Document:

ex10_6.htm

    
      

    

    Exhibit
10.6

    

    [Form
of Agreement]

    

    

    FIRST
LOUISIANA BANCSHARES, INC.

    EMPLOYMENT
AGREEMENT

    

    

    This
EMPLOYMENT AGREEMENT (this “Agreement”), is made and entered into as of the
_____ day of _______________ 200_, between First Louisiana Bancshares, Inc., a
Louisiana corporation (the “Corporation” or the “Employer”), and Ron C.
Boudreaux (the “Executive”).

    

    WITNESSETH:

    

    WHEREAS,
as a result of the Merger, as hereinafter defined, the Executive is becoming
employed as President and Chief Operating Officer of the
Corporation;

    

    WHEREAS,
as a result of the Merger, Executive is also becoming employed as President and
Chief Executive Officer of First Louisiana Bank, a federally chartered savings
association (the “Association”) and the wholly owned subsidiary of the
Corporation;

    

    WHEREAS,
the Executive was previously employed as the President and Chief Executive
Officer of First Louisiana Bank, a Louisiana-chartered bank ("First Louisiana")
and its parent holding company First Louisiana Bancshares, Inc., a Louisiana
corporation ("Bancshares") which merged with and into the Corporation (the
“Merger”) in accordance with terms of the Agreement and Plan of Merger dated as
December 11, 2007 by and among Home Federal Bancorp, Inc. of Louisiana, Home
Federal Mutual Holding Company of Louisiana and Bancshares, pursuant to an
amended and restated employment agreement between First Louisiana, Bancshares
and the Executive entered into as of June 13, 2006 (the "First Louisiana
Employment Agreement") and as subsequently further amended as of December 11,
2007 (the "First Amendment");

    

    WHEREAS,
the Corporation desires to assure itself of the continued availability of the
Executive’s services as provided in this Agreement;

    

    WHEREAS,
the Executive is willing to serve the Corporation on the terms and conditions
hereinafter set forth; and

    

    WHEREAS,
the Executive is concurrently entering into a separate employment agreement with
the Association.

    

    NOW
THEREFORE, in consideration of the mutual agreements herein contained, and upon
the other terms and conditions hereinafter provided, the Corporation and the
Executive hereby agree as follows:

    

    1.           Definitions.  The
following words and terms shall have the meanings set forth below for the
purposes of this Agreement:

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (a)          Annual
Compensation.  The Executive’s “Annual Compensation” for
purposes of determining severance payable under this Agreement shall be deemed
to mean the sum of (i) the annual rate of Base Salary as of the Date of
Termination, and (ii) the cash bonus, if any, earned by the Executive for the
calendar year immediately preceding the year in which the Date of Termination
occurs.

    

    (b)          Base Salary.  “Base
Salary” shall have the meaning set forth in Section 3(a) hereof.

     

    (c)          Cause. Termination of the
Executive’s employment for “Cause” shall mean termination because of personal
dishonesty, incompetence, willful misconduct, breach of fiduciary duty involving
personal profit, intentional failure to perform stated duties, willful violation
of any law, rule or regulation (other than traffic violations or similar
offenses) or final cease-and-desist order or material breach of any provision of
this Agreement.

    

    (d)          Change in
Control.  “Change in Control” shall mean a change in the
ownership of the Corporation or the Association, a change in the effective
control of the Corporation or the Association or a change in the ownership of a
substantial portion of the assets of the Corporation or the Association, in each
case as provided under Section 409A of the Code and the regulations
thereunder.

    

    (e)          Code.  “Code” shall
mean the Internal Revenue Code of 1986, as amended.

    

    (f)           Date of
Termination.  “Date of Termination” shall mean (i) if the
Executive’s employment is terminated for Cause, the date on which the Notice of
Termination is given, and (ii) if the Executive’s employment is terminated for
any other reason, the date specified in such Notice of Termination.

    

    (g)          Disability.  “Disability”
shall mean the Executive (i) is unable to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment
which can be expected to result in death or can be expected to last for a
continuous period of not less than 12 months, or (ii) is, by reason of any
medically determinable physical or mental impairment which can be expected to
result in death or can be expected to last for a continuous period of not less
than 12 months, receiving income replacement benefits for a period of not less
than three months under an accident and health plan covering employees of the
Employer.

    

    (h)          Effective Date.  The
Effective Date of this Agreement shall mean ______ __, 200_.

    

    (i)           ERISA.  “ERISA”
means the Employee Retirement Income Security Act of 1974, as
amended.

    

    (j)           Good Reason.  “Good
Reason” means the occurrence of any of the following
conditions:

    
      
         

      

      
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(i)           any
material breach of this Agreement by the Corporation, including without
limitation any of the following: (A) a material diminution in the Executive’s
base compensation, (B) a material diminution in the Executive’s authority,
duties or responsibilities as described in Section 2, or (C) any requirement
that the Executive report to a corporate officer or employee of the Corporation
instead of reporting directly to the Board of Directors of the Corporation (the
“Corporation Board”), or

    
              
(ii)          any material
change in the geographic location at which the Executive must perform his
services under this Agreement;

    

    provided,
however, that prior to any termination of employment for Good Reason, the
Executive must first provide written notice to the Corporation within ninety
(90) days of the initial existence of the condition, describing the existence of
such condition, and the Corporation shall thereafter have the right to remedy
the condition within thirty (30) days of the date the Corporation received the
written notice from the Executive.  If the Corporation remedies the
condition within such thirty (30) day cure period, then no Good Reason shall be
deemed to exist with respect to such condition.  If the Corporation
remedies the condition within such thirty (30) day cure period, then no Good
Reason shall be deemed to exist with respect to such condition.  If
the Corporation does not remedy the condition within such thirty (30) day cure
period, then the Executive may deliver a Notice of Termination for Good Reason
at any time within sixty (60) days following the expiration of such cure
period.

    

    (k)          IRS.  IRS shall mean
the Internal Revenue Service.

    

    (l)           Notice of
Termination.  Any purported termination of the Executive’s
employment by the Corporation for any reason, including without limitation for
Cause, Disability or Retirement, or by the Executive for any reason, including
without limitation for Good Reason, shall be communicated by a written “Notice
of Termination” to the other party hereto.  For purposes of this
Agreement, a “Notice of Termination” shall mean a dated notice which (i)
indicates the specific termination provision in this Agreement relied upon, (ii)
sets forth in reasonable detail the facts and circumstances claimed to provide a
basis for termination of the Executive’s employment under the provision so
indicated, (iii) specifies a Date of Termination, which shall be not less than
thirty (30) nor more than ninety (90) days after such Notice of Termination is
given, except in the case of the Corporation’s termination of the Executive’s
employment for Cause, which shall be effective immediately, and (iv) is given in
the manner specified in Section 10 hereof.

    

    (m)         Retirement.  “Retirement”
shall mean a voluntary termination by the Executive which constitutes a
retirement, including early retirement, under the Association’s 401(k)
plan.

    
      
         

      

      
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    2.           Term
of Employment and Duties.

    

    (a)          The
Corporation hereby employs the Executive as President and Chief Operating
Officer and the Executive hereby accepts said employment and agrees to render
such services to the Corporation on the terms and conditions set forth in this
Agreement.  The terms and conditions of this Agreement shall be and
remain in effect during the period of three years beginning on the Effective
Date of this Agreement and ending on the third anniversary of the Effective
Date, plus such extensions, if any, as are provided pursuant to Section 2(b)
hereof (the “Employment Period”).

    

    (b)          Except
as provided in Section 2(c), and subject to the requirement below that the
Corporation Board determine at least annually that continued extensions are
appropriate, beginning on the Effective Date, on each day during the Employment
Period, the Employment Period shall automatically be extended for one additional
day, unless either the Corporation, on the one hand, or the Executive, on the
other hand, elects not to extend the Agreement further by giving written notice
thereof to the other party, in which case the Employment Period shall end on the
third anniversary of the date on which such written notice is
given.  At least annually, the Corporation Board shall consider and
review (with appropriate corporate documentation thereof, and taking into
account all relevant factors) the Executive’s performance hereunder and whether
the Employment Period shall continue to be extended.  If the
Corporation Board determines at least annually that continued extensions of the
Employment Period are appropriate, then the Employment Period shall continue to
extend each day as set forth above.  If the Corporation Board
determines not to extend the Employment Period, it shall provide written notice
to the Executive as set forth above.  Upon termination of the
Executive’s employment with the Corporation for any reason whatsoever, any daily
extensions provided pursuant to this Section 2(b), if not theretofore
discontinued, shall automatically cease.

    

    (c)          Nothing
in this Agreement shall be deemed to prohibit the Corporation at any time from
terminating the Executive’s employment during the Employment Period for any
reason, provided that the relative rights and obligations of the Corporation and
the Executive in the event of any such termination shall be determined under
this Agreement.

    

    (d)          During
the term of this Agreement, the Executive shall manage the operations of the
Corporation and oversee the officers that report to him.  The
Executive shall also oversee the implementation of the policies adopted by the
Board of Directors of the Corporation and shall report directly to the Board of
Directors.  In addition, the Executive shall perform such executive
services for the Corporation as may be consistent with his titles and from time
to time assigned to him by the Corporation’s Board of Directors.

    

    (e)          During
the term of this Agreement, the Corporation Board shall nominate the Executive
to be a director of the Corporation when his term expires and recommend his
election to the stockholders of the Corporation, subject to the fiduciary duties
of the Corporation Board.  In addition, the Corporation agrees to
approve the Executive’s election as a director of the Association throughout the
term of this Agreement.

    
      
         

      

      
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    3.           Compensation
and Benefits.

    

    (a)          The
Employer shall compensate and pay the Executive for his services during the term
of this Agreement at a minimum base salary of $172,500 per year (“Base Salary”),
minus the Base Salary paid to Executive by the Association, which amount may be
increased from time to time in such amounts as may be determined by the Board of
Directors of the Employer and may not be decreased without the Executive’s
express written consent.  In addition to his Base Salary, the
Executive shall be entitled to receive during the term of this Agreement such
bonus payments as may be determined by the Board of Directors of the Employer.
It is expected that the Board of Directors of the Association will implement a
short-term cash incentive plan in which the Executive will be a participant (the
“Incentive Plan”).  It is expected that the Incentive Plan will
operate at least during the period between the Effective Date and the quarter in
which the Stock Benefit Plans (as hereinafter defined) are implemented by the
Corporation and will provide for the payment of bonuses in amounts substantially
consistent with the Association’s historical level of discretionary bonuses to
employees.

    

    (b)          During
the term of this Agreement, the Executive shall be entitled to participate in
and receive the benefits of any pension or other retirement benefit plan, profit
sharing, stock option, restricted stock, employee stock ownership, or other
plans, benefits and privileges given to employees and executives of the
Employer, to the extent commensurate with his then duties and responsibilities,
as fixed by the Board of Directors of the Employer.  The Corporation
shall not make any changes in such plans, benefits or privileges which would
adversely affect the Executive’s rights or benefits thereunder, unless such
change occurs pursuant to a program applicable to all executive officers of the
Corporation and does not result in a proportionately greater adverse change in
the rights of or benefits to the Executive as compared with any other executive
officer of the Corporation.  Nothing paid to the Executive under any
plan or arrangement presently in effect or made available in the future shall be
deemed to be in lieu of the salary payable to the Executive pursuant to Section
3(a) hereof.

    

    (c)          During
the term of this Agreement, the Executive shall be entitled to paid annual
vacation in accordance with the policy as established from time to time by the
Board of Directors of the Employer.  The Executive shall not be
entitled to receive any additional compensation from the Employer for failure to
take a vacation, nor shall the Executive be able to accumulate unused vacation
time from one year to the next, except to the extent authorized by the Board of
Directors of the Employer.

    

    (d)          During
the term of this Agreement, in keeping with past practices, the Employer shall
continue to provide the Executive, to the extent not provided by the
Association, with an automobile comparable to the one currently provided to him.
The Employer shall be responsible and shall pay for all costs of insurance
coverage, repairs, maintenance and other incidental expenses, including license,
fuel and oil.

    

    (e)          During
the term of this Agreement, to the extent not provided by the Association, the
Employer shall provide to the Executive (i) major medical insurance covering the
Executive and his dependents in accordance with the limits and policies
established by the Employer and (ii) one or more life insurance policies on the
life of the Executive providing benefits of not less than two times the
Executive’s Base Salary.

    
      
         

      

      
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    (f)           The
Corporation expects to adopt and present to stockholders for their consideration
and approval a new stock option plan and a new management recognition and
retention plan (collectively, the “Stock Benefit Plans”).  The
Executive will be entitled to participate in the Stock Benefit
Plans.  Assuming that the Stock Benefit Plans receive the requisite
stockholder approval, the Board of Directors of the Corporation or a committee
thereof will, subject to its fiduciary duties, grant options and restricted
stock awards to the Executive covering 20% to 25% of the shares of common stock
of the Corporation reserved for issuance under the terms of each of the Stock
Benefit Plans.

