Document:

fs81208ex10_snap.htm

     

    Exhibit
10.1

    
      

      

      SNAP
INTERACTIVE, INC.

      EQUITY INCENTIVE
PLAN

      

      1.           Purpose. The purpose
of the plan is to provide incentives to attract, retain and motivate eligible
persons whose present and potential contributions are important to the success
of SNAP INTERACTIVE, INC. a Delaware corporation (the “Company”), and its
Subsidiaries and Affiliates, by offering them an opportunity to participate in
the Company’s future performance through awards of Options and Free Trading
Stock. Capitalized terms not defined in the text are defined in Section
22.

      

      2.           Shares Subject to the Plan;
Per-Person Award Limitation.

      

      2.1 Number of Shares
Available. Subject to Sections 2.2 and 17, the total number of Shares
reserved and available for grant and issuance pursuant to the Plan shall be Five
Hundred Thousand (500,000) Shares. Subject to Sections 2.2 and 17, Shares shall
again be available for grant and issuance in connection with future Awards under
the Plan that: (a) are subject to issuance upon exercise of an Option but cease
to be subject to such Option for any reason other than exercise of such Option;
(b) are subject to an Award granted hereunder but are forfeited; or (c) are
subject to an Award that otherwise terminates without Shares being issued.
Subject to Sections 2.2 and 17, in no event shall the aggregate number of Shares
that may be issued pursuant to incentive stock options exceed Five Hundred
Thousand (500,000) Shares.

      

      2.2  Adjustment of Shares.
In the event that the number of outstanding Shares is changed by a stock
dividend, recapitalization, stock split, reverse stock split, subdivision or
similar change in the capital structure of the Company without consideration,
then: (a) the number of Shares reserved for issuance under the Plan; (b) the
Exercise Prices of and number of Shares subject to outstanding Options; and (c)
the number of Shares subject to other outstanding Awards shall be
proportionately adjusted, subject to any required action by the Board or the
shareholders of the Company and in compliance with applicable securities
laws.

      

      3.          
Eligibility.

      

      3.1 General.
All  Awards set forth herein may be granted to employees, officers,
directors,  consultants and advisors of the Company or any Parent,
Subsidiary or Affiliate of the Company, provided such consultants and advisors
render bona fide services not in connection with the offer and sale of
securities in a capital-raising transaction. A person may be granted more than
one Award under the Plan.

      

      4.          
Administration.

      

      4.1 Compensation Board.
The Plan shall be administered by a by the Company's Board of Directors. Any
determination made by the Board with respect to any Award shall be made in its
sole discretion at the time of grant of the Award or, unless in contravention of
any express term of the Plan or Award, at any later time, and such determination
shall be final and binding on the Company and all persons having an interest in
any Award under the Plan.

       

       

      
        
          
          

        

        
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      4.2 Board Authority.
Subject to the general purposes, terms and conditions of the Board, the Board
shall have full power to implement and carry out the Plan. The Board may
delegate to one or more officers of the Company the authority to make
recommendations to grant an Award under the Plan to Participants who are not
Insiders of the Company. The Board shall have the authority to:

      

      
        	
                 
      

              	
                (a)

              	
                construe
      and interpret the Plan, any Award Agreement and any other agreement or
      document executed pursuant to the
Plan;

              

      

      
        	
                 
      

              	
                (b)

              	
                recommend
      to the Board amendments to the rules and regulations relating to the
      Plan;

              

      

      
        	
                 
      

              	
                (c)

              	
                select
      the persons to receive Awards;

              

      

      
        	
                 
      

              	
                (d)

              	
                determine
      the form and terms of Awards;

              

      

      
        	
                 
      

              	
                (e)

              	
                determine
      the number of Shares or other consideration subject to
    Awards;

              

      

      
        	
                 
      

              	
                (f)

              	
                determine
      whether Awards will be granted singly, in combination, in tandem with, in
      replacement of, or as alternatives to, other Awards under the Plan or any
      other incentive or compensation plan of the Company or any Parent,
      Subsidiary or Affiliate of the
Company;

              

      

      
        	
                 
      

              	
                (g)

              	
                determine
      the granting of certain waivers of Plan or Award
    conditions;

              

      

      
        	
                 
      

              	
                (h)

              	
                determine
      the conditions concerning the vesting, exercisability and payment of
      Awards;

              

      

      
        	
                 
      

              	
                (i)

              	
                recommend
      to the Board such matters so as to correct any defect, supply any
      omission, or reconcile any inconsistency in the Plan, any Award or any
      Award Agreement;

              

      

      
        	
                 
      

              	
                (j)

              	
                determine
      whether an Award has been earned;
and

              

      

      
        	
                 
      

              	
                (k)

              	
                make
      all other determinations necessary or advisable for the administration of
      the Plan.

              

      

      

      5.          
Options. The
Board may grant Options to eligible persons and shall determine whether such
Options shall be Incentive Stock Options within the meaning of the Code (“ISO”)
or Nonqualified Stock Options (“NQSO”), the number of Shares subject to the
Option, the Exercise Price of the Option, the period during which the Option may
be exercised, and all other terms and conditions of the Option, subject to the
following:

      

      5.1 Form of Option Grant.
Each Option granted under the Plan shall be evidenced by an Award Agreement
which shall expressly identify the Option as an ISO or NQSO (“Stock Option
Agreement”), and be in such form and contain such provisions (which need not be
the same for each Participant) as the Board shall from time to time approve, and
which shall comply with and be subject to the terms and conditions of the
Plan.

       

       

      
        
          
          

        

        
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      5.2 Date of Grant. The
date of grant of an Option shall be the date on which the Board makes the
determination to grant such Option, unless otherwise specified by the Board. The
Stock Option Agreement and a copy of the Plan will be delivered to the
Participant within a reasonable time after the granting of the
Option.

      

      5.3 Exercise Period.
Options shall be exercisable within the times or upon the events determined by
the Board as set forth in the Stock Option Agreement; provided, however, that no
Option shall be exercisable after the expiration of ten (10) years from the date
the Option is granted, and provided further that no Option granted to a person
who directly or by attribution owns more than ten percent (10%) of the total
combined voting power of all classes of stock of the Company or any Parent or
Subsidiary of the Company (“Ten Percent Shareholder”) shall be exercisable after
the expiration of one (1) year from the date the Option is granted. The Board
also may provide for the Options to become exercisable at one time or from time
to time, periodically or otherwise, in such number or percentage as the Board
determines.

      

      5.4 Exercise Price. The
Exercise Price shall be determined by the Board when the Option is granted and
may be not less than the par value of a Share on the date of grant provided
that: (i) the Exercise Price of an ISO shall be not less than one hundred
percent (100%) of the Fair Market Value of the Shares on the date of grant; (ii)
the Exercise Price of any ISO granted to a Ten Percent Shareholder shall not be
less than one hundred percent (100%) of the Fair Market Value of the Shares on
the date of grant; and (iii) the Exercise Price of any option granted that the
Board intends to qualify under Section 162(m) of the Code, shall not be less
than one hundred percent (100%) of the Fair Market Value of the Shares on the
date of grant. Payment for the Shares purchased may be made in accordance with
Section 7 of the Plan.

      

      5.5 Method of Exercise.
Options may be exercised only by delivery to the Company of a written stock
option exercise agreement (the “Exercise Agreement”) in a form approved by the
Board (which need not be the same for each Participant), stating the number of
Shares being purchased, the restrictions imposed on the Shares, if any, and such
representations and agreements regarding Participant’s investment intent and
access to information and other matters, if any, as may be required or desirable
by the Company to comply with applicable securities laws, together with payment
in full of the Exercise Price for the number of Shares being
purchased.

