Document:

Exhibit
10.4

 

AGREEMENT

 

This agreement (“Agreement”) is entered into this 19 day of August,
2004, by and between Premier Entertainment Biloxi LLC, a Delaware Limited
Liability Company (“Premier”), and Kojis & Sons Signs, Inc. (“Kojis”).
Hereinafter Premier and Kojis may be referred to collectively as “Parties.”

 

WHEREAS, Premier is developing the Hard Rock Hotel & Casino in
Biloxi, Mississippi (“Hard Rock”); and

 

WHEREAS, Kojis is in the business of manufacturing, installing, and
maintaining outdoor signs; and

 

WHEREAS, Premier desires to hire Kojis to manufacture, install, and
maintain the one hundred twenty foot (120') high marquee guitar sign (“Guitar”)
for the Hard Rock; and

 

WHEREAS, Kojis desires to manufacture, install, and maintain the Guitar
for Premier,

 

NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are expressly acknowledge by Premier and Kojis, the
Parties agree as follows:

 

1.                                       The above recitals are true and accurate and
hereby incorporated as if fully set forth.

 

2.                                       The Guitar shall be manufactured according to
the specifications and drawings attached as Exhibit A, which is hereby
incorporated as if fully set forth.

 

3.                                       It is expressly understood and agreed that
flat materials can be used on the Guitar so long as there are no sharp edges
and so long as all corner beads are radiuses and so long as the compound curve
to the Guitar is achieved through paint shading.

 

4.                                       Premier agrees to pay Kojis the total sum of
Five Hundred Forty Thousand Dollars ($540,000) plus applicable sales or use
taxes, if any, to manufacture, install, and maintain the Guitar. This fee
covers any direct or indirect cost or expense incurred by Kojis in the
manufacturing and installation of the Guitar and also includes all costs and expenses
for material and labor for Kojis to maintain the Guitar for one (1) year
following its installation at Hard Rock. Payment of the above stated sum shall
be as follows:

 

 

•                  40% within 10 days of this Agreement being
fully executed

 

•                  40% when the Guitar is delivered to Hard Rock

 

•                  20% upon the Guitar functioning error free
for 60 days following timely installation.

 

5.                                       Kojis agrees to complete construction of the
Guitar by not later than May 1, 2005, and Kojis agrees to install the Guitar at
Hard Rock and have the Guitar be fully operational upon connection of power by
others by not later than June 15, 2005.

 

6.                                       Kojis expressly acknowledges that the timely
installation and operation of the Guitar is vital to the business of the Hard
Rock and that damages to Hard Rock for the untimely installation or operation
of the Guitar would be impossible to calculate. Therefore, Kojis agrees that,
in addition to any other remedies or rights Premier may have, for each day
beyond June 15, 2005 that the Guitar is not installed and operational at
Hard Rock, Kojis shall pay Premier the sum of Three Thousand Dollars
($3,000.00) unless such a delay in the installation or operation of the Guitar
is caused by the act or omission of a person or event beyond the control of
Kojis.

 

7.                                       Kojis agrees to provide Premier with a
payment and performance bond, in the sum of Two Hundred Fifty Thousand Dollars
($250,000.00), in a form reasonably acceptable to Premier and naming Premier as
obligee.

 

8.                                       Kojis agrees to indemnify, defend, save, and
hold Premier harmless from and against any and all liability, loss, damages,
costs, and expenses including attorneys’ fees, judgments, claims, liens, and
demands of any kind whatsoever, arising out of or directly or indirectly
connected with the performance of Kojis under this Agreement or arising out of
or directly or indirectly connected with any act, omission, or negligence of
Kojis, its agents, employees, and contractors while in, upon, about, or in any
way connected with the Hard Rock premises.

 

9.                                       The Parties agree and acknowledge that Kojis
is an independent contractor and not an employee of Premier and that no term or
provision of this Agreement shall be interpreted or construed in any manner
whatsoever to create a partnership, joint venture, principal-agent,
employer-employee, or other business entity or relationship between Premier and
Kojis. Further, Kojis agrees and acknowledges that they shall not have the
power, directly or indirectly, to bind or otherwise obligate Premier to any undertaking
whatsoever.

 

10.                                 This Agreement constitutes the full and
complete understanding and agreement of the Parties with respect to the Guitar
and supersedes any prior

 

2

 

understanding
or agreement between the Parties relating thereto. No amendment, waiver or
modification of any provision of this Agreement shall be binding unless made in
writing and signed by the Parties.

 

11.                                 Kojis shall not assign any of its obligations
under this Agreement nor any interest in this Agreement without the prior
written consent of Premier, which consent may be withheld for any reason or no
reason, and any such assignment without the express written consent of Premier
shall be void, and at Premier’s election shall constitute a default of this
Agreement.

 

12.                                 The person(s) executing this Agreement on
Kojis’s behalf represent(s) and warrant(s) that they have all necessary power
and authority to execute this Agreement on behalf of Kojis.

 

13.                                 The effectiveness of this Agreement is
subject to approval by Hard Rock Hotel Licensing, Inc.

 

14.                                 The laws of the State of Mississippi shall
govern the validity, construction, performance, and effect of this Agreement,
and Kojis agrees and consents that the venue for any judicial proceeding
involving or pertaining to this Agreement shall be Harrison County,
Mississippi.

 

	
   

  	
  PREMIER
  ENTERTAINMENT BILOXI, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Joe Billhimer

  	
   

  
	
   

  	
  Joe
  Billhimer

  
	
   

  	
  President
  and Chief Operating Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  KOJIS
  & SONS SIGNS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ [ILLEGIBLE]

  	
   

  
					

 

3

 

Exhibit A

Specifications and Drawings

 

i

 

 

 

HARD ROCK CAFÉ / HOTEL

GUITAR SIGN SPECIFICATIONS

 

This performance specification is
intended for the Owner’s use. It provides minimum technical, material and
aesthetic requirements and provides for a variety of options for design
characteristics.

 

Sign contractor shall provide all
materials, equipment, engineering, labor and permits to fabricate and install a
custom guitar sign. The sign shall be a replica of a [ILLEGIBLE] guitar and
shall be as accurate a replica of the actual guitar as materials and structural
limitations and requirements will allow. The Owner will provide photos and/or
printed materials of the guitar for reference. The Owner ý will
provide / o will not provide a guitar to be used
as a model. The following specifications shall apply.

 

•                  Sign
shall be 120' feet in length.

•                  Sign
shall be o single faced (with back of sign
duplicating back of actual guitar) / ý
double faced (both faces are replicas of the front/top of the actual guitar).

•                  Sign o shall
/ ý shall not rotate. Rotator device must
be of heavy commercial / industrial quality.

•                  Sign
shall be fabricated and installed to meet all applicable codes and must be UL
listed.

•                  Fabrication
shall meet or exceed Hard Rock Café Standard Sign Specifications for materials
and methods.

•                  No
exposed fasteners are to be used.