    

    (g)          Except as
otherwise agreed between the Corporation and the Association, (a) the
Executive's compensation, benefits, and severance and (b) expenditures made by
the Executive on behalf of the Corporation, as set forth in this Agreement,
shall be paid by the Corporation and the Association in the same proportions as
the (a) time and services and (b) expenditures actually expended by the
Executive on the business of the Corporation and the business of the
Association, respectively.  For this purpose, the Executive shall
maintain, and provide to the Corporation on at least a monthly basis,
documentation of the time and expenses expended by the Executive on the business
of each of the Corporation and the Association.

       

    

    4.           Expenses.  The
Employer shall reimburse the Executive or otherwise provide for or pay for all
reasonable expenses incurred by the Executive in furtherance of or in connection
with the business of the Employer, including, but not by way of limitation,
automobile expenses described in Section 3(d) hereof, and traveling expenses,
and all reasonable entertainment expenses (whether incurred at the Executive’s
residence, while traveling or otherwise), subject to such reasonable
documentation and policies as may be established by the Board of Directors of
the Employer.  If such expenses are paid in the first instance by the
Executive, the Employer shall reimburse the Executive therefor.  Such
reimbursement shall be paid promptly by the Employer and in any event no later
than March 15 of the year immediately following the year in which such expenses
were incurred.

    

    5.           Termination.

    

    (a)          The
Corporation shall have the right, at any time upon prior Notice of Termination,
to terminate the Executive’s employment hereunder for any reason, including
without limitation termination for Cause, Disability or Retirement, and the
Executive shall have the right, upon prior Notice of Termination, to terminate
his employment hereunder for any reason.

    

    (b)          In
the event that (i) the Executive’s employment is terminated by the Corporation
for Cause or (ii) the Executive terminates his employment hereunder other than
for Disability, Retirement, death or Good Reason, the Executive shall have no
right pursuant to this Agreement to compensation or other benefits for any
period after the applicable Date of Termination.

    

    (c)          In
the event that the Executive’s employment is terminated as a result of
Disability, Retirement or the Executive’s death during the term of this
Agreement, the Executive shall have no right pursuant to this Agreement to
compensation or other benefits for any period after the applicable Date of
Termination.

    
      
         

      

      
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    (d)         In
the event that (i) a Change in Control of the Corporation or the Association
occurs, (ii) the Executive’s employment is terminated by the Corporation for
other than Cause, Disability, Retirement or the Executive’s death or (iii) such
employment is terminated by the Executive for Good Reason, then the Corporation
shall:

    

    (A)        pay
to the Executive, in a lump sum as of the Date of Termination, a cash severance
amount equal to three (3) times that portion of the Executive’s Annual
Compensation paid by the Corporation,

    

    (B)         maintain
and provide for a period ending at the earlier of (i) thirty-six (36) months
after the Date of Termination or (ii) the date of the Executive’s full-time
employment by another employer (provided that the Executive is entitled under
the terms of such employment to benefits substantially similar to those
described in this subparagraph (B)), at no cost to the Executive, the
Executive’s continued participation in all group insurance, life insurance,
health and accident, disability insurance offered by the Corporation in which
the Executive was entitled to participate immediately prior to the Date of
Termination (other than the continuation of any vacation time, sick leave or
similar leave), subject to subparagraphs (C) and (D) below,

    

    (C)         in
the event that the Executive’s participation in any plan, program or arrangement
as provided in subparagraph (B) of this Section 5(d) is barred, or during such
period any such plan, program or arrangement is discontinued or the benefits
thereunder are materially reduced, the Corporation shall arrange to provide the
Executive with benefits substantially similar to those which the Executive was
entitled to receive under such plans, programs and arrangements immediately
prior to the Date of Termination or, if such coverage cannot be obtained, pay a
lump sum cash equivalency amount within thirty (30) days following the Date of
Termination based on the annualized rate of premiums being paid by the
Corporation as of the Date of Termination, and

    

    (D)         any
insurance premiums payable by the Corporation pursuant to Section 5(d)(B) or (C)
shall be payable at such times and in such amounts as if the Executive was still
an employee of the Corporation, subject to any increases in such amounts imposed
by the insurance company or COBRA, and the amount of insurance premiums required
to be paid by the Corporation in any taxable year shall not affect the amount of
insurance premiums required to be paid by the Corporation in any other taxable
year.

    

    6.           Payment
of Additional Benefits under Certain Circumstances.

    

    (a)          If
(i) the payments and benefits pursuant to Section 5 hereof, either alone or
together with other payments and benefits which the Executive has the right to
receive from the Corporation and the Association (including, without limitation,
the payments and benefits which the Executive would have the right to receive
from the Association pursuant to Section 5 of the Agreement between the
Association and the Executive dated as of the date hereof (“Association
Agreement”), before giving effect to any reduction in such amounts pursuant to
Section 6 of the Association Agreement), would constitute a “parachute payment”
as defined in Section 280G(b)(2) of the Code (the “Initial Parachute Payment,”
which includes the amounts paid pursuant to clause (A) below), and (ii) the
Initial Parachute Payment either equals three times the Executive’s Base Amount
or exceed three times the Executive’s Base Amount but by an amount less than 5%
of three times the Executive’s Base Amount, then the Initial Parachute Payment
shall be reduced by the least amount necessary to bring the present value of the
payments and benefits below three times the Executive’s Base Amount, with the
cash severance to be reduced first.  As used in this Agreement, “Base
Amount” shall have the meaning set forth in Section 280G(b)(3) of the
Code.

    
      
         

      

      
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    (b)         If
the Initial Parachute Payment exceeds 105% of three times the Executive’s Base
Amount, then the Corporation shall pay to the Executive, in a lump sum within
five business days after the Date of Termination, a lump sum cash amount equal
to the sum of the following:

    

    (A)        the
amount by which the payments and benefits that would have otherwise been paid by
the Association to the Executive pursuant to Section 5 of the Association
Agreement are reduced by the provisions of Section 6 of the Association
Agreement;

    

    (B)         twenty
(20) percent (or such other percentage equal to the tax rate imposed by Section
4999 of the Code) of the amount by which the Initial Parachute Payment exceeds
the Executive’s “base amount” from the Corporation and the Association, as
defined in Section 280G(b)(3) of the Code, with the difference between the
Initial Parachute Payment and the Executive’s base amount being hereinafter
referred to as the “Initial Excess Parachute Payment”; and

    

    (C)         such
additional amount (tax allowance) as may be necessary to compensate the
Executive for the payment by the Executive of state, local and federal income
and excise taxes on the payment provided under clause (B) above and on any
payments under this clause (C).  In computing such tax allowance, the
payment to be made under clause (B) above shall be multiplied by the “gross up
percentage” (“GUP”).  The GUP shall be determined as
follows:

    

    
      	 
      	
              GUP
      =

            	 	
              Tax Rate

            	 
	 
      	 
      	 	
              1-Tax
      Rate

            	 

    

    

    The Tax
Rate for purposes of computing the GUP shall be the highest marginal federal,
state and local income and employment-related tax rate (including Social
Security and Medicare taxes), including any applicable excise tax rate,
applicable to the Executive in the year in which the payment under clause (B)
above is made, and shall also reflect the phase-out of deductions and the
ability to deduct certain of such taxes.

    

    (c)          Notwithstanding
the foregoing, if it shall subsequently be determined in a final judicial
determination or a final administrative settlement to which the Executive is a
party that the actual excess parachute payment as defined in Section 280G(b)(1)
of the Code is different from the Initial Excess Parachute Payment (such
different amount being hereafter referred to as the “Determinative Excess
Parachute Payment”), then the Corporation’s independent tax counsel shall
determine the amount (the “Adjustment Amount”) which either the Executive must
pay to the Corporation or the Corporation must pay to the Executive in order to
put the Executive (or the Corporation, as the case may be) in the same position
the Executive (or the Corporation, as the case may be) would have been if the
Initial Excess Parachute Payment had been equal to the Determinative Excess
Parachute Payment.  In determining the Adjustment Amount, the
independent tax counsel shall take into account any and all taxes (including any
penalties and interest) paid by or for the Executive or refunded to the
Executive or for the Executive’s benefit.  As soon as practicable
after the Adjustment Amount has been so determined, and in no event more than
thirty (30) days after the Adjustment Amount has been determined, the
Corporation shall pay the Adjustment Amount to the Executive or the Executive
shall repay the Adjustment Amount to the Corporation, as the case may
be.

    
      
         

      

      
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    (d)          In
each calendar year that the Executive receives payments of benefits that
constitute a parachute amount, the Executive shall report on his state and
federal income tax returns such information as is consistent with the
determination made by the independent tax counsel of the Corporation as
described above.  The Corporation shall indemnify and hold the
Executive harmless from any and all losses, costs and expenses (including
without limitation, reasonable attorneys’ fees, interest, fines and penalties)
which the Executive incurs as a result of so reporting such information, with
such indemnification to be paid by the Corporation to the Executive as soon as
practicable and in any event no later than March 15 of the year immediately
following the year in which the amount subject to indemnification was
determined.  The Executive shall promptly notify the Corporation in
writing whenever the Executive receives notice of the institution of a judicial
or administrative proceeding, formal or informal, in which the federal tax
treatment under Section 4999 of the Code of any amount paid or payable under
this Section 6 is being reviewed or is in dispute.  The Corporation
shall assume control at its expense over all legal and accounting matters
pertaining to such federal tax treatment (except to the extent necessary or
appropriate for the Executive to resolve any such proceeding with respect to any
matter unrelated to amounts paid or payable pursuant to this Section 6) and the
Executive shall cooperate fully with the Corporation in any such
proceeding.  The Executive shall not enter into any compromise or
settlement or otherwise prejudice any rights the Corporation may have in
connection therewith without the prior consent of the Corporation.

    

    (e)          If
the payments and benefits which the Executive would have the right to receive
from the Association pursuant to Section 5 of the Association Agreement are
reduced pursuant to Section 6 of the Association Agreement for reasons unrelated
to Section 280G of the Code, then the Corporation shall pay to the Executive, in
a lump sum within five business days after the Date of Termination, a cash
amount equal to the amount by which the payments and benefits that would have
otherwise been paid by the Association pursuant to Section 5 of the Association
Agreement are reduced by the provisions of Section 6 of the Association
Agreement.

    

    7.           Mitigation;
Exclusivity of Benefits.

    

    (a)          The
Executive shall not be required to mitigate the amount of any benefits hereunder
by seeking other employment or otherwise, nor shall the amount of any such
benefits be reduced by any compensation earned by the Executive as a result of
employment by another employer after the Date of Termination or otherwise,
except as set forth in Section 5(d)(B) above.

    
      
         

      

      
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    (b)          The
specific arrangements referred to herein are not intended to exclude any other
vested benefits which may be available to the Executive upon a termination of
employment with the Corporation pursuant to employee benefit plans of the
Corporation or the Association or otherwise.

    

    8.           Withholding.  All
payments required to be made by the Corporation hereunder to the Executive shall
be subject to the withholding of such amounts, if any, relating to tax and other
payroll deductions as the Corporation shall determine are required to be
withheld pursuant to any applicable law or regulation.

    

    9.           Assignability.  The
Corporation may assign this Agreement and its rights and obligations hereunder
in whole, but not in part, to any corporation, bank or other entity with or into
which the Corporation may hereafter merge or consolidate or to which the
Corporation may transfer all or substantially all of its assets, if in any such
case said corporation, bank or other entity shall by operation of law or
expressly in writing assume all obligations of the Corporation hereunder as
fully as if it had been originally made a party hereto, but may not otherwise
assign this Agreement or its rights and obligations hereunder.  The
Executive may not assign or transfer this Agreement or any rights or obligations
hereunder.

    

    10.         Notice.  For the
purposes of this Agreement, notices and all other communications provided for in
this Agreement shall be in writing and shall be deemed to have been duly given
when delivered or mailed by certified or registered mail, return receipt
requested, postage prepaid, addressed to the respective addresses set forth
below:

    

    
      	 
      	
              To
      the Corporation:

            	
              Secretary

            
	 
      	 
      	
              First
      Louisiana Bancshares, Inc.

            
	 
      	 
      	
              624
      Market Street

            
	 
      	 
      	
              Shreveport,
      Louisiana  71101

            
	 
      	 
      	 
      
	 
      	
              To
      the Executive:

            	
              Ron
      C. Boudreaux

            
	 
      	 
      	
              At
      the address last appearing on

            
	 
      	 
      	
              the
      personnel records of the Employer

            

    

    

    11.         Amendment;
Waiver.  No provisions of this Agreement may be modified,
waived or discharged unless such waiver, modification or discharge is agreed to
in writing signed by the Executive and such officer or officers as may be
specifically designated by the Board of Directors of the Corporation to sign on
its behalf.  No waiver by any party hereto at any time of any breach
by any other party hereto of, or compliance with, any condition or provision of
this Agreement to be performed by such other party shall be deemed a waiver of
similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time.  In addition, notwithstanding anything in this
Agreement to the contrary, the Corporation may amend in good faith any terms of
this Agreement, including retroactively, in order to comply with Section 409A of
the Code.

