Document:

Unassociated Document

    Exhibit
      4.4

    

    FORM
      OF WARRANT AGREEMENT

     

    This
      Warrant Agreement (the “Agreement”)
      made
      as of _____, 2008, between Specialty Metals Group Indium Corp., a Delaware
      corporation, with offices at 103 Carneige Center, Suite 101, Princeton, New
      Jersey 08540 (the “Company”),
      and
      Continental Stock Transfer & Trust Company, a New York corporation, with
      offices at 17 Battery Place, New York, New York 10004 (the “Warrant
      Agent”).

     

    WHEREAS,
      the Company has undertaken a public offering (the “Public
      Offering”)
      of
      units of the Company (the “Units”),
      each
      Unit consisting of one share of common stock, par value $.001 per share, of
      the
      Company (the “Common
      Stock”)
      and
      one warrant exercisable for one share of Common Stock, and in connection
      therewith, has determined to issue and deliver (i) up to 12,650,000 Warrants
      (the “Public
      Warrants”)
      to the
      public investors and (ii) up to 550,000 Warrants to Maxim Group LLC
      (“Maxim”)
      or its
      designees (the “Representative’s
      Warrants”
and,
      together with the Public Warrants, the “Warrants”),
      in
      each case subject to adjustments as described herein;

     

    WHEREAS,
      the Company has filed, with the Securities and Exchange Commission (the
“Commission”),
      a
      registration statement, No. 333-________, on Form S-1 (the “Registration
      Statement”)
      for
      the registration, under the Securities Act of 1933, as amended (the
“Act”),
      of,
      among other securities, the Public Warrants and the Representative’s Warrants
      and the Common Stock issuable upon exercise of the Public Warrants and the
      Representative’s Warrants;

     

    WHEREAS,
      the Company desires the Warrant Agent to act on behalf of the Company, and
      the
      Warrant Agent is willing to so act, in connection with the issuance,
      registration, transfer, exchange, redemption, exercise and cancellation of
      the
      Warrants;

     

    WHEREAS,
      the Company desires to provide for the form and provisions of the Warrants,
      the
      terms upon which they shall be issued and exercised, and the respective rights,
      limitation of rights and immunities of the Company, the Warrant Agent and the
      holders of the Warrants; and

     

    WHEREAS,
      all acts and things have been done and performed which are necessary to make
      the
      Warrants, when executed on behalf of the Company and countersigned by or on
      behalf of the Warrant Agent, as provided herein, the legally valid and binding
      obligations of the Company, and to authorize the execution and delivery of
      this
      Agreement.

     

    NOW,
      THEREFORE, in consideration of the mutual agreements herein contained, the
      parties hereto agree as follows:

     

    1.           
      Appointment
      of Warrant Agent.
      The
      Company hereby appoints the Warrant Agent to act as agent for
      the
      Company for the Warrants, and the Warrant Agent hereby accepts such appointment
      and agrees to perform the same in accordance with the terms and conditions
      set
      forth in this Agreement.

     

    
      
        
        

      

      
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    2.           
      Warrants.

     

    2.1 Form
      of Warrant.
      Each
      Warrant shall be issued in registered form only, shall be in substantially
      the
      form of Warrant attached hereto as Exhibit
      A,
      the
      provisions of which are incorporated herein, and shall be signed by, or bear
      the
      facsimile signature of, (i) the Chairman of the Board, the Chief Executive
      Officer or the President, and (ii) the Treasurer, Secretary or Assistant
      Secretary of the Company, and shall bear a facsimile of the Company’s seal. In
      the event the person whose facsimile signature has been placed upon any Warrant
      shall have ceased to serve in the capacity in which such person signed the
      Warrant before such Warrant is issued, it may be issued with the same effect
      as
      if he or she had not ceased to be such at the date of issuance.

    

    2.2   Effect
      of Countersignature.
      Unless
      and until countersigned by the Warrant Agent pursuant to this Warrant Agreement,
      a Warrant shall be invalid and of no effect and may not be exercised by the
      holder thereof.

     

    2.3   Registration.

     

    2.3.1 Warrant
      Register.
      The
      Warrant Agent shall maintain books (“Warrant
      Register”),
      for
      the registration of the original issuance and registration of transfers of
      the
      Warrants. Upon the initial issuance of the Warrants, the Warrant Agent shall
      issue and register the Warrants in the names of the respective holders thereof
      in such denominations and otherwise in accordance with instructions delivered
      to
      the Warrant Agent by the Company.

     

    2.3.2  Registered
      Holder.
      Prior
      to due presentment for registration of transfer of any Warrant, the Company
      and
      the Warrant Agent may deem and treat the person in whose name such Warrant
      shall
      be registered upon the Warrant Register (“Registered
      Holder”),
      as
      the absolute owner of such Warrant and of each Warrant represented thereby
      (notwithstanding any notation of ownership or other writing on the warrant
      certificate made by anyone other than the Company or the Warrant Agent), for
      the
      purpose of any exercise thereof, and for all other purposes, and neither the
      Company nor the Warrant Agent shall be affected by any notice to the
      contrary.

     

    2.4   Detachability
      of Warrants.
      The
      securities comprising the Units may trade separately beginning on the
      90th
      day
      after the effective date of the registration statement unless Maxim determines
      that an earlier date is acceptable, based upon its assessment of the relative
      strengths of the securities markets and small capitalization companies in
      general and the trading pattern of, and demand for, our securities in
      particular. In no event will Maxim permit separate trading of the common stock
      and warrants until the business day following the earlier to occur of (i) the
      expiration or termination of the underwriters’ over-allotment option or (ii) its
      exercise in full (the “Detachment
      Date”).

    

    2.5 The
      Representative’s Warrants.
      The
      Representative’s Warrants shall have the same terms and be in the same form as
      the Public Warrants except (i) with respect to the Warrant Price as set forth
      below in Section 3.1 hereof and (ii) the Representative’s Warrants may be
      exercised on cashless basis. 

     

    
      
        
        

      

      
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    3.           
      Terms
      and Exercise of Warrants.

     

    3.1  Warrant
      Price.
      Each
      Public Warrant shall, when countersigned by the Warrant Agent, entitle the
      registered holder thereof, subject to the provisions of such Public Warrant
      and
      of this Agreement, to purchase from the Company the number of shares of Common
      Stock stated therein, at the price of $6.00 per whole share, subject to the
      adjustments provided in Section 4 hereof and in the last sentence of this
      Section 3.1. Each Representative’s Warrant shall, when countersigned by the
      Warrant Agent, entitle the registered holder thereof, subject to the provisions
      of such Representative’s Warrant and of this Agreement, to purchase from the
      Company the number of shares of Common Stock stated therein, at the price of
      $6.60 per whole share, subject to the adjustments provided in Section 4 hereof
      and in the last sentence of this Section 3.1. The term “Warrant
      Price”
as
      used
      in this Agreement refers to the price per share at which Common Stock may be
      purchased at the time a Warrant is exercised. The Company, in its sole
      discretion, may lower the Warrant Price at any time prior to the Expiration
      Date
      (as defined below); provided, however, that any change in the Warrant Price
      must
      apply equally to all of the Warrants, and provided further that any amendment
      to
      the term of the Representative’s Warrants shall be subject to any limitations
      and conditions that may be imposed by FINRA Corporate Finance Rule 2710, and
      provided further that any reduction in Warrant Price shall remain in effect
      for
      at least twenty (20) business days.

     

    3.2  Duration
      of Warrants.
      Except
      as set forth in this Section 3.2, a Warrant may be exercised only during the
      period (“Exercise
      Period”)
      commencing immediately upon the effectiveness of the Registration Statement,
      and
      terminating at 5:00 p.m., New York City time, on the earlier to occur of (i)
      _______, 2011 and (ii) the date fixed for redemption of the Warrants as provided
      in Section 6 of this Agreement (“Expiration
      Date”).
      Except with respect to the right to receive the Redemption Price (as set forth
      in Section 6 hereunder), each Warrant not exercised on or before the
      Expiration Date shall become void, and all rights thereunder and all rights
      in
      respect thereof under this Agreement shall cease at the close of business on
      the
      Expiration Date. The Company, in its sole discretion, may extend the duration
      of
      the Warrants by delaying the Expiration Date; provided, however, that any such
      extension of the duration of the Warrants shall apply equally to all of the
      Warrants, except that any amendment to the terms of the Representative’s
      Warrants shall be subject to any limitations and conditions that may be imposed
      by FINRA Corporate Finance Rule 2710. Should the Company wish to extend the
      Expiration Date of the Warrants, the Company shall provide at least twenty
      (20)
      days advance notice to the American Stock Exchange (or the principal trading
      market for the Warrants) of such extension. 

     

    Notwithstanding
      the foregoing, a Warrant can expire unexercised regardless of whether a
      registration statement is current under the Act with respect to the Common
      Stock
      issuable upon exercise of the Warrants.

    

    3.3   Exercise
      of Warrants.

     

    3.3.1 Payment.
      Subject
      to the provisions of the Warrant and this Warrant Agreement, a Warrant, when
      countersigned by the Warrant Agent, may be exercised by the registered holder
      thereof by surrendering it, at the office of the Warrant Agent, or at the office
      of its successor as Warrant Agent, in the Borough of Manhattan, City and State
      of New York, with the subscription form, as set forth in the Warrant, duly
      executed, and by paying in full, in lawful money of the United States, in cash,
      certified check or bank draft payable to the order of the Company (or as
      otherwise agreed to by the Company), the Warrant Price for each whole share
      of
      Common Stock as to which the Warrant is exercised and any and all applicable
      taxes due in connection with the exercise of the Warrant, the exchange of the
      Warrant for the Common Stock, and the issuance of the Common Stock.

