercise price of an outstanding Award is reduced.  The
Administrator will determine the terms and conditions of any Exchange Program in
its sole discretion. 

     

     (r)        “Fair Market Value”
means, as of any date, the value of Common Stock determined as
follows: 

     

     (i)        
If the
Common Stock is listed on any established stock exchange or a national market
system, including without limitation the Nasdaq National Market or The Nasdaq
SmallCap Market of The Nasdaq Stock Market, its Fair Market Value shall be the
closing sales price for such stock (or the closing bid, if no sales were
reported) as quoted on such exchange or system on the day of determination, as
reported in The Wall Street
Journal or such other source as the Administrator deems
reliable; 

     

     (ii)        If the
Common Stock is regularly quoted by a recognized securities dealer but selling
prices are not reported, its Fair Market Value shall be the mean between the
high bid and low asked prices for the Common Stock on the day of determination;
or 

     

     (iii)       In the
absence of an established market for the Common Stock, the Fair Market Value
thereof shall be determined in good faith by the Administrator. 

     

     (s)        “Fiscal Year” means
the fiscal year of the Company. 

     

     (t)        “Incentive Stock
Option” means an Option that by its terms qualifies and is otherwise
intended to qualify as an incentive stock option within the meaning of
Section 422 of the Code and the regulations promulgated
thereunder. 

     

     (u)        “Nonstatutory Stock
Option” means an Option not intended to qualify as an Incentive Stock
Option. 

     

     (v)        “Officer” means a
person who is an officer of the Company within the meaning of Section 16 of
the Exchange Act and the rules and regulations promulgated
thereunder. 

     

     (w)        “Option” means a stock
option granted pursuant to Section 8 of the Plan. 

     

     (x)        “Parent” means a
“parent corporation,” whether now or hereafter existing, as defined in
Section 424(e) of the Code. 

     

     (y)        “Participant” means
the holder of an outstanding Award. 

     

    
      
         

      

      
         -3- 

        
          

        

      

      
         

      

       

    

     (z)         “Performance Goals”
will have the meaning set forth in Section 13 of the Plan. 

     

     (aa)       “Performance Period”
means any Fiscal Year of the Company or such other period as determined by the
Administrator in its sole discretion. 

     

     (bb)       “Performance Share”
means an Award denominated in Shares which may be earned in whole or in part
upon attainment of Performance Goals or other vesting criteria as the
Administrator may determine pursuant to Section 12. 

     

     (cc)       
“Performance Unit”
means an Award which may be earned in whole or in part upon attainment of
Performance Goals or other vesting criteria as the Administrator may determine
and which may be settled for cash, Shares or other securities or a combination
of the foregoing pursuant to Section 12. 

     

     (dd)       “Period of
Restriction” means the period during which the transfer of Shares of
Restricted Stock are subject to restrictions and therefore, the Shares are
subject to a substantial risk of forfeiture.  Such restrictions may be
based on the passage of time, the achievement of target levels of performance,
or the occurrence of other events as determined by the
Administrator. 

     

     (ee)        “Plan” means this 2008
Stock Plan. 

     

     (ff)        
“Restricted Stock”
means Shares issued pursuant to an Award of Restricted Stock under Section 10 of
the Plan, or issued pursuant to an early exercise of an Option. 

     

     (gg)        “Restricted Stock
Unit” means a bookkeeping entry representing an amount equal to the Fair
Market Value of one Share, granted pursuant to Section 11.  Each
Restricted Stock Unit represents an unfunded and unsecured obligation of the
Company. 

     

     (hh)       “Rule 16b-3” means
Rule 16b-3 of the Exchange Act or any successor to Rule 16b-3, as in effect when
discretion is being exercised with respect to the Plan. 

     

     (ii)      
  “Section 16(b)”
means Section 16(b) of the Exchange Act. 

     

     (jj)        
“Service Provider”
means an Employee, Director or Consultant. 

     

     (kk)      
 “Share” means a share
of the Common Stock, as adjusted in accordance with Section 16
below. 

     

     (ll)   “Stock Appreciation
Right” means an Award, granted alone or in connection with an Option,
that pursuant to Section 9 is designated as a Stock Appreciation
Right. 

     

     (mm)  “Subsidiary” means a
“subsidiary corporation,” whether now or hereafter existing, as defined in
Section 424(f) of the Code. 

     

    
      
         

      

      
         -4- 

        
          

        

      

      
         

      

       

    

     3.            Stock Subject to the
Plan. 

     

     (a)        Subject
to the provisions of Section 16 of the Plan, the maximum aggregate number
of Shares that may be awarded and sold under the Plan is 3,000,000
Shares.  The Shares may be authorized but unissued, or reacquired
Common Stock. 

     

     (b)        Share Reserve
Increase.  The number of Shares available for issuance under
the Plan may by increased at any time to such number of Shares as may be
determined by the Board. 

