Document:

Exhibit 10.24

 

SILICON GRAPHICS, INC.

CONSULTING AGREEMENT

 

This CONSULTING AGREEMENT is
made and entered into as of June 1, 2002, by and between Arthur L. Money,
a                            organized
under the laws of                             
(“Consultant”), having a place of business at 210 W. Alexandria Ave.,
Alexandria, VA 22302 and Silicon Graphics, Inc., a Delaware corporation
(“SGI”), having a place of business at 1600 Amphitheatre Parkway, Mountain
View, CA 94043-1351.

 

WHEREAS, Consultant is in
the business of providing consulting services; and

 

WHEREAS, SGI desires
Consultant to provide its consulting services to SGI, and Consultant desires to
provide such services to SGI.

 

NOW, THEREFORE, the parties
hereto agree as follows:

 

1.0. DEFINITIONS.

        1.1. “Agreement”
means this Consulting Agreement.

 

        1.2. “Confidential
Information” means any information of SGI, including, but not
limited to that regarding SGI’s business, customers, employees, marketing,
operations, technology, products and the like, which should reasonably be
understood to be non-public, proprietary and/or confidential in nature.

 

        1.3. “Consultant”
means the individual or independent business entity identified above and,
individually and collectively, the agents, employees, officers, partners and
principals of such individual or business entity.

 

        1.4. “Licensed Rights”
means any preexisting intellectual property rights owned and/or licensable by
Consultant, its employees or any third party that are required for SGI to
exercise its rights in the Work Product or benefit from Services.

 

        1.5. “Services”
means the services to be performed by Consultant hereunder, which shall be
described on Exhibit A hereto.

 

        1.6. “Work Product”
means any and all concepts, data, designs, ideas, information, inventions,
know-how, processes, techniques, and works of authorship or the like developed
or created by Consultant during the course of performing Services, regardless
of the form of embodiment. Work Product shall (i) include all copyrights, patents,
trademarks, trade secrets or other intellectual property rights associated
therewith, and (ii) in the case of copyrights, be considered (to the extent
permitted by law) works made for hire within the meaning of the Copyright Act
(17 U.S.C. § 101 et seq.). Work Product does not and is not intended to include
off the shelf training materials or training products developed by a trainer or
training company for group or individual learning, regardless of whether the
materials or product are modified for use at SGI.

 

2.0. INDEPENDENT CONTRACTOR STATUS.  The parties acknowledge and agree that
Consultant is an independent contractor and not an employee, agent, joint
venturer or partner of SGI. Consultant acknowledges and agrees that, as an
independent contractor, Consultant will not be entitled to (i) make a claim for
unemployment, worker’s compensation or disability, or (ii) receive any
vacation, health, retirement or other benefits, pursuant to this Agreement or
Consultant’s relationship with SGI. SGI will not make state or federal
unemployment insurance contributions on behalf of Consultant, or withhold FICA
(Social Security) contributions or state and federal income taxes from its
payments to Consultant. Consultant agrees that it shall make such contributions
and withhold such taxes for any of its employees performing Services.
Consultant’s Federal taxpayer identification number is ###-##-#### and local
business license/permit number is N/A - pending.

 

3.0. PERFORMANCE OF SERVICES.

 

        3.1. Services;
Progress Reports. Consultant agrees to provide the Services to SGI, and to
promptly deliver to SGI any Work Product resulting from the performance of
Services. Consultant will report its progress on its performance of Services to
SGI at the time and in the manner reasonably requested by SGI.

 

 

1

 

        3.2. Method of Performing and Scheduling of Services.
Consultant will determine the general method, details and means of performing
the Services, provided that Consultant shall strictly observe any SGI policies
or procedures applicable to the workplace if using the premises and/or
equipment of SGI. Consultant will use its best efforts to complete the Services
in accordance with the schedule set forth on Exhibit A.

 

        3.3. Changes in Scope of Work. SGI shall have the
right to change the scope of the Services, if, (i) such change is reasonably
acceptable to Consultant; and (ii) the parties mutually agree on the terms
applicable to any such change, including changes to Consultant's compensation
(if any), which shall be set forth in a signed, written amendment to this
Agreement.

 

4.0. COMPENSATION; INVOICES AND PAYMENT.

 

        4.1. Compensation and Expenses. SGI will pay the
applicable amount(s) set forth on Exhibit A to Consultant following
Consultant's completion and delivery, and SGI's acceptance of, the Services and
Work Product. Consultant shall be responsible for all costs and expenses
incidental to its performance of the Services, except as otherwise expressly
set forth on Exhibit A.

