Document:

Exhibit 10.1

     

    EXHIBIT
      10.1 

     

    2006
      NON-QUALIFIED STOCK COMPENSATION PLAN

    

    

    

    2006
      NON-QUALIFIED STOCK COMPENSATION PLAN

    

    1. Purpose
      of Plan

    

    1.1 This
      2006
      NON-QUALIFIED STOCK
      COMPENSATION PLAN (the “Plan”) of Voice Diary Inc., a Delaware corporation (the
“Company”), for employees, directors, officers consultants, advisors and other
      persons associated with the Company, is intended to advance the best interests
      of the Company by providing those persons who have a substantial responsibility
      for its management and growth with additional incentive and by increasing their
      proprietary interest in the success of the Company, thereby encouraging them
      to
      maintain their relationships with the Company. Further, the availability and
      offering of stock options and Class A Common Stock under the Plan supports
      and
      increases the Company's ability to attract and retain individuals of exceptional
      talent upon whom, in large measure, the sustained progress, growth and
      profitability of the Company depends.

    

    2. Definitions

    

    2.1 For
      Plan
      purposes, except where the context might clearly indicate otherwise, the
      following terms shall have the meanings set forth below:

    

    “Board”
      shall mean the Board of Directors of the Company.

    

    “Committee”
      shall mean the Compensation Committee, or such other committee appointed by
      the
      Board, which shall be designated by the Board to administer the Plan, or the
      Board if no committees have been established. The Committee shall be composed
      of
two
      or
      more persons
      as from
      time to time are appointed to serve by the Board. 

    

    “Common
      Shares” shall mean the Company's Class A Common Shares, $.01 par value per
      share, or, in the event that the outstanding Common Shares are hereafter changed
      into or exchanged for different shares of securities of the Company, such other
      shares or securities.

    

    “Company”
      shall mean Voice
      Diary Inc., a Delaware Corporation, and any parent or subsidiary corporation
      of
      Voice Diary Inc., as such terms are defined in Sections 425(e) and 425(f),
      respectively, of the Code.

    

    “Fair
      Market Value” shall mean, with respect to the date a given stock option is
      granted or exercised, the average of the highest and lowest reported sales
      prices of the Common Shares, as reported by such responsible reporting service
      as the Committee may select, or if there were not transactions in the Common
      Shares on such day, then the last preceding day on which transactions took
      place. The above withstanding, the Committee may determine the Fair Market
      Value
      in such other manner as it may deem more equitable for Plan purposes or as
      is
      required by applicable laws or regulations.

     

    
      
        
        

      

      
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    “Optionee”
      shall mean an employee of the company who has been granted one or more Stock
      Options under the Plan.

    

    “Class
      A
      Common Stock” shall mean shares of Class A Common Stock which are issued by the
      Company pursuant to Section 5, below.

    

    “Common
      Stockholder” means
      the
      employee of, consultant to, or director of the Company or other person to whom
      shares of Class A Common Stock are issued pursuant to this Plan.

    

    “Common
      Stock Agreement” means an agreement executed by a Common Stockholder and the
      Company as contemplated by Section 5, below, which imposes on the shares of
      Class
      A
      Common Stock
      held by
      the Common Stockholder such restrictions as the Board or Committee deem
      appropriate.

    

    “Stock
      Option” or “Non-Qualified Stock Option” or “NQSO” shall mean a stock option
      granted pursuant to the terms of the Plan.

    

    “Stock
      Option Agreement” shall mean the agreement between the Company and the Optionee
      under which the Optionee may purchase Common Shares hereunder.

    

    3. Administration
      of the Plan

    

    3.1 The
      Committee shall administer the Plan and accordingly, it shall have full power
      to
      grant Stock Options and Class A Common Stock, construe and interpret the Plan,
      establish rules and regulations and perform all other acts, including the
      delegation of administrative responsibilities, it believes reasonable and
      proper.

    

    3.2 The
      determination of those eligible to receive Stock Options and Class A Common
      Stock, and the amount, type and timing of each grant and the terms and
      conditions of the respective stock option agreements and Common Stock Agreements
      shall rest in the sole discretion of the Committee, subject to the provisions
      of
      the Plan.

    

    3.3 The
      Committee may cancel any Stock Options awarded under the Plan if an Optionee
      conducts himself in a manner which the Committee determines to be inimical
      to
      the best interest of the Company, as set forth more fully in paragraph 8 of
      Article 11 of the Plan.

    

    3.4 The
      Board, or the Committee, may correct any defect, supply any omission or
      reconcile any inconsistency in the Plan, or in any granted Stock Option, in
      the
      manner and to the extent it shall deem necessary to carry it into
      effect.

    

    3.5 Any
      decision made, or action taken, by the Committee or the Board arising out of
      or
      in connection with the interpretation and administration of the Plan shall
      be
      final and conclusive.

    

    3.6 Meetings
      of the Committee shall be held at such times and places as shall be determined
      by the Committee. A majority of the members of the Committee shall constitute
      a
      quorum for the transaction of business, and the vote of a majority of those
      members present at any meeting shall decide any question brought before that
      meeting. In addition, the Committee may take any action otherwise proper under
      the Plan by the affirmative vote, taken without a meeting, of a majority of
      its
      members.

