Document:

EX-10.6

Exhibit 10.6

PEPSICO RESTRICTED STOCK UNIT RETENTION AWARD

RESTRICTED STOCK UNITS TERMS AND CONDITIONS

These Terms and Conditions, along with the PepsiCo Restricted Stock Unit Retention Award
Summary (the “Award Summary”) delivered herewith and signed by the individual named on the Award
Summary (the “Participant”) shall constitute an Agreement made as of the Grant Date (as indicated
on the Award Summary), by and between PepsiCo, Inc., a North Carolina corporation having its
principal office at 700 Anderson Hill Road, Purchase, New York 10577 (“PepsiCo,” and with its
divisions and direct and indirect subsidiaries, the “Company”), and the Participant.

W I T N E S S E T H:

WHEREAS, the Board of Directors and shareholders of PepsiCo have approved the 2003 Long-Term
Incentive Plan (the “Plan”), for the purposes and subject to the provisions set forth in the Plan;
and

WHEREAS, the Compensation Committee of the Board of Directors of PepsiCo (the “Committee”)
authorizes retention long-term incentive awards to executives of the Company subject to Section 16
of the Securities Exchange Act of 1934 and, pursuant to the authority granted to it in said Plan,
the Committee, by resolution duly adopted at a meeting held on September 19, 2003, delegated to the
Chief Executive Officer of PepsiCo (and his designees) the authority to make retention long-term
incentive awards to other existing or newly hired executives of the Company; and

WHEREAS, awards granted under the Plan are to be evidenced by an Agreement in such form and
containing such terms and conditions as the Committee shall determine;

NOW, THEREFORE, it is mutually agreed as follows:

These terms and conditions shall apply with respect to the restricted stock units granted to
the Participant as indicated on the Award Summary.

1. Grant. In consideration of the Participant remaining in the employ of the Company,
PepsiCo hereby grants to the Participant, on the terms and conditions set forth herein, the number
of restricted stock units indicated on the Award Summary (the “Restricted Stock Units”).

2. Vesting. Subject to the terms and conditions set forth herein, the Restricted Stock
Units shall become vested as indicated on the Award Summary (the “Vesting Date”) and shall be
payable as soon as practicable after that date. Restricted Stock Units may vest only while the
Participant is actively employed by the Company.

3. Payment. Restricted Stock Units that vest and become payable shall be settled in
shares of PepsiCo Common Stock with the Participant receiving one share of PepsiCo Common Stock for
each vested Restricted Stock Unit. Any amount that the Company may be required to withhold upon the
settlement of Restricted Stock Units and/or the payment of dividend equivalents (see Section 5
below) in respect of applicable foreign, federal (including FICA), state and local taxes, must be
paid in full at the time of the issuance of shares or payment of cash. Unless the Participant makes
other arrangements to satisfy this withholding obligation in accordance with procedures approved by
the Company in its discretion, the Company shall withhold shares to satisfy the required
withholding obligation related to the settlement of Restricted Stock Units.

4. Effect of Termination of Employment, Retirement, Death, and Total Disability.

(a) Termination of Employment. Restricted Stock Units may vest and become payable only
while the Participant is actively employed by the Company. Thus, vesting ceases upon the
termination of the Participant’s active employment with the Company. Subject to subparagraphs 4(b)
and 4(c), all unvested Restricted Stock Units shall automatically be forfeited and canceled upon
the date that the Participant’s active employment with the Company terminates.

(b) Death or Total Disability. If the Participant’s employment with the Company
terminates by reason of the Participant’s death or Total Disability (as defined below), then a
whole number of Restricted Stock Units shall vest on the Participant’s last day of active
employment with the Company (which, for purposes of Total Disability, means the effective date of
Total Disability), with such number determined in proportion to the Participant’s active service
(measured in calendar days) during the period commencing on the Grant Date and ending on the
Vesting Date, shall be payable as soon as practicable after that date, subject to the terms and
conditions of this Agreement.

(c) Transfers to a Related Entity. In the event the Participant transfers to a Related
Entity (as defined below), as a result of actions by PepsiCo, the Restricted Stock Units shall
become fully vested on the date of such transfer and shall be payable as soon as practicable after
that date.

(d) Retirement. For purposes of clarity of Paragraph 4(a) and not of limitation, in
the event that prior to the vesting of the Restricted Stock Units the Participant ceases active
employment with the Company by reason of the Participant’s Retirement (as defined below), then all
unvested Restricted Stock Units shall automatically be forfeited and canceled upon the date that
the Participant’s active employment with the Company terminates.

5. Dividend Equivalents. During the vesting period, the Participant shall accumulate
dividend equivalents with respect to the Restricted Stock Units, which dividend equivalents shall
be paid in cash (without interest) to the Participant only if and when the applicable Restricted
Stock Units vest and become payable. Dividend equivalents shall equal the dividends actually paid
with respect to PepsiCo Common Stock during the vesting period while (and to the extent) the
Restricted Stock Units remain outstanding and unpaid.

6. Prohibited Conduct.

(a) The Participant agrees that, at any time prior to the vesting and payment of the
Restricted Stock Units granted hereunder, and for a period of twelve months after the later of (i)
the vesting and payment of the Restricted Stock Units or (ii) termination of the Participant’s
employment with the Company for any reason whatsoever (including retirement or Total Disability),
he or she will not engage in any of the following activities anywhere in the world:

(1) Non-Competition. Participant shall not accept any employment, assignment, position
or responsibility, or acquire any ownership interest, which involves the Participant’s
Participation in a business entity that markets, sells, distributes or produces Covered Products,
unless such business entity makes retail sales or consumes Covered Products without in any way
competing with the Company.

(2) Raiding Employees. Participant shall not in any way, directly or indirectly
(including through someone else acting on the Participant’s recommendation, suggestion,
identification or advice), solicit any Company employee to leave the Company’s employment or to
accept any position with any other entity.