      

      5.6 Termination. Unless
otherwise set forth in the Stock Option Agreement, the exercise of an Option
shall be subject to the following:

      

      
        	
                 
      

              	
                (a)
      If the Participant is Terminated for any reason except death or
      Disability, then Participant may exercise such Participant’s Options only
      to the extent that such Options would have been exercisable upon the
      Termination Date no later than three (3) months after the Termination Date
      (or such shorter time period as may be specified in the Stock Option
      Agreement), but in any event, no later than the expiration date of the
      Options.

              

      

       

       

      
        
          
          

        

        
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                (b)
      If the Participant is terminated because of death or Disability (or the
      Participant dies within three (3) months of such termination), then
      Participant’s Options may be exercised only to the extent that such
      Options would have been exercisable by Participant on the Termination Date
      and must be exercised by Participant (or Participant’s legal
      representative or authorized assignee) no later than twelve (12) months
      after the Termination Date (or such shorter time period as may be
      specified in the Stock Option Agreement), but in any event no later than
      the expiration date of the Options; provided, however, that in the event
      of termination due to Disability other than as defined in Section 22(e)(3)
      of the Code, any ISO that remains exercisable after ninety (90) days after
      the date of termination shall be deemed a
NQSO.

              

      

      

      5.7 Limitations on
Exercise. The Board may specify a reasonable minimum number of Shares
that may be purchased on any exercise of an Option, provided that such minimum
number will not prevent Participant from exercising the Option for the full
number of Shares for which it is then exercisable.

       

      5.8 Modification, Extension or
Renewal. The Board may modify, extend or renew outstanding Options and
authorize the grant of new Options in substitution therefore, provided that any
such action may not without the written consent of Participant, impair any of
Participant’s rights under any Option previously granted. Any outstanding ISO
that is modified, extended, renewed or otherwise altered shall be treated in
accordance with Section 424(h) of the Code. The Board may reduce the Exercise
Price of outstanding Options without the consent of Participants affected by a
written notice to them; provided, however, that the Exercise Price may not be
reduced below the minimum Exercise Price that would be permitted under Section
5.4 of the Plan for Options granted on the date the action is taken to reduce
the Exercise Price.

      

      5.9 No Disqualification.
Notwithstanding any other provision in the Plan, no term of the Plan relating to
ISOs shall be interpreted, amended or altered, nor shall any discretion or
authority granted under the Plan be exercised, so as to disqualify the Plan
under Section 422 of the Code or, without the consent of the Participant
affected, to disqualify any ISO under Section 422 of the Code.

       

       

      
        
          
          

        

        
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      6.          
Payment For Share
Purchases.

      

      6.1 Payment. Payment for
Shares purchased pursuant to the Plan may be made in cash (by check) or, where
expressly approved for the Participant by the Board and where permitted by
law:

      

      
        	
                 
      

              	
                (a)
      by cancellation of indebtedness of the Company to the
      Participant;

              

      

      

      
        	
                 
      

              	
                (b)
      by transfer of Shares that either (1) have been owned by Participant for
      more than six (6) months and have been paid for within the meaning of SEC
      Rule 144; or (2) were obtained by Participant in the public
      market;

              

      

      

      
        	
                 
      

              	
                (c)
      by waiver of compensation due or accrued to Participant for services
      rendered;

              

      

      

      
        	
                 
      

              	
                (d)
      by tender of property;

              

      

      

      
        	
                 
      

              	
                (e)
      with a promissory note in favor of the Company, which such note shall (1)
      provide for full recourse to the maker, (2) be collateralized by the
      pledge of the Shares that the Optionee purchases upon exercise of the
      Option, (3) bear interest at the prime rate of the Company’s principal
      lender, and (4) contain such other terms as the Board in its sole
      discretion shall reasonably
require;

              

      

      

      
        	
                 
      

              	
                (f)
      by a “cashless exercise” in which Shares which would otherwise be
      delivered upon exercise of the Option may be used to satisfy the payment
      of the exercise price of the Option, in accordance with the following
      formula:

              

      

       

      X = Y (A-B)

      
        	
                 
      

              	
                A

              

      

      

      Where:

      X = the
number of Shares to be issued to Optionee.

      Y = the
number of Shares purchasable under the amount of the Option being
exercised

      A = the
per Share Fair Market Value

      
        	
                 
      

              	
                B =
      the per Share Exercise Price of the
Option

              

      

      

      
        	
                 
      

              	
                (g)
      with respect only to purchases upon exercise of an Option, and provided
      that a public market for the Company’s stock
  exists:

              

      

      

      
        	
                 
      

              	
                (1)
      through a “same day sale” commitment from Participant and a broker-dealer
      that is a member of the National Association of Securities Dealers (an
      “NASD Dealer”) whereby the Participant irrevocably elects to exercise the
      Option and to sell a portion of the Shares so purchased to pay for the
      Exercise Price, and whereby the NASD Dealer irrevocably commits upon
      receipt of such Shares to forward the Exercise Price directly to the
      Company; or

              

      

       

       

      
        
          
          

        

        
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                (2)
      through a “margin” commitment from Participant and an NASD Dealer whereby
      Participant irrevocably elects to exercise the Option and to pledge the
      Shares so purchased to the NASD Dealer in a margin account as security for
      a loan from the NASD Dealer in the amount of the Exercise Price, and
      whereby the NASD Dealer irrevocably commits upon receipt of such Shares to
      forward the exercise price directly to the Company;
  or

              

      

      
        	
                 
      

              	
                 

              	
                

                  (h)
      by any combination of the
foregoing.

                

              

      

      

      If the
Exercise Price or purchase price is paid in whole or in part with Shares or
through the withholding of Shares issuable upon exercise of the Option, the
value of the Shares surrendered or withheld shall be their Fair Market Value on
the date the Option is exercised.

      

      7.          
Withholding
Taxes.

      

      7.1 Withholding
Generally. Whenever Shares are to be issued in satisfaction of Awards
granted under the Plan, the Company may require the Participant to remit to the
Company an amount sufficient to satisfy federal, state and local withholding tax
requirements prior to the delivery of any certificate or certificates for such
Shares. Whenever, under the Plan, payments in satisfaction of Awards are to be
made in cash, such payment shall be net of an amount sufficient to satisfy
federal, state, and local withholding tax requirements.

      

      7.2 Stock Withholding.
When, under applicable tax laws, a Participant incurs tax liability in
connection with the exercise or vesting of any Award that is subject to tax
withholding and the Participant is obligated to pay the Company the amount
required to be withheld, the Board may allow the Participant to satisfy the
minimum withholding tax obligation by electing to have the Company withhold from
the Shares to be issued that number of Shares having a Fair Market Value equal
to the minimum amount required to be withheld, determined on the date that the
amount of tax to be withheld is to be determined (the “Tax Date”). All elections
by a Participant to have Shares withheld for this purpose shall be made in
writing in a form acceptable to the Board and shall be subject to the following
restrictions:

      

      
        	
                 
      

              	
                (a)
      the election must be made on or prior to the applicable Tax
      Date;

              

      

       

       

      
        
          
          

        

        
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                (b)
      once made, then except as provided below, the election shall be
      irrevocable as to the particular Shares as to which the election is
      made;

              

      

      

      
        	
                 
      

              	
                (c)
      all elections shall be subject to the consent or disapproval of
      the         Board;

              

      

      

      
        	
                 
      

              	
                (d)
      if the Participant is an Insider and if the Company is subject to Section
      1 6(b) of the Exchange Act: (1) the election may not be made within six
      (6) months of the date of grant of the Award, except as otherwise
      permitted by SEC Rule 1 6b-3(e) under the Exchange Act, and (2) either (A)
      the election to use stock withholding must be irrevocably made at least
      six (6) months prior to the Tax Date (although such election may be
      revoked at any time at least six (6) months prior to the Tax Date) or (B)
      the exercise of the Option or election to use stock withholding must be
      made in the ten (10) day period beginning on the third day following the
      release of the Company’s quarterly or annual summary statement of sales or
      earnings; and

              

      

      

      
        	
                 
      

              	
                (e)
      in the event that the Tax Date is deferred until six (6) months after the
      delivery of Shares under Section 83(b) of the Code, the Participant shall
      receive the full number of Shares with respect to which the exercise
      occurs, but such Participant shall be unconditionally obligated to tender
      back to the Company the proper number of Shares on the Tax
      Date.

