Document:

Exhibit
4.01

 

APOLLO RESOURCES
INTERNATIONAL, INC.

2005 STOCK OPTION
AND AWARD PLAN

 

APOLLO RESOURCES
INTERNATIONAL, INC., a Utah corporation (the “Company”), hereby adopts this 2005
Stock Option and Award Plan (the “Plan”), effective as of the 18th day of February 2005,
under which options to acquire stock of the Company or bonus stock may be
granted from time to time to employees, including officers and directors of the
Company and/or its subsidiaries. In addition, at the discretion of the board of
directors or other administrator of this Plan, options to acquire stock of the
Company or bonus stock may from time to time be granted under this Plan to
other individuals who contribute to the success of the Company or its
subsidiaries but who are not employees of the Company, all on the terms and
conditions set forth herein.

 

1.                                       Purpose
of the Plan. The Plan is intended to aid the Company in maintaining and
developing a management team, attracting qualified officers and employees
capable of assisting in the future success of the Company, and rewarding those
individuals who have contributed to the success of the Company. It is designed
to aid the Company in retaining the services of executives and employees and in
attracting new personnel when needed for future operations and growth and to
provide such personnel with an incentive to remain employees of the Company, to
use their best efforts to promote the success of the Company’s business, and to
provide them with an opportunity to obtain or increase a proprietary interest
in the Company. It is also designed to permit the Company to reward those
individuals who are not employees of the Company but who are perceived by
management as having contributed to the success of the Company or who are
important to the continued business and operations of the Company. The above
aims will be effectuated through the granting of options (“Options”) to
purchase shares of common stock of the Company, par value $0.001 per share (the
“Stock”), or the granting of awards of bonus stock (“Stock Awards”), all
subject to the terms and conditions of this Plan. It is intended that the
Options issued pursuant to this Plan include, when designated as such at the
time of grant, options which qualify as Incentive Stock Options (“Incentive
Options”) within the meaning of section 422 of the Internal Revenue Code
of 1986, as amended (the “Code”), or any amendment or successor provision of
like tenor. If the Company has a class of securities registered under the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), it is
intended that Options or Stock Awards granted pursuant to this Plan qualify for
the exemption provided for in Rule 16b-3 (“Rule 16b-3”) promulgated under the
Exchange Act or any amendment or successor rule of like tenor when granted in
accordance with the provisions of such rule.

 

2.                                       Shareholder
Approval. The Plan shall become effective immediately on adoption by the
board of directors of the Company (the “Board”) and awards under the Plan may
be made at that time or at any subsequent time. The Plan shall be submitted to
the Company’s shareholders in the manner set forth below:

 

(a)                                  Within
twelve months after the Plan has been adopted by the Board, the Plan shall be
submitted for approval by those shareholders of the Company who are entitled to
vote on such matters at a duly held shareholders’ meeting or approved by the
written consent of a majority of the holders of the issued and outstanding
Stock of the Company. If the Plan is presented at a shareholders’ meeting, it
shall be approved by the affirmative vote of the holders of a majority of the
issued and outstanding Stock in attendance, in person or by proxy, at such
meeting. Notwithstanding the foregoing, the Plan may be approved by the
shareholders in any other manner not inconsistent with the Company’s articles
of incorporation and bylaws, the applicable provisions of state corporate laws,
and the applicable provisions of the Code and regulations adopted thereunder.

 

(b)                                 In
the event the Plan is so approved, the secretary of the Company shall, as soon
as practicable following the date of final approval, prepare and attach to this
Plan certified copies of all relevant resolutions adopted by the shareholders
and the Board.

 

(c)                                  Failure
to obtain shareholder approval on or before the date that is twelve months
subsequent to the adoption of this Plan by the Board shall not affect awards
previously granted under the Plan; provided
that, none of the Options issued under this Plan will qualify as
Incentive Options.

 

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3.                                       Administration
of the Plan. Administration of the Plan shall be determined by the Board.
Subject to compliance with applicable provisions of the governing law, the
Board may delegate administration of the Plan or specific administrative duties
with respect to the Plan, on such terms and to such committees of the Board as
it deems proper. Any Option or Stock Award approved by the Board shall be
approved by a majority vote of those members of the Board in attendance at a
meeting at which a quorum is present. Any Option or Stock Award approved by a
committee designated by the Board shall be approved as specified by the Board
at the time of delegation. The interpretation and construction of the terms of
the Plan by the Board or a duly authorized committee shall be final and binding
on all participants in the Plan absent a showing of demonstrable error. No
member of the Board or duly authorized committee shall be liable for any action
taken or determination made in good faith with respect to the Plan.

 

The Board’s or duly
authorized committee’s determination under the Plan (including without
limitation determinations of the persons to receive Options or Stock Awards,
the form, amount, and timing of such Options or Stock Awards, the terms and
provisions of such Options or Stock Awards, and the agreements evidencing same)
need not be uniform and may be made by the Board or duly authorized committee
selectively among persons who receive, or are eligible to receive, Options or Stock
Awards under the Plan, whether or not such persons are similarly situated.

