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    BUSINESS
ADVISORY BOARD

    CONSULTING
AGREEMENT

    

    

    This Business Advisory Board Consulting
Agreement (the “Agreement”)
is made as of this 22nd day of
June, 2009, between Shrink Nanotechnologies, Inc., a Delaware corporation (the
"Company"),
and Heiner Dreismann (the "Consultant")
and shall be effective upon execution by the Company and the Consultant (the
"Effective
Date").  The Company and the Consultant are collectively
referred to herein as the “Parties.”

    

    The Consultant has a long history of
experiences and successes in a business area which shall broadly be referred to
as the diagnostics, life sciences and biotech fields, and these fields are of
particular interest to the Company.  The Company wishes to retain the
Consultant in a consulting capacity and as a member of one or more panels (a
“Panel”)
of the Company's Business Advisory Board (the “BAB”)
and the Consultant desires to perform such consulting services. Accordingly, the
Parties agree as follows:

    

    1.           Services.  The
Consultant will advise the Company's management, employees and agents, at
reasonable times, in matters related to the relevant field of interest (“Field of
Interest”), as requested by the Company and set forth in Exhibit A
attached hereto.Consultant will provide consulting services, which shall amount
to not less than two days per month, as reasonably requested by the Company and
as the Consultant’s schedule permits.  Consultation may be sought by
the Company over the telephone, in person, at the Company's offices or another
reasonable location or through written correspondence, and will involve
reviewing activities and developments in the Field of
Interest.  Additionally, Consultant may be requested to attend, to the
extent Consultant’s schedule permits, one or more in person meetings with other
members of a Panel or the BAB, upon reasonable notice being given to the
Consultant, in keeping with the terms of this Agreement.

    

    1.1           Strategic
Parties.  As a part of this Agreement, Consultant is to assist the
Company in developing new relevant business relationships with strategic parties
in the United States and around the world.  For the purposes Section
3.3 of this Agreement, any such party shall be referred to as a “Strategic
Party” and such a Strategic Party shall retain such a definition under
Section 3.3 of this Agreement until the earlier date of either (i) two years
subsequent to the Term, or (ii) immediately following the date which Consultant
is not serving as a member of the Company’s Board of Directors.

    

    1.1.1           Consultant
shall provide Company with reasonable notice (“SP
Notice”) of a referral to a potential Strategic Party.  For
five (5) business days following a SP Notice, Company shall have the right to
disclose to Consultant any prior business contacts or relationships with a
potential Strategic Party (a “Notice of
Prior Contacts”).  In the event Company fails to provide a
Notice of Prior Contacts, such a potential Strategic Party shall become a
Strategic Party under Section 3.3 of this Agreement.

    

    2.           Term and
Termination.  The term of this Agreement will begin on the
Effective Date of this Agreement and will end on the first year anniversary
(based on a 360 day year containing four (4) ninety (90) day quarterly periods)
of this Agreement or upon earlier termination as provided below (the "Term");
provided that the Term may be renewed, by mutual assent by the Parties, for
successive one-year periods. This Agreement may be terminated at any time upon
sixty (60) days written notice by either party.  The Consultant
agrees, following the termination of this Agreement or upon earlier request by
the Company, to promptly return all drawings, tracings, and all visual or
written materials in the Consultant’s possession that were supplied by the
Company in conjunction with the Consultant’s consulting services under this
Agreement, or generated by the Consultant in the performance of consulting
services under this Agreement.

    

    3.           Compensation.  The
right, title and interest in the Compensation discussed in this Section 3 shall
be earned, vest and be due and payable, during the Term, in equal quarterly
amounts, commencing on July 15, 2009, on the first day of the quarterly period
immediately subsequent to a quarterly period in which this Agreement was
effective.  The Consultant shall be compensated for services rendered
as set follows:

    

    3.1           Every
quarter and at the option of the Consultant, either: (i) $20,000 (the “Quarterly
Cash Fee”), or (ii) 20,000 common shares of Company stock (the “Quarterly
Stock Fee”).

    

    3.1.1           Quarterly
Cash Fee.  At any time subsequent to the end of a quarterly period, at
the time such a quarterly payment under Section 3.1 is due, Consultant shall
only be entitled to receive a maximum amount of Quarterly Cash Fees derived by
multiplying: (i) fifteen percent (15%) and (ii) the aggregate of: (A) the (net
of fees) amount, exclusive of a pass through investment, of any new debt or
equity investment into the Company by a non-affiliated third party (a “New
Investment”) during the Term of this Agreement; and (B) all Strategic
Party Cash (referred to in Section 3.3) received by the Company during the Term
of this Agreement.  A non-affiliated third party shall mean a party
who is not presently an obligee of the Company or a Company
shareholder.  To be
clear, for example, if during the Term, a New Investment was made which provided
the Company with $1,000,000 (net of fees), unless the Company was provided a
written election from consultant stating all fees due under this Agreement would
be paid in Quarterly Stock Fees, exactly $120,000 (i.e. the total amount of all
Quarterly Cash Fees under this Agreement) of this New Investment would be made
available to, and reserved for, Consultant to pay Quarterly Cash
Fees.  Additionally, if the above example New Investment was only
$500,000, and there were no additional New Investments made during the Term,
then a maximum of $75,000 would be available to be paid to Consultant under this
Section 3.1.1 in Quarterly Cash Fees.

    

    3.1.2           Deferral.  To
the extent the Company has not completed a New Investment at the time Consultant
may exercise a right related to the above Sections 3.1 and 3.1.1, Consultant may
elect to defer such rights until the date any subsequent quarterly payment under
Section 3.1 is due (a “Deferral”).  Once
any compensation under this Section 3.1 is earned, the termination of this
Agreement by either party or by mutual agreement, shall not affect the Company’s
obligations to make such payments pursuant to Section 3.1.  However,
by the 90th day
subsequent to the end of the Term, Consultant shall have exercised all rights
due under this Agreement related to Section 3.1.

    

    3.2           Consultant
understands that any restricted shares, and any securities issued in respect
thereof, shall bear the following legend:

    

    “THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A
VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF.  THESE
SECURITIES MAY NOT BE OFFERED, SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND ANY APPLICABLE
STATE SECURITIES LAWS OR AN EXEMPTION FROM SUCH REGISTRATION IS
AVAILABLE.

    

    3.3           Additional
Success Fees.  The below success fees shall be paid within ninety days
subsequent to the end of the Company’s fiscal year end (December 31) from cash
received by the Company from either: (i) sublicensing agreements the Company
enters into with Strategic Parties or (ii) revenues generated from the sale of
goods or services to a Strategic Party.  Cash received by the Company
related to this Section 3.3 shall be referred to as “Strategic
Party Cash.”  Consultant shall be paid the greater dollar value
in Success Fees as follows:

    

    3.3.1           Net
of all royalties and dividends payments, five percent (5%) of sublicensing
Strategic Party Cash received by the Company from a Strategic Party;
or

    

    3.3.2           Net
of costs of goods or services and a pro-rata allocation of sales, general and
administrative costs, three percent (3%) of the revenues received by the Company
from the sale of goods and services to or through a Strategic
Party.

    

    3.3.3           Under
this Section 3.3, 3.3.1 and 3.3.2, the Company shall receive a credit of an
amount equal to the amount of Quarterly Cash Fees paid to Consultant at the time
a payment under Section 3.3, 3.3.1 and 3.3.2 is due, and in any event, such an
amount shall not exceed $80,000.

    

    3.4.           The
maximum amount of payments which may become due to Consultant under Sections
3.3, 3.3.1, 3.3.2 and 3.3.3 is five million dollars ($5,000,000).

    

    3.5           The
Company shall reimburse the Consultant for all pre-approved and reasonable
expenses incurred in the performance of this Agreement.