(3) Non-Disclosure. Participant shall not use or disclose to anyone any confidential
information regarding the Company other than as necessary in his or her position with the Company.
Such confidential information shall include all non-public information the Participant acquired as
a result of his or her positions with the Company which might be of any value to a competitor of
the Company, or which might cause any economic loss or substantial embarrassment to the Company or
its customers, bottlers, distributors or suppliers if used or disclosed. Examples of such
confidential information include, without limitation, non-public information about the Company’s
customers, suppliers, distributors and potential acquisition targets; its business operations and
structure; its product lines, formulas and pricing; its processes, machines and inventions; its
research and know-how; its financial data; and its plans and strategies.

(4) Misconduct. Participant shall not engage in any acts that are considered to be
contrary to the Company’s best interests, including, but not limited to, violating the Company’s
Code of Conduct, engaging in unlawful trading in the securities of PepsiCo or of any other company
based on information gained as a result of his or her employment with the Company, or engaging in
any other activity which constitutes gross misconduct.

(b) In the event the Company determines that the Participant has breached any term of
Paragraph 6(a), in addition to any other remedies the Company may have available to it, the Company
may in its sole discretion:

(1) Cancel any unvested Restricted Stock Units granted hereunder; and/or

(2) Require the Participant to pay to the Company the value of any Restricted Stock Units
(determined as of the date the restrictions on such Restricted Stock Units lapse), which have been
paid within the twelve-month period immediately preceding the date as of which the Participant has
breached a provision of Paragraph 6(a), as determined by the Company.

7. Adjustment for Change in Common Stock. In the event of any change in the
outstanding shares of PepsiCo Common Stock by reason of any stock split, stock dividend,
recapitalization, reorganization, merger, consolidation, combination or exchange of shares,
spin-off or other similar corporate change, the number and type of shares to which the Restricted
Stock Units held by the Participant relate shall be adjusted as may be, and to such extent (if
any), determined to be appropriate and equitable by the Committee.

8. Effect of Change in Control. In the event of a Change in Control (as defined in
the Plan), the following provisions shall apply:

(a) If the successor corporation (or affiliate thereto) (1) assumes the outstanding Restricted
Stock Units granted hereunder or (2) replaces the outstanding Restricted Stock Units with equity
awards that preserve the existing value of such Restricted Stock Units at the time of the Change in
Control and provide for subsequent payout in accordance with a vesting schedule that is the same or
more favorable to the Participant than the vesting schedule applicable to such Restricted Stock
Units, then the outstanding Restricted Stock Units or such substitutes thereof shall remain
outstanding and be governed by their respective terms and the provisions of the Plan, subject to
Paragraph 8(c) below.

(b) If the outstanding Restricted Stock Units granted hereunder are not assumed or replaced
in accordance with Paragraph 8(a) above, then upon the Change in Control, (1) the outstanding
Restricted Stock Units granted hereunder shall immediately vest and shall be payable immediately in
accordance with their terms or, if later, as of the earliest permissible date under Code Section
409A and (2), notwithstanding Paragraph 8(b)(1) but after taking into account the accelerated
vesting set forth therein, the Board may, in its sole discretion, provide for cancellation of the
outstanding Restricted Stock Units at the time of the Change in Control in which case a payment of
cash, property or a combination thereof shall be made to the Participant that is determined by the
Board in its sole discretion and that is at least equal to the value of the consideration that
would be received in such Change in Control by the holders of PepsiCo’s securities relating to such
awards.

(c) If the outstanding Restricted Stock Units granted hereunder are assumed or replaced in
accordance with Paragraph 8(a) and the Participant’s employment with the Company is terminated by
the Company for any reasons other than Cause or by the Participant for Good Reason, in each case,
within the two-year period commencing on the Change in Control, then, as of the date of the
Participant’s termination, the outstanding Restricted Stock Units granted hereunder shall
immediately vest and shall be payable immediately in accordance with their terms or, if later, as
of the earliest permissible date under Code Section 409A. For purposes of this Paragraph 8,
“Cause” and “Good Reason” are defined in the Plan and a termination for Cause or Good Reason is
subject to the terms and conditions set forth in the Plan.

9. Nontransferability. Unless the Committee specifically determines otherwise: (a) the
Restricted Stock Units are personal to the Participant and (b) the Restricted Stock Units shall not
be transferable or assignable, other than in the case of the Participant’s death by will, the laws
of descent and distribution.

10. Definitions. As used in this Agreement, the following terms shall have the
meanings set forth below:

(a) “Covered Products” means any product which falls into one or more of the following
categories, so long as the Company is producing, marketing, selling or licensing such product
anywhere in the world: beverages, including without limitation carbonated soft drinks, tea, water,
juice drinks, sports drinks, coffee drinks, and value added dairy drinks; juices and juice
products; snacks, including salty snacks, sweet snacks, meat snacks, granola and cereal bars, and
cookies; hot cereals; pancake mixes; value-added rice products; pancake syrup; value-added pasta
products; ready-to-eat cereals; dry pasta products; or any product or service which the Participant
had reason to know was under development by the Company during the Participant’s employment with
the Company.

(b) “Participation” shall be construed broadly to include, without limitation: (i) serving as
a director, officer, employee, consultant or contractor with respect to such a business entity;
(ii) providing input, advice, guidance or suggestions to such a business entity; or (iii) providing
a recommendation or testimonial on behalf of such a business entity or one or more products it
produces.

(c) “Related Entity” shall mean any entity as to which the Company directly or indirectly owns
20% or more of the entity’s voting securities, general partnership interests, or other voting or
management rights.

(d) “Retirement” shall mean (i) early, normal or late retirement under the U.S. pension plan
of the Company in which the Participant participates (if any), (ii) retirement as explicitly set
out in an individual agreement between the Company and the Participant for this purpose in effect
on the Grant Date, (iii) termination of employment after attaining at least age 55 with at least
10 years of service with the Company (or, if earlier, after attaining at least age 65 and
completing at least five years of service with the Company), or (iv) retirement as otherwise
determined by the Committee (provided that such determination does not cause the Award to be
subject to Section 409A of the Code).