 

4.                                       Shares
of Stock Subject to the Plan.  A
total of 10,000,000 shares of Stock may be subject to, or issued pursuant to,
Options or Stock Awards granted under the terms of this Plan. Any shares
subject to an Option or Stock Award under the Plan, which Option or Stock Award
for any reason expires or is forfeited terminated, or surrendered unexercised
as to such shares, shall be added back to the total number of shares reserved for
issuance under the terms of this Plan. If any right to acquire Stock granted
under the Plan is exercised by the delivery of shares of Stock or the
relinquishment of rights to shares of Stock, only the net shares of Stock
issued (the shares of Stock issued less the shares of Stock surrendered) shall
count against the total number of shares reserved for issuance under the terms
of this Plan.  The number of shares of
Stock subject to the Plan is subject to adjustment as set forth in Section 16
hereof.

 

5.                                       Reservation
of Stock on Granting of Option.  At
the time of granting any Option under the terms of this Plan, there will be
reserved for issuance on the exercise of the Option the number of shares of
Stock of the Company subject to such Option. The Company may reserve either
authorized but unissued shares or issued shares that have been reacquired by
the Company.

 

6.                                       Eligibility.
Options or Stock Awards under the Plan may be granted to employees, including
officers and directors, of the Company or its subsidiaries, as may be existing from time to time, and to other individuals who are
not employees of the Company as may be deemed in the best interest of the
Company by the Board or a duly authorized committee. Such Options or Stock
Awards shall be in the amounts, and shall have the rights and be subject to the
restrictions, as may be determined by the Board or a duly authorized committee
at the time of grant, all as may be within the general provisions of this Plan.

 

7.                                       Term
of Options and Certain Limitations on Right to Exercise.

 

(a)                                  Each
Option shall have the term established by the Board or duly authorized
committee at the time the Option is granted but in no event may an Option have
a term in excess of five years.

 

(b)                                 The
term of the Option, once it is granted, may be reduced only as provided for in
this Plan or under the written provisions of the Option.

 

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(c)                                  Unless
otherwise specifically provided by the written provisions of the Option, no
holder or his or her legal representative, legatee, or distributee will be, or
shall be deemed to be, a holder of any shares subject to an Option unless and
until the holder exercises his or her right to acquire all or a portion of the
Stock subject to the Option and delivers the required consideration to the
Company in accordance with the terms of this Plan and the Option and then only
to the extent of the number of shares of Stock acquired. Except as specifically
provided in this Plan or as otherwise specifically provided by the written
provisions of the Option, no adjustment to the exercise price or the number of
shares of Stock subject to the Option shall be made for dividends or other
rights for which the record date is prior to the date the Stock subject to the
Option is acquired by the holder.

 

(d)                                 Options
under the Plan shall vest and become exercisable at such time or times and on
such terms as the Board or a duly authorized committee may determine at the
time of the grant of the Option.

 

(e)                                  Options
granted under the Plan shall contain such other provisions, including, without
limitation, further restrictions on the vesting and exercise of the Option, as
the Board or a duly authorized committee shall deem advisable.

 

(f)                                    In
no event may an Option be exercised after the expiration of its term.

 

(g)                                 Unless
otherwise specifically provided by the written provisions of an Option granted
pursuant to this Plan, upon receipt of:

 

(i) any
request that the exercise of the Option or the resale of any shares of Stock
issued or to be issued on exercise of such Option will be registered under the
Securities Act; or

 

(ii) any
notice of exercise of such Option pursuant to its terms, in lieu of any
obligation to effect any registration with respect to the Options or shares of
Common Stock issuable on such Option or in lieu of delivering shares of Common
Stock on the exercise of the Option;

 

the Company may, within
five business days of receipt of such request to register or notice of
exercise, purchase, in whole or in part, such Options from the Optionee at an
amount in cash equal to the difference between the then current fair market
value (as defined below) of the Common Stock on the day of such repurchase and
the exercise price in effect on such day.

 

In order to exercise such
right, the Company must provide written notice to the optionee at least five
days prior to the date that the Company proposes to repurchase such Options. For purposes of this section. the fair market value of the
Common Stock shall be determined by the Board or a duly authorized committee
based on the closing price for the Stock as quoted on a registered national
securities exchange or, if not listed on a national exchange, the Nasdaq Stock
Market (“Nasdaq”), on the trading day immediately preceding the date that the
Company’s provides notice of its intent to repurchase the Options, or, if not
listed on such an exchange or included on Nasdaq, the closing price for the
Stock as determined by the Board or a duly authorized committee through any
other reliable means of determination available on the close of business on the
trading day last preceding the date of providing the notice.

 

8.                                       Exercise
Price. The exercise price of each Option issued under the Plan shall be
determined by the Board or a duly authorized committee on the date of grant.

 

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9.                                       Payment
of Exercise Price. The exercise of any Option shall be contingent on
receipt by the Company of cash, certified bank check to its order, or other
consideration acceptable to the Company; provided
that, at the discretion of the Board or a duly authorized committee,
the written provisions of the Option may provide that payment can be made in
whole or in part in shares of Stock of the Company that have been owned by the
optionee for more than six months or by the surrender of Options to acquire
Stock from the Company that have been held for more than six months, which
Stock or Options shall be valued at their then fair market value as determined
by the Board or a duly authorized committee. Any consideration approved by the
Board or a duly authorized committee that calls for the payment of the exercise
price over a period of more than one year shall provide for interest, which
shall not be included as part of the exercise price, that is equal to or
exceeds the imputed interest provided for in section 483 of the Code or
any amendment or successor section of like tenor.

