Document:

ex10_1.htm

    
      

    

    
      Exhibit
10.1

      

      Sixth
Amendment to the

      I-SECTOR
CORP. INCENTIVE PLAN

      (As
Amended and Restated Effective July 28, 2003)

      

      WHEREAS, the I-Sector
Corp.  Incentive Plan as amended and restated effective July 28, 2003,
(the “Plan”) was adopted by the Board of Directors of INX Inc. and approved by
shareholders on July 28, 2003; and

      

      WHEREAS, under Section 7.7 of
the Plan the Board has the authority to amend the Plan subject to certain
shareholder approval requirements; and

      

      WHEREAS, the Board has
authorized this sixth amendment of the Plan subject to stockholder approval as
provided herein.

      

      NOW THEREFORE, the Plan is
hereby amended as follows:

      

      The first
and second sentences of Section 1.1 of the Plan shall be amended in their
entirety to read as follows:

      

      “The INX
Inc. Incentive Plan as amended and restated effective July 28, 2003 (the “Plan”)
amends and restates the Allstar Systems, Inc. 2000 Stock Incentive Plan (the
“Prior Plan”) to increase the number of shares of Common Stock available for
Incentive Awards and to make certain other changes as provided herein. Allstar
Systems, Inc. changed its name to I-Sector Corp. and I-Sector Corp. subsequently
changed its name to INX Inc.”

      

      All other
references to “I-Sector Corp.” in the Plan shall be replaced with the term “INX
Inc.”

      

      Section
1.4 shall be amended in its entirety to read as follows:

      

      1.4
Shares of Common Stock Available for Incentive Awards

      

      Subject
to adjustment under Section 6.5, there shall be available for Incentive Awards
that are granted wholly or partly in Common Stock (including rights or Options
that may be exercised for or settled in Common Stock) 3,073,103 Shares of Common
Stock. The total number of Shares reserved for issuance under the Plan (pursuant
to the previous sentence) shall be available for any one of the following types
of grants: Incentive Stock Options, Nonstatutory Stock Options, SAR, Restricted
Stock, a payment of a Performance Share in Shares, a payout of a Performance
Unit in Shares, a payout of an Other Stock-Based Award in Shares described in
Section 5 which includes, without limitation, Deferred Stock, purchase rights,
shares of Common Stock awarded which are not subject to any restrictions or
conditions, convertible or exchangeable debentures, other rights convertible
into Shares, Incentive Awards valued by reference to the value of securities of
or the performance of a specified Subsidiary, division or department, and
settlement in cancellation of rights of any person with a vested interest in any
other plan, fund, program or arrangement that is or was sponsored, maintained or
participated in by the Company or any Parent or Subsidiary. The number of Shares
of Common Stock that are the subject of Incentive Awards under this Plan, that
are forfeited or terminated, expire unexercised, are settled in cash in lieu of
Common Stock or in a manner such that all or some of the Shares covered by an
Incentive Award are not issued to a Grantee or are exchanged for Incentive
Awards that do not involve Common Stock, shall again immediately become
available for Incentive Awards hereunder. The Committee may from time to time
adopt and observe such procedures concerning the counting of Shares against the
Plan maximum as it may deem appropriate. The Board and the appropriate officers
of the Company shall from time to time take whatever actions are necessary to
file any required documents with governmental authorities, stock exchanges and
transaction reporting systems to ensure that Shares are available for issuance
pursuant to Incentive Awards.

      

      During
any period that the Company is a Publicly Held Corporation, then unless and
until the Committee determines that a particular Incentive Award granted to a
Covered Employee is not intended to comply with the Performance-Based Exception,
the following rules shall apply to grants of Incentive Awards to Covered
Employees:

       

      (a)
Subject to adjustment as provided in Section 6.5, the maximum aggregate number
of Shares of Common Stock (including Stock Options, SARs, Restricted Stock,
Performance Units and Performance Shares paid out in Shares, or Other
Stock-Based Awards paid out in Shares) that may be granted or that may vest, as
applicable, in any calendar year pursuant to any Incentive Award held by any
individual Employee shall be 3,073,103 Shares.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (b) The
maximum aggregate cash payout (including SARs, Performance Units and Performance
Shares paid out in cash, or Other Stock-Based Awards paid out in cash) with
respect to Incentive Awards granted in any calendar year which may be made to
any individual Employee shall be Twenty Million dollars
($20,000,000).

