Document:

Exhibit 10.2

                                  NAVIDEC, INC.

                    CLASS B WARRANT TO PURCHASE COMMON STOCK

Certificate No. BX-                                                     Warrants
                   ----------                                 ----------

                           _____________________, 2003

     Navidec, Inc. ("Company") certifies that, for valuable consideration,
receipt of which is hereby acknowledged, that ___________________ ("Holder") is
entitled to purchase from the Company ___________ shares of the Company's no par
value common stock (the "Shares") at the price of $4.00 per Share ("Purchase
Price").

     1. Exercise.

        a. Time of Exercise. This Warrant may be exercised in whole or in part
(but not as to fractional shares) at the office of the Company, at any time or
from time to time, provided, however, that this Warrant shall expire and be null
and void if not exercised in the manner herein provided, by 5:00 p.m. EST, on
August 31, 2005, the "Expiration Date."

        b. Manner of Exercise. This Warrant is exercisable at the Purchase
Price, payable in cash or by check, payable to the order of the Company, subject
to adjustment as provided in Section 2 hereof. Upon surrender of this Warrant
with the annexed Subscription Form duly executed, together with payment of the
Purchase Price for the Units purchased (and any applicable transfer taxes) at
the offices of the Company, 6399 Fiddlers Green Circle, Suite 300, Greenwood
Village, Colorado 80111, the Holder shall be entitled to receive a certificate
or certificates for the Shares so purchased.

        c. Delivery of Stock Certificates. As soon as practicable, but not
exceeding 10 days, after complete or partial exercise of this Warrant, the
Company, at its expense, shall cause to be issued in the name of the Holder (or
upon payment by the Holder of any applicable transfer taxes, the Holder's
assigns) certificate or certificates for the number of fully paid and
non-assessable Shares to which the Holder shall be entitled upon such exercise,
determined in accordance with Section 2 hereof.

        d. Record Date of Issuance of Shares. Irrespective of the date of
issuance and delivery of certificates for any stock or securities issuable upon
the exercise of this Warrant, each person (including a corporation or
partnership) in whose name any such certificate is to be issued shall for all
purposes be deemed to have become the holder of record of the stock or other
securities represented thereby immediately prior to the close of business on the
date on which a duly executed Subscription Form containing notice of exercise of
this Warrant and payment of the Purchase Price is received by the Company.

<PAGE>

     2. Adjustment of Purchase Price. The Purchase Price shall be subject to
adjustment as follows:

        a. In case the Company shall (1) pay a dividend in shares of its capital
stock (other than an issuance of shares of capital stock to holders of Common
Stock who have elected to receive a dividend in shares in lieu of cash), (ii)
subdivide its outstanding shares of Common Stock, (iii) reduce, consolidate or
combine its outstanding shares of Common Stock into a smaller number of shares,
or (iv) Issue by reclassification of its shares of Common Stock any shares of
the Company, the Purchase Price in effect immediately prior thereto shall be
adjusted to that amount determined by multiplying the Purchase Price in effect
immediately prior to such date by a fraction, of which the numerator shall be
the number of shares of Common Stock outstanding on such date before giving
effect to such divisions, subdivision, reduction, combination or consolidation
or stock dividend and of which the denominator shall be the number of shares of
Common Stock after giving affect thereto. The number of shares issuable shall
also be adjusted upward or downward determined by multiplying the number of
warrants owned by the Holder by a fraction of which the denominator shall be the
number of shares of Common Stock outstanding on such date before giving effect
to such divisions, subdivision, reduction, combination or consolidation or stock
dividend and of which the numerator shall be the number of shares of Common
Stock after giving affect thereto. Such adjustment shall be made successively
whenever any such effective date or record date shall occur. An adjustment made
pursuant to this subsection (a) shall become effective retroactively to the
Effective Date immediately after the record date in the case of a dividend and
shall become effective immediately after the effective date In the case of a
subdivision, reduction, consolidation, combination or reclassification.