     

    
      
        
        

      

      
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    3.7 No
      member
      of the Committee shall be liable for any act or omission of any other member
      of
      the Committee or for any act or omission on his own part, including, but not
      limited to, the exercise of any power or discretion given to him under the
      Plan,
      except those resulting from his own gross negligence or willful
      misconduct.

    

    3.8 The
      Company, through its management, shall supply full and timely information to
      the
      Committee on all matters relating to the eligibility of Optionees, their duties
      and performance, and current information on any Optionee's death, retirement,
      disability or other termination of association with the Company, and such other
      pertinent information as the Committee may require. The Company shall furnish
      the Committee with such clerical and other assistance as is necessary in the
      performance of its duties hereunder.

    

    4. Shares
      Subject to the Plan

    

    4.1 The
      total
      number of shares of the Company available for grants of Stock Options and Class
      A Common Stock under the Plan shall be 6,500,000 Common Shares, subject to
      adjustment in accordance with Article 7 of the Plan, which shares may be either
      authorized but unissued or reacquired Common Shares of the Company.

    

    4.2 If
      a
      Stock Option or portion thereof shall expire or terminate for any reason without
      having been exercised in full, the unpurchased shares covered by such NQSO
      shall
      be available for future grants of Stock Options.

    

    5. Award
      Of Class
      A Common Stock

    

    5.1 The
      Board
      or Committee from time to time, in its absolute discretion, may (a) award
Class
      A
      Common Stock
      to
      employees of, consultants to, and directors of the Company, and such other
      persons as the Board or Committee may select, and (b) permit Holders of Options
      to exercise such Options prior to full vesting therein and hold the Common
      Shares issued upon exercise of the Option as Class
      A
      Common Stock.
      In
      either such event, the owner of such Class
      A
      Common Stock
      shall
      hold such stock subject to such vesting schedule as the Board or Committee
      may
      impose or such vesting schedule to which the Option was subject, as determined
      in the discretion of the Board or Committee.

    

    5.2 Class
      A
      Common Stock
      shall be
      issued only pursuant to a Common Stock Agreement, which shall be executed by
      the
      Common Stockholder and the Company and which shall contain such terms and
      conditions as the Board or Committee shall determine consistent with this Plan,
      including such restrictions on transfer as are imposed by the Common Stock
      Agreement.

    

    5.3 Upon
      delivery of the shares of Class
      A
      Common Stock
      to the
      Common Stockholder, below, the Common Stockholder shall have, unless otherwise
      provided by the Board or Committee, all the rights of a stockholder with respect
      to said shares, subject to the restrictions in the Common Stock Agreement,
      including the right to receive all dividends and other distributions paid or
      made with respect to the Class
      A
      Common Stock.

     

    
      
        
        

      

      
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    5.4. Notwithstanding
      anything in this Plan or any Common Stock Agreement to the contrary, no Common
      Stockholders may sell or otherwise transfer, whether or not for value, any
      of
      the Class
      A
      Common Stock
      prior to
      the date on which the Common Stockholder is vested therein.

    

    5.5 All
      shares of Class
      A
      Common Stock
      issued
      under this Plan (including any shares of Class
      A
      Common Stock
      and
      other securities issued with respect to the shares of Class
      A
      Common Stock
      as a
      result of stock dividends, stock splits or similar changes in the capital
      structure of the Company) shall be subject to such restrictions as the Board
      or
      Committee shall provide, which restrictions may include, without limitation,
      restrictions concerning voting rights, transferability of the Class
      A
      Common Stock
      and
      restrictions based on duration of employment with the Company, Company
      performance and individual performance; provided that the Board or Committee
      may, on such terms and conditions as it may determine to be appropriate, remove
      any or all of such restric-tions. Class
      A
      Common Stock
      may not
      be sold or encumbered until all applicable restrictions have terminated or
      expire. The restrictions, if any, imposed by the Board or Committee or the
      Board
      under this Section 5 need not be identical for all Class
      A
      Common Stock
      and the
      imposition of any restrictions with respect to any Class
      A
      Common Stock
      shall
      not require the imposition of the same or any other restrictions with respect
      to
      any other Class
      A
      Common Stock.

    

    5.6 Each
      Common Stock Agreement shall provide that the Company shall have the right
      to
      repurchase from the Common Stockholder the unvested Class
      A
      Common Stock
      upon a
      termination of employment, termination of directorship or termination of a
      consultancy arrangement, as applicable, at a cash price per share equal to
      the
      purchase price paid by the Common Stockholder for such Class
      A
      Common Stock.

    

    5.7 In
      the
      discretion of the Board or Committee, the Common Stock Agreement may provide
      that the Company shall have the a right of first refusal with respect to the
      Class
      A
      Common Stock
      and a
      right to repurchase the vested Class
      A
      Common Stock
      upon a
      termination of the Common Stockholder's employment with the Company, the
      termination of the Common Stockholder's consulting arrangement with the Company,
      the termination of the Common Stockholder's service on the Company's Board,
      or
      such other events as the Board or Committee may deem appropriate.

    

    5.8 The
      Board
      or Committee shall cause a legend or legends to be placed on certificates
      representing shares of Class
      A
      Common Stock
      that are
      subject to restrictions under Common Stock Agreements, which legend or legends
      shall make appropriate reference to the applicable restrictions.