 

        4.2. Invoices and Payment. Consultant shall submit
invoices to SGI at least every thirty (30) days, but not more often than weekly
(once every five (5) working days), together with sufficiently detailed
information for SGI to verify all invoice items. SGI will pay Consultant net
thirty (30) days after SGI's receipt of Consultant's invoice or acceptance of
Services and/or Work Product, whichever is later. SGI will not be liable for
and will not pay any invoice that Consultant submits to SGI more than ninety
(90) days after Consultant performed and SGI accepted the associated Services.

 

5.0. CONFIDENTIAL INFORMATION.

 

        5.1. Confidential Information. Consultant shall
maintain in strict confidence all Confidential Information that Consultant
receives in the course of providing Services or otherwise in connection with
its relationship with SGI, and shall use Confidential Information only for the
specific purposes of performing Consultant's obligations hereunder, and to
comply in all respects with federal securities and other applicable laws with
respect to Confidential Information.

 

        5.2. Exclusions. The restrictions in Section 5.1 above
shall not apply to information that Consultant can clearly show (i) was already
lawfully known to Consultant; (ii) was independently developed by Consultant;
(iii) becomes rightfully known to Consultant from another source, without
restriction on subsequent disclosure or use; or (iv) is or becomes part of the
public domain through no wrongful act of Consultant.

 

6.0. OWNERSHIP OF WORK PRODUCT; LICENSED AND RESIDUAL RIGHTS.

 

        6.1. Ownership
of Work Product. Consultant agrees that, in consideration for SGI's payment
to Consultant hereunder, Consultant agrees to assign on an exclusive basis all
of Consultant's right, title and interest in and to the Work Product to SGI.
Accordingly, Consultant agrees that it shall (i) not use any Work Product for
the benefit of any party other than SGI, (ii) execute an assignment agreement
in the form attached hereto as Exhibit B on completion of Services, and (iii)
perform such other acts (including, but not limited to, cooperating with and
assisting SGI in the protection and enforcement of SGI's rights in the Work
Product, by adjudication or otherwise) and execute such other documents and
instruments as SGI may now or hereafter deem reasonably necessary or desirable
to evidence the transfer of sole ownership of all Work Product to SGI. If, by
operation of law, Consultant is deemed to retain any rights in and to any
intellectual property created hereunder, Consultant, to the extent that any
such rights conflict with any assignment of rights made by Consultant to SGI
hereunder, hereby waives all such rights.

 

        6.2. Licensed Rights. To the extent Licensed Rights
are required under this Agreement, Consultant grants or will cause to be
granted to SGI before the expiration of the term hereof a fully-paid,
irrevocable, worldwide, non-exclusive license and right to make, have made,
sell, possess, use, disclose, reproduce, prepare derivative works based on, distribute,
perform and display works, products or the like that incorporate or are based
on, in whole or in part, Licensed

 

2

 

Rights, Consultant
represents that there shall be no Licensed Rights required hereunder unless
specifically noted and described on Exhibit A.

 

        6.3. Residual Rights of Consultant. Notwithstanding
anything to the contrary herein, Consultant shall be free to use its general
skills, know-how and expertise in the course of providing its services to
others, provided that Consultant shall not specifically disclose any
Confidential Information and/or provide Work Product to any third party in so
doing.

 

7.0. WARRANTIES.

 

        7.1. Warranties. Consultant represents and warrants to SGI
that:

 

                a. General.
Consultant has all requisite right and authority to enter into this Agreement,
and the performance of its obligations hereunder will not conflict with any of
its agreements with or obligations to any third party.

 

                b. Independent
Contractor. Consultant will establish and maintain its status as an
independent contractor by participating in SGI's independent contractor
evaluation and scoring process from time to time as specified by SGI.

 

                c. Performance of
Services. Consultant will perform all Services in a good and
workmanlike manner, in accordance with the best practices of Consultant's
industry, and the Services and Work Product will conform to the applicable
specification and/or statement of work set forth herein.

 

                d. Year 2000
Compliance. To the extent that Work Product, Licensed Rights and any
other deliverable items hereunder are comprised of computer hardware and/or
software, such items will use a four (4) digit representation of the year and
process (including, without limitation, inputting, outputting, retrieving and
storing) without error information and/or data that includes or refers to dates
and/or time on any day in any year before, during, and after the twenty-first
century, including any leap day or year.