              

      

      

      8.           Privileges of Stock
Ownership. No Participant shall have any of the rights of a shareholder
with respect to any Shares until the Shares are issued to the Participant. After
Shares are issued to the Participant, the Participant shall be a shareholder and
have all the rights of a shareholder with respect to such Shares, including the
right to vote and receive all dividends or other distributions made or paid with
respect to such Shares; provided, that if such Shares are Restricted Stock, then
any new, additional or different securities the Participant may become entitled
to receive with respect to such Shares by virtue of a stock dividend, stock
split or any other change in the corporate or capital structure of the Company
shall be subject to the same restrictions as the Restricted Stock.

      

      9.           Transferability.
Awards granted under the Plan, and any interest therein, shall not be
transferable or assignable by Participant, and may not be made subject to
execution, attachment or similar process, otherwise than by will or by the laws
of descent and distribution or as consistent with the specific Plan and Award
Agreement provisions relating thereto. During the lifetime of the Participant an
Award shall be exercisable only by the Participant, and any elections with
respect to an Award, may be made only by the Participant.

       

      
        
          
          

        

        
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      10.           Restrictions on
Shares. At the discretion of the Board, the Company may reserve to itself
and/or its assignee(s) in the Award Agreement a right of first refusal to
purchase all Shares that a Participant (or a subsequent transferee) may propose
to transfer to a third party.

      

      11.           Certificates. All
certificates for Shares or other securities delivered under the Plan shall be
subject to such stock transfer orders, legends and other restrictions as the
Board may deem necessary or advisable, including restrictions under any
applicable federal, state or foreign securities law, or any rules, regulations
and other requirements of the SEC or any stock exchange or automated quotation
system upon which the Shares may be listed.

      

      12.           Escrow; Pledge of
Shares. To enforce any restrictions on a Participant’s Shares, the Board
may require the Participant to deposit all certificates representing Shares,
together with stock powers or other instruments of transfer approved by the
Board, appropriately endorsed in blank, with the Company or an agent designated
by the Company to hold in escrow until such restrictions have lapsed or
terminated, and the Board may cause a legend or legends referencing such
restrictions to be placed on the certificates.

      

      13.           Exchange and Buy out of
Awards. The Board, may, at any time or from time to time, authorize the
Company, with the consent of the respective Participants, to issue new Awards in
exchange for the surrender and cancellation of any or all outstanding Awards.
The Company may at any time buy from a Participant an Award previously granted
with payment in cash, Shares (including Restricted Stock) or other
consideration, based on such terms and conditions as the Company and the
Participant shall agree.

      

      14.         
Securities Law and
Other Regulatory Compliance. An Award shall not be effective unless such
Award is in compliance with all applicable federal and state securities laws,
rules and regulations of any governmental body, and the requirements of any
stock exchange or automated quotation system upon which the Shares may then be
listed, as they are in effect on the date of grant of the Award and also on the
date of exercise or other Issuance. Notwithstanding any other provision in the
Plan, the Company shall have no obligation to issue or deliver certificates for
Shares under the Plan prior to: (a) obtaining any approvals from governmental
agencies that the Company determines are necessary or advisable, and/or (b)
completion of any registration or other qualification of such shares under any
state or federal law or ruling of any governmental body that the Company
determines to be necessary or advisable. The Company shall be under no
obligation to register the Shares with the SEC or to effect compliance with the
registration, qualification or listing requirements of any state securities
laws, stock exchange or automated quotation system, and the Company shall have
no liability for any inability or failure to do so.

      

      15.         
No Obligation to
Employ. Nothing in the Plan or any Award granted under the Plan shall
confer or be deemed to confer on any Participant any right to continue in the
employ of, or to continue any other relationship with, the Company or any
Parent, Subsidiary or Affiliate of the Company or limit in any way the right of
the Company or any Parent, Subsidiary or Affiliate of the Company to terminate
Participant’s employment or other relationship at any time, with or without
cause.

       

      
        
          
          

        

        
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      16.         
Corporate
Transactions.

      

      16.1
Assumption or
Replacement of Awards by Successor. In the event of (a) a merger or
consolidation in which the Company is not the surviving corporation (other than
a merger or consolidation with a wholly-owned subsidiary, a reincorporation of
the Company in a different jurisdiction, or other transaction in which there is
no substantial change in the shareholders of the company and the Awards granted
under the Plan are assumed or replaced by the successor corporation, which
assumption shall be binding on all Participants); (b) a dissolution or
liquidation of the Company; (c) the sale of substantially all of the assets of
the Company; or (d) any other transaction which qualifies as a “corporate
transaction” under Section 424(a) of the Code wherein the shareholders of the
Company give up all of their equity interest in the Company (except for the
acquisition, sale or transfer of all or substantially all of the outstanding
shares of the Company), all outstanding Awards may, to the extent permitted by
applicable law, be replaced by the successor corporation (if any) with Awards of
equivalent value, which replacement shall be binding on all Participants. In the
alternative, substantially similar consideration may be provided to Participants
as was provided to shareholders (after taking into account the existing
provisions of the Awards). The successor corporation may also issue, in place of
outstanding Shares of the Company held by the Participant, substantially similar
shares or other property subject to repurchase restrictions no less favorable to
the Participant.

      

      16.2
Other Treatment of
Awards. Subject to any greater rights granted to Participants under the
foregoing provisions of this Section 17, in the event of the occurrence of any
transaction described in Section 17.1, any outstanding Awards shall be treated
as provided in the applicable agreement or plan of merger, consolidation,
dissolution, liquidation, sale of assets or other “corporate
transaction.”

      

      16.3
Assumption of Awards
by the Company. The Company, from time to time, also may grant Awards
identical to awards granted by another company, whether in connection with an
acquisition of such other company or otherwise, by granting an Award under the
Plan in replacement of such other company’s award. Such replacement shall be
permissible if the holder of the replaced award would have been eligible to be
granted an Award under the Plan if the other company had applied the rules of
the Plan to such grant. In the event the Company grants Awards identical to an
award granted by another company, the terms and conditions of such award shall
remain unchanged (except that the exercise price and the number and nature of
Shares issuable upon exercise of any such option will be adjusted approximately
pursuant to Section 424(a) of the Code).

       

       

      
        
          
          

        

        
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      17.           Adoption and Shareholder
Approval. The Plan shall become effective on the date that it is adopted
by the Board (the “Effective Date”). The Plan shall be approved by the
shareholders of the Company (excluding Shares issued pursuant to this Plan),
consistent with applicable laws, within twelve months before or after the
Effective Date. Upon the Effective Date, the Board may grant Awards pursuant to
the Plan; provided, however, that: (a) no Option may be exercised prior to
initial shareholder approval of the Plan; (b) no Option granted pursuant to an
increase in the number of Shares approved by the Board shall be exercised prior
to the time such increase has been approved by the shareholders of the Company;
and in the event that shareholder approval is not obtained within the time
period provided herein, all Awards granted hereunder shall be canceled, any
Shares issued pursuant to any Award shall be canceled and any purchase of Shares
hereunder shall be rescinded. After the Company becomes subject to Section 16(b)
of the Exchange Act, the Company will comply with the requirements of Rule 16b-3
(or its successor), as amended, with respect to shareholder
approval.