(e) “Total Disability” shall mean becoming totally and permanently disabled, as determined for
purposes of the Company’s Long Term Disability Plan (or in the absence of such Disability Plan
being applicable to the Participant, as determined by the Committee in its sole discretion).

11. Notices. Any notice to be given to PepsiCo in connection with the terms of this
Agreement shall be addressed to PepsiCo at Purchase, New York 10577, Attention: Vice President,
Compensation, or such other address as PepsiCo may hereafter designate to the Participant. Any such
notice shall be deemed to have been duly given when personally delivered, addressed as aforesaid,
or when enclosed in a properly sealed envelope or wrapper, addressed as aforesaid, and deposited,
postage prepaid, with the federal postal service.

12. Binding Effect.

(a) This Agreement shall be binding upon and inure to the benefit of any assignee or successor
in interest to PepsiCo, whether by merger, consolidation or the sale of all or substantially all of
PepsiCo’s assets. PepsiCo will require any successor (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all of the business and/or assets of
PepsiCo expressly to assume and agree to perform this Agreement in the same manner and to the same
extent that PepsiCo would be required to perform it if no such succession had taken place.

(b) This Agreement shall be binding upon and inure to the benefit of the Participant or his or
her legal representative and any person to whom the Restricted Stock Units may be transferred by
will or the applicable laws of descent and distribution.

13. No Contract of Employment; Agreement’s Survival. This Agreement is not a contract
of employment, nor does it impose on the Company any obligation to retain the Participant in its
employ. This Agreement shall survive the termination of the Participant’s employment for any
reason.

14. Registration, Listing and Qualification of Shares. The Committee may require
that the Participant make such representations and agreements and furnish such information as the
Committee deems appropriate to assure compliance with or exemption from the requirements of any
securities exchange, any foreign, federal, state or local law, any governmental regulatory body, or
any other applicable legal requirement, and PepsiCo Common Stock shall not be issued unless and
until the Participant makes such representations and agreements and furnished such information as
the Committee deems appropriate.

15. Amendment; Waiver. The terms and conditions of this Agreement may be amended in
writing by the chief personnel officer or chief legal officer of PepsiCo (or either of their
delegates), provided, however, that (i) no such amendment shall be adverse to the Participant
(except as necessary to comply with applicable law, including the provisions of Code Section 409A
and the regulations thereunder pertaining to the deferral of compensation); and (ii) the amendment
must be permitted under the Plan. The failure to exercise, or any delay in exercising, any right,
power or remedy under this Agreement shall not waive any right, power or remedy which the Board,
the Committee or the Company has under this Agreement

16. Severability or Reform by Court. In the event that any provision of this Agreement
is deemed by a court to be broader than permitted by applicable law, then such provision shall be
reformed (or otherwise revised or narrowed) so that it is enforceable to the fullest extent
permitted by applicable law. If any provision of this Agreement shall be declared by a court to be
invalid or unenforceable to any extent, the validity or enforceability of the remaining provisions
of this Agreement shall not be affected.

17. Prospectus and Award Acceptance. The Participant has been provided a copy of
PepsiCo’s Prospectus relating to the Plan and the Restricted Stock Units. By signing the Award
Summary, the Participant agrees that he or she has reviewed the Prospectus, and fully understands
his or her rights under the Plan.. Unless and until the Participant signs the Award Summary and
returns the Agreement to the Company, notwithstanding the other terms of this Agreement, the
Participant shall not be entitled to any Restricted Stock Unit payment.

18. Plan Controls. The Restricted Stock Units and the terms and conditions set forth
herein are subject in all respects to the terms and conditions of the Plan and any guidelines,
policies or regulations which govern administration of the Plan, which shall be controlling. The
Board reserves its rights to amend or terminate the Plan at any time without the consent of the
Participant; provided, however, that Restricted Stock Units outstanding under the Plan at the time
of such action shall not be adversely affected thereby (except as necessary to comply with
applicable law). All interpretations or determinations of the Committee or its delegate shall be
final, binding and conclusive upon the Participant (and his or her legal representatives and any
recipient of a transfer of the Restricted Stock Units permitted by this Agreement) on any question
arising hereunder or under the Plan or other guidelines, policies or regulations which govern
administration of the Plan.

19. Rights to Future Grants; Compliance with Law; Section 409A. By entering into this
Agreement, the Participant acknowledges and agrees that: (a) the Restricted Stock Unit grant will
be exclusively governed by the terms of the Plan, including the right reserved by the Company to
amend or cancel the Plan at any time without the Company incurring liability to the Participant
(except for Restricted Stock Units already granted under the Plan), (b) restricted stock units are
not a constituent part of the Participant’s salary and the Participant is not entitled, under the
terms and conditions of his/her employment, or by accepting or being awarded the Restricted Stock
Units pursuant to this Agreement to require restricted stock units or other awards to be granted to
him/her in the future under the Plan or any other plan, (c) upon vesting of Restricted Stock Units
the Participant will arrange for payment to the Company an estimated amount to cover employee
payroll taxes resulting from the exercise and/or, to the extent necessary, any balance may be
withheld from the Participant’s wages, (d) benefits received under the Plan will be excluded from
the calculation of termination indemnities or other severance payments, (e) the Participant will
seek all necessary approval under, make all required notifications under and comply with all laws,
rules and regulations applicable to the ownership of stock including, without limitation, currency
and exchange laws, rules and regulations, and (f) this Agreement will be interpreted and applied so
that the Restricted Stock Units will not be subject to Code Section 409A. If notwithstanding the
preceding sentence, the Restricted Stock Units become subject to Code Section 409A, then the
specified time of payment of the Restricted Stock Units for purposes of Code Section 409A shall be
the calendar year in which the short-term deferral period expires with respect to the Restricted
Stock Unit (or by such later time as may be permitted by Code Section 409A under the
circumstances).

20. No Rights as Shareholder. The Participant shall have no rights as a holder of
PepsiCo Common Stock with respect to the Restricted Stock Units granted hereunder unless and until
such Restricted Stock Units have been settled in shares of Common Stock that have been registered
in the Participant’s name as owner.