 

                e. Intellectual
Property Rights. The Work Product, Licensed Material and any
associated deliverables shall not violate any patent, copyright, trademark,
trade secret or other intellectual property right of any third party.

 

        7.2. Warranty Exclusions. THE FOREGOING WARRANTIES ARE
EXCLUSIVE, AND CONSULTANT DISCLAIMS ALL OTHER WARRANTIES, EXPRESS OR IPLIED,
INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE.

 

8.0. INSURANCE. Consultant shall obtain
and maintain in full force and effect during the term of this Agreement (i)
commercial general liability insurance (including contractual liability
coverage) with coverage limits of not less than One Million Dollars
($1,000,000) per occurrence, naming SGI as an additional insured thereunder, (ii)
auto liability insurance with coverage limits of not less than One Million
Dollars ($1,000,000) per occurrence, naming SGI as an additional insured
thereunder, and (iii) worker's compensation insurance as required by law. At
the time of execution of this Agreement, Consultant shall provide SGI with a
certificate of insurance evidencing the insurance coverages required under this
Section 8. The insurance companies now or hereafter issuing the foregoing
insurance policies shall be reasonably acceptable to SGI. Any modification,
renewal, replacement or cancellation of such insurance coverages shall require
at least thirty (30) days prior written notice to SGI.

 

9.0. INDEMNIFICATION. Consultant shall
indemnify, defend and hold SGI harmless from and against any and all third
party claims, suits, proceedings, damages, costs, liabilities and expenses
(including, without limitation, reasonable attorneys' fees) arising from the
negligence or willful misconduct of Consultant in connection with Consultant's
performance of Services or relationship with SGI hereunder. The foregoing
indemnification shall also apply to damage or loss to the property of SGI
arising from the actions or inactions of Consultant's employees or agents,
whether in the course of their employment or not, including but not limited to
acts of theft, vandalism or the like.

 

10.0. TERM; TERMINATION.

 

        10.1. Term. This Agreement will become effective on
the date first set forth above and will continue in effect through the earlier
of the completion of the Services and delivery of the Work

 

3

 

Product, or the completion date set forth on
Exhibit A, unless terminated earlier in accordance with this Section 10.

 

10.2. Termination of
Services and/or Agreement for Convenience by SGI. SGI may terminate this
Agreement and/or all or any portion of the Services by giving written notice to
Consultant.  On receipt of such notice,
Consultant shall cease providing Services, advise SGI of the extent to which
Consultant has completed, and collect and deliver to SGI whatever Work Product
then exists, regardless of the form of embodiment, in the manner requested by
SGI.  After SGI receives and accepts
Consultant’s detailed statement of any termination-related expenses and costs
incurred by Consultant, SGI shall make a final settlement payment to Consultant
for all work performed through the date of such termination within thirty (30)
days.

 

10.3. Termination of
Agreement for Default. If a party fails to cure any breach of its obligations
hereunder within ten (10) days after its receipt of written notice thereof from
the other party, then the other party may terminate this Agreement at any time
thereafter by providing the defaulting party with written notice of
termination.

 

10.4. Delivery Of
Materials Upon Termination. Consultant agrees, covenants and promises that,
in the event of termination or expiration of this Agreement for any reason,
Consultant will promptly and without request surrender and deliver to SGI all
materials containing, embodying or otherwise evidencing any Confidential
Information, regardless of whether any such item or the information therein was
prepared, produced or authored by Consultant, except that Consultant may retain
a copy of this Agreement for its records.

 

10.5. Survival.
Sections 5,6,7,10.5,11.1,11.2 and 11.8 hereof shall survive the expiration of
earlier termination of this Agreement.

 

11.0.
EXPORT CONTROL REGULATIONS AND DEEMED EXPORTS

 

11.1. Consultant will not
directly or indirectly transmit, by way of transshipment, export, re-export
diversion or otherwise, any Work Product or Confidential Information to any
destination or location outside the United States except as authorized by SGI
and in accordance with the U.S. export control laws and regulations.

 

11.2. Consultant
acknowledges that the export control laws may apply to the disclosure or
release of certain technology and software to a foreign national located in the
United States, and that Consultant will not release to any unprotected foreign
national any Work Product or Confidential Information except as authorized by
SGI and in accordance with U.S. export control laws and regulations.