•                  Body,
neck and headstock of the sign shall be contoured to match the actual guitar
including curved, beveled, raised and rounded surfaces and edges.

•                  Sign
shall include realistic replicas of all features including, but not limited to,
markings, bindings, frets, pickups, control knobs and switches, hardware, pick
guards and cover plates. All features except markings and bindings shall be
fabricated to be three dimensional, not applied graphics. Features should be
metal whenever practical.

•                  Finishes
shall match the actual guitar as accurately as possible including metallic
finishes. The body, neck and headstock are to include multi-tone paint with
fading (gradient colors), sunburst effects and simulated wood grain as
applicable. All finishes shall be clear coated. Colors shall match the actual
guitar unless otherwise specified by Owner.

•                  Strings
shall be 15 mm gold neon, shall wrap around the tuning pegs and tie into the
bridge (if applicable) in as realistic manner as possible. All terminations
shall be made in such a way as to be as inconspicuous as possible.

•                  Then
entire sign - body, neck and headstock - shall be bordered/outlined by ý one
strand / o two strands of 15mm neon. Color TBD by
Owner.

•                  Neon ý shall
be / o shall not be animated. Desired
animation effect: strings playing / Edge west chasing.

•                  Sign
must be grounded for lighting protection.

•                  Access
panels shall be kept to a minimum and located as inconspicuously as possible.
Panels must fit flush in surrounding surfaces. Guitar features such as cover
plates may also be used for access.

•                  Sign
shall include mounting and attachment structures and hardware for attachment to
a base, pedestal or structural attachment points. All visible attachments and
hardware o shall be painted / o shall
be fully enclosed with a (o
aluminum / o fiberglass / o
other) shroud (design provided by Owner). Color TBD by Owner. Base / pedestal /
attachment points shall be provided by others.

•                  Installation
shall include final cleaning and any touch up required for like new appearance.

 

 

LOGO

•                  Sign ý  shall include / o shall
not include a logo on the face(s) of the guitar.

•                  Logo
brand:

o Hard Rock Café

ý Hard Rock Hotel Casino

o Hard Rock Live

•                  Logo sign type:

ý Channel neon sign face (without
cabinet) as  per Hard Rock Café Standard Sign Specifications, D
series sign.

o Internally illuminated with Lexan or
similar face with a raised face and aluminum side returns.

•                  Logo
colors shall be per Hard Rock Café Standard Sign Specifications.
Owner will supply logo artwork for reproduction.

•                  Logo
shall be positioned so that the copy is parallel to the ground.

 

SUBMITTALS

•                  Bids must include the following:

Detailed means and methods statement for fabrication
including material and finish specifications.

Conceptual design drawing or rendering.

Manufacturer’s cut sheets and specifications for rotator
device (if applicable).

 

•                  Prior to start of fabrication
four (4) sets of detailed shop drawings must be submitted to Owner for
approval. Drawings must include front, side and back elevations, sections,
details of individual features and engineered structural and electrical
drawings. Must include all dimensions and a complete listing of materials,
finishes and colors.

 

•                  Prior to application of
finishes, samples of all finishes must be submitted to Owner for approval. This
must include paint samples of all colors including gradients, sunbursts and
simulated wood grains. Paint samples must be applied to materials to be used on
the sign. Samples must also be supplied for any colored materials to be used –
vinyl, Lexan, metal laminates, colored metals etc.

 

2Prepared and filed by St Ives Burrups

 

Exhibit 4.1

 

FindWhat.com,  Inc.
  (f/k/a/ BeFirst.com)

 

1999  Stock Incentive Plan
  (as amended on December 15, 2003)

 

Section  1.  Purposes; Definitions.

 

The purpose of this Plan is to enable the Company to  offer to its key employees and to key employees of its Subsidiaries and other  persons who are expected to contribute to the success of the Company, long term  performance-based stock and/or other equity interests in the Company, thereby  enhancing their ability to attract, retain and reward such key employees or  other persons, and to increase the mutuality of interest between those  employees or other persons and the stockholders of the Company.

For purposes of this Plan, the following terms shall be defined as set forth  below:

 

	
   

  	
  (a)

  	
  “Board” means the Board of Directors of BeFirst.com.

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  “Cause” shall have the meaning ascribed thereto in    Section 5(b)(ix) below.

  
	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  “Change of Control” shall have the meaning ascribed    thereto in Section 9 below.

  
	
   

  	
   

  	
   

  
	
   

  	
  (d)

  	
  “Code” means the Internal Revenue Code of 1986, as    amended from time to time, and any successor thereto.

  
	
   

  	
   

  	
   

  
	
   

  	
  (e)

  	
  “Committee” means the Stock Incentive Committee of    the Board or any other committee of the Board which the Board may designate.

  
	
   

  	
   

  	
   

  
	
   

  	
  (f)

  	
  “Company” means BeFirst.com, a corporation organized    under the laws of the State of Nevada.

  
	
   

  	
   

  	
   

  
	
   

  	
  (g)

  	
  “Deferred Stock” means Stock to be received, under    an award made pursuant to Section 7 below, at the end of a specified deferral    period.

  
	
   

  	
   

  	
   

  
	
   

  	
  (h)

  	
  “Disability” means disability as determined under    procedures established by the Committee for purposes of this Plan.

  
	
   

  	
   

  	
   

  
	
   

  	
  (i)

  	
  “Early Retirement” means retirement from active    employment with the Company or any Parent or Subsidiary prior to age 65, with    the approval of the Board or the Committee, for purposes of one or more    award(s) under this Plan.

  
	
   

  	
   

  	
   

  
	
   

  	
  (j)

  	
  “Exchange Act” means the Securities Exchange Act of    1934, as amended, as in effect from time to time.

  
	
   

  	
   

  	
   

  
	
   

  	
  (k)

  	
  “Fair Market Value” of a share of Stock means, as of    any given date: (i) if the Stock is listed on a national securities exchange    or quoted on the National Association of Securities Dealers, Inc. Automated    Quotation System (“NASDAQ”), the last sale price of a share of Stock on the    last preceding day on which the Common Stock was traded, as reported by such    exchange or NASDAQ, or on a composite tape reflecting transactions on such    exchange or by NASDAQ, as the case may be; (ii) if the Stock is not listed on    a national securities exchange or quoted on the NASDAQ, but is traded in the    over-the-counter market, the average of the high bid and asked prices for a    share of Stock on the last preceding day for which such quotations are    reported by the National Quotation Bureau, Inc.; and (iii) if the fair market    value of a share of Stock cannot be determined pursuant to clause (i) or (ii)    above, such price as
the Board of Directors or the Committee, as the case may    be, shall determine, which determination shall be conclusive as to the Fair    Market Value of the Stock.

  
	
   

  	
   

  	
   

  
	
   

  	
  (1)

  	
  “Incentive Stock Option” means any Stock Option    which is intended to be and is designated as an “incentive stock option”    within the meaning of Section 422 of the Code.