21. Governing Law. This Agreement shall be governed by, construed and enforced in
accordance with the laws of North Carolina, without giving effect to conflict of laws principles.

22. Entire Agreement. This Agreement constitutes the entire understanding between the
parties to this Agreement.

1

PEPSICO RESTRICTED STOCK UNIT RETENTION AWARD SUMMARY

Participant Name:

Grant Date:

Grant Price: $

AWARD DETAILS

RESTRICTED STOCK UNITS AWARD

US Dollar Value Retention Award: $

Restricted Stock Unit Award Value: $

Grant Date:

Grant Price: $

Number of Restricted Stock Units Granted:

Vesting Date(s)*:

* Vesting is subject to the terms and conditions of the award.

I accept my PepsiCo Restricted Stock Unit Retention Award as described above, subject to all the
terms and conditions set forth in the attached.

	 	 	 	 	 
	 

 

{Executive Name}

 

Date:

 

	 	 

 

 

 

 

 
	 	 

     

{Name/Title of PepsiCo Officer}

 

Sign and date this page. Fax entire agreement to PepsiCo Executive Compensation Dept. no later
than {Date}. Fax number {x-xxx-xxx-xxxx}.

2EX 10.01

    EXHIBIT
      10.1

     

    AMERICHIP
      INTERNATIONAL, INC. 

     

    AMENDED
      AND RESTATED

     

    2003
      NONQUALIFIED STOCK OPTION PLAN 

     

     

    ARTICLE
      I

    Purpose
      of Plan 

     

    This
      AMENDED AND RESTATED 2003 NONQUALIFIED STOCK OPTION PLAN (the "Plan") of
      AMERICHIP INTERNATIONAL, INC. (the "Company") for persons employed or associated
      with the Company, including without limitation any employee, director, general
      partner, officer, attorney, accountant, consultant or advisor, is intended
      to
      advance the best interests of the Company by providing additional incentive
      to
      those persons who have a substantial responsibility for its management, affairs,
      and growth by increasing their proprietary interest in the success of the
      Company, thereby encouraging them to maintain their relationships with the
      Company. Further, the availability and offering of Stock Options under the
      Plan
      supports and increases the Company's ability to attract, engage and retain
      individuals of exceptional talent upon whom, in large measure, the sustained
      progress growth and profitability of the Company for the shareholders depends.
      

     

    ARTICLE
      II 

    Definitions
      

     

    For
      Plan
      purposes, except where the context might clearly indicate otherwise, the
      following terms shall have the meanings set forth below: 

     

    "Board"
      shall mean the Board of Directors of the Company.

     

    "Code"
      shall mean the Internal Revenue Code of 1986, as amended, and the rules and
      regulations promulgated thereunder.

     

    "Committee"
      shall mean the Compensation Committee, or such other committee appointed by
      the
      Board, which shall be designated by the Board to administer the Plan. The
      Committee shall be composed of one or more persons as from time to time are
      appointed to serve by the Board and may be members of the Board or in the
      alternative, the Plan may be administered by the entire Board. 

     

    "Common
      Shares" shall mean the Company's Common Shares $0.001 par value per share,
      or,
      in the event that the outstanding Common Shares are hereafter changed into
      or
      exchanged for different shares or securities of the Company, such other shares
      or securities.

     

    "Company"
      shall mean AMERICHIP INTERNATIONAL, INC., a Nevada corporation, and any parent
      or subsidiary corporation of AMERICHIP INTERNATIONAL, INC., as such terms are
      defined in Section 425(e) and 425(f), respectively of the Code. 

     

    "Optionee"
      shall mean any person employed or associated with the affairs of the Company
      who
      has been granted one or more Stock Options under the Plan.

     

    "Stock
      Option" or "NQSO" shall mean a stock option granted pursuant to the terms of
      the
      Plan.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    "Stock
      Option Agreement" shall mean the agreement between the Company and the Optionee
      under which the Optionee may purchase Common Shares hereunder. 

     

    ARTICLE
      III

    Administration
      of the Plan 

     

    1.    The
      Committee
      or Board shall administer the plan and accordingly, it shall have full power
      to
      grant Stock Options, construe and interpret the Plan, establish rules and
      regulations and perform all other acts, including the delegation of
      administrative responsibilities, it believes reasonable and proper.

     

    2.    The
      determination of those eligible to receive Stock Options, and the amount, price,
      type and timing of each Stock Option and the terms and conditions of the
      respective stock option agreements shall rest in the sole discretion of the
      Committee, subject to the provisions of the Plan. 

     

    3.    The
      Committee
      or Board may cancel any Stock Options awarded under the Plan if an Optionee
      conducts himself in a manner which the Committee determines to be contrary
      to
      the best interest of the Company and its shareholders as set forth more fully
      in
      paragraph 8 of Article X of the Plan.

     

    4.    The
      Board or
      the Committee may correct any defect, supply any omission or reconcile any
      inconsistency in the Plan or in any granted Stock Option, in the manner and
      to
      the extent it shall deem necessary to carry it into effect. 

     

    5.    Any
      decision
      made, or action taken, by the Committee or the Board arising out or in
      connection with the interpretation and administration of the Plan shall be
      final
      and conclusive. 

     

    6.    Meetings
      of
      the Committee shall be held at such times and places as shall be determined
      by
      the Committee. A majority of the members of the Committee shall constitute
      a
      quorum for the transaction of business, and the vote of a majority of those
      members present at any meeting shall decide any question brought before that
      meeting. In addition, the Company may take any action otherwise proper under
      the
      Plan by the affirmative vote, taken without a meeting, of a majority of its
      members. 

     

    7.    No
      member of
      the Committee shall be liable for any act or omission of any other member of
      the
      Committee or for any act or omission on his own part, including, but not limited
      to, the exercise of any power or discretion given to him under the Plan except
      those resulting form his own gross negligence or willful
      misconduct.

     

    8.    The
      Company,
      through its management, shall supply full and timely information to the
      Committee on all matters relating to the eligibility of Optionees, their duties
      and performance, and current information on any Optionee's death, retirement,
      disability or other termination of association with the Company, and such other
      pertinent information as the Committee may require. The Company shall furnish
      the Committee with such clerical and other assistance as is necessary in the
      performance of its duties hereunder. 