        b. If the Common Stock issuable upon the conversion of the Warrant shall
be changed into the same or a different number of shares of any class or classes
of stock, whether by capital reorganization, reclassification or otherwise
(other than a subdivision or combination of shares or stock dividend provided
for above, or a reorganization, merger, consolidation or sale of assets provided
for in this Section 2), then, and in each such event, the Holder of this Warrant
shall have the right thereafter to convert such Warrant into the kind and amount
of shares of Common Stock and other securities and property receivable upon such
reorganization, reclassification, or other change by the Holders of the number
of shares of Common Stock into which such Warrant might have been converted, as
reasonably determined by the Company's board of directors, immediately prior to
such reorganization, reclassification, or change, all subject to further
adjustment as provided herein.

        c. If at any time or from time to time there shall be a capital
reorganization of the Common Stock (other than a subdivision, combination,
reclassification or exchange of shares provided for elsewhere in this Section 2)
or a merger or consolidation of the Company with or into another corporation, or
the sale of all or substantially all of the Company's properties and assets to
any other person, then, as a part of such reorganization, merger, consolidation
or sale, provision shall be made as reasonably determined by the Company's board
of directors so that the Holder of the Warrant shall thereafter be entitled to
receive upon conversion of such Warrant, the number of shares of stock or other
securities or property of the Company or of the successor corporation resulting
from such merger or consolidation or sale, to which a holder of Common Stock
deliverable upon conversion would have been entitled on such capital
reorganization, merger, consolidation or sale.

<PAGE>

        d. The adjustments provided for in this Section 2 are cumulative and
shall apply to successive divisions, subdivisions, reductions, combinations,
consolidations, issues, distributions or other events contemplated herein
resulting in any adjustment under the provisions or this section, provided that,
notwithstanding any other provision of this section, no adjustment of the
Purchase Price shall be required unless such adjustment would require an
increase or decrease of at least 1% in the Purchase Price then In effect;
provided, however, that any adjustment which by reason of this subsection (a)
are not required to be made shall be carried forward and taken into account in
any subsequent adjustment.

        e. Upon each adjustment of the Purchase Price, the Company shall give
prompt written notice thereof addressed to the Holder at the address of such
Holder as shown on the records of the Company, which notice shall state the
Purchase Price resulting from such adjustment and the increase or decrease, if
any, in the number of shares issuable upon the conversion of the Holder's
warrants, setting forth in reasonable detail the method of calculation and the
facts upon which such calculations is based.

        f. In the event of any question arising with respect to the adjustments
provided for In this Section 2, such question shall be conclusively determined
by an opinion of independent certified public accountants appointed by the
Company (who may be the auditors of the Company) and acceptable to the Holder of
this Warrant. Such accountants shall have access to all necessary records of the
Company, and such determination shall be binding upon the Company and the
Holder.

        g. The Company may in its sole discretion and without any obligation to
do so reduce the Purchase Price then in effect by giving 15 days' written notice
to the Holders. The Company may limit such reduction as to its temporal duration
or may impose other conditions thereto in its sole discretion.

     3. Call Provision. If the closing bid price of the Company's Common Stock
is equal to or above $4.00 per share for 10 consecutive trading days at any time
prior to the Expiration Date and the Shares underlying the Warrants have been
registered pursuant to Registration Rights, the Company may call this Warrant.
Notice of the call will be mailed at least thirty (30) days before the date
fixed by the board of directors of the Company as the date of the call (the
"Call Date"). If the Holder fails to exercise the Warrant prior to the Call
Date, it will expire. For purposes of this Section the closing bid price of the
Common Stock on any particular date means (i) if the Shares are listed on any
national securities exchange or reported in the Nasdaq System, the closing bid
price as reported for transactions on the exchange or Nasdaq for the period in
question, or (ii) if the Common Stock is publicly traded on the OTC bulletin
board ("OTCBB") but not listed on any exchange or reported on Nasdaq, the
average of the means between bona fide bid and asked prices on the dates in
question as quoted by three independent market makers. This right of call shall
not restrict the right of the Holder to Exercise the Warrants prior to the Call
Date.