    

    6. Stock
      Option Terms and Conditions

    

    6.1 Consistent
      with the Plan's purpose, Stock Options may be granted to non-employee directors
      of the Company or other persons who are performing or who have been engaged
      to
      perform services of special importance to the management, operation or
      development of the Company.

    

    6.2 All
      Stock
      Options granted under the Plan shall be evidenced by agreements which shall
      be
      subject to applicable provisions of the Plan, and such other provisions as
      the
      Committee may adopt, including the provisions set forth in paragraphs 2 through
      11 of this Section 6.

    

    6.3 All
      Stock
      Options granted hereunder must be granted within ten years from the earlier
      of
      the date of this Plan is adopted or approved by the Company's
      shareholders.

    

    6.4 No
      Stock
      Option granted to any employee or 10% Shareholder shall be exercisable after
      the
      expiration of ten years from the date such NQSO is granted. The Committee,
      in
      its discretion, may provide that an Option shall be exercisable during such
      ten
      year period or during any lesser period of time.

     

    
      
        
        

      

      
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        The
      Committee
      may establish installment exercise terms for a Stock Option such that the NQSO
      becomes fully exercisable in a series of cumulating portions. If an Optionee
      shall not, in any given installment period, purchase all the Common Shares
      which
      such Optionee is entitled to purchase within such installment period, such
      Optionee's right to purchase any Common Shares not purchased in such installment
      period shall continue until the expiration or sooner termination of such NQSO.
      The Committee may also accelerate the exercise of any NQSO. However, no NQSO,
      or
      any portion thereof, may be exercisable until thirty (30) days following date
      of
      grant (“30-Day Holding Period.”).

    

    6.5 A
      Stock
      Option, or portion thereof, shall be exercised by delivery of (i) a written
      notice of exercise of the Company specifying the number of common shares to
      be
      purchased, and (ii) payment of the full price of such Common Shares, as fully
      set forth in paragraph 6 of this Section 6.

     

        No
      NQSO or
      installment thereof shall be exercisable except with respect to whole shares,
      and fractional share interests shall be disregarded. Not less than 100 Common
      Shares may be purchased at one time unless the number purchased is the total
      number at the time available for purchase under the NQSO. Until the Common
      Shares represented by an exercised NQSO are issued to an Optionee, he shall
      have
      none of the rights of a shareholder.

    

    6.6 The
      exercise price of a Stock Option, or portion thereof, may be paid:

    

    A. In
      United
      States dollars, in cash or by cashier's check, certified check, bank draft
      or
      money order, payable to the order of the Company in an amount equal to the
      option price; or

    

    B. At
      the
      discretion of the Committee, through the delivery of fully paid and
      nonassessable Common Shares, with an aggregate Fair Market Value on the date
      the
      NQSO is exercised equal to the option price, provided such tendered Shares
      have
      been owned by the Optionee for at least one year prior to such exercise;
      or

    

    C. By
      a
      combination of both A and B above.

     

        The
      Committee
      shall determine acceptable methods for tendering Common Shares as payment upon
      exercise of a Stock Option and may impose such limitations and prohibitions
      on
      the use of Common Shares to exercise an NQSO as it deems
      appropriate.

    

    6.7 With
      the
      Optionee's consent, the Committee may cancel any Stock Option issued under
      this
      Plan and issue a new NQSO to such Optionee.

    

    6.8 Except
      by
      will or the laws of descent and distribution, no right or interest in any Stock
      Option granted under the Plan shall be assignable or transferable, and no right
      or interest of any Optionee shall be liable for, or subject to, any lien,
      obligation or liability of the Optionee. Stock Options shall be exercisable
      during the Optionee's lifetime only by the Optionee or the duly appointed legal
      representative of an incompetent Optionee.

     

    
      
        
        

      

      
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    6.9 If
      the
      Optionee shall die while associated with the Company or within three months
      after termination of such association, the personal representative or
      administrator of the Optionee's estate or the person(s) to whom an NQSO granted
      hereunder shall have been validly transferred by such personal representative
      or
      administrator pursuant to the Optionee's will or the laws of descent and
      distribution, shall have the right to exercise the NQSO for one year after
      the
      date of the Optionee's death, to the extent (i) such NQSO was exercisable on
      the
      date of such termination of employment by death, and (ii) such NQSO was not
      exercised, and (iii) the exercise period may not be extended beyond the
      expiration of the term of the Option.

     

        No
      transfer
      of a Stock Option by the will of an Optionee or by the laws of descent and
      distribution shall be effective to bind the Company unless the Company shall
      have been furnished with written notice thereof and an authenticated copy of
      the
      will and/or such other evidence as the Committee may deem necessary to establish
      the validity of the transfer and the acceptance by the transferee or transferee
      of the terms and conditions by such Stock Option.

     

        In
      the event
      of death following termination of the Optionee's association with the Company
      while any portion of an NQSO remains exercisable, the Committee, in its
      discretion, may provide for an extension of the exercise period of up to one
      year after the Optionee's death but not beyond the expiration of the term of
      the
      Stock Option.

    

    6.10 Any
      Optionee who disposes of Common Shares acquired on the exercise of a NQSO by
      sale or exchange either (i) within two years after the date of the grant of
      the
      NQSO under which the stock was acquired, or (ii) within one year after the
      acquisition of such Shares, shall notify the Company of such disposition and
      of
      the amount realized upon such disposition. The transfer of Common Shares may
      also be Common by applicable provisions of the Securities Act of 1933, as
      amended.

