Document:

English Translation of Chinese Version

                    Equity Acquisition Cooperation Agreement

THIS  COOPERATION  AGREEMENT  ("Agreement")  was  entered  into by and among the
following parties in Qingdao City, China on July 24, 2007:

Party A: CHEN KAI, holder of American passport No.: 426088122

Party B: ZHONGSEN INTERNATIONAL COMPANY GROUP LIMITED

           Registered Address: Suite 1401, 14/F World Commerce Center, Haiguang,
                               No. 7-11, Guangdong Road, Tsim Sha Tsui,
                               Kowloon, Hong Kong
           Current Director: CHEN KAI, holder of American passport No.:426088122

Party C:  SENTAIDA GROUP CO., LTD.

           Registered Address: No. 177, Chengyang Section, 308 National Road,
                               Chengyang District, Qingdao
           Legal Representative: QIN LONG
           Title: Chairman of Board of Directors
           Nationality: Chinese

Party D:
            LI Xiuqin, holder of PRC Identity Card No.: 370624650722508
            LIANG Junfeng, holder of PRC Identity Card No.: 370921196007022416
            JI Gongsheng, holder of PRC Identity Card No.: 3702202196512203034
            LI Zhenyu, holder of PRC Identity Card No.: 370202510415043
            LIANG Junbao, holder of PRC Identity Card No.: 370921196301270111

WHEREAS

1.       Party B, ZHONGSEN  INTERNATIONAL  COMPANY GROUP  LIMITED,  is a limited
         liability  company validly  existing and duly established by Party A to
         this  Agreement,  CHEN  KAI in  Hong  Kong  according  to  the  Company
         Ordinance  of Hong Kong,  with its  registered  address at Suite  1401,
         14/F, World Commerce Center,  Haiguang,  No. 7-11, Guangdong Road, Tsim
         Sha Tsui,  Kowloon,  Hong Kong and its  current  director  is CHEN KAI,
         holder of American passport No.: 426088122;

2.       Qingdao  Sentaida  Tyre Co., Ltd. is a limited  liability  company duly
         established  and validly  existing  in Qingdao  under the law of China,
         with its  registered  address at No. 177, 308 National  Road,  Majiatai
         Village,  Xiazhuang  Street,  Chengyang  District,   Qiangdao  and  its
         registered  capital is RMB 10,000,000 and its legal  representative  is
         LIANG  Junfeng.  Its  shareholders  are  Party  C and  Party  D and its
         shareholding  structure is as follows:  Sentaida  Group Co.,  Ltd.,  LI
         Xiuqin,  LIANG Junfeng, JI Gongsheng,  LI Zhenyu and LIANG Junbao holds

<PAGE>

         51%, 37.24%,  3.92%,  3.92%, 1.96% and 1.96% of the equity interests in
         Qingdao Sentaida Tyre Co., Ltd., respectively.

         Qingdao Free Trade Zone  Sentaida  International  Trade Co.,  Ltd. is a
         limited  liability  company duly  established  and validly  existing in
         Qingdao under the law of China, with its registered address at No. 201,
         Ancillary  House (North),  Huifa Storage  Building,  Qingdao Free Trade
         Zone  and its  registered  capital  is RMB  15,000,000  and  its  legal
         representative  is QIN Long. Its  shareholders  are Party C and Party D
         and its shareholding structure is as follows: Sentaida Group Co., Ltd.,
         LI Xiuqin,  LIANG  Junfeng,  JI  Gongsheng,  LI Zhenyu and LIANG Junbao
         holds  51%,  37.24%,  3.92%,  3.92%,  1.96%  and  1.96%  of the  equity
         interests in Qingdao Sentaida Tyre Co., Ltd., respectively.

         Qingdao  Sentaida  Tyre Co.,  Ltd. and Qingdao Free Trade Zone Sentaida
         International Trade Co., Ltd. are hereinafter  collectively referred to
         as the "Target Company".

3.       Party A intends to acquire, through Party B as the acquiring party, all
         equity interests of the Target Company held by Party C and Party D.

         NOW,  THEREFORE,  after  friendly  consultation,   in  regards  to  the
         acquisition of the equity  interests and the consequent  development of
         the Target  Company,  Party A, Party B, Party C and Party D have agreed
         as follows for mutual abidance:

1.       Equity Interests Acquisition

1.1      Party C and Party D intend to transfer all the equity  interests  which
         they have held in the Target Company.

1.2      Party A agrees to acquire,  through Party B as the acquiring party, all
         the equity  interests which Party C and Party D have held in the Target
         Company.

1.3      Party B agrees to acquire  all the equity  interests  which Party C and
         Party D have held in the Target Company.  The  consideration and method
         of payment shall be implemented  according to the  stipulations by this
         Agreement.