     

    ARTICLE
      IV 

    Shares
      Subject to the Plan 

     

    1.    The
      total
      number of shares of the Company available for grants of Stock Options under
      the
      Plan shall be 290,000,000 Common Shares, subject to adjustment as herein
      provided, which shares may be either authorized but unissued or reacquired
      Common Shares of the Company.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    2.    If
      a Stock
      Option or portion thereof shall expire or terminate for any reason without
      having been exercised in full, the unpurchased shares covered by such NQSO
      shall
      be available for future grants of Stock Options.

     

    ARTICLE
      V 

    Stock
      Option Terms and Conditions 

     

    1.    Consistent
      with the Plan's purpose, Stock Options may be granted to any person who is
      performing or who has been engaged to perform services relating to the
      operation, development and growth of the Company.

     

    2.    Determination
      of the option price per share for any stock option issues hereunder shall rest
      in the sole and unfettered discretion of the Committee. 

     

    3.    All
      Stock
      Options granted under the Plan shall be evidenced by agreements which shall
      be
      subject to applicable provisions of the Plan, and such other provisions as
      the
      Committee may adopt, including the provisions set forth in paragraphs 2 through
      11 of this Article V.

     

    4.    All
      Stock
      Options granted hereunder must be granted within ten years from the date this
      Plan is adopted. 

     

    5.    No
      Stock
      Option granted hereunder shall be exercisable after the expiration of ten years
      from the date such NQSO is granted. The Committee, in its discretion, may
      provide that an option shall be exercisable during such ten year period or
      during any lesser period of time. The Committee may establish installment
      exercise terms for a Stock Option such that the NQSO becomes fully exercisable
      in a series of cumulating portions. If an Optionee shall not, in any given
      installment period, purchase all the Common Shares which such Optionee is
      entitled to purchase within such installment period, such Optionee's right
      to
      purchase any Common Shares not purchased in such installment period shall
      continue until the expiration or sooner termination of such NQSO. The Committee
      may also accelerate the exercise of any NQSO. 

     

    6.    A
      Stock
      Option, or portion thereof, shall be exercised by deliver of (i) a written
      notice of exercise to the Company specifying the number of Common Shares to
      be
      purchased, and (ii) payment of the full exercise price of such Common Shares,
      as
      fully set forth in paragraph 7 of this Article V. The payment of the exercise
      price may be offset against a debt owed by the Company to the Optionee.  
No NQSO or installment thereof shall be reusable except with respect to whole
      shares, and fractional share interests shall be disregarded. Not less than
      100
      Common Shares may be purchased at one time unless the number purchased is the
      total number at the time available for purchase under the NQSO. Until the Common
      Shares represented by an exercised NQSO are issued to an Optionee, he shall
      have
      none of the rights of a shareholder.

     

    7.    The
      exercise
      price of a Stock Option, or portion thereof, may be paid: 

     

    A.    In
      United
      States dollars, in cash or by cashier's check, certified check, bank draft
      or
      money order, payable to the order of the Company in an amount equal to the
      option price or offset against an existing debt owed by the Company to the
      Optionee; or,     

     

    B.    At
      the
      discretion of the Committee, through the delivery of fully paid and
      nonassessable Common Shares, with an aggregate fair market value (determined
      as
      the average of the highest and lowest reported sales prices on the Common Shares
      as of the date of exercise of the NQSO, as reported by such responsible
      reporting service as the Committee may select, or if there were not transactions
      in the Common Shares on such day, then the last preceding day on which
      transactions took place), as of the date of the NQSO exercise equal to the
      option price, provided such tendered shares, or any derivative

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    security
      resulting in the issuance of Common Shares, have been owned by he Optionee
      for
      at least 30 days prior to such exercise; or, 

     

    C.    By
      a
      combination of both A and B above. 

     

    8.    The
      Committee
      shall determine acceptable methods for tendering Common Shares as payment upon
      exercise of a Stock Option and may impose such limitations and prohibitions
      on
      the use of Common Shares to exercise an NQSO as it deems appropriate.

     

    9.    With
      the
      Optionee's consent, the Committee may cancel any Stock Option issued under
      this
      Plan and issue a new NQSO to such Optionee. 

     

    10.    Except
      by
      will, the laws of descent and distribution, or with the written consent of
      the
      Committee, no right or interest in any Stock Option granted under the Plan
      shall
      be assignable or transferable, and no right or interest of any Optionee shall
      be
      liable for, or subject to, any lien, obligation or liability of the Optionee.
      Upon petition to, and thereafter with the written consent of the Committee,
      an
      Optionee may assign or transfer all or a portion of the Optionee's rights and
      interest in any stock option granted hereunder. Stock Options shall be
      exercisable during the Optionee's lifetime only by the Optionee or assignees,
      or
      the duly appointed legal representative of an incompetent Optionee, including
      following an assignment consented to by the Committee herein. 

     

    11.    No
      NQSO shall
      be exercisable while there is outstanding any other NQSO which was granted
      to
      the Optionee before the grant of such option under the Plan or any other plan
      which gives the right to the Optionee to purchase stock in the Company or in
      a
      corporation which is a parent corporation (as defined in Section 425(e) of
      the
      Code) of the Company, or any predecessor corporation of any of such corporations
      at the time of the grant. An NQSO shall be treated as outstanding until it
      is
      either exercised in full or expires by reason of lapse of time. 

     

    12.    Any
      Optionee
      who disposes of Common Shares acquired on the exercise of a NQSO by sale or
      exchange either (i) within two years after the date of the grant of the NQSO
      under which the stock was acquired, or (ii) within one year after the
      acquisition of such Shares, shall notify the Company of such disposition and
      of
      the amount realized upon such disposition. The transfer of Common Shares may
      also be restricted by applicable provisions of the Securities Act of 1933,
      as
      amended.