      

      (c) With
respect to any Stock Option or Stock Appreciation Right granted to a Covered
Employee that is canceled or repriced, the number of Shares subject to such
Stock Option or Stock Appreciation Right shall continue to count against the
maximum number of Shares that may be the subject of Stock Options or Stock
Appreciation Rights granted to such Employee hereunder to the extent such is
required in accordance with Section 162(m) of the Code.

      

      (d) The
limitations of subsections (a), (b) and (c) above shall be construed and
administered so as to comply with the Performance-Based Exception.

      

      The Plan
as amended hereby is effective on April 3, 2008, subject to approval of the
stockholders of the Company within one year from April 3, 2008. Incentive Awards
may be granted under the Plan pursuant to this amendment prior to the receipt of
such stockholder approval; provided however, that if the requisite stockholder
approval is not obtained then any such Incentive Awards granted hereunder shall
automatically become null and void and have no force and effect.

       

       

      
        	 
      	
                INX
      Inc.

              	 
	 
      	 
      	 
      	 
	 
      	
                By:

              	
                /s/  James H.
      Long

              	 
	 
      	 
      	
                James
      H. Long, Chairman of the Board and
      Chief Executive Officerex10_2.htm

    
      

    

    
      Exhibit
10.2

      

      INX
INC. 2008 EMPLOYEE STOCK PURCHASE PLAN

      

      1. Purpose.
The purpose of the Plan is to provide employees of the Company and its
Designated Subsidiaries with an opportunity to purchase Common Stock of the
Company. It is the intention of the Company to have the Plan qualify as an
“employee stock purchase plan” under Code Section 423 (including any amendments
or replacements of such Section). The provisions of the Plan shall, accordingly,
be construed in a manner consistent with the requirements of Code Section 423
and the applicable guidance of the Internal Revenue Service related
thereto.

      

      2. Definitions.

      

      (a) ”Board” means the Board of
Directors of the Company.

      

      (b) ”Code” means the Internal Revenue
Code of 1986, as amended.

      

      (c) ”Common
Stock” means the
Common Stock of the Company.

      

      (d) ”Company” means INX, Inc., a Delaware
corporation.

      

      (e) ”Compensation” means all W-2 cash
compensation, including, but not limited to, base salary, wages, bonuses,
incentive compensation, commissions, overtime, shift premiums, plus draws
against commissions, provided, however that compensation shall not include any
long term disability or workmen’s compensation payments, sabbatical payments,
car allowances, tuition, relocation payments, expense reimbursements and any
income realized as a result of participation in any stock option, stock
purchase, or similar plan of the Company or of any Designated Subsidiary, and
further provided, however, that for purposes of determining a participant’s
compensation, any election by such participant to reduce his or her regular cash
remuneration under Code Sections 125 or 401(k) shall be treated as if the
participant did not make such election.

      

      (f) ”Continuous
Status as an Employee”
means the absence of any interruption or termination of service as an
Employee. Continuous Status as an Employee shall not be considered interrupted
in the case of (i) transfers between locations of the Company or between the
Company and its Designated Subsidiaries, or (ii) any sick leave, military leave,
or any other leave of absence approved by the Company, provided that any such
leave is for a period of not more than ninety (90) days, unless reemployment
upon the expiration of such leave is guaranteed by contract or statute, or
unless provided otherwise pursuant to Company policy adopted from time to
time.

      

      (g) ”Contributions” means all amounts credited
to the account of a participant pursuant to the Plan.

      

      (h) ”Corporate
Transaction”
means a sale of all or substantially all of the Company’s assets, or a
merger, consolidation or other capital reorganization of the Company with or
into another corporation.

      

      (i) ”Designated
Subsidiaries”
means the Subsidiaries which have been designated by the Plan
Administrator from time to time in its sole discretion as eligible to
participate in the Plan.

      

      (j) ”Employee” means any common law
employee of the Company or one of its Designated Subsidiaries.

      

      (k) ”Exchange
Act” means the
Securities Exchange Act of 1934, as amended.