    

    7. Adjustments
      or Changes in Capitalization

    

    7.1 In
      the
      event that the outstanding Common Shares of the Company are hereafter changed
      into or exchanged for a different number or kind of shares or other securities
      of the Company by reason of merger, consolidation, other reorganization,
      recapitalization, reclassification, combination of shares, stock split-up or
      stock dividend:

    

    A. Prompt,
      proportionate, equitable, lawful and adequate adjustment shall be made of the
      aggregate number and kind of shares subject to Stock Options which may be
      granted under the Plan, such that the Optionee shall have the right to purchase
      such Common Shares as may be issued in exchange for the Common Shares
      purchasable on exercise of the NQSO had such merger, consolidation, other
      reorganization, recapitalization, reclassification, combination of shares,
      stock
      split-up or stock dividend not taken place;

    

    B. Rights
      under unexercised Stock Options or portions thereof granted prior to any such
      change, both as to the number or kind of shares and the exercise price per
      share, shall be adjusted appropriately, provided that such adjustments shall
      be
      made without change in the total exercise price applicable to the unexercised
      portion of such NQSO's but by an adjustment in the price for each share covered
      by such NQSO's; or

     

    
      
        
        

      

      
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    C. Upon
      any
      dissolution or liquidation of the Company or any merger or combination in which
      the Company is not a surviving corporation, each outstanding Stock Option
      granted hereunder shall terminate, but the Optionee shall have the right,
      immediately prior to such dissolution, liquidation, merger or combination,
      to
      exercise his NQSO in whole or in part, to the extent that it shall not have
      been
      exercised, without regard to any installment exercise provisions in such
      NQSO.

    

    7.2 The
      foregoing adjustments and the manner of application of the foregoing provisions
      shall be determined solely by the Committee, whose determination as to what
      adjustments shall be made and the extent thereof, shall be final, binding and
      conclusive. No fractional Shares shall be issued under the Plan on account
      of
      any such adjustments.

    

    8. Merger,
      Consolidation or Tender Offer

    

    8.1 If
      the
      Company shall be a party to a binding agreement to any merger, consolidation
      or
      reorganization or sale of substantially all the assets of the Company, each
      outstanding Stock Option shall pertain and apply to the securities and/or
      property which a shareholder of the number of Common Shares of the Company
      subject to the NQSO would be entitled to receive pursuant to such merger,
      consolidation or reorganization or sale of assets.

    

    8.2 In
      the
      event that:

    

    A. Any
      person other than the Company shall acquire more than 20% of the Common Shares
      of the Company through a tender offer, exchange offer or otherwise;

    

    B. A
      change
      in the “control” of the Company occurs, as such term is defined in Rule 405
      under the Securities Act of 1933;

    

    C. There
      shall be a sale of all or substantially all of the assets of the
      Company;

    

    any
      then
      outstanding Stock Option held by an Optionee, who is deemed by the Committee
      to
      be a statutory officer (“Insider”) for purposes of Section 16 of the Securities
      Exchange Act of 1934 shall be entitled to receive, subject to any action by
      the
      Committee revoking such an entitlement as provided for below, in lieu of
      exercise of such Stock Option, to the extent that it is then exercisable, a
      cash
      payment in an amount equal to the difference between the aggregate exercise
      price of such NQSO, or portion thereof, and, (i) in the event of an offer or
      similar event, the final offer price per share paid for Common Shares, or such
      lower price as the Committee may determine to conform an option to preserve
      its
      Stock Option status, times the number of Common Shares covered by the NQSO
      or
      portion thereof, or (ii) in the case of an event covered by B or C above, the
      aggregate Fair Market Value of the Common Shares covered by the Stock Option,
      as
      determined by the Committee at such time.

    

    8.3 Any
      payment which the Company is required to make pursuant to paragraph 8.2 of
      this
      Section 8 shall be made within 15 business days, following the event which
      results in the Optionee's right to such payment. In the event of a tender offer
      in which fewer than all the shares which are validly tendered in compliance
      with
      such offer are purchased or exchanged, then only that portion of the shares
      covered by an NQSO as results from multiplying such shares by a fraction, the
      numerator of which is the number of Common Shares acquired pursuant to the
      offer
      and the denominator of which is the number of Common Shares tendered in
      compliance with such offer shall be used to determine the payment thereupon.
      To
      the extent that all or any portion of a Stock Option shall be affected by this
      provision, all or such portion of the NQSO shall be terminated.

     

    
      
        
        

      

      
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    8.4 Notwithstanding
      paragraphs 8.1 and 8.3 of this Section 8, the Committee may, by unanimous vote
      and resolution, unilaterally revoke the benefits of the above provisions;
      provided, however, that such vote is taken no later than ten business days
      following public announcement of the intent of an offer or the change of
      control, whichever occurs earlier.

    

    9. Amendment
      and Termination of Plan

    

    9.1 The
      Board
      may at any time, and from time to time, suspend or terminate the Plan in whole
      or in part or amend it from time to time in such respects as the Board may
      deem
      appropriate and in the best interest of the Company.