 

10.                                 Withholding.
If the grant of a Stock Award or the grant or exercise of an Option pursuant to
this Plan, or any other event in connection with any such grant or exercise,
creates an obligation to withhold income and employment taxes pursuant to the
Code or applicable state or local laws, such obligation may, at the discretion
of the Board or a duly authorized committee at the time of the grant of the
Option or Stock Award and to the extent permitted by the terms of the Option or
Stock Award and the then governing provisions of the Code and the Exchange Act,
be satisfied (i) by the holder of the Option or Stock Award delivering to the
Company an amount of cash equal to such withholding obligation; (ii) by the
Company withholding from any compensation or other amount owing to the holder
of the Option or Stock Award the amount (in cash, Stock, or other property as the
Company may determine) of the withholding obligation; (iii) by the Company
withholding shares of Stock subject to the Option or Stock Award with a fair
market value equal to such obligation; or (iv) by the holder of the Option or
Stock Award either delivering shares of Stock that have been owned by the
holder for more than six months or canceling Options or other rights to acquire
Stock from the Company that have been held for more than six months with a fair
market value equal to such requirements. In all events, delivery of shares of
Stock issuable on exercise of the Option or on grant of the Stock Award shall
be conditioned upon and subject to the satisfaction or making provision for the
satisfaction of the withholding obligation of the Company resulting from the
grant or exercise of the Option, grant of the Stock Award, or any other event.
The Company shall be further authorized to take such other action as may be
necessary, in the opinion of the Company, to satisfy all obligations for the
payment of such taxes.

 

11.                                 Incentive
Options - Additional Provisions. In addition to the other restrictions and
provisions of this Plan, any Option granted hereunder that is intended to be an
Incentive Option shall meet the following further requirements:

 

(a)                                  The
exercise price of an Incentive Option shall not be less than the fair market
value of the Stock on the date of grant of the Incentive Option as determined
by the Board or a duly authorized committee based on the closing price for the
Stock as quoted on a registered national securities exchange or, if not listed
on a national exchange or Nasdaq, over the five-day trading period immediately
prior to the date of grant of such Incentive Option, or, if not listed on such
an exchange or included on Nasdaq, the closing price for the Stock as
determined by the Board or a duly authorized committee through any other
reliable means of determination available on the close of business on the
trading day last preceding the date of grant of such Incentive Option and
permitted by the applicable provisions of the Code.

 

(b)                                 No
Incentive Option may be granted under the Plan to any individual that owns
(either of record or beneficially) Stock possessing more than 10% of the
combined voting power of the Company or any parent or subsidiary corporation
unless both the exercise price is at least 110% of the fair market value of the
Stock on the date the Option is granted and the Incentive Option by its terms
is not exercisable more than five years after the date it is granted.

 

(c)                                  Incentive
Options may be granted only to employees of the Company or its subsidiaries and
only in connection with that employee’s employment by the Company or the
subsidiary. Notwithstanding the above, directors and other individuals who have
contributed to the success of the Company or its subsidiaries may be granted
Incentive Options under the Plan, subject to, and to the extent permitted by,
applicable provisions of the Code and regulations promulgated thereunder, as
they may be amended from time to time.

 

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(d)                                 The
aggregate fair market value (determined as of the date the Incentive Option is
granted) of the shares of Stock with respect to which Incentive Options are
exercisable for the first time by any individual during any calendar year under
the Plan (and all other plans of the Company and its subsidiaries) may not
exceed $100,000.

 

(e)                                  No
Incentive Option shall be transferable other than by will or the laws of
descent and distribution and shall be exercisable, during the lifetime of the
optionee, only by the optionee to whom the Incentive Option is granted.

 

(f)                                    No
individual acquiring shares of Stock pursuant to any Incentive Option granted
under this Plan shall sell, transfer, or otherwise convey the Stock until after
the date that is both two years after the date the Incentive Option was granted
and one year after the date the Stock was acquired pursuant to the exercise of
the Incentive Option. If any individual makes a disqualifying disposition, he
or she shall notify the Company within 30 days of such transaction.

 

(g)                                 No
Incentive Option may be exercised unless the holder was, within three months of
such exercise, and had been since the date the Incentive Option was granted, an
eligible employee of the Company as specified in the applicable provisions of
the Code, unless the employment was terminated as a result of the death or
disability (as defined in the Code and the regulations promulgated thereunder
as they may be amended from time to time) of the employee or the employee dies
within three months of the termination. In the event of termination as a result
of disability, the holder shall have a one year period following termination in
which to exercise the Incentive Option. In the event of death of the holder,
the Incentive Option must be exercised within six months after the issuance of
letters testamentary or administration or the appointment of an administrator,
executor, or personal representative, but not later than one year after the
date of termination of employment. An authorized absence or leave approved by
the Board or a duly authorized committee for a period of 90 days or less shall
not be considered an interruption of employment for any purpose under the Plan.

 

(h)                                 All
Incentive Options shall be deemed to contain such other limitations and
restrictions as are necessary to conform the Incentive
Option to the requirements for “incentive stock options” as defined in section 422
of the Code, or any amendment or successor statute of like tenor.