 

11.3. In order to comply
with U.S. export control laws and regulations, Consultant agrees that it will
not assign any unprotected foreign national to work on SGI projects unless
Consultant has: (i) identified the unprotected foreign national to SGI; (ii)
provided SGI with all information necessary for SGI to make an export licensing
determination; and, (3) has received from SGI permission to assign such
unprotected foreign national to SGI’s work. “Unprotected foreign national”
shall mean a person who is not a protected individual under the immigration and
Naturalization Act ("INA") (8 U.S.C. sec. 1324b(a)(3)), Protected
individuals generally include U.S. citizens, U.S. nationals, lawful permanent
residents, lawful temporary residents, refugees and asylees. Possession of a
valid work visa does not necessarily confer protected individual status on an
individual.

 

12.0.
GENERAL.

 

12.1. Resolution of
Disputes.  The parties agree that
they will make good faith efforts to settle any dispute, claim or controversy
arising out of or relating to this Agreement by discussion, negotiation and/or
mediation.

 

12.2. Governing Law;
Venue, Waiver of Jury Trial.  This
Agreement shall be governed by and interpreted in accordance with the laws of
the State of California, excluding its choice of law rules.  Any adjudicated dispute regarding the
interpretation or validity of or otherwise arising out of this Agreement, or
relating to Services provided under this Agreement, shall be subject to the
exclusive jurisdiction of the California state courts in and for Santa Clara,
County, California (or, if there is federal jurisdiction, the U.S. District
Court for the Northern District of California), and SGI and Consultant agree to
submit to the personal and exclusive jurisdiction and venue of

 

4

 

these courts.  The parties hereto expressly waive any right they have to a jury
trial and agree that any court proceeding under this Agreement shall be tried
by a judge without a jury.

 

12.3. Non-exclusive
Relationship.  This Agreement is
non-exclusive.  Consultant shall have
the right to perform work for others during the term of this Agreement.  SGI may cause similar work to be performed
by its own personnel or other contractors or consultants during the term of
this Agreement.

 

12.4. Record Keeping.  Consultant agrees to keep records regarding
its performance of Services and invoices to SGI for a period of at least three
(3) years after the expiration or termination of this Agreement, and that it
shall produce such records for inspection and audit by SGI on SGI’s written
request.

 

12.5. Representation by
Counsel.  Consultant herby certifies
and represents that it has been, or had the opportunity to be, represented by
counsel in the negotiation of this Agreement.

 

12.6. Assignment.  No portion of this Agreement or any of
Consultant’s rights (including, without limitation, the right to payment
hereunder) duties or obligations hereunder may be assigned and/or delegated by
Consultant.

 

12.7. Modifications.  Any modifications of this Agreement shall be
in writing and signed by both parties.

 

12.8. Complete Agreement.  This Agreement, including all attachments
hereto, constitutes the complete and exclusive statement of the agreement
between SGI and Consultant, and it supersedes all proposals, oral or written,
and all other communications between SGI and Consultant relating to the subject
matter of this Agreement.

 

 

 

	
  SILICON GRAPHICS, INC.

  	
   

  	
  CONSULTANT

  
	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
  By: 

  	
  /s/ LANG CRAIGHILL

  	
   

  	
  By: 

  	
  /s/ ARTHUR L. MONEY

  	 

	
  LANG CRAIGHILL

  	
   

  	
  ARTHUR L. MONEY

  	 

	
  NAME (PRINT OR TYPE)

  	
   

  	
  NAME (PRINT OR TYPE)

  	 

	
   

  	
   

  	
   

  	 

	
  Sr. Director, SGI Federal

  	
   

  	
  —

  	 

	
  TITLE

  	
   

  	
  TITLE

  	 

	
  May
  30, 2002

  	
   

  	
  May
  30, 2002

  
	
  DATE

  	
   

  	
  DATE

  	 

							

 

 

5

 

 

EXHIBIT A

DESCRIPTION OF SERVICES, WORK PRODUCT, AND COMPENSATION

 

 

	
  Item #

  	
   

  	
  Description
  of Services and Work Product

  	
   

  	
  Completion

  Date

  	
   

  	
  Payment on

  Completion

  (if any)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Review of SGI DOD &
  Intelligence programs

  	
   

  	
  6/1/02

  	
   

  	
  $3000

  	
   

  
	
   

  	
   

  	
  Review of SGI core
  capabilities & technologies

  	
   

  	
  6/15/02

  	
   

  	
  $3000

  	
   

  
	
   

  	
   

  	
  Provide overview of DOD
  C4I initiatives part 1

  	
   