  

 

 

	
   

  	
  (m)

  	
  “Non-Qualified Stock Option” means any Stock Option    that is not an Incentive Stock Option.

  
	
   

  	
   

  	
   

  
	
   

  	
  (n)

  	
  “Normal Retirement” means retirement from active    employment with the Company or any Subsidiary on or after age 65.

  
	
   

  	
   

  	
   

  
	
   

  	
  (o)

  	
  “Other Stock-Based Award” means an award under    Section 8 below that is valued in whole or in part by reference to, or is    otherwise based upon Stock.

  
	
   

  	
  (p)

  	
  “Parent” means any present or future parent of the    Company, as such term is defined in Section 424(e) of the Code, or any    successor thereto.

  
	
   

  	
  (q)

  	
  “Performance Objectives” means performance    objectives adopted by the Committee pursuant to the Plan for key employees    who have received awards under the Plan. With respect to any award to a key    employee who is, or is determined by the Committee to be likely to become a    “covered employee” within the meaning of Section 162(m) of the Code, the    Performance Objectives shall be limited to specified levels of growth in or    peer company comparisons based upon (i) appreciation in the price of Stock    plus reinvested dividends over a specified period of time, (ii) return on    assets or (iii) book value per share, as the Committee may determine, and the    attainment of such Performance Objectives shall not be deemed to have    occurred until certified by the Committee. Except in the case of a covered    employee, if the Committee determines that a change in business, operations,    corporate structure or capital structure of the
Company, or the manner in    which it conducts it business, or other events or circumstances under the    Performance Objectives to be unsuitable, the Committee may modify such    Performance Objectives or the related minimum acceptable level of    achievement, in whole or in part, as the Committee deems appropriate.

  
	
   

  	
   

  	
   

  
	
   

  	
  (r)

  	
  “Plan” means this BeFirst.com 1999 Stock Incentive    Plan, as hereinafter amended from time to time.

  
	
   

  	
   

  	
   

  
	
   

  	
  (s)

  	
  Restricted Stock’ means Stock, received under an    award made pursuant to Section 6 below, that is subject to restrictions    imposed pursuant to said Section 6.

  
	
   

  	
   

  	
   

  
	
   

  	
  (t)

  	
  “Retirement” means Normal Retirement or Early    Retirement.

  
	
   

  	
   

  	
   

  
	
   

  	
  (u)

  	
  “Rule 16b-3” means Rule 16b-3 of the General Rules    and Regulations under the Exchange Act, as in effect from time to time, and    any successor thereto.

  
	
   

  	
   

  	
   

  
	
   

  	
  (v)

  	
  “Section 162(m)” means Section 162(m) of the Code,    as in effect from time to time, and any successor thereto.

  
	
   

  	
   

  	
   

  
	
   

  	
  (w)

  	
  “Securities Act” means the Securities Act of 1933,    as amended, as in effect from time to time.

  
	
   

  	
   

  	
   

  
	
   

  	
  (x)

  	
  “Stock” means the Common Stock of the Company, par    value $.001 per share.

  
	
   

  	
   

  	
   

  
	
   

  	
  (y)

  	
  “Stock Option” or “Option” means any option to    purchase shares of Stock which is granted pursuant to the Plan.

  
	
   

  	
   

  	
   

  
	
   

  	
  (z)

  	
  “Subsidiary” means any present or future (A)    subsidiary corporation of the Company, as such term is defined in Section    424(f) of the Code, or (B) unincorporated business entity in which the Company    owns, directly or indirectly, 50% or more of the voting rights, capital or    profits.

  

 

Section  2.  Administration.

 

The Plan shall be administered by the Board, or at its  discretion, the Committee, the membership of which shall consist solely of two  more members of the Board, each of whom shall serve at the pleasure of the  Board and shall be a “Non-Employee Director,” as defined in Rule l6b-3, and an  “outside director,” as defined in Section 162(m) of the Code, and shall be at  all times constituted so as not to adversely affect the compliance of the Plan  with the requirements of Rule 16b-3 or with the requirements of any other  applicable law, rule or regulation.

 

2

 

The Board or the Committee, as the case may be, shall  have the authority to grant, pursuant to the terms of the Plan, to officers and  other key employees or other persons eligible under Section 4 below: (i) Stock  Options, (ii) Restricted Stock, (iii) Deferred Stock and/or (iv) Other  Stock-Based Awards.

 

For purposes of illustration and not of limitation,  the Board or the Committee, as the case may be, shall have the authority  (subject to the express provisions of this Plan):

 

	
   

  	
  (i)

  	
  to select the officers and other key employees of    the Company or any Parent or Subsidiary and other persons to whom Stock    Options, Restricted Stock, Deferred Stock and/or Other Stock-Based Awards may    be from time to time granted hereunder;

  
	
   

  	
   

  	
   

  
	
   

  	
  (ii)

  	
  to determine the Incentive Stock Options,    Non-Qualified Stock Options, Restricted Stock, Deferred Stock and/or Other Stock-Based    Awards, or any combination thereof, if any, to be granted hereunder to one or    more eligible persons;

  
	
   

  	
   

  	
   

  
	
   

  	
  (iii)

  	
  to determine the number of shares of Stock to be    covered by each award granted hereunder;

  
	
   

  	
   

  	
   

  
	
   

  	
  (iv)

  	
  to determine the terms and conditions, not    inconsistent with the terms of the Plan, of any award granted hereunder    (including, but not limited to, share price, any restrictions or limitations,    and any vesting acceleration, exercisability and/or forfeiture provisions);

  
	
   

  	
   

  	
   

  
	
   

  	
  (v)

  	
  to determine the terms and conditions under which    awards granted hereunder are to operate on a tandem basis and/or in    conjunction with or apart from other awards made by the Company or any Parent    or Subsidiary outside of this Plan;

  
	
   

  	
   

  	
   

  
	
   

  	
  (vi)

  	
  to determine the extent and circumstances under    which Stock and other amounts payable with respect to an award hereunder    shall be deferred; and

  
	
   

  	
   

  	
   

  
	
   

  	
  (vii)

  	
  to substitute (A) new Stock Options for previously    granted Stock Options, including previously granted Stock Options which have    higher option exercise prices and/or containing other less favorable terms,    and (B) new awards of any other type for previously granted awards of the    same type, including previously granted awards which contain less favorable    terms.

  

 

Subject to Section 10 hereof, The Board or the  Committee, as the case may be, shall have the authority to (i) adopt, alter and  repeal such administrative rules, guidelines and practices governing this Plan  as it shall, from time to time, deem advisable, (ii) interpret the terms and  provisions of this Plan and any award issued under this Plan (and to determine  the form and substance of all agreements relating thereto), and (iii) to  otherwise supervise the administration of the Plan.

 

Subject to the express provisions of the Plan, all  decisions made by the Board or the Committee, as the case may be, pursuant to  the provisions of the Plan shall be made in the Board or the Committee’s sole  and absolute discretion and shall be final and binding upon all persons,  including the Company, its Parent and Subsidiaries and the Plan participants.