     

    
      
        
        

      

      
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    3.3.2 Issuance
      of Certificates.
      As soon
      as practicable after the exercise of any Warrant and the clearance of the funds
      in payment of the Warrant Price, the Company shall issue to the registered
      holder of such Warrant a certificate or certificates representing the number
      of
      full shares of Common Stock to which he, she or it is entitled, registered
      in
      such name or names as may be directed by him, her or it, and, if such Warrant
      shall not have been exercised in full, a new countersigned Warrant for the
      number of shares as to which such Warrant shall not have been exercised.

    

    3.3.3 Limitations.
      Notwithstanding the foregoing, the Company shall not be obligated to deliver
      any
      shares of Common Stock pursuant to the exercise of a Warrant and shall have
      no
      obligation to honor any Warrant exercise unless a registration statement under
      the Act with respect to the shares of Common Stock underlying a Warrant is
      effective and a current Prospectus is on file with the Commission. In the event
      that a registration statement with respect to the shares of Common Stock
      underlying a Warrant is not effective under the Act or a current Prospectus
      in
      not on file with the Commission, the holder of such Warrant shall not be
      entitled to exercise such Warrant. Notwithstanding anything to the contrary
      in
      this Agreement, under no circumstances will the Company be required to net
      cash
      settle the exercise of the Warrants. Warrants may not be exercised by, or shares
      of Common Stock underlying the Warrants issued to, any registered holder in
      any
      jurisdictions in which such exercise or issuance would be unlawful. For the
      avoidance of doubt, as a result of this Section 3.3.3, any or all of the
      Warrants may expire unexercised. In
      no
      event shall the registered holder of a Warrant be entitled to receive any
      monetary damages if the shares of Common Stock underlying the Warrants have
      not
      been registered by the Company pursuant to an effective registration statement
      or if a current prospectus is not on file with the Commission, provided the
      Company has fulfilled its obligation under section 7.4 hereof to use its best
      efforts to effect such registration and ensure a current prospectus is on file
      with the Commission. 

     

    3.3.4  Valid
      Issuance.
      All
      shares of Common Stock issued upon the proper exercise of a Warrant in
      conformity with this Agreement shall be validly issued, fully paid and
      nonassessable.

     

    3.3.5   Date
      of Issuance.
      Each
      person or entity in whose name any such certificate for shares of Common Stock
      is issued shall, for all purposes, be deemed to have become the holder of record
      of such shares on the date on which the Warrant was surrendered and payment
      of
      the Warrant Price was made, irrespective of the date of delivery of such
      certificate, except that, if the date of such surrender and payment is a date
      when the stock transfer books of the Company are closed, such person shall
      be
      deemed to have become the holder of such shares at the close of business on
      the
      next succeeding date on which the stock transfer books are open.

     

    
      
        
        

      

      
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    4.   Adjustments.

     

    4.1  Stock
      Dividends - Split-Ups.
      If, at
      any time during the Exercise Period, and subject to the provisions of
      Section 4.6 below, the number of outstanding shares of Common Stock is
      increased by a stock dividend payable in shares of Common Stock, or by a
      split-up of shares of Common Stock, or other similar event, then, on the
      effective date of such stock dividend, split-up or similar event, the number
      of
      shares of Common Stock issuable on exercise of each Warrant shall be increased
      in proportion to such increase in outstanding shares of Common
      Stock.

    

    4.2 Extraordinary
      Dividends.
      If the
      Company, at any time during the Exercise Period, shall pay a dividend or make
      a
      distribution in cash, securities or other assets to the holders of Common Stock
      (or other shares of the Company’s capital stock into which the Warrants are
      convertible), other than (i) as described in Sections 4.1, 4.3 or 4.5, (ii)
      regular quarterly or other periodic dividends, (iii) in connection with the
      Company’s liquidation and the distribution of its assets (any such non-excluded
      event being referred to herein as an “Extraordinary
      Dividend”),
      then
      the Warrant Price shall be decreased, effective immediately after the effective
      date of such Extraordinary Dividend, by the amount of cash and/or the fair
      market value (as determined by the Company’s Board of Directors, in good faith)
      of any securities or other assets paid on each share of Common Stock in respect
      of such Extraordinary Dividend.

     

    4.3   Aggregation
      of Shares.
      If
      after the date hereof, and subject to the provisions of Section 4.6, the
      number of outstanding shares of Common Stock is decreased by a consolidation,
      combination, reverse stock split or reclassification of shares of Common Stock
      or other similar event, then, on the effective date of such consolidation,
      combination, reverse stock split, reclassification or similar event, the number
      of shares of Common Stock issuable on exercise of each Warrant shall be
      decreased in proportion to such decrease in outstanding shares of Common
      Stock.

     

    4.4  Adjustments
      in Exercise Price.
      Whenever the number of shares of Common Stock purchasable upon the exercise
      of
      the Warrants is adjusted, as provided in Sections 4.1, 4.2 and 4.3 above,
      the Warrant Price shall be adjusted (to the nearest cent) by multiplying such
      Warrant Price, immediately prior to such adjustment, by a fraction, (i) the
      numerator of which shall be the number of shares of Common Stock purchasable
      upon the exercise of the Warrants immediately prior to such adjustment, and
      (ii)
      the denominator of which shall be the number of shares of Common Stock so
      purchasable immediately thereafter.

     

    4.5  Replacement
      of Securities upon Reorganization, etc.
      In case
      of any reclassification or reorganization of the outstanding shares of Common
      Stock (other than a change covered by Sections 4.1, 4.2 or 4.3 hereof or
      one that solely affects the par value of such shares of Common Stock), or,
      in
      the case of any merger or consolidation of the Company with or into another
      corporation (other than a consolidation or merger in which the Company is the
      continuing corporation and that does not result in any reclassification or
      reorganization of the outstanding shares of Common Stock), or, in the case
      of
      any sale or conveyance to another corporation or entity of the assets or other
      property of the Company as an entirety or substantially as an entirety, in
      connection with which the Company is dissolved, the Warrant holders shall
      thereafter have the right to purchase and receive, upon the basis and upon
      the
      terms and conditions specified in the Warrants and in lieu of the shares of
      Common Stock of the Company immediately theretofore purchasable and receivable
      upon the exercise of the rights represented thereby, the kind and amount of
      shares of stock or other securities or property (including cash) receivable
      upon
      such reclassification, reorganization, merger or consolidation, or upon a
      dissolution following any such sale or transfer, that the Warrant holder would
      have received if such Warrant holder had exercised his, her or its Warrant(s)
      immediately prior to such event; and if any reclassification also results in
      a
      change in shares of Common Stock covered by Sections 4.1, 4.2 or 4.3, then
      such adjustment shall be made pursuant to Sections 4.1, 4.2, 4.3, 4.4 and
      this Section 4.5. The provisions of this Section 4.5 shall similarly
      apply to successive reclassifications, reorganizations, mergers or
      consolidations, sales or other transfers.

     

    
      
        
        

      

      
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    4.6   Notices
      of Changes in Warrant.
      Upon
      every adjustment of the Warrant Price or the number of shares issuable upon
      exercise of a Warrant, the Company shall give written notice thereof to the
      Warrant Agent, which notice shall state the Warrant Price resulting from such
      adjustment and the increase or decrease, if any, in the number of shares
      purchasable at such price upon the exercise of a Warrant, setting forth in
      reasonable detail the method of calculation and the facts upon which such
      calculation is based. Upon the occurrence of any event specified in Sections
      4.1, 4.2, 4.3, 4.4 or 4.5 the Company shall give written notice to each Warrant
      holder, at the last address set forth for such holder in the Warrant Register,
      of the record date or the effective date of the event. Failure to give such
      notice, or any defect therein, shall not affect the legality or validity of
      such
      event.

    

    4.7  No
      Fractional Shares.
      Notwithstanding any provision contained in this Agreement to the contrary,
      the
      Company shall not issue fractional shares upon exercise of Warrants. If, by
      reason of any adjustment made pursuant to this Section 4, the holder of any
      Warrant would be entitled, upon the exercise of such Warrant, to receive a
      fractional interest in a share, the Company shall, upon such exercise, round
      up
      to the nearest whole number the number of the shares of Common Stock to be
      issued to the Warrant holder.

     

    4.8  Form
      of Warrant.
      The
      form of Warrant need not be changed because of any adjustment pursuant to this
      Section 4, and Warrants issued after such adjustment may state the same
      Warrant Price and the same number of shares as is stated in the Warrants
      initially issued pursuant to this Agreement. However, the Company may, at any
      time, in its sole discretion, make any change in the form of Warrant that the
      Company may deem appropriate and that does not affect the substance thereof,
      and
      any Warrant thereafter issued or countersigned, whether in exchange or
      substitution for an outstanding Warrant or otherwise, may be in the form as
      so
      changed.

     

    5.  Transfer
      and Exchange of Warrants.

     

    5.1  Transfer
      of Warrants.
      Prior
      to the Detachment Date, the Public Warrants may be transferred or exchanged
      only
      together with the Unit in which such Warrant is included, and only for the
      purpose of effecting, or in conjunction with, a transfer or exchange of such
      Unit. Furthermore, each transfer of a Public Unit on the register relating
      to
      such Units shall operate also to transfer the Warrants included in such Unit.
      From and after the Detachment Date this Section 5.1 will have no further force
      and effect.

     

    
      
        
        

      

      
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    5.2 Registration
      of Transfer.
      The
      Warrant Agent shall register the transfer, from time to time, of any outstanding
      Warrant into the Warrant Register, upon surrender of such Warrant for transfer,
      properly endorsed with signatures properly guaranteed and accompanied by
      appropriate instructions for transfer. Upon any such transfer, a new Warrant
      representing an equal aggregate number of Warrants shall be issued and the
      old
      Warrant shall be cancelled by the Warrant Agent. The Warrants so cancelled
      shall
      be delivered by the Warrant Agent to the Company from time to time upon the
      Company’s request.