     

     (c)        Lapsed
Awards.  If an Award expires or becomes unexercisable without
having been exercised in full, or, with respect to Restricted Stock, Restricted
Stock Units, Performance Shares or Performance Units, is forfeited to or
repurchased by the Company, the unpurchased Shares (or for Awards other than
Options and Stock Appreciation Rights, the forfeited or repurchased Shares)
which were subject thereto will become available for future grant or sale under
the Plan (unless the Plan has terminated).  Upon exercise of a Stock
Appreciation Right settled in Shares, the gross number of Shares covered by the
portion of the Award so exercised will cease to be available under the
Plan.  Shares that have actually been issued under the Plan under any
Award will not be returned to the Plan and will not become available for future
distribution under the Plan; provided, however, that if unvested Shares of
Restricted Stock, Restricted Stock Units, Performance Shares or Performance
Units are repurchased by the Company or are forfeited to the Company, such
Shares will become available for future grant under the Plan.  Shares
used to pay the tax and/or exercise price of an Award will become available for
future grant or sale under the Plan.  To the extent an Award under the
Plan is paid out in cash rather than Shares, such cash payment will not result
in reducing the number of Shares available for issuance under the
Plan.  Notwithstanding the foregoing provisions of this Section 3(c),
subject to adjustment provided in Section 16, the maximum number of Shares
that may be issued upon the exercise of Incentive Stock Options will equal the
aggregate Share number stated in Section 3(a), plus, to the extent
allowable under Section 422 of the Code, any Shares that become available
for issuance under the Plan under this Section 3(c). 

     

     4.            Administration of the
Plan. 

     

     (a)        Administrator.  The
Plan shall be administered by the Board or a Committee appointed by the Board,
which Committee shall be constituted to comply with Applicable
Laws. 

     

     (i)        
Section 162(m).  To
the extent that the Administrator determines it to be desirable to qualify
Awards granted hereunder as “performance-based compensation” within the meaning
of Section 162(m) of the Code, the Plan will be administered by a Committee
of two (2) or more “outside directors” within the meaning of Section 162(m)
of the Code. 

     

     (ii)        Rule
16b-3.  To the extent desirable to qualify transactions
hereunder as exempt under Rule 16b-3, the transactions contemplated hereunder
will be structured to satisfy the requirements for exemption under Rule
16b-3. 

     

     (b)        Powers of the
Administrator.  Subject to the provisions of the Plan and, in
the case of a Committee, the specific duties delegated by the Board to such
Committee, and subject to the approval of any relevant authorities, the
Administrator shall have the authority in its discretion: 

     

    
      
         

      

      
         -5- 

        
          

        

      

      
         

      

       

    

     (i)        
to
determine the Fair Market Value; 

     

     (ii)        to select
the Service Providers to whom Awards may from time to time be granted
hereunder; 

     

     (iii)       to
determine the number of Shares to be covered by each such Award granted
hereunder; 

     

     (iv)       to
determine the terms and conditions of any, and to institute an Exchange
Program; 

     

     (v)        to
approve forms of agreement for use under the Plan; 

     

     (vi)       to
determine the terms and conditions, not inconsistent with the terms of the Plan,
of any Award granted hereunder.  Such terms and conditions include,
but are not limited to, the exercise price, the time or times when Awards may be
exercised (which may be based on performance criteria), any vesting acceleration
or waiver of forfeiture restrictions, and any restriction or limitation
regarding any Award or the Common Stock relating thereto, based in each case on
such factors as the Administrator, in its sole discretion, shall
determine; 

     

     (vii)      to
prescribe, amend and rescind rules and regulations relating to the Plan,
including rules and regulations relating to sub-plans established for the
purpose of satisfying applicable foreign laws; 

     

     (viii)     to
construe and interpret the terms of the Plan and Awards granted pursuant to the
Plan; 

     

     (ix)       to modify
or amend each Award (subject to Section 18(c) of the Plan); and 

     

     (x)        to make
all other determinations deemed necessary or advisable for administering the
Plan. 

     

     (c)        Effect of Administrator’s
Decision.  All decisions, determinations and interpretations of
the Administrator shall be final and binding on all
Participants. 

     

     5.           
Eligibility.  Nonstatutory
Stock Options, Restricted Stock, Restricted Stock Units, Stock Appreciation
Rights, Performance Units, Performance Shares, and such other cash or stock
awards as the Administrator determines may be granted to Service
Providers.  Incentive Stock Options may be granted only to
Employees. 

     

     6.            At-Will
Employment.  Neither the Plan nor any Award shall confer upon
any Participant any right with respect to continuing the Participant’s
relationship as a Service Provider with the Company, nor shall it interfere in
any way with his or her right or the Company’s right to terminate such
relationship at any time, with or without cause, and with or without
notice. 

     

     7.            Term of
Plan.  Subject to stockholder approval in accordance with
Section 24, the Plan shall become effective upon its adoption by the
Board.  Unless sooner terminated under Section 18, it shall
continue in effect for a term of ten (10) years. 

     

    
      
         

      

      
         -6- 

        
          

        

      

      
         

      

       

    

     8.            
Stock
Options. 

     

     (a)        Limitations. 

     

     (i)        
Incentive Stock Option
Limit.  Each Option shall be designated in the Award Agreement
as either an Incentive Stock Option or a Nonstatutory Stock
Option.  However, notwithstanding such designation, to the extent that
the aggregate Fair Market Value of the Shares with respect to which Incentive
Stock Options are exercisable for the first time by the Participant during any
calendar year (under all plans of the Company and any Parent or Subsidiary)
exceeds $100,000, such Options shall be treated as Nonstatutory Stock
Options.  For purposes of this Section 8(a), Incentive Stock
Options shall be taken into account in the order in which they were
granted.  The Fair Market Value of the Shares shall be determined as
of the time the Option with respect to such Shares is granted. 

     

     (ii)        Number of
Shares.  The Administrator will have complete discretion to
determine the number of Shares subject to an Option granted to any
Participant.   Notwithstanding the foregoing sentence, for
Options intended to qualify as “performance-based compensation” within the
meaning of Section 162(m) of the Code, during any Fiscal Year, no Participant
will be granted an Option covering more than 50,000
Shares.  Notwithstanding the limitation in the previous sentence, for
Options intended to qualify as “performance-based compensation” within the
meaning of Section 162(m) of the Code, in connection with his or her initial
service as an Employee, an Employee may be granted Options covering up to an
additional 150,000 Shares. 