     

    ARTICLE
      VI

    Adjustments
      or Changes in Capitalization

     

    1.    In
      the event
      that the outstanding Common Shares of the Company are hereafter changed into
      or
      exchanged for a different number of kinds of shares or other securities of
      the
      Company by reason of merger, consolidation, other reorganization,
      recapitalization, reclassification, combination of shares, stock split-up or
      stock dividend:

     

    A.    Prompt,
      proportionate, equitable, lawful and adequate adjustment shall be made of the
      aggregate number and kind of shares subject to Stock Options which may be
      granted under the Plan, such that the Optionee shall have the right to purchase
      such Common Shares as may be issued in exchange for the Common Shares
      purchasable on exercise of the NQSO had such merger, consolidation, other
      reorganization, recapitalization, reclassification, combination of shares,
      stock
      split-up or stock dividend not taken place;

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    B.    Rights
      under
      unexercised Stock Options or portions thereof granted prior to any such change,
      both as to the number or kind of shares and the exercise price per share, shall
      be adjusted appropriately, provided that such adjustments shall be made without
      change in the total exercise price applicable to the unexercised portion of
      such
      NQSO's but by an adjustment in the price for each share covered by such NQSO's;
      or, 

     

    C.    Upon
      any
      dissolution or liquidation of the Company or any merger or combination in which
      the Company is not a surviving corporation, each outstanding Stock Option
      granted hereunder shall terminate, but the Optionee shall have the right,
      immediately prior to such dissolution, liquidation, merger or combination,
      to
      exercise his NQSO in whole or in part, to the extent that it shall not have
      been
      exercised, without regard to any installment exercise provisions in such NQSO.
      

     

    2.    The
      foregoing
      adjustment and the manner of application of the foregoing provisions shall
      be
      determined solely by the Committee, whose determination as to what adjustments
      shall be made and the extent thereof, shall be final, binding and conclusive.
      No
      fractional Shares shall be issued under the Plan on account of any such
      adjustments.   

     

    ARTICLE
      VII

    Merger,
      Consolidation or Tender Offer 

     

    1.    If
      the
      Company shall be a party to a binding agreement to any merger, consolidation
      or
      reorganization or sale of substantially all the assets of the Company, each
      outstanding Stock Option shall pertain and apply to the securities and/or
      property which a shareholder of the number of Common Shares of the Company
      subject to the NQSO would be entitled to receive pursuant to such merger,
      consolidation or reorganization or sale of assets.

     

    2.    In
      the event
      that: 

     

    A.    Any
      person
      other than the Company shall acquire more than 20% of the Common Shares of
      the
      Company through a tender offer, exchange offer or otherwise; 

     

    B.    A
      change in
      the "control" of the Company occurs, as such term is defined in Rule 405 under
      the Securities Act of 1933; 

     

    C.    There
      shall
      be a sale of all or substantially all of the assets of the Company; any then
      outstanding Stock Option held by an Optionee, who is deemed by the Committee
      to
      be a statutory officer ("insider") for purposes of Section 16 of the Securities
      Exchange Act of 1934 shall be entitled to receive, subject to any action by
      the
      Committee revoking such an entitlement as provided for below, in lieu of
      exercise of such Stock Option, to the extent that it is then exercisable, a
      cash
      payment in an amount equal to the difference between the aggregate exercise
      price of such NQSO, or portion thereof, and, (i) in the event of an offer or
      similar event, the final offer price per share paid for Common Shares, or such
      lower price as the Committee may determine to conform an option to preserve
      its
      Stock Option status, times the number of Common Shares covered by the NQSO
      or
      portion thereof, or (ii) in the case of an event covered by B or C above, the
      aggregate fair market value of the Common Shares covered b y the Stock Option,
      as determined by the Committee at such time. 

     

    3.    Any
      payment
      which the Company is required to make pursuant to paragraph 2 of this Article
      VII, shall be made within 15 business days, following the event which results
      in
      the Optionee's right to such payment. In the event of a tender offer in which
      fewer than all the shares which are validity tendered in compliance with such
      offer are purchased or exchanged, then only that portion of the shares covered
      by an NQSO as results from

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    multiplying
      such shares by a fraction, the numerator of which is the number of Common Shares
      acquired purchase to the offer and the denominator of which is the number of
      Common Shares tendered in compliance with such offer, shall be used to determine
      the payment thereupon. To the extent that all or any portion of a Stock Option
      shall be affected by this provision, all or such portion of the NQSO shall
      be
      terminated.

     

    4.    Notwithstanding
      paragraphs 1 and 3 of this Article VII, the Company may, by unanimous vote
      and
      resolution, unilaterally revoke the benefits of the above provisions; provided,
      however, that such vote is taken no later than ten business days following
      public announcement of the intent of an offer of the change of control,
      whichever occurs earlier. 

     

    ARTICLE
      VIII

    Amendment
      and Termination of Plan 

     

    1.    The
      Board may
      at any time, and from time to time, suspend or terminate the Plan in whole
      or in
      part or amend it from time to time in such respects as the Board may deem
      appropriate and in the best interest of the Company. 

     

    2.    No
      amendment,
      suspension or termination of this Plan shall, without the Optionee's consent,
      alter or impair any of the rights or obligations under any Stock Option
      theretofore granted to him under the Plan.

     

    3.    The
      Board may
      amend the Plan, subject to the limitations cited above, in such manner as it
      deems necessary to permit the granting of Stock Options meeting the requirements
      of future amendments or issued regulations, if any, to the Code. 