    
      
         

      

      
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    12.         Governing Law.  The
validity, interpretation, construction and performance of this Agreement shall
be governed by the laws of the United States where applicable and otherwise by
the substantive laws of the State of Louisiana.

    

    13.         Nature of
Obligations.  Nothing contained herein shall create or require
the Corporation to create a trust of any kind to fund any benefits which may be
payable hereunder, and to the extent that the Executive acquires a right to
receive benefits from the Corporation hereunder, such right shall be no greater
than the right of any unsecured general creditor of the
Corporation.

    

    14.         Headings.  The
section headings contained in this Agreement are for reference purposes only and
shall not affect in any way the meaning or interpretation of this
Agreement.

    

    15.         Validity.  The
invalidity or unenforceability of any provision of this Agreement shall not
affect the validity or enforceability of any other provisions of this Agreement,
which shall remain in full force and effect.

    

    16.         Counterparts.  This
Agreement may be executed in one or more counterparts, each of which shall be
deemed to be an original but all of which together will constitute one and the
same instrument.

    

    17.         Regulatory
Prohibition.  Notwithstanding any other provision of this
Agreement to the contrary, any payments made to the Executive pursuant to this
Agreement, or otherwise, are subject to and conditioned upon their compliance
with Section 18(k) of the FDIA (12 U.S.C. §1828(k)) and 12 C.F.R. Part
359.

    

    18.         Changes in Statutes or Regulations.
If any statutory or regulation provision referenced herein is
subsequently changed or re-numbered, or is replaced by a separate provision,
then the references in this Agreement to such statutory or regulatory provision
shall be deemed to be a reference to such section as amended, re-numbered or
replaced.

    

    19.         Entire
Agreement.  This Agreement embodies the entire agreement
between the Corporation and the Executive with respect to the matters agreed to
herein and supersedes in its entirety any and all prior agreements,
understandings or representations relating to the subject matter hereof,
including the First Louisiana Employment Agreement and the First
Amendment.  By having this Agreement supersede the First Louisiana
Employment Agreement, which shall be terminated in connection with the Merger,
and the First Amendment, the Executive acknowledges and agrees that no payments
or benefits have been or will be made to the Executive pursuant to Sections 3
and 4 of the First Louisiana Employment Agreement as a result of the Merger or
in the event his employment is terminated on or after the Effective Date except
for the payment specifically provided for in paragraph 3 of the First Amendment
under the terms thereof in connection with the consummation of the
Merger.  Notwithstanding the foregoing, nothing contained in this
Agreement shall affect the agreement of even date being entered into between the
Association and the Executive.

    
      
         

      

      
         11 

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, this Agreement has been executed as of the date first above
written.

    

    
      
        	
                Attest:

              	
                FIRST LOUISIANA BANCSHARES,
      INC.

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	_______________________________	
                By:

              	
                ______________________________

              
	
                DeNell
      W. Mitchell

              	 
      	
                Scott
      D. Lawrence

              
	
                Corporate
      Secretary

              	 
      	
                Chairman
      of the Audit Committee

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                EXECUTIVE

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                By:

              	
                ______________________________

              
	 
      	 
      	
                Ron
      C. Boudreaux

              

      

    

     

     

     12Exhibit
        10.1

      

       

      

       

      

      

      

      

      CLEVELAND
        BIOLABS, INC.

      

      EQUITY
        INCENTIVE PLAN

      

      

      

      (as
        amended and restated effective April 29, 2008)

      

       

       

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      CLEVELAND
        BIOLABS, INC. 

      EQUITY
        INCENTIVE PLAN

      

      1.  ESTABLISHMENT
        AND PURPOSE.

      

      The
        Cleveland BioLabs, Inc. Equity Incentive Plan (the “Plan”)
        was
        established under the name Cleveland BioLabs, Inc. 2006 Equity Incentive
        Plan
        (the “2006
        Plan”)
        by
        Cleveland BioLabs, Inc., a Delaware corporation (the “Company”).
        The
        2006 Plan hereby is amended, restated and renamed as set forth herein, effective
        April 29, 2008, subject to the approval of the Company’s stockholders. The
        purpose of the Plan is to attract and retain persons eligible to participate
        in
        the Plan; motivate Participants to achieve long-term Company goals; and further
        align Participants’ interests with those of the Company’s other stockholders. No
        Awards that are settled in Stock shall be granted hereunder prior to the
        approval of the Plan by the Company’s stockholders. Unless the Plan is
        discontinued earlier by the Board as provided herein, no Award shall be granted
        hereunder on or after the date 10 years after the Effective Date. The Plan
        shall
        terminate on April 29, 2018 or such earlier time as the Board may
        determine.

      

      Certain
        terms used herein are defined as set forth in Section
        10.

      

      2.  ADMINISTRATION;
        ELIGIBILITY.

      

      The
        Plan
        shall be administered by the Compensation Committee, or such other Committee,
        appointed by the Board consisting of three (3) or more members of the Board
        all
        of whom are intended to be “non-employee directors” within the meaning of
        Section 16 of the Securities Exchange Act of 1934 and the regulations
        promulgated thereunder and “outside directors” within the contemplation of
        Section 162(m) of the Code; provided,
        however,
        that,
        if at any time no Compensation Committee or other Committee has been appointed
        or is eligible to act in the circumstances, the Plan shall be administered
        by
        the Board. The Plan may be administered by different Committees with respect
        to
        different groups of Eligible Individuals. As used herein, the term “Administrator”
means
        the Board, the Compensation Committee or any of the Board’s other Committees as
        shall be administering the Plan or any individual delegated authority to
        act as
        the Administrator in accordance with this Section
        2.
        A
        majority of the members of the Compensation Committee, such other Committee
        or
        the Board, as applicable, shall constitute a quorum, and all determinations
        shall be made by a majority of the members thereof.

      

      The
        Administrator shall have plenary authority to grant Awards pursuant to the
        terms
        of the Plan to Eligible Individuals. Participation shall be limited to such
        persons as are selected by the Administrator. 

      

      Among
        other things, the Administrator shall have the authority, subject to the
        terms
        of the Plan:

      

      
        	 	
                (a)

              	
                to
                  select the Eligible Individuals to whom Awards may from time to
                  time be
                  granted;

              

      

      

      
        	 	
                (b)

              	
                to
                  determine whether and to what extent Stock Options, Stock Appreciation
                  Rights, Stock Awards or any combination thereof are to be granted
                  hereunder;

              

      

      

      
        	 	
                (c)

              	
                to
                  determine the number of shares of Stock to be covered by each Award
                  granted hereunder;

              

      

      

      
        	 	
                (d)

              	
                to
                  approve forms of agreement for use under the
                  Plan;

              

      

      

      
        	 	
                (e)

              	
                to
                  determine the terms and conditions, not inconsistent with the terms
                  of
                  this Plan, of any Award granted hereunder (including, but not limited
                  to,
                  the option price, any vesting restriction or limitation, any vesting
                  acceleration or waiver of forfeiture, and any right of repurchase,
                  right
                  of first refusal or other transfer restriction regarding any Award
                  and the
                  shares of Stock relating thereto, based on such factors or criteria
                  as the
                  Administrator shall determine);

              

      

      

      
        	 	
                (f)

              	
                subject
                  to Section
                  9(a),
                  to modify, amend or adjust the terms and conditions of any Award,
                  at any
                  time or from time to time, including, but not limited to, with
                  respect to
                  (i) performance goals and targets applicable to performance based
                  Awards
                  pursuant to the terms of the Plan and (ii) extension of the
                  post-termination exercisability period of Stock Options;
                  

              

      

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      
        	 	
                (g)

              	
                to
                  determine the Fair Market Value;
                  and

              

      

      

      
        	 	
                (h)

              	
                to
                  determine the type and amount of consideration to be received by
                  the
                  Company for any Stock Award issued under Section
                  6.

              

      

      

      The
        Administrator shall have the authority to adopt, alter and repeal such
        administrative rules, guidelines and practices governing the Plan as it shall,
        from time to time, deem advisable, to interpret the terms and provisions
        of the
        Plan and any Award issued under the Plan (and any agreement relating thereto)
        and to otherwise supervise the administration of the Plan.

      

      In
        order
        to assure the viability of Awards granted to Participants employed in foreign
        countries who are not subject to U.S. tax law, the Administrator may provide
        for
        such special terms as it may consider necessary or appropriate to accommodate
        differences in local law, tax policy, or custom. Moreover, the Administrator
        may
        approve such supplements to, or amendments, restatements, or alternative
        versions of, the Plan as it may consider necessary or appropriate for such
        purposes without thereby affecting the terms of the Plan as in effect for
        any
        other purpose; provided,
        however,
        that no
        such supplements, amendments, restatements, or alternative versions shall
        increase the share limitations contained in Section
        3
        of the
        Plan.

      

      Except
        to
        the extent prohibited by applicable law, the Administrator may allocate all
        or
        any portion of its responsibilities and powers to any one or more of its
        members
        and may delegate all or any portion of its responsibilities and powers to
        any
        other person or persons selected by it. Any such allocation or delegation
        may be
        revoked by the Administrator at any time. The Administrator may authorize
        any
        one or more of their members or any officer of the Company to execute and
        deliver documents on behalf of the Administrator.

      

      Any
        determination made by the Administrator or pursuant to delegated authority
        pursuant to the provisions of the Plan with respect to any Award shall be
        made
        in the sole discretion of the Administrator or such delegate at the time
        of the
        grant of the Award or, unless in contravention of any express term of the
        Plan,
        at any time thereafter. All decisions made by the Administrator or any
        appropriately delegated officer pursuant to the provisions of the Plan shall
        be
        final and binding on all persons, including the Company and
        Participants.

      

      No
        member
        of the Administrator, and no officer of the Company, shall be liable for
        any
        action taken or omitted to be taken by such individual or by any other member
        of
        the Administrator or officer of the Company in connection with the performance
        of duties under this Plan, except for such individual’s own willful misconduct
        or as expressly provided by law.

      

      3.  STOCK
        SUBJECT TO PLAN.

      

      Subject
        to adjustment as provided in this Section
        3,
        the
        number of shares of Stock reserved for delivery under the Plan shall be the
        sum
        of (a) two million (2,000,000) shares, plus (b) the number of remaining shares
        under the 2006 Plan (i.e.,
        not
        subject to outstanding Awards and not delivered out of shares reserved
        thereunder) as of the date of the initial stockholder approval of this Plan,
        plus (c) the number of shares that become available under the 2006 Plan after
        the date of the initial stockholder approval of this Plan pursuant to
        forfeiture, termination, lapse or satisfaction of an Award in cash or property
        other than shares, application as payment for an Award, or, except with respect
        to Restricted Stock, to satisfy withholding, plus (d) any shares required
        to
        satisfy Substitute Awards.

      

      If
        any
        shares of Stock subject to an Award granted hereunder are forfeited or such
        Award otherwise terminates without the delivery of such shares, the shares
        subject to such Award, to the extent of any such forfeiture or termination,
        shall again be available for grant under the Plan. If any shares of Stock
        subject to an Award granted hereunder are withheld or applied as payment
        in
        connection with the exercise of an Award (including the withholding of shares
        on
        the exercise of a SAR that is settled in shares) or, except with respect
        to
        shares of Restricted Stock, the withholding or payment of taxes related thereto,
        such shares of Stock shall again be available for grant under the
        Plan.

      

      Subject
        to adjustment as provided in this Section
        3,
        the
        maximum number of shares that may be covered by Stock Options, Stock
        Appreciation Rights, Stock Awards and Performance Awards payable in Shares,
        in
        the aggregate, granted to any one Participant during any calendar year shall
        be
        four hundred thousand (400,000) shares. No Participant may be granted a
        Performance Award payable in cash, the maximum payout for which would exceed
        one
        million dollars ($1,000,000) during any calendar year. No Participant may
        be
        granted a Performance Award for a Performance Period of more than one (1)
        Year,
        the maximum payout for which would exceed two and one-half million dollars
        ($2,500,000).