    

    4.           Certain Other
Contracts.  Company is aware that Consultant is involved in
several professional engagements with various commercial
entities.  The Consultant will not disclose to the Company any
information that the Consultant is obligated to keep secret pursuant to an
existing confidentiality agreement with a third party, and nothing in this
Agreement will impose any obligation on the Consultant to the
contrary.  The consulting work performed hereunder will not be
conducted on time that is required to be devoted to any other third party. The
Consultant shall not use the funding, resources and facilities of the any other
third party to perform consulting work hereunder and shall not perform the
consulting work hereunder in any manner that would give any third party rights
to the product of such work.  The Consultant has disclosed and, during
the Term, will disclose to the President of the Company any conflicts between
this Agreement and any other relevant agreements binding the
Consultant.

    

    5.           Direction of Projects and
Inventions to the Company. Subject to the Consultant's obligations under
any confidentiality or other written obligations to third parties (including
academic institutions which Consultant is employed by), during the Term of this
Agreement, the Consultant will use his best efforts to disclose to the President
of the Company, on a confidential basis, technology and product opportunities
which come to the attention of the Consultant in the Field of Interest, and any
invention, improvement, discovery, process, formula or method or other
intellectual property relating to or useful in, the Field of Interest
(collectively "New
Discoveries"), whether or not patentable or copyrightable, and whether or
not discovered or developed by Consultant.

    

    6.           Inventions Discovered by the
Consultant While Performing Services Hereunder. The Consultant will
promptly and fully disclose to the President of the Company any invention,
improvement, discovery, process, formula, technique, method, trade secret, or
other intellectual property, whether or not patentable, whether or not
copyrightable (collectively, "Invention")
made, conceived, developed, or first reduced to practice by the Consultant,
either alone or jointly with others, while performing services hereunder. The
Consultant hereby assigns to the Company all of his right, title and interest in
and to any such Inventions. The Consultant will execute any documents necessary
to perfect the assignment of such Inventions to the Company and to enable the
Company to apply for, obtain, and enforce patents or copyrights in any and all
countries on such Inventions. The Consultant hereby irrevocably designates the
Secretary of the Company as his agent and attorney-in-fact to execute and file
any such document and to do all lawful acts necessary to apply for and obtain
patents and copyrights, and to enforce the Company's rights under this
paragraph. This Section 6 will survive the termination of this
Agreement.

    

    7.           Confidentiality.

    

    7.1           The
Consultant acknowledges that, during the course of performing his services
hereunder, the Company will be disclosing information to the Consultant, and the
Consultant will be developing information related to the Field of Interest,
Inventions, projects, products, potential customers, personnel, business plans,
and finances, as well as other commercially valuable information (collectively
"Confidential
Information"). The Consultant acknowledges that the Company's business is
extremely competitive, dependent in part upon the maintenance of secrecy, and
that any disclosure of the Confidential Information would result in serious harm
to the Company.  The Consultant agrees that the Confidential
Information will be used by the Consultant only in connection with consulting
activities hereunder, and will not be used in any way that is detrimental to the
Company.  The Consultant agrees not to disclose, directly or
indirectly, the Confidential Information to any third person or entity, other
than representatives or agents of the Company. The Consultant will treat all
such information as confidential and proprietary property of the
Company.  The term "Confidential
Information" does not include information that (i) is or becomes
generally available to the public other than by disclosure in violation of this
Agreement, (ii) was within the relevant party's possession prior to being
furnished to such party, (iii) becomes available to the relevant party on a
non-confidential basis, or (iv) was independently developed by the relevant
party without reference to the information provided by the
Company.  The Consultant may disclose any Confidential Information
that is required to be disclosed by law, government regulation or court order.
If disclosure is required, the Consultant will give the Company advance notice
so that the Company may seek a protective order or take other action reasonable
in light of the circumstances.  Upon termination of this Agreement,
the Consultant will promptly return to the Company all materials containing
Confidential Information as well as data, records, reports and other property,
furnished by the Company to the Consultant or produced by the Consultant in
connection with services rendered hereunder, together with all copies of any of
the foregoing. Notwithstanding such return, the Consultant shall continue to be
bound by the terms of the confidentiality provisions contained in this Section 7
for a period of two years after the termination of this Agreement.

    

    7.2           If
the Consultant has a conflict of interest, or potential conflict of interest,
with respect to any matter presented at a meeting of the BAB, he shall excuse
himself from the discussion of such matter and at the time of the execution of
this Agreement, Consultant shall disclose and describe all potential conflicts
of interest that may arise from the execution of this Agreement with respect to
prior engagements Consultant is a party to.

    

    7.3           The
attached Exhibit C Non-Disclosure Agreement shall be incorporated herein as if
it were a term of the same Agreement.

    

    8.           Freedom to
Publish.

    

    8.1           Notwithstanding
the confidentiality provisions, or any other provision, of this Agreement, the
Consultant may publish and make oral presentations of the results of the
Consultant's work performed pursuant to this Agreement under the terms set forth
in this Section 8.

    

    8.2           The
Consultant acknowledges that publication or oral disclosure of any Invention or
other work prior to filing for patent or copyright protection could result in
the complete loss of any commercial value of the Consultant's research to the
Company, and/or the Consultant, as the case may be. The Consultant will provide
the Company with sufficient disclosure regarding Inventions owned by the Company
under Section 6 at least 90 days prior to publication to allow the Company to
evaluate such disclosure; Consultant will work with the Company to file patent
or copyright applications prior to disclosure or publication, or to modify such
publication if such disclosure regarding Inventions owned by the Company under
Section 6 would materially affect the business of the Company.

    

    9.           Use of Name. It is
understood that the name of the Consultant will appear in disclosure documents
required by securities laws, and in other regulatory, administrative filings and
public relations materials in the ordinary course of the Company's business. The
above-described uses will be deemed to be acceptable uses.

    

    10.           No Conflict: Valid and
Binding. The Consultant represents that neither the execution of this
Agreement nor the performance of the Consultant's obligations under this
Agreement will result in a violation or breach of any other agreement by which
the Consultant is bound. The Company represents that this Agreement has been
duly authorized and executed and is a valid and legally binding obligation of
the Company, subject to no conflicting agreements.

    

    11.           Notices. Any notice
provided under this Agreement shall be in writing and shall be deemed to have
been effectively given (i) upon receipt when delivered personally, (ii) one day
after sending when sent by private express mail service (such as Federal
Express), or (iii) 5 days after sending when sent by regular mail to the
following address:

    

    
      	
              In the case of the Company:

            	
              In the case of the
    Consultant:

            
	 
      	 
      
	
              Shrink
      Nanotechnologies, Inc.

            	
              Attention:
      Heiner Dreismann

            
	
              2038
      Corte del Nogal, Suite 110

            	
              4253 Golden Oak
      Court

            
	
              Carlsbad,
      California 92011

            	
              Danville, California 94506

            

    

    

    or to
other such address as may have been designated by the Company or the Consultant
by notice to the other given as provided herein.

    

    12.           Independent Contractor:
Withholding. The Consultant will at all time be an independent
contractor, and as such will not have authority to bind the Company. The Parties
acknowledge that this Agreement is not a contract within the meaning of Section
2750 of the California Labor Code, and the Consultant is not an employee of the
Company for any purpose under the California Labor Code.  Consultant
will not act as an agent nor shall he be deemed to be an employee of the Company
for the purposes of any employee benefit program, unemployment benefits, or
otherwise. The Consultant recognizes that no amount will be withheld from his
compensation for payment of any federal, state, or local taxes and that the
Consultant has sole responsibility to pay such taxes, if any, and file such
returns as shall be required by applicable laws and regulations. Consultant
shall not enter into any agreements or incur any obligations on behalf of the
Company.

    

    13.           Assignment. Due to
the personal nature of the services to be rendered by the Consultant, the
Consultant may not assign this Agreement. The Company may assign all rights and
liabilities under this Agreement to a subsidiary or an affiliate or to a
successor to all or a substantial part of its business and assets without the
consent of the Consultant. Subject to the foregoing, this Agreement will inure
to the benefit of and be binding upon each of the heirs, assigns and successors
of the respective parties.