     

     (b)        Term of
Option.  The term of each Option shall be stated in the Award
Agreement; provided, however, that the term shall be no more than ten (10) years
from the date of grant thereof.  In the case of an Incentive Stock
Option granted to a Participant who, at the time the Option is granted, owns
stock representing more than ten percent (10%) of the voting power of all
classes of stock of the Company or any Parent or Subsidiary, the term of the
Option shall be five (5) years from the date of grant or such shorter term as
may be provided in the Award Agreement. 

     

     (c)        Option Exercise Price and
Consideration. 

     

     (i)        
Exercise
Price.  The per share exercise price for the Shares to be
issued upon exercise of an Option shall be such price as is determined by the
Administrator, but shall be subject to the following: 

     

     (A)        In the
case of an Incentive Stock Option 

     

     a)        granted
to an Employee who, at the time of grant of such Option, owns stock representing
more than ten percent (10%) of the voting power of all classes of stock of the
Company or any Parent or Subsidiary, the exercise price shall be no less than
110% of the Fair Market Value per Share on the date of grant;
or 

     

     b)        granted
to any other Employee, the per Share exercise price shall be no less than 100%
of the Fair Market Value per Share on the date of grant. 

     

    
      
         

      

      
         -7- 

        
          

        

      

      
         

      

       

    

     (B)        In the
case of a Nonstatutory Stock Option, the per Share exercise price shall be no
less than 100% of the Fair Market Value per Share on the date of
grant. 

     

     (ii)        Notwithstanding
the foregoing provisions of this Section 8(c), Options may be granted with a per
Share exercise price of less than 100% of the Fair Market Value per Share on the
date of grant pursuant to a transaction described in, and in a manner consistent
with, Section 424(a) of the Code. 

     

     (iii)       Forms of
Consideration.  The consideration to be paid for the Shares to
be issued upon exercise of an Option, including the method of payment, shall be
determined by the Administrator (and, in the case of an Incentive Stock Option,
shall be determined at the time of grant).  Such consideration may
consist of, without limitation, (i) cash, (ii) check,
(iii) promissory note, (iv) surrender of other Shares which (x) shall be
valued at its Fair Market Value on the date of exercise, and (y) must be owned
free and clear of any liens, claims, encumbrances or security interests, and
accepting such Shares, in the sole discretion of the Administrator, shall not
result in any adverse accounting consequences to the Company,
(v) consideration received by the Company under a cashless exercise program
implemented by the Company in connection with the Plan, or (vi) any
combination of the foregoing methods of payment.  In making its
determination as to the type of consideration to accept, the Administrator shall
consider if acceptance of such consideration may be reasonably expected to
benefit the Company. 

     

     (d)        Exercise of
Option. 

     

     (i)        
Procedure for Exercise;
Rights as a Stockholder.  Any Option granted hereunder shall be
exercisable according to the terms hereof at such times and under such
conditions as determined by the Administrator and set forth in the Award
Agreement.  An Option may not be exercised for a fraction of a
Share. 

     

     An
Option shall be deemed exercised when the Company receives: (i) written or
electronic notice of exercise (in accordance with the Award Agreement) from the
person entitled to exercise the Option, and (ii) full payment for the
Shares with respect to which the Option is exercised (together with any
applicable withholding taxes).  Full payment may consist of any
consideration and method of payment authorized by the Administrator and
permitted by the Award Agreement and the Plan.  Shares issued upon
exercise of an Option shall be issued in the name of the Participant or, if
requested by the Participant, in the name of the Participant and his or her
spouse.  Until the 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), no right to vote or receive dividends or any other rights as a
stockholder shall exist with respect to the Shares, notwithstanding the exercise
of the Option.  The Company shall issue (or cause to be issued) such
Shares promptly after the Option is exercised.  No adjustment will be
made for a dividend or other right for which the record date is prior to the
date the Shares are issued, except as provided in Section 16 of the
Plan. 

     

     Exercise
of an Option in any manner shall result in a decrease in the number of Shares
thereafter available for sale under the Option, by the number of Shares as to
which the Option is exercised. 

     

    
      
         

      

      
         -8- 

        
          

        

      

      
         

      

    

     (ii)        Termination of Relationship
as a Service Provider.  If a Participant ceases to be a Service
Provider, other than upon the Participant’s termination as the result of the
Participant’s death or Disability, the Participant may exercise his or her
Option within ninety (90) days of termination, or such longer period of time as
is specified in the Award Agreement to the extent that the Option is vested on
the date of termination (but in no event later than the expiration of the term
of such Option as set forth in the Award Agreement).  In the absence
of a specified time in the Award Agreement, to the extent not exercised, the
Option expires on the 90th day
following the Participant’s termination.  Unless otherwise provided by
the Administrator, if, on the date of termination, to the extent the Participant
is not vested as to his or her Option, the Shares covered by the unvested
portion of the Option shall revert to the Plan.  If, after
termination, the Participant does not exercise his or her Option within ninety
(90) days of termination, or such longer period of time as is specified in the
Award Agreement, the Option shall terminate, and the Shares covered by such
Option shall revert to the Plan. 