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      In
        the
        event of any Company stock dividend, special cash dividend, stock split,
        combination or exchange of shares, recapitalization or other change in the
        capital structure of the Company, corporate separation or division of the
        Company (including, but not limited to, a split-up, spin-off, split-off or
        other
        distribution to Company stockholders, other than a normal cash dividend),
        sale
        by the Company of all or a substantial portion of its assets (measured on
        either
        a stand-alone or consolidated basis), reorganization, rights offering, partial
        or complete liquidation, merger or consolidation in which the Company is
        the
        surviving corporation, or any other corporate transaction, Company share
        offering or other event involving the Company and having an effect similar
        to
        any of the foregoing, the Administrator shall make such substitution or
        adjustments in the (a) number and kind of shares that may be delivered under
        the
        Plan, (b) additional maximums imposed in the immediately preceding paragraph,
        (c) number and kind of shares subject to outstanding Awards, (d) exercise
        price
        of outstanding Stock Options and Stock Appreciation Rights and (e) other
        characteristics or terms of the Awards as it may determine appropriate in
        its
        sole discretion to equitably reflect such corporate transaction, share offering
        or other event; provided,
        however,
        that
        the number of shares subject to any Award shall always be a whole number.
        

      

      The
        Committee may, in its discretion and on such terms and conditions as the
        Committee considers appropriate in the circumstances, grant Substitute Awards
        under the Plan. For purposes of this Section 3, “Substitute Award” means an
        Award granted under the Plan in substitution for stock and stock-based awards
        (“Acquired
        Entity Awards”)
        held
        by current and former employees or non-employee directors of, or consultants
        to,
        another corporation or entity who become Eligible Individuals as the result
        of a
        merger, consolidation or combination of the employing corporation or other
        entity (the “Acquired
        Entity”)
        with
        the Company, an Affiliate or Subsidiary or the acquisition by the Company,
        an
        Affiliate or Subsidiary of property or stock of the Acquired Entity immediately
        prior to such merger, consolidation, acquisition or combination in order
        to
        preserve for such Eligible Individuals the economic value of all or a portion
        of
        such Acquired Entity Award at such price as the Committee determines necessary
        to achieve preservation of economic value.

      

      In
        the
        event of the dissolution or liquidation of the Company, or a merger,
        reorganization or consolidation in which the Company is not the surviving
        corporation, then, except as otherwise provided herein and/or in the discretion
        of the Administrator, each Stock Option, to the extent not theretofore
        exercised, shall terminate forthwith.

      

      Notwithstanding
        the foregoing, no adjustment pursuant to this Section 3 shall be made to
        the
        extent that such adjustment would result in liability under Section 409A
        of the
        Code. 

      

      4.  STOCK
        OPTIONS.

      

      Stock
        Options may be granted alone or in addition to other Awards granted under
        the
        Plan and may be of two types: Incentive Stock Options and Non-Qualified Stock
        Options. Any Stock Option granted under the Plan shall be in such form as
        the
        Administrator may from time to time approve.

      

      The
        Administrator shall have the authority to grant any Participant Incentive
        Stock
        Options, Non-Qualified Stock Options or both types of Stock Options. Incentive
        Stock Options may be granted only to employees of the Company and its
        subsidiaries (within the meaning of Section 424(f) of the Code). To the extent
        that any Stock Option is not designated as an Incentive Stock Option or,
        even if
        so designated, does not qualify as an Incentive Stock Option, it shall
        constitute a Non-Qualified Stock Option. Incentive Stock Options may be granted
        only within 10 years from the date the Plan is adopted, or the date the Plan
        is
        approved by the Company’s stockholders, whichever is earlier.

      

      Stock
        Options shall be evidenced by option agreements, each in a form approved
        by the
        Administrator. An option agreement shall indicate on its face whether it
        is
        intended to be an agreement for an Incentive Stock Option or a Non-Qualified
        Stock Option. The grant of a Stock Option shall occur as of the date the
        Administrator determines, subject to FASB Statement 123(R) and guidance
        thereunder.

      

      Anything
        in the Plan to the contrary notwithstanding, no term of the Plan relating
        to
        Incentive Stock Options shall be interpreted, amended or altered, nor shall
        any
        discretion or authority granted under the Plan be exercised, so as to disqualify
        the Plan under Section 422 of the Code or, without the consent of the Optionee
        affected, to disqualify any Incentive Stock Option under Section 422 of the
        Code.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      To
        the
        extent that the aggregate Fair Market Value of Stock with respect to which
        Incentive Stock Options are exercisable for the first time by a Participant
        during any calendar year (under all plans of the Company and its subsidiaries
        within the meaning of Section 424(f) of the Code) exceeds $100,000, such
        Stock
        Options shall be treated as Non-Qualified Stock Options.

      

      Stock
        Options granted under this Section
        4
        shall be
        subject to the following terms and conditions and shall contain such additional
        terms and conditions as the Administrator shall deem desirable:

      

      
        	 	
                (a)

              	
                Exercise
                  Price.
                  The exercise price per share of Stock purchasable under a Stock
                  Option
                  shall be determined by the Administrator at the time of grant;
                  provided,
                  however,
                  that the exercise price per share shall be not less than the Fair
                  Market
                  Value per share on the date the Stock Option is granted, or in
                  the case of
                  an Incentive Stock Option granted to an individual who is a Ten
                  Percent
                  Holder, not less than 110% of such Fair Market Value per share
                  on the date
                  the Stock Option is granted.

              

      

      

      
        	 	
                (b)

              	
                Option
                  Term.
                  The term of each Stock Option shall be fixed by the Administrator
                  at the
                  time of grant, but no Incentive Stock Option shall be exercisable
                  more
                  than 10 years (or five years in the case of an individual who is
                  a Ten
                  Percent Holder) after the date the Incentive Stock Option is
                  granted.

              

      

      

      
        	 	
                (c)

              	
                Vesting.
                  Except as otherwise provided in the applicable option agreement,
                  an
                  Optionee may not exercise a Stock Option during the period commencing
                  on
                  the date of the grant of such Stock Option to him or her and ending
                  on the
                  day immediately preceding the first anniversary of such date. Except
                  as
                  otherwise provided in the applicable option agreement, an Optionee
                  may (i)
                  during the period commencing on the first anniversary of the date
                  of the
                  grant of a Stock Option to him or her and ending on the day immediately
                  preceding the second anniversary of such date, exercise such Stock
                  Option
                  with respect to one-fourth of the shares granted thereby; (ii) during
                  the period commencing on the second anniversary of the date of
                  such grant
                  and ending on the day immediately preceding the third anniversary
                  of the
                  date of such grant, exercise such Stock Option with respect to
                  one-half of
                  the shares granted thereby; (iii) during the period commencing
                  on the
                  third anniversary of the date of such grant and ending on the day
                  immediately preceding the fourth anniversary of such date, exercise
                  such
                  Stock Option with respect to three-fourths of the shares granted
                  thereby
                  and (iv) during the period commencing on the fourth anniversary
                  of the
                  date of such grant and ending at the time the Stock Option expires
                  pursuant to the terms of the Plan, exercise such Stock Option with
                  respect
                  to all of the shares granted thereby.

              

      

      

      
        	 	
                (d)

              	
                Exercisability.
                  Except as otherwise provided herein, Stock Options shall be subject
                  to
                  such terms and conditions, performance requirements, restrictions,
                  forfeiture provisions, contingencies and limitations, if any, as
                  shall be
                  determined by the Administrator and listed in the applicable Stock
                  Option
                  agreement. If any Stock Option is exercisable only in installments,
                  the
                  Administrator may at any time waive such installment exercise provisions,
                  in whole or in part, based on such factors as the Administrator
                  may
                  determine. In addition, the Administrator may at any time, in whole
                  or in
                  part, accelerate the exercisability of any Stock Option.
                  

              

      

      

      
        	 	
                (e)

              	
                Method
                  of Exercise.
                  Stock Options may be exercised, in whole or in part, by giving
                  written
                  notice of exercise to the Company specifying the number of shares
                  of Stock
                  subject to the Stock Option to be
                  purchased.

              

      

      

      The
        option price of any Stock Option shall be paid in full in cash (by certified
        or
        bank check or such other instrument as the Company may accept) or, unless
        otherwise provided in the applicable option agreement, by one or more of
        the
        following: (i) in the form of mature shares of unrestricted Stock already
        owned
        by the Optionee, based on the Fair Market Value of the Stock on the date
        the
        Stock Option is exercised; (ii) by certifying ownership of shares of mature
        Stock owned by the Optionee to the satisfaction of the Administrator for
        later
        delivery to the Company as specified by the Company; (iii) unless otherwise
        prohibited by law for either the Company or the Optionee, by irrevocably
        authorizing a third party to sell shares of Stock (or a sufficient portion
        of
        the shares) acquired upon exercise of the Stock Option and remit to the Company
        a sufficient portion of the sale proceeds to pay the entire exercise price
        and
        any tax withholding resulting from such exercise; or (iv) by any combination
        of
        cash and/or any one or more of the methods specified in clauses (i), (ii)
        and
        (iii). Notwithstanding the foregoing, a form of payment shall not be permitted
        to the extent it would cause the Company to recognize a compensation expense
        (or
        additional compensation expense) with respect to the Stock Option for financial
        reporting purposes.

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      If
        payment of the option exercise price of a Non-Qualified Stock Option is made
        in
        whole or in part in the form of Restricted Stock, the number of shares of
        Stock
        to be received upon such exercise equal to the number of shares of Restricted
        Stock used for payment of the option exercise price shall be subject to the
        same
        forfeiture restrictions to which such Restricted Stock was subject, unless
        otherwise determined by the Administrator.

      

      No
        shares
        of Stock shall be issued upon exercise of a Stock Option until full payment
        therefor has been made. Upon exercise of a Stock Option (or a portion thereof),
        the Company shall have a reasonable time to issue the Stock for which the
        Stock
        Option has been exercised, and the Optionee shall not be treated as a
        stockholder for any purposes whatsoever prior to such issuance. No adjustment
        shall be made for cash dividends or other rights for which the record date
        is
        prior to the date such Stock is recorded as issued and transferred in the
        Company’s official stockholder records, except as otherwise provided herein or
        in the applicable option agreement.

      

      
        	 	
                (f)

              	
                Transferability
                  of Stock Options.
                  Except as otherwise provided in the applicable option agreement,
                  a
                  Non-Qualified Stock Option (i) shall be transferable by the Optionee
                  to a
                  Family Member of the Optionee, provided that
                  (A) any such transfer shall be by gift with no consideration and
                  (B) no
                  subsequent transfer of such Stock Option shall be permitted other
                  than by
                  will or the laws of descent and distribution, and (ii) shall not
                  otherwise
                  be transferable except by will or the laws of descent and distribution.
                  An
                  Incentive Stock Option shall not be transferable except by will
                  or the
                  laws of descent and distribution. A Stock Option shall be exercisable,
                  during the Optionee’s lifetime, only by the Optionee or by the guardian or
                  legal representative of the Optionee, it being understood that
                  the terms
                  “holder” and “Optionee”
                  include the guardian and legal representative of the Optionee named
                  in the
                  applicable option agreement and any person to whom the Stock Option
                  is
                  transferred (X) pursuant to the first sentence of this Section
                  4(f) or
                  pursuant to the applicable option agreement or (Y) by will or the
                  laws of
                  descent and distribution. Notwithstanding the foregoing, references
                  herein
                  to the termination of an Optionee’s employment or provision of services
                  shall mean the termination of employment or provision of services
                  of the
                  person to whom the Stock Option was originally
                  granted.

              

      

      

      
        	 	
                (g)

              	
                Termination
                  by Death.
                  Except as otherwise provided in the applicable option agreement,
                  if an
                  Optionee’s employment or provision of services terminates by reason of
                  death, any Stock Option held by such Optionee may thereafter be
                  exercised
                  for a period of one year from the date of such death or until the
                  expiration of the stated term of such Stock Option, whichever period
                  is
                  shorter. 

              

      

      

      
        	 	
                (h)

              	
                Termination
                  by Reason of Disability.
                  Except as otherwise provided in the applicable option agreement,
                  if an
                  Optionee’s employment or provision of services terminates by reason of
                  Disability, any Stock Option held by such Optionee may thereafter
                  be
                  exercised by the Optionee for a period of one year from the date
                  of such
                  termination of employment or provision of services or until the
                  expiration
                  of the stated term of such Stock Option, whichever period is shorter.
                  

              

      

      

      
        	 	
                (i)

              	
                Termination
                  by Reason of Retirement.
                  Except as otherwise provided in the applicable option agreement,
                  if an
                  Optionee’s employment or provision of services terminates by reason of
                  Retirement, any Stock Option held by such Optionee may thereafter
                  be
                  exercised by the Optionee for a period of three years from the
                  date of
                  such termination of employment or provision of services or until
                  the
                  expiration of the stated term of such Stock Option, whichever period
                  is
                  shorter. 

              

      

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      
        	 	
                (j)

              	
                Involuntary
                  Termination Without Cause.
                  Except as otherwise provided in the applicable option agreement,
                  if an
                  Optionee’s employment or provision of services terminates involuntarily
                  without Cause, and for reasons other than death, Disability or
                  Retirement,
                  any Stock Option held by such Optionee may thereafter be exercised,
                  to the
                  extent it was exercisable at the time of termination, for a period
                  of 90
                  days from the date of such termination of employment or provision
                  of
                  services or until the expiration of the stated term of such Stock
                  Option,
                  whichever period is shorter, and any Stock Option that is unvested
                  or
                  unexercisable at the date of termination shall thereupon terminate.
                  