2.       Considerations

2.1      All Parties confirm to engage an independent third party appraisal firm
         recognized by all Parties to evaluate the assets of the Target  Company
         according to the principles of legitimacy, fairness and reasonableness.
         All Parties shall define the  consideration for the equity interests to
         be transferred ("Consideration") based on the evaluation results of the
         appraisal firm.

2.2      All Parties  agree the  benchmark  date for the  evaluation is June 30,
         2007,  and  the  evaluation  scope  includes  all  assets,  rights  and
         interests of the Target Company so as to define their values.

3.       Payment of Consideration

<PAGE>

3.1      Party B shall pay the Consideration to Party C and Party D within three
         months after Party B having  concluded  the equity  interests  transfer
         agreements  with  Party C and  Party D,  individually,  and the  Target
         Company having  completed the  industrial  and  commercial  alternation
         registration for the change of equity interests.

3.2      Party B shall pay the Consideration in US Dollars in cash.

4.       Development  of Target  Company after  Completion  of Equity  Interests
         Acquisition

4.1      The current  managements  of the Target Company shall be kept unchanged
         and stable for long term. The current managements of the Target Company
         shall conduct activities  according to the tasks and aims worked out by
         the new Board of Directors.

4.2      The name and residence of the Target  Company  shall be kept  unchanged
         and the operation and  development  of the Target Company shall be kept
         stable.

4.3      After  completion  of the  acquisition,  the  Target  Company  shall be
         transformed into a wholly foreign owned enterprise. Party A and Party B
         warrant to provide  capital  support to the  development  of the Target
         Company.

4.4      In  the  event  that  Party  A,  through  Party  B or  other  companies
         controlled by Party A, has made the Target Company listed  overseas for
         raising  capital,  Party A warrants to implement stock incentive to the
         management of the Target Company with the  coordination of Party B. The
         total amount of the stocks  involved by the stock  incentive plan shall
         be no less than 75% of the total capital stock of the listing  company.
         The Board of Directors of the Target Company shall be  responsible  for
         implementing the stock incentive plan.

5.       Miscellaneous

5.1      All Parties  warrant to keep all the contents of this  transaction  and
         all  trade  secret  obtained  from  the  other  Party  because  of this
         transaction confidential.  Without written consents of the other Party,
         either Party may not disclose the aforesaid confidential information to
         any third parties, otherwise, it shall bear the liability for breach of
         contract and compensate losses.

5.2      After  conclusion of this Agreement,  both Parties shall cooperate with
         good faith.  Party C and Party D may not contact or negotiate  with any
         third  parties by any means or conclude any legal  documents  regarding
         the  reorganization  of the equity  interests  and assets of the Target
         Company,  otherwise,  they  shall be deemed to  constitute  a breach of
         contract  and  compensate  all losses which Party B has suffered due to
         such breach.

5.3      The  interpretation  and  implementation  of this  Agreement  shall  be
         governed by the laws of the  People's  Republic of China.  The people's
         court at the  place  where  this  Agreement  is  concluded  shall  have
         jurisdictions over the disputes arising from this Agreement.

5.4      The cooperation  agreement reached by all Parties to this Agreement for
         realizing  the  reorganization  of the equity  interests  of the Target

<PAGE>

         Company and the specific transactions shall be implemented according to
         the  agreements  reached by all Parties to this  Agreement at that time
         according to the principles of this Agreement.

5.5      This Agreement is made in seven  original  sets.  Each Party shall hold
         one original set which shall have the same legal binding effect.

5.6      This Agreement  shall take into effect upon signature by the authorized
         representatives of each Party.

Party A:  CHEN KAI (Signature)

Party B:  ZHONGSEN INTERNATIONAL COMPANY GROUP LIMITED

           Authorized Representative (Signature):

Party C:  SENTAIDA GROUP CO., LTD.

           Authorized Representative (Signature):

Party D:
           LI Xiuqin (Signature):
           LIANG Junfeng (Signature):
           JI Gongsheng (Signature):
           LI Zhenyu (Signature):
           LIANG Junbao (Signature):ex107.htm

    Exhibit
10.7

    

    

    AULTRA
GOLD, INC.

    

    2008
INCENTIVE STOCK OPTION PLAN

    

    1.  
Purposes of
the Plan.

    

    The
purposes of this Plan are to (i) attract and retain the best available personnel
for positions of responsibility within Aultra Gold, Inc. (the “Company”), (ii)
provide additional incentives to Employees of the Company, (iii) provide
Directors, Consultants and Advisors of the Company with an opportunity to
acquire a proprietary interest in the Company to encourage their continued
provision of services to the Company, and to provide such persons with
incentives and rewards for superior performance more directly linked to the
profitability of the Company's business and increases in shareholder value, and
(iv) generally to promote the success of the Company's business and the
interests of the Company and all of its stockholders, through the grant of
options to purchase shares of the Company's Common Stock and other
incentives.