      

      18.           Term of Plan. The
Plan will terminate ten (10) years from the Effective Date or, if earlier, the
date of shareholder approval of the Plan.

      

      19.           Amendment or Termination of
Plan. The Board may at any time terminate or amend the Plan in any
respect, including without limitation amendment of any form of Award Agreement
or instrument to be executed pursuant to the Plan; provided, however, that: (a)
the Board shall not, without the approval of the shareholders of the Company,
amend the Plan in any manner that requires such shareholder approval pursuant to
the Code or the regulations promulgated thereunder as such provisions apply to
ISO plans or pursuant to the Exchange Act or Rule 16b-3 (or its successor), as
amended, thereunder; and (b) no outstanding Award shall be deemed effected by
such amendment without the advance written consent of the Participant(s) holding
such outstanding Award(s) at the time of the proposed termination or
amendment.

      

      20.           Nonexclusivity of the Plan.
Neither the adoption of the Plan by the Board, the submission of the Plan
to the shareholders of the Company for approval, nor any provision of the Plan
shall be construed as creating any limitations on the power of the Board to
adopt such additional compensation arrangements as it may deem desirable,
including, without limitation, the granting of stock options and bonuses
otherwise than under the Plan, and such arrangements may be either generally
applicable or applicable only in specific cases.

      

      21.          
 Definitions. As used
in the Plan, the following terms shall have the following meanings:

       

      “Affiliate”
means any corporation that directly, or indirectly through one or more
intermediaries, controls or is controlled by, or is under common control with,
another corporation, where “control” (including the terms “controlled by” and
“under common control with”) means the possession, direct or indirect, of the
power to cause the direction of the management and policies of the corporation,
whether through the ownership of voting securities, by contract or
otherwise.

       

      
        
          
          

        

        
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      “Award”
means any award under the Plan, including any Option or Restricted
Stock.

      

      “Award Agreement” means, with respect
to each Award, the signed written agreement between the Company and the
Participant setting forth the terms and conditions of the Award.

      

      “Board” means the Board of Directors of
the Company.

      

      “Code” means the Internal Revenue Code
of 1986, as amended.

      

      “Board” means a Board appointed by the
Company's Compensation Board (said Compensation Board itself being first
appointed by the Company's Board).

      

      “Company” means SNAP INTERACTIVE, INC.,
a Delaware corporation, or any successor company.

      

      “Disability” means a disability,
whether temporary or permanent, partial or total, as determined by the
Board.

      

      “Disinterested Person” means a director
who has not, during the period that person is a member of the Board and for one
(1) year prior to service as a member of the Board, been granted or awarded
equity securities pursuant to the Plan or any other plan of the Company or any
Parent, Subsidiary or Affiliate of the Company, except in accordance with the
requirements set forth in Rule 16b-3(c)(2)(I) (and any successor regulation
thereto) as promulgated by the SEC under Section 16(b) of the Exchange Act, as
such rule is amended from time to time and as interpreted by the
SEC.

      

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

      

      “Exercise Price” means the price at
which a holder of an Option may purchase the Shares issuable upon exercise of
the Option.

      

      “Fair Market Value” means, as of any
date, the value of a share of the Company’s Common Stock determined as
follows:

      

      
        	
                 
      

              	
                (a)
      if such Common Stock is then quoted on the Nasdaq market, its last
      reported sale price on the Nasdaq market or, if no such reported sale
      takes place on such date, the average of the closing bid and asked
      prices;

              

      

      

      
        	
                 
      

              	
                (b)
      if such Common Stock is publicly traded and is then listed on a national
      securities exchange, the last reported sale price or, if no such reported
      sale takes place on such date, the average of the closing bid and asked
      prices on the principal national securities exchange on which the Common
      Stock is listed or admitted to
trading;

              

      

       

       

      
        
          
          

        

        
          -11-

          
            

          

        

        
          
          

        

      

       

      
 

      
        	
                 
      

              	
                (c)
      if such Common Stock is publicly traded but is not quoted on a Nasdaq
      market nor listed or admitted to trading on a national securities
      exchange, the average of the closing bid and asked prices on such date, as
      reported by The Wall Street Journal, for the over-the-counter market;
      or

              

      

      

      
        	
                 
      

              	
                (d)
      if none of the foregoing is applicable, by the Board of Directors of the
      Company in good faith.

              

      

      

      “Insider” means an officer or director
of the Company or any other person whose transactions in the Company’s Common
Stock are subject to Section 16 of the Exchange Act.

      

      “Option” means an award of an option to
purchase Shares pursuant to Section 5.

      

      “Parent” means any corporation (other
than the Company) in an unbroken chain of corporations ending with the Company,
if at the time of the granting of an Award under the Plan, each of such
corporations other than the Company owns stock possessing fifty percent (50%),
or more, of the total combined voting power of all classes of stock in one of
the other corporations in such chain.

      

      “Participant” means a person who
receives an Award under the Plan.

      

      “Plan” means this Snap Interactive,
Inc. Equity Incentive Plan, as amended from time to time.

      

      “Restricted
Stock Award” means an award of Shares pursuant to Section

      

      “SEC”
means the Securities and Exchange Commission.

      

      “Securities
Act” means the Securities Act of 1933, as amended.

      

      “Shares”
means shares of the Company’s Common Stock reserved for issuance under the Plan,
as adjusted pursuant to Sections 2 and 17, and any successor
security.

      

      “Subsidiary”
means any corporation (other than the Company) in an unbroken chain of
corporations beginning with the Company if, at the time of granting of the
Award, each of the corporations other than the last corporation in the unbroken
chain owns stock possessing fifty percent (50%), or more, of the total combined
voting power of all classes of stock in one of the other corporations in such
claim.

       

       

      
        
          
          

        

        
          -12-

          
            

          

        

        
          
          

        

      

      
 

      “Termination”
or “Terminated” means, for purposes of the Plan with respect to a Participant,
that the Participant has ceased to provide services as an employee, director,
consultant or advisor, to the Company or a Parent, Subsidiary or Affiliate of
the Company, except in the case of sick leave, military leave, or any other
leave of absence approved by the Board, provided, that such leave is for a
period of not more than ninety (90) days, or reinstatement upon the expiration
of such leave is guaranteed by contract or statute. The Board shall have sole
discretion to determine whether a Participant has ceased to provide services and
the effective date on which the Participant ceased to provide services (the
“Termination Date”).

      

      

      
        
          
          

        

        
          -13-

          
            

          

        

        
          
          

        

      

      

      EXERCISE
NOTICE

      

      SNAP
INTERACTIVE, INC.

      366 North
Broadway

      Suite
41042

      Jericho,
NY 11753

      

      Attention:
Stock Option Plan Administrator

      

      1.           Exercise of Option.
Effective as of today, ___________, ____, the undersigned ("Participant") hereby
elects to exercise Participant's option to purchase ________ shares of the
Common Stock (the "Shares") of Snap
Interactive, Inc. (the "Company") under and
pursuant to the Snap Interactive, Inc. Equity Incentive Plan (the "Plan") and the Stock
Option Agreement dated ______, 2008 (the "Option
Agreement").

      

      2.           Delivery of Payment.
Purchaser herewith delivers to the Company the full purchase price of the
Shares, as set forth in the Option Agreement.

      

      3.           Representations of
Participant. Participant acknowledges that Participant has received, read
and understood the Plan and the Option Agreement and agrees to abide by and be
bound by their terms and conditions.