    

    14.           Severability. If any
provision of this Agreement shall be declared invalid, illegal or unenforceable,
such provision shall be severed and the remaining provisions shall continue in
full force and effect.

    

    15.           Remedies. The
Consultant acknowledges that the Company would have no adequate remedy at law to
enforce Sections 4, 5, 6 and 7 hereof. In the event of a violation by the
Consultant of such Sections, the Company shall have the right to obtain
injunctive or other similar relief, as well as any other relevant damages,
without the requirement of posting bond or other similar measures.

    

    16.           Governing Law; Entire
Agreement; Amendment. This Agreement shall be governed by the laws of the
State of California applicable to agreements made and to be performed within
such State, represents the entire understanding of the parties, supersedes all
prior agreements between the parties, and may only be amended in
writing.

    

    IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date first
written above.

    

    Shrink
Nanotechnologies,
Inc.                                                                        
                        Consultant

    

    

    

    ____________________________                                                                                     _____________________________

    By: Mark
L.
Baum                                                                                                                    
  By: Heiner Dreismann

    Its:
CEO                                                                                                                                   
    an individual

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
A

    

    

    Fields of
Interest

    

    The
Consultant has reviewed information provided by the Company and other
information which may be publicly available on the world-wide-web, and is
familiar with the specific research efforts and business projects that the
Company is engaged in and is actively pursuing.  Additionally,
Consultant has previously met with representatives of the Company on an informal
basis and has some basic understanding of the technology the Company has access
to and the projects that the Company is pursuing.

    

    The
Company wishes to pursue the development of strategic relationships in order to
make its technologies commercially relevant and available in the US domestic and
international marketplaces.  More specifically, the Company is
interested in developing strategic relationships in the solar, biotech and
biomedical businesses.

    

    Description of
Services

    

    Assist
management of the Company by:

    

    1.           Evaluate
merger and acquisition opportunities in the diagnostics field;

    2.           Assist
in shaping the general business direction of the Company;

    3.           Participate
in meetings with potential investors;

    4.           Recruiting
of Business Advisory Board Members, prospective Boardmembers to the Company
Board ofDirectors and Consultants to the Company;

    5.           Recruiting
full-time management and personnel to the Company;

    6.           Reviewing
the feasibility of the business goals of the Company and developing strategies
for achievingthem;

    7.           Identifying
and developing relationships with potential strategic partners;

    8.           Identifying,
reviewing and advising the Company, in a form (oral, writing or other) that is
generallyacceptable by scientists advising businesspersons in order to be
reasonably commercially useful, as to themost recent scientific advances in the
Field of Interest, as well as other scientific developments and intellectual
property in the Field of Interest; and

    9.           Providing
advice, support, theories, techniques and improvements in the Company's
commercial productdevelopment activities.

    

    CV

    

    See
Exhibit B

    

    Prior Engagements and
Potential Conflicts of Interest*

    

    * Only include engagements
which are either (i) within the past 3 years, and (ii) relevant engagements
prior to the past three years which may affect the Consultant’s performance
under this Agreement

    

    Name of
Company                                                                                                           Area
of Consultation

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
B

    Curriculum
Vitae of Heiner Dreismann

    

    Heiner Dreismann,
Ph.D.

    4253 Golden Oak
Ct

    Danville, CA 94506

    phone:
925-858-8088

    e-mail:
heiner.dreismann@sbcglobal.net

    

    

    Senior
Management Executive

    International
executive with more than 24 years experience in biotech and healthcare
companies. Versatile and entrepreneurial with a proven track record in general
management with P&L responsibility as well as management of corporate
functions such as research and development, manufacturing, marketing, business
development, licensing, mergers and acquisitions and several board memberships
of public and private companies.

    

    PROFESSIONAL
EXPERIENCE:

    

    President and
CEO                                                                                                                                                        
  2006 -
present

    Vectrant
Technologies, Inc.

    

    Board
Positions                                                                                                                                                                
2006 -
present

    Serving
on boards of Nanogen, GeneNews, Vectrant Technologies,

    Sirius
Genomics, Smart Holograms (Chairman),

    OxFord
BioDynamics, Magellan Diagnostics, Singulex, MedBioGene,

    BioHelix,
Celula,Inc.

    

    President and
CEO                                                                                                                                                      
      2000 - 2006

    Roche
Molecular Systems, Inc.

    

    
      	
              ·  

            	
              Grew
      the RMS molecular IVD business from $640 million to $1.2 billion annually
      by creating an industry leading product portfolio and spearheading global
      marketing and sales efforts.

            

    

    
      	
              ·  

            	
              Attracted
      corporate investments in excess of $1 billion and lead a staff of
      1600.

            

    

    
      	
              ·  

            	
              Expanded
      the PCR business into four new areas (Women’s Health, Microbiology,
      Oncology and Genomics).

            

    

    
      	
              ·  

            	
              Doubled
      the overall value of Roche Molecular Diagnostics during a six year
      period.

            

    

    

    Head
of Global Business
Development                                                                                                                                2000

    Roche
Diagnostics

    

    
      	
              ·  

            	
              Responsible
      for Global Business Development for the $7 Billion IVD business of Roche
      Diagnostics, including global strategy, mergers and acquisitions, and
      licensing/patents.

            

    

    
      	
              ·  

            	
              Led
      the strategic vision process and established a new strategic architecture
      for Roche Diagnostics.

            

    

    

    Head
of Integration
Office                                                                                                                                             
     1997 - 1999

    Roche
Diagnostics

    

    
      	
              ·  

            	
              Managed
      the merger of Roche Diagnostics’ IVD businesses and Boehringer
      Mannheim.

            

    

    
      	
              ·  

            	
              Masterminded
      the organizational structure and business strategy of the newly formed
      Roche Diagnostics and coordinated the implementation of all integration
      plans.

            

    

    
      	
              ·  

            	
              The
      Roche-Boehringer union is considered to be the most successful industry
      merger in recent years.

            

    

    

    Head
of Business Unit PCR
Europe                                                                                                                       
                  1991
- 1997

    Roche
Diagnostics

    

    
      	
              ·  

            	
              Managed
      the introduction of PCR IVD technology for Roche in
      Europe.

            

    

    
      	
              ·  

            	
              Responsible
      for the global product portfolio planning and business strategy
      for Roche Molecular Systems.

            

    

    

    Head
of Business Unit
Microbiology                                                                                                                            1990
- 1991

    Roche
Diagnostics

    

    
      	
              ·  

            	
              Supervised
      a global microbiology business with $60 million in annual revenues,
      including research, development, manufacturing and
    marketing.

            

    

    
      	
              ·  

            	
              Proposed
      the divestiture of the microbiology business and located buyer (Becton
      Dickinson).

            

    

    
      	
              ·  

            	
              Managed
      the entire transaction and executed Roche’s complete integration
      plan.

            

    

    

    Vice
President R&D Infectious
Diseases                                                                                                             
     1987 - 1990

    Roche
Diagnostics

    .

    
      	
              ·  

            	
              Head
      of global R&D for infectious disease products for Roche Diagnostics;
      included responsibility for development of IVD instrumentation for
      infectious diseases.

            

    

    

    Vice
President of
Manufacturing                                                                                                                                 1985
- 1987

    Roche
Diagnostics

    

    
      	
              ·  

            	
              Supervised
      manufacturing operations for microbiological
  diagnostics.

            

    

    

    Director
of R&D
Microbiology                                                                                                                                   1983
- 1985

    Roehm
GmbH

    Roehm
was a leading biotechnology company engaged in manufacturing industrial
enzymes.

    

    
      	
              ·  

            	
              Responsible
      for genetic engineering and enzyme yield improvement for bacterial and
      fungal manufacturing strains.