 

Section  3.  Stock Subject to Plan.

 

The total number of shares of Stock reserved and  available for distribution under this Plan shall be 6,200,000 shares.  Such shares may consist, in whole or in  part, of authorized and unissued shares or treasury shares.

 

If any shares of Stock that have been optioned cease  to be subject to a Stock Option for any reason, or if any shares of Stock that  are subject to any Restricted Stock award, Deferred Stock award or Other  Stock-Based Award are forfeited or any such award otherwise terminates without  the issuance of such shares, such shares shall again be available for  distribution under the Plan.

 

In the event of any merger, reorganization,  consolidation, recapitalization, stock dividend, stock split, extraordinary  distribution with respect to the Stock or other change in corporate structure  affecting the Stock, such substitutions or

 

3

 

adjustments shall be made in the (A) aggregate number and kind of shares  reserved for issuance under this Plan, (B) number, kind and exercise price of  shares of Stock subject to outstanding Options granted under this Plan, and (C)  number, kind, purchase price and/or appreciation base of shares of Stock  subject to other outstanding awards granted under this Plan, as may be  determined to be appropriate by the Board or the Committee, as the case may be,  in its sole discretion, in order to prevent dilution or enlargement of rights; provided,  however, that the number of shares subject to any award shall always be  a whole number. Such adjusted exercise price shall also be used to determine  the amount which is payable to the optionee upon the exercise by the Board or  the Committee, as the case may be, of the alternative settlement right which is  set forth in Section 5(b)(xi) below.

 

Subject to the provisions of the immediately preceding  paragraph, the maximum numbers of shares subject to Options Restricted Stock  awards, Deferred Stock other Stock-Based awards to any employee who is employed  by the Company or any Parent or Subsidiary on the last day of any taxable year  of the Company, shall be 1,000,000 shares during the term of the Plan.

 

Section  4.  Eligibility.

 

Officers and other key employees of the Company or any  Parent or Subsidiary (but excluding any person whose eligibility would  adversely affect the compliance of the Plan with the requirements of Rule  16b-3) who are at the time of the grant of an award under this Plan employed by  the Company or any Parent or Subsidiary and who are responsible for or  contribute to the management, growth and/or profitability of the business of  the Company or any Parent or Subsidiary, are eligible to be granted Options and  awards under this Plan.  In addition,  Non-Qualified Stock Options may be granted under the Plan to any person,  including, but not limited to, independent agents, consultants and attorneys  who the Board or the Committee, as the case may be, believes has contributed or  will contribute to the success of the Company.   Eligibility under the Plan shall be determined by the Board or the  Committee, as the case may
be.

 

The grants of Restricted Stock, Deferred Stock and  Other Stock-Based Awards under this Plan shall be earned by a participant on  the basis of the Company’s financial performance over the period or periods for  which the grants were awarded on the basis of pre-established performance goals  determined by the Board or the Committee, as the case may be, in its sole  discretion. The performance measurement criteria used for such grants shall be  limited to one or more of: earnings per share, return on stockholders’ equity,  return on assets, growth in earnings, growth in sales revenue, and stockholder  returns.  Such criteria may be measured  by the Company’s results or the Company’s performance as measured against a  group of comparable companies selected by the Committee. In applying such  criteria, earnings may be calculated based on the exclusion of discontinued  operations and extraordinary items. The Board or
the Committee, as the case may  be, may, in its sole discretion, include additional conditions and restrictions  in the agreement entered into in connection with awards under this Plan.

 

Section  5.  Stock Options.

 

	
   

  	
  (a)

  	
  Grant    and Exercise.  Stock    Options granted under this Plan may be of two types: (i) Incentive Stock    Options and (ii) Non-Qualified Stock Options. Any Stock Option granted under    this Plan shall contain such terms as the Board or the Committee, as the case    may be, may from time to time approve. The Board or the Committee, as the    case may be, shall have the authority to grant to any optionee Incentive    Stock Options, Non-Qualified Stock Options, or both types of Stock Options,    and they may be granted alone or in addition to other awards granted under    this Plan. To the extent that any Stock Option is not designated as an    Incentive Stock Option or does not qualify as an Incentive Stock Option, it    shall constitute a Non-Qualified Stock Option. The grant of an Option shall    be deemed to have occurred on the date on which the Board or the Committee,    as the case may be, by resolution, designates an individual as a
grantee    thereof, and determines the number of shares of Stock subject to, and the    terms and conditions of, said Option.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Anything in this Plan to the contrary notwithstanding,    no term of this Plan relating to Incentive Stock Options or any agreement    providing for Incentive Stock Options shall be interpreted, amended or    altered, nor shall any discretion or authority granted under the Plan be    exercised, so as to disqualify this Plan under Section 422 of the Code, or,    without the consent of the Optionee(s) affected, to disqualify any Incentive    Stock Option under Section 422.

  

 

4

 

	
   

  	
  (b)

  	
  Terms    and Conditions. Stock Options granted under this Plan shall    be subject to the following terms and conditions:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i)

  	
  Option    Price. The option price per share of Stock purchasable    under a Stock Option shall be determined by the Board or the Committee, as    the case may be, at the time of grant but shall be not less than 100% (110%    in the case of an Incentive Stock Option granted to an optionee (“10%    Stockholder”) who, at the time of grant, owns Stock possessing more than 10%    of the total combined voting power of all classes of stock of the Company or    its Parent, if any, or its Subsidiaries) of the Fair Market Value of the    Stock at the time of grant.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii)

  	
  Option    Term. The term of each Stock Option shall be fixed by the    Board or the Committee, as the case may be, but no Incentive Stock Option    shall be exercisable more than ten years (five years, in the, case of an    Incentive Stock Option granted to a 10% Stockholder) after the date on which    the Option is granted.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (iii)

  	
  Exercisability.    Stock Options shall be exercisable at such time or times and subject to such    terms and conditions as shall be determined by the Board or the Committee, as    the case may be, at the time of grant; provided, however, that    except as otherwise provided in this Section 5 and Section 9 below, unless    waived by the Board or the Committee, as the case may be, at or after the    time of grant, no Stock Option shall be exercisable prior to the first    anniversary date of the grant of the Option. If the Board or the Committee,    as the case may be, provides, in its discretion, that any Stock Option is    exercisable only in installments, the Board or the Committee, as the case may    be, may waive such installment exercise provisions at any time at or after    the time of grant in whole or in part, based upon such factors as the Board    or the Committee, as the case may be, shall determine.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (iv)