     

    5.3  Procedure
      for Surrender of Warrants.
      Warrants may be surrendered to the Warrant Agent, together with a written
      request for exchange or transfer, and, thereupon, the Warrant Agent shall issue
      in exchange therefor one or more new Warrants as requested by the registered
      holder of the Warrants so surrendered, representing an equal aggregate number
      of
      Warrants; provided, however, that in the event a Warrant surrendered for
      transfer bears a restrictive legend, the Warrant Agent shall not cancel such
      Warrant and shall issue new Warrants in exchange therefor until the Warrant
      Agent has received an opinion of counsel for the Company stating that such
      transfer may be made and indicating whether the new Warrants must also bear
      a
      restrictive legend.

     

    5.3  Fractional
      Warrants.
      The
      Warrant Agent shall not be required to effect any registration of transfer
      or
      exchange which will result in the issuance of a warrant certificate for a
      fraction of a warrant.

     

    5.4   Service
      Charges.
      No
      service charge shall be made for any exchange or registration of transfer of
      Warrants.

     

    5.5  Warrant
      Execution and Countersignature.
      The
      Warrant Agent is hereby authorized to countersign and to deliver, in accordance
      with the terms of this Agreement, the Warrants required to be issued pursuant
      to
      the provisions of this Section 5, and the Company, whenever required by the
      Warrant Agent, will supply the Warrant Agent with Warrants duly executed on
      behalf of the Company for such purpose.

    

    6. Redemption.

     

    6.1  Redemption.
      Subject
      to Section 6.4 hereof, not less than all of the outstanding Warrants may be
      redeemed, at the option of the Company, at any time after they become
      exercisable and prior to their expiration, at the office of the Warrant Agent,
      upon the notice referred to in Section 6.2 hereof, at a redemption price of
      $.01 per Warrant (the “Redemption
      Price”),
      provided that (i) the last sales price of the Common Stock has been equal to
      or
      greater than $9.00 per share (the “Trigger
      Price”)
      for
      any twenty (20) trading days within a thirty (30) trading day period ending
      on
      the third business day prior to the date on which notice of redemption is given
      and (ii) the Public Warrants and the Representative’s Warrants and the shares of
      Common Stock underlying such Warrants are covered by an effective registration
      statement and a current prospectus from the beginning of the measurement period
      through the date fixed for redemption. The provisions of this Section 6.1
      may not be modified, amended or deleted without the prior written consent of
      the
      Representative.

     

    
      
        
        

      

      
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    6.2   Date
      Fixed for, and Notice of, Redemption.
      In the
      event the Company shall elect to redeem all of the Warrants, the Company shall
      fix a date for the redemption (the “Redemption
      Date”),
      which
      shall be prior to the expiration of the Warrants. Notice of redemption shall
      be
      mailed by first class mail, postage prepaid, by the Company not less than thirty
      (30) days prior to the date fixed for redemption to the registered holders
      of
      the Warrants to be redeemed at their last addresses as they shall appear on
      the
      Warrant Register. Any notice mailed in the manner herein provided shall be
      conclusively presumed to have been duly given on the date sent, whether or
      not
      the registered holder received such notice. In the event of any adjustment
      to
      the Warrant Price or the number of shares of Common Stock issuable on exercise
      of each Warrant as provided in Section 4, a proportional adjustment shall be
      made to the Trigger Price.

     

    6.3 Exercise
      After Notice of Redemption.
      The
      Warrants may be exercised in accordance with Section 3 of this Warrant
      Agreement at any time after notice of redemption shall have been given by the
      Company pursuant to Section 6.2 hereof and prior to the time and date fixed
      for redemption. On and after the redemption date, the record holder of the
      Warrants shall have no further rights except to receive, upon surrender of
      the
      Warrants, the Redemption Price.

     

    6.4  Outstanding
      Warrants Only.
      The
      Company understands that the redemption rights provided for by this
      Section 6 apply only to outstanding Warrants. To the extent a person holds
      rights to purchase Warrants, such purchase rights shall not be extinguished
      by
      redemption. However, once such purchase rights are exercised, the Company may
      redeem the Warrants issued upon such exercise, provided that the criteria for
      redemption are met. The provisions of this Section 6.4 may not be modified,
      amended or deleted without the prior written consent of the
      Representative.

    

    6.5 No
      Other Rights to Cash Payment.
      Except
      for a redemption in accordance with this Section 6, no holder of any Warrant
      shall be entitled to any cash payment whatsoever from the Company in connection
      with the ownership, exercise or surrender of any Warrant under this Agreement,
      regardless of whether a registration statement is current under the Act with
      respect to the Common Stock issuable upon exercise of the Warrants.

     

    7.  Other
      Provisions Relating to Rights of Holders of Warrants.

     

    7.1 No
      Rights as Stockholder.
      A
      Warrant does not entitle the registered holder thereof to any of the rights
      of a
      stockholder of the Company, including, without limitation, the right to receive
      dividends, or other distributions, exercise any preemptive rights to vote or
      to
      consent or to receive notice as stockholders in respect of the meetings of
      stockholders or the election of directors of the Company or any other
      matter.

     

    
      
        
        

      

      
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    7.2   Lost,
      Stolen, Mutilated, or Destroyed Warrants.
      If any
      Warrant is lost, stolen, mutilated or destroyed, the Company and the Warrant
      Agent may, on such terms as to indemnity or otherwise as they may in their
      discretion impose (which terms shall, in the case of a mutilated Warrant,
      include the surrender thereof), issue a new Warrant of like denomination, tenor
      and date as the Warrant so lost, stolen, mutilated or destroyed. Any such new
      Warrant shall constitute a substitute contractual obligation of the Company,
      whether or not the allegedly lost, stolen, mutilated or destroyed Warrant shall
      be at any time enforceable by anyone.

    

    7.3   Reservation
      of Common Stock.
      The
      Company shall at all times reserve and keep available a number of its authorized
      but unissued shares of Common Stock that will be sufficient to permit the
      exercise in full of all outstanding Warrants issued pursuant to this
      Agreement.

     

    7.4   Registration
      of Common Stock.
      The
      Company agrees that, prior to the commencement of the Exercise Period, it shall
      file with the Commission a post-effective amendment to the Registration
      Statement, or a new registration statement, for the registration under the
      Act
      of, and it shall take such action as is necessary to qualify for sale in those
      states in which the Public Warrants and the Representative’s Warrants were
      initially offered by the Company, the Common Stock issuable upon exercise of
      the
      Public Warrants and the Representative’s Warrants. In either case, the Company
      will use its best efforts to cause the same to become effective on or prior
      to
      the commencement of the Exercise Period, to maintain the effectiveness of such
      registration statement and to ensure that a current prospectus is on file with
      the Commission until the expiration or redemption of the Warrants in accordance
      with the provisions of this Agreement; provided, however, that the Company
      shall
      not be obligated to deliver shares of Common Stock issuable upon exercise of
      the
      Warrants, and shall not have penalties nor be liable to the Warrant holder
      for
      failure to deliver shares, if a registration statement is not effective or
      a
      current prospectus is not on file with the Commission at the time of exercise
      of
      the Warrant by a holder. In addition, the Company agrees to use its reasonable
      efforts to register such securities under the blue sky laws of the states of
      residence of the exercising warrant holders to the extent an exemption is not
      available. The provisions of this Section 7.4 may not be modified, amended
      or deleted without the prior written consent of the Representative.

    

    7.5 Delivery
      of Prospectus or Notice.
      Upon
      the exercise of any Warrant, if the Company requests, the Warrant Agent shall
      deliver to the holder of such Warrant, prior to or concurrently with the
      delivery of the shares of Common Stock issuable upon such exercise, in
      accordance with the Company’s request, either (i) a prospectus relating to the
      shares of Common Stock deliverable upon exercise of the Warrants and complying
      in all material respects with the Act or (ii) the notice referred to in Rule
      173
      under the Act.

     

    8.  Concerning
      the Warrant Agent and Other Matters.

     

    8.1 Payment
      of Taxes.
      The
      Company will, from time to time, promptly pay all taxes and charges that may
      be
      imposed upon the Company or the Warrant Agent in respect of the issuance or
      delivery of shares of Common Stock upon the exercise of Warrants, but the
      Company shall not be obligated to pay any transfer taxes in respect of the
      Warrants or such shares.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    8.2    Resignation,
      Consolidation, or Merger of Warrant Agent.

     

    8.2.1  Appointment
      of Successor Warrant Agent.
      The
      Warrant Agent, or any successor to it hereafter appointed, may resign its duties
      and be discharged from all further duties and liabilities hereunder after giving
      sixty (60) days’ notice in writing to the Company. If the office of the Warrant
      Agent becomes vacant by resignation or incapacity to act or otherwise, the
      Company shall appoint, in writing, a successor Warrant Agent in place of the
      Warrant Agent. If the Company shall fail to make such appointment within a
      period of thirty (30) days after it has been notified in writing of such
      resignation or incapacity by the Warrant Agent or by the holder of the Warrant
      (who shall, with such notice, submit his, her or its Warrant for inspection
      by
      the Company), then the holder of any Warrant may apply to the Supreme Court
      of
      the State of New York for the County of New York for the appointment of a
      successor Warrant Agent. Any successor Warrant Agent, whether appointed by
      the
      Company or by such court, shall be a corporation organized and existing under
      the laws of the State of New York, in good standing and have its principal
      office in the Borough of Manhattan, City and State of New York, and be
      authorized under such laws to exercise corporate trust powers and subject to
      supervision or examination by federal or state authorities. After appointment,
      any successor Warrant Agent shall be vested with all the authority, powers,
      rights, immunities, duties and obligations of its predecessor Warrant Agent
      with
      like effect as if originally named as Warrant Agent hereunder, without any
      further act or deed; but, if for any reason it becomes necessary or appropriate,
      the predecessor Warrant Agent shall execute and deliver, at the expense of
      the
      Company, an instrument transferring to such successor Warrant Agent all the
      authority, powers, and rights of such predecessor Warrant Agent hereunder;
      and,
      upon request of any successor Warrant Agent, the Company shall make, execute,
      acknowledge, and deliver any and all instruments in writing for more fully
      and
      effectually vesting in and confirming to such successor Warrant Agent all such
      authority, powers, rights, immunities, duties and obligations.