    

    Incentive
benefits granted hereunder may be either Incentive Stock Options, Non-qualified
Stock Options, stock awards, Restricted Shares or cash awards, as such terms are
hereinafter defined. The types of options or other incentives granted shall be
reflected in the terms of written agreements.

    

    2.  
Definitions.

    

    As used
herein, the following definitions shall apply:

    

    2.1   “ Board ” shall mean the Board of Directors of
Aultra Gold, Inc.

    

    2.2   “Change of
Control” means a change in
ownership or control of the Company effected through either of the following
transactions:

    

    (a)   the direct or indirect acquisition by
any person or related group of persons (other than by the Company or a person
that directly or indirectly controls, is controlled by, or is under common
control with, the Company) of beneficial ownership (within the meaning of Rule
13d-3 of the Exchange Act) of securities possessing more than 50% of the total
combined voting power of the Company's outstanding securities pursuant to a
tender or exchange offer made directly to the Company's shareholders, or other
transaction, in each case which the Board does not recommend such shareholders
to accept; or

     

    (b)  
a change in the composition of
the Board over a period of 24 consecutive months or less such that a majority of
the Board members (rounded up to the next whole number) ceases, by reason of one
or more contested elections for Board membership, to be comprised of individuals
who either (i) have been Board members continuously since the beginning of such
period or (ii) have been elected or nominated for election as Board members
during such period by at least a majority of the Board members described in
clause (i) who were still in office at the time such election or nomination was
approved by the Board; or

     

    
       

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      

    

    (c)   a Corporate Transaction as defined
below.

    

    2.3   “Code” shall mean the Internal Revenue Code
of 1986, as amended from time to time, and the rules and regulations promulgated
thereunder.

    

    2.4   “Committee” shall mean the Committee constituting
the Board in accordance with Section 4.1 of the Plan, if one is
appointed.

    

    2.5   “Common
Stock” or “Common
Shares” shall mean (i)
shares of the Common Stock, no par value, of the Company described in the
Company's Articles of Incorporation, as amended, and (ii) any security into
which Common Shares may be converted by reason of any transaction or event of
the type referred to in Section 12 of this Plan.

    

    2.6   “Company ” shall mean Aultra Gold, Inc., a
Nevada corporation, and shall include any parent or subsidiary corporation of
the Company as defined in Sections 424(e) and (f), respectively, of the
Code.

    

    2.7   “Consultants” and “Advisors” shall include any third party
retained or engaged by the Company to provide service to the Company, including
any employee of such third party providing such services.

    

    2.8   “Corporate
Transaction” means any of
the following shareholder-approved transactions to which the Company is a
party:

    

    (a)   a merger or consolidation in which the
Company is not the surviving entity, except for a transaction the principal
purpose of which is to change the state in which the Company is
incorporated;

    

    (b)   the sale, transfer or other disposition
of all or substantially all of the assets of the Company in complete liquidation
or dissolution of the Company; or

    

    (c)   any reverse merger in which the Company
is the surviving entity but in which securities possessing more than 50% of the
total combined voting power of the Company's outstanding securities are
transferred to a person or persons different from the persons holding those
securities immediately prior to such merger.

    

    2.9  
“Date of
Grant” means the date
specified by the Board or the Committee on which a grant of Options, Stock
Appreciation Rights, Performance Shares of Performance Units or a grant or sale
of Restricted Shares or Deferred Shares shall become
effective.

    

    2.10   “Deferral
Period” means the period
of time during which Deferred Shares are subject to deferral limitations under
Section 9.3 of this Plan.

    

    2.11   “Deferred
Shares” means an award
pursuant to Section 9 of this Plan of the right to receive Common Shares at the
end of a specified Deferral Period.

    

    2.12   “Director” shall mean a member of the
Board.

    

    2.13   “Effective
Date” shall have the
meaning ascribed thereto in Section 6.

    

    2.14   “Employee” shall mean any person, including
officers and directors, employed by the Company. The payment of a director's fee
by the Company shall not be sufficient to constitute “employment” by the
Company.

    

    2.15   “Exchange
Act” shall mean the
Securities Exchange Act of 1934, as amended.

    

    2.16   “Fair Market
Value” shall mean, with
respect to the date a given Option is granted or exercised, the value of the
Common Stock determined by the Board in such manner as it may deem equitable for
Plan purposes but, in the case of an Incentive Stock Option, no less than is
required by applicable laws or regulations; provided, however,
that where there is a
public market for the Common Stock, the fair Market Value per share shall be the
average of the bid and asked prices of the Common Stock on the Date of Grant, as
reported in the Wall Street
Journal (or, if not so
reported, as otherwise reported by the National Association of Securities
Dealers Automated Quotation System - Small Cap or National Markets or the
National Association of Security Dealers Over the Counter Bulletin
Board).