            

    

    

    Post-Doctoral
Fellowship                                                                                                                                                
      1983

    French
Center for Nuclear Research in Saclay (near Paris)

    

    
      	
              ·  

            	
              Genetic
      research with gram-negative
bacteria.

            

    

    

    EDUCATION/
AWARDS:

    

    
      	
              Ø  

            	
              Diploma
      in Biology (Masters Degree), Westfaelische Wilhelms University,
      Muenster

            

    

    
      	
              Ø  

            	
              Ph.D.
      Degree in Microbiology/Molecular Biology, Westfaelische Wilhelms
      University, Muenster (summa cum
laude)

            

    

    
      	
              Ø  

            	
              Published
      several scientific articles, membership in professional associations
      (EDMA, American Society for Microbiology, New York Academy of
      Sciences)

            

    

    
      	
              Ø  

            	
              University
      of Muenster award for outstanding Ph.D.
thesisExhibit 10

Exhibit 10.1

INTERNET CAPITAL GROUP, INC.

SECOND AMENDED AND RESTATED 2005 OMNIBUS EQUITY COMPENSATION PLAN

(as amended and restated, effective June 19, 2009)

	 Purpose

 

The purpose of the Plan is to provide designated (i) Employees of ICG and its Subsidiaries, (ii) Non-Management Directors of ICG and its Subsidiaries and (iii) Consultants who perform services for ICG and its Subsidiaries, with the opportunity to receive grants of Options, SARs, Stock Units, Performance Shares, Stock Awards, Dividend Equivalents and Other Stock-Based Awards.  ICG believes that the Plan will encourage the Participants to contribute materially to the growth of ICG, thereby benefiting ICG's stockholders, and will align the economic interests of the Participants with those of the stockholders.

 

	 Definitions

 

Whenever used in this Plan, the following terms will have the respective meanings set forth below:

 

	"Board" means ICG's Board of Directors as constituted from time to time.

 

	"Change of Control" means the first to occur of any of the following events:  

  

	Any "person" (as such term is used in sections 13(d) and 14(d) of the Exchange Act) becomes a "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of ICG representing a majority of the voting power of the then outstanding securities of ICG, except where the acquisition is approved by the Board; or 

 

	the consummation of (A) a merger or consolidation of ICG with another corporation where the stockholders of ICG, immediately prior to the consummation of the merger or consolidation, will not beneficially own, immediately after the merger or consolidation, shares of Stock entitling such stockholders to more than 50% of all votes to which all stockholders of the surviving corporation would be entitled in the election of directors, (B) the sale or other disposition of all or substantially all of the assets of ICG, or (C) a liquidation or dissolution of ICG. 

 

	"Code" means the Internal Revenue Code of 1986, as amended.

 

	"Committee" means the Compensation Committee of the Board or its delegate or its successor, or such other committee appointed by the Board to administer the Plan or its delegate or its successor.  Notwithstanding the foregoing, with respect to Grants to Employees that are intended as "qualified performance-based compensation" (as defined under section 162(m) of the Code), as well as to Employees who are officers of the Company, the Committee shall consist of two or more persons appointed by the Board, all of whom shall be "outside directors" (as defined under section 162(m) of the Code and related Treasury regulations) and "non-employee directors" as defined under Rule 16b-3 promulgated under the Exchange Act.  

 

	"Company" means ICG and any Subsidiary.

 

	"Consultants" means advisors and consultants who perform services for the Company.  

 

	"Date of Grant" means the date a Grant is effective; provided, however, that no retroactive Grants will be made.

 

	"Dividend Equivalent" means an amount determined by multiplying the number of shares of Stock, Performance Shares or Stock Units subject to a Grant by the per-share cash dividend, or the per-share fair market value (as determined by the Committee) of any dividend in consideration other than cash, paid by ICG on its Stock on a dividend payment date. 

 

	"Effective Date" means June 11, 2005, subject to approval by the stockholders of ICG.

 

	"Employee" means an employee of the Company (including an officer or director who is also an employee).

 

	"Exchange Act" means the Securities Exchange Act of 1934, as amended.

 

	"Fair Market Value" of Stock means (i) if the shares of Stock are publicly traded, (A) if the principal trading market for the shares of Stock is a national securities exchange, the last reported sale price thereof on such date or, if there were no trades on that date, the next date upon which a sale is reported, or (B) if the shares of Stock are not publicly traded on such exchange or market, the mean between the last reported "bid" and "asked" prices of a share of Stock on such date as reported on Nasdaq or, if not so reported, as reported by the National Daily Quotation Bureau, Inc. or as reported in a customary financial reporting service, as applicable and as the Committee determines, or (ii) if the shares of Stock are not publicly traded or, if publicly traded, are not subject to reported transactions or "bid" or "asked" quotations as set forth above, as determined in good faith by the Committee, provided, that, if the shares of Stock are publicly traded, the Committee may make such discretionary determinations where the shares of Stock have not been traded for 10 trading days.  Notwithstanding the foregoing, in the case of a broker-assisted exercise pursuant to Section 7(g), the Fair Market Value will be the actual sale price of the shares of Stock issued upon exercise of the Option. 

 

	"Grant" means an Option, SAR, Stock Unit, Performance Share, Stock Award, Dividend Equivalent or Other Stock-Based Award granted under the Plan.

 

	"Grant Instrument" means the written agreement that sets forth the terms and conditions of a Grant, including all amendments thereto.

 

	"Incentive Stock Option" means a stock option that is intended to meet the requirements of section 422 of the Code, as described in Section 7.

 

	"ICG" means Internet Capital Group, Inc., a Delaware corporation, or any successor thereto.

 

	"Non-Management Director" means a member of the Board, or a member of the board of directors of a Subsidiary, who is not a member of management of the Company.

 

	"Nonqualified Stock Option" means a stock option that is not intended to meet the requirements of section 422 of the Code, as described in Section 7.

 

	"Option" means an Incentive Stock Option or Nonqualified Stock Option to purchase shares of Stock at an Option Price for a specified period of time.

 

	"Option Price" means an amount per share of Stock purchasable under an Option, as designated by the Committee.

 

	"Other Stock-Based Award" means any Grant based on, measured by or payable in Stock (other than Grants described in Sections 7, 8, 9, 10, 11 and 12), as described in Section 13.

 

	"Parent" means a "parent corporation," as defined in section 424(e) of the Code, of ICG.

 

	"Participant" means an Employee, Consultant or Non-Management Director designated by the Committee to participate in the Plan.

 

	"Performance Shares" means an award of phantom shares, representing one or more shares of Stock, as described in Section 10.

 

	"Plan" means this Internet Capital Group, Inc. 2005 Omnibus Equity Compensation Plan, as in effect from time to time.

 

	"Stock" means the common stock, par value $0.001 per share, of ICG or such other securities of ICG as may be substituted for Stock pursuant to Sections 5(d) or 18.

 

	"SAR" means an award of a stock appreciation right, as described in Section 8.

 

	"Stock Award" means an award of Stock, as described in Section 11.

 

	"Stock Unit" means an award of a phantom unit, representing one or more shares of Stock, as described in Section 9.

 

	"Subsidiary" means any entity in which ICG has a greater than 50% economic or voting interest.  For purposes of Sections 7(c), (d) and (h), "Subsidiary" shall mean a "subsidiary corporation," as defined in section 424(f) of the Code, of ICG.

 

	"Successor Participant" means the personal representative or other person entitled to succeed to the rights of the Participant in accordance with Section 17.

 

	 Administration

 

	 Committee.  The Plan shall be administered and interpreted by the Committee.  Ministerial functions may be performed by employees of the Company.