  	
  7/5/02

  	
   

  	
  $3000

  	
   

  
	
   

  	
   

  	
  Provide overview of DOD
  C4I initiatives part 2

  	
   

  	
  7/20/02

  	
   

  	
  $3000

  	
   

  
	
   

  	
   

  	
  Provide info on current
  Administration directions

  	
   

  	
  8/5/02

  	
   

  	
  $3000

  	
   

  
	
   

  	
   

  	
  Review of key technology
  issues in DOD

  	
   

  	
  8/20/02

  	
   

  	
  $3000

  	
   

  
	
   

  	
   

  	
  Review of key technology
  issues in Intel Community

  	
   

  	
  9/5/02

  	
   

  	
  $3000

  	
   

  
	
   

  	
   

  	
  Evaluate SGI's strategies
  concerning DISA part 1

  	
   

  	
  9/20/02

  	
   

  	
  $3000

  	
   

  
	
   

  	
   

  	
  Evaluate SGI's strategies
  concerning DISA part 2

  	
   

  	
  10/6/02

  	
   

  	
  $3000

  	
   

  
	
   

  	
   

  	
  Evaluate SGI's strategy in
  C4I visualization

  	
   

  	
  10/25/02

  	
   

  	
  $3000

  	
   

  
	
   

  	
   

  	
  Review SGI SWC CRADA

  	
   

  	
  11/6/02

  	
   

  	
  $3000

  	
   

  
	
   

  	
   

  	
  Review SGI USAF &
  Space program efforts (SBIRS)

  	
   

  	
  11/25/02

  	
   

  	
  $3000

  	
   

  
	
   

  	
   

  	
  Provide Pentagon
  Leadership overview

  	
   

  	
  12/8/02

  	
   

  	
  $3000

  	
   

  
	
   

  	
   

  	
  Review DARPA initiatives

  	
   

  	
  12/30/02

  	
   

  	
  $3000

  	
   

  
	
   

  	
   

  	
  Evaluate SGI Hill Agenda
  items for FY 2003

  	
   

  	
  1/10/03

  	
   

  	
  $3000

  	
   

  
	
   

  	
   

  	
  Review technology
  leadership in DOD C4I

  	
   

  	
  1/25/03

  	
   

  	
  $3000

  	
   

  
	
   

  	
   

  	
  Establish &
  participate in executive meeting

  	
   

  	
  2/15/03

  	
   

  	
  $3000

  	
   

  
	
   

  	
   

  	
     With the Sr. Mgt. of Key Systems Integrators

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
     Such as Boeing, Lockheed Martin, Raytheon, TRW, Etc.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Additional work products
  will be added by 12/31/01

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Mileage, parking, and meal
  expenses will be reimbursed. Mileage will be reimbursed at a rate of $.346
  per mile.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

Statement of Work or Project Description/Quotation
of Consultant Attached:    Yes                No    ü      

 

 

 

	
  /s/ ARTHUR L. MONEY

  	
  /

  	
  May 30, 2002

  
	
  Consultant (by/date)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ LANG CRAIGHILL

  	
  /

  	
  May 30, 2002

  
	
  SGI (by/date)

  	
   

  

 

 

6

 

EXHIBIT B

ASSIGNMENT OF INTELLECTUAL PROPERTY RIGHTS

 

[NOT APPLICABLE TO PROVIDERS OF OFF THE SHELF

TRAINING MATERIALS OR TRAINING PRODUCTS]

 

This ASSIGNMENT OF INTELLECTUAL PROPERTY
RIGHTS ("Assignment") is made and entered into this 1 day of June
2001, by and between Mr. Arthur L. Money ("Consultant") and Silicon
Graphics, Inc. ("SGI").

 

Consultant and SGI have entered into a
Consulting Agreement (the "Agreement") of even date herewith pursuant
to which Consultant has agreed to provide Services and/or create certain Work
Product for SGI. Unless otherwise defined herein, the defined terms used in
this Assignment shall have the same meanings as set forth in the Agreement.

 

1.0.
DESCRIPTION OF WORK PRODUCT.  Work Product
consists of and is described as:  DOD
C4I related efforts, as outlined in Exhibit A.