  	
  Method    of Exercise. Subject to whatever installment, exercise and    waiting period provisions are applicable in a particular case, Stock Options    may be exercised in whole or in part at any time during the option period by    giving written notice of exercise to the Company specifying the number of    shares of Stock to be purchased. Such notice shall be accompanied by payment    in full of the purchase price which shall be in cash unless otherwise    provided in this clause (iv) or in Section 5(b)(xi) below or, unless    otherwise provided in the Stock Option agreement referred to in Section    5(b)(xii) below, in whole shares of Stock which are already owned by the    holder of the Option or unless otherwise provided in the Stock Option    agreement referred to in Section 5(b)(xii) below, partly in cash and partly    in such Stock, Cash payments shall be made by wire transfer, certified or    bank check or personal check, in each case payable
to the order of the    Company; provided, however, that the Company shall not be    required to deliver certificates for shares of Stock with respect to which an    Option is exercised until the Company has confirmed the receipt of good and    available funds in payment of the purchase price thereof. Payments in the    form of Stock (which shall be valued at the Fair Market Value of a share of    Stock on the date of exercise) shall be made by delivery of stock    certificates in negotiable form which are effective to transfer good and    valid title thereto to the Company, free of any liens or encumbrances. In    addition to the foregoing, payment of the exercise price may be made by    delivery to the Company by the optionee of an executed exercise form,    together with irrevocable instructions to a broker-dealer to sell or margin a    sufficient portion of the shares covered by the option and deliver the sale    or margin loan proceeds directly to the Company. Except as otherwise
expressly provided in this Plan, no Option which is granted to a person who    is at the time of grant an employee of the Company or a Subsidiary or Parent    of the Company may be exercised at any time unless the holder thereof is then    an employee of the Company or of a Parent or a Subsidiary.  The holder of an Option shall have none of    the rights of a stockholder with respect to the shares subject to the Option    until the optionee has given written notice of exercise, has paid in full for    those shares of Stock and, if requested by the Board or Committee, as the    case may be, has given the representation described in Section 12(a) below.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (v)

  	
  Transferability;    Exercisability. No Stock Option shall be transferable by    the optionee other than by will or by the laws of descent and distribution;    provided, however, that a Non-Qualified 

  

 

5

 

	
   

  	
   

  	
   

  	
  Stock Option shall be transferable pursuant to a    qualified domestic relations order, and except as may be otherwise required    with respect to a Non-Qualified Option pursuant to a qualified domestic    relations order, all Stock Options shall be exercisable, during the    optionee’s lifetime, only by the optionee or his or her guardian or legal    representative.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (vi)

  	
  Termination    by Reason of Death. Subject to Section 5(b)(x) below, if an    optionee’s employment by the Company or any Parent or Subsidiary terminates    by reason of death, any Stock Option held by such optionee may thereafter be    exercised, to the extent then exercisable or on such accelerated basis as the    Board or Committee, as the case may be, may determine at or after the time of    grant, for a period of one year (or such other period as the Board or the    Committee, as the case may be, may specify at or after the time of grant)    from the date of death or until the expiration of the stated term of such    Stock Option, whichever period is the shorter.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (vii)

  	
  Termination    by Reason of Disability. Subject to Section 5(b)(x) below,    if an optionee’s employment by the Company or any Subsidiary terminates by    reason of Disability, any Stock Option held by such optionee may thereafter    be exercised by the optionee, to the extent it was exercisable at the time of    termination or on such accelerated basis as the Board or the Committee, as    the case may be, may determine at or after the time of grant, for a period of    three years (or such other period as the Board or the Committee, as the case    may be, may specify at or after the time of grant) from the date of such    termination of employment or until the expiration of the stated term of such    Stock Option, whichever period is the shorter; provided, however,    that if the optionee dies within such three-year period (or such other period    as the Board or the Committee, as the case
may be, shall specify at or after    the time of grant), any unexercised Stock Option held by such optionee shall    thereafter be exercisable to the extent to which it was exercisable at the    time of death for a period of one year from the date of death or until the    expiration of the stated term of such Stock Option, whichever period is the    shorter.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (viii)

  	
  Termination    by Reason of Retirement. Subject to Section 5(b)(x) below,    if an optionee’s employment by the Company or any Parent or Subsidiary    terminates by reason of Normal Retirement, any Stock Option held by such    optionee may thereafter be exercised by the optionee, to the extent it was    exercisable at the time of termination or on such accelerated basis as the    Board or the Committee, as the case may be, may determine at or after the    time of grant, for a period of three years (or such other period as the Board    or the Committee, as the case may be, may specify at or after the time of    grant) from the date of such termination of employment or the expiration of    the stated terms of such Stock Option, whichever period is the shorter; provided,    however, that if the optionee dies within such three-year period (or    such other period as the Board or the Committee,
as the case may be, shall    specify at or after the time of grant), any unexercised Stock Option held by    such optionee shall thereafter be exercisable to the extent to which it was    exercisable at the time of death for a period of one year from the date of death    or until the expiration of the stated terms of such Stock Option, whichever    period is the shorter. If an optionee’s employment with the Company or any    Parent or Subsidiary terminates by reason of Early Retirement, the Stock    Option shall thereupon terminate; provided, however, that if    the Board or the Committee, as the case may be, so approves at the time of    Early Retirement, any Stock Option held by the optionee may thereafter be    exercised by the optionee as provided above in connection with termination of    employment by reason of Normal Retirement.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ix)

  	
  Other    Termination. Subject to the provisions of Section 12(g)    below and unless otherwise determined by the Committee at or after the time    of grant, if an optionee’s employment by the Company or any Parent or    Subsidiary terminates for any reason other than death, Disability or    Retirement, the Stock Option shall thereupon automatically terminate, except    that if the optionee is involuntarily terminated by the Company or any Parent    or a Subsidiary without cause (as hereinafter defined) such Stock Option may    be exercised for a period of six months from the date of such termination or    until the expiration of the stated terms of such Stock Option, whichever    period is the shorter. For purposes of this Plan, “Cause” shall mean (1) the    conviction of the optioned of a felony under Federal law or the law of the    state in which such action occurred, (2) dishonesty by the
optionee in the    course of fulfilling his or her employment duties, or (3) the

  

 

6

 

	
   

  	
   

  	
   

  	
  willful and deliberate failure on the part of the    optionee to perform his or her employment duties in any material-respect. In    addition, with respect to an option granted to an employee of the Company, a    Parent or a Subsidiary, for purposes of this Plan, “Cause” shall also include    any definition of “Cause” contained in any employment agreement between the    optionee and the Company, Parent or Subsidiary, as the case may be.