    

    2.17   “Incentive
Agreement” shall mean the
written agreement between the Company and the Participant relating to Incentive
Stock Options, Non-qualified Stock Options, stock awards, Restricted Shares and
cash awards granted under the Plan, and shall include an Incentive Stock Option
Agreement, Non-qualified Stock Option Agreement or other form of Agreement which
may be approved by the Board.

    

    2.18   “Incentive
Award” shall mean the
award of one or more Incentives.

    

    2.19   “Incentive Stock
Option” shall mean an
Option which is intended to qualify as an incentive stock option within the
meaning of Section 422 of the Code, or any successor provision
thereto.

     

    2.20  
“Incentives” shall mean those incentive benefits
which may be granted from time to time under the terms of the Plan which include
Incentive Stock Options, Non-qualified Stock Options, stock awards, Restricted
Shares and cash awards.

    

    2.21   “Management
Objectives” means the
achievement of performance objectives established pursuant to this Plan for
Participants who have received grants of Performance Shares of Performance Units
or, when so determined by the Board of the Committee, Restricted
Shares.

    

    2.22   “Non-qualified Stock
Option” means an Option
that is not intended to qualify as a Tax-Qualified Option.

    

    2.23   “Option
Price” means the purchase
price payable upon the exercise of an Option.

    

    2.24   “Option” means the right to purchase Common
Shares from the Company upon the exercise of a Non-qualified Stock Option or a
Tax-Qualified Option granted pursuant to Section 7 of this
Plan.

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
 

    2.25   “Optioned
Stock” shall mean the
Common Stock subject to an Option.

    

    2.26   “Option
Term” shall have the
meaning ascribed to it in Section 7.3.

    

    2.27   “Optionee” shall mean an Employee, Director,
Consultant or Advisor of the Company who has been granted one or more
Options.

    

    2.28   “Parent” shall mean a “parent corporation”,
whether now or hereafter existing, as defined in Section 424(e) of the
Code.

    

    2.29   “Participant” means a person who is selected by the
Board or a Committee to receive benefits under this Plan and (i) is at that time
an officer, including without limitation an officer who may also be a member of
the Board, director, or other employee of, or a Consultant or Advisor, to the
Company, or (ii) has agreed to commence serving in any such
capacity.

    

    2.30   “Performance
Period” means, in respect
of a Performance Share or Performance Unit, a period of time established
pursuant to Section 10 of this Plan within which the Management objectives
relating thereto are to be achieved.

    

    2.31   “Performance
Share” means a bookkeeping
entry that records the equivalent of one Common Share awarded pursuant to
Section 10 of this Plan.

    

    2.32   “Performance
Unit” means a bookkeeping
entry that records a unit equivalent to $1.00 awarded pursuant to Section 10 of
this Plan.

    

    2.33  
“Plan” shall mean this 2008 Incentive Stock
Option Plan, as amended from time to time in accordance with the terms
hereof.

    

    2.34   “Restricted
Shares” means Common
Shares granted or sold pursuant to section 8 of this Plan as to which neither
the substantial risk of forfeiture nor the restrictions on transfer referred to
in Section 8.9 hereof has expired.

    

    2.35   “Rule
16b-3” means Rule 16b-3,
as promulgated and amended from time to time by the Securities and Exchange
Commission under the Exchange Act, or any successor rule to the same
effect.

    

    2.36   “Share” shall mean a share of the Common
Stock, as adjusted in accordance with Section 11 of the
Plan.

    

    2.37   “Subsidiary” shall mean a “subsidiary
corporation,” whether now or hereafter existing, as defined in Section 424(f) of
the Code.

    

    2.38   “Tax Date” shall mean the date an Optionee is
required to pay the Company an amount with respect to tax withholding
obligations in connection with the exercise of an option.

    

    2.39   “Tax-Qualified
Option” means an Option
that is intended to qualify under particular provisions of the Code, including
without limitation an Incentive Stock Option.

    

    2.40   “Termination
Date” shall have the
meaning ascribed thereto in Section 6.

    

    2.41   “Vesting Rights”
vesting of the options
granted by the Company occurs at the discretion of the Board and unless
otherwise stated will be come fully vested at the end of thirty-six
months  as follows: 10% at the end of six months, an additional 10% at
the end of twelve months, an additional 15% at the end of eighteen months, an
additional 15% at the end of twenty four months, an additional 25% at the end of
thirty months and finally an additional 25% at the end of thirty-six months in