 

All of the foregoing
restrictions and limitations are based on the governing provisions of the Code
as of the date of adoption of this Plan. If at any time the Code is amended to
permit the qualification of an Option as an incentive stock option without one
or more of the foregoing restrictions or limitations or the terms of such
restrictions or limitations are modified, the Board or a duly authorized
committee may grant Incentive Options, and may modify outstanding Incentive
Options in accordance with such changes, all to the extent that such action by
the Board or duly authorized committee does not disqualify the Options from
treatment as incentive stock options under the provisions of the Code as may be
amended from time to time.

 

12.                                 Awards
to Directors and Officers. To the extent the Company has a class of
securities registered under the Exchange Act, Options or Stock Awards granted
under the Plan to directors and officers (as used in Rule 16b-3 promulgated
under the Exchange Act or any amendment or successor rule of like tenor)
intended to qualify for the exemption from section 16(b) of the Exchange
Act provided in Rule 16b-3 shall, in addition to being subject to the other
restrictions and limitations set forth in this Plan, be made as follows:

 

(a)                                  A
transaction whereby there is a grant of an Option or Stock Award pursuant to
this Plan must satisfy one of the following:

 

(i)                                     The
transaction must be approved by the Board or a duly authorized committee
composed solely of two or more non-employee directors of the Company (as
defined in Rule 16b-3);

 

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(ii)                                  The
transaction must be approved or ratified, in compliance with section 14 of
the Exchange Act, by either: the affirmative vote of the holders of a majority
of the securities of the Company present or represented and entitled to vote at
a meeting of the shareholders of the Company held in accordance with the
applicable laws of the state of incorporation of the Company; or, if allowed by
applicable state law, the written consent of the holders of a majority, or such
greater percentage as may be required by applicable laws of the state of
incorporation of the Company, of the securities of the Company entitled to
vote. If the transaction is ratified by the shareholders, such ratification
must occur no later than the date of the next annual meeting of shareholders;
or

 

(iii)                               The
Stock acquired must be held by the officer or director for a period of six
months subsequent to the date of the grant; provided
that, if the transaction involves a derivative security (as defined
in section 16 of the Exchange Act), this condition shall be satisfied if
at least six months elapse from the date of acquisition of the derivative
security to the date of disposition of the derivative security (other than on
exercise or conversion) or its underlying equity security.

 

(b)                                 Any
transaction involving the disposition to the Company of its securities in
connection with Options or Stock Awards granted pursuant to this Plan shall:

 

(i)                                     be approved by the Board or a duly authorized committee
composed solely of two or more non-employee directors; or

 

(ii)                                  be
approved or ratified, in compliance with section 14 of the Exchange Act,
by either: the affirmative vote of the holders of a majority of the securities
of the Company present, or represented, and entitled to vote at a meeting duly
held in accordance with the applicable laws of the state of incorporation of
the Company or, if allowed by applicable state law, the written consent of the
holders of a majority, or such greater percentage as may be required by
applicable laws of the state of incorporation of the Company, of the securities
of the Company entitled to vote; provided
that, such ratification occurs no later than the date of the next annual
meeting of shareholders.

 

All of the foregoing
restrictions and limitations are based on the governing provisions of the
Exchange Act and the rules and regulations promulgated thereunder as of the
date of adoption of this Plan. If at any time the governing provisions are
amended to permit an Option to be granted or exercised or Stock Award to be
granted pursuant to Rule 16b-3 or any amendment or successor rule of like tenor
without one or more of the foregoing restrictions or limitations, or the terms
of such restrictions or limitations are modified, the Board or a duly
authorized committee may award Options or Stock Awards to directors and officers,
and may modify outstanding Options or Stock Awards, in accordance with such
changes, all to the extent that such action by the Board or a duly authorized
committee does not disqualify the Options or Stock Awards from exemption under
the provisions of Rule 16b-3 or any amendment or successor rule of similar
tenor.

 

13.                                 Stock
Awards. The Board or a duly authorized committee may grant Stock Awards to
individuals eligible to participate in this Plan, in the amount, and subject to
the provisions determined by the Board or a duly authorized committee. The
Board or a duly authorized committee shall notify in writing each person
selected to receive a Stock Award hereunder as soon as practicable after he or
she has been so selected and shall inform such person of the number of shares
he or she is entitled to receive, the approximate date on which such shares
will be issued, and the Forfeiture Restrictions applicable to such shares. (For
purposes hereof, the term “Forfeiture Restrictions” shall mean any prohibitions
against sale or other transfer of shares of Stock granted under the Plan and
the obligation of the holder to forfeit his or her ownership of or right to
such shares and to surrender such shares to the Company on the occurrence of
certain conditions.) The Board or a duly authorized committee may, at its
discretion, require the payment in cash to the Company by the award recipient
of the par value of the Stock. The shares of Stock issued pursuant to a Stock
Award shall not be sold, exchanged, transferred, pledged, hypothecated, or
otherwise disposed of during such period or periods of time which the Board or
a duly authorized committee shall establish at the time of the grant of the
Stock Award. If a Stock Award is made to an employee of the Company or its
subsidiaries, the employee shall be obligated for no consideration other than
the amount, if any, of the par value paid in cash for such shares, to forfeit
and surrender such shares as he or shall have received under the Plan which are
then subject to

 

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Forfeiture Restrictions
to the Company if he or she is no longer an employee of the Company or its
subsidiaries for any reason; provided that, in
the event of termination of the employee’s employment by reason of death or
total and permanent disability, the Board or duly authorized committee, in its
sole discretion, may cancel the Forfeiture Restrictions. Certificates
representing shares subject to Forfeiture Restrictions shall be appropriately
legended as determined by the Board or a duly authorized committee to reflect
the Forfeiture Restrictions, and the Forfeiture Restrictions shall be binding
on any transferee of the shares.