      

      (l) ”Fair
Market Value”
means the market price of a Share as determined in good faith by the
Board. Such determination shall be conclusive and binding on all persons. The
Fair Market Value shall be determined by the following:

      

      (i) If
the Shares are admitted to trading on any established national stock exchange or
market system on the date in question then the Fair Market Value shall be equal
to the closing sales price for such Shares as quoted on such national exchange
or system on such date; or

      

      (ii) if
the Shares are admitted to quotation or are regularly quoted by a recognized
securities dealer but selling prices are not reported on the date in question,
then the Fair Market Value shall be equal to the mean between the bid and asked
prices of the Shares reported for such date.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      In each
case, the applicable price shall be the price reported in such source as the
Board deems reliable; provided, however, that if there is no such reported price
for the Shares for the date in question, then the Fair Market Value shall be
equal to the price reported on the last preceding date for which such price
exists. If neither (i) or (ii) are applicable, then the Fair Market Value shall
be determined by the Board in good faith on such basis as it deems
appropriate.

      

      (m) ”Offering
Date” means the
first trading day of each Offering Period under the Plan.

      

      (n) ”Offering
Period” means a
period of a duration to be determined by the Plan Administrator prior to the
commencement of the Offering Period as set forth in Section 4(a).

      

      (o) ”Plan” means this INX, Inc. 2008
Employee Stock Purchase Plan.

      

      (p) ”Plan
Administrator”
means the Board or a committee comprised of at least two or more Board
members appointed from time to time by the Board.

      

      (q) ”Purchase
Date” means the
last trading day of each Purchase Period under the Plan.

      

      (r) ”Purchase
Period” means a
period within an Offering Period of a duration to be determined by the Plan
Administrator prior to the commencement of the Purchase Period as set forth in
Section 4(b) .

      

      (s) ”Purchase
Price” means
with respect to a Purchase Period an amount equal to eighty-five percent (85%)
of the Fair Market Value of a Share on the Offering Date or on the Purchase
Date, whichever is lower; provided, however, that in the event (i) of any
increase in the number of Shares available for issuance under the Plan as a
result of a stockholder-approved amendment to the Plan, (ii) all or a portion of
such additional Shares are to be issued with respect to one or more Offering
Periods that are underway at the time of such increase (“Additional Shares”),
and (iii) the Fair Market Value of a Share on the date of such increase (the
“Approval Date Fair
Market Value”) is higher than the Fair Market Value on the Offering Date
for any such Offering Period, then in such instance the Purchase Price with
respect to Additional Shares shall be eighty-five percent (85%) of the Approval
Date Fair Market Value or the Fair Market Value of a Share on the Purchase Date,
whichever is lower.

      

      (t) ”Share” means a share of Common
Stock.

      

      (u) ”Subsidiary” means any corporation
(other than the Company) in an unbroken chain of corporations beginning with the
Company if, at the time of grant 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 chain. A corporation that attains the
status of a Subsidiary on a date after the adoption of the Plan shall be
considered a Subsidiary commencing as of such date.

      

      3. Eligibility.

      

      (a) Any
person who is an Employee and who meets the eligibility provisions for an
Offering Period set forth in Section 3(b) below as of a date on or prior to the
Offering Date established by the Plan Administrator shall be eligible to
participate in such Offering Period, subject to the requirements of Section 5(a)
and the limitations imposed by Code Section 423(b), and provided however that
eligible Employees may not participate in more than one Offering Period at a
time.

      

      (b)
Subject to Section 3(a) above and only to the extent determined by the Plan
Administrator for all Employees prior to the applicable deadline date
established by the Plan Administrator for an Offering Period, any Employee,
other than the Employees set forth below, shall be eligible to participate in
such Offering Period:

      

      (i)
Employees who are customarily employed for twenty (20) hours or less per week;
and

      

      (ii)
Employees who are customarily employed for five (5) months or less in a calendar
year.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (c) Any
provisions of the Plan to the contrary notwithstanding, no Employee shall be
granted an option under the Plan (i.e., be permitted to participate in an
Offering Period) (i) if, immediately after the grant, such Employee (or any
other person whose stock would be attributed to such Employee pursuant to Code
Section 424(d)) would own capital stock of the Company and/or hold outstanding
options to purchase stock possessing five percent (5%) or more of the total
combined voting power or value of all classes of stock of the Company or of any
subsidiary, or (ii) if such option would permit his or her rights to purchase
stock under all Code Section 423 employee stock purchase plans of the Company
and its Subsidiaries to accrue at a rate which exceeds twenty-five thousand
dollars ($25,000) of the Fair Market Value of such stock (determined at the time
such option is granted) for each calendar year in which such option is
outstanding at any time.