      

      4.           Rights as
Shareholder. Until the issuance of the Shares (as evidenced by the
appropriate entry on the books of the Company or of a duly authorized transfer
agent of the Company), no right to vote or receive dividends or any other rights
as a shareholder shall exist with respect to the Optioned Stock, notwithstanding
the exercise of the Option. The Shares shall be issued to the Participant as
soon as practicable after the Option is exercised.

      

      5.           Tax Consultation.
Participant understands that Participant may suffer adverse tax consequences as
a result of Participant's purchase or disposition of the Shares. Participant
represents that Participant has consulted with any tax consultants Participant
deems advisable in connection with the purchase or disposition of the Shares and
that Participant is not relying on the Company for any tax advice.

      

      6.           Successors and
Assigns. The Company may assign any of its rights under this Exercise
Notice to single or multiple assignees, and this Exercise Notice shall inure to
the benefit of the successors and assigns of the Company. Subject to the
restrictions on transfer herein set forth, this Exercise Notice shall be binding
upon Participant and his or her heirs, executors, administrators, successors and
assigns.

      

       

      
        
          
          

        

        
          -14-

          
            

          

        

        
          
          

        

      

       

       

      7.           Withholding Taxes.
There may be a regular federal income tax liability upon the exercise of this
Option. Participant will be treated as having received compensation income
(taxable at ordinary income tax rates) equal to the excess, if any, of the Fair
Market Value of the Shares on the date of exercise over the Exercise Price. If
Participant is an employee, the Company will be required to withhold from
Participant’s compensation or collect from Participant and pay to the applicable
taxing authorities an amount equal to a percentage of this compensation income
at the time of exercise.

       

      8.           Governing Law. This
Exercise Notice is governed by the internal substantive laws of the state of New
York.

      

      9. Entire Agreement. The
Plan and Option Agreement are incorporated herein by reference. This Exercise
Notice, the Plan, the Option Agreement constitute the entire agreement of the
parties with respect to the subject matter hereof and supersede in their
entirety all prior undertakings and agreements of the Company and Participant
with respect to the subject matter hereof, and may not be modified adversely to
the Participant's interest except by means of a writing signed by the Company
and Participant.

      

      Submitted
by:                                                                              Accepted
by:

       

      

      PARTICIPANT                                                                           SNAP
INTERACTIVE, INC.

      

      ________________________________                            By:
________________________________

      Signature

      

      ________________________________                            Title:
_______________________________

      Print
Name

      

      

      -15-fs1ex10_das.htm

    
    

     

    Exhibit
10.1

     

    
      	
              KAG HOLDING CORP.

              E-mail: info@kagholding.com

              Main: 845-228-8977 

            	 	
              Corporate
      Office:

              1717 Route 6,

              Carmel NY 10512

            

    

     

    
      

      

    

    
      RENTAL/LEASE
AGREEMENT

    

     

     

    
      This
Rental Agreement and/or Lease shall evidence the complete terms and conditions
under which the parties whose signatures appear below have agreed.
Landlord/Lessor/Agent, KAG Holding Corp., shall be referred to as "OWNER" and
Tenant(s)/Lessee, DAS Inc., shall be referred to as "RENTER." As consideration
for this agreement, OWNER agrees to rent/lease to RENTER and RENTER agrees to
rent/lease from OWNER for use solely as a business residence, approximately 143
sqft premise located at 1717 Route 6, Suite 101, Carmel NY 10512.

       

      1. TERMS: RENTER agrees to pay in
advance $250.00 per month on the 1st day of each month. This agreement shall
commence on December 1st, 2008 and continue until December 30, 2009, as a
leasehold. Thereafter it shall become a month-to-month tenancy. If RENTER should
move from the premises prior to the expiration of this time period, he shall be
liable for all rent due until such time that the Residence is occupied by an
OWNER approved paying RENTER and/or expiration of said time period, whichever is
shorter.

       

      2. PAYMENTS: Rent and/or other
charges are to be paid at such place or method designated by the owner as
follows

      All
payments are to be made by electronic wire transfer and or bank checks shall be
acceptable. OWNER acknowledges receipt of the First Month's rent of $250.00, and
a Security Deposit of $250.00, for a total payment of $500.00. All payments are
to be made payable to KAG Holding Corp.

       

      3. SECURITY DEPOSITS: The total
of the above deposits shall secure compliance with the terms and conditions of
this agreement and shall be refunded to RENTER within 60 days after the premises
have been completely vacated less any amount necessary to pay OWNER; a) any
unpaid rent, b) cleaning costs, c) key replacement costs, d) cost for repair of
damages to premises and/or common areas above ordinary wear and tear, and e) any
other amount legally allowable under the terms of this agreement. A written
accounting of said charges shall be presented to RENTER within 60 days of
move-out. If deposits no not cover such costs and damages, the RENTER shall
immediately pay said additional costs for damages to OWNER.

       

      4. LATE CHARGE: A late fee of
$2.50, (not to exceed 1% of the monthly rent), shall be added and due for any
payment of rent made after the 15th of the month. Any dishonored check shall be
treated as unpaid rent, and subject to an additional fee of $25.

       

      5. UTILITIES: RENTER agrees to
pay all utilities and/or services based upon occupancy of the
premises

       

      6. LIQUID FILLED FURNISHINGS: No
liquid filled furniture, receptacle containing more than ten gallons of liquid
is permitted without prior written consent and meeting the requirements of the
OWNER. RENTER also agrees to carry insurance deemed appropriate by OWNER to
cover possible losses that may be caused by such items.

       

      7. PROJECTIONS: No awnings or
other projections are permitted without the prior written consent of the
LANDLORD. No curtains, blinds, shades, or screens, shall be attached to, or hung
in, or used in connection with any window or door of the demised premises,
without the prior written consent of the LANDLORD. Such awnings, projections,
curtains, blinds, shades, screens, or other fixtures must be of quality type,
design and color, and attached in the manner approved by the
LANDLORD.

       

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      
         

        
          	
                  KAG HOLDING CORP.

                  E-mail: info@kagholding.com

                  Main: 845-228-8977 

                	 	
                  Corporate
      Office:

                  1717 Route 6,

                  Carmel NY 10512

                

        

         

        
          

          

        

        
          RENTAL/LEASE
AGREEMENT

        

      

       

      8. PARKING: When and if RENTER is
assigned a parking area/space on OWNER'S property, the parking area/space shall
be used exclusively for parking of passenger automobiles and/or those approved
vehicles listed on RENTER'S Application attached hereto. RENTER is hereby
assigned or permitted to park only in the following area or space on street
adjacent to the RENTER’S entrance. The parking fee for this space (if applicable
is $0 monthly. Said space shall not be used for the washing, painting, or repair
of vehicles. No other parking space shall be used by RENTER or RENTER'S
guest(s). RENTER is responsible for oil leaks and other vehicle discharges for
which RENTER shall be charged for cleaning if deemed necessary by
OWNER.

       

      9. CARE OF PREMISES: The RENTER
shall take good care of the premises and shall, at the RENTERS own cost and
expense, make all repairs, and at the end, or other expiration of the term,
shall deliver up the demised premises in good condition or order. In the event
the RENTER fails to make such repairs, the LANDLORD may, at its option, repair,
at the expense of the RENTER, all damage or injury to the demised premises done
by the RENTER or his servants, employees, agents, visitors, or licensees, or
caused by moving property of the RENTER in and/or out of the said premises or
building, or by the installation or removal of furniture or property, or
resulting from fire, short circuits, the overflow or leakage of water, sewage,
or odors from any other cause, due to the carelessness, negligence or improper
conduct of the RENTER or his servants, employees, agents, visitors, or
licensees.