     

     (iii)       Disability of
Participant.  If a Participant ceases to be a Service Provider
as a result of the Participant’s Disability, the Participant may exercise his or
her Option within six (6) months of termination, or such longer period of time
as is specified in the Award Agreement to the extent the Option is vested on the
date of termination (but in no event later than the expiration of the term of
such Option as set forth in the Award Agreement).  In the absence of a
specified time in the Award Agreement, to the extent not exercised, the Option
shall expire six (6) months following the Participant’s
termination.  Unless otherwise provided by the Administrator, if, on
the date of termination, to the extent the Participant is not vested as to his
or her Option, the Shares covered by the unvested portion of the Option shall
revert to the Plan.  If, after termination, the Participant does not
exercise his or her Option within the time specified herein, the Option shall
terminate, and the Shares covered by such Option shall revert to the
Plan. 

     

     (iv)       Death of
Participant.  If a Participant dies while a Service Provider,
the Option may be exercised within six (6) months following the Participant’s
death, or within such longer period of time as is specified in the Award
Agreement to the extent that the Option is vested on the date of death (but in
no event may the Option be exercised later than the expiration of the term of
such Option as set forth in the Award Agreement), by the Participant’s
designated beneficiary, provided such beneficiary has been designated prior to
Participant’s death in a form acceptable to the Administrator.  If no
such beneficiary has been designated by the Participant, then such Option may be
exercised by the personal representative of the Participant’s estate or by the
person(s) to whom the Option is transferred pursuant to the Participant’s will
or in accordance with the laws of descent and distribution.  In the
absence of a specified time in the Award Agreement, to the extent not exercised,
the Option shall expire six (6) months following the Participant’s
termination.  Unless otherwise provided by the Administrator, if, at
the time of death, to the extent the Participant is not vested as to his or her
Option, the Shares covered by the unvested portion of the Option shall
immediately revert to the Plan.  If the Option is not so exercised
within the time specified herein, the Option shall terminate, and the Shares
covered by such Option shall revert to the Plan. 

     

    
      
         

      

      
         -9- 

        
          

        

      

      
         

      

       

    

     9.           
Stock Appreciation
Rights. 

     

     (a)        Grant of Stock Appreciation
Rights.  Subject to the terms and conditions of the Plan, a
Stock Appreciation Right may be granted to Service Providers at any time and
from time to time as will be determined by the Administrator, in its sole
discretion. 

     

     (b)        Number of
Shares.  The Administrator will have complete discretion to
determine the number of Stock Appreciation Rights granted to any Participant,
provided that during any Fiscal Year, no Participant will be granted Stock
Appreciation Rights covering more than 50,000 Shares.  Notwithstanding
the limitation in the previous sentence, in connection with his or her initial
service as an Employee, an Employee may be granted Stock Appreciation Rights
covering up to an additional 150,000 Shares. 

     

     (c)        Exercise Price and Other
Terms.  The Administrator, subject to the provisions of the
Plan, will have complete discretion to determine the terms and conditions of
Stock Appreciation Rights granted under the Plan, provided, however, that the
exercise price will be not less than 100% of the Fair Market Value of a Share on
the date of grant. 

     

     (d)        Stock Appreciation Right
Agreement.  Each Stock Appreciation Right grant will be
evidenced by an Award Agreement that will specify the exercise price, the term
of the Stock Appreciation Right, the conditions of exercise, and such other
terms and conditions as the Administrator, in its sole discretion, will
determine. 

     

     (e)        Expiration of Stock
Appreciation Rights.  A Stock Appreciation Right granted under
the Plan will expire upon the date determined by the Administrator, in its sole
discretion, and set forth in the Award Agreement; provided, however, that the
term will be no more than ten (10) years from the date of grant
thereof.  Notwithstanding the foregoing, the rules of
Section 8(d) also will apply to Stock Appreciation Rights. 

     

     (f)        Payment of Stock
Appreciation Right Amount.  Upon exercise of a Stock
Appreciation Right, a Participant will be entitled to receive payment from the
Company in an amount determined by multiplying: 

     

     (i)        
The
difference between the Fair Market Value of a Share on the date of exercise over
the exercise price; times 

     

     (ii)        The
number of Shares with respect to which the Stock Appreciation Right is
exercised. 

     

     At the
discretion of the Administrator, the payment upon Stock Appreciation Right
exercise may be in cash, in Shares of equivalent value, or in some combination
thereof. 

     

     10.          Restricted
Stock. 

     

     (a)        Grant of Restricted
Stock.  Subject to the terms and provisions of the Plan, the
Administrator, at any time and from time to time, may grant Shares of Restricted
Stock to Service Providers in such amounts as the Administrator, in its sole
discretion, will determine. 

     

    
      
         

      

      
         -10- 

        
          

        

      

      
         

      

       

    

     (b)        Restricted Stock
Agreement.  Each Award of Restricted Stock will be evidenced by
an Award Agreement that will specify the Period of Restriction, the number of
Shares granted, and such other terms and conditions as the Administrator, in its
sole discretion, will determine.  Notwithstanding the foregoing
sentence, for restricted stock intended to qualify as “performance-based
compensation” within the meaning of Section 162(m) of the Code, during any
Fiscal Year no Participant will receive more than an aggregate of 50,000 Shares
of Restricted Stock.  Notwithstanding the foregoing limitation, in
connection with his or her initial service as an Employee, for restricted stock
intended to qualify as “performance-based compensation” within the meaning of
Section 162(m) of the Code, an Employee may be granted an aggregate of up to an
additional 150,000 Shares of Restricted Stock.  Unless the
Administrator determines otherwise, Shares of Restricted Stock will be held by
the Company as escrow agent until the restrictions on such Shares have
lapsed. 