      

      4. Offering
Periods and Purchase Periods.

      

      (a) Offering
Periods. The
Plan shall be implemented by a series of Offering Periods, which may or may not
be consecutive and each of which will be of such duration as determined by the
Plan Administrator prior to the commencement of the Offering Period, provided
that no Offering Period may exceed twenty-seven (27) months. Offering Periods
may commence at any time as determined by the Plan Administrator (e.g., at
quarterly or semi-annual intervals over the term of the Plan). The Company will
announce the date each Offering Period will commence and the duration of that
Offering Period in advance of the first day of such Offering Period. The Plan
shall continue until terminated in accordance with Section 19 hereof. The Plan
Administrator shall have the power to change the duration and/or the frequency
of Offering Periods with respect to future offerings without stockholder
approval if such change is announced at least five (5) days prior to the
scheduled beginning of the first Offering Period to be affected, or later if
permitted by applicable law.

      

      (b) Purchase
Periods. Each
Offering Period shall consist of one (1) or more Purchase Periods as determined
by the Plan Administrator. The last trading day of each Purchase Period shall be
the “Purchase
Date” for such Purchase Period. Subject to Section 2(r), the Plan
Administrator shall have the power to change the duration and/or frequency of
Purchase Periods with respect to future purchases without stockholder approval
if such change is announced at least five (5) days prior to the scheduled
beginning of the first Purchase Period to be affected, or later, if permitted by
applicable law.

      

      5. Participation.

      

      (a) An
eligible Employee may become a participant in the Plan by completing a
subscription agreement on the form provided by the Company and filing it with
the Company in such manner and at such time prior to the applicable Offering
Date as specifically required by the Company, unless a later time for filing the
subscription agreement is set by the Company for all eligible Employees with
respect to a given Offering Period. The subscription agreement shall set forth
the percentage of the participant’s Compensation (subject to Section 6(a) below)
to be submitted as Contributions under the Plan. A participant may increase or
decrease the rate of such Contributions for any Offering Period by filing with
the Company a new subscription agreement prior to the beginning of such Offering
Period, or such other time as specified by the Plan Administrator.

      

      (b)
Payroll deductions shall commence with the first payroll paid following the
Offering Date and shall end with the last payroll paid on or prior to the
applicable Purchase Date for the Purchase Period to which the subscription
agreement is applicable, unless sooner terminated by the participant as provided
in Section 10.

      

      6. Method
of Payment of Contributions.

      

      (a) A
participant shall elect to have payroll deductions submitted as Contributions on
each payday during the Offering Period in an amount not less than one percent
(1%) and not more than twenty percent (20%) (or such lesser or greater
percentage as the Plan Administrator may establish from time to time before an
Offering Date or if permitted under applicable law, the first day of any
Purchase Period) of such participant’s Compensation on each payday during the
Offering Period. All payroll deductions made by a participant shall be credited
to his or her account under the Plan. A participant may not (i) make any
additional payments into such account or (ii) change the rate of his or her
payroll deductions with respect to an Offering Period or Purchase period, except
as permitted by the Plan Administrator; provided, however, that a participant
may discontinue his or her participation in the Plan as provided in Section
10.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (b)
Notwithstanding the foregoing, to the extent necessary to comply with Code
Section 423(b)(8) and Section 3(b) above, the Company may decrease a
participant’s payroll deductions during any Purchase Period to zero percent
(0%). Payroll deductions shall re-commence at the rate provided in such
participant’s subscription agreement at the beginning of the first Purchase
Period which is scheduled to end in the following calendar year, unless
terminated by the participant as provided in Section 10.

      

      7. Grant of
Option. On the Offering Date of each Offering Period, each eligible
Employee participating in such Offering Period shall be granted an option to
purchase on each Purchase Date a number of Shares determined by dividing such
Employee’s Contributions accumulated prior to such Purchase Date and retained in
the participant’s account as of the Purchase Date by the applicable Purchase
Price; provided that such purchase shall be subject to the limitations set forth
in Sections 3(b) and 13, and such purchase may be subject to a limitation on the
maximum number or value of Shares that may be purchased by an Employee that is
established by the Plan Administrator, subject to compliance with applicable
law.