       

      10. NOISE: RENTER agrees not to
cause or allow any noise or activity on the premises which might disturb the
peace and quiet of another RENTER and/or neighbor. Said noise and/or activity
shall be a breach of this agreement.

       

      11. DESTRUCTION OF PREMISES: If
the premises become totally or partially destroyed during the term of this
Agreement so that RENTER'S use is seriously impaired, OWNER or RENTER may
terminate this Agreement immediately upon three day written notice to the
other.

       

      12. CONDITION OF PREMISES: RENTER
acknowledges that he has examined the premises and that said premises, all
furnishings, fixtures, furniture, plumbing, heating, electrical facilities, all
items listed on the attached property condition checklist, if any, and/or all
other items provided by OWNER are all clean, and in good satisfactory condition
except as may be indicated elsewhere in this Agreement. RENTER agrees to keep
the premises and all items in good order and good condition and to immediately
pay for costs to repair and/or replace any portion of the above damaged by
RENTER, his guests and/or invitees, except as provided by law. At the
termination of this Agreement, all of above items in this provision shall be
returned to OWNER in clean and good condition except for reasonable wear and
tear and the premises shall be free of all personal property and trash not
belonging to OWNER. It is agreed that all dirt, holes, tears, burns, and stains
of any size or amount in the carpets, drapes, walls, fixtures, and/or any other
part of the premises, do not constitute reasonable wear and tear.

       

      13. ALTERATIONS: RENTER shall not
paint, wallpaper, alter or redecorate, change or install locks, install antenna
or other equipment, screws, fastening devices, large nails, or adhesive
materials, place signs, displays, or other exhibits, on or in any portion of the
premises without the written consent of the OWNER except as may be provided by
law.

       

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      
         

        
          	
                  KAG HOLDING CORP.

                  E-mail: info@kagholding.com

                  Main: 845-228-8977 

                	 	
                  Corporate
      Office:

                  1717 Route 6,

                  Carmel NY 10512

                

        

         

        
          

          

        

        
          RENTAL/LEASE
AGREEMENT

        

      

       

       

      14: PROPERTY MAINTENANCE: RENTER
shall deposit all garbage and waste in a clean and sanitary manner into the
proper receptacles and shall cooperate in keeping the garbage area neat and
clean. RENTER shall be responsible for disposing of items of such size and
nature as are not normally acceptable by the garbage hauler. RENTER shall be
responsible for keeping the bathroom drains free of things that may tend to
cause clogging of the drains. RENTER shall pay for the cleaning out of any
plumbing fixture that may need to be cleared of stoppage and for the expense or
damage caused by stopping of waste pipes or overflow from wash basins, or
sinks.

       

      15. HOUSE RULES: RENTER shall
comply with all house rules as stated on separate addendum, but which are deemed
part of this rental agreement, and a violation of any of the house rules is
considered a breach of this agreement.

       

      16. CHANGE OF TERMS: The terms and
conditions of this agreement are subject to future change by OWNER after the
expiration of the agreed lease period upon 30-day written notice setting forth
such change and delivered to RENTER. Any changes are subject to laws in
existence at the time of the Notice of Change Of Terms.

       

      17. TERMINATION: After expiration
of the leasing period, this agreement is automatically renewed from month to
month, but may be terminated by either party giving to the other a 30-day
written notice of intention to terminate. Where laws require "just cause", such
just cause shall be so stated on said notice. The premises shall be considered
vacated only after all areas including storage areas are clear of all RENTER'S
belongings, and keys and other property furnished for RENTER'S use are returned
to OWNER. Should the RENTER hold over beyond the termination date or fail to
vacate all possessions on or before the termination date, RENTER shall be liable
for additional rent and damages which may include damages due to OWNER'S loss of
prospective new renters.

       

      18. POSSESSION: If OWNER is unable
to deliver possession of the residence to RENTERS on the agreed date, because of
the loss or destruction of the property or because of the failure of the prior
RENTER, to vacate or for any other reason, the RENTER and/or OWNER may
immediately cancel and terminate this agreement upon written notice to the other
party at their last known address, whereupon neither party shall have liability
to the other, and any sums paid under this Agreement shall be refunded in full.
If neither party cancels, this Agreement shall be prorated and begin on the date
of actual possession.

       

      19. INSURANCE: RENTER acknowledges
that OWNERS insurance does not cover personal property damage caused by fire,
theft, rain, war, acts of God, acts of others, and/or any other causes, nor
shall OWNER be held liable for such losses. RENTER is hereby advised to obtain
his own insurance policy to cover any personal losses.

       

      20. RIGHT OF ENTRY AND INSPECTION:
OWNER may enter, inspect, and/or repair the premises at any time in case of
emergency or suspected abandonment. OWNER shall give 24 hours advance notice and
may enter for the purpose of showing the premises during normal business hours
to prospective renters, buyers, lenders, for smoke alarm inspections, and/or for
normal inspections and repairs. OWNER is permitted to make all alterations,
repairs and maintenance that in OWNER'S judgment is necessary to
perform.

       

      21. ASSIGNMENT: RENTER agrees not
to transfer, assign or sublet the premises or any part thereof.

       

      22. PARTIAL INVALIDITY: Nothing
contained in this Agreement shall be construed as waiving any of the OWNER'S or
RENTER'S rights under the law. If any part of this Agreement shall be in
conflict with the law, that part shall be void to the extent that it is in
conflict, but shall not invalidate this Agreement nor shall it affect the
validity or enforceability of any other provision of this
Agreement.

       

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      
         

        
          	
                  KAG HOLDING CORP.

                  E-mail: info@kagholding.com

                  Main: 845-228-8977 

                	 	
                  Corporate
      Office:

                  1717 Route 6,

                  Carmel NY 10512

                

        

         

        
          

          

        

        
          RENTAL/LEASE
AGREEMENT

           

        

      

      
        22. NO WAIVER: OWNER'S acceptance
of rent with knowledge of any default by RENTER or waiver by OWNER of any breach
of any term of this Agreement shall not constitute a waiver of subsequent
breaches. Failure to require compliance or to exercise any right shall not be
constituted as a waiver by OWNER of said term, condition, and/or right, and
shall not affect the validity or enforceability of any provision of this
Agreement.

         

        23. ATTORNEY FEES: If any legal
action or proceedings be brought by either party of this Agreement, the
prevailing party shall be reimbursed for all reasonable attorney's fees and
costs in addition to other damages awarded.

         

        24. JOINTLY AND SEVERALLY: The
undersigned RENTERS are jointly and severally responsible and liable for all
obligations under this agreement.

         

        25. REPORT TO CREDIT/TENANT
AGENCIES: You are hereby notified that a nonpayment, late payment or
breach of any of the terms of this rental agreement may be submitted/reported to
a credit and/or tenant reporting agency, and may create a negative credit record
on your credit report.

         

        26. LEAD NOTIFICATION REQUIREMENT:
For rental dwellings built before 1978, RENTER acknowledges receipt of the
following: (Please check)

        ___ Lead
Based Paint Disclosure Form

        ___ EPA
Pamphlet

         

        27. ADDITIONS AND/OR EXCEPTIONS
_______________________________________________________________

        _______________________________________________________________.

         

        28. NOTICES: All notices to RENTER
shall be served at RENTER'S premises and all notices to OWNER shall be served at
_______________________________________________________________.

         

        29. INVENTORY: The premises
contains the following items, that the RENTER may use.
______________________________________________________________.

         

        30. KEYS AND ADDDENDUMS: RENTER
acknowledges receipt of the following which shall be deemed part of this
Agreement: (Please check)

        ___ Keys
#of keys and purposes ___________________________________________

        ___ House
Rules ___ Other ________________________________

         

        31. ENTIRE AGREEMENT: This
Agreement constitutes the entire Agreement between OWNER and RENTER. No oral
agreements have been entered into, and all modifications or notices shall be in
writing to be valid.