 

	 Committee Authority.  The Committee shall have the sole authority to (i) determine the Employees, Consultants and Non-Management Directors to whom Grants shall be made under the Plan, (ii) determine the type, size and terms of the Grants to be made to each Participant, (iii) determine the time when the Grants will be made and the duration of any applicable exercise or restriction period, including the criteria for exercisability and the acceleration of exercisability, (iv) amend the terms of any previously issued Grant, subject to the provisions of Section 20, (v) adopt guidelines separate from the Plan that set forth the specific terms and conditions for Grants under the Plan, and (vi) deal with any other matters arising under the Plan.  However, the Board may ratify or approve any Grants as it deems appropriate and has the authority to administer the Plan.  To the extent that the Board makes Grants and administers the Plan, references in the Plan to the "Committee" shall be deemed to refer to the Board.

 

	 Committee Determinations.  The Committee shall have full power and express discretionary authority to administer and interpret the Plan, to make factual determinations and to adopt or amend such rules, regulations, agreements and instruments for implementing the Plan and for the conduct of its business as it deems necessary or advisable, in its sole discretion.  The Committee's interpretations of the Plan and all determinations made by the Committee pursuant to the powers vested in it hereunder shall be conclusive and binding on all persons having any interest in the Plan or in any awards granted hereunder.  All powers of the Committee shall be executed in its sole discretion, in the best interest of ICG, not as a fiduciary, and in keeping with the objectives of the Plan and need not be uniform as to similarly situated individuals.

 

	 Grants

 

Grants under the Plan may consist of Options, SARs, Stock Units, Performance Shares, Stock Awards, Dividend Equivalents and Other Stock-Based Awards.  All Grants shall be subject to the terms and conditions set forth herein and to such other terms and conditions consistent with the Plan as the Committee deems appropriate and as are specified in writing by the Committee in separate guidelines or to the individual in the Grant Instrument or an amendment to the guidelines or Grant Instrument.  The Committee shall approve the form and provisions of each Grant Instrument.  All Grants shall be made conditional upon the Participant's acknowledgement, in writing or by acceptance of the Grant, that all decisions and determinations of the Committee shall be final and binding on the Participant, his or her beneficiaries, and any other person having or claiming an interest under such Grant.  Grants under a particular Section of the Plan need not be uniform as among the Participants. 

 

	 Shares of Stock Subject to the Plan

 

	 Shares Authorized.  The total aggregate number of shares of Stock that may be issued or transferred under the Plan is 7,600,000 shares, subject to adjustment as described below.  The shares may be authorized but unissued shares of Stock or reacquired shares of Stock, including shares purchased by ICG on the open market for purposes of the Plan.  Grants paid in cash shall not count against the foregoing share limits. 

 

	 Share Counting.  For administrative purposes, when the Committee makes a Grant payable in Stock, the Committee shall reserve shares of Stock equal to the maximum number of shares of Stock that may be payable under the Grant.  If and to the extent Options or SARs granted under the Plan terminate, expire, or are canceled, forfeited, exchanged or surrendered without having been exercised or if any Stock Awards, Stock Units, Performance Shares, Dividend Equivalents or Other Stock-Based Awards are forfeited or terminated, or otherwise not paid in full, the shares subject to such Grants which have not been issued shall again be available for purposes of the Plan.  Shares of Stock surrendered in payment of the Option Price of an Option or withheld for purposes of satisfying the Company's minimum tax withholding obligations with respect to Grants under the Plan shall again be available for issuance or transfer under the Plan.  To the extent that any Grants are paid in cash, and not in shares of Stock, any shares previously reserved for issuance or transfer pursuant to such Grants shall again be available for issuance or transfer under the Plan.

 

	 Individual Limits.  All Grants under the Plan, other than Dividend Equivalents, shall be expressed in shares of Stock.  The maximum aggregate number of shares of Stock with respect to which all Grants, other than Dividend Equivalents, may be made under the Plan to any individual during any calendar year shall be 1,000,000 shares, subject to adjustment as described below.  A Participant may not accrue Dividend Equivalents during any calendar year in excess of $1,000,000.  The individual limits described in this subsection (c) shall apply without regard to whether the Grants are to be paid in Stock or in cash.  All cash payments (other than Dividend Equivalents) shall equal the Fair Market Value of the shares of Stock to which the cash payment relates.  

 

	 Adjustments.  If there is any change in the number or kind of shares of Stock outstanding (i) by reason of a stock dividend, spinoff, recapitalization, stock split, or combination or exchange of shares, (ii) by reason of a merger, reorganization or consolidation, (iii) by reason of a reclassification or change in par value, or (iv) by reason of any other extraordinary or unusual event affecting the outstanding Stock as a class without ICG's receipt of consideration, or if the value of outstanding shares of Stock is substantially reduced as a result of a spinoff or ICG's payment of an extraordinary dividend or distribution, the maximum number of shares of Stock available for issuance under the Plan, the maximum number of shares of Stock for which any individual may receive pursuant to Grants in any year, the number of shares covered by outstanding Grants, the kind of shares to be issued or transferred under the Plan, and the price per share or the applicable market value of such Grants shall be appropriately adjusted to reflect any increase or decrease in the number of, or change in the kind or value of, issued shares of Stock to preclude, to the extent practicable, the enlargement or dilution of rights and benefits under such Grants; provided, however, that any fractional shares resulting from such adjustment shall be eliminated.  Any adjustments shall be final, binding and conclusive.

 

	 Eligibility for Participation

 

	 Eligible Persons.  All Employees, including persons who have accepted employment with the Company and Employees who are officers or members of the Board, and all Non-Management Directors shall be eligible to participate in the Plan.  Consultants are eligible to participate in the Plan if they perform bona fide services for the Company, the services are not in connection with the offer or sale of securities in a capital-raising transaction, and the Consultants do not directly or indirectly promote or maintain a market for ICG's securities.

 

	 Selection of Participants.  The Committee shall select the Employees, Consultants and Non-Management Directors to receive Grants and shall determine the terms and conditions of the Grant and the number of shares of Stock subject to each Grant.

   

	 Options

 

	 General Requirements.  The Committee may grant Options to any Employee, Consultant or Non-Management Director upon such terms and conditions as the Committee deems appropriate under this Section 7.  

 

	 Number of Shares.  The Committee shall determine the number of shares of Stock that will be subject to each Grant of Options to Employees, Consultants and Non-Management Directors.

 

	 Type of Option and Price.

 

	The Committee may grant Incentive Stock Options or Nonqualified Stock Options or any combination of Incentive Stock Options and Nonqualified Stock Options.  Incentive Stock Options may be granted only to Employees who have actually commenced employment with ICG or its Parent or Subsidiaries.  Nonqualified Stock Options may be granted to Employees, Consultants and Non-Management Directors.

 

	The Option Price shall be determined by the Committee and may be equal to, greater than or less than the Fair Market Value of the shares of Stock subject to the Grant on the Date of Grant; provided, however, that an Incentive Stock Option may not be granted to an Employee who, at the Date of Grant, owns stock possessing more than 10 percent of the total combined voting power of all classes of stock of ICG or any Parent or Subsidiary, unless the Option Price is not less than 110% of the Fair Market Value on the Date of Grant.

 

	 Option Term.  The Committee shall determine the term of each Option.  The term of an Option shall not exceed ten years from the Date of Grant.  However, an Incentive Stock Option that is granted to an Employee who, at the Date of Grant, owns stock possessing more than 10 percent of the total combined voting power of all classes of stock of ICG, or any Parent or Subsidiary, may not have a term that exceeds five years from the Date of Grant.

 

	 Exercisability of Options.  Options shall become exercisable in accordance with such terms and conditions as may be determined by the Committee and specified in the Grant Instrument.  The Committee may accelerate the exercisability of any or all outstanding Options at any time for any reason. 

 

	 Termination of Employment or Service.  Except as provided in the Grant Instrument, an Option may only be exercised while the Participant is employed by, or providing service to, the Company.  The Committee shall specify in the Grant Instrument under what circumstances and during what time periods a Participant may exercise an Option after termination of employment or service. 