      

      8. Exercise
of Option.
Unless a participant withdraws from the Plan as provided in Section 10, his or
her option will be exercised automatically on each Purchase Date of an Offering
Period, and the maximum number of full Shares subject to the option that are
permitted to be purchased pursuant to the Plan will be purchased at the
applicable Purchase Price with the accumulated Contributions in his or her
account. No fractional Shares may be purchased under the Plan. Any payroll
deductions accumulated in a participant’s account which are not sufficient to
purchase a full Share shall be retained in the participant’s account, without
interest, for the subsequent Purchase Period or Offering Period, subject to
earlier withdrawal by the participant as provided in Section 10 below. The
Shares purchased upon exercise of an option hereunder shall be deemed to be
transferred to the participant on the Purchase Date. During his or her lifetime,
a participant’s option to purchase Shares hereunder is exercisable only by him
or her.

      

      9. Delivery. As promptly as practicable
after each Purchase Date of each Offering Period, the Company shall arrange the
delivery to each participant, as appropriate, of the Shares purchased upon
exercise of his or her option.

      

      10. Voluntary
Withdrawal; Termination of Employment.

      

      (a) A
participant may withdraw all but not less than all of the Contributions credited
to his or her account under the Plan prior to any Purchase Date by giving
written notice to the Company on or prior to the deadline date before the end of
the Purchase Period specified by the Company. Upon any such election to
withdraw, all of the participant’s Contributions credited to his or her account
will be paid to him or her promptly after receipt of his or her notice of
withdrawal, his or her option for the current period will be automatically
terminated, and no further Contributions for the purchase of Shares will be made
during the Offering Period.

      

      (b) Upon
termination of the participant’s Continuous Status as an Employee for any
reason, including retirement or death, the Contributions credited to his or her
account will be returned to him or her or, in the case of his or her death, to
the executor or administrator of the estate of the participant, or if no such
executor or administrator has been appointed (to the knowledge of the Company),
the Company, in its discretion, may deliver such Contributions to such other
person as the Company may determine.

      

      (c) In
the event an Employee fails to remain in Continuous Status as an Employee for at
least twenty (20) hours per week during the Offering Period in which the
Employee is a participant, he or she will be deemed to have elected to withdraw
from the Plan and the Contributions credited to his or her account will be
returned to him or her and his or her option terminated.

      

      (d) A
participant’s withdrawal from an Offering Period will not have any effect upon
his or her eligibility to participate in a succeeding Offering Period or in any
similar plan which may hereafter be adopted by the Company.

      

      11. Automatic
Withdrawal. If
the Fair Market Value of the Shares on any Purchase Date of an Offering Period
is less than the Fair Market Value of the Shares on the Offering Date for such
Offering Period, then every participant shall automatically (i) be withdrawn
from such Offering Period at the close of such Purchase Date and after the
acquisition of Shares for such Purchase Period, and (ii) be enrolled in the
Offering Period commencing on the first trading day subsequent to such Purchase
Period.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      12. Interest. No interest shall accrue on
the Contributions of a participant in the Plan.

      

      13. Share
Reserve.

      

      (a)
Subject to adjustment as provided in Section 18, the maximum number of Shares
which shall be made available for sale under the Plan shall be five-hundred
thousand (500,000) Shares. Such Shares shall be authorized but unissued Shares
or treasury Shares. If the Plan Administrator determines that, on a given
Purchase Date, the number of Shares with respect to which options are to be
exercised may exceed (i) the number of Shares that were available for sale under
the Plan on the Offering Date of the applicable Offering Period, or (ii) the
number of Shares available for sale under the Plan on such Purchase Date, the
Plan Administrator may in its sole discretion provide that the Company shall
make a pro rata allocation of the Shares available for purchase on such Offering
Date or Purchase Date, as applicable, in as uniform a manner as shall be
practicable and as it shall determine in its sole discretion to be equitable
among all participants exercising options to purchase Shares on such Purchase
Date, and the Company shall (x) continue all Offering Periods then in effect, or
(y) terminate any or all Offering Periods then in effect pursuant to Section 19
below. The Company may make pro rata allocation of the Shares available on the
Offering Date of any applicable Offering Period pursuant to the preceding
sentence, notwithstanding any authorization of additional Shares for issuance
under the Plan by the Company’s stockholders subsequent to such Offering
Date.

      

      (b) The
participant shall have no interest or voting right in Shares covered by his or
her option until such option has been exercised.

      

      (c)
Shares to be delivered to a participant under the Plan will be registered in the
name of the participant or in the name of the participant and his or her
spouse.