     4. Registration Rights of the Navidec Class B Warrant. The Company agrees
that it will use all reasonable efforts to file a registration statement with
the Securities and Exchange Commission to register the Shares within 90 days of
the completion of its $1.2 million unit offering of common shares and Class A
and Class B Warrants (the "Offering"). Additionally, the Company will consider
and if practical, include in said registration statement, the registration of

<PAGE>

the Warrants issued in the Offering with a view toward creating a trading market
for the Warrants. Once filed, the Company will use reasonable commercial efforts
to have said registration statement declared effective not later than 180 days
after the completion of the Offering. Should the registration statement not be
declared effective within said 180 day period, the expiration date of the Class
A and Class B warrants shall be extended one day for each day in excess of 180
days of that said registration statement is not declared effective. Should any
Holder exercise the Warrants prior to the registration statement being
effective, the registration statement shall be amended or if not yet filed,
filed to reflect that the registration is of the resale of the Shares of any
Holder electing to exercise the Warrant prior to the effectiveness of the
registration statement. All of the expenses of the registration shall be borne
by the Company. The Company shall have the right to delete from any resale
registration statement the securities of any Holder or a Holder of Shares who
fails to respond to a request for reasonable information deemed necessary for
inclusion in the registration statement.

     5. Restriction on Transfer. The Holder, by its acceptance hereof,
represents, warrants, covenants and agrees that (i) the Holder has knowledge of
the business and affairs of the Company, and (ii) this Warrant and the Shares
issuable upon the exercise of this Warrant are being acquired for investment and
not with a view to the distribution hereof and that absent an effective
registration statement under the Securities Act of 1933 as amended (the "Act")
covering the disposition of this Warrant or the Shares issued or issuable upon
exercise of this Warrant, they will not be sold, transferred, assigned,
hypothecated or otherwise disposed of without first providing the Company with
an opinion of counsel (which may be counsel for the Company) or other evidence,
reasonably acceptable to the Company, to the effect that such sale, transfer,
assignment, hypothecation or other disposal will be exempt from the registration
and prospectus delivery requirements of the Act and the registration or
qualification requirements of any applicable state securities laws. The Holder
consents to the making of a notation in the Company's records or giving to any
transfer agent of the Warrant or the Shares an order to implement such
restriction on transferability.

        This Warrant and the Shares shall beer the following legend or a legend
of similar import, provided, however, that such legend shall be removed or not
placed upon the Warrant or the Shares if such legend Is no longer necessary to
assure compliance with the Securities Act of 1933, as amended:

        THESE WARRANTS AND THE SHARES ISSUABLE UPON THEIR EXERCISE HAVE NOT BEEN
REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR THE
SECURITIES COMMISSION OF ANY STATE BECAUSE THEY ARE BELIEVED TO BE EXEMPT FROM
REGISTRATION UNDER REGULATION S PROMULGATED PURSUANT TO THE ACT. THIS WARRANT IS
"RESTRICTED" AND MAY NOT BE RESOLD OR TRANSFERRED NOR MAY THE WARRANT BE
EXERCISED BY OR ON BEHALF OF ANY U. S. PERSON EXCEPT AS PERMITTED UNDER THE ACT
PURSUANT TO THE REGISTRATION OF THE SECURITIES OR EXEMPTION THEREFROM.

     6. Payment of Taxes. All Shares issued upon the exercise of this Warrant
shall be validly issued, fully paid and non-assessable and the Company shall pay
all taxes and other governmental charges (other than income tax) that may be
imposed in respect of the issue or delivery thereof. The Company shall not be
required, however, to pay any tax or other charge imposed In connection with any
transfer involved in the issue of any certificate for Shares in any name other

<PAGE>

than that of the Holder surrendered in connection with the purchase of such
Shares, and In such case the Company shall not be required to issue or deliver
any stock certificate until such tax or other charge has been paid or it has
been established to the Company's satisfaction that no tax or other charge is
due.