              

      

       

      
        	 	
                (k)

              	
                Involuntary
                  Termination for Cause.
                  Except as otherwise provided in the applicable option agreement,
                  if an
                  Optionee’s employment or provision of services terminates involuntarily
                  for Cause, vesting of all outstanding Stock Options held by such
                  Optionee
                  shall thereupon terminate and all Stock Options held by such Optionee
                  shall thereupon terminate.

              

      

      

      
        	 	
                (l)

              	
                Other
                  Termination.
                  Except as otherwise provided in the applicable option agreement,
                  if an
                  Optionee’s employment or provision of services is terminated by the
                  Optionee for any reason other than death, Disability or Retirement,
                  any
                  Stock Option held by such Optionee may thereafter be exercised,
                  to the
                  extent it was exercisable at the time of termination, for a period
                  of 30
                  days from the date of such termination of employment or provision
                  of
                  services or until the expiration of the stated term of such Stock
                  Option,
                  whichever period is shorter, and any Stock Option that is unvested
                  or
                  unexercisable at the date of termination shall thereupon terminate.
                  

              

      

      

      
        	 	
                (m)

              	
                Exception
                  to Termination.
                  If provision of services by the Optionee to the Company or an Affiliate
                  ceases as a result of a transfer of such Optionee from the Company
                  to an
                  Affiliate, or from an Affiliate to the Company, such transfer shall
                  not be
                  a termination of employment or provision of services for purposes
                  of this
                  Plan, unless expressly determined otherwise by the Administrator.
                  A
                  termination of employment or provision of services shall occur
                  for an
                  Optionee who is employed by, or provides services to, an Affiliate
                  of the
                  Company if the Affiliate shall cease to be an Affiliate and the
                  Optionee
                  shall not immediately thereafter be employed by, or provide services
                  to,
                  the Company or an Affiliate. 

              

      

      

      
        	 	
                (n)

              	
                Notwithstanding
                  the foregoing, to the extent permitted under Section 409A of the
                  Code, the
                  exercise period following a termination described in subsection
                  (g), (h),
                  (i), (j) or (l) above shall be tolled for any applicable window/blackout
                  period restrictions under the Company’s insider trading
                  policy.

              

      

      

      5.  STOCK
        APPRECIATION RIGHTS.

      

      Stock
        Appreciation Rights may be granted under the Plan on a stand-alone basis
        only.
        The Administrator shall have the authority to grant Stock Appreciation Rights
        to
        any Participant. Except as otherwise provided herein, a Stock Appreciation
        Right
        shall terminate and no longer be exercisable as determined by the
        Administrator.

      

      Stock
        Appreciation Rights shall be evidenced by stock appreciation right agreements,
        each in a form approved by the Administrator. The grant of a Stock Appreciation
        Right shall occur as of the date the Administrator determines, subject to
        FASB
        Statement 123(R) and guidance thereunder.

      

      A
        Stock
        Appreciation Right may be exercised by a Participant as determined by the
        Administrator in accordance with this Section
        5.
        Upon
        such exercise, the Participant shall be entitled to receive an amount determined
        in the manner prescribed in this Section
        5.
        

      

      Stock
        Appreciation Rights shall be subject to such terms and conditions as shall
        be
        determined by the Administrator, including the following:

      

      
        	 	
                (a)

              	
                Stock
                  Appreciation Right Term.
                  The term of each Stock Appreciation Right shall be fixed by the
                  Administrator at the time of grant.

              

      

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      
        	 	
                (b)

              	
                Vesting.
                  Except as otherwise provided in the applicable stock appreciation
                  right
                  agreement, a Participant may not exercise a Stock Appreciation
                  Right
                  during the period commencing on the date of the grant of such Stock
                  Appreciation Right to him or her and ending on the day immediately
                  preceding the first anniversary of such date. Except as otherwise
                  provided
                  in the applicable stock appreciation right agreement, a Participant
                  may
                  (i) during the period commencing on the first anniversary of the
                  date of
                  the grant of a Stock Appreciation Right and ending on the day immediately
                  preceding the second anniversary of such date, exercise the Stock
                  Appreciation Right with respect to one-fourth of the shares to
                  which the
                  Stock Appreciation Right applies, (ii) during the period commencing
                  on the second anniversary of the date of such grant and ending
                  on the day
                  immediately preceding the third anniversary of the date of such
                  grant,
                  exercise the Stock Appreciation Right with respect to one-half
                  of the
                  shares to which the Stock Appreciation Right applies, (iii) during
                  the
                  period commencing on the third anniversary of the date of such
                  grant and
                  ending on the day immediately preceding the fourth anniversary
                  of such
                  date, exercise the Stock Appreciation Right with respect to three-fourths
                  of the shares to which the Stock Appreciation Right applies; and
                  (iv)
                  during the period commencing on the fourth anniversary of the date
                  of such
                  grant ending at the time the Stock Appreciation Right expires pursuant
                  to
                  the terms of the Plan, exercise the Stock Appreciation Right with
                  respect
                  to all the shares to which the Stock Appreciation Right applies.
                  

              

      

      

      
        	 	
                (c)

              	
                Exercisability.
                  Notwithstanding Section
                  5(a),
                  the Administrator may at any time, in whole or in part, accelerate
                  the
                  exercisability of any Stock Appreciation Right.

              

      

      

      
        	 	
                (d)

              	
                Method
                  of Exercise.
                  Subject to the provisions of this Section
                  5,
                  Stock Appreciation Rights may be exercised, in whole or in part,
                  at such
                  time or times during the exercisability as determined by the Administrator
                  by giving written notice of exercise to the Company specifying
                  the number
                  of shares with respect to which the Stock Appreciation Right is
                  being
                  exercised.

              

      

      

      
        	 	
                (e)

              	
                Upon
                  the exercise of a Stock Appreciation Right, a Participant shall
                  be
                  entitled to receive an amount in cash or in shares of Stock, which
                  in the
                  aggregate are equal in value to the excess of the Fair Market Value
                  of one
                  share of Stock on the date of exercise over the Fair Market Value
                  of one
                  share of Stock on the date of grant, multiplied by the number of
                  shares in
                  respect of which the Stock Appreciation Right shall have been
                  exercised.

              

      

      

      
        	 	
                (f)

              	
                A
                  Stock Appreciation Right shall be transferable only to, and shall
                  be
                  exercisable only by, such persons permitted in accordance with
                  Section
                  4(f).

              

      

      

      
        	 	
                (g)

              	
                Termination
                  by Death.
                  Except as otherwise provided in the applicable option agreement,
                  if a
                  Participant’s employment or provision of services terminates by reason of
                  death, any Stock Appreciation Right held by such Participant may
                  thereafter be exercised for a period of one year from the date
                  of such
                  death or until the expiration of the stated exercisability period
                  of such
                  Stock Appreciation Right, whichever period is shorter.
                  

              

      

      

      
        	 	
                (h)

              	
                Termination
                  by Reason of Disability.
                  Except as otherwise provided in the applicable option agreement,
                  if a
                  Participant’s employment or provision of services terminates by reason of
                  Disability, any Stock Appreciation Right held by such Participant
                  may
                  thereafter be exercised by the Participant for a period of one
                  year from
                  the date of such termination of employment or provision of services
                  or
                  until the expiration of the exercisability period of such Stock
                  Appreciation Right, whichever period is shorter.
                  

              

      

      

      
        	 	
                (i)

              	
                Termination
                  by Reason of Retirement.
                  Except as otherwise provided in the applicable option agreement,
                  if a
                  Participant’s employment or provision of services terminates by reason of
                  Retirement, any Stock Appreciation Right held by such Participant
                  may
                  thereafter be exercised by the Participant for a period of three
                  years
                  from the date of such termination of employment or provision of
                  services
                  or until the expiration of the exercisability period of such Stock
                  Appreciation Right, whichever period is shorter.
                  

              

      

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      
        	 	
                (j)

              	
                Involuntary
                  Termination Without Cause.
                  Except as otherwise provided in the applicable option agreement,
                  if a
                  Participant’s employment or provision of services terminates involuntarily
                  without Cause, and for reasons other than death, Disability or
                  Retirement,
                  any Stock Appreciation Right held by such Participant may thereafter
                  be
                  exercised, to the extent it was exercisable at the time of termination,
                  for a period of 90 days from the date of such termination of employment
                  or
                  provision of services or until the expiration of the exercisability
                  period
                  of such Stock Appreciation Right, whichever period is shorter,
                  and any
                  Stock Appreciation Right that is unvested or unexercisable at the
                  date of
                  termination shall thereupon
                  terminate.

              

      

      

      
        	 	
                (k)

              	
                Termination
                  for Cause.
                  Except as otherwise provided in the applicable option agreement,
                  if a
                  Participant’s employment or provision of services terminates involuntarily
                  for Cause vesting of all outstanding Stock Appreciation Rights held by
                  such Participant shall thereupon terminate and all Stock Appreciation
                  Rights held by such Participant shall thereupon
                  terminate.

              

      

      

      
        	 	
                (l)

              	
                Other
                  Termination.
                  Except as otherwise provided in the applicable option agreement,
                  if a
                  Participant’s employment or provision of services is terminated by the
                  Participant for any reason other than death, Disability or Retirement,
                  any
                  Stock Appreciation Right held by such Participant may thereafter
                  be
                  exercised, to the extent it was exercisable at the time of termination,
                  for a period of 30 days from the date of such termination of employment
                  or
                  provision of services or until the expiration of the exercisability
                  period
                  of such Stock Appreciation Right, whichever period is shorter,
                  and any
                  Stock Appreciation Right that is unvested or unexercisable at the
                  date of
                  termination shall thereupon
                  terminate.

              

      

      

      
        	 	
                (m)

              	
                Notwithstanding
                  the foregoing, to the extent permitted under Section 409A of the
                  Code, the
                  exercise period following a termination described in subsection
                  (g), (h),
                  (i), (j) or (l) above shall be tolled for any applicable window/blackout
                  period restrictions under the Company’s insider trading
                  policy.

              

      

      

      6.  STOCK
        AWARDS OTHER THAN OPTIONS.

      

      Stock
        Awards may be directly issued under the Plan (without any intervening options),
        subject to such terms, conditions, performance requirements, restrictions,
        forfeiture provisions, contingencies and limitations as the Administrator
        shall
        determine. Subject to the provisions of this Section
        6,
        Stock
        Awards may be issued which vest in one or more installments over the
        Participant’s period of employment and/or other service to the Company and/or
        upon the attainment of specified performance objectives, and/or the Company
        may
        issue Stock Awards which entitle the Participant to receive a specified number
        of vested shares of Stock upon the attainment of one or more performance
        goals
        and/or service requirements established by the Administrator.

      

      Shares
        representing a Stock Award shall be evidenced in such manner as the
        Administrator may deem appropriate, including book-entry registration or
        issuance of one or more certificates (which may bear appropriate legends
        referring to the terms, conditions and restrictions applicable to such Award).
        The Administrator may require that any such certificates be held in custody
        by
        the Company until any restrictions thereon shall have lapsed and that the
        Participant deliver a stock power, endorsed in blank, relating to the Stock
        covered by such Award.

      

      A
        Stock
        Award may be issued in exchange for any consideration which the Administrator
        may deem appropriate in each individual instance, including, without
        limitation:

      

      
        	 	
                (a)

              	
                cash
                  or cash equivalents;

              

      

      

      
        	 	
                (b)

              	
                past
                  services rendered to the Company or any Affiliate;
                  or

              

      

      

      
        	 	
                (c)

              	
                future
                  services to be rendered to the Company or any Affiliate (provided that,
                  in such case, the par value of the stock subject to such Stock
                  Award shall
                  be paid in cash or cash equivalents, unless the Administrator provides
                  otherwise).

              

      

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      A
        Stock
        Award that is subject to restrictions on transfer and/or forfeiture provisions
        may be referred to as an award of “Restricted
        Stock.”
Except
        as provided in the applicable restricted stock agreement, the restrictions
        on
        any Stock Award shall terminate as follows: (a) as to one-fourth of the
        restricted shares granted thereby, on the first anniversary of the date of
        grant
        of such Stock Award; (b) as to an additional one-fourth of the restricted
        shares
        granted thereby, on the second anniversary of the date of grant of such
        Restricted Stock; (c) as to an additional one-fourth of the restricted shares
        granted thereby, on the third anniversary of the date of grant of such
        Restricted Stock; and (d) as to an additional one-fourth of the restricted
        shares granted thereby, on the fourth anniversary of the date of grant of
        such
        Restricted Stock. A Participant, at his or her option, will be entitled to
        make
        the election permitted under Section 83(b) of the Code, to include in gross
        income in the taxable year in which the Restricted Stock are transferred
        to him
        or her, the fair market value of such shares at the time of transfer,
        notwithstanding that such shares are subject to a substantial risk of forfeiture
        within the meaning of the Code, or he or she may elect to include in gross
        income the Fair Market Value of the Restricted Stock as of the date or date
        on
        which such restrictions lapse. Notwithstanding the foregoing, the Administrator
        shall adopt, from time to time, such rules with respect to the return of
        executed Restricted Stock Agreements as it deems appropriate and failure
        by a
        Participant to comply with such rules shall, without limitation, terminate
        the
        grant of such Restricted Stock to such Participant and/or cause the forfeiture
        of any Restricted Stock as to which restrictions have not yet lapsed.