     

     (c)        Transferability.  Except
as provided in this Section 10, Shares of Restricted Stock may not be sold,
transferred, pledged, assigned, or otherwise alienated or hypothecated until the
end of the applicable Period of Restriction. 

     

     (d)        Other
Restrictions.  The Administrator, in its sole discretion, may
impose such other restrictions on Shares of Restricted Stock as it may deem
advisable or appropriate. 

     

     (e)        Removal of
Restrictions.  Except as otherwise provided in this Section 10,
Shares of Restricted Stock covered by each Restricted Stock grant made under the
Plan will be released from escrow as soon as practicable after the last day of
the Period of Restriction.  The Administrator, in its discretion, may
accelerate the time at which any restrictions will lapse or be
removed. 

     

     (f)        Voting
Rights.  During the Period of Restriction, Service Providers
holding Shares of Restricted Stock granted hereunder may exercise full voting
rights with respect to those Shares, unless the Administrator determines
otherwise. 

     

     (g)        Dividends and Other
Distributions.  During the Period of Restriction, Service
Providers holding Shares of Restricted Stock will be entitled to receive all
dividends and other distributions paid with respect to such Shares unless
otherwise provided in the Award Agreement.  If any such dividends or
distributions are paid in Shares, the Shares will be subject to the same
restrictions on transferability and forfeitability as the Shares of Restricted
Stock with respect to which they were paid. 

     

     (h)        Return of Restricted Stock
to Company.  On the date set forth in the Award Agreement, the
Restricted Stock for which restrictions have not lapsed will revert to the
Company and again will become available for grant under the
Plan. 

     

     (i)        Section 162(m) Performance
Restrictions.  For purposes of qualifying grants of Restricted
Stock as “performance-based compensation” under Section 162(m) of the Code,
the Administrator, in its discretion, may set restrictions based upon the
achievement of Performance Goals.  The Performance Goals will be set
by the Administrator on or before the Determination Date.  In granting
Restricted Stock which is intended to qualify under Section 162(m) of the
Code, the Administrator will follow any procedures determined by it from time to
time to be necessary or appropriate to ensure qualification of the Award under
Section 162(m) of the Code (e.g., in determining the Performance
Goals). 

     

    
      
         

      

      
         -11- 

        
          

        

      

      
         

      

       

    

     11.          Restricted Stock
Units. 

     

     (a)        Grant.  Restricted
Stock Units may be granted at any time and from time to time as determined by
the Administrator.  Each Restricted Stock Unit grant will be evidenced
by an Award Agreement that will specify such other terms and conditions as the
Administrator, in its sole discretion, will determine, including all terms,
conditions, and restrictions related to the grant, the number of Restricted
Stock Units and the form of payout, which, subject to Section 11(d), may be
left to the discretion of the Administrator.  Notwithstanding anything
to the contrary in this subsection (a), for Restricted Stock Units intended
to qualify as “performance-based compensation” within the meaning of Section
162(m) of the Code, during any Fiscal Year of the Company, no Participant will
receive more than an aggregate of 50,000 Restricted Stock
Units.  Notwithstanding the limitation in the previous sentence, for
Restricted Stock Units intended to qualify as “performance-based compensation”
within the meaning of Section 162(m) of the Code, in connection with his or her
initial service as an Employee, an Employee may be granted an aggregate of up to
an additional 150,000 Restricted Stock Units. 

     

     (b)        Vesting Criteria and Other
Terms.  The Administrator will set vesting criteria in its
discretion, which, depending on the extent to which the criteria are met, will
determine the number of Restricted Stock Units that will be paid out to the
Participant.  After the grant of Restricted Stock Units, the
Administrator, in its sole discretion, may reduce or waive any restrictions for
such Restricted Stock Units.  Each Award of Restricted Stock Units
will be evidenced by an Award Agreement that will specify the vesting criteria,
and such other terms and conditions as the Administrator, in its sole discretion
will determine.  The Administrator, in its discretion, may accelerate
the time at which any restrictions will lapse or be removed. 

     

     (c)        Earning Restricted Stock
Units.  Upon meeting the applicable vesting criteria, the
Participant will be entitled to receive a payout as specified in the Award
Agreement. 

     

     (d)        Form and Timing of
Payment.  Payment of earned Restricted Stock Units will be made
as soon as practicable after the date(s) set forth in the Award
Agreement.  The Administrator, in its sole discretion, may pay earned
Restricted Stock Units in cash, Shares, or a combination
thereof.  Shares represented by Restricted Stock Units that are fully
paid in cash again will be available for grant under the Plan. 

     

     (e)        Cancellation.  On
the date set forth in the Award Agreement, all unearned Restricted Stock Units
will be forfeited to the Company. 

     

     (f)        Section 162(m) Performance
Restrictions.  For purposes of qualifying grants of Restricted
Stock Units as “performance-based compensation” under Section 162(m) of the
Code, the Administrator, in its discretion, may set restrictions based upon the
achievement of Performance Goals.  The Performance Goals will be set
by the Administrator on or before the Determination Date.  In granting
Restricted Stock Units which are intended to qualify under Section 162(m)
of the Code, the Administrator will follow any procedures determined by it from
time to time to be necessary or appropriate to ensure qualification of the Award
under Section 162(m) of the Code (e.g., in determining the Performance
Goals). 