  	
   

  
	
   

  	
   

  	
  (x)

  	
  Additional    Incentive Stock Option Limitation. In the case of an    Incentive Stock Option, the aggregate Fair Market Value of Stock (determined    at the time of grant of the Option) with respect to which Incentive Stock    Options are exercisable for the first time by an optionee during any calendar    year (under all such plans of optionee’s employer corporation and its Parent,    if any, and Subsidiaries) shall not exceed $100,000.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (xi)

  	
  Alternative    Settlement of Option. Upon the receipt of written notice of    exercise, the Board or the Committee, as the case may be, may elect to settle    all or part of any Stock Option by paying to the optionees an amount, in cash    or Stock (valued at Fair Market Value on the date of exercise), equal to the    excess of the Fair Market Value of one share of Stock, on the date of    exercise over the Option exercise price, multiplied by the number of shares    of Stock with respect to which the optionee proposes to exercise the Option.    Any such settlements which relate to Options which are held by optionees who    are subject to Section 16(b) of the Exchange Act shall comply with the    “window period” provisions of Rule 16b-3, to the extent applicable and with    such other conditions as the Board or Committee may impose. No such    discretion may be exercised unless the option agreement permits the payment    of the purchase
price in that manner.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (xii)

  	
  Stock    Option Agreement. Each grant of a Stock Option shall be    confirmed by, and shall be subject to the terms of, an agreement executed by    the Company and the participant.

  

 

Section  6.  Restricted Stock.

 

	
   

  	
  (a)

  	
  Grant    and Exercise. Shares of Restricted Stock may be issued    either alone or in addition to or in tandem with other awards granted under    this Plan. The Board or the Committee, as the case may be, shall determine    the eligible persons to whom, and the time or times at which, grants of    Restricted Stock will be made, the number of shares to be awarded, the price    (if any) to be paid by the recipient, the time or times within which such    awards may be subject to forfeiture (the “Restriction Period”), the vesting    schedule and rights to acceleration thereof, and all other terms and    conditions of the awards. The Board or the Committee, as the case may be, may    condition the grant of Restricted Stock upon the attainment of specified    Performance Objectives or such other factors as the Board or the Committee,    as the case may be, may determine.

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  Terms    and Conditions. Each Restricted Stock award shall be    subject to the following terms and conditions:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i)

  	
  Restricted Stock, when issued, will be represented    by a stock certificate or certificates registered in the name of the holder    to whom such Restricted Stock shall have been awarded. During the Restriction    Period, certificates representing the Restricted Stock and any securities    constituting Retained Distributions (as defined below) shall bear a    restrictive legend to the effect that ownership of the Restricted Stock (and    such Retained Distributions), and the enjoyment of all rights appurtenant    thereto, are subject to the restrictions, terms and conditions provided in    this Plan and the Restricted Stock agreement referred to in Section 6(b)(iv)    below. Such certificates shall be deposited by the holder with the Company,    together with stock powers or other instruments of assignment, endorsed in    blank, which will permit transfer to the Company of all or any portion of the    Restricted Stock and any securities constituting
Retained Distributions that    shall be forfeited or that shall not become vested in accordance with this    Plan and the applicable Restricted Stock agreement.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii)

  	
  Restricted Stock shall constitute issued and    outstanding shares of Common Stock for all corporate purposes, and the    issuance thereof shall be made for at least the minimum 

  

 

7

 

	
   

  	
   

  	
   

  	
  consideration (if necessary) to permit the shares of    Restricted Stock to be deemed to be fully paid and nonassessable. The holder    will have the right to vote such Restricted Stock, to receive and retain all    regular cash dividends and other cash equivalent distributions as the Board    may in its sole discretion designate, pay or distribute on such Restricted    Stock and to exercise all other rights, powers and privileges of a holder of    Stock with respect to such Restricted Stock, with the exceptions that (A) the    holder will not be entitled to delivery of the stock certificate or    certificates representing such Restricted Stock until the Restriction Period    shall have expired and unless all other vesting requirements with respect    thereto shall have been fulfilled; (B) the Company will retain custody of the    stock certificate or certificates representing the Restricted Stock during    the
Restriction Period; (C) other than regular cash dividends and other cash    equivalent distribution as the Board may in its sole discretion designate,    pay or distribute, the Company will retain custody of all distributions    (“Retained Distributions”) made or declared with respect to the Restricted    Stock (and such Retained Distributions will be subject to the same    restrictions, terms and conditions as are applicable to the Restricted Stock)    until such time, if ever, as the Restricted Stock with respect to which such    Retained Distributions shall have been made, paid or declared shall have    become vested and with respect to which the Restriction Period shall have    expired; (D) the holder may not sell, assign, transfer, pledge, exchange,    encumber or dispose of the Restricted Stock or any Retained Distributions    during the Restriction Period; and (E) a breach of any of the restrictions,    terms or conditions contained in this Plan or the Restricted Stock agreement
referred to in Section 6(b)(iv) below, or otherwise established by the    Committee with respect to any Restricted Stock and Retained Distributions    will cause a forfeiture of such Restricted Stock and any Retained    Distributions with respect thereto.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (iii)

  	
  Upon the expiration of the Restriction Period with    respect to each award of Restricted Stock and the satisfaction of any other    applicable restrictions, terms and conditions (A) all or part of such    Restricted Stock shall become vested in accordance with the terms of the Restricted    Stock agreement referred to in Section 6(b)(iv) below, and (B) any Retained    Distributions with respect to such Restricted Stock shall become vested to    the extent that the Restricted Stock related thereto shall have become    vested. Any such Restricted Stock and Retained Distributions that do not vest    shall be forfeited to the Company and the holder shall not thereafter have    any rights with respect to such Restricted Stock and Retained Distributions    that shall have been so forfeited.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (iv)

  	
  Each Restricted Stock award shall be confirmed by,    and shall be subject to the terms of, an agreement executed by the Company    and the participant.

  

 

Section  7.  Deferred Stock.

 

	
   

  	
  (a)

  	
  Grant    and Exercise. Deferred Stock may be awarded either alone or    in addition to or in tandem with other awards granted under the Plan. The    Board or the Committee, as the case may be, shall determine the eligible    persons to whom and the time or times at which Deferred Stock shall be    awarded, the number of shares of Deferred Stock to be awarded to any person,    the duration of the period (the “Deferral Period”) during which, and the    conditions under which, receipt of the Deferred Stock will be deferred, and    all the other terms and conditions of the awards. The Board or the Committee,    as the case may be, may condition the grant of the Deferred Stock upon the    attainment of specified Performance Objectives or such other factors or    criteria as the Board or the Committee, as the case may be, shall determine.

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  Terms    and Conditions. Each Deferred Stock award shall be subject    to the following terms and conditions:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i)

  	
  Subject to the provisions of this Plan and Deferred    Stock agreement referred to in Section 7(b)(vii) below, Deferred Stock awards    may not be sold, assigned, transferred, pledged or otherwise encumbered    during the Deferral Period. At the expiration of the Deferral Period (or the    Additional Deferral Period referred to in Section 7(b)(vi) below, where    applicable), share certificates shall be delivered to the participant, or his    legal representative, in a number equal to the shares of Stock covered by the    Deferred Stock award.