    

    9.2 No
      amendment, suspension or termination of this Plan shall, without the Optionee's
      consent, alter or impair any of the rights or obligations under any Stock Option
      theretofore granted to him under the Plan.

    

    9.3 The
      Board
      may amend the Plan, subject to the limitations cited above, in such manner
      as it
      deems necessary to permit the granting of Stock Options meeting the requirements
      of future amendments or issued regulations, if any, to the Code.

    

    9.4 No
      NQSO
      may be granted during any suspension of the Plan or after termination of the
      Plan.

    

    10. Government
      and Other Regulations

    

    10.1 The
      obligation of the Company to issue, transfer and deliver Common Shares for
      Stock
      Options exercised under the Plan shall be subject to all applicable laws,
      regulations, rules, orders and approval which shall then be in effect and
      required by the relevant stock exchanges on which the Common Shares are traded
      and by government entities as set forth below or as the Committee in its sole
      discretion shall deem necessary or advisable. Specifically, in connection with
      the Securities Act of 1933, as amended, upon exercise of any Stock Option,
      the
      Company shall not be required to issue Common Shares unless the Committee has
      received evidence satisfactory to it to the effect that the Optionee will not
      transfer such shares except pursuant to a registration statement in effect
      under
      such Act or unless an opinion of counsel satisfactory to the Company has been
      received by the Company to the effect that such registration is not required.
      Any determination in this connection by the Committee shall be final, binding
      and conclusive. The Company may, but shall in no event be obligated to, take
      any
      other affirmative action in order to cause the exercise of a Stock Option or
      the
      issuance of Common Shares pursuant thereto to comply with any law or regulation
      of any government authority.

    

    11. Miscellaneous
      Provisions

    

    11.1 No
      person
      shall have any claim or right to be granted a Stock Option or Class A Common
      Stock under the Plan, and the grant of an NQSO or Class A Common Stock under
      the
      Plan shall not be construed as giving an Optionee or Common Stockholder the
      right to be retained by the Company. Furthermore, the Company expressly reserves
      the right at any time to terminate its relationship with an Optionee with or
      without cause, free from any liability, or any claim under the Plan, except
      as
      provided herein, in an option agreement, or in any agreement between the Company
      and the Optionee.

     

    
      
        
        

      

      
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    11.2 Any
      expenses of administering this Plan shall be borne by the Company.

    

    11.3 The
      payment received from Optionee from the exercise of Stock Options under the
      Plan
      shall be used for the general corporate purposes of the Company.

    

    11.4 The
      place
      of administration of the Plan shall be in the P. R. China, and the validity,
      construction, interpretation, administration and effect of the Plan and of
      its
      rules and regulations, and rights relating to the Plan, shall be determined
      solely in accordance with the laws of the State of Delaware.

    

    11.5 Without
      amending the Plan, grants may be made to persons who are foreign nationals
      or
      employed outside the United States, or both, on such terms and conditions,
      consistent with the Plan's purpose, different from those specified in the Plan
      as may, in the judgment of the Committee, be necessary or desirable to create
      equitable opportunities given differences in tax laws in other
      countries.

    

    11.6 In
      addition to such other rights of indemnification as they may have as members
      of
      the Board or the Committee, the members of the Committee shall be indemnified
      by
      the Company against all costs and expenses reasonably incurred by them in
      connection with any action, suit or proceeding to which they or any of them
      may
      be party by reason of any action taken or failure to act under or in connection
      with the Plan or any Stock Option granted thereunder, and against all amounts
      paid by them in settlement thereof (provided such settlement is approved by
      independent legal counsel selected by the Company) or paid by them in
      satisfaction of a judgment in any such action, suit or proceeding, except a
      judgment based upon a finding of bad faith; provided that upon the institution
      of any such action, suit or proceeding a Committee member shall, in writing,
      give the Company notice thereof and an opportunity, at its own expense, to
      handle and defend the same, with counsel acceptable to the Optionee, before
      such
      Committee member undertakes to handle and defend it on his own
      behalf.

    

    11.7 Stock
      Options may be granted under this Plan from time to time, in substitution for
      stock options held by employees of other corporations who are about to become
      employees of the Company as the result of a merger or consolidation of the
      employing corporation with the Company or the acquisition by the Company of
      the
      assets of the employing corporation or the acquisition by the Company of stock
      of the employing corporation as a result of which it becomes a subsidiary of
      the
      Company. The terms and conditions of such substitute stock options so granted
      may vary from the terms and conditions set forth in this Plan to such extent
      as
      the Board of Directors of the Company at the time of grant may deem appropriate
      to conform, in whole or in part, to the provisions of the stock options in
      substitution for which they are granted, but no such variations shall be such
      as
      to affect the status of any such substitute stock options as a stock option
      under Section 422A of the Code.

    

    11.8 Notwithstanding
      anything to the contrary in the Plan, if the Committee finds by a majority
      vote,
      after full consideration of the facts presented on behalf of both the Company
      and the Optionee, that the Optionee has been engaged in fraud, embezzlement,
      theft, insider trading in the Company's stock, commission of a felony or proven
      dishonesty in the course of his association with the Company or any subsidiary
      corporation which damaged the Company or any subsidiary corporation, or for
      disclosing trade secrets of the Company or any subsidiary corporation, the
      Optionee shall forfeit all unexercised Stock Options and all exercised NQSO's
      under which the Company has not yet delivered the certificates and which have
      been earlier granted to the Optionee by the Committee. The decision of the
      Committee as to the cause of an Optionee's discharge and the damage done to
      the
      Company shall be final. No decision of the Committee, however, shall affect
      the
      finality of the discharge of such Optionee by the Company or any subsidiary
      corporation in any manner.