         

         

        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        

        
           

          
            	
                    KAG HOLDING CORP.

                    E-mail: info@kagholding.com

                    Main: 845-228-8977 

                  	 	
                    Corporate
      Office:

                    1717 Route 6,

                    Carmel NY 10512

                  

          

           

          
            

            

          

          
            RENTAL/LEASE
AGREEMENT

          

        

         

         

        32. RECEIPT OF AGREEMENT: The
undersigned RENTERS have read and understand this Agreement and hereby
acknowledge receipt of a copy of this Rental Agreement. This Commercial Lease
shall be interpreted according to the laws of the State of New
York.

         

        33. LITIGATION: In the event of
any dispute or litigation arising from any of the terms of this Commercial
Lease, the RENTER specifically waives the right to a jury trial.

         

        34. ENTIRE AGREEMENT: The
foregoing constitutes the entire agreement between the parties mentioned above,
and may be modified only in writing, to be signed and initialed by both
parties.

      

    

    
      

      
        	
                 

                 

                DAS,
      Inc.

                 

                RENTER'S Signature
      /s/
      Karen
      Gentile                                                                                        
      

                Date 11/29/08                        
      

                 

                Renter’s
      Witness Name: 

                Witness’ Signature
      /s/
      Daniel
      Bardelli                                                                                          
      

                Date 12/15/08                        
      

                 

                KAG
      Holding Corp.

                Mailing
      Address: 1717 Route 6, Carmel NY 10512

                OWNER'S or Agent's
      Signature /s/
      Karen
      Gentile                                                      
                    
      

                Date 11/29/08                          
      

                 

                Owner’s
      Witness Name:

                Witness’ Signature
      /s/ Dom
      Deduca                      
                                                                            

                Date 12/15/08                            

                 

              

      

      
 

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      
        Licensing
Agreement

         

        SOFTWARE
LICENSING AGREEMENT (the “Agreement”) dated November 27, 2007 between DAS, Inc a
Nevada Company, 502 East John Street, Carson City, State of Nevada 89706, USA
(hereinafter, individually or collectively referred to as “DAS”), and Stock USA
Investments, Inc. having its head office at 1717 Route 6, Carmel, NY 10512
(hereinafter referred to as “FIRM”), with a purpose of establishing a framework
for liaison between the parties mentioned thereof (“Parties”).

         

        RECITALS

         

        WHEREAS, FIRM is a registered
investment dealer and member of the FINRA, a respective self regulatory
organization;

         

        WHEREAS, DAS is the proprietor
of DAS direct access trading software (“Trading Software”) and the corresponding
user manual(s) and/or other user documentation, that provides, among other
applications: (1) electronic message functions in the form of order entry and
order routing; and (2) functions to receive, access and/or display market
information con sisting of securities, other information and other data that is
provided by certain stock exchanges, news and other information
sources;

         

        WHEREAS, FIRM desires to
obtain a license to use the DAS Trader trading platforms for FIRM and for its
clients (“Clients”) in connection with FIRM’s and Clients’ transactions in
securities that may be purchased or sold by or through FIRM and DAS desires to
grant such license to FIRM and Clients on the terms and conditions set forth
herein;

         

        NOW, THEREFORE, in
consideration of the provisions and mutual undertakings set forth herein, the
parties hereto agree as follows:

         

        1.       Appointment

         

        For the
Term (as defined below) of this Agreement and/or agreement arising of this
Agreement, DAS grants to FIRM and Clients on a non -exclusive basis (as defined
below) the use of DAS Trader’ Trading software platform to effectuate
transactions in securities that may be purchased or sold by or through FIRM in
its broker/dealer capacity.

         

        2.       Services Provided by
DAS

         

        
          	
                  a.  

                	
                  Back
      Office Suite and Risk System

                

        

         

        
          	
                  b.  

                	
                  DAS
      is to provide FIRM with DAS Back Office Suite and, subject to reasonable
      availability, DAS will provide an ongoing technical support and initial
      training services for FIRM staff for the
Suite.

                

        

         

        
          	
                  c.  

                	
                  Simulated
      Trading Platforms

                

        

         

        
          	
                   
      

                	
                  i.
      DAS to provide FIRM prospects access to simulated paper-trading versions
      of DAS trading platforms as an introduction to the FIRM service, including
      associated User names and
Passwords.

                

        

         

         

        
          
            Licensing
Agreement

            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          	
                  d.  

                	
                  Support
      of Service

                

        

         

        
          	
                  i.  

                	
                  Subject
      to reasonable availability, DAS will provide an ongoing techn ical support
      and initial training services for FIRM for the DAS Trader trading
      platforms.

                

        

         

        
          	
                  ii.  

                	
                  DAS
      to provide FIRM with access to any available material, including manuals
      and support for DAS trading
platforms.

                

        

         

        
          	
                  iii.  

                	
                  DAS
      to provide FIRM, on a timely basis, any modi fications to software, and
      available materials, including manuals and support of DAS Trader trading
      platforms.

                

        

         

        
          	
                  iv.  

                	
                  DAS
      to provide FIRM with appropriate Exchange User Agreement forms and FIRM
      will be responsible for administration of Exchange Quote Feed agreements
      and sending to DAS on timely basis.

                
	 	 
	v.
       	DAS
      will provide FIRM with access to from 7:00 AM – 8:00 PM Eastern
      Time.

        

         

               

                 
3.        Compensation
and Deposit

         

        
          	
                  a.  

                	
                  For
      the brokerage services provided in connection with transactions in
      securities effectuated via the DAS trading platforms FIRM will pay a per
      user fee to DAS pursuant to the following
terms:

                

        

         

        $10,000
monthly on the 1st day of
the month via check and electronic transfer for up to 1000 users afterward
subject to Schedule A.

         

        
          	
                  b.  

                	
                  FIRM
      shall pay rate based on calendar month for each logon that is “Open”
      status at any time during the billing
month

                

        

         

        
          	
                  c.  

                	
                  All
      software per user fees will be due on the 10th business day of every month
      for the previous month.

                

        

         

        
          	
                  d.  

                	
                  Fees
      shall be invoiced monthly, in arrears. DAS reserves the right to charge
      interest at a rate equal to the lesser of 1% per month or maximum allowed
      by law, on outstanding amounts not paid after ten days of receipt of DAS
      invoice. FIRM shall pay DAS reasonable attorneys’ fees and costs incurred
      in collection.

                

        

         

        
          	
                   
      

                	
                  e.
      All payments due to either party shall be via wire transfer to such
      account as shall be designated by the
payee.

                

        

         

                
4.          Limitation
of Liability and Exclusions of Damages

         

        In no
event shall either party or its affiliates, employees, representatives or
subcontractors be liable to the other party for damages of any kind whatsoever
including without limitation, direct loss of profits, indirect, incidental,
consequential, punitive or special damages (even if advised of the possibility
of such damages) arising from the breach of any provision of this Agreement,
provided however, that the foregoing limitations shall not apply to direct
damages resulting from intentional or willful breach of this
Agreement.

         

                
5.          Term and
Termination

         

        5.1 This
Agreement shall be effective as of the date of execution by both parties (“the
Effective Date”), and shall extend for the initial trial period o f three (3)
calendar months from the date of executing the first live trade (the “Initial
Period”).

         

        5.2 
This Agreement shall continue until the earliest to occur of the following
events:

         

         

        
          
            Licensing
Agreement

            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        
          	
                  a.  

                	
                  Either
      party is dissolved, wound up, terminated or otherwise
      liquidated;

                

        

         

        
          	
                  b.  