  

 

8

 

	
   

  	
   

  	
  (ii)

  	
  As determined by the Committee at the time of award,    amounts equal to any dividends declared during the Deferral Period (or the    Additional Deferral Period referred to in Section 7(b)(vi) below, where    applicable) with respect to the number of shares covered by a Deferred Stock    award may be paid to the participant currently or deferred and deemed to be    reinvested in additional Deferred Stock.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (iii)

  	
  Subject to the provisions of the Deferred Stock    agreement referred to in Section 7(b)(vii) below and this Section 7 and    Section 12(g) below, upon termination of participant’s employment with the    Company or any Subsidiary for any reason during the Deferral Period (or the    Additional Deferral Period referred to in Section 7(b)(vi) below, where    applicable) for a given award, the Deferred Stock in question will vest or be    fortified in accordance with the terms and conditions established by the    Board or the Committee, as the case may be, at the time of grant.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (iv)

  	
  The Board or the Committee, as the case may be, may,    after grant, accelerate the vesting of all or any part of any Deferred Stock    award and/or waive the deferral limitations for all or any part of a Deferred    Stock award.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (v)

  	
  In the event of hardship or other special    circumstances of a participant whose employment with the Company or any    Parent or Subsidiary is involuntarily terminated (other than for Cause), the    Board or the Committee, as the case may be, may waive in whole or in part any    or all of the remaining deferral limitations imposed hereunder or pursuant to    the Deferred Stock agreement referred to in Section 7(b)(vii) below with    respect to any or all of the participant’s Deferred Stock.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (vi)

  	
  A participant may request to, and the Board or the    Committee, as the case may be, may at any time, defer the receipt of an award    (or an installment of an award) for an additional specified period or until a    specified period or until a specified event (the “Additional deferral    Period”). Subject to any exceptions adopted by the Board or the Committee, as    the case may be, such request must be made at least one year prior to    expiration of the Deferral Period for such Deferred Stock award (or such    installment).

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (vii)

  	
  Each Deferred Stock award shall be confirmed by, and    shall be subject to the terms of, an agreement executed by the Company and    the participant.

  

 

Section  8.  Other Stock-Based Awards.

 

	
   

  	
  (a)

  	
  Grant    and Exercise. Other Stock-Based Awards, which may include    performance shares and shares valued by reference to the performance of the    Company or any Subsidiary, may be granted either alone or in addition to or    in tandem with Stock Options, Restricted Stock or Deferred Stock. The Board    or the Committee, as the case may be, shall determine the eligible persons to    whom, and the time or times at which, such awards shall be made, the number    of shares of Stock to be awarded pursuant to such awards, and all other terms    and conditions of the awards. The Board or the Committee, as the case may be,    may also provide for the grant of Stock under such awards upon the attainment    of specified Performance Objectives and/or completion of a specified    performance period.

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  Terms    and Conditions.     Each Other Stock-Based Award shall be subject to the following terms    and conditions:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i)

  	
  Shares of Stock subject to an Other Stock-Based may    not be sold, assigned, transferred, pledged or otherwise encumbered prior to    the date on which the shares are issued, or, if later, the date on which any    applicable restriction or period of deferral lapses.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii)

  	
  The recipient of Other Stock-Based Award shall be    entitled to receive, currently or on a deferred basis, dividends or dividend    equivalents with respect to the number of shares covered by the award, as    determined by the Board or the Committee, as the case may be, at the time of    the award. 

  

 

9

 

	
   

  	
   

  	
   

  	
  The Board or the Committee, as the case may be, may    provide that such amounts (if any) shall be deemed to have been reinvested in    additional Stock.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (iii)

  	
  Any Other Stock-Based Award and any Stock covered by    any Other Stock-Based Award shall vest or be forfeited to the extent so    provided in the award agreement referred to in Section 8(b)(v) below, as    determined by the Board or the Committee, as the case may be.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (iv)

  	
  In the event of the participant’s Retirement,    Disability or death, or in case of special circumstances, the Board or the    Committee, as the case may be, may waive in whole or in part any or all of    the limitations imposed hereunder (if any) with respect to any or all of an    Other Stock-Based Award.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (v)

  	
  Each Other Stock-Based Award shall be confirmed by,    and shall be subject to the terms of, an agreement executed by the Company    and by the participant.

  

 

Section  9.  Change of Control Provisions.

 

	
   

  	
  (a)

  	
  A “Change of Control” shall be deemed to have    occurred on the tenth day after:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i)

  	
  any individual, entity or group (as defined in    Section 13(d)(3) of the Exchange Act), becomes, directly or indirectly, the    beneficial owner (within the meaning of Rule l3d-3 promulgated under the    Exchange Act) of more than 25% of the then outstanding shares of the    Company’s capital stock entitled to vote generally in the election of    directors of the Company; or

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii)

  	
  the commencement of, or the first public    announcement of the intention of any individual, firm, corporation or other    entity or of any group (as defined in Section 13(d)(3) of the Exchange Act)    to commence, a tender or exchange offer subject to Section 14(d)(1) of the    Exchange Act for any class of the Company’s capital stock; or

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (iii)

  	
  the stockholders of the Company approve (A) a    definitive agreement for the merger or other business combination of the    Company with or into another corporation pursuant to which the stockholders    of the Company immediately prior to the transaction do not own, immediately    after the transaction, more than 50% of the voting power of the corporation    that survives, or (B) a definitive agreement for the sale, exchange or other    disposition of all or substantially all of the assets of the Company, or (C)    any plan or proposal for the liquidation or dissolution of the Company;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Provided, however, that a    “Change of Control” shall not be deemed to have taken place if beneficial    ownership is acquired (A) directly from the Company, other than an    acquisition by virtue of the exercise or conversion of another security    unless the security so converted or exercised was itself acquired directly    from the Company, or (B) by, or a tender or exchange offer is commenced or    announced by, the Company, any profit-sharing, employee ownership or other    employee benefit plan sponsored or maintained by the Company; or any trustee    of or fiduciary with respect to any such plan when acting in such capacity.

   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  In the event of a “Change of Control” as defined in    Section 9(a) above, awards granted under this Plan shall be subject to the    following provisions, unless the provisions of this Section 9 are suspended    or terminated by the Board prior to the occurrence of such a “Change of    Control”:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i)

  	
  all outstanding Stock Options which have been    outstanding for at least six months shall become exercisable in full, whether    or not otherwise exercisable at such time, and any such Stock Option shall    remain exercisable in full thereafter until it expires pursuant to its terms;    and

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii)

  	
  all restrictions and deferral limitations contained    in Restricted Stock awards, Deferred Stock awards and Other Stock-Based    Awards granted under the Plan shall lapse.

  

 

10

 

Section  10.  Amendments and Termination.

 

The Board may at any time, and from time to time,  amend any of the provisions of this Plan, and may at any time suspend or  terminate the Plan; provided, however, that no such amendment  shall be effective unless and until it has been duly approved by the holders of  the outstanding shares of Stock if the failure to obtain such approval would  adversely affect the compliance of the Plan with the requirements of Rule  16b-3, Section 162(m) or any other applicable law, rule or regulation. The  Board or the Committee, as the case may be, may amend the terms of any Stock  Option or other award theretofore granted under the Plan; provided, however,  that subject to Section 3 above, no such amendment may be made by the Board or  the Committee, as the case may be, which in any material respect impairs the  rights of the optionee or participant without the optionee’s or participant’s  consent, except for
such amendments which are made to cause this Plan to  qualify for the exemption provided by Rule 16b-3 or to be in compliance with  the provisions of Section 162(m).