     

    12. Written
      Agreement

    

    12.1 Each
      Stock Option granted hereunder shall be embodied in a written Stock Option
      Agreement which shall be subject to the terms and conditions prescribed above
      and shall be signed by the Optionee and by the President or any Vice President
      of the Company, for and in the name and on behalf of the Company. Such Stock
      Option Agreement shall contain such other provisions as the Committee, in its
      discretion shall deem advisable.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    
 

    Number
      of
      Shares: ____________        Date
      of
      Grant: 

    

    FORM
      OF
      NON-QUALIFIED STOCK OPTION AGREEMENT

    

    AGREEMENT
      made this____day
      of__________200_ ,
      between
     
      (the
“Optionee”), and Voice
      Diary Inc.,
      (the
“Company”).

     

    1. Grant
      of Option

     

        The
      Company,
      pursuant to the provisions of the Non-Qualified Stock Compensation Plan (the
      “Plan”), adopted by the Board of Directors on December 6, 2006, the Company
      hereby grants to the Optionee, subject to the terms and conditions set forth
      or
      incorporated herein, an option to purchase from the Company all or any part
      of
      an aggregate of ________ shares
      of
      its $.01 par value Class A Common Stock, as such Class A Common Stock is now
      constituted, at the purchase price of $________ per share. The provisions of
      the
      Plan governing the terms and conditions of the Option granted hereby are
      incorporated in full herein by reference.

     

    2. Exercise

     

        The
      Option
      evidenced hereby shall be exercisable in whole or in part on or
      after___________
      and on
      or before __________ ,
      provided that the cumulative number of shares of Class A Common Stock as to
      which this Option may be exercised (except in the event of death, retirement,
      or
      permanent and total disability, as provided in paragraph 6.9 of the Plan) shall
      not exceed the following amounts:

     

    Cumulative
      Number   Prior
      to
      Date

       
of
      Shares                             
      (Not
      Inclusive of)

    

    

    The
      Option evidenced hereby shall be exercisable by the delivery to and receipt
      by
      the Company of (i) written notice of election to exercise, in the form set
      forth
      in Attachment B hereto, specifying the number of shares to be purchased; (ii)
      accompanied by payment of the full purchase price thereof in cash or certified
      check payable to the order of the Company, or by fully paid and nonassessable
      Class A Common Stock of the Company properly endorsed over to the Company,
      or by
      a combination thereof, and (iii) by return of this Stock Option Agreement for
      endorsement of exercise by the Company on Schedule I hereof. In the event fully
      paid and nonassessable Class A Common Stock is submitted as whole or partial
      payment for shares to be purchased hereunder, such Class A Common Stock will
      be
      valued at their Fair Market Value (as defined in the Plan) on the date such
      shares received by the Company are applied to payment of the exercise
      price.

    

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

       

      3. Transferability

    

     

        The
      Option
      evidenced hereby is not assignable or transferable by the Optionee other than
      by
      the Optionee's will or by the laws of descent and distribution, as provided
      in
      paragraph 6.9 of the Plan. The Option shall be exercisable only by the Optionee
      during his lifetime.

     

                                    Voice
      Diary
      Inc.

    

    

                                    By:

                                                                                   
      Name:

    ATTEST:                                                                 
      Title:

    

    

    

    ________________________________

    Secretary

    

     

        Optionee
      hereby acknowledges receipt of a copy of the Plan, attached hereto and accepts
      this Option subject to each and every term and provision of such Plan. Optionee
      hereby agrees to accept as binding, conclusive and final, all decisions or
      interpretations of the of the Board of Directors administering the Plan on
      any
      questions arising under such Plan. Optionee recognizes that if Optionee's
      employment with the Company or any subsidiary thereof shall be terminated
      without cause, or by the Optionee, prior to completion or satisfactory
      performance by Optionee (except as otherwise provided in paragraph 6 of the
      Plan) all of the Optionee's rights hereunder shall thereupon terminate; and
      that, pursuant to paragraph 6 of the Plan, this Option may not be exercised
      while there is outstanding to Optionee any unexercised Stock Option granted
      to
      Optionee before the date of grant of this Option.

    

    Dated:_______                                                                                                                        
      ________________________________

    Optionee

    

                                                                                                                                                   
      ________________________________

    Print
      Name

    

                                                                                                                                                    
      ________________________________

    Address

    

                                                                                                                                                   
________________________________

    Social
      Security No.

    

     

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    ATTACHMENT
      B

    

    NOTICE
      OF
      EXERCISE

    

    

    

    To: Voice
      Diary Inc.,

    

    

    

    (1)  The
      undersigned hereby elects to purchase ________ shares of Class A Common Shares
      (the “Common Shares”), of Voice Diary,
      pursuant
      to the terms of the attached Non-Qualified Stock Option Agreement, and tenders
      herewith payment of the exercise price in full, together with all applicable
      transfer taxes, if any.