      

      14. Administration. The Plan shall be
supervised and administered by the Plan Administrator. The Plan Administrator
shall have full authority to administer the Plan, including authority to
interpret and construe any provision of the Plan, and to adopt such rules and
regulations not inconsistent with the Plan for administering the Plan as it may
deem necessary in order to comply with the requirements of Code Section 423.
Decisions of the Plan Administrator shall be final and binding on all parties
who have an interest in the Plan.

      

      15. Transferability. Neither Contributions
credited to a participant’s account nor any rights with regard to the exercise
of an option or to receive Shares under the Plan may be assigned, transferred,
pledged, or otherwise disposed of in any way (other than by will, or the laws of
descent and distribution) by the participant. Any such attempt at assignment,
transfer, pledge, or other disposition shall be void and without any effect,
except that the Company may treat such act as an election to withdraw funds in
accordance with Section 10.

      

      16. Use of
Funds. All
Contributions received or held by the Company under the Plan may be used by the
Company for any corporate purpose, and the Company shall not be obligated to
segregate such Contributions.

      

      17. Reports. Individual accounts will be
maintained for each participant in the Plan. Statements of account will be given
to participating Employees at least annually, which statements will set forth
the amounts of Contributions, the per Share Purchase Price, the number of Shares
purchased, and the remaining cash balance, if any.

      

      18. Adjustments
Upon Changes in Capitalization; Corporate Transactions.

      

      (a) Adjustment. Subject to any required
action by the stockholders of the Company, the number of Shares covered by each
option under the Plan which has not yet been exercised and the number of Shares
which have been authorized for issuance under the Plan but have not yet been
placed under option, as well as the maximum number of Shares which may be
purchased by a participant in a Purchase Period specified pursuant to Section 7
above, and the price per Share covered by each option under the Plan which has
not yet been exercised, shall be proportionately adjusted for any increase or
decrease in the number of issued Shares resulting from a stock split, reverse
stock split, stock dividend, combination, consolidation, recapitalization
(including a recapitalization through a large nonrecurring cash dividend) or
reclassification of the Shares (including any such change in the number of
Shares effected in connection with a change in domicile of the Company),
subdivision of the Shares, a rights offering, a reorganization, merger,
spin-off, split-up, change in corporate structure or other similar occurrence,
or any other increase or decrease in the number of Shares effected without
receipt of consideration by the Company; provided however that conversion of any
convertible securities of the Company shall not be deemed to have been “effected
without receipt of consideration.” Such adjustment shall be made by the Plan
Administrator, whose determination in that respect shall be final, binding and
conclusive. Except as expressly provided herein, no issue by the Company of
shares of stock of any class, or securities convertible into shares of stock of
any class, shall affect, and no adjustment by reason thereof shall be made with
respect to, the number or price of Shares subject to the Plan or any
option.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (b) Corporate
Transactions. In
the event of a dissolution or liquidation of the Company, any Purchase Period
and Offering Period then in progress will terminate immediately prior to the
consummation of such action, unless otherwise provided by the Plan
Administrator. In the event of a Corporate Transaction, each option outstanding
under the Plan shall be assumed or an equivalent option shall be substituted by
the successor corporation or a parent or subsidiary of such successor
corporation. In the event that the successor corporation refuses to assume or
substitute outstanding options, then all outstanding options under the Plan
shall automatically be exercised immediately prior to the consummation of such
action by applying all sums previously collected from participants during the
Purchase Period of such transaction to the purchase of whole Shares, subject,
however, to all other applicable provisions of the Plan, including the limits of
Section 3(b). For purposes of this Section 18, an option shall be deemed to be
assumed, without limitation, if, at the time of issuance of the stock or other
consideration upon a Corporate Transaction, each holder of an option would be
entitled to receive upon exercise of the option the same number and kind of
shares of stock or the same amount of property, cash or securities as such
holder would have been entitled to receive upon the occurrence of the
transaction if the holder had been, immediately prior to the transaction, the
holder of the number of Shares covered by the option at such time (after giving
effect to any adjustments in the number of Shares covered by the option as
provided for in this Section 18); provided however that if the consideration
received in the transaction is not solely common stock of the successor
corporation or its parent (as defined in Code Section 424(e)), the Plan
Administrator may, with the consent of the successor corporation, provide for
the consideration to be received upon exercise of the option to be solely common
stock of the successor corporation or its parent equal in Fair Market Value to
the per Share consideration received by holders of Common Stock in the
transaction.