     7. Reservation of Common Stock. The Company shall at all times reserve and
keep available out of its authorized but unissued shares of Common Stock, solely
for the purpose of issuance upon the exercise of this Warrant, such number of
shares of Common Stock as shall be issuable upon the exercise hereof. The
Company covenants and agrees that, upon exercise of this Warrant and payment of
the Purchase Price thereof, the Shares issuable upon such exercise shall be duly
and validly issued, fully paid and non-assessable.

     8. Notices to Holder. Nothing contained in this Warrant shall be construed
as conferring upon the Holder hereof the right to vote or to consent or to
receive notice as a shareholder in respect of any meetings of shareholders for
the election of directors or any other matter or as having any rights whatsoever
as a shareholder of the Company. All notices, requests, consents and other
communications hereunder shall be in writing and shall be deemed to have been
duly made when delivered or mailed by registered or certified mail, postage
prepaid, return receipt requested:

        a. If to the Holder, to the address of such Holder as shown on the books
of the Company, or

        b. If to the Company, to the address set forth in Section 2(b) hereof or
to any other address notice of which is delivered to the Holder by regular mail.

     9. Replacement of Warrant. Upon receipt of evidence reasonably satisfactory
to the Company of the ownership of and the loss, theft, destruction or
mutilation of this Warrant and (in case of loss, theft or destruction) upon
delivery of an indemnity agreement in an amount reasonably satisfactory to the
Company, or (in the case of mutilation) upon surrender and cancellation of the
mutilated Warrant, the Company will execute and deliver, in lieu thereof, a new
Warrant of like tenor.

     10. Successors. All the covenants, agreements, representations and
warranties contained in this Warrant shall bind the parties hereto and their
respective heirs, executors, administrators, distributees, successors and
assigns.

     11. Changes or Waiver. Neither this Warrant nor any term hereof may be
changed, waived, discharged or terminated orally but only by an instrument in
writing signed by the party against which enforcement of the change, waiver,
discharge or termination is sought.

     12. Headings. The section headings in this Warrant are inserted for
purposes of convenience only and shall have no substantive effect.

     13. Governing Law. This Warrant shall for all purposes be construed and
enforced in accordance with, and governed by, the internal laws of the United
States and the State of Colorado, without giving effect to principles of
conflict of laws.

<PAGE>

     IN WITNESS WHEREOF, the Company has caused this Warrant to be signed by its
duly authorized officer and this Warrant to be dated as of the date first above
written.

                                        NAVIDEC, INC.

                                        By:
                                            ------------------------------------
                                                 John R. McKowen, President

                                        Countersigned:

                                        By:
                                           -------------------------------------
                                                 Secretary

                                    EXHIBIT A
                                    ---------

                                SUBSCRIPTION FORM

   (To be Executed by the Registered Holder in order to Exercise the Warrant)

     The undersigned hereby irrevocably elects to exercise the right to purchase
of the Shares covered by this Warrant according to the conditions hereof and
herewith makes payment of the Purchase Price of such Shares in full.

                  No. of Warrants Exercised _______________________

                  Amount of exercise price delivered $_____________

                  Dated _________________, 200__.

                                            ------------------------------------
                                            Signature (must be as listed
                                                       on Warrant Certificate)

                                            Name Shares to be issued to:

                                            ------------------------------------

                                            Address for delivery:

                                            ------------------------------------

                                            ------------------------------------

                                            ------------------------------------EXHIBIT 10.1 For Southborrough Ventures, Inc.

EXHIBIT 10.1

SOUTHBORROUGH VENTURES, INC. 

2003 NONQUALIFIED STOCK OPTION PLAN 

ARTICLE I

Purpose of Plan 

This 2003 NONQUALIFIED STOCK OPTION PLAN (the "Plan") of SOUTHBORROUGH VENTURES, INC. (the "Company") for persons employed or associated with the Company, including without limitation any employee, director, general partner, officer, attorney, accountant, consultant or advisor, is intended to advance the best interests of the Company by providing additional incentive to those persons who have a substantial responsibility for its management, affairs, and growth 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 under the Plan supports and increases the Company's ability to attract, engage and retain individuals of exceptional talent upon whom, in large measure, the sustained progress growth and profitability of the Company for the shareholders depends. 