    

    8.2.2  Notice
      of Successor Warrant Agent.
      In the
      event a successor Warrant Agent shall be appointed, the Company shall give
      notice thereof to the predecessor Warrant Agent and the transfer agent for
      the
      Common Stock not later than the effective date of any such
      appointment.

     

    8.2.3    Merger
      or Consolidation of Warrant Agent.
      Any
      corporation into which the Warrant Agent may be merged or with which it may
      be
      consolidated or any corporation resulting from any merger or consolidation
      to
      which the Warrant Agent shall be a party shall be the successor Warrant Agent
      under this Agreement without any further act on the part of the Company or
      the
      Warrant Agent.

     

    8.3   Fees
      and Expenses of Warrant Agent.

     

    8.3.1 Remuneration.
      The
      Company agrees to pay the Warrant Agent reasonable remuneration for its services
      as Warrant Agent hereunder as set forth on Exhibit
      B
      hereto
      and will reimburse the Warrant Agent upon demand for all expenditures that
      the
      Warrant Agent may reasonably incur in the execution of its duties
      hereunder.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    8.3.2    Further
      Assurances.
      The
      Company agrees to perform, execute, acknowledge and deliver, or cause to be
      performed, executed, acknowledged and delivered, all such further and other
      acts, instruments and assurances as may reasonably be required by the Warrant
      Agent for the carrying out or performing of the provisions of this
      Agreement.

     

    8.4    Liability
      of Warrant Agent.

     

    8.4.1  Reliance
      on Company Statement.
      Whenever, in the performance of its duties under this Warrant Agreement, the
      Warrant Agent shall deem it necessary or desirable that any fact or matter
      be
      proved or established by the Company prior to taking or suffering any action
      hereunder, such fact or matter (unless other evidence in respect thereof be
      herein specifically prescribed) may be deemed to be conclusively proved and
      established by a statement signed by the Chief Executive Officer, Chairman
      of
      the Board of Directors or President of the Company and delivered to the Warrant
      Agent. The Warrant Agent may rely upon such statement for any action taken
      or
      suffered in good faith by it pursuant to the provisions of this
      Agreement.

     

    8.4.2    Indemnity.
      The
      Warrant Agent shall be liable hereunder only for its own negligence, willful
      misconduct or bad faith. The Company agrees to indemnify the Warrant Agent
      and
      save it harmless against any and all liabilities, including judgments, costs
      and
      reasonable counsel fees, for anything done or omitted by the Warrant Agent
      in
      the execution of this Warrant Agreement, except as a result of the Warrant
      Agent’s negligence, willful misconduct or bad faith.

     

    8.4.3   Exclusions.
      The
      Warrant Agent shall have no responsibility with respect to the validity of
      this
      Warrant Agreement or with respect to the validity or execution of any Warrant
      (except its countersignature thereof); nor shall it be responsible for any
      breach by the Company of any covenant or condition contained in this Agreement
      or in any Warrant; nor shall it be responsible to make any adjustments required
      under the provisions of Section 4 hereof or responsible for the manner,
      method or amount of any such adjustment or the ascertaining of the existence
      of
      facts that would require any such adjustment; nor shall it, by any act
      hereunder, be deemed to make any representation or warranty as to the
      authorization or reservation of any shares of Common Stock to be issued pursuant
      to this Agreement or any Warrant or as to whether any shares of Common Stock
      will when issued be valid and fully paid and nonassessable.

    

    8.5   Acceptance
      of Agency.
      The
      Warrant Agent hereby accepts the agency established by this Warrant Agreement
      and agrees to perform the same upon the terms and conditions herein set forth
      and, among other things, shall account promptly to the Company with respect
      to
      Warrants exercised and concurrently account for, and pay to the Company, all
      moneys received by the Warrant Agent for the purchase of shares of the Company’s
      Common Stock through the exercise of Warrants.

    

    9.   Miscellaneous
      Provisions.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    9.1 Successors.
      All the
      covenants and provisions of this Warrant Agreement by or for the benefit of
      the
      Company or the Warrant Agent shall bind and inure to the benefit of their
      respective successors and assigns.

     

    9.2   Notices.
      Any
      notice, consent or request to be given in connection with any of the terms
      or
      provisions of this Agreement shall be in writing and shall be sent express
      mail
      or similar overnight courier service, by certified mail (return receipt
      requested), by hand delivery or by facsimile transmission: 

     

    If
      to the
      Company, to:

    Specialty
      Metals Group Indium Corp.

    103
      Carnegie Center, Suite 101

    Princeton,
      New Jersey 08540

    Attn:
      Ailon Z. Grushkin

    

     If
      to the Warrant Agent, to:

    Continental
      Stock Transfer & Trust Company

    17
      Battery Place

    New
      York,
      New York 10004

    Attn:
      Compliance Department

     

    with
      a
      copy in each case to:

     

    Ellenoff
      Grossman & Schole LLP

    370
      Lexington Avenue, 19th
      Floor

    New
      York,
      New York 10017

    Attn:
      Barry I. Grossman, Esq.

    

    and

    Lowenstein
      Sandler PC

    65
      Livingston Avenue

    Roseland,
      New Jersey 07068

    Attn:
      Steven M. Skolnick, Esq.

    

    and

    Maxim
      Group LLC

    405
      Lexington Avenue

    New
      York,
      New York 10174

    Attn:
      Paul G. LaRosa

     

    Any
      notice, sent pursuant to this Agreement shall be effective, if delivered by
      hand, upon receipt thereof by the party to whom it is addressed, if sent by
      overnight courier, on the next business day of the delivery to the courier,
      and
      if sent by registered or certified mail on the third day after registration
      or
      certification thereof.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    9.3   Applicable
      Law.
      The
      validity, interpretation, and performance of this Agreement and of the Warrants
      shall be governed in all respects by the laws of the State of New York, without
      giving effect to the conflict of laws principles thereof. The Company and the
      Warrant Agent each hereby agrees that any action, proceeding or claim against
      it
      arising out of or relating in any way to this Agreement shall be brought and
      enforced in the courts of the State of New York or the United States District
      Court for the Southern District of New York, and irrevocably submits to such
      jurisdiction, which jurisdiction shall be exclusive. The Company and the Warrant
      Agent each hereby waives any objection to such exclusive jurisdiction and that
      such courts represent an inconvenient forum. Any such process or summons to
      be
      served upon the Company or the Warrant Agent may be served by transmitting
      a
      copy thereof by registered or certified mail, return receipt requested, postage
      prepaid, addressed to it at the address set forth in Section 9.2 hereof.
      Such mailing shall be deemed personal service and shall be legal and binding
      upon the Company or the Warrant Agent in any action, proceeding or
      claim.

     

    9.4    Persons
      Having Rights under this Warrant Agreement.
      Nothing
      in this Agreement expressed and nothing that may be implied from any of the
      provisions hereof is intended, or shall be construed, to confer upon, or give
      to, any person or corporation, other than the parties hereto and the registered
      holders of the Warrants and, for the purposes of Sections  6.1, 6.4, 7.4,
      9.2 and 9.8 hereof, the Representative, any right, remedy or claim under or
      by
      reason of this Agreement or of any covenant, condition, stipulation, promise
      or
      agreement hereof. the Representative shall be deemed to be a third-party
      beneficiary of this Agreement with respect to Sections 6.1, 6.4, 7.4, 9.2 and
      9.8 hereof. All covenants, conditions, stipulations, promises and agreements
      contained in this Warrant Agreement shall be for the sole and exclusive benefit
      of the parties hereto (and the Representative, with respect to the Sections
      6.1,
      6.4, 7.4, 9.2 and 9.8 hereof) and their successors and assigns and of the
      registered holders of the Warrants.

     

    9.5   Examination
      of the Agreement.
      A copy
      of this Agreement shall be available at all reasonable times at the office
      of
      the Warrant Agent in the Borough of Manhattan, City and State of New York,
      for
      inspection by the registered holder of any Warrant. The Warrant Agent may
      require any such holder to submit his, her or its Warrant for
      inspection.

     

    9.6   Counterparts;
      Facsimile Signatures.
      This
      Agreement may be executed in any number of counterparts, and each of such
      counterparts shall, for all purposes, be deemed to be an original, and all
      such
      counterparts shall together constitute one and the same instrument. Facsimile
      signatures shall constitute original signatures for all purposes of this Warrant
      Agreement. Facsimile signatures shall constitute original signatures for all
      purposes of this Agreement.

     

    9.7    Effect
      of Headings.
      The
      section headings herein are for convenience only and are not part of this
      Warrant Agreement and shall not affect the interpretation thereof.

     

    9.8  Amendments.
      This
      Agreement may be amended by the parties hereto without the consent of any
      registered holder for the purpose of curing any ambiguity, or of curing,
      correcting or supplementing any defective provision contained herein or adding
      or changing any other provisions with respect to matters or questions arising
      under this Warrant Agreement as the parties may deem necessary or desirable
      and
      that the parties deem shall not adversely affect the interest of the registered
      holders. All other modifications or amendments, including any amendment to
      increase the Warrant Price or shorten the Exercise Period, shall require the
      written consent of each of the Representative and the registered holders of
      a
      majority of the then outstanding Warrants. Notwithstanding the foregoing, the
      Company may lower the Warrant Price or extend the duration of the Exercise
      Period in accordance with Sections 3.1 and 3.2, respectively, without such
      consent.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    

    9.9   Severability.
      This
      Agreement shall be deemed severable, and the invalidity or unenforceability
      of
      any term or provision hereof shall not affect the validity or enforceability
      of
      this Agreement or of any other term or provision hereof. Furthermore, in lieu
      of
      any such invalid or unenforceable term or provision, the parties hereto intend
      that there shall be added as a part of this Agreement a provision as similar
      in
      terms to such invalid or unenforceable provision as may be possible and be
      valid
      and enforceable.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, this Agreement has been duly executed by the parties hereto
      as
      of the day and year first above written.