 

14.                                 Assignment.
At the time of grant of an Option or Stock Award, the Board or duly authorized
Committee, in its sole discretion, may impose restrictions on the
transferability of such Option or Stock Award and provide that such Option
shall not be transferable other than by will or the laws of descent and
distribution or pursuant to a qualified domestic relations order as defined in
the Code and that, except as permitted by the foregoing, such Options or Stock
Awards, granted under the Plan and the rights and privileges thereby conferred
shall not be transferred, assigned, pledged, or hypothecated in any way
(whether by operation of law or otherwise), and shall not be subject to
execution, attachment, or similar process. On any attempt to transfer, assign,
pledge, hypothecate, or otherwise dispose of the Option or Stock Award, or of
any right or privilege conferred thereby, contrary to the provisions thereof,
or on the levy of any attachment or similar process on such rights and
privileges, the Option or Stock Award and such rights and privileges shall
immediately become null and void.

 

15.                                 Additional
Terms and Provisions of Awards. The Board or duly authorized committee
shall have the right to impose additional limitations on individual awards
under the Plan. For example, and without limiting the authority of the Board or
a duly authorized committee, an individual award may be conditioned on
continued employment for a specified period or may be voided based on the award
holder’s gross negligence in the performance of his or her duties, substantial
failure to meet written standards established by the Company for the
performance of his or her duties, criminal misconduct, or willful or gross
misconduct in the performance of his or her duties. In addition, the Board or a
duly authorized committee may establish additional rights in the holders of
individual awards at the time of grant. For example, and without limiting the
authority of the Board or a duly authorized committee, an individual award may
include the right to immediate payment of the value inherent in the award on
the occurrence of certain events such as a change in control of the Company,
all on the terms and conditions set forth in the award at the time of grant.
The Board or a duly authorized committee may, at the time of the grant of the
Option or Stock Award, establish any other terms, restrictions, or provisions
on the exercise of an Option or the holding of Stock subject to the Stock Award
as it deems appropriate. All such terms, restrictions, and provisions must be
set forth in writing at the time of grant in order to be effective.

 

16.                                 Dilution
or Other Adjustment. In the event that the number of shares of Stock of the
Company from time to time issued and outstanding is increased pursuant to a
stock split or a stock dividend, the number of shares of Stock then covered by
each outstanding Option granted hereunder shall be increased proportionately,
with no increase in the total purchase price of the shares then so covered, and
the number of shares of Stock subject to the Plan shall be increased by the
same proportion. Shares awarded under the terms of a Stock Award shall be
entitled to the same rights as other issued and outstanding shares of Stock,
whether or not then subject to Forfeiture Restrictions, although any additional
shares of Stock issued to the holder of a Stock Award shall be subject to the
same Forfeiture Restrictions as the Stock Award. In the event that the number
of shares of Stock of the Company from time to time issued and outstanding is
reduced by a combination or consolidation of shares, the number of shares of
Stock then covered by each outstanding Option granted hereunder shall be
reduced proportionately, with no reduction in the total purchase price of the
shares then so covered, and the number of shares of Stock subject to the Plan
shall be reduced by the same proportion. Shares awarded under a Stock Award
shall be treated as other issued and outstanding shares of Stock, whether or
not then subject to Forfeiture Restrictions. In the event that the Company
should transfer assets to another corporation and distribute the stock of such
other corporation without the surrender of Stock of the Company, and if such
distribution is not taxable as a dividend and no gain or loss is recognized by
reason of section 355 of the Code or any amendment or successor statute of
like tenor, then the total purchase price of the Stock then covered by each
outstanding Option shall be reduced by an amount that bears the same ratio to
the total purchase price then in effect as the market value of the stock
distributed in respect of a share of the Stock of the Company, immediately
following the distribution, bears to the aggregate of the market value at such
time of a share of the Stock of the Company plus the stock distributed in
respect thereof. Shares issued under a Stock Award shall be treated as issued
and outstanding whether or not subject to Forfeiture Restrictions, although any
stock of the other corporation to be distributed with respect to the shares
awarded under the Stock Award shall be subject to the Forfeiture Restrictions

 

7

 

then
applicable to such shares and may be held by the Company or otherwise subject
to restrictions on transfer until the expiration of the Forfeiture
Restrictions. In the event that the Company distributes the stock of a
subsidiary to its shareholders, makes a distribution of a major portion of its
assets, or otherwise distributes a significant portion of the value of its
issued and outstanding Stock to its shareholders, the number of shares then
subject to each outstanding Option and the Plan, or the exercise price of each
outstanding Option, may be adjusted in the reasonable discretion of the Board
or a duly authorized committee. Shares awarded under a Stock Award shall be
treated as issued and outstanding, whether or not subject to Forfeiture
Restrictions, although any Stock, assets, or other rights distributed shall be
subject to the Forfeiture Restrictions governing the shares awarded under the
Stock Award and, at the discretion of the Board or a duly authorized committee,
may be held by the Company or otherwise subject to restrictions on transfer by
the Company until the expiration of such Forfeiture Restrictions. All such
adjustments shall be made by the Board or duly authorized committee, whose
determination upon the same, absent demonstrable error, shall be final and
binding on all participants under the Plan. No fractional shares shall be
issued, and any fractional shares resulting from the computations pursuant to
this section shall be eliminated from the respective Option or Stock
Award. No adjustment shall be made for cash dividends, for the issuance of
additional shares of Stock for consideration approved by the Board, or for the
issuance to stockholders of rights to subscribe for additional Stock or other
securities.