     

    
      
         

      

      
         -12- 

        
          

        

      

      
         

      

       

    

     12.         
Performance Units and
Performance Shares. 

     

     (a)        Grant of Performance
Units/Shares.  Performance Units and Performance Shares may be
granted to Service Providers at any time and from time to time, as will be
determined by the Administrator, in its sole discretion.  The
Administrator will have complete discretion in determining the number of
Performance Units/Shares granted to each Participant provided that during any
Fiscal Year, for Performance Units or Performance Shares intended to qualify as
“performance-based compensation” within the meaning of Section 162(m) of the
Code, (i) no Participant will receive Performance Units having an initial value
greater than $500,000, and (ii) no Participant will receive more than
50,000 Performance Shares.  Notwithstanding the foregoing limitation,
for Performance Shares intended to qualify as “performance-based compensation”
within the meaning of Section 162(m) of the Code, in connection with his or her
initial service, a Service Provider may be granted up to an additional 150,000
Performance Shares. 

     

     (b)        Value of Performance
Units/Shares.  Each Performance Unit will have an initial value
that is established by the Administrator on or before the date of
grant.  Each Performance Share will have an initial value equal to the
Fair Market Value of a Share on the date of grant. 

     

     (c)        Performance Objectives and
Other Terms.  The Administrator will set performance objectives
or other vesting provisions.  The Administrator may set vesting
criteria based upon the achievement of Company-wide, business unit, or
individual goals (including, but not limited to, continued employment), or any
other basis determined by the Administrator in its discretion.  Each
Award of Performance Units/Shares will be evidenced by an Award Agreement that
will specify the Performance Period, and such other terms and conditions as the
Administrator, in its sole discretion, will determine.  The
Administrator, in its sole discretion, may provide at the time of or following
the date of grant for accelerated vesting for an Award of Performance
Units/Shares. 

     

     (d)        Earning of Performance
Units/Shares.  After the applicable Performance Period has
ended, the holder of Performance Units/Shares will be entitled to receive a
payout of the number of Performance Units/Shares earned by the Participant over
the Performance Period, to be determined as a function of the extent to which
the corresponding performance objectives or other vesting provisions have been
achieved.  After the grant of a Performance Unit/Share, the
Administrator, in its sole discretion, may reduce or waive any performance
objectives or other vesting provisions for such Performance
Unit/Share. 

     

     (e)        Form and Timing of Payment
of Performance Units/Shares.  Payment of earned Performance
Units/Shares will be made as soon as practicable after the expiration of the
applicable Performance Period.  The Administrator, in its sole
discretion, may pay earned Performance Units/Shares in the form of cash, in
Shares (which have an aggregate Fair Market Value equal to the value of the
earned Performance Units/Shares at the close of the applicable Performance
Period) or in a combination thereof. 

     

    
      
         

      

      
         -13- 

        
          

        

      

      
         

      

       

    

     (f)        Cancellation of Performance
Units/Shares.  On the date set forth in the Award Agreement,
all unearned or unvested Performance Units/Shares will be forfeited to the
Company, and again will be available for grant under the Plan. 

     

     (g)        Section 162(m) Performance
Restrictions.  For purposes of qualifying grants of Performance
Units/Shares as “performance-based compensation” under Section 162(m) of
the Code, the Administrator, in its discretion, may set restrictions based upon
the achievement of Performance Goals.  The Performance Goals will be
set by the Administrator on or before the Determination Date.  In
granting Performance Units/Shares which are intended to qualify under
Section 162(m) of the Code, the Administrator will follow any procedures
determined by it from time to time to be necessary or appropriate to ensure
qualification of the Award under Section 162(m) of the Code (e.g., in
determining the Performance Goals). 

     

     13.         
Performance-Based
Compensation Under Code Section 162(m). 

     

     (a)        General.  If
the Administrator, in its discretion, decides to grant an Award intended to
qualify as “performance-based compensation” under Code Section 162(m), the
provisions of this Section 13 will control over any contrary provision in the
Plan; provided, however, that the Administrator may in its discretion grant
Awards that are not intended to qualify as “performance-based compensation”
under Section 162(m) of the Code to such Participants that are based on
Performance Goals or other specific criteria or goals but that do not satisfy
the requirements of this Section 13. 

     

     (b)        Performance
Goals.  The granting and/or vesting of Awards of Restricted
Stock, Restricted Stock Units, Performance Shares and Performance Units and
other incentives under the Plan may be made subject to the attainment of
performance goals relating to one or more business criteria within the meaning
of Code Section 162(m) and may provide for a targeted level or levels of
achievement (“Performance Goals”)
including (i) annual revenue, (ii) cash from operations, (iii) earnings per
Share, (iv) net income, (v) new orders, (vi) operating cash flow,
(vii) operating income, (viii) pro forma net income, (ix) product
shipments, (x) profit after taxes, (xi) profit before taxes,
(xii) return on assets, (xiii) return on equity, (xiv) return on
sales, (xv) revenue, and (xvi) total shareholder
return.  Any Performance Goals may be used to measure the performance
of the Company as a whole or a business unit of the Company and may be measured
relative to a peer group or index.  The Performance Goals may differ
from Participant to Participant and from Award to Award.  Prior to the
Determination Date, the Administrator will determine whether any significant
element(s) will be included in or excluded from the calculation of any
Performance Goal with respect to any Participant. 