     

    
      	
              Attest

            	 	 	
              SPECIALTY
                METALS GROUP INDIUM CORP.

            
	 	 	 	 
	 	 	 	 
	
              ___________________________

            	 	By:	
            
	
            	 	 	
              

              Name:
                Ailon Z. Grushkin

              Title:
                President

            

    

    

      	
              Attest

            	 	 	
              CONTINENTAL
                STOCK TRANSFER  & TRUST COMPANY

            
	 	 	 	 
	 	 	 	 
	
              ___________________________

            	 	By:	
            
	
            	 	 	
              

              Name:
                

              Title:
                

            

    

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

     

    Form
      of Public Warrant

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      B

     

    Warrant
      Agent Fees

     

    
      
        
        

      

      
        18Exhibit
      4.6

    

    SPECIALTY
      METALS GROUP INDIUM CORP.

      

    2008
      LONG-TERM INCENTIVE COMPENSATION PLAN

    

    ARTICLE
      I

    PURPOSE

    

    Section
      1.1 Purpose.
      This
      2008 Long-Term Incentive Compensation Plan (the “Plan”) is established by
      Specialty Metals Group Indium Corp., a Delaware corporation (the “Company”), to
      create incentives which are designed to motivate Participants to put forth
      maximum effort toward the success and growth of the Company and to enable the
      Company to attract and retain experienced individuals who by their position,
      ability and diligence are able to make important contributions to the Company’s
      success. Toward these objectives, the Plan provides for the grant of Options,
      Restricted Stock Awards, Stock Appreciation Rights (“SARs”), Performance Units
      and Performance Bonuses to Eligible Employees and the grant of Nonqualified
      Stock Options, Restricted Stock Awards, SARs and Performance Units to
      Consultants and Eligible Directors, subject to the conditions set forth in
      the
      Plan.

    

    Section
      1.2 Establishment.
      The Plan
      is effective as of January 31, 2008 and for a period of ten years thereafter.
      The Plan shall continue in effect until all matters relating to the payment
      of
      Awards and administration of the Plan have been settled. The Plan is subject
      to
      approval by the Company’s stockholders in accordance with applicable law which
      approval must occur within the period ending twelve months after the date the
      Plan is adopted by the Board. Pending such approval by the stockholders, Awards
      under the Plan may be granted, but no such Awards may be exercised prior to
      receipt of stockholder approval. In the event stockholder approval is not
      obtained within a twelve-month period, all Awards granted shall be
      void.

    

    Section
      1.3 Shares Subject to the Plan.
      Subject
      to the limitations set forth in the Plan, Awards may be made under this Plan
      for
      a total of 330,000 shares of the Company’s common stock, par value $.001 per
      share (the “Common Stock”).

    

    ARTICLE
      II

    DEFINITIONS

    

    Section
      2.1 “Account”
means
      the recordkeeping account established by the Company to which will be credited
      an Award of Performance Units to a Participant.

    

    Section
      2.2 “Affiliated Entity”
      means
      any corporation, partnership, limited liability company or other form of legal
      entity in which a majority of the partnership or other similar interest thereof
      is owned or controlled, directly or indirectly, by the Company or one or more
      of
      its Subsidiaries or Affiliated Entities or a combination thereof. For purposes
      hereof, the Company, a Subsidiary or an Affiliated Entity shall be deemed to
      have a majority ownership interest in a partnership or limited liability company
      if the Company, such Subsidiary or Affiliated Entity shall be allocated a
      majority of partnership or limited liability company gains or losses or shall
      be
      or control a managing director or a general partner of such partnership or
      limited liability company.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Section
      2.3 “Award”
      means,
      individually or collectively, any Option, Restricted Stock Award, SAR,
      Performance Unit or Performance Bonus granted under the Plan to an Eligible
      Employee by the Board or any Nonqualified Stock Option, Performance Unit SAR
      or
      Restricted Stock Award granted under the Plan to a Consultant or an Eligible
      Director by the Board pursuant to such terms, conditions, restrictions, and/or
      limitations, if any, as the Board may establish by the Award Agreement or
      otherwise.

    

    Section
      2.4 “Award Agreement”
      means
      any written instrument that establishes the terms, conditions, restrictions,
      and/or limitations applicable to an Award in addition to those established
      by
      this Plan and by the Board’s exercise of its administrative powers.

    

    Section
      2.5 “Board”
      means
      the Board of Directors of the Company and, if the Board has appointed a
      Committee as provided in Section 3.1, the term “Board” shall include such
      Committee.

    

    Section
      2.6 “Change of Control Event”
      means
      each of the following:

    

    (i)
      Any
      transaction in which shares of voting securities of the Company representing
      more than 50% of the total combined voting power of all outstanding voting
      securities of the Company are issued by the Company, or sold or transferred
      by
      the stockholders of the Company as a result of which those persons and entities
      who beneficially owned voting securities of the Company representing more than
      50% of the total combined voting power of all outstanding voting securities
      of
      the Company immediately prior to such transaction cease to beneficially own
      voting securities of the Company representing more than 50% of the total
      combined voting power of all outstanding voting securities of the Company
      immediately after such transaction;

    

    (ii)
      The
      merger or consolidation of the Company with or into another entity as a result
      of which those persons and entities who beneficially owned voting securities
      of
      the Company representing more than 50% of the total combined voting power of
      all
      outstanding voting securities of the Company immediately prior to such merger
      or
      consolidation cease to beneficially own voting securities of the Company
      representing more than 50% of the total combined voting power of all outstanding
      voting securities of the surviving corporation or resulting entity immediately
      after such merger of consolidation; or

    

    (iii)
      The
      sale of all or substantially all of the Company’s assets to an entity of which
      those persons and entities who beneficially owned voting securities of the
      Company representing more than 50% of the total combined voting power of all
      outstanding voting securities of the Company immediately prior to such asset
      sale do not beneficially own voting securities of the purchasing entity
      representing more than 50% of the total combined voting power of all outstanding
      voting securities of the purchasing entity immediately after such asset
      sale.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Section
      2.7 “Code”
      means
      the Internal Revenue Code of 1986, as amended. References in the Plan to any
      section of the Code shall be deemed to include any amendments or successor
      provisions to such section and any regulations under such section.

    

    Section
      2.8 “Committee”
      means
      the Committee appointed by the Board as provided in Section 3.1.

    

    Section
      2.9 “Common Stock”
      means
      the common stock, par value $.001 per share, of the Company, and after
      substitution, such other stock as shall be substituted therefore as provided
      in
      Article X.

    

    Section
      2.10 “Consultant”
      means
      any person who is engaged by the Company, a Subsidiary or an Affiliated Entity
      to render consulting or advisory services.

    

    Section
      2.11 “Date of Grant”
      means
      the date on which the grant of an Award is authorized by the Board or such
      later
      date as may be specified by the Board in such authorization.

    

    Section
      2.12 “Disability”
      means
      the Participant is unable to continue employment by reason of any medically
      determinable physical or mental impairment which can be expected to result
      in
      death or can be expected to last for a continuous period of not less than 12
      months. For purposes of this Plan, the determination of Disability shall be
      made
      in the sole and absolute discretion of the Board.

    

    Section
      2.13 “Eligible Employee”
      means
      any employee of the Company, a Subsidiary, or an Affiliated Entity as approved
      by the Board.

    

    Section
      2.14 “Eligible Director”
      means
      any member of the Board who is not an employee of the Company, a Subsidiary
      or
      an Affiliated Entity.

    

    Section
      2.15 “Exchange Act”
      means
      the Securities Exchange Act of 1934, as amended.

    

    Section
      2.16 “Fair Market Value”
      means
      (A) during such time as the Common Stock is registered under Section 12 of
      the
      Exchange Act, the closing price of the Common Stock as reported by an
      established stock exchange or automated quotation system on the day for which
      such value is to be determined, or, if no sale of the Common Stock shall have
      been made on any such stock exchange or automated quotation system that day,
      on
      the next preceding day on which there was a sale of such Common Stock, or (B)
      during any such time as the Common Stock is not listed upon an established
      stock
      exchange or automated quotation system, the mean between dealer “bid” and “ask”
prices of the Common Stock in the over-the-counter market on the day for which
      such value is to be determined, as reported by the National Association of
      Securities Dealers, Inc., or (C) during any such time as the Common Stock cannot
      be valued pursuant to (A) or (B) above, the fair market value shall be as
      determined by the Board considering all relevant information including, by
      example and not by limitation, the services of an independent
      appraiser.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Section
      2.17 “Incentive Stock Option”
      means an
      Option within the meaning of Section 422 of the Code.

    

    Section
      2.18 “Nonqualified Stock Option”
      means an
      Option which is not an Incentive Stock Option.

    

    Section
      2.19 “Option”
      means an
      Award granted under Article V of the Plan and includes both Nonqualified Stock
      Options and Incentive Stock Options to purchase shares of Common
      Stock.

    

    Section
      2.20 “Participant”
      means an
      Eligible Employee, a Consultant or an Eligible Director to whom an Award has
      been granted by the Board under the Plan.

    

    Section
      2.21 “Performance Bonus”
      means
      the cash bonus which may be granted to Eligible Employees under Article IX
      of
      the Plan.

    

    Section
      2.22 “Performance Units”
      means
      those monetary units that may be granted to Eligible Employees, Consultants
      or
      Eligible Directors pursuant to Article VIII hereof.