 

2.0.
ASSIGNMENT AND TRANSFER OF INTELLECTUAL PROPERTY RIGHTS. In
consideration of SGI's obligation to pay Consultant the compensation described
on Exhibit A to the Agreement, Consultant hereby grants, assigns, conveys and
transfers, and agrees to grant, assign, convey and transfer from time to time,
on an exclusive basis, to SGI all of Consultant's right, title and interest in
and to all Work Product now or hereafter created or developed by Consultant
during the course of performing the Services, without the necessity of further
consideration. This Assignment shall be operative with respect to all
intellectual property rights in and to all Work Product, including, without
limitation, (i) all copyrights worldwide, including all rights of registration
and publication, rights to create derivative works, and all other rights
incident to copyright ownership, for the residue now unexpired of the present
term of any and all such copyrights and any term thereafter during which the
Work Product shall be entitled to copyright, and (ii) all trade secrets,
inventions, know-how, ideas and confidential information embodied or reflected
in Work Product, for the longest period of protection accorded to such
interests under applicable law. This Assignment shall be binding upon and inure
to the benefit of the parties hereto and their respective successors, assigns
and legal representatives.

 

 

	
  /s/ ARTHUR L, MONEY

  	
  /

  	
  May 30, 2002

  
	
  Consultant (by/date)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ LANG CRAIGHILL

  	
  /

  	
  May 30, 2002

  
	
  SGI (by/date)

  	
   

  

 

 

7<PAGE>

                                                                     EXHIBIT 4.1

                                Chase Corporation
                        2001 Senior Management Stock Plan

     This 2001 Senior Management Stock Plan (the "Plan") provides for ownership
of Common Stock, $.10 par value (the "Stock") of Chase Corporation (the
"Company) by officers and employees who are designated by the Compensation
Committee as members of the Company's senior management so as to provide
additional incentives to promote the success of the Company through the grant of
Incentive and Nonstatutory Stock Options (as such terms are defined in
Section 3(a) below) (collectively, "Options") and Restricted Stock.

     1. Administration of the Plan.

     The administration of the Plan shall be under the general supervision of
the Compensation Committee of the Board of Directors of the Company (the
"Compensation Committee"). Within the limits of the Plan, the Directors or
Compensation Committee shall determine the individuals to whom, and the times at
which, Restricted Stock and Options shall be granted, type of Option to be
granted, the duration of each Option, the price and method of payment for each
Option, and the time or times within which (during its term) all or portions of
each Option may be exercised. The Compensation Committee may establish such
rules as it deems necessary for the proper administration of the Plan, make such
determinations and interpretations with respect to the Plan and Options or
Restricted Stock granted under it as may be necessary or desirable and include
such further provisions or conditions in Options or Restricted Stock granted
under the Plan as it deems advisable.

     2. Shares Subject to the Plan

     (a) Number and Type of Shares. The aggregate number of shares of Stock of
the Company that may be optioned or issued under the Plan is 750,000 shares. In
no event shall any person receive in any calendar year awards under the Plan for
more than 500,000 shares of Stock. In the event that the Compensation Committee
in its discretion determines that any stock dividend, split-up, combination or
reclassification of shares, recapitalization or other similar capital change
affects the Company's shares such that adjustment is required in order to
preserve benefits of the Plan or any Option or Restricted Stock granted under
the Plan, the maximum aggregate and kind of shares or securities of the Company
as to which Options or Restricted Stock may be granted under the Plan and as to
which Options then outstanding shall be exercisable, and the option price in the
case of Options, shall be appropriately adjusted by the Compensation Committee
(whose determination shall be conclusive) so that the proportionate number of
shares or other securities as to which Options or Restricted Stock may be
granted and the proportionate interest of holders of outstanding Options or
shares issued shall be maintained as before the occurrence of such event.

     (b) Effect of Certain Transactions. In the event of a consolidation or
merger of the Company with another corporation, or the sale or exchange of all
or substantially all of the assets of the Company, or a reorganization or
liquidation of the Company, each holder of an

<PAGE>

outstanding Option shall be entitled to receive upon exercise and payment in
accordance with the terms of the Option the same shares as he would have been
entitled to receive upon the occurrence of such event had he exercised the
Option immediately prior to such event; provided, however, that in lieu of the
foregoing the Board of Directors of the Company (the "Board") may upon written
notice to each holder provide that such Option shall terminate on a date not
less than 20 days after the date of such notice unless theretofore exercised. In
addition, prior to or after such an event, the Board may accelerate awards and
waive conditions and restrictions on any award to the extent it may determine
appropriate.