ARTICLE II 

Definitions 

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.

"Code" shall mean the Internal Revenue Code of 1986, as amended, and the rules and regulations promulgated thereunder.

"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.  The Committee shall be composed of one or more persons as from time to time are appointed to serve by the Board and may be members of the Board or in the alternative, the Plan may be administered by the entire Board. 

"Common Shares" shall mean the Company's Common Shares $0.001 par value per share, or, in the event that the outstanding Common Shares are hereafter changed into or exchanged for different shares or securities of the Company, such other shares or securities.

"Company" shall mean SOUTHBORROUGH VENTURES, INC., a Nevada corporation, and any parent or subsidiary corporation of SOUTHBORROUGH VENTURES, INC., as such terms are defined in Section 425(e) and 425(f), respectively of the Code.  

 

"Optionee" shall mean any person employed or associated with the affairs of the Company who has been granted one or more Stock Options under the Plan.

"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. 

ARTICLE III

Administration of the Plan 

1.   The Committee or Board shall administer the plan and accordingly, it shall have full power to grant Stock Options, 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. 

2.   The determination of those eligible to receive Stock Options, and the amount, price, type and timing of each Stock Option and the terms and conditions of the respective stock option agreements shall rest in the sole discretion of the Committee, subject to the provisions of the Plan. 

3.   The Committee or Board may cancel any Stock Options awarded under the Plan if an Optionee conducts himself in a manner which the Committee determines to be contrary  to the best interest of the Company and its shareholders as set forth more fully in paragraph 8 of Article X of the Plan.

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. 

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

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 Company may take any action otherwise proper under the Plan by the affirmative vote, taken without a meeting, of a majority of its members. 

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 form his own gross negligence or willful misconduct.

 

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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. 

ARTICLE IV 

Shares Subject to the Plan 

1.   The total number of shares of the Company available for grants of Stock Options under the Plan shall be 8,000,000 Common Shares, subject to adjustment as herein provided, which shares may be either authorized but unissued or reacquired Common Shares of the Company.

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.

ARTICLE V 

Stock Option Terms and Conditions 

1.   Consistent with the Plan's purpose, Stock Options may be granted to any person who is performing or who has been engaged to perform services relating to the operation, development and growth of the Company.

2.   Determination of the option price per share for any stock option issues hereunder shall rest in the sole and unfettered discretion of the Committee. 

3.   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 Article V.

4.   All Stock Options granted hereunder must be granted within ten years from the date this Plan is adopted. 

5.   No Stock Option granted hereunder 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.  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. 

 

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6.   A Stock Option, or portion thereof, shall be exercised by deliver of (i) a written notice of exercise to the Company specifying the number of Common Shares to be purchased, and (ii) payment of the full exercise price of such Common Shares, as fully set forth in paragraph 7 of this Article V.  The payment of the exercise price may be offset against a debt owed by the Company to the Optionee.   No NQSO or installment thereof shall be reusable 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.

7.   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 offset against an existing debt owed by the Company to the Optionee; or,      

B.   At the discretion of the Committee, through the delivery of fully paid and nonassessable Common Shares, with an aggregate fair market value (determined as the average of the highest and lowest reported sales prices on the Common Shares as of the date of exercise of the NQSO, 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), as of the date of the NQSO exercise equal to the option price, provided such tendered shares, or any derivative security resulting in the issuance of Common Shares, have been owned by he Optionee for at least 30 days prior to such exercise; or, 

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

8.   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. 

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

10.   Except by will, the laws of descent and distribution, or with the written consent of the Committee, 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.  Upon petition to, and thereafter with the written consent of the Committee, an Optionee may assign or transfer all or a portion of the Optionee's rights and interest in any stock option granted hereunder.  Stock Options shall be exercisable during the Optionee's lifetime only by the Optionee or assignees, or the duly appointed legal representative of an incompetent Optionee, including following an assignment consented to by the Committee herein. 