 

	 Exercise of Options.  A Participant may exercise an Option that has become exercisable, in whole or in part, by delivering a notice of exercise to ICG or its designated agent.  The Participant shall pay the Option Price and any withholding taxes for the Option (i) in cash or by check, (ii) with the approval of the Committee, by delivering shares of Stock owned by the Participant and having a Fair Market Value on the date of exercise equal to the Option Price or by attestation (on a form prescribed by the Committee) to ownership of shares of Stock having an aggregate Fair Market Value on the date of exercise equal to the Option Price, (iii) in cash, on the T+3 settlement date that occurs after the exercise date specified in the notice of exercise, provided that the Participant exercises the Option through an irrevocable agreement with a registered broker and the payment is made in accordance with procedures permitted by Regulation T of the Federal Reserve Board and such procedures do not violate applicable law, or (iv) by such other method as the Committee may approve, to the extent permitted by applicable law.  Shares of Stock used to exercise an Option shall have been held by the Participant for the requisite period of time to avoid adverse accounting consequences to ICG with respect to the Option.  Payment for the shares pursuant to the Option, and any required withholding taxes, must be received by the time specified by the Committee depending on the type of payment being made.

 

	 Limits on Incentive Stock Options.  Each Incentive Stock Option shall provide that if the aggregate Fair Market Value on the Date of Grant with respect to which Incentive Stock Options are exercisable for the first time by a Participant during any calendar year, under the Plan or any other stock option plan of ICG or a Parent or Subsidiary, exceeds $100,000, then the Option, as to the excess, shall be treated as a Nonqualified Stock Option.

 

	 SARs

 

	 General Requirements.  The Committee may grant SARs to any Employee, Consultant or Non-Management Director, upon such terms and conditions as the Committee deems appropriate under this Section 8.  Each SAR shall represent the right of the Participant to receive, upon settlement of the SAR, shares of Stock or cash equal to the amount by which the Fair Market Value of a share of Stock on the date of exercise of the SAR exceeds the base amount of the SAR as described below in Section 8(c).

 

	 Terms of SARs.  The Committee shall determine the terms and conditions of SARs and may grant SARs separately from or in tandem with any Option (for all or a portion of the applicable Option).  Tandem SARs may be granted either at the time the Option is granted or any time thereafter while the Option remains outstanding; provided, however, that in the case of an Incentive Stock Option, SARs may be granted only at the time of the grant of the Incentive Stock Option.  The Committee will determine the number of SARs to be granted, the base amount, the vesting and other restrictions applicable to SARs and the period during which SARs will remain exercisable.

 

	 Base Amount.  The Committee shall establish the base amount of the SAR at the time the SAR is granted.  

 

	 Payment With Respect to SARs.  The Committee shall determine whether the appreciation in an SAR shall be paid in the form of cash, in Stock, or in a combination of the two, in such proportion as the Committee deems appropriate.  For purposes of calculating the number of shares of Stock to be received, Stock shall be valued at its Fair Market Value on the date of exercise of the SAR.  If shares of Stock are to be received upon exercise of an SAR, cash shall be delivered in lieu of any fractional share.

 

	 Requirement of Employment or Service.  The Committee shall determine in the Grant Instrument under what circumstances a Participant may retain SARs after termination of the Participant's employment or service, and the circumstances under which SARs may be forfeited.

 

	 Stock Units

 

	 General Requirements.  The Committee may grant Stock Units to any Employee, Consultant or Non-Management Director, upon such terms and conditions as the Committee deems appropriate under this Section 9.  Each Stock Unit shall represent the right of the Participant to receive a share of Stock or an amount based on the value of a share of Stock.  All Stock Units shall be credited to accounts on ICG's records for purposes of the Plan.  

 

	 Terms of Stock Units.  The Committee may grant Stock Units that are payable if specified performance goals or other conditions are met, or under other circumstances.  Stock Units may be paid at the end of a specified period, or payment may be deferred to a date authorized by the Committee.  The Committee shall determine the number of Stock Units to be granted and the requirements applicable to such Stock Units.

  

	 Payment With Respect to Stock Units.  Payment with respect to Stock Units shall be made in cash, in Stock, or in a combination of the two, as determined by the Committee.  The Grant Instrument shall specify the maximum number of shares that shall be paid under the Stock Units. 

 

	 Requirement of Employment or Service.  The Committee shall determine in the Grant Instrument under what circumstances a Participant may retain Stock Units after termination of the Participant's employment or service, and the circumstances under which Stock Units may be forfeited.

   

	 Performance Shares

 

	 General Requirements.  The Committee may grant Performance Shares to any Employee, Consultant or Non-Management Director, upon such terms and conditions as the Committee deems appropriate under this Section 10.  Each Performance Share shall represent the right of the Participant to receive a share of Stock or an amount based on the value of a share of Stock, if specified performance goals are met.  All Performance Shares shall be credited to accounts on ICG's records for purposes of the Plan.  

 

	 Terms of Performance Shares.  The Committee shall establish the performance goals and other conditions for payment of Performance Shares.  Performance Shares may be paid at the end of a specified performance or other period, or payment may be deferred to a date authorized by the Committee.  The Committee shall determine the number of Performance Shares to be granted and the requirements applicable to such Performance Shares. 

  

	 Payment With Respect to Performance Shares.  Payment with respect to Performance Shares shall be made in cash, in Stock, or in a combination of the two, as determined by the Committee.  The Committee shall establish in the Grant Instrument a target amount to be paid under a Performance Share based on achievement of the performance goals.

 

	 Requirement of Employment or Service.  The Committee shall determine in the Grant Instrument under what circumstances a Participant may retain Performance Shares after termination of the Participant's employment or service, and the circumstances under which Performance Shares may be forfeited.

 

	 Stock Awards

 

	 General Requirements.  The Committee may issue or transfer shares of Stock to any Employee, Consultant or Non-Management Director under a Stock Award, upon such terms and conditions as the Committee deems appropriate under this Section 11.  Shares of Stock issued or transferred pursuant to Stock Awards may be issued or transferred for cash consideration or for no cash consideration, and subject to restrictions or no restrictions, as determined by the Committee.  The Committee may establish conditions under which restrictions on Stock Awards shall lapse over a period of time or according to such other criteria as the Committee deems appropriate, including restrictions based upon the achievement of specific performance goals.  

 

	 Number of Shares.  The Committee shall determine the number of shares of Stock to be issued or transferred pursuant to a Stock Award and any restrictions applicable to such shares.

 

	 Requirement of Employment or Service.  The Committee shall determine in the Grant Instrument under what circumstances a Participant may retain Stock Awards after termination of the Participant's employment or service, and the circumstances under which Stock Awards may be forfeited.

 

	 Restrictions on Transfer.  While Stock Awards are subject to restrictions, a Participant may not sell, assign, transfer, pledge or otherwise dispose of the shares of a Stock Award except upon death as described in Section 17.  Each certificate, or electronic book entry equivalent, for a share of a Stock Award shall contain a legend giving appropriate notice of the restrictions in the Grant.  The Participant shall be entitled to have the legend removed when all restrictions on such shares have lapsed.  The Committee may retain possession of any stock certificates for Stock Awards until all restrictions on such shares have lapsed.

 

	 Right to Vote and to Receive Dividends.  Unless the Committee determines otherwise, the Participant shall have the right to vote shares subject to Stock Awards and to receive any dividends or other distributions paid on such shares during the restriction period.  The Committee may determine that a Participant's entitlement to dividends or other distributions with respect to a Stock Award shall be subject to achievement of performance goals or other conditions.

 

	 Dividend Equivalents 

  

	 General Requirements.  When the Committee makes a Grant under the Plan, the Committee may grant Dividend Equivalents in connection with such Grants, under such terms and conditions as the Committee deems appropriate under this Section 12.  Dividend Equivalents may be paid to Participants currently or may be deferred, as determined by the Committee.  All Dividend Equivalents that are not paid currently shall be credited to accounts on ICG's records for purposes of the Plan.  Dividend Equivalents may be accrued as a cash obligation, or may be converted to Stock Units for the Participant, as determined by the Committee.  Unless otherwise specified in the Grant Instrument, deferred Dividend Equivalents will not accrue interest.  The Committee may provide that Dividend Equivalents shall be payable based on the achievement of specific performance goals.  