 

Section  11.  Unfunded Status of Plan.

 

The Plan is intended to constitute an “unfunded” plan  for incentive and deferred compensation. With respect to any payments not yet  made to a participant or optionee by the Company, nothing contained herein  shall give any such participant or optionee any rights that are greater than  those creditor of the Company.

 

Section  12.  General Provisions.

 

	
   

  	
  (a)

  	
  The Board or the Committee, as the case may be, may    require each person acquiring shares of Stock Option or other award under    this Plan to represent to and agree with the Company in writing that the    optionee or participant is acquiring the shares for investment without a view    towards the distribution thereof.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  All certificates for shares of Stock delivered under    this Plan shall be subject to such stop transfer orders and other    restrictions as the Board or the Committee, as the case may be, may deem to    be advisable in order to assure compliance with the rules, regulations, and    other requirements of the Securities and Exchange Commission, any stock    exchange or association upon which the Stock is then listed or quoted, any applicable    Federal or state securities law, and any applicable corporate law, and the    Board or the Committee, as the case may be, may cause a legend or legends to    be put on any such certificates to make appropriate reference to such    restrictions.

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  Nothing contained in the Plan shall prevent the    Board from adopting such other or additional incentive arrangements as it may    deem desirable, including, but not limited to, the granting of stock options    and the awarding of stock and cash otherwise than under this Plan; and such    arrangements may be either generally applicable or applicable only in    specific cases.

  
	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  Nothing contained in this Plan or in any award    hereunder shall be deemed to confer upon any employee of the Company or any    Parent or Subsidiary any right to continued employment with the Company or    any Parent or Subsidiary, nor shall it interfere in any way with the right of    the Company or any Parent or Subsidiary to terminate the employment of any of    its employees at any time.

  
	
   

  	
   

  	
   

  
	
   

  	
  (d)

  	
  No later than the date as of which an amount first    becomes includable in the gross income of the participant for Federal income    tax purposes with respect to any Option or other award under this Plan, the    participant shall pay to the Company, or make arrangements satisfactory to    the Board or the Committee, as the case may be, regarding the payment of, any    Federal, state and local taxes of any kind required by law to be withheld or    paid with respect to such amount. If permitted by the Board or the Committee,    as the case may be, tax withholding or payment obligations may be settled    with Stock, including Stock that is part of the award that gives rise to the    withholding requirement. The obligations of the Company under this Plan shall    be conditional upon such payment or arrangements, and the Company and any    Subsidiary shall, to the extent permitted by law, have the right to deduct    any such taxes from any payment of any kind
otherwise due to the participant    from the Company or any Parent or Subsidiary.

  
	
   

  	
   

  	
   

  
	
   

  	
  (e)

  	
  This Plan and all awards made and actions taken    thereunder shall be governed by and construed in accordance with the laws of    the State of Delaware (without regard to choice of law provisions).

  

 

11

 

	
   

  	
  (f)

  	
  Any Stock Option granted or other award made under    this Plan shall not be deemed compensation for purposes of computing benefits    under any retirement plan of the Company or any Parent or Subsidiary and    shall not affect any benefits under any other benefit plan now or    subsequently in effect under which the availability or amount of benefits is    related to the level of compensation (unless required by specific reference    in any such other plan to awards under this Plan). 

  
	
   

  	
   

  	
   

  
	
   

  	
  (g)

  	
  A leave of absence, unless otherwise determined by    the Committee prior to the commencement thereof, shall not be considered a    termination of employment.  Any Stock    Option granted or awards made under this Plan shall not be affected by any    change of employment, so long as the holder continues to be an employee of    the Company or any Parent or Subsidiary.

  
	
   

  	
   

  	
   

  
	
   

  	
  (h)

  	
  Except as otherwise expressly provided in this Plan,    no right or benefit under this Plan may be alienated, sold, assigned,    hypothecated, pledged, exchanged,     transferred, encumbered or charged, and any attempt to alienate, sell,    assign, hypothecate, pledge, exchange, transfer, encumber or charge the same    shall be void. No right or benefit hereunder shall in any manner be subject    to the debts, contracts or liabilities of the person entitled to such    benefit.

  
	
   

  	
   

  	
   

  
	
   

  	
  (i)

  	
  The obligations of the Company with respect to all    Stock Options and awards under this Plan shall, be subject to (A) all    applicable laws, rules and regulations, and such approvals by any    governmental agencies as may be required, including, without limitation, the    effectiveness of a registration statement under the Securities Act, and (B)    the rules and regulations of any securities exchange or association on which    the Stock may be listed or quoted.

  
	
   

  	
   

  	
   

  
	
   

  	
  (j)

  	
  It is the intention of the Company that this Plan    complies with the requirements of Rule 16b-3, Section 162(m) and all other    applicable laws, rules and regulations, and any ambiguities or    inconsistencies in the construction of any of the provisions of this Plan    shall be interpreted to give effect to such intention. If any of the terms or    provisions of this Plan conflict with the requirements of Rule 16b-3, or with    the requirements of Section 162(m) or any other applicable law, rule or    regulation, and with respect to Incentive Stock Options under Section 422 of    the Code, then such terms or provisions shall be deemed inoperative to the    extent they so conflict. With respect to Incentive Stock Options, if this    Plan does not contain any provision required to be included herein under    Section 422 of the Code, such provision shall be deemed to be incorporated    herein with the same force and effect as if such provision had been set
out    at length herein.

  
	
   

  	
   

  	
   

  
	
   

  	
  (k)

  	
  The Board or the Committee, as the case may be, may    terminate any Stock Option or other award made under this Plan if a written    agreement relating thereto is not executed and returned to the Company within    30 days after such agreement has been delivered to the optionee or    participant for his or her execution.

  
	
   

  	
   

  	
   

  
	
   

  	
  (1)

  	
  The grant of awards pursuant to this Plan shall not    in any way effect the right or power of the Company to make    reclassifications, reorganizations or other changes of or to its capital or    business structure or to merge, consolidate, liquidate, sell or otherwise    dispose of all or any part of its business or assets.

  

 

Section  13.  Effective Date of Plan.

 

The Plan shall be effective as of the date of the  approval and adoption thereof at a meeting of the stockholders of the Company.

 

Section  14.  Term of Plan.

 

This Plan shall terminate on the tenth anniversary of  its effective date, and no Stock Option, Restricted Stock Award, Deferred Stock  award or Other Stock-Based Award shall be granted pursuant to this Plan after  said date. Awards granted on or prior to such date may extend beyond that date.

 

12

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