 

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11.   No NQSO shall be exercisable while there is outstanding any other NQSO which was granted to the Optionee before the grant of such option under the Plan or any other plan which gives the right to the Optionee to purchase stock in the Company or in a corporation which is a parent corporation (as defined in Section 425(e) of the Code) of the Company, or any predecessor corporation of any of such corporations at the time of the grant.  An NQSO shall be treated as outstanding until it is either exercised in full or expires by reason of lapse of time. 

12.  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 restricted by applicable provisions of the Securities Act of 1933, as amended.

ARTICLE VI

Adjustments or Changes in Capitalization 

1.   In the event that the outstanding Common Shares of the Company are hereafter changed into or exchanged for a different number of kinds 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, 

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. 

 

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2.   The foregoing adjustment 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.    

ARTICLE VII

Merger, Consolidation or Tender Offer 

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.

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. 

3.   Any payment which the Company is required to make pursuant to paragraph 2 of this Article VII, 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 validity 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 purchase 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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4.   Notwithstanding paragraphs 1 and 3 of this Article VII, the Company 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 of the change of control, whichever occurs earlier. 

ARTICLE VIII 

Amendment and Termination of Plan 

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. 

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.

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. 

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

ARTICLE IX 

Government and Other Regulations 

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 purchase thereto to comply with any law or regulation of any government authority. 

 

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ARTICLE X 

Miscellaneous Provisions 

1.   No person shall have any claim or right to be granted a Stock Option under the Plan, and the grant of an NQSO under the Plan shall not be construed as giving an Optionee 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. 

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

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.

4.   The place of administration of the Plan shall be in the state of  Nevada, and the validity, contraction, interpretation, administration and effect of the Plan and its rules and regulations, and rights relating to the Plan, shall be determined solely in accordance with the laws of the state of Nevada.

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.

6.   In addition to such other rights of indemnification as they may have as members of the Board or 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, suite 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, an against all amount 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 before such Committee member undertakes to handle and defend it on his own behalf.

 

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7.   Stock Options may be granted under this Plan form 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 become a subsidiary of the Company.  The terms and conditions of such substitute stock options so granted my vary from the terms and conditions set forth in this Plan to such extent as the Board of Director 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.

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 the Optionee, that the Optionee has been engaged in fraud, embezzlement, theft, 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 the Optionee by the Committee.  The decision of the Committee as to the case 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.  Further, if Optionee voluntarily terminates employment with the Company, the Optionee shall forfeit all unexercised stock options.

ARTICLE XI

Written Agreement

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. 

ARTICLE XII 

Effective Date 

This Plan shall become unconditionally effective as of the effective date of approval of the Plan by the Board of Directors of the Company.  No Stock Option may be granted later than ten (10) years from the effective date of the Plan; provided, however, that the Plan and all outstanding Stock Options shall remain in effect until such NQSO's have expired or until such options are cancelled. 

	
Number of Shares: _______________
	

Date of Grant: _______________       

 

 

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NONQUALIFIED STOCK OPTION AGREEMENT 

AGREEMENT made this _____ day of __________________, 20____, between ____________________________ (the "Optionee"), and SOUTHBORROUGH VENTURES, INC., a Nevada corporation (the "Company").

1.   Grant of Option.  The Company, pursuant to the provisions of the 2003 SOUTHBORROUGH VENTURES, INC. Nonqualified Stock Option Plan (the "2003 Plan"), set forth as Attachment A hereto, hereby grants to the Optionee, subject to the terms and conditions set forth or incorporated herein, an Option and Purchase from the Company all or any part of an aggregate of _______________ Common Shares, as such Common Shares are now constituted, at the purchase price of $_______________ per share.  The provisions of the 2003 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 (but only in multiples of 100 Shares unless such exercise is as to the remaining balance of this Option) on or after __________________, 20___ and on or before _________________, 20___, provided that the cumulative number of Common Shares as to which this Option may be exercised (except as provided in paragraph 1 of Article VI of this 2003 Plan) shall not exceed the following amounts:     

	

Cumulative Number of Shares
	
Prior to Date (Not Inclusive of)

 

 

 

The Option evidenced hereby shall be exercisable by the deliver to and receipt by the Company of (i) a 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 case or certified check payable to the order of the Company, or by fully-paid and nonassessable Common Shares 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 Common Shares are submitted as whole or partial payment for Shares to be purchased hereunder, such Common Shares will be valued at their Fair Market Value (as defined in the 2003 Plan) on the date such Shares are received by the Company and applied to payment of the exercise price. 