     

    4.    No
      NQSO may
      be granted during any suspension of the Plan or after termination of the Plan.
      

     

    ARTICLE
      IX

    Government
      and Other Regulations 

     

    The
      obligation of the Company to issue, transfer and deliver Common Shares for
      Stock
      Options exercised under the Plan shall be subject to all applicable laws,
      regulations, rules, orders and approval which shall then be in effect and
      required by the relevant stock exchanges on which the Common Shares are traded
      and by government entities as set forth below or as the Committee in its sole
      discretion shall deem necessary or advisable. Specifically, in connection with
      the Securities Act of 1933, as amended, upon exercise of any Stock Option,
      the
      Company shall not be required to issue Common Shares unless the Committee has
      received evidence satisfactory to it to the effect that the Optionee will not
      transfer such shares except pursuant to a registration statement in effect
      under
      such Act or unless an opinion of counsel satisfactory to the Company has been
      received by the Company to the effect that such registration is not required.
      Any determination in this connection by the Committee shall be final, binding
      and conclusive. The Company may, but shall in no event be obligated to take
      any
      other affirmative action in order to cause the exercise of a Stock Option or
      the
      issuance of Common Shares purchase thereto to comply with any law or regulation
      of any government authority. 

     

    ARTICLE
      X 

    Miscellaneous
      Provisions 

     

    1.    No
      person
      shall have any claim or right to be granted a Stock Option under the Plan,
      and
      the grant of an NQSO under the Plan shall not be construed as giving an Optionee
      the right to be retained by the Company. Furthermore, the Company expressly
      reserves the right at any time to terminate its relationship with an

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    Optionee
      with or without cause, free from any liability, or any claim under the Plan,
      except as provided herein, in an option agreement, or in any agreement between
      the Company and the Optionee. 

     

    2.    Any
      expenses
      of administering this Plan shall be borne by the Company.

     

    3.    The
      payment
      received from Optionee from the exercise of Stock Options under the Plan shall
      be used for the general corporate purposes of the Company.

     

    4.    The
      place of
      administration of the Plan shall be in the state of Nevada, and the validity,
      contraction, interpretation, administration and effect of the Plan and its
      rules
      and regulations, and rights relating to the Plan, shall be determined solely
      in
      accordance with the laws of the state of Nevada.

     

    5.    Without
      amending the Plan, grants may be made to persons who are foreign nationals
      or
      employed outside the United States, or both, on such terms and conditions,
      consistent with the Plan's purpose, different from those specified in the Plan
      as may, in the judgment of the Committee, be necessary or desirable to create
      equitable opportunities given differences in tax laws in other
      countries.

     

    6.    In
      addition
      to such other rights of indemnification as they may have as members of the
      Board
      or Committee, the members of the Committee shall be indemnified by the Company
      against all costs and expenses reasonably incurred by them in connection with
      any action, suite or proceeding to which they or any of them may be party by
      reason of any action taken or failure to act under or in connection with the
      Plan or any Stock Option granted thereunder, an against all amount paid by
      them
      in settlement thereof (provided such settlement is approved by independent
      legal
      counsel selected by the Company) or paid by them in satisfaction of a judgment
      in any such action, suit or proceeding, except a judgment based upon a finding
      of bad faith; provided that upon the institution of any such action, suit or
      proceeding a Committee member shall in writing, give the Company notice thereof
      and an opportunity, at its own expense, to handle and defend the same before
      such Committee member undertakes to handle and defend it on his own
      behalf.

     

    7.    Stock
      Options
      may be granted under this Plan form time to time, in substitution for stock
      options held by employees of other corporations who are about to become
      employees of the Company as the result of a merger or consolidation of the
      employing corporation with the Company or the acquisition by the Company of
      the
      assets of the employing corporation or the acquisition by the Company of stock
      of the employing corporation as a result of which it become a subsidiary of
      the
      Company. The terms and conditions of such substitute stock options so granted
      my
      vary from the terms and conditions set forth in this Plan to such extent as
      the
      Board of Director of the Company at the time of grant may deem appropriate
      to
      conform, in whole or in part, to the provisions of the stock options in
      substitution for which they are granted, but no such variations shall be such
      as
      to affect the status of any such substitute stock options as a stock option
      under Section 422A of the Code.

     

    8.    Notwithstanding
      anything to the contrary in the Plan, if the Committee finds by a majority
      vote,
      after full consideration of the facts presented on behalf of both the Company
      the Optionee, that the Optionee has been engaged in fraud, embezzlement, theft,
      commission of a felony or proven dishonesty in the course of his association
      with the Company or any subsidiary corporation which damaged the Company or
      any
      subsidiary corporation, or for disclosing trade secrets of the Company or any
      subsidiary corporation, the Optionee shall forfeit all unexercised Stock Options
      and all exercised NQSO's under which the Company has not yet delivered the
      certificates and which have been earlier granted the Optionee by the Committee.
      The decision of the Committee as to the case of an Optionee's discharge and
      the
      damage done to the Company shall be final. No decision of the Committee,
      however, shall affect the finality of the discharge of such Optionee by the
      Company

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    or
      any
      subsidiary corporation in any manner. Further, if Optionee voluntarily
      terminates employment with the Company, the Optionee shall forfeit all
      unexercised stock options.

     

    ARTICLE
      XI

    Written
      Agreement

     

    Each
      Stock Option granted hereunder shall be embodied in a written Stock Option
      Agreement which shall be subject to the terms and conditions prescribed above
      and shall be signed by the Optionee and by the President or any Vice President
      of the Company, for and in the name and on behalf of the Company. Such Stock
      Option Agreement shall contain such other provisions as the Committee, in its
      discretion shall deem advisable. 

     

    ARTICLE
      XII 

    Effective
      Date 

     

    This
      Plan
      shall become unconditionally effective as of the effective date of approval
      of
      the Plan by the Board of Directors of the Company. No Stock Option may be
      granted later than ten (10) years from the effective date of the Plan; provided,
      however, that the Plan and all outstanding Stock Options shall remain in effect
      until such NQSO's have expired or until such options are cancelled.

     

    
      	
              Number
                of Shares: _______________

            	
              Date
                of Grant: _______________    
                

            

    

    

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    NONQUALIFIED
      STOCK OPTION AGREEMENT 

     

     

    AGREEMENT
      made this _____ day of __________________, 20____, between
      ____________________________ (the "Optionee"), and AMERICHIP INTERNATIONAL
      INC.,
      a Nevada corporation (the "Company").

     

    1.
 