     

    (2)  Please
      issue a certificate or certificates representing said shares of Common Shares
      in
      the name of the undersigned or in such other name as is specified
      below:

     

    

    _______________________________

    (Name)

    

    _______________________________

    (Address)

    

    _______________________________

                                                                            (Address)

    

    

    

    Dated:

    

    

    ________________________

    Signature

    

    

    Optionee:__________________             
      Date
      of
      Grant: ________________________

    

    

    

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      I

    

    

    
      	
              DATE

            	
              SHARES
                PURCHASED

            	
              PAYMENT
                RECEIVED

            	
              UNEXERCISED

              SHARES

              REMAINING

            	
              ISSUING

              OFFICER

              INITIALS

            
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

    

     

     

    
      
        
        

      

      
        13Exhibit 10.2

OIL-DRI CORPORATION OF AMERICA
 2006 LONG-TERM INCENTIVE PLAN
 EMPLOYEE STOCK OPTION AGREEMENT
 for Class A Common Stock

          This Stock Option Agreement (this “Agreement”) is made as of                      [date] (the “Grant Date”), between Oil-Dri Corporation of America (the “Company”), and                                [grantee name] (the “Participant”).

          WHEREAS, the Company has adopted the Oil-Dri Corporation of America 2006 Long-Term Incentive Plan (the “Plan”), in order to provide an additional incentive to certain employees of the Company and its subsidiaries; and 

          WHEREAS, the Committee responsible for administration of the Plan has determined to grant an Option to the Participant as provided herein;

          NOW, THEREFORE, the parties hereto agree as follows:

          1.       Grant of Option

                    1.1  The Company hereby grants to the Participant the right and option (the “Option”) to purchase all or any part of an aggregate of                      [number of shares] whole shares of Stock subject to, and in accordance with, the terms and conditions set forth in this Agreement.  “Stock” means Class A Common Stock or if no Class A Common Stock is issued and publicly traded on the New York Stock Exchange or any other national stock exchange or national market system, then Common Stock, of the Company, par value $.10 per share.

                    1.2  The Option is not intended to qualify as an Incentive Stock Option within the meaning of Section 422 of the Internal Revenue Code.

                    1.3  This Agreement shall be construed in accordance and consistent with, and subject to, the provisions of the Plan (the provisions of which are incorporated herein by reference); and, except as otherwise expressly set forth herein, the capitalized terms used in this Agreement shall have the same definitions as set forth in the Plan.

          2.       Purchase Price.

                    The price at which the Participant shall be entitled to purchase shares upon the exercise of the Option shall be $                     [price] per share, which has been determined to be not less than the Fair Market Value of the Stock on the Grant Date.  

          3.       Duration of Option.

                    The Option shall be exercisable to the extent and in the manner provided herein for a period of ten (10) years from the Grant Date (the “Exercise Term”); provided, however, that the Option may be earlier terminated as provided in Section 6 hereof.

          4.       Exercisability of Option.

                    Unless otherwise provided in this Agreement, the Option shall entitle the Participant to purchase, in whole at any time or in part from time to time, the percentage of the total number of shares covered by the Option specified in the following schedule:

	
  
On or   after each of the following vesting dates
  	
   
 	
  
Cumulative   percentage of Option which may be purchased
  
	
  

  	
  
 
  	
  

  
	
  
[date]
  	
   
 	
  
[%]
  
	
  
[date]
  	
   
 	
  
[%]
  
	
  
[date]
  	
   
 	
  
[%]
  
	
  
[date]
  	
   
 	
  
[%]
  
	
  [date]
  	
   
 	
  
[%]
  

          5.       Manner of Exercise and Payment.

                    5.1  Subject to the terms and conditions of this Agreement and the Plan, the Option may be exercised by delivery of written notice of exercise to the Company, at its principal executive office.  Such notice shall be signed by the Participant and shall state that the Participant is electing to exercise the Option and the number of shares in respect of which the Option is being exercised.

                    5.2  The notice of exercise shall be accompanied by the full purchase price for the shares in respect of which the Option is being exercised, in (i) cash or by check or, if indicated in the notice, such payment shall follow by check from a registered broker acting as agent on behalf of the Participant or (ii) by transferring to the Company shares of Class A Common Stock, Common Stock or Class B Stock  of the Company held by the Participant for at least six months prior to the exercise of the Option and having a Fair Market Value on the date of exercise equal to the cash amount for which such shares are substituted.

                    5.3  Upon receipt of notice of exercise and full payment for the shares of Stock in respect of which the Option is being exercised, the Company shall take such action as may be necessary to effect the transfer to the Participant of the number of shares of Stock as to which such exercise was effective.

                    5.4  The Participant shall not be deemed to be the owner of, or to have any of the rights of an owner with respect to any shares of Stock subject to the Option until (i) the Option shall have been exercised pursuant to the terms of this Agreement, (ii) the Company shall have issued and delivered the shares to the Participant, and (iii) the Participant’s name shall have been entered as a stockholder of record on the books of the Company, whereupon the Participant shall have full voting and other ownership rights with respect to such shares.

          6.       Termination of Employment.

                    6.1   Retirement, Disability or Death.

                    If the employment of the Participant is terminated as the result of the Participant’s Retirement from the Company when the Participant is eligible for an immediate benefit under a Company sponsored defined benefit retirement plan and the Participant’s age plus years of service on the date of retirement are equal to at least eighty (80); or as a result of the Disability of the Participant as defined in the Plan; or upon the death of the Participant, the Option shall become immediately and fully exercisable.  The Participant (or a deceased Participant’s legal representative or beneficiary) may exercise the Option at any time within three years after such retirement, Disability, or death.