 

	 Payment with Respect to Dividend Equivalents.  Dividend Equivalents may be payable in cash, shares of Stock, or other property, or in a combination of the foregoing, as determined by the Committee.

 

	 Other Stock-Based Awards

 

The Committee may grant other awards that are cash-based or based on, measured by or payable in Stock to Employees, Consultants or Non-Management Directors, on such terms and conditions as the Committee deems appropriate under this Section 13.  Other Stock-Based Awards may be granted subject to achievement of performance goals or other conditions and may be payable in Stock or cash, or in a combination of the two, as determined by the Committee in the Grant Instrument.  

 

	 Qualified Performance-Based Compensation

 

	 Designation as Qualified Performance-Based Compensation.  The Committee may determine that Stock Units, Performance Shares, Stock Awards, Dividend Equivalents or Other Stock-Based Awards granted to an Employee shall be considered "qualified performance-based compensation" under section 162(m) of the Code.  The provisions of this Section 14 shall apply to any such Grants that are to be considered "qualified performance-based compensation" under section 162(m) of the Code.  To the extent that Grants of Stock Units, Performance Shares, Stock Awards, Dividend Equivalents or Other Stock-Based Awards designated as "qualified performance-based compensation" under section 162(m) of the Code are made, no such Grant may be made as an alternative to another Grant that is not designated as "qualified performance based compensation" but instead must be separate and apart from all other Grants made.

 

	 Performance Goals.  When Stock Units, Performance Shares, Stock Awards, Dividend Equivalents or Other Stock-Based Awards that are to be considered "qualified performance-based compensation" are granted, the Committee shall establish in writing (i) the objective performance goals that must be met, (ii) the period during which performance will be measured, (iii) the maximum amounts that may be paid if the performance goals are met, and (iv) any other conditions that the Committee deems appropriate and consistent with the Plan and the requirements of section 162(m) of the Code for "qualified performance-based compensation."  The performance goals shall satisfy the requirements for "qualified performance-based compensation," including the requirement that the achievement of the goals be substantially uncertain at the time they are established and that the performance goals be established in such a way that a third party with knowledge of the relevant facts could determine whether and to what extent the performance goals have been met.  The Committee shall not have discretion to increase the amount of compensation that is payable upon achievement of the designated performance goals, but the Committee may reduce the amount of compensation that is payable upon achievement of the designated performance goals.

 

	 Criteria Used for Objective Performance Goals.  The Committee shall use objectively determinable performance goals based on one or more of the following criteria:  Stock price, earnings per share of Stock, net earnings, operating earnings, return on assets, stockholder return, return on equity, growth in assets, share volume, sales, market share, change in net asset value, EBIT, EBITDA, cash flow, backlog or deferred revenue, strategic business criteria, meeting specific revenue targets, market penetration, geographic business expansion, cost targets or goals relating to acquisitions or divestitures.  The performance goals may relate to the Participant's business unit or the performance of ICG or one or more ICG partner companies, or any combination of the foregoing.  Performance goals need not be uniform as among Participants.

  

	 Timing of Establishment of Goals.  The Committee shall establish the performance goals in writing either before the beginning of the performance period or during a period ending no later than the earlier of (i) 90 days after the beginning of the performance period or (ii) the date on which 25% of the performance period has been completed, or such other date as may be required or permitted under applicable regulations under section 162(m) of the Code.

 

	 Certification of Results.  The Committee shall certify and announce the results for the performance period to all Participants after ICG determines the financial results for the performance period.  The Committee shall determine the amount, if any, to be paid pursuant to each Grant based on the achievement of the performance goals and the terms of each Grant Instrument.

 

	 Death, Disability or Other Circumstances.  The Committee may provide in the Grant Instrument that Grants shall be payable, in whole or in part, in the event of the Participant's death or disability, a Change of Control or under other circumstances consistent with the Treasury regulations and rulings under section 162(m) of the Code.

 

	 Deferrals

 

The Committee may permit or require a Participant to defer receipt of the payment of cash or the delivery of shares of Stock that would otherwise be due to the Participant in connection with any Grant.  The Committee shall establish rules and procedures for such deferrals, which shall be consistent with the requirements of section 409A of the Code and the corresponding Treasury regulations and rulings.

 

	 Withholding of Taxes

 

	 Required Withholding.  All Grants under the Plan shall be subject to applicable federal (including FICA), state and local tax withholding requirements.  The Company may (i) require that the Participant or other person receiving or exercising Grants pay to the Company the amount of any federal, state or local taxes that the Company is required to withhold with respect to such Grants, or (ii) deduct from other wages paid by the Company the amount of any withholding taxes due with respect to such Grants.

 

	 Election to Withhold Shares.  If the Committee so permits, a Participant may elect to satisfy the Company's tax withholding obligation with respect to Grants paid in Stock by having shares withheld, at the time such Grants become taxable, up to an amount that does not exceed the minimum applicable withholding tax rate for federal (including FICA), state and local tax liabilities.  In addition, with respect to any required tax withholding amount that exceeds the minimum applicable withholding tax rate, the Committee may permit a Participant to satisfy such tax withholding obligation with respect to such excess amount by providing that the Participant may elect to deliver to the Company shares of Stock owned by the Participant that have been held by the Participant for the requisite period of time to avoid adverse accounting consequences to ICG.  The elections described in this subsection (b) must be in a form and manner prescribed by the Committee and may be subject to the prior approval of the Committee.

 

	 Transferability of Grants

 

	 In General.  Except as provided in this Section 17, only the Participant may exercise rights under a Grant during the Participant's lifetime.  A Participant may not transfer those rights except by will or by the laws of descent and distribution, or, with respect to Grants other than Incentive Stock Options, if permitted in any specific case by the Committee, pursuant to a domestic relations order.  When a Participant dies, the Successor Participant may exercise such rights in accordance with the terms of the Plan.  A Successor Participant must furnish proof satisfactory to ICG of his or her right to receive the Grant under the Participant's will or under the applicable laws of descent and distribution.

 

	 Transfer of Nonqualified Stock Options.  Notwithstanding the foregoing, the Committee may provide in a Grant Instrument that a Participant may transfer Nonqualified Stock Options to family members or other persons or entities, consistent with applicable securities laws, according to such terms as the Committee may determine; provided that the Participant receives no consideration for the transfer of a Nonqualified Stock Option and the transferred Nonqualified Stock Option shall continue to be subject to the same terms and conditions as were applicable to the Nonqualified Stock Option immediately before the transfer. 

 

	 Consequences of a Change of Control

 

	 Assumption of Grants.  Upon a Change of Control where ICG is not the surviving corporation (or survives only as a subsidiary of another corporation), unless the Committee determines otherwise, all outstanding Options and SARs that are not exercised shall be assumed by, or replaced with comparable options and rights by, the surviving corporation (or a parent or subsidiary of the surviving corporation), and other Grants that remain outstanding shall be converted to similar grants of the surviving corporation (or a parent or subsidiary of the surviving corporation).