 

17.                                 Options
or Stock Awards to Foreign Nationals. The Board or a duly authorized committee
may, in order to fulfill the purposes of this Plan and without amending the
Plan, grant Options or Stock Awards to foreign nationals or individuals
residing in foreign countries that contain provisions, restrictions, and
limitations different from those set forth in this Plan and the Options or
Stock Awards made to United States residents in order to recognize differences
among the countries in law, tax policy, and custom. Such grants shall be made
in an attempt to provide such individuals with essentially the same benefits as
contemplated by a grant to United States residents under the terms of this
Plan.

 

18.                                 Listing
and Registration of Shares. Unless otherwise expressly provided on the
granting of an award under this Plan, the Company shall have no obligation to
register any securities issued pursuant to this Plan or issuable on the
exercise of Options granted hereunder. Each award shall be subject to the
requirement that if at any time the Board or a duly authorized committee shall
determine, in its sole discretion, that it is necessary or desirable to list,
register, or qualify the shares covered thereby on any securities exchange or
under any state or federal law, or obtain the consent or approval of any
governmental agency or regulatory body as a condition of, or in connection
with, the granting of such award or the issuance or purchase of shares
thereunder, such award may not be made or exercised in whole or in part unless
and until such listing, registration, consent, or approval shall have been effected
or obtained free of any conditions not acceptable to the Board or a duly
authorized committee.

 

19.                                 Expiration
and Termination of the Plan. The Plan may be abandoned or terminated at any
time by the Board or a duly authorized committee except with respect to any
Options or Stock Awards then outstanding under the Plan. The Plan shall
otherwise terminate on the earlier of the date that is: (i) ten years after the
date the Plan is adopted by the Board; or (ii) ten
years after the date the Plan is approved by the shareholders of the Company.

 

20.                                 Form
of Awards. Awards granted under the Plan shall be represented by a written
agreement which shall be executed by the Company and which shall contain such
terms and conditions as may be determined by the Board or a duly authorized
committee and permitted under the terms of this Plan. Option agreements
evidencing Incentive Options shall contain such terms and conditions, among
others, as may be necessary in the opinion of the Board or a duly authorized
committee to qualify them as incentive stock options under section 422 of
the Code or any amendment or successor statute of like tenor.

 

21.                                 No
Right of Employment. Nothing contained in this Plan or any Option or Stock
Award shall be construed as conferring on a director, officer, or employee any
right to continue or remain as a director, officer, or employee of the Company
or its subsidiaries.

 

8

 

22.                                 Leaves
of Absence. The Board or duly authorized committee shall be entitled to
make such rules, regulations, and determinations as the Board or duly
authorized committee deems appropriate under the Plan in respect of any leave
of absence taken by the recipient of any Option or Stock Award. Without
limiting the generality of the foregoing, the Board or duly authorized
committee shall be entitled to determine (a) whether or not any such leave of
absence shall constitute a termination of employment within the meaning of the
Plan, and (b) the impact, if any, of any such leave of absence on any Option or
Stock Award under the Plan theretofore made to any recipient who takes such
leave of absence.

 

23.                                 Amendment
of the Plan. The Board or a duly authorized committee may modify and amend
the Plan in any respect; provided, however, that to the extent such amendment
or modification would cause the Plan to no longer comply with the applicable
provisions of the Code with respect to Incentive Options, such amendment or
modification shall also be approved by the shareholders of the Company. Subject
to the foregoing and, if the Company is subject to the provisions of 16(b) of
the Exchange Act, the limitations of Rule 16b-3 promulgated under the Exchange
Act or any amendment or successor rule of like tenor, the Plan shall be deemed
to be automatically amended as is necessary (i) with respect to the issuance of
Incentive Options, to maintain the Plan in compliance with the provisions of section 422
of the Code, and regulations promulgated thereunder from time to time, or any
amendment or successor statute thereto, and (ii) with respect to Options or
Stock Awards granted to officers and directors of the Company, to maintain the
awards made under the Plan in compliance with the provisions of Rule 16b-3
promulgated under the Exchange Act or any amendment or successor rule of like
tenor.

 

	
  DATE: February 18,
  2005

  	
  ATTEST:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Christopher
  Chambers

  	
   

  
	
   

  	
   

  	
  Christopher
  Chambers, Secretary

  

 

9

 

SECRETARY’S
CERTIFICATE

 

The undersigned, the duly
constituted and elected secretary of APOLLO RESOURCES INTERNATIONAL, INC.,
hereby certifies that a duly constituted meeting of the shareholders held on February 17,
2005, pursuant to notice and at which a quorum was present in accordance with
the requirements of law and the Company’s articles of incorporation and bylaws,
the foregoing APOLLO RESOURCES INTERNATIONAL, INC. 2005 Stock Option and Award
Plan was approved by the affirmative vote of the holders of a majority of the
shares of Common Stock in attendance, in person or by proxy, at such meeting.