     

     (c)        Procedures.  To
the extent necessary to comply with the performance-based compensation
provisions of Code Section 162(m), with respect to any Award granted subject to
Performance Goals, within the first twenty-five percent (25%) of the Performance
Period, but in no event more than ninety (90) days following the commencement of
any Performance Period (or such other time as may be required or permitted by
Code Section 162(m)), the Administrator will, in writing, (i) designate one or
more Participants to whom an Award will be made, (ii) select the Performance
Goals applicable to the Performance Period, (iii) establish the Performance
Goals, and amounts of such Awards, as applicable, which may be earned for such
Performance Period, and (iv) specify the relationship between Performance
Goals and the amounts of such Awards, as applicable, to be earned by each
Participant for such Performance Period.  Following the completion of
each Performance Period, the Administrator will certify in writing whether the
applicable Performance Goals have been achieved for such Performance
Period.  In determining the amounts earned by a Participant, the
Administrator will have the right to reduce or eliminate (but not to increase)
the amount payable at a given level of performance to take into account
additional factors that the Administrator may deem relevant to the assessment of
individual or corporate performance for the Performance Period.  A
Participant will be eligible to receive payment pursuant to an Award for a
Performance Period only if the Performance Goals for such period are
achieved. 

     

    
      
         

      

      
         -14- 

        
          

        

      

      
         

      

       

    

     (d)        Additional
Limitations.  Notwithstanding any other provision of the Plan,
any Award which is granted to a Participant and is intended to constitute
qualified performance based compensation under Code Section 162(m) will be
subject to any additional limitations set forth in the Code (including any
amendment to Section 162(m)) or any regulations and ruling issued thereunder
that are requirements for qualification as qualified performance-based
compensation as described in Section 162(m) of the Code, and the Plan will be
deemed amended to the extent necessary to conform to such
requirements. 

     

     14.         
Leaves of
Absence.  Unless the Administrator provides otherwise, vesting
of Awards granted hereunder will be suspended during any unpaid leave of
absence.  A Service Provider will not cease to be an Employee in the
case of (i) any leave of absence approved by the Company, or
(ii) transfers between locations of the Company or between the Company, its
Parent, or any Subsidiary.  For purposes of Incentive Stock Options,
no such leave may exceed three (3) months, unless reemployment upon expiration
of such leave is guaranteed by statute or contract.  If reemployment
upon expiration of a leave of absence approved by the Company is not so
guaranteed, then three (3) months and one (1) day following the commencement of
such leave any Incentive Stock Option held by the Participant will cease to be
treated as an Incentive Stock Option and will be treated for tax purposes as a
Nonstatutory Stock Option. 

     

     15.         
Transferability of
Awards.  Unless determined otherwise by the Administrator,
Awards may not be sold, pledged, assigned, hypothecated, transferred, or
disposed of in any manner other than by will or the laws of descent and
distribution, and may be exercised during the lifetime of the Participant, only
by the Participant.  If the Administrator makes an Award transferable,
such Award may only be transferred (i) by will, (ii) by the laws of descent and
distribution, or (iii) to a revocable trust. 

     

     16.          Adjustments; Dissolution or
Liquidation; Merger or Change in Control. 

     

     (a)        Adjustments.  In
the event that any dividend or other distribution (whether in the form of cash,
Shares, other securities, or other property), recapitalization, stock split,
reverse stock split, reorganization, merger, consolidation, split-up, spin-off,
combination, repurchase, or exchange of Shares or other securities of the
Company, or other change in the corporate structure of the Company affecting the
Shares occurs, the Administrator, in order to prevent diminution or enlargement
of the benefits or potential benefits intended to be made available under the
Plan, shall adjust the number and class of Shares that may be delivered under
the Plan and/or the number, class, price of Shares covered by each outstanding
Award, and the numerical Share limits set forth in Sections 3, 8, 9, 10,
11, and 12. 

     

    
      
         

      

      
         -15- 

        
          

        

      

      
         

      

       

    

     (b)        Dissolution or
Liquidation.  In the event of the proposed dissolution or
liquidation of the Company, the Administrator shall notify each Participant as
soon as practicable prior to the effective date of such proposed
transaction.  To the extent it has not been previously exercised, an
Option or Stock Purchase Right will terminate immediately prior to the
consummation of such proposed action. 

     

     (c)        Merger or Change in
Control.  In the event of a merger of the Company with or into
another corporation, or a Change in Control, each outstanding Award shall be
assumed or an equivalent option substituted by the successor corporation or a
Parent or Subsidiary of the successor corporation.  In the event that
the successor corporation in a merger or Change in Control refuses to assume or
substitute for the Award, then the Participant will fully vest in and have the
right to exercise all of his or her outstanding Options and Stock Appreciation
Rights, including Shares as to which such Awards would not otherwise be vested
or exercisable, all restrictions on Restricted Stock will lapse, and, with
respect to Restricted Stock Units, Performance Shares and Performance Units, all
Performance Goals or other vesting criteria will be deemed achieved at target
levels and all other terms and conditions met.  In addition, if an
Option or Stock Appreciation Right is not assumed or substituted for in the
event of a Change in Control, the Administrator will notify the Participant in
writing or electronically that the Option or Stock Appreciation Right will be
fully vested and exercisable for fifteen (15) days, and the Option or Stock
Appreciation Right will terminate upon the expiration of such
period. 

     

     For
the purposes of this Section 16(c), an Award will be considered assumed if,
following the Change in Control, the Award confers the right to purchase or
receive, for each Share subject to the Award immediately prior to the Change in
Control, the consideration (whether stock, cash, or other securities or
property) or, in the case of a Stock Appreciation Right upon the exercise of
which the Administrator determines to pay cash or a Performance Share or
Performance Unit which the Administrator can determine to pay in cash, the fair
market value of the consideration received in the merger or Change in Control by
holders of Common Stock for each Share held on the effective date of the
transaction (and if holders were offered a choice of consideration, the type of
consideration chosen by the holders of a majority of the outstanding Shares);
provided, however, that if such consideration received in the Change in Control
is not solely common stock of the Successor Corporation, the Administrator may,
with the consent of the Successor Corporation, provide for the consideration to
be received upon the exercise of an Option or Stock Appreciation Right or upon
the payout of a Performance Share or Performance Unit, for each Share subject to
such Award (or in the case of Performance Units, the number of implied shares
determined by dividing the value of the Performance Units by the per share
consideration received by holders of Common Stock in the Change in Control), to
be solely common stock of the Successor Corporation equal in fair market value
to the per share consideration received by holders of Common Stock in the Change
in Control. 