      

      7.  PERFORMANCE
        AWARDS.

      

      
        	 	
                (a)

              	
                Performance
                  Conditions.
                  The right of a Participant to exercise or receive a grant or settlement
                  of
                  any Award, and its timing, may be subject to performance conditions
                  specified by the Administrator at the time of grant (except as
                  provided in
                  this Section
                  7).
                  The Administrator may use business criteria and other measures
                  of
                  performance it deems appropriate in establishing any performance
                  conditions, and may exercise its discretion to reduce or increase
                  amounts
                  payable under any Award subject to performance conditions, except
                  as
                  limited under Section
                  7(b)
                  hereof in the case of a Performance Award intended to qualify under
                  Section 162(m) of the Code.

              

      

      

      
        	 	
                (b)
                  

              	
                Performance
                  Awards Granted to Designated Covered Employees.
                  If the Administrator determines that a Performance Award to be
                  granted to
                  a person the Administrator regards as likely to be a Covered Employee
                  should qualify as “performance-based compensation” for purposes of Section
                  162(m) of the Code, the grant and/or settlement of such Performance
                  Award
                  shall be contingent upon achievement of pre-established performance
                  goals
                  and other terms set forth in this Section
                  7(b)

              

      

      

      (i)    Performance
        Goals Generally.
        The
        performance goals for such Performance
        Awards shall consist of one or more business criteria and a  targeted
        level or levels of performance with respect to such criteria, as  specified
        by the Administrator consistent with this Section
        7(b).
         Performance
        goals shall be objective and shall otherwise meet the  requirements
        of Section 162(m) of the Code, including the requirement  that
        the
        level or levels of performance targeted by the Administrator result  in
        the
        performance goals being “substantially uncertain.” The  Administrator
        may determine that more than one performance goals must  be
        achieved as a condition to settlement of such Performance Awards.  Performance
        goals may differ for Performance Awards granted to any one  Participant
        or to different Participants.

       

      
        	
              	.1	
                (ii)    Business
                  Criteria.
                  One or more of the following business criteria for the Company,
                  on a
                  consolidated basis, and/or for specified Subsidiaries or business
                  units of
                  the Company (except with respect to the total stockholder return
                  and
                  earnings per share criteria), shall be used by the Administrator
                  in
                  establishing performance goals for such Performance Awards and
                  set forth
                  in the applicable Performance Award Agreement (each a “Performance
                  Measure”):

              

      

       

      	(1)  	
              Earnings
                before interest, tax, depreciation or amortization (“EBITDA”) (actual and
                adjusted and either in the aggregate or on a per-Share
                basis);

            

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      	(2)  	
              Earnings
                (either in the aggregate or on a per-Share
                basis);

            

       

      	(3)  	
              Net
                income or loss (either in the aggregate or on a per-Share
                basis);

            

       

      	(4)  	
              Operating
                profit;

            

       

      	(5)  	
              Growth
                or rate of growth in cash flow;

            

       

      	(6)  	
              Cash
                flow provided by operations (either in the aggregate or on a per-Share
                basis);

            

       

      	(7)  	
              Free
                cash flow (either in the aggregate on a per-Share
                basis);

            

       

      	(8)  	
              Costs;

            

       

      	(9)  	
              Gross
                revenues;

            

       

      	(10)  	
              Reductions
                in expense levels;

            

       

      	(11)  	
              Operating
                and maintenance cost management and employee
                productivity;

            

       

      	(12)  	
              Stockholder
                returns (including return on assets, investments, equity, or gross
                sales);

            

       

      	(13)  	
              Return
                measures (including return on assets, equity, or
                sales);

            

       

      	(14)  	
              Growth
                or rate of growth in return measures;

            

       

      	(15)  	
              Share
                price (including growth measures and total stockholder return or
                attainment by the Shares of a specified value for a specified period
                of
                time);

            

       

      	(16)  	
              Net
                economic value; 

            

       

      	(17)  	
              Economic
                value added;

            

       

      	(18)  	
              Aggregate
                product unit and pricing targets;

            

       

      	(19)  	
              Strategic
                business criteria, consisting of one or more objectives based on
                meeting
                specified revenue, market share, market penetration, geographic business
                expansion goals, objectively identified project milestones, production
                volume levels, cost targets, and goals relating to acquisitions or
                divestitures;

            

       

      	(20)  	
              Achievement
                of business or operational goals such as market share and/or business
                development;

            

       

      	(21)  	
              Achievement
                of diversity objectives;

            

       

      	(22)  	
              Results
                of customer satisfaction surveys; 

            

       

      	(23)  	
              Debt
                ratings, debt leverage and debt service

            

       

      	(24)  	
              Safety
                performance;

            

       

      	(25)  	
              Business
                unit and site accomplishments;

            

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      	(26)  	
              Achievement
                of scientific milestones;

            

       

      	(27)  	
              Corporate
                governance objectives; and

            

       

      	(28)  	
              Adherence
                to budget levels. 

            

       

      provided
        that applicable
        Performance Measures may be applied on a pre- or post-tax basis; and
provided
        further
        that the
        Committee may, on the grant date of an Award intended to comply with the
        performance-based exception to the limitations of Section 162(m) of the Code,
        and in the case of other Awards, at any time, provide that the formula for
        such
        Award may include or exclude items to measure specific objectives, such as
        losses from discontinued operations, extraordinary gains or losses, the
        cumulative effect of accounting changes, acquisitions or divestitures, foreign
        exchange impacts and any unusual, nonrecurring gain or loss.

      

      (iii)    Performance
        Period: Timing For Establishing Performance Goals.
         Achievement
        of performance goals in respect of such Performance  Awards
        shall be measured over such periods of at least 12 months’  duration
        as may be specified by the Administrator. Performance goals  shall
        be
        established on or before the dates that are required or permitted  for
        "performance-based compensation" under Section 162(m) of the Code.

      

        (iv)    Settlement
          of Performance Awards; Other Terms.
          Settlement of Performance Awards may be in cash or Stock, or other Awards,
          or
          other property, in the discretion of the Administrator. The Administrator
          may,
          in its discretion, reduce the amount of a settlement otherwise to be made
          in
          connection with such Performance Awards, but may not exercise discretion
          to
          increase any such amount payable in respect of a Performance Award subject
          to
          this Section
          7(b).
          The
          Administrator shall specify the circumstances in which such Performance
          Awards
          shall be forfeited or paid in the event of a termination of employment
          at least
          six months prior to the end of a performance period or settlement of Performance
          Awards, and other terms relating to such Performance Awards. Unless otherwise
          provided in an award agreement, a Performance Award payable to a Participant
          for
          a performance period shall be paid in the calendar year immediately following
          the calendar year in which the Performance Period ends, but no later than
          March
          15 of the calendar year immediately following the calendar year in which
          the
          performance period ends; provided,
          that
          except to the extent expressly otherwise required by a written agreement
          by and
          between the Participant and the Company, that the Participant is employed
          by the
          Company on the date such performance period ends. Except to the extent
          expressly
          otherwise required by a written agreement by and between the Participant
          and the
          Company, if a Participant is not employed with the Company on the date
          such
          performance period ends, such Performance Award shall be
          forfeited.

      

      

      8.  CHANGE
        IN CONTROL PROVISIONS.

      

      
        	 	
                (a)

              	
                Impact
                  of Event.
                  Notwithstanding any other provision of the Plan to the contrary,
                  in the
                  event of a Change in Control:

              

      

      

      
        	 	
                (i)

              	
                Subject
                  to Section
                  8(a)(iv)
                  hereof, the vesting and exercisability of any Stock Options and
                  Stock
                  Appreciation Rights outstanding as of the date such Change in Control
                  is
                  determined to have occurred and not then vested and exercisable
                  shall
                  become fully vested and
                  exercisable;

              

      

      

      
        	 	
                (ii)

              	
                Subject
                  to Section
                  8(a)(iv)
                  hereof, any restrictions applicable to any outstanding Stock Awards
                  shall
                  lapse and the Stock relating to such Awards shall become free of
                  all
                  restrictions and fully vested and
                  transferable;

              

      

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      
        	 	
                (iii)

              	
                Subject
                  to Sections
                  8(a)(iv)
                  and 8(a)(v)
                  hereof, all outstanding repurchase rights of the Company with respect
                  to
                  any outstanding Awards may, in the discretion of the Administrator,
                  terminate; 

              

      

      

      
        	 	
                (iv)

              	
                Outstanding
                  Awards shall, provided that no material modification of the Award
                  or any
                  liability results under Section 409A of the Code, be subject to
                  any
                  agreement of merger or reorganization that effects such Change
                  in Control
                  and that provides for:

              

      

      

      
        	 	
                (A)

              	
                The
                  continuation of the outstanding Awards by the Company, if the Company
                  is a
                  surviving corporation;

              

      

      

      
        	 	
                (B)

              	
                The
                  assumption of the outstanding Awards by the surviving corporation
                  or its
                  parent or subsidiary;

              

      

      

      
        	 	
                (C)

              	
                The
                  substitution by the surviving corporation or its parent or subsidiary
                  of
                  equivalent awards for the outstanding Awards;
                  or

              

      

      

      
        	 	
                (D)

              	
                Settlement
                  of each share of Stock subject to an outstanding Award for the
                  Change in
                  Control Price (less, to the extent applicable, the per share exercise
                  price), or, if the per share exercise price equals or exceeds the
                  Change
                  in Control Price, the outstanding Award shall terminate and be
                  canceled;
                  and

              

      

      

      
        	 	
                (v)

              	
                In
                  the absence of any agreement of merger or reorganization (if applicable)
                  which addresses the effects of such Change in Control and subject
                  to
                  Section 409A of the Code, each share of Stock subject to an outstanding
                  Award shall be settled for the Change in Control Price (less, to
                  the
                  extent applicable, the per share exercise price), or, if the per
                  share
                  exercise price equals or exceeds the Change in Control Price, the
                  outstanding Award shall terminate and be
                  canceled.

              

      

      

      
        	 	
                (b)

              	
                Definition
                  of Change in Control.
                  

              

      

      

      
        	 	
                (i)

              	
                For
                  purposes of the Plan, a “Change
                  in Control”
                  shall occur or be deemed to have occurred only if any of the following
                  events occur:

              

      

      

      
        	 	
                (A)

              	
                The
                  acquisition, directly or indirectly, by any person or group (as
                  those
                  terms are defined in Sections 3(a)(9), 13(d) and 14(d) of the Exchange
                  Act
                  and the rules thereunder) of beneficial ownership (as determined
                  pursuant
                  to Rule 13d-3 under the Exchange Act) of securities entitled to
                  vote
                  generally in the election of directors (voting securities) of the
                  Company
                  that represent 50% or more of the combined voting power of the
                  Company’s
                  then outstanding voting securities, other than:

              

      

       

      
        	 	
                (1)
                  

              	
                An
                  acquisition by a trustee or other fiduciary holding securities
                  under any
                  employee benefit plan (or related trust) sponsored or maintained
                  by the
                  Company or any person controlled by the Company or by any employee
                  benefit
                  plan (or related trust) sponsored or maintained by the Company
                  or any
                  person controlled by the Company; or

              

      

       

      
        	 	
                (2)
                  

              	
                An
                  acquisition of voting securities by the Company or a corporation
                  owned,
                  directly or indirectly by the stockholders of the Company in substantially
                  the same proportions as their ownership of the stock of the Company;
                  or
                  

              

      

      

      
        	 	
                (3)
                  

              	
                An
                  acquisition of voting securities pursuant to a transaction described
                  in
                  clause (C) below that would not be a Change of Control under clause
                  (C);
                  

              

      

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      Notwithstanding
        the foregoing, neither of the following events shall constitute an acquisition
        by any person or group for purposes of this subsection (a): an acquisition
        of
        the Company’s securities by the Company which causes the Company’s voting
        securities beneficially owned by a person or group to represent 50% or more
        of
        the combined voting power of the Company’s then outstanding voting securities;
provided,
        however,
        that if
        a person or group shall become the beneficial owner of 50% or more of the
        combined voting power of the Company’s then outstanding voting securities by
        reason of share acquisitions by the Company as described above and shall,
        after
        such share acquisitions by the Company, become the beneficial owner of any
        additional voting securities of the Company, then such acquisition shall
        constitute a Change of Control; or