    

    Section
      2.23 “Plan”
      means
      this Specialty Metals Group Indium Corp. 2008 Long-Term Incentive Compensation
      Plan.

    

    Section
      2.24 “Restricted Stock Award”
      means an
      Award granted to an Eligible Employee, Consultant or Eligible Director under
      Article VI of the Plan.

    

    Section
      2.25 “Retirement”
      means
      the termination of an Eligible Employee’s employment with the Company, a
      Subsidiary or an Affiliated Entity on or after attaining the retirement age
      as
      determined by the Board of Directors.

    

    Section
      2.26 “SAR”
      means a
      stock appreciation right granted to an Eligible Employee, Consultant or Eligible
      Director under Article VII of the Plan.

    

    Section
      2.27 “Subsidiary”
      shall
      have the same meaning set forth in Section 424 of the Code.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    ARTICLE
      III

    ADMINISTRATION

    

    Section
      3.1 Administration of the Plan by the Board.
      The
      Board shall administer the Plan. The Board may, by resolution, appoint the
      Compensation Committee to administer the Plan and delegate its powers described
      under this Section 3.1 and otherwise under the Plan for purposes of Awards
      granted to Eligible Employees and Consultants.

    

    Subject
      to the provisions of the Plan, the Board shall have exclusive power
      to:

    

    (a)
      Select Eligible Employees and Consultants to participate in the
      Plan.

    

    (b)
      Determine the time or times when Awards will be made to Eligible Employees
      or
      Consultants.

    

    (c)
      Determine the form of an Award, whether an Incentive Stock Option, Nonqualified
      Stock Option, Restricted Stock Award, SAR, Performance Unit, or Performance
      Bonus, the number of shares of Common Stock or Performance Units subject to
      the
      Award, the amount and all the terms, conditions (including performance
      requirements), restrictions and/or limitations, if any, of an Award, including
      the time and conditions of exercise or vesting, and the terms of any Award
      Agreement, which may include the waiver or amendment of prior terms and
      conditions or acceleration or early vesting or payment of an Award under certain
      circumstances determined by the Board.

    

    (d)
      Determine whether Awards will be granted singly or in combination.

    

    (e)
      Accelerate the vesting, exercise or payment of an Award or the performance
      period of an Award.

    

    (f)
      Determine whether and to what extent a Performance Bonus may be deferred, either
      automatically or at the election of the Participant or the Board.

    

    (g)
      Take
      any and all other action it deems necessary or advisable for the proper
      operation or administration of the Plan.

    

    Section
      3.2 Administration of Grants to Eligible Directors.
      The
      Board shall have the exclusive power to select Eligible Directors to participate
      in the Plan and to determine the number of Nonqualified Stock Options,
      Performance Units, SARs or shares of Restricted Stock awarded to Eligible
      Directors selected for participation. If the Board appoints a committee to
      administer the Plan, it may delegate to the committee administration of all
      other aspects of the Awards made to Eligible Directors.

    

    Section
      3.3 Board to Make Rules and Interpret Plan.
      The
      Board in its sole discretion shall have the authority, subject to the provisions
      of the Plan, to establish, adopt, or revise such rules and regulations and
      to
      make all such determinations relating to the Plan, as it may deem necessary
      or
      advisable for the administration of the Plan. The Board’s interpretation of the
      Plan or any Awards and all decisions and determinations by the Board with
      respect to the Plan shall be final, binding, and conclusive on all
      parties.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Section
      3.4 Section 162(m) Provisions.
      The
      Company intends for the Plan and the Awards made there under to qualify for
      the
      exception from Section 162(m) of the Code for “qualified performance based
      compensation” if it is determined by the Board that such qualification is
      necessary for an Award. Accordingly, the Board shall make determinations as
      to
      performance targets and all other applicable provisions of the Plan as necessary
      in order for the Plan and Awards made there under to satisfy the requirements
      of
      Section 162(m) of the Code.

    
 

    ARTICLE
      IV

    GRANT
      OF AWARDS

    

    Section
      4.1 Grant of Awards.
      Awards
      granted under this Plan shall be subject to the following
      conditions:

    

    (a)
      Any
      shares of Common Stock related to Awards which terminate by expiration,
      forfeiture, cancellation or otherwise without the issuance of shares of Common
      Stock or are exchanged in the Board’s discretion for Awards not involving Common
      Stock, shall be available again for grant under the Plan and shall not be
      counted against the shares authorized under Section 1.3.

    

    (b)
      Common Stock delivered by the Company in payment of an Award authorized under
      Articles V and VI of the Plan may be authorized and unissued Common Stock or
      Common Stock held in the treasury of the Company.

    

    (c)
      The
      Board shall, in its sole discretion, determine the manner in which fractional
      shares arising under this Plan shall be treated.

    

    (d)
      Separate certificates or a book-entry registration representing Common Stock
      shall be delivered to a Participant upon the exercise of any
      Option.

    

    (e)
      The
      Board shall be prohibited from canceling, reissuing or modifying Awards if
      such
      action will have the effect of repricing the Participant’s Award.

    

    (f)
      Eligible Directors may only be granted Nonqualified Stock Options, Restricted
      Stock Awards, SARs or Performance Units under this Plan.

    

    (g)
      The
      maximum term of any Award shall be ten years.

    

    ARTICLE
      V

    STOCK
      OPTIONS

    

    Section
      5.1 Grant of Options.
      The
      Board may, from time to time, subject to the provisions of the Plan and such
      other terms and conditions as it may determine, grant Options to Eligible
      Employees. These Options may be Incentive Stock Options or Nonqualified Stock
      Options, or a combination of both. The Board may, subject to the provisions
      of
      the Plan and such other terms and conditions as it may determine, grant
      Nonqualified Stock Options to Eligible Directors and Consultants. Each grant
      of
      an Option shall be evidenced by an Award Agreement executed by the Company
      and
      the Participant, and shall contain such terms and conditions and be in such
      form
      as the Board may from time to time approve, subject to the requirements of
      Section 5.2.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Section
      5.2 Conditions of Options.
      Each
      Option so granted shall be subject to the following conditions:

    

    (a)
      Exercise Price. As limited by Section 5.2(e) below, each Option shall state
      the
      exercise price which shall be set by the Board at the Date of Grant; provided,
      however, no Option shall be granted at an exercise price which is less than
      the
      Fair Market Value of the Common Stock on the Date of Grant.

    

    (b)
      Form
      of Payment. The exercise price of an Option may be paid (i) in cash or by check,
      bank draft or money order payable to the order of the Company; (ii) by
      delivering shares of Common Stock having a Fair Market Value on the date of
      payment equal to the amount of the exercise price, but only to the extent such
      exercise of an Option would not result in an adverse accounting charge to the
      Company for financial accounting purposes with respect to the shares used to
      pay
      the exercise price unless otherwise determined by the Board; or (iii) a
      combination of the foregoing. In addition to the foregoing, the Board may permit
      an Option granted under the Plan to be exercised by a broker-dealer acting
      on
      behalf of a Participant through procedures approved by the Board.

    

    (c)
      Exercise of Options. Options granted under the Plan shall be exercisable, in
      whole or in such installments and at such times, and shall expire at such time,
      as shall be provided by the Board in the Award Agreement. Exercise of an Option
      shall be by written notice to the Secretary of the Company at least two business
      days in advance of such exercise stating the election to exercise in the form
      and manner determined by the Board. Every share of Common Stock acquired through
      the exercise of an Option shall be deemed to be fully paid at the time of
      exercise and payment of the exercise price.

    

    (d)
      Other
      Terms and Conditions. Among other conditions that may be imposed by the Board,
      if deemed appropriate, are those relating to (i) the period or periods and
      the
      conditions of exercisability of any Option; (ii) the minimum periods during
      which Participants must be employed by the Company, its Subsidiaries, or an
      Affiliated Entity, or must hold Options before they may be exercised; (iii)
      the
      minimum periods during which shares acquired upon exercise must be held before
      sale or transfer shall be permitted; (iv) conditions under which such Options
      or
      shares may be subject to forfeiture; (v) the frequency of exercise or the
      minimum or maximum number of shares that may be acquired at any one time; (vi)
      the achievement by the Company of specified performance criteria; and (vii)
      non-compete and protection of business matters.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (e)
      Special Restrictions Relating to Incentive Stock Options. Options issued in
      the
      form of Incentive Stock Options shall only be granted to Eligible Employees
      of
      the Company or a Subsidiary, and not to Eligible Employees of an Affiliated
      Entity unless such entity shall be considered as a “disregarded entity” under
      the Code and shall not be distinguished for federal tax purposes from the
      Company or the applicable Subsidiary.

    

    (f)
      Application of Funds. The proceeds received by the Company from the sale of
      Common Stock pursuant to Options will be used for general corporate
      purposes.

    

    (g)
      Stockholder Rights. No Participant shall have a right as a stockholder with
      respect to any share of Common Stock subject to an Option prior to purchase
      of
      such shares of Common Stock by exercise of the Option.

    

    ARTICLE
      VI

    RESTRICTED
      STOCK AWARDS

    

    Section
      6.1 Grant of Restricted Stock Awards.
      The
      Board may, from time to time, subject to the provisions of the Plan and such
      other terms and conditions as it may determine, grant a Restricted Stock Award
      to Eligible Employees, Consultants or Eligible Directors. Restricted Stock
      Awards shall be awarded in such number and at such times during the term of
      the
      Plan as the Board shall determine. Each Restricted Stock Award shall be subject
      to an Award Agreement setting forth the terms of such Restricted Stock Award
      and
      may be evidenced in such manner as the Board deems appropriate, including,
      without limitation, a book-entry registration or issuance of a stock certificate
      or certificates.