     

     Notwithstanding
anything in this Section 16(c) to the contrary, an Award that vests, is earned
or paid-out upon the satisfaction of one or more Performance Goals will not be
considered assumed if the Company or its successor modifies any of such
Performance Goals without the Participant’s consent; provided, however, a
modification to such Performance Goals only to reflect the Successor
Corporation’s post-Change in Control corporate structure will not be deemed to
invalidate an otherwise valid Award assumption. 

     

    
      
         

      

      
         -16- 

        
          

        

      

      
         

      

       

    

     17.         
Time of Granting
Awards.  The date of grant of an Award shall, for all purposes,
be the date on which the Administrator makes the determination granting such
Award, or such later date as is determined by the
Administrator.  Notice of the determination shall be given to each
Service Provider to whom an Award is so granted within a reasonable time after
the date of such grant. 

     

     18.         
Amendment and Termination of
the Plan. 

     

     (a)        Amendment and
Termination.  The Board may at any time amend, alter, suspend
or terminate the Plan. 

     

     (b)        Stockholder
Approval.  The Board shall obtain stockholder approval of any
Plan amendment to the extent necessary and desirable to comply with Applicable
Laws. 

     

     (c)        Effect of Amendment or
Termination.  No amendment, alteration, suspension or
termination of the Plan shall impair the rights of any Participant, unless
mutually agreed otherwise between the Participant and the Administrator, which
agreement must be in writing and signed by the Participant and the
Company.  Termination of the Plan shall not affect the Administrator’s
ability to exercise the powers granted to it hereunder with respect to Awards
granted under the Plan prior to the date of such termination. 

     

     19.         
Tax
Withholding 

     

     (a)        Withholding
Requirements.  Prior to the delivery of any Shares or cash
pursuant to an Award (or exercise thereof), the Company will have the power and
the right to deduct or withhold, or require a Participant to remit to the
Company, an amount sufficient to satisfy federal, state, local, foreign or other
taxes (including the Participant’s FICA obligation) required to be withheld with
respect to such Award (or exercise thereof). 

     

     (b)        Withholding
Arrangements.  The Administrator, in its sole discretion and
pursuant to such procedures as it may specify from time to time, may permit a
Participant to satisfy such tax withholding obligation, in whole or in part by
(without limitation) (i) paying cash, (ii) electing to have the Company
withhold otherwise deliverable cash or Shares having a Fair Market Value equal
to the minimum amount required to be withheld, (iii) delivering to the Company
already-owned Shares having a Fair Market Value equal to the amount required to
be withheld, or (iv) selling a sufficient number of Shares otherwise
deliverable to the Participant through such means as the Administrator may
determine in its sole discretion (whether through a broker or otherwise) equal
to the amount required to be withheld.  The amount of the withholding
requirement will be deemed to include any amount which the Administrator agrees
may be withheld at the time the election is made, not to exceed the amount
determined by using the maximum federal, state or local marginal income tax
rates applicable to the Participant with respect to the Award on the date that
the amount of tax to be withheld is to be determined.  The Fair Market
Value of the Shares to be withheld or delivered will be determined as of the
date that the taxes are required to be withheld. 

     

    
      
         

      

      
         -17- 

        
          

        

      

      
         

      

       

    

     20.         
Conditions Upon Issuance of
Shares. 

     

     (a)        Legal
Compliance.  Shares shall not be issued pursuant to the
exercise of an Award unless the exercise of such Award and the issuance and
delivery of such Shares shall comply with Applicable Laws and shall be further
subject to the approval of counsel for the Company with respect to such
compliance. 

     

     (b)        Investment
Representations.  As a condition to the exercise of an Award,
the Administrator may require the person exercising such Award to represent and
warrant at the time of any such exercise that the Shares are being purchased
only for investment and without any present intention to sell or distribute such
Shares if, in the opinion of counsel for the Company, such a representation is
required. 

     

     21.         
No Effect on Employment or
Service.  Neither the Plan nor any Award will confer upon a
Participant any right with respect to continuing the Participant’s relationship
as a Service Provider with the Company, nor will they interfere in any way with
the Participant’s right or the Company’s right to terminate such relationship at
any time, with or without cause, to the extent permitted by Applicable
Laws. 

     

     22.         
Inability to Obtain
Authority.  The inability of the Company to obtain authority
from any regulatory body having jurisdiction, which authority is deemed by the
Company’s counsel to be necessary to the lawful issuance and sale of any Shares
hereunder, shall relieve the Company of any liability in respect of the failure
to issue or sell such Shares as to which such requisite authority shall not have
been obtained. 

     

     23.         
Reservation of
Shares.  The Company, during the term of this Plan, shall at
all times reserve and keep available such number of Shares as shall be
sufficient to satisfy the requirements of the Plan. 

     

     24.         
Stockholder
Approval.  The Plan shall be subject to approval by the
stockholders of the Company within twelve (12) months after the date the Plan is
adopted by the Board.  Such stockholder approval shall be obtained in
the degree and manner required under Applicable Laws. 

     

     

     

      

        -18-

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