 

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3.   Transferability.  The Option evidenced hereby is NOT assignable or transferable by the Optionee other than by the Optionee's will, by the laws of descent and distribution, as provided in paragraph 9 of Article V of the 2003 Plan.  The Option shall be exercisable only by the Optionee during his lifetime. 

	
	
	
	
	
	
	
SOUTHBORROUGH VENTURES, INC. 

	

	
	
	
	
	
	
	
BY: 
	
______________________________  

	
	
	
	
	
	
	
	
David Howard, President  

	
ATTEST: 

	
________________________________________ 

	
Secretary 

Optionee hereby acknowledges receipt of a copy of the 2003 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 Compensation Committee of the Board of Directors administering the 2003 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 with cause, or by the Optionee, all of the Optionee's rights hereunder shall thereupon terminate; and that, pursuant to paragraph 10 of Article V of the 2003 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, to purchase Common Shares of the Company or any parent or subsidiary thereof.  

Dated: _________________________________  

	
	
 
	
 
	
 
	
 
	
 
	
___________________________________  

	

 
	
 
	
 
	
 
	
 
	
 
	
Optionee 

	

 
	
 
	
 
	
 
	
 
	
 
	
___________________________________ 

	

 
	
 
	
 
	
 
	
 
	
 
	
Type or Print Name 

	
 
	
 
	
 
	
 
	
 
	
 
	
___________________________________

	
 
	
 
	
 
	
 
	
 
	
 
	
Address 

	
 
	
 
	
 
	
 
	
 
	
 
	
___________________________________ 

	
 
	
 
	
 
	
 
	
 
	
 
	
Social Security No.

 

 

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Date:

Secretary,

SOUTHBORROUGH VENTURES, INC.

12933 W. Eight Mile Road

Detroit, Michigan 48235

Dear Sir: 

In accordance with paragraph 2 of the Nonqualified Stock Option Agreement evidencing the Option granted to me on _____________________ under the 2003 SOUTHBORROUGH VENTURES, INC. Nonqualified Stock Option Plan, I hereby elect to exercise this Option to the extent of __________________ Common Shares. 

Enclosed are (i) Certificate(s) No.(s) ____________________ representing fully-paid common shares of SOUTHBORROUGH VENTURES, INC. endorsed to the Company with signature guaranteed, and/or a certified check payable to the order of SOUTHBORROUGH VENTURES, INC. in the amount of $_______________ as the balance of the purchase price of $______________ for the Shares which I have elected to purchase and (ii) the original Stock Option Agreement for endorsement by the Company as to exercise on Schedule I thereof.  I acknowledge that the Common Shares (if any) submitted as part payment for the exercise price due hereunder will be valued by the Company at their Fair Market Value (as defined in the 2003 Plan) on the date this Option exercise is effected by the Company.  In the event I hereafter sell any Common Shares issued pursuant to this option exercise within one year from the date of exercise or within two years after the date of grant of this Option, I agree to notify the Company promptly of the amount of taxable compensation realized by me by reason of such sale for federal income tax purposes. 

When the certificate for Common Shares which I have elected to purchase has been issued, please deliver it to me, along with my endorsed Stock Option Agreement in the event there remains an unexercised balance of Shares under the Option, at the following address:

Include Optionee's address here.                                

 

	
 

 
	
 

 
	
 

 
	
 

 
	
 

 
	
 

 
	
 

 
	
 

__________________________________ 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
Signature of Optionee 

	

 
	
 
	
 
	
 
	
 
	
 
	
 
	
__________________________________ 

	
 
	
 
	
 
	
 
	
 

 
	
 
	
 
	
Type or Print Name 

 

 

 

 

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