      

      
        	 	
                (B)

              	
                During
                  any period of two consecutive years, individuals who, at the beginning
                  of
                  such period, constitute the Board together with any new director(s)
                  (other
                  than a director designated by a person who shall have entered into
                  an
                  agreement with the Company to effect a transaction described in
                  clauses
                  (A) or (C) of this subsection (i)) whose election by the Board
                  or
                  nomination for election by the Company’s stockholders was approved by a
                  vote of at least two-thirds of the directors then still in office
                  who
                  either were directors at the beginning of the two year period or
                  whose
                  election or nomination for election was previously so approved,
                  cease for
                  any reason to constitute a majority thereof;
                  or

              

      

       

      
        	 	
                (C)

              	
                The
                  consummation by the Company (whether directly involving the Company
                  or
                  indirectly involving the Company through one or more intermediaries)
                  of
                  (x) a merger, consolidation, reorganization, or business combination
                  or
                  (y) a sale or other disposition of all or substantially all of
                  the
                  Company’s assets or (z) the acquisition of assets or stock of another
                  entity, in each case other than a transaction:

              

      

       

      
        	 	
                (1)
                  

              	
                Which
                  results in the Company’s voting securities outstanding immediately before
                  the transaction continuing to represent (either by the remaining
                  outstanding or by being converted into voting securities of the
                  Company or
                  the person that, as a result of the transaction, controls, directly
                  or
                  indirectly, the Company or owns, directly or indirectly, all or
                  substantially all of the Company’s assets or otherwise succeeds to the
                  business of the Company (the Company or such person, the “Successor
                  Entity”))
                  directly or indirectly, at least a majority of the combined voting
                  power
                  of the Successor Entity’s outstanding voting securities immediately after
                  the transaction; and 

              

      

       

      
        	 	
                (2)
                  

              	
                After
                  which no person or group beneficially owns voting securities representing
                  50% or more of the combined voting power of the Successor Entity;
                  provided,
                  however,
                  that no person or group shall be treated for purposes of this clause
                  (2)
                  as beneficially owning 50% or more of combined voting power of
                  the
                  Successor Entity solely as a result of the voting power held in
                  the
                  Company prior to the consummation of the transaction;
                  or

              

      

      

      
        	 	
                (D)
                  

              	
                The
                  Company’s stockholders approve a liquidation or dissolution of the
                  Company. 

              

      

       

      The
        Committee shall have full and final authority, which shall be exercised in
        its
        discretion, to determine conclusively whether a Change of Control of the
        Company
        has occurred pursuant to the above definition, and the date of the occurrence
        of
        such Change of Control and any incidental matters relating thereto.

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

      	(ii)  	
              For
                purposes of Section
                8(b),
                stock ownership is determined under Section 409A of the
                Code.

            

       

      
        	 	
                (c)

              	
                Change
                  in Control Price.
                  For purposes of the Plan, “Change
                  in Control Price”
                  means the lowest of (i) the highest reported sales price of a share
                  of
                  Stock in any transaction reported on the Nasdaq Capital Market,
                  the Nasdaq
                  National Stock Market, or other national securities exchange on
                  which such
                  shares are listed, as applicable, during the 60-day period prior
                  to and
                  including the date of a Change in Control, (ii) if the Change in
                  Control
                  is the result of a tender or exchange offer or a Corporate Transaction,
                  the highest price per share of Stock paid in such tender or exchange
                  offer
                  or Corporate Transaction, and (iii) the Fair Market Value of a
                  share of
                  Stock upon the Change in Control. To the extent that the consideration
                  paid in any such transaction described above consists all or in
                  part of
                  securities or other non-cash consideration, the value of such securities
                  or other non-cash consideration shall be determined in the sole
                  discretion
                  of the Board. The Participant shall receive the same form of consideration
                  as holders of common stock, subject to the same restrictions and
                  limitations and indemnification obligations as the holders of common
                  stock
                  and will execute any and all documents required by the Administrator
                  to
                  evidence the same. 

              

      

      

      9.  MISCELLANEOUS.

      

      
        	 	
                (a)

              	
                Amendment.
                  The Board may at any time terminate, amend, alter, or discontinue
                  the
                  Plan, but no amendment, alteration or discontinuation shall be
                  made which
                  would adversely affect the rights of a Participant under an Award
                  theretofore granted without the Participant’s consent, except such an
                  amendment (i) made to avoid an expense charge to the Company or
                  an
                  Affiliate under applicable law or regulation, (ii) made to permit
                  the
                  Company or an Affiliate a deduction under the Code, or (iii) made
                  to avoid
                  liability under Section 409A of the Code. No such amendment or
                  alteration
                  shall be made without the approval of a majority vote of the Company’s
                  shareholders, present in person or by proxy at any special or annual
                  meeting of the shareholders (1) to the extent such approval is
                  required by
                  law, agreement or the rules of any stock exchange or market on
                  which the
                  Stock is listed,
                  or (2) with respect to any Award that is intended to qualify for
                  an
                  exemption from the limitations of Section 162(m) of the Code, to
                  the
                  extent such approval is required under Section 162(m) to maintain
                  such
                  exemption.

              

      

      

      The
        Administrator may amend the terms of any Stock Option or other Award theretofore
        granted, prospectively or retroactively, but except as provided in Section
        3
        hereof
        no such amendment shall adversely affect the rights of a Participant without
        the
        Participant’s consent. Notwithstanding anything in the Plan to the contrary,
        neither the Board nor the Administrator will be permitted to (i) amend a
        Stock
        Option to reduce its exercise price, (ii) cancel a Stock Option and re-grant
        a
        Stock Option with a lower exercise price than the original exercise price
        of the
        cancelled Stock Option, or (iii) take any other action (whether in the form
        of
        an amendment, cancellation or replacement grant) that has the effect of
        repricing a Stock Option.

      

      
        	 	
                (b)

              	
                Unfunded
                  Status of Plan.
                  It
                  is intended that this Plan be an “unfunded” plan for incentive and
                  deferred compensation. The Administrator may authorize the creation
                  of
                  trusts or other arrangements to meet the obligations created under
                  this
                  Plan to deliver Stock or make payments, provided that,
                  unless the Administrator otherwise determines, the existence of
                  such
                  trusts or other arrangements is consistent with the “unfunded” status of
                  this Plan.

              

      

      

      
        	
              	(c)	
                General
                  Provisions.

              

      

      

      
        	 	
                (i)

              	
                Unless
                  the shares to be issued in connection with an Award are registered
                  prior
                  to the issuance thereof under the Securities Act of 1933, as amended,
                  the
                  Administrator may require each person purchasing or receiving shares
                  pursuant to an Award to represent to and agree with the Company
                  in writing
                  that such person is acquiring the shares for his or her own account
                  as an
                  investment without a view to or for sale in connection with, the
                  distribution thereof. The certificates for such shares may include
                  any
                  legend which the Administrator deems appropriate to reflect any
                  restrictions on transfer.

              

      

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

       

      All
        certificates for shares of Stock or other securities delivered under the
        Plan
        shall be subject to such stock transfer orders and other restrictions as
        the
        Administrator may deem advisable under the rules, regulations and other
        requirements of the Commission, any stock exchange or market on which the
        Stock
        is then listed and any applicable Federal or state securities law, and the
        Administrator may cause a legend or legends to be put on any such certificates
        to make appropriate reference to such restrictions.

      

      
        	 	
                (ii)

              	
                Nothing
                  contained in the Plan shall prevent the Company or any Affiliate
                  from
                  adopting other or additional compensation arrangements for its
                  employees.

              

      

      

      
        	 	
                (iii)

              	
                The
                  adoption of the Plan shall not confer upon any employee, director,
                  associate, consultant or advisor any right to continued employment,
                  directorship or service, nor shall it interfere in any way with
                  the right
                  of the Company or any Subsidiary or Affiliate to terminate the
                  employment
                  or service of any employee, consultant or advisor at any
                  time.

              

      

      

      
        	 	
                (iv)

              	
                No
                  later than the date as of which an amount first becomes includible
                  in the
                  gross income of the Participant for Federal income tax purposes
                  with
                  respect to any Award under the Plan, the Participant shall pay
                  to the
                  Company, or make arrangements satisfactory to the Company regarding
                  the
                  payment of, any Federal, state, local or foreign taxes of any kind
                  required by law to be withheld with respect to such amount. Unless
                  otherwise determined by the Administrator, withholding obligations
                  may be
                  settled with Stock, including Stock that is part of the Award that
                  gives
                  rise to the withholding requirement. The obligations of the Company
                  under
                  the Plan shall be conditional on such payment or arrangements,
                  and the
                  Company, its Subsidiaries and its Affiliates shall, to the extent
                  permitted by law, have the right to deduct any such taxes from
                  any payment
                  otherwise due to the Participant. The Administrator may establish
                  such
                  procedures as it deems appropriate for the settlement of withholding
                  obligations with Stock.

              

      

      

      
        	 	
                (v)

              	
                The
                  Administrator shall establish such procedures as it deems appropriate
                  for
                  a Participant to designate a beneficiary to whom any amounts payable
                  in
                  the event of the Participant’s death are to be paid. In the event of the
                  death of a Participant, a condition of exercising any Award shall
                  be the
                  delivery to the Company of such tax waivers and other documents
                  as the
                  Administrator shall determine.

              

      

      

      
        	 	
                (vi)

              	
                Neither
                  any Participant nor his or her legal representatives, legatees
                  or
                  distributees shall be or be deemed to be the holder of any share
                  of Stock
                  covered hereby unless and until a certificate for such share has
                  been
                  issued. Upon payment of the purchase price thereof, a share shall
                  be fully
                  paid and non-assessable. 

              

      

      

      
        	 	
                (vii)

              	
                The
                  grant of an Award shall in no way affect the right of the Company
                  to
                  adjust, reclassify, reorganize or otherwise change its capital
                  or business
                  structure or to merge, consolidate, dissolve, liquidate or sell
                  or
                  transfer all or any part of its business or assets, or issue bonds,
                  debentures, preferred or prior preference stock ahead of or affecting
                  the
                  Stock, or take any other corporate act or proceeding whether of
                  a similar
                  character or otherwise.

              

      

      

      
        	 	
                (viii)

              	
                If
                  any payment or right accruing to a Participant under this Plan
                  (without
                  the application of this Section
                  9(c)(viii)),
                  either alone or together with other payments or rights accruing
                  to the
                  Participant from the Company or an Affiliate (“Total
                  Payments”)
                  would constitute a “parachute payment” (as defined in Section 280G of the
                  Code and regulations thereunder), such payment or right shall be
                  reduced
                  to the largest amount or greatest right that will result in no
                  portion of
                  the amount payable or right accruing under this Plan being subject
                  to an
                  excise tax under Section 4999 of the Code or being disallowed as
                  a
                  deduction under Section 280G of the Code; provided,
                  however,
                  that the foregoing shall not apply to the extent provided otherwise
                  in an
                  Award or in the event the Participant is party to an agreement
                  with the
                  Company or an Affiliate that explicitly provides for an alternate
                  treatment of payments or rights that would constitute “parachute
                  payments.” The determination of whether any reduction in the rights or
                  payments under this Plan is to apply shall be made by the Administrator
                  in
                  good faith after consultation with the Participant, and such determination
                  shall be conclusive and binding on the Participant. The Participant
                  shall
                  cooperate in good faith with the Administrator in making such
                  determination and providing the necessary information for this
                  purpose.
                  The foregoing provisions of this Section
                  9(c)(viii)
                  shall apply with respect to any person only if, after reduction
                  for any
                  applicable Federal excise tax imposed by Section 4999 of the Code
                  and
                  Federal income tax imposed by the Code, the Total Payments accruing
                  to
                  such person would be less than the amount of the Total Payments
                  as
                  reduced, if applicable, under the foregoing provisions of this
                  Plan and
                  after reduction for only Federal income taxes.

              

      

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

       

      
        	 	
                (ix)

              	
                To
                  the extent that the Administrator determines that the restrictions
                  imposed
                  by the Plan preclude the achievement of the material purposes of
                  the
                  Awards in jurisdictions outside the United States, the Administrator
                  in
                  its discretion may modify those restrictions as it determines to
                  be
                  necessary or appropriate to conform to applicable requirements
                  or
                  practices of jurisdictions outside of the United
                  States.

              

      

      

      
        	 	
                (x)

              	
                The
                  headings contained in this Plan are for reference purposes only
                  and shall
                  not affect the meaning or interpretation of this
                  Plan.

              

      

      

      
        	 	
                (xi)

              	
                If
                  any provision of this Plan shall for any reason be held to be invalid
                  or
                  unenforceable, such invalidity or unenforceability shall not effect
                  any
                  other provision hereby, and this Plan shall be construed as if
                  such
                  invalid or unenforceable provision were
                  omitted.