      

      (c) Acquisitions
and Dispositions.  The Plan Administrator may, in its sole and
absolute discretion and in accordance with principles under Code Section 423,
create special purchase periods for individuals who become Employees solely in
connection with the acquisition of another company or business by merger,
reorganization or purchase of assets and may provide for special purchase dates
for participants who will cease to be Employees solely in connection with the
disposition of all or a portion of any Designated Subsidiary or a portion of the
Company, which purchase periods and purchase rights granted pursuant thereto
shall, notwithstanding anything stated herein, be subject to such terms and
conditions as the Plan Administrator considers appropriate in the
circumstances.

      

      
        19.
Amendment
or Termination.

      

      

      (a) The
Board may at any time and for any reason terminate or amend the Plan. Except as
provided in Section 18, no such termination of the Plan may affect options
previously granted, provided that the Plan or an Offering Period may be
terminated by the Board on a Purchase Date or by the Board’s setting a new
Purchase Date with respect to an Offering Period and Purchase Period then in
progress if the Board determines that termination of the Plan and/or the
Offering Period is in the best interests of the Company and the stockholders.
Except as provided in Section 18 and in this Section 19, no amendment to the
Plan shall make any change in any option previously granted which adversely
affects the rights of any participant. In addition, to the extent necessary to
comply with any applicable law, rule or regulation, the Company shall obtain
stockholder approval in such a manner and to such a degree as so
required.

      

      (b) For
purposes of clarity, without stockholder consent and without regard to whether
any participant rights may be considered to have been adversely affected, the
Plan Administrator may change the Offering Periods and Purchase Periods, limit
the frequency and/or number of changes in the amount of payroll deductions that
may be withheld during an Offering Period or Purchase Period, establish the
exchange ratio applicable to amounts withheld in a currency other than U.S.
dollars, permit payroll withholding in excess of the amount designated by a
participant in order to adjust for delays or mistakes in the Company’s
processing of properly completed withholding elections, establish reasonable
waiting and adjustment periods and/or accounting and crediting procedures to
ensure that amounts applied toward the purchase of Shares for each participant
properly correspond with amounts withheld from the participant’s Compensation,
and establish such other limitations or procedures as the Plan Administrator
determines in its sole discretion advisable which are consistent with the
Plan.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      20. Notices. All notices or other
communications by a participant to the Company under or in connection with the
Plan shall be deemed to have been duly given when received in the form specified
by the Company at the location, or by the person, designated by the Company for
the receipt thereof. Notwithstanding anything to the contrary contained in the
Plan, to the extent permitted by applicable law, the Company or a third party
designated by the Company may provide copies of the Plan and any related Plan
documentation (including subscription and other documents related to
participation in the Plan) to Employees by electronic delivery or other
paperless technology and, if permitted by the Company, eligible Employee may
submit any subscription agreement or any other Plan related documents or make
Plan-related decisions electronically or via other paperless technology in
accordance with such procedures as may be established by the Company from time
to time.

      

      21. Conditions
Upon Issuance of Shares. Shares shall not be issued
with respect to an option unless the exercise of such option and the issuance
and delivery of such Shares pursuant thereto shall comply with all applicable
laws, rules and regulations, domestic or foreign, including, without limitation,
the Securities Act of 1933, as amended, the Exchange Act, the rules and
regulations promulgated thereunder, applicable state securities laws and the
requirements of any stock exchange upon which the Shares may then be listed, and
shall be further subject to the approval of counsel for the Company with respect
to such compliance.

      

      As a
condition to the exercise of an option, the Company may require the person
exercising such option to represent and warrant at the time of any such exercise
that the Shares are being purchased only for investment and without any present
intention to sell or distribute such Shares if, in the opinion of counsel for
the Company, such a representation is required by any of the aforementioned
applicable provisions of law.

      

      22. Term of
Plan; Effective Date. The Plan shall become
effective upon its approval by the Company’s stockholders. It shall continue in
effect to May 31, 2018 unless sooner terminated under Section 19.

      

      23. General
Provisions

      

      (a) All
costs and expenses incurred in the administration of the Plan shall be paid by
the Company.

      

      (b)
Neither the action of the Company in establishing the Plan, nor any action taken
under the Plan by the Board or the Plan Administrator, nor any provision of the
Plan itself shall be construed so as to grant any person the right to remain in
the employ of the Company or any of its Designated Subsidiaries for any period
of specific duration, and such person’s employment may be terminated at any
time, with or without cause.

      

      (c) The
provisions of the Plan shall be governed by the laws of the State of
Texas.

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