                	
                  After
      the Initial Period, if either party provides the other party with (30)
      days written notice before the anniversary date of the Effective
      Date;

                
	 	 
	c.  	Mutual
      consent of the Parties.

        

         

         
5.3   Absent the occurrence of the events listed in section 5.2
above, the term of this

         

         
Agreement shall be one calendar year from the Effective Date.

         

                 
6.           Confidentiality

         

        
          	
                  a.  

                	
                  Each
      party shall keep confidential and shall not disclose or make available to
      any other person or entity any information (“Confidential Information”)
      provided or made availab le to any other party either orally or other
      media and whether or not such information is expressly stated to be
      confidential; and

                

        

         

        
          	
                  b.  

                	
                  Notwithstanding
      the foregoing, information that (a) was lawfully in party’s possession
      prior to the date of this Agreement; (b) is already public knowledge or
      becomes so at a date prior to the date of disclosure; or (c) comes into
      its knowledge from a third party who lawfully possesses such information
      and such disclosure; will not constitute Confidential Information for
      purposes of this Agreement; and

                

        

         

        
          	
                  d.  

                	
                  Neither
      party shall disclose any of the Confidential Information to any person or
      entity except to (a) such of its employees, consultants, agents or
      representatives as ‘need to know’ basis; or (b) its auditors, financial or
      legal advisors, government agencies or any other person or body having the
      right, duty or obligations to know its business and then only in pursuance
      of such right, duty or obligation;
and

                

        

         

        
          	
                  e.  

                	
                  The
      obligations with respect to the Confidential Information shall surv ive
      Termination of this Agreement.

                

        

         

                 
7.           Miscellaneous

         

        a. Assignment

         

        The
parties covenant and agree that neither party shall, without the prior written
consent of the other, transfer the whole or any part of this Agreement or any of
its interest, rights or ob ligations hereunder.

         

        b. Notices

         

        All
notices, demands or communications made pursuant to the terms hereof or required
or permitted to be given by one party to another shall be given electronically.
In addition to electronic notice, the parties may also give notice in writing by
personal delivery or by registered mail, postage prepaid, addressed to such
other party or delivered to such other party at its head office or at such other
address as may be given by any of them to the other from time to time and such
notices, demands or other communications shall be deemed to have been received
when delivered if sent via electronic transmission, or, if mailed, seven (7)
business days following the date of mailing thereof, provided that if any such
notice, demand or o ther communication shall have been mailed and regular mail
service shall be interrupted by strikes or other irregularities, such notice,
demand or other communications shall be deemed to have received seven (7)
business days after the day following the resumption of normal mail
service.

         

         

        
          
            Licensing
Agreement

            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

         

        c.Independent
Contractor

         

        FIRM and
DAS, in performance of their obligations hereunder, shall act at all times as
independent contractors, and neither party shall have or exercise control over
the other party, its agents, servants or employees in the performance of such
other party’s obligations under this Agreement. This Agreement is entered into
solely between the parties hereto and is not intended by the parties to confer
upon any other person or entity any right or clai m by reason of this Agreement
nor does either party have the ability, right or authority to assume or create,
in writing or otherwise, any obligation of any kind, express or implied, in the
name of or on behalf of the other.

         

        d. Entire
Agreement

         

        This
agreement constitutes the entire agreement between the parties with respect to
the subject matter hereof, and supersedes any and all prior agreements or
understanding among the parties with respect to the subject matter
hereof.

         

        e. Non
compete clause

         

        Any and
all clients brought by the FIRM to use the DAS system shall remain customer of
the FIRM. In no case will DAS or the DAS staff contact directly or indirectly,
at any time, and that during and for a period of 24 months after the termination
of this cont ract, any of the said clients here above. Any attempt by the
clients to contact directly DAS or the DAS Staff shall be promptly reported to
the FIRM. Contacts made with clients by DAS for the purposes of servicing the
software will require written notice.

         

        f. Severability

         

        Should
any part of this agreement be declared or held to be invalid or unenforceable
for any reason, such invalidity or unenforceability shall not affect the
validity or enforceability of the remainder of this agreement which shall
continue in full force and effect and be construed as if this agreement had been
executed without any invalid or unenforceable portion and it is hereby declared
the intention of the parties hereto that this agreement would have been executed
without reference to any portion which may, for any reason, be hereafter
declared or held invalid or unenforceable.

         

        g. Applicable
Law

         

        This
Agreement shall be governed by laws of the State of Nevada.

         

        h. Counterparts

         

        This
agreement may be executed in any number of counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same
document.

         

        i. Successors
and Assigns

         

        This
Agreement shall ensure to the benefit of and be binding upon the parties hereto
and their respective successors and assigns.

         

        j.Intellectual
Property

         

        DAS
represents and warrants that it has the right and power to grant the licenses
granted herein and that there are no other agreements with other parties to
conflict with such grant. DAS further represents and warrants that it has no
actual knowledge that the DAS trading platform infringes any valid rights of any
third party

         

         

        
          
            Licensing
Agreement

            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        k. Protection
of Proprietary Rights

         

        “Proprietary
Information” means; DAS software and shall include all software, progra ms,
process, inventions, patents, copyrights, trademarks, and other intangible
rights, trade secrets and all other discoveries, developments, designs,
improvements, inventions, formulas, software programs, processes, techniques,
know-how, negative know-how, data, research, technical data, customer and
supplier lists, and any modifications or enhancements of any of the forgoing,
and all program, marketing, sales, or other financial or business information
disclosed to FIRM by DAS, either directly or indirectly, in writing or orally or
by drawings or observation, which has actual or potential economic value to DAS.
At all times, FIRM shall keep in strictest confidence and trust all Proprietary
Information; shall not disclose, use induce or assist in the use or disclosure
of any Proprietary Information or Rights or anything related to any Proprietary
Information or Rights, without DAS prior express written consent, except as may
be necessary in the ordinary course of performance of this Software Licensing
Agreement; and shall promptly advise DAS of any knowledge that FIRM may have of
any unauthorized release or use of DAS Proprietary Information, and shall take
reasonable measures to prevent unauthorized persons or entities from having
access to obtaining, or being furnished with any Proprietary
Information.

         

        l. Limitations
on Liability

         

         

        DAS shall
have no liability to FIRM or it’s users for any failure of the software. FIRM
agrees to defend, indemnify, and hold DAS harmless from any claims by
FIRM.

        
        

         

        
          	  DAS	  FIRM

        

                                

        
          	
                  DAS,
      Inc.

                	
                  Stock
      USA Investments, Inc.

                
	
                  1717
      Route 6

                	
                  1717
      Route 6, Suite 102

                
	
                  Carmel,
      New York 10512 USA

                	
                  Carmel
      NY 10512

                
	
                  Fax:
      845-228-8077

                	
                  Fax:
      845-622-4878

                
	   Email:
      karen@directaccesssoftware.com	   Email:
      info@stockusa.com

        

        

         

        Either
party may change such address from time to time by providing written not ice to
the other in the manner set forth above.

         

        IN WITNESS OF WHEREOF, the
Parties hereto have executed this Licensing Agreement as of the date first set
forth above.

         

         

        
          
            	 	 	 	 	 
	
                    /s/
      Karen Gentile

                  	 	 	
                    /s/ Timothy
      Looney

                  	 
	 	 	 	 	 
	
                    Name:
      Karen Gentile

                  	 	 	
                    Name: Timothy
      Looney

                  	 
	 	 	 	 	 
	
                    Title:
      President

                  	 	 	
                    Title:
      President

                  	 
	I
      have authority to bind the Corporation	 	 	I
      have authority to bind the Corporation	 

          

        

         

         

        
          Licensing
Agreement

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