                    6.2  Other Termination of Employment.  

                    Generally, if the employment of the Participant is terminated for any reason other than those set forth in Section 6.1, the Participant may, at any time within ninety (90) days after the Participant’s termination of employment, exercise the Option to the extent, but only to the extent, that the Option or portion thereof was exercisable on the date of termination.  However, if the Participant is terminated for Cause, as defined in the Plan, any unexercised portion of the Option shall be immediately forfeited and may not be exercised by the Participant.

2

                    6.3  No Extension of Exercise Term.  

                    Notwithstanding the terms of Section 6.1 or 6.2 above or Section 7 below, in no event may the Option be exercised by anyone after the expiration of the Exercise Term.

          7.       Effect of Change of Control.

                    In the event of a Change of Control of the Company, as defined in the Plan, the Option shall become immediately and fully exercisable.  If the employment of the Participant terminates for any reason at or after a Change of Control, the Participant may exercise the Option at any time within three years after his or her termination of employment. 

          8.       Non-transferability.

                    The Option shall not be transferable other than by will or the laws of descent and distribution or as otherwise permitted by the Plan.  During the lifetime of the Participant the Option shall be exercisable only by the Participant, unless it has been transferred as permitted by the Plan.  

          9.       No Right of Continued Employment.

                    Nothing in this Agreement or the Plan shall confer upon the Participant any right with respect to continuance of employment by the Company or any subsidiary, nor shall this Agreement or the Plan interfere in any way with the right of the Company to terminate the Participant’s employment at any time.          

          10.     Adjustments.

                    Upon the occurrence of various corporate events as described in Section 5.4 of the Plan, the Committee shall make appropriate adjustments to the number or class of shares of Stock subject to the Option and the purchase price for such shares.  The Committee’s adjustment shall be final, binding and conclusive for all purposes of this Agreement.

          11.     Withholding of Taxes.

                    11.1  Generally. 

                    The Company shall have the right to deduct from any distribution of cash to the Participant, an amount equal to the federal, state and local income taxes and other amounts as may be required by law to be withheld (the “Withholding Taxes”) with respect to any exercise of the Option by the Participant.  If a Participant is entitled to receive shares of Stock upon exercise of an Option, the Participant shall pay the Withholding Taxes to the Company prior to the issuance of such shares of Stock.

                    Payment of the applicable Withholding Taxes may be made in (i) cash, or (ii) by the Participant making a  written election to have withheld a portion of the shares of Stock issuable to him or her upon exercise of the Option and valued at its Fair Market Value on the date of exercise.  

                    11.2   Option Transferred.  

                    If, as permitted in the Plan, the Participant transfers the Option (or any portion thereof), then upon any exercise by the transferee of such transferred Option, the Participant shall be obligated to pay to the Company an amount sufficient to satisfy all federal, state, and local withholding tax requirements related thereto.  The Company’s right to enforce such obligation against the Participant shall include the right to withhold such amount from compensation otherwise due to the Participant or from any shares of Stock due to the Participant under the Plan, which amount shall be reduced by any amount remitted to the Company by the Participant (in lieu of such withholding obligation) within ten days after notice by the Company to the Participant of such exercise.  The Company may not enforce such obligation against the
transferee.

3

          12.     Participant Bound by the Plan.

          The Participant hereby acknowledges receipt of a copy of the Plan and agrees to be bound by all the terms and provisions thereof.  

          13.     Modification of Agreement.

                    This Agreement may be modified, amended, suspended or terminated, and any terms or conditions may be waived, but only by a written instrument executed by the parties hereto.

          14.      Severability.

                    Should any provision of this Agreement be held by a court of competent jurisdiction to be unenforceable or invalid for any reason, the remaining provisions of this Agreement shall not be affected by such holding and shall continue in full force in accordance with their terms.

          15.     Governing Law.

                    The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of Delaware without giving effect to the conflicts of laws principles thereof.

          16.     Successors in Interest.

                    This Agreement shall inure to the benefit of and be binding upon any successor to the Company.  This Agreement shall inure to the benefit of the Participant’s legal representatives or, if applicable, a transferee and the transferee’s legal representatives.  Except as otherwise provided herein or in the Plan, all obligations imposed upon the Participant and all rights granted to the Company under this Agreement shall be final, binding and conclusive upon any transferee and upon the Participant’s or transferee’s heirs, executors, administrators and successors.

          17.       Resolution of Disputes.

                    Any dispute or disagreement which may arise under, or as a result of, or in any way relate to, the interpretation, construction or application of this Agreement shall be determined by the Committee.  Any determination made hereunder shall be final, binding and conclusive on the Participant and Company for all purposes.

	
   
  	
  
OIL-DRI CORPORATION OF AMERICA
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
By:
  	
   
 
	
  
 
  	
  
 
  	
  

  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  

  
	
  
 
  	
  
 
  	
  
Participant
  
	
   
  	
   
  	
   
  
	
   
  	
   
  	
  

  
	
   
  	
   
  	
  Name of   Transferee (if applicable)
  

4

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