     (c) Reservation of Shares. The Company shall at all times while the Plan is
in force reserve such number of shares of Stock as will be sufficient to satisfy
the requirements of the Plan. Shares issued under the Plan may consist of
authorized but unissued shares or treasury shares.

     3. Grant of Options: Eligible Persons.

     (a) Types of Options. Options shall be granted under the Plan either as
incentive stock options ("Incentive Stock Options"), as defined in Section 422
of the internal Revenue Code of 1986, as amended (the "Code") or as Options
which do not meet the requirements of Section 422 ("Nonstatutory Stock
Options"). Options may be granted by the Directors, within the limits set forth
in Sections 1 and 2 of the Plan, to all employees of the Company or of any
parent corporation or subsidiary corporation of the Company as defined in
Sections 424(e) and (f), respectively, of the Code).

     (b) Date of Grant. The date of grant for each Option shall be the date on
which it is approved, or such later date as the Directors may specify. No
options shall be granted hereunder after ten years from the date on which the
Plan was approved by the Board.

     4. Form of Options.

     Options granted hereunder shall be evidenced by a writing delivered to the
optionee specifying the terms and conditions thereof and containing such other
terms and conditions not inconsistent with the provisions of the Plan as the
Compensation Committee considers necessary or advisable to achieve the purposes
of the Plan or comply with applicable tax and regulatory laws and accounting
principles. The form of such Options may vary among optionees.

     5. Option Price.

     In the case of Incentive Stock Options, the price at which shares may from
time to time be optioned shall be determined by the Compensation Committee,
provided that such price shall not be less than the fair market value of the
Stock on the date of granting as determined in good faith by the Compensation
Committee; and provided further that no Incentive Stock Option shall be granted
to any individual who is ineligible to be granted an Incentive Stock Option
because his ownership of stock of the Company or its parent or subsidiary
corporations exceeds the limitations set forth in Section 422(b)(6) unless such
option price is at least 110% of the fair market value of grant.

                                      -2-

<PAGE>

     In the case of Nonstatutory Stock Options, the price at which shares may
from time to time be optioned shall be determined by the Compensation Committee,
provided that unless the Option is granted in lieu of compensation, the exercise
price shall not be less than 85% of the fair market value on the date of grant
as determined in good faith by the Compensation Committee.

     The Compensation Committee may in its discretion permit the option price to
be paid in whole or in part by a note or in installments or with shares of Stock
or such other lawful consideration as the Compensation Committee may determine.

     6. Term of Option and Dates of Exercise.

     (a) Exercisability. The Compensation Committee shall determine the term of
all Options, the time or times that Options are exercisable and whether they are
exercisable in installments; provided, however, that the term of each
non-statutory stock option granted under the Plan shall not exceed a period of
ten years from the date of its grant, provided that no Incentive Stock Option
shall be granted to any individual who is ineligible to be granted such because
his ownership of stock of the Company or its parent or subsidiary corporations
exceeds the limitations set forth in Section 422(b)(6) of the Code unless the
term of his Incentive Stock Option does not exceed a period of five years from
the date of its grant. In the absence of such determination, the Option shall be
exercisable at any time or from time to time, in whole or in part, during a
period of ten years from the date of its grant, or in the case of an Incentive
Stock Option, the maximum term of such Option.

     (b) Effect of Disability, Death or Termination of Employment. The
Compensation Committee shall determine the effect on an Option of the
disability, death, retirement or other termination of employment of an optionee
and during the period which, the optionee's estate, legal representative, on
death may exercise rights thereunder. Any beneficiary on death shall be
designated by the optionee, in the manner determined by the Compensation
Committee, to exercise the rights of the optionee in the case of the optionee's
death.

     (c) Other Conditions. The Compensation Committee may impose such other
conditions with respect to the exercise of Options, including conditions
relating to applicable federal or state securities laws, as it considers
necessary or advisable.

     (d) Withholding. The optionee shall pay to the Company, or make provision
satisfactory to the Compensation Committee for payment of, any taxes required by
law to be withheld in respect of any Options under the Plan no later than the
date of the event creating the tax liability. In the Compensation Committee's
discretion, such tax obligations may be paid in whole or in part in shares of
Stock, including shares retained from the exercise of the Option creating the
tax obligation, valued at the fair market value of the Stock on the date of
delivery to the Company as determined in good faith by the Compensation
Committee. The Company and any parent corporation or subsidiary corporation of
the Company (as defined in Sections 424(e) and (f), respectively of the Code)
may, to the extent permitted by law, deduct any such tax obligations any kind
otherwise due to the optionee.