 

	
  DATED this 17th day of
  February, 2005.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Christopher
  Chambers

  	
   

  
	
   

  	
   

  	
  Christopher
  Chambers, Secretary

  

 

10Exhibit 10.47

 

BONUS PLAN FOR
SENIOR MANAGEMENT OF

CERUS CORPORATION

 

April 1, 2003

 

Amended December 9, 2004

 

Amended January 18, 2005

 

This document sets forth the complete terms and conditions of
the Cash Bonus Plan for Senior Management of Cerus Corporation (“Cerus” or the “Company”)
(the “Senior Management Bonus Plan”). 
The Plan Year for this Senior Management Bonus Plan runs from January 1
each year to December 31 each year.

 

1.                                      Purposes of the Senior Management Bonus Plan

 

•                  Focus the
organization on the goals which are most critical to the Company’s success;

 

•                  Attract and
retain a high caliber of employee;

 

•                  Promote a
pay-for-results philosophy;

 

•                  Provide
competitive compensation opportunities;

 

•                  Allow
management judgment and flexibility; and

 

•                  Reinforce
the overall compensation strategy.

 

2.                                      Coverage

 

•                  This Senior
Management Bonus Plan covers the following bonus programs for senior management
at Cerus:  Signing Bonuses, Retention
Bonuses and Performance Bonuses.  Any
cash bonus which is not expressly designated as falling within a certain bonus
program will be considered a Performance Bonus.

 

3.                                      Eligibility

 

•                  Employees
must qualify as “Senior Management” of the Company to be eligible for bonuses
under the Senior Management Bonus Plan. 
The Company retains the sole discretion to determine which employees
qualify as Senior Management and will provide written notice to all eligible
employees of their status as a member of Senior Management.

 

•                  The only
employees who are eligible for Signing Bonuses or Retention Bonuses are those
employees who are expressly notified of such eligibility in a writing signed by
a Company officer.

 

•                  Senior
Management is not eligible for Recruiting Bonuses.

 

•                  All
full-time and part-time employees are eligible for Performance Bonuses.  Part-time employees are eligible to receive
pro-rata bonuses based on the number of hours they are regularly scheduled to
work.  New employees who are hired after
the Plan Year begins are

 

 

eligible to
participate on a pro-rata basis after completing three months of employment
(unless otherwise approved by the CEO). 
Eligible participants who are on a leave of absence for any portion of
the Plan Year are also eligible to participate on a pro-rata basis, provided
they work at least thirty days during the Plan Year.

 

•                  Employees
are only eligible for bonuses under this Senior Management Bonus Plan if they
sign and date this document and return it to the Company.

 

4.                                      Amount
and Calculation of Bonuses

 

•                  The
amount of any Signing Bonus or Retention Bonus that an eligible employee may
receive will be as set forth in the written document signed by a Cerus officer
notifying the employee of their eligibility for such a bonus.  Any terms and conditions set forth in that
document will also apply.

 

•                  Performance
Bonuses:

 

•                  Each
employee is eligible for a Performance Bonus in an amount not to exceed a
certain percentage of his or her annual base salary (the “Target Percentage”).  Each Plan Year, the CEO will determine the
Target Percentage for each employee, and submit these recommendations to the
Compensation Committee for approval.  For
each employee, the Target Percentage is multiplied by the annual base salary
for that employee, and that amount represents the maximum amount of a
Performance Bonus that the employee may receive.

 

•                  The actual
amount of the Performance Bonuses is based upon the Company’s achievement of
corporate milestones, the employee’s achievement of individual objectives and
the Company’s ability to pay.

 

•                  85% of an
employee’s target Performance Bonus will be based upon the attainment of
corporate milestones (the “Corporate Portion”) and 15% of an eligible employee’s
target Performance Bonus will be based upon the Company’s assessment of the
eligible employee’s individual performance (the “Individual Portion”).  The Compensation Committee may, in its sole
discretion, redistribute the relative percentage applicable to corporate and
individual objectives during the Plan Year.

 

•                  Whether the
Individual Portion is awarded, and in what amount, will be determined by the
CEO in the CEO’s sole discretion and will be based upon the CEO’s assessment of
overall individual performance and contribution by the eligible employee.

 

•                  Corporate
milestones are generally submitted to the Compensation Committee in writing by
the CEO for approval by the Compensation Committee before the end of the first
quarter of each year.  Corporate
milestones generally include measurable, specific results to be accomplished
within a stated quarter.

 

•                  The
Corporate Portion will be calculated as follows (unless otherwise approved by
the Compensation Committee):

 

•                  If less
than 50% of the corporate milestones are met, then no portion of the Corporate
Portion will qualify for payment.

 

 

•                  If between
50% and 70% of the corporate milestones are met, then 80% of the Corporate
Portion will qualify for payment.

•                  If more
than 70 % of the corporate milestones are met, then 100% of the Corporate
Portion will qualify for payment.

 

The Compensation Committee will determine, in its sole
discretion, whether and what percentage of the corporate milestones are met.

 

•                  If a
corporate milestone is not met during or before the end of the quarter in which
it is due to be completed, then the potential bonus pool amount attributable to
that milestone will be discounted as follows (unless otherwise approved by the
Compensation Committee):  only 50% of the
potential bonus pool amount for a milestone will be provided if the milestone
is achieved one quarter late, and no bonus pool amount will be provided if the
milestone is achieved more than one quarter late.