      Grant of Option. The Company, pursuant to the provisions of the AMERICHIP
      INTERNATIONAL, INC. AMENDED AND RESTATED 2003 Nonqualified Stock Option Plan
      (the "2003 Plan"), set forth as Attachment A hereto, hereby grants to the
      Optionee, subject to the terms and conditions set forth or incorporated herein,
      an Option and Purchase from the Company all or any part of an aggregate of
      _______________ Common Shares, as such Common Shares are now constituted, at
      the
      purchase price of $_______________ per share. The provisions of the 2003 Plan
      governing the terms and conditions of the Option granted hereby are incorporated
      in full herein by reference. 

     

    2.
 
      Exercise. The Option evidenced hereby shall be exercisable in whole or in part
      (but only in multiples of 100 Shares unless such exercise is as to the remaining
      balance of this Option) on or after __________________, 20___ and on or before
      _________________, 20___, provided that the cumulative number of Common Shares
      as to which this Option may be exercised (except as provided in paragraph 1
      of
      Article VI of this 2003 Plan) shall not exceed the following amounts:  

     

    
      	
              Cumulative
                Number of Shares

            	
              Prior
                to Date (Not Inclusive of)

            

    

     

    The
      Option evidenced hereby shall be exercisable by the deliver to and receipt
      by
      the Company of (i) a written notice of election to exercise, in the form set
      forth in Attachment B hereto, specifying the number of shares to be purchased;
      (ii) accompanied by payment of the full purchase price thereof in case or
      certified check payable to the order of the Company, or by fully-paid and
      nonassessable Common Shares of the Company properly endorsed over to the
      Company, or by a combination thereof; and, (iii) by return of this Stock Option
      Agreement for endorsement of exercise by the Company on Schedule I hereof.
      In
      the event fully paid and nonassessable Common Shares are submitted as whole
      or
      partial payment for Shares to be purchased hereunder, such Common Shares will
      be
      valued at their Fair Market Value (as defined in the 2003 Plan) on the date
      such
      Shares are received by the Company and applied to payment of the exercise price.
      

     

     

    3.
 
      Transferability. The Option evidenced hereby is NOT assignable or transferable
      by the Optionee other than by the Optionee's will, by the laws of descent and
      distribution, as provided in paragraph 9 of Article V of the 2003 Plan. The
      Option shall be exercisable only by the Optionee during his lifetime.

     

    
      	 	 	 	 	 	 	
              AMERICHIP
                INTERNATIONAL, INC.

            
	 
	 	 	 	 	 	 	
              BY:
                

            	
              ______________________________
                

            
	 	 	 	 	 	 	
            	
              Marc
                Walther, Chief Executive Officer

            
	
              ATTEST:
                

            
	 
	
              ________________________________________
                

            
	
              Secretary
                

            

    

    

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    Optionee
      hereby acknowledges receipt of a copy of the 2003 Plan, attached hereto and
      accepts this Option subject to each and every term and provision of such Plan.
      Optionee hereby agrees to accept as binding, conclusive and final, all decisions
      or interpretations of the Compensation Committee of the Board of Directors
      administering the 2003 Plan on any questions arising under such Plan. Optionee
      recognizes that if Optionee's employment with the Company or any subsidiary
      thereof shall be terminated with cause, or by the Optionee, all of the
      Optionee's rights hereunder shall thereupon terminate; and that, pursuant to
      paragraph 10 of Article V of the 2003 Plan, this Option may not be exercised
      while there is outstanding to Optionee any unexercised Stock Option, granted
      to
      Optionee before the date of grant of this Option, to purchase Common Shares
      of
      the Company or any parent or subsidiary thereof. 

     

     

    Dated:
      _________________________________ 

     

    
      	
            	
               

            	
               

            	
               

            	
               

            	
               

            	
              ___________________________________
                

            
	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
              Optionee
                

            
	 	 	 	 	 	 	 
	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
              ___________________________________
                

            
	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
              Type
                or Print Name 

            
	 	 	 	 	 	 	 
	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
              ___________________________________

            
	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
              Address
                

            
	 	 	 	 	 	 	 
	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
              ___________________________________
                

            
	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
              Social
                Security No.

            

    

    

     

    Date:

     

    Secretary,

    AMERICHIP
      INTERNATIONAL, INC. 

    9282
      General Drive, Ste 100, Plymouth MI 48107

     

    Dear
      Sir:

     

    In
      accordance with paragraph 2 of the Nonqualified Stock Option Agreement
      evidencing the Option granted to me on _____________________ under the AMERICHIP
      INTERNATIONAL, INC. AMENDED AND RESTATED 2003 Nonqualified Stock Option Plan,
      I
      hereby elect to exercise this Option to the extent of __________________ Common
      Shares.

     

    Enclosed
      are (i) Certificate(s) No.(s) ____________________ representing fully-paid
      common shares of AMERICHIP INTERNATIONAL, INC. endorsed to the Company with
      signature guaranteed, and/or a certified check payable to the order of AMERICHIP
      INTERNATIONAL, INC. in the amount of $_______________ as the balance of the
      purchase price of $______________ for the Shares which I have elected to
      purchase and (ii) the original Stock Option Agreement for endorsement by the
      Company as to exercise on Schedule I thereof. I acknowledge that the Common
      Shares (if any) submitted as part payment for the exercise price due hereunder
      will be valued by the Company at their Fair Market Value (as defined in the
      2003
      Plan) on the date this Option exercise is effected by the Company. In the event
      I hereafter sell any Common Shares issued pursuant to this option exercise
      within one year from the date of exercise or within two years after the date
      of
      grant of this Option, I agree to notify the Company promptly of the amount
      of
      taxable compensation realized by me by reason of such sale for federal income
      tax purposes.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    When
      the
      certificate for Common Shares which I have elected to purchase has been issued,
      please deliver it to me, along with my endorsed Stock Option Agreement in the
      event there remains an unexercised balance of Shares under the Option, at the
      following address:

     

    Include
      Optionee's address here.

     

    
      	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
              __________________________________
                

            
	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
              Signature
                of Optionee 

            
	 	 	 	 	 	 	 	 
	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
              __________________________________
                

            
	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
              Type
                or Print Name

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