 

	 Other Alternatives.  Notwithstanding the foregoing, in the event of a Change of Control, the Committee may take any of the following actions with respect to any or all outstanding Grants, without the consent of any Participant: (i) determine that outstanding Options and SARs shall accelerate and become exercisable, in whole or in part; (ii) determine that the restrictions and conditions on outstanding Stock Awards shall lapse, in whole or in part; (iii) provide that Participants holding outstanding Performance Shares shall receive payment, in whole or in part, in settlement of such Performance Shares, in an amount determined by the Committee, based on the Participant's target payment for the performance period and the portion of the performance period that precedes the Change of Control; (iv) determine that outstanding Stock Units shall become payable, in whole or in part, in cash, Stock or other property in an amount not less than their target amount, as determined by the Committee; (v) provide that Dividend Equivalents and Other Stock-Based Awards shall become fully payable, in whole or in part, in cash, Stock or other property, in amounts determined by the Committee; (vi) the Committee may require that Participants surrender their outstanding Options and SARs in exchange for a payment by ICG, in cash, Stock or other property, as determined by the Committee, in an amount equal to the amount by which the then Fair Market Value subject to the Participant's unexercised Options and SARs exceeds the Option Price of the Options or the base amount of the SARs, as applicable; (vii) after giving Participants an opportunity to exercise their outstanding Options and SARs, the Committee may terminate any or all unexercised Options and SARs at such time as the Committee deems appropriate; and (viii) with respect to Participants holding Stock Units, Performance Shares, Dividend Equivalents or Other Stock-Based Awards, the Committee may determine that such Participants shall receive a payment in settlement of such Stock Units, Performance Shares, Dividend Equivalents or Other Stock-Based Awards, in such amount and form as may be determined by the Committee.  Such acceleration, surrender, termination or settlement shall take place as of the date of the Change of Control or such other date as the Committee may specify.

 

	 Other Transactions.  The Committee may provide in a Grant Instrument that a sale or other transaction involving a Subsidiary or other business unit of ICG shall be considered a Change of Control for purposes of a Grant, or the Committee may establish other provisions that shall be applicable in the event of a specified transaction.

 

	 Requirements for Issuance of Shares

 

No shares of Stock shall be issued or transferred in connection with any Grant hereunder unless and until all legal requirements applicable to the issuance of such shares have been complied with to the satisfaction of the Committee.  The Committee shall have the right to condition any Grant made to any Participant hereunder on such Participant's undertaking in writing to comply with such restrictions on his or her subsequent disposition of such shares of Stock as the Committee shall deem necessary or advisable, and certificates representing such shares may be legended to reflect any such restrictions.  Certificates representing shares of Stock issued or transferred under the Plan will be subject to such stop-transfer orders and other restrictions as may be required by applicable laws, regulations and interpretations, including any requirement that a legend be placed thereon.

 

	 Amendment and Termination of the Plan

 

	 Amendment.  The Board may amend or terminate the Plan at any time; provided, however, that the Board shall not amend the Plan without approval of the stockholders of ICG if such approval is required in order to comply with the Code or applicable laws, or to comply with applicable stock exchange requirements.  No amendment or termination of this Plan shall, without the consent of the Participant, impair any rights or obligations under any Grant previously made to the Participant, unless such right has been reserved in the Plan or the Grant Instrument, or except as provided in Section 21(b) below.

 

	 No Repricing Without Stockholder Approval.  Notwithstanding anything in the Plan to the contrary, without the prior approval of the Company's stockholders, no Grant under the Plan may be repriced, replaced, regranted through cancellation or modified if the effect would be to reduce the exercise price for the shares underlying such Grant; provided, however, that the foregoing shall not apply to any adjustment made to a Grant pursuant to Section 5(d) of the Plan.  In addition, the Committee may not cancel an outstanding Grant that is underwater for the purpose of granting a replacement Grant of a different type.

 

	 Stockholder Approval for "Qualified Performance-Based Compensation."  If Stock Units, Performance Shares, Stock Awards, Dividend Equivalents or Other Stock-Based Awards are granted as "qualified performance-based compensation" under Section 14 above, the Plan must be reapproved by ICG's stockholders no later than the first stockholders meeting that occurs in the fifth year following the year in which the stockholders previously approved the provisions of Section 14, if additional Grants are to be made under Section 14 and if required by section 162(m) of the Code or the regulations thereunder.

 

	 Termination of Plan.  The Plan shall terminate on the day immediately preceding the tenth anniversary of its Effective Date, unless the Plan is terminated earlier by the Board or is extended by the Board with the approval of the stockholders.  The termination of the Plan shall not impair the power and authority of the Committee with respect to an outstanding Grant.

 

	 Miscellaneous

 

	 Grants in Connection with Corporate Transactions and Otherwise.  Nothing contained in this Plan shall be construed to (i) limit the right of the Committee to make Grants under this Plan in connection with the acquisition, by purchase, lease, merger, consolidation or otherwise, of the business or assets of any corporation, firm or association, including Grants to employees thereof who become Employees, or for other proper corporate purposes, or (ii) limit the right of ICG to grant stock options or make other awards outside of this Plan.  Without limiting the foregoing, the Committee may make a Grant to an employee of another corporation who becomes an Employee by reason of a corporate merger, consolidation, acquisition of stock or property, reorganization or liquidation involving ICG in substitution for a grant made by such corporation.  The terms and conditions of the substitute Grants may vary from the terms and conditions required by the Plan and from those of the substituted stock incentives.  The Committee shall prescribe the provisions of the substitute Grants.

  

	 Compliance with Law.  The Plan, the exercise of Options and the obligations of ICG to issue or transfer shares of Stock under Grants shall be subject to all applicable laws and to approvals by any governmental or regulatory agency as may be required.  With respect to persons subject to section 16 of the Exchange Act, it is the intent of ICG that the Plan and all transactions under the Plan comply with all applicable provisions of Rule 16b-3 or its successors under the Exchange Act.  In addition, it is the intent of ICG that the Plan and applicable Grants comply with the applicable provisions of sections 162(m), 409A and 422 of the Code.  To the extent that any legal requirement of section 16 of the Exchange Act or sections 162(m), 409A or 422 of the Code as set forth in the Plan ceases to be required under section 16 of the Exchange Act or sections 162(m), 409A or 422 of the Code, that Plan provision shall cease to apply.  The Committee may revoke any Grant if it is contrary to law or modify a Grant to bring it into compliance with any valid and mandatory government regulation.  The Committee may also adopt rules regarding the withholding of taxes on payments to Participants.  The Committee may, in its sole discretion, agree to limit its authority under this Section.

  

	 Enforceability.  The Plan shall be binding upon and enforceable against ICG and its successors and assigns.

  

	 Funding of the Plan; Limitation on Rights.  This Plan shall be unfunded.  Neither ICG nor any other Company shall be required to establish any special or separate fund or to make any other segregation of assets to assure the payment of any Grants under this Plan.  Nothing contained in the Plan and no action taken pursuant hereto shall create or be construed to create a fiduciary relationship between ICG or any other Company and any Participant or any other person.  No Participant or any other person shall under any circumstances acquire any property interest in any specific assets of ICG or any other Company.  To the extent that any person acquires a right to receive payment from ICG hereunder, such right shall be no greater than the right of any unsecured general creditor of ICG.

  

	 Rights of Participants.  Nothing in this Plan shall entitle any Employee, Consultant, Non-Management Director or other person to any claim or right to receive a Grant under this Plan.  Neither this Plan nor any action taken hereunder shall be construed as giving any individual any rights to be retained by or in the employment or service of the Company.

 

	 No Fractional Shares.  No fractional shares of Stock shall be issued or delivered pursuant to the Plan or any Grant.  The Committee shall determine whether cash, other awards or other property shall be issued or paid in lieu of such fractional shares or whether such fractional shares or any rights thereto shall be forfeited or otherwise eliminated.

 

	 Employees Subject to Taxation Outside the United States.  With respect to Participants who are subject to taxation in countries other than the United States, the Committee may make Grants on such terms and conditions as the Committee deems appropriate to comply with the laws of the applicable countries, and the Committee may create such procedures, addenda and subplans and make such modifications as may be necessary or advisable to comply with such laws.

 

	 Governing Law.  The validity, construction, interpretation and effect of the Plan and Grant Instruments issued under the Plan shall be governed and construed by and determined in accordance with the laws of the State of Delaware, without giving effect to the conflict of laws provisions thereof.

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