              

      

      

      
        	 	
                (xii)

              	
                This
                  Plan shall inure to the benefit of and be binding upon each successor
                  and
                  assign of the Company. All obligations imposed upon a Participant,
                  and all
                  rights granted to the Company hereunder, shall be binding upon
                  the
                  Participant’s heirs, legal representatives and
                  successors.

              

      

      

      
        	 	
                (xiii)

              	
                This
                  Plan and each agreement granting an Award constitute the entire
                  agreement
                  with respect to the subject matter hereof and thereof, provided that
                  in
                  the event of any inconsistency between this Plan and such agreement,
                  the
                  terms and conditions of the Plan shall
                  control.

              

      

      

      
        	 	
                (xiv)

              	
                In
                  the event there is an effective registration statement under the
                  Securities Act pursuant to which shares of Stock shall be offered
                  for sale
                  in an underwritten offering, a Participant shall not, during the
                  period
                  requested by the underwriters managing the registered public offering,
                  effect any public sale or distribution of shares of Stock received,
                  directly or indirectly, as an Award or pursuant to the exercise
                  or
                  settlement of an Award.

              

      

      

      
        	 	
                (xv)

              	
                None
                  of the Company, an Affiliate or the Administrator shall have any
                  duty or
                  obligation to disclose affirmatively to a record or beneficial
                  holder of
                  Stock or an Award, and such holder shall have no right to be advised
                  of,
                  any material information regarding the Company or any Affiliate
                  at any
                  time prior to, upon or in connection with receipt or the exercise
                  of an
                  Award or the Company’s purchase of Stock or an Award from such holder in
                  accordance with the terms hereof.

              

      

      

      
        	 	
                (xvi)

              	
                This
                  Plan, and all Awards, agreements and actions hereunder, shall be
                  governed
                  by, and construed in accordance with, the laws of the state of
                  Delaware
                  (other than its law respecting choice of
                  law).

              

      

      

      
        	 	
                (xvii)

              	
                No
                  Award granted pursuant to this Plan is intended to constitute “deferred
                  compensation” as defined in Section 409A of the Code, and the Plan and the
                  terms of all Awards shall be interpreted accordingly. If any provision
                  of
                  the Plan or an Award contravenes any regulations or Treasury guidance
                  promulgated under Section 409A of the Code or could cause an Award
                  to be
                  subject to the penalties and interest under Section 409A of the
                  Code, such
                  provision of the Plan or Award shall be modified to maintain, to
                  the
                  maximum extent practicable, the original intent of the applicable
                  provision without resulting in liability under Section 409A of
                  the
                  Code.

              

      

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

       

      10.  DEFINITIONS.

      

      For
        purposes of this Plan, the following terms are defined as set forth
        below:

      

      
        	 	
                (a)

              	
                “Affiliate”
                  means a corporation or other entity (i) controlled by the Company
                  and
                  which, in the case of grants of Stock Options and Stock Appreciation
                  Rights would, together with the Company, be classified as the “service
                  recipient” (as defined in the regulations under Section 409A of the Code)
                  with respect to an Eligible Individual, and (ii) is designated
                  by the
                  Administrator as such.

              

      

      

      
        	 	
                (b)

              	
                “Award”
                  means a Stock Appreciation Right, Stock Option or Stock Award.
                  

              

      

      

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

              

      

      

      
        	 	
                (d)

              	
                “Cause”
                  means (i) the commission by the Participant of any act or omission
                  that
                  would constitute a felony or any crime of moral turpitude under
                  Federal
                  law or the law of the state or foreign law in which such action
                  occurred,
                  (ii) dishonesty, disloyalty, fraud, embezzlement, theft, disclosure
                  of
                  trade secrets or confidential information or other acts or omissions
                  that
                  result in a breach of fiduciary or other material duty to the Company
                  and/or a Subsidiary; or (iii) continued reporting to work or working
                  under
                  the influence of alcohol, an illegal drug, an intoxicant or a controlled
                  substance which renders Participant incapable of performing his
                  or her
                  material duties to the satisfaction of the Company and/or its
                  Subsidiaries. Notwithstanding the foregoing, if the Participant
                  and the
                  Company or the Affiliate have entered into an employment or services
                  agreement which defines the term “Cause”
                  (or a similar term), such definition shall govern for purposes
                  of
                  determining whether such Participant has been terminated for Cause
                  for
                  purposes of this Plan. The determination of Cause shall be made
                  by the
                  Administrator, in its sole
                  discretion.

              

      

      

      
        	 	
                (e)

              	
                “Code”
                  means the Internal Revenue Code of 1986, as amended from time to
                  time, and
                  any successor thereto.

              

      

      

      
        	 	
                (f)
                  

              	
                “Commission”
                  means the Securities and Exchange Commission or any successor
                  agency.

              

      

      

      
        	 	
                (g)

              	
                “Committee”
                  means a committee of Directors appointed by the Board to administer
                  this
                  Plan. Insofar as the Committee is responsible for granting Awards
                  to
                  Participants hereunder, it shall consist solely of two or more
                  directors,
                  each of whom is a “non-employee director” within the meaning of Rule
                  16b-3, an “outside director” under Section 162(m) of the Code, an
                  “independent director” as defined by the Sarbanes-Oxley Act of 2002, and
                  “independent” as defined by the rules of any stock exchange or market on
                  which the Stock is listed.

              

      

      

      
        	 	
                (h)

              	
                “Covered
                  Employee”
                  means a person who is a “covered employee” within the meaning of Section
                  162(m) of the Code.

              

      

      

      
        	 	
                (i)

              	
                “Director”
                  means a member of the Company’s
                  Board.

              

      

      

      
        	 	
                (j)

              	
                “Disability”
                  means mental or physical illness that entitles the Participant
                  to receive
                  benefits under the long-term disability plan of the Company or
                  an
                  Affiliate, or if the Participant is not covered by such a plan
                  or the
                  Participant is not an employee of the Company or an Affiliate,
                  a mental or
                  physical illness that renders a Participant totally and permanently
                  incapable of performing the Participant’s duties for the Company or an
                  Affiliate; provided,
                  however,
                  that a Disability shall not qualify under this Plan if it is the
                  result of
                  (i) a willfully self-inflicted injury or willfully self-induced
                  sickness;
                  or (ii) an injury or disease contracted, suffered or incurred while
                  participating in a criminal offense. Notwithstanding the foregoing,
                  if the
                  Participant and the Company or an Affiliate have entered into an
                  employment or services agreement which defines the term “Disability”
                  (or a similar term), such definition shall govern for purposes
                  of
                  determining whether such Participant suffers a Disability for purposes
                  of
                  this Plan. The determination of Disability shall be made by the
                  Administrator, in its sole discretion. The determination of Disability
                  for
                  purposes of this Plan shall not be construed to be an admission
                  of
                  disability for any other purpose.

              

      

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

       

      
        	
              	(k)	
                “Effective
                  Date”
                  of
                  the amendment and restatement of the Plan means April 29, 2008.
                  The 2006
                  Plan was originally effective on July 1, 2006.  

              

      

      

      
        	 	
                (l)

              	
                “Eligible
                  Individual”
                  means any (i) officer, employee, associate or director of the Company
                  or a
                  Subsidiary or Affiliate, (ii) any consultant or advisor providing
                  services
                  to the Company or a Subsidiary or Affiliate, or (iii) employees
                  of (x) a
                  corporation or other business enterprise which has been acquired
                  by the
                  Company or a Subsidiary, which, in the case of grants of Stock
                  Options and
                  Stock Appreciation Rights would, together with the Company and,
                  if
                  applicable, the Subsidiary, be classified as the “service recipient” (as
                  defined in the regulations under Section 409A of the Code) with
                  respect to
                  such employees and (y) who hold options with respect to the stock
                  of such
                  corporation which the Company has agreed to assume.
                  

              

      

      

      
        	 	
                (m)

              	
                “Exchange
                  Act”
                  means the Securities Exchange Act of 1934, as amended from time
                  to time,
                  and any successor thereto.

              

      

      

      
        	 	
                (n)

              	
                “Fair
                  Market Value”
                  means, as of any given date, the fair market value of the Stock
                  as
                  determined by the Administrator or under procedures established
                  by the
                  Administrator, in accordance with Section 409A of the Code and
                  the
                  regulations issued thereunder. Unless otherwise determined by the
                  Administrator, the Fair Market Value per share on any date shall
                  be the
                  most recent closing sales price per share of the Stock on the Nasdaq
                  Capital Market, the Nasdaq National Stock Market, or the principal
                  stock
                  exchange or market on which the Stock is then traded on the business
                  day
                  preceding the date as of which such value is being determined or
                  the last
                  previous day on which a sale was reported if no sale of the Stock
                  was
                  reported on such date on such Exchange on such business day.
                  

              

      

      

      
        	 	
                (o)

              	
                “Family
                  Member”
                  means any child, stepchild, grandchild, parent, stepparent, grandparent,
                  spouse, former spouse, sibling, niece, nephew, mother-in-law,
                  father-in-law, son-in-law, daughter-in-law, brother-in-law or
                  sister-in-law of a Participant (including adoptive relationships);
                  any
                  person sharing the Participant’s household (other than a tenant or
                  employee); any trust in which the Participant and any of these
                  persons
                  have all of the beneficial interest; any foundation in which the
                  Participant and any of these persons control the management of
                  the assets;
                  any corporation, partnership, limited liability company or other
                  entity in
                  which the Participant and any of these other persons are the direct
                  and
                  beneficial owners of all of the equity interests (provided
                  the Participant and these other persons agree in writing to remain
                  the
                  direct and beneficial owners of all such equity interests); and
                  any
                  personal representative of the Participant upon the Participant’s death
                  for purposes of administration of the Participant’s estate or upon the
                  Participant’s incompetency for purposes of the protection and management
                  of the assets of the Participant.

              

      

      

      
        	 	
                (p)

              	
                “Incentive
                  Stock Option”
                  means any Stock Option intended to be and designated as an “incentive
                  stock option” within the meaning of Section 422 of the
                  Code.

              

      

      

      
        	 	
                (q)

              	
                “Non-Qualified
                  Stock Option”
                  means any Stock Option that is not an Incentive Stock
                  Option.

              

      

      

      
        	 	
                (r)

              	
                “Optionee”
                  means a person who holds a Stock
                  Option.

              

      

      

      
        	 	
                (s)

              	
                “Participant”
                  means a person granted an Award.

              

      

      

      
        	
              	(t)	
                “Performance
                  Award”
                  means a right, granted to a Participant under Section
                  7,
                  to receive
                  Awards based upon performance criteria specified by the
                  Administrator.

              

      

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

       

      
        	 	
                (u)

              	
                “Representative”
                  means (i) the person or entity acting as the executor or administrator
                  of
                  a Participant’s estate pursuant to the last will and testament of a
                  Participant or pursuant to the laws of the jurisdiction in which
                  the
                  Participant had his or her primary residence at the date of the
                  Participant’s death; (ii) the person or entity acting as the guardian
                  or temporary guardian of a Participant; (iii) the person or entity
                  which is the beneficiary of the Participant upon or following the
                  Participant’s death; or (iv) any person to whom an Option has been
                  transferred with the permission of the Administrator or by operation
                  of
                  law; provided that
                  only one of the foregoing shall be the Representative at any point
                  in time
                  as determined under applicable law and recognized by the
                  Administrator.

              

      

      

      
        	 	
                (v)

              	
                “Retirement”
                  means termination of employment or provision of services without
                  Cause,
                  death or Disability on or after age 65 with 5 years of
                  service.

              

      

      

      
        	 	
                (w)

              	
                “Stock”
                  means the common stock, par value $0.005 per share, of the
                  Company.

              

      

      

      
        	 	
                (x)

              	
                “Stock
                  Appreciation Right”
                  means a right granted under Section
                  5.

              

      

      

      
        	 	
                (y)

              	
                “Stock
                  Award”
                  means an Award, other than a Stock Option or Stock Appreciation
                  Right,
                  made in Stock or denominated in shares of
                  Stock.

              

      

      

      
        	 	
                (z)

              	
                “Stock
                  Option”
                  means an option granted under Section
                  4.

              

      

      

      
        	 	
                (aa)

              	
                “Subsidiary”
                  means any company during any period in which it is a “subsidiary
                  corporation” (as such term is defined in Section 424(f) of the Code) with
                  respect to the Company.

              

      

      

      
        	 	
                (bb)

              	
                “Ten
                  Percent Holder”
                  means an individual who owns, or is deemed to own, stock possessing
                  more
                  than 10% of the total combined voting power of all classes of stock
                  of the
                  Company or of any parent or subsidiary corporation of the Company,
                  determined pursuant to the rules applicable to Section 422(b)(6)
                  of the
                  Code.

              

      

      

      In
        addition, certain other terms used herein have the definitions given to them
        in
        the first places in which they are used.

      

      
        
          
          

        

        
          19

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