                                      -3-

<PAGE>

     (e) Amendment of Options. The Compensation Committee may amend, modify or
terminate any outstanding Option, including substituting therefore another
Option of the same or different type, changing the date of exercise or
realization and converting an Incentive Stock Option to a Nonstatutory Stock
Option, provided that the optionee's consent to such action shall be required
unless the Compensation Committee determines that the action, taking into
account any related action, would not materially and adversely affect the
optionee, and provided further that, notwithstanding the foregoing, the
Compensation Committee may not either amend any outstanding Option to reduce the
exercise price thereof or terminate an Option and substitute therefor another
Option having a lower per share exercise price.

     7. Non-transferability.

     No Option shall be transferable by the holder thereof other than by will or
the laws of decent and distribution, and shall be exercisable during the
holder's lifetime, only by the holder thereof; provided, however, that the
Compensation Committee may provide that an Option is transferable by the holder
thereof and exercisable by persons other than the holder thereof upon such terms
and conditions as the Compensation Committee shall determine.

     8. No Right to Employment.

     No persons shall have any claim or right to be granted an Option, and the
grant of an Option shall not be construed as giving an optionee the right to
continued employment. The Company expressly reserves the right at any time to
dismiss an optionee free from any liability or claim under the Plan, except as
specifically provided in the applicable Option.

     9. No Rights as a Shareholder.

     Subject to the provisions of the applicable Option, no optionee or any
person claiming through an optionee shall have any rights as a shareholder with
respect to any shares of stock to be distributed under the Plan until he or she
becomes the holder thereof.

     10. Restricted Stock.

     (a) Grant of Restricted Stock. The Compensation Committee may award
Restricted Stock and determine the purchase price, if any, therefor, the
duration of the Restricted Period (as defined below), the conditions under which
the Restricted Stock may be forfeited to or repurchased by the Company and any
other terms and conditions of the Restricted Stock. The Compensation Committee
may modify or waive any restrictions, terms and conditions with respect to any
Restricted Stock. Shares of Restricted Stock may be issued for whatever
consideration is determined by the Compensation Committee, subject to applicable
law. "Restricted Stock" means Stock awarded to a Participant under this Section
10 of the Plan pursuant to an award that entitles the Participant (as defined
below) to acquire Stock for a purchase price (which may be zero), subject to
certain conditions, including a Company right during a specified period or
periods to repurchase the Stock at its original purchase price (or to require
forfeiture of the Stock if the purchase price was zero) upon the termination of
the participant's employment. "Restricted Period" means the period of time
selected by the

                                      -4-

<PAGE>

Compensation Committee during which the shares of Restricted Stock are subject
to forfeiture and/or restrictions on transferability. "Participant" means an
individual who has been selected by the Compensation Committee to receive
Restricted Stock under the Plan.

     (b) Transferability. Shares of Restricted Stock may not be sold, assigned,
transferred, pledged or otherwise encumbered, except as permitted by the
Compensation Committee, during the Restricted Period.

     (c) Evidence of Award. Shares of Restricted Stock shall be evidenced in
such manner as the Compensation Committee may determine. Any certificates issued
in respect of shares of Restricted Stock shall be registered in the name of the
Participant and unless otherwise determined by the Compensation Committee,
deposited by the Participant, together with a stock power endorsed in blank,
with the Company. At the expiration of the Restricted Period, the Company shall
deliver the certificates and stock power to the Participant.

     (d) Shareholder Rights. A Participant shall have all the rights of a
shareholder with respect to Restricted Stock awarded, including voting and
dividend rights, unless otherwise provided in the written agreement setting
forth the terms and provisions applicable to the award of Restricted Stock.

     11. Amendment or Termination.

     The Board may amend or terminate the Plan at any time.

     12. Stockholder Approval.

     The Plan is subject to approval by the stockholders of the Company by the
affirmative vote of the holders of a majority of the shares of capital stock of
the Company entitled to vote thereon and present or represented at a meeting
duly held in accordance with the laws of the Commonwealth of Massachusetts, or
by any other action that would be given the same effect under the laws of such
jurisdiction, which action in either case shall be taken within twelve (12)
months from the date the Plan was adopted by the Board. In the event such
approval is not obtained, all Awards granted under the Plan shall be void and
without effect.

     13. Governing Law.

     The provisions of the Plan shall be governed by and interpreted in
accordance with the laws of the Commonwealth of Massachusetts.

                                      -5-

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