    

    Section
      6.2 Conditions of Restricted Stock Awards.
      The
      grant of a Restricted Stock Award shall be subject to the
      following:

    

    (a)
      Restriction Period. Restricted Stock Awards granted to an Eligible Employee
      shall require the holder to remain in the employment of the Company, a
      Subsidiary, or an Affiliated Entity for a prescribed period. Restricted Stock
      Awards granted to Consultants or Eligible Directors shall require the holder
      to
      provide continued services to the Company for a period of time. These employment
      and service requirements are collectively referred to as a “Restriction Period”.
      The Board or the Committee, as the case may be, shall determine the Restriction
      Period or Periods which shall apply to the shares of Common Stock covered by
      each Restricted Stock Award or portion thereof. In addition to any time vesting
      conditions determined by the Board or the Committee, as the case may be,
      Restricted Stock Awards may be subject to the achievement by the Company of
      specified performance criteria based upon the Company’s achievement of all or
      any of the operational, financial or stock performance criteria set forth on
      Exhibit A annexed hereto, as may from time to time be established by the Board
      or the Committee, as the case may be. At the end of the Restriction Period,
      assuming the fulfillment of any other specified vesting conditions, the
      restrictions imposed by the Board or the Committee, as the case may be shall
      lapse with respect to the shares of Common Stock covered by the Restricted
      Stock
      Award or portion thereof. In addition to acceleration of vesting upon the
      occurrence of a Change of Control Event as provided in Section 11.5, the Board
      or the Committee, as the case may be, may, in its discretion, accelerate the
      vesting of a Restricted Stock Award in the case of the death, Disability or
      Retirement of the Participant who is an Eligible Employee or resignation of
      a
      Participant who is a Consultants or an Eligible Director.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (b)
      Restrictions. The holder of a Restricted Stock Award may not sell, transfer,
      pledge, exchange, hypothecate, or otherwise dispose of the shares of Common
      Stock represented by the Restricted Stock Award during the applicable
      Restriction Period. The Board shall impose such other restrictions and
      conditions on any shares of Common Stock covered by a Restricted Stock Award
      as
      it may deem advisable including, without limitation, restrictions under
      applicable Federal or state securities laws, and may legend the certificates
      representing Restricted Stock to give appropriate notice of such
      restrictions.

    

    (c)
      Rights as Stockholders. During any Restriction Period, the Board may, in its
      discretion, grant to the holder of a Restricted Stock Award all or any of the
      rights of a stockholder with respect to the shares, including, but not by way
      of
      limitation, the right to vote such shares and to receive dividends. If any
      dividends or other distributions are paid in shares of Common Stock, all such
      shares shall be subject to the same restrictions on transferability as the
      shares of Restricted Stock with respect to which they were paid.

    

    ARTICLE
      VII

    STOCK
      APPRECIATION RIGHTS

    

    Section
      7.1 Grant of SARs.
      The
      Board may from time to time, in its sole discretion, subject to the provisions
      of the Plan and subject to other terms and conditions as the Board may
      determine, grant a SAR to any Eligible Employee, Consultant or Eligible
      Director. SARs may be granted in tandem with an Option, in which event, the
      Participant has the right to elect to exercise either the SAR or the Option.
      Upon the Participant’s election to exercise one of these Awards, the other
      tandem Award is automatically terminated. SARs may also be granted as an
      independent Award separate from an Option. Each grant of a SAR shall be
      evidenced by an Award Agreement executed by the Company and the Participant
      and
      shall contain such terms and conditions and be in such form as the Board may
      from time to time approve, subject to the requirements of the Plan. The exercise
      price of the SAR shall not be less than the Fair Market Value of a share of
      Common Stock on the Date of Grant of the SAR.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Section
      7.2 Exercise and Payment.
      SARs
      granted under the Plan shall be exercisable in whole or in installments and
      at
      such times as shall be provided by the Board in the Award Agreement. Exercise
      of
      a SAR shall be by written notice to the Secretary of the Company at least two
      business days in advance of such exercise. The amount payable with respect
      to
      each SAR shall be equal in value to the excess, if any, of the Fair Market
      Value
      of a share of Common Stock on the exercise date over the exercise price of
      the
      SAR. Payment of amounts attributable to a SAR shall be made in shares of Common
      Stock.

    

    Section
      7.3 Restrictions.
      In the
      event a SAR is granted in tandem with an Incentive Stock Option, the Board
      shall
      subject the SAR to restrictions necessary to ensure satisfaction of the
      requirements under Section 422 of the Code. In the case of a SAR granted in
      tandem with an Incentive Stock Option to an Eligible Employee who owns more
      than
      10% of the combined voting power of the Company or its Subsidiaries on the
      date
      of such grant, the amount payable with respect to each SAR shall be equal in
      value to the applicable percentage of the excess, if any, of the Fair Market
      Value of a share of Common Stock on the Exercise date over the exercise price
      of
      the SAR, which exercise price shall not be less than 110% of the Fair Market
      Value of a share of Common Stock on the date the SAR is granted.

    

    ARTICLE
      VIII

    PERFORMANCE
      UNITS

    

    Section
      8.1 Grant of Awards.
      The
      Board may, from time to time, subject to the provisions of the Plan and such
      other terms and conditions as it may determine, grant Performance Units to
      Eligible Employees, Consultants and Eligible Directors. Each Award of
      Performance Units shall be evidenced by an Award Agreement executed by the
      Company and the Participant, and shall contain such terms and conditions and
      be
      in such form as the Board may from time to time approve, subject to the
      requirements of Section 8.2.

    

    Section
      8.2 Conditions of Awards.
      Each
      Award of Performance Units shall be subject to the following
      conditions:

    

    (a)
      Establishment of Award Terms. Each Award shall state the target, maximum and
      minimum value of each Performance Unit payable upon the achievement of
      performance goals.

    

    (b)
      Achievement of Performance Goals. The Board shall establish performance targets
      for each Award for a period of no less than a year based upon some or all of
      the
      operational, financial or performance criteria listed in Exhibit A attached.
      The
      Board shall also establish such other terms and conditions as it deems
      appropriate to such Award. The Award may be paid out in cash or Common Stock
      as
      determined in the sole discretion of the Board.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    ARTICLE
      IX

    PERFORMANCE
      BONUS

    

    Section
      9.1 Grant of Performance Bonus.
      The
      Board may from time to time, subject to the provisions of the Plan and such
      other terms and conditions as the Board may determine, grant a Performance
      Bonus
      to certain Eligible Employees selected for participation. The Board will
      determine the amount that may be earned as a Performance Bonus in any period
      of
      one year or more upon the achievement of a performance target established by
      the
      Board. The Board shall select the applicable performance target(s) for each
      period in which a Performance Bonus is awarded. The performance target shall
      be
      based upon all or some of the operational, financial or performance criteria
      more specifically listed in Exhibit A attached.

    

    Section
      9.2 Payment of Performance Bonus.
      In order
      for any Participant to be entitled to payment of a Performance Bonus, the
      applicable performance target(s) established by the Board must first be obtained
      or exceeded. Payment of a Performance Bonus shall be made within 60 days of
      the
      Board’s certification that the performance target(s) has been achieved unless
      the Participant has previously elected to defer payment pursuant to a
      nonqualified deferred compensation plan adopted by the Company. Payment of
      a
      Performance Bonus may be made in either cash or Common Stock as determined
      in
      the sole discretion of the Board.

    

    ARTICLE
      X

    STOCK
      ADJUSTMENTS

    

    In
      the
      event that the shares of Common Stock, as constituted on the effective date
      of
      the Plan, shall be changed into or exchanged for a different number or kind
      of
      shares of stock or other securities of the Company or of another corporation
      (whether by reason of merger, consolidation, recapitalization, reclassification,
      stock split, spin-off, combination of shares or otherwise), or if the number
      of
      such shares of Common Stock shall be increased through the payment of a stock
      dividend, or a dividend on the shares of Common Stock, or if rights or warrants
      to purchase securities of the Company shall be issued to holders of all
      outstanding Common Stock, then there shall be substituted for or added to each
      share available under and subject to the Plan, and each share theretofore
      appropriated under the Plan, the number and kind of shares of stock or other
      securities into which each outstanding share of Common Stock shall be so changed
      or for which each such share shall be exchanged or to which each such share
      shall be entitled, as the case may be, on a fair and equivalent basis in
      accordance with the applicable provisions of Section 424 of the Code; provided,
      however, with respect to Options, in no such event will such adjustment result
      in a modification of any Option as defined in Section 424(h) of the Code. In
      the
      event there shall be any other change in the number or kind of the outstanding
      shares of Common Stock, or any stock or other securities into which the Common
      Stock shall have been changed or for which it shall have been exchanged, then
      if
      the Board shall, in its sole discretion, determine that such change equitably
      requires an adjustment in the shares available under and subject to the Plan,
      or
      in any Award, theretofore granted, such adjustments shall be made in accordance
      with such determination, except that no adjustment of the number of shares
      of
      Common Stock available under the Plan or to which any Award relates that would
      otherwise be required shall be made unless and until such adjustment either
      by
      itself or with other adjustments not previously made would require an increase
      or decrease of at least 1% in the number of shares of Common Stock available
      under the Plan or to which any Award relates immediately prior to the making
      of
      such adjustment (the “Minimum Adjustment”). Any adjustment representing a change
      of less than such minimum amount shall be carried forward and made as soon
      as
      such adjustment together with other adjustments required by this Article X
      and
      not previously made would result in a Minimum Adjustment. Notwithstanding the
      foregoing, any adjustment required by this Article X which otherwise would
      not
      result in a Minimum Adjustment shall be made with respect to shares of Common
      Stock relating to any Award immediately prior to exercise, payment or settlement
      of such Award. No fractional shares of Common Stock or units of other securities
      shall be issued pursuant to any such adjustment, and any fractions resulting
      from any such adjustment shall be eliminated in each case by rounding downward
      to the nearest whole share.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    ARTICLE
      XI

    GENERAL

    

    Section
      11.1 Amendment or Termination of Plan.
      The
      Board may alter, suspend or terminate the Plan at any time provided, however,
      that it may not, without stockholder approval, adopt any amendment which would
      (i) increase the aggregate number of shares of Common Stock available under
      the
      Plan (except by operation of Article X), (ii) materially modify the requirements
      as to eligibility for participation in the Plan, or (iii) materially increase
      the benefits to Participants provided by the Plan.