 

•                  The Company
determines the actual amount of Performance Bonuses based on the above criteria
every January for the preceding year. 
Once the amount of the Performance Bonus (if any) is determined, 70% of
the Performance Bonus will be awarded in cash and 30% will be awarded in the
form of restricted stock.  The number of
restricted stock shares that are awarded will depend on the share price on the
date the shares are granted, which will generally be the date on which bonus
amounts are determined, unless the Board decides otherwise.

 

•                  Any
restricted stock granted as a Performance Bonus will be subject to a vesting
schedule whereby 1/3 vests on the first year anniversary of grant, 1/3 vests on
the second year anniversary of grant, and 1/3 vests on the third year
anniversary of grant, subject to the employee’s continued service with the
Company.  Vested shares cannot be sold,
transferred or otherwise disposed of until the entire grant is vested (or if
the employee leaves prior to full vesting, until such time as the entire grant
would have vested if the employee had remained employed).  The terms and conditions of any such grants
will governed entirely by the applicable plan documents and restricted stock
agreement.

 

5.                                      Payment of Bonuses

 

•                  No bonus is
earned until it is required to be paid under this Senior Management Bonus
Plan.  Therefore, in the event an
employee’s employment is terminated (either by the Company or by the employee,
whether voluntarily or involuntarily) before a bonus is paid, then the employee
will not have earned that bonus, and will not be entitled to any portion of
that bonus.

 

•                  Signing
Bonuses are paid on the first payday following the employee’s completion of the
required period of active, full-time employment stated in the employee’s offer
letter.  If the employee does not
complete the required period of employment, or is not in good standing with the
Company as of the date the Signing Bonus otherwise would be payable, then the
employee will not have earned the Signing Bonus and no Signing Bonus will be
paid.

 

•                  Retention
Bonuses are paid on the first payday following the retention date specified in
the employee’s Retention Bonus Memorandum provided that the employee remains an
active full-time employee of the Company from the date of such memorandum
through the Retention Date.

 

 

•                  The cash
portion of any Performance Bonus is paid in the January following the end of
the Plan Year.  Similarly, the stock
portion of any Performance Bonus is awarded in the January following the end of
the Plan Year.  An eligible employee must
be actively employed by the Company in good standing on the day the bonus is
paid, or the stock is granted, in order to receive the Performance Bonus,
unless otherwise approved in advance by the Compensation Committee.

 

6.                                      Bonuses Disputes

 

•                  A Bonus
Review Board will be established to review and decide any disputes arising
under this Senior Management Bonus Plan. 
It shall consist of the Company’s Chief Executive Officer and Vice
President of Administration.  Any
employee with an issue related to this Senior Management Bonus Plan shall
provide a written request for review to Human Resources who, in turn, shall convene
the Board to resolve the issue.  All
decisions of the Bonus Review Board are final and binding.

 

7.                                      Legal and Ethical Standards

 

•                  No employee
shall attempt to earn a bonus by engaging in any conduct which violates any
anti-trust laws, other laws, or the Company’s ethical standards, policies or
practices.

 

•                  No employee
shall pay, offer to pay, assign or give any part of his or her bonus,
compensation, or anything else of value to any agent, customer, supplier or
representative of any customer or supplier, or to any other person, as an inducement
or reward for direct or indirect assistance in earning a bonus.

 

•                  Any
infraction of this Senior Management Bonus Plan, or of recognized ethical
standards, will subject the employee to disciplinary action up to and including
termination of employment and revocation of any bonuses under this Senior
Management Bonus Plan to which the employee otherwise would be entitled.

 

8.                                      Miscellaneous

 

•                  Nothing in
this Senior Management Bonus Plan is intended to alter the at-will nature of
employment with the Company, that is, the employee’s right or the Company’s
right to terminate the employee’s employment at will, at any time with or
without cause or advance notice.  In
addition, acceptance of this Senior Management Bonus Plan shall not be
construed to imply a guarantee of employment for any specified period of time.

 

•                  This Senior
Management Bonus Plan contains the entire agreement between the Company and its
employees on this subject, and supercedes all prior bonus compensation plans or
programs of the Company and all other previous oral or written statements
regarding any such bonus compensation programs or plans.

 

•                  Cerus
reserves the right to modify any of the provisions of this Senior Management
Bonus Plan in its sole discretion at any time with 10 days’ written notice to
eligible employees; provided, however, that this Senior Management Bonus Plan may
not be modified or amended except in a writing signed by a Company
officer and upon approval by the Company’s Compensation Committee.

 

 

•                  No bonus
amounts are guaranteed and all bonuses must be earned in accordance with the
terms of this Senior Management Bonus Plan. 
The Company will make all determinations under the Senior Management
Bonus Plan within its sole discretion, including but not limited to:  whether a Performance Bonus has been earned
and the amount of any Performance Bonus; and whether an employee is in good
standing.

 

•                  The
contents of this Senior Management Bonus Plan are Company confidential.

 

•                  This Senior
Management Bonus Plan shall be governed by and construed under the laws of the
State of California.

 

*   *   *

 

I have read and understand the provisions of
this Bonus Plan and hereby accept its terms.

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Employee Name (Printed)

  	
   

  	
  Employee Signature

  	
   

  	
  Date

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