    

    Section
      11.2 Termination of Employment; Termination of Service.
      If an
      Eligible Employee’s employment with the Company, a Subsidiary or an Affiliated
      Entity terminates as a result of death, Disability or Retirement, the Eligible
      Employee (or personal representative in the case of death) shall be entitled
      to
      purchase all or any part of the shares subject to any (i) vested Incentive
      Stock
      Option for a period of up to three months from such date of termination (one
      year in the case of death or Disability (as defined above) in lieu of the
      three-month period), and (ii) vested Nonqualified Stock Option during the
      remaining term of the Option. If an Eligible Employee’s employment terminates
      for any other reason, the Eligible Employee shall be entitled to purchase all
      or
      any part of the shares subject to any vested Option for a period of up to three
      months from such date of termination. In no event shall any Option be
      exercisable past the term of the Option. The Board may, in its sole discretion,
      accelerate the vesting of unvested Options in the event of termination of
      employment of any Participant.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    In
      the
      event a Consultant ceases to provide services to the Company or an Eligible
      Director terminates service as a director of the Company, the unvested portion
      of any Award shall be forfeited unless otherwise accelerated pursuant to the
      terms of the Eligible Director’s Award Agreement or by the Board. The Consultant
      or Eligible Director shall have a period of three years following the date
      he
      ceases to provide consulting services or ceases to be a director, as applicable,
      to exercise any Nonqualified Stock Options which are otherwise exercisable
      on
      his date of termination of service.

    

    Section
      11.3 Limited Transferability - Options.
      The
      Board may, in its discretion, authorize all or a portion of the Nonqualified
      Stock Options granted under this Plan to be on terms which permit transfer
      by
      the Participant to (i) the ex-spouse of the Participant pursuant to the terms
      of
      a domestic relations order, (ii) the spouse, children or grandchildren of the
      Participant (“Immediate Family Members”), (iii) a trust or trusts for the
      exclusive benefit of such Immediate Family Members, or (iv) a partnership or
      limited liability company in which such Immediate Family Members are the only
      partners or members. In addition, there may be no consideration for any such
      transfer. The Award Agreement pursuant to which such Nonqualified Stock Options
      are granted expressly provide for transferability in a manner consistent with
      this paragraph. Subsequent transfers of transferred Nonqualified Stock Options
      shall be prohibited except as set forth below in this Section 11.3. Following
      transfer, any such Nonqualified Stock Options shall continue to be subject
      to
      the same terms and conditions as were applicable immediately prior to transfer,
      provided that for purposes of Section 11.2 hereof the term “Participant” shall
      be deemed to refer to the transferee. The events of termination of employment
      of
      Section 11.2 hereof shall continue to be applied with respect to the original
      Participant, following which the Nonqualified Stock Options shall be exercisable
      by the transferee only to the extent, and for the periods specified in Section
      11.2 hereof. No transfer pursuant to this Section 11.3 shall be effective to
      bind the Company unless the Company shall have been furnished with written
      notice of such transfer together with such other documents regarding the
      transfer as the Board shall request. With the exception of a transfer in
      compliance with the foregoing provisions of this Section 11.3, all other types
      of Awards authorized under this Plan shall be transferable only by will or
      the
      laws of descent and distribution; however, no such transfer shall be effective
      to bind the Company unless the Board has been furnished with written notice
      of
      such transfer and an authenticated copy of the will and/or such other evidence
      as the Board may deem necessary to establish the validity of the transfer and
      the acceptance by the transferee of the terms and conditions of such
      Award.

    

    Section
      11.4 Withholding Taxes.
      Unless
      otherwise paid by the Participant, the Company, its Subsidiaries or any of
      its
      Affiliated Entities shall be entitled to deduct from any payment under the
      Plan,
      regardless of the form of such payment, the amount of all applicable income
      and
      employment taxes required by law to be withheld with respect to such payment
      or
      may require the Participant to pay to it such tax prior to and as a condition
      of
      the making of such payment. In accordance with any applicable administrative
      guidelines it establishes, the Board may allow a Participant to pay the amount
      of taxes required by law to be withheld from an Award by (i) directing the
      Company to withhold from any payment of the Award a number of shares of Common
      Stock having a Fair Market Value on the date of payment equal to the amount
      of
      the required withholding taxes or (ii) delivering to the Company previously
      owned shares of Common Stock having a Fair Market Value on the date of payment
      equal to the amount of the required withholding taxes. However, any payment
      made
      by the Participant pursuant to either of the foregoing clauses (i) or (ii)
      shall
      not be permitted if it would result in an adverse accounting charge with respect
      to such shares used to pay such taxes unless otherwise approved by the
      Board.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Section
      11.5 Change of Control.
      Notwithstanding any other provision in this Plan to the contrary, in the event
      of a Change of Control Event, the Board shall have the discretion to determine
      whether and to what extent to accelerate the vesting, exercise or payment of
      an
      Award.

    

    Section
      11.6 Amendments to Awards.
      Subject
      to the limitations of Article IV, such as the prohibition on repricing of
      Options, the Board may at any time unilaterally amend the terms of any Award
      Agreement, whether or not presently exercisable or vested, to the extent it
      deems appropriate. However, amendments which are adverse to the Participant
      shall require the Participant’s consent.

    

    Section
      11.7 Registration; Regulatory Approval.
      Following approval of the Plan by the stockholders of the Company as provided
      in
      Section 1.2 of the Plan, the Board, in its sole discretion, may determine to
      file with the Securities and Exchange Commission and keep continuously
      effective, a Registration Statement on Form S-8 with respect to shares of Common
      Stock subject to Awards hereunder. Notwithstanding anything contained in this
      Plan to the contrary, the Company shall have no obligation to issue shares
      of
      Common Stock under this Plan prior to the obtaining of any approval from, or
      satisfaction of any waiting period or other condition imposed by, any
      governmental agency which the Board shall, in its sole discretion, determine
      to
      be necessary or advisable.

    

    Section
      11.8 Right to Continued Employment.
      Participation in the Plan shall not give any Eligible Employee any right to
      remain in the employ of the Company, any Subsidiary, or any Affiliated Entity.
      The Company or, in the case of employment with a Subsidiary or an Affiliated
      Entity, the Subsidiary or Affiliated Entity reserves the right to terminate
      any
      Eligible Employee at any time. Further, the adoption of this Plan shall not
      be
      deemed to give any Eligible Employee or any other individual any right to be
      selected as a Participant or to be granted an Award.

    

    Section
      11.9 Reliance on Reports.
      Each
      member of the Board and each member of the Board shall be fully justified in
      relying or acting in good faith upon any report made by the independent public
      accountants of the Company and its Subsidiaries and upon any other information
      furnished in connection with the Plan by any person or persons other than
      himself or herself. In no event shall any person who is or shall have been
      a
      member of the Board be liable for any determination made or other action taken
      or any omission to act in reliance upon any such report or information or for
      any action taken, including the furnishing of information, or failure to act,
      if
      in good faith.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Section
      11.10 Construction.
      Masculine pronouns and other words of masculine gender shall refer to both
      men
      and women. The titles and headings of the sections in the Plan are for the
      convenience of reference only, and in the event of any conflict, the text of
      the
      Plan, rather than such titles or headings, shall control.

    

    Section
      11.11 Governing Law.
      The Plan
      shall be governed by and construed in accordance with the laws of the State
      of
      Delaware except as superseded by applicable Federal law.

    

    Section
      11.12 Other Laws.
      The
      Board may refuse to issue or transfer any shares of Common Stock or other
      consideration under an Award if, acting in its sole discretion, it determines
      that the issuance or transfer of such shares or such other consideration might
      violate any applicable law or regulation or entitle the Company to recover
      the
      same under Section 16(b) of the Exchange Act, and any payment tendered to the
      Company by a Participant, other holder or beneficiary in connection with the
      exercise of such Award shall be promptly refunded to the relevant Participant,
      holder or beneficiary.

    

    Section
      11.13 No Trust or Fund Created.
      Neither
      the Plan nor an Award shall create or be construed to create a trust or separate
      fund of any kind or a fiduciary relationship between the Company and a
      Participant or any other person. To the extent that a Participant acquires
      the
      right to receive payments from the Company pursuant to an Award, such right
      shall be no greater than the right of any general unsecured creditor of the
      Company.

    

    Section
      11.14 Conformance to Section 409A of the Code.
      To the
      extent that the Committee determines that any Award granted under the Plan
      is
      subject to Section 409A of the Code, the Award Agreement evidencing such Award
      shall incorporate the terms and conditions required by Section 409A of the
      Code.
      To the extent applicable, the Plan and Award Agreements shall be interpreted
      in
      accordance with Section 409A of the Code and Department of Treasury regulations
      and other interpretive guidance issued thereunder, including without limitation
      any such regulations or other guidance that may be issued after the Effective
      Date. Notwithstanding any provision of the Plan to the contrary, in the event
      that the Committee determines that any Award may be subject to Section 409A
      of
      the Code and related Department of Treasury guidance, the Committee may adopt
      such amendments to the Plan and the applicable Award Agreement or adopt other
      policies and procedures (including amendments, policies and procedures with
      retroactive effect), or take any other actions, that the Committee determines
      are necessary or appropriate to (i) exempt the Award from Section 409A of the
      Code or (ii) comply with the requirements of Section 409A of the Code and
      related Department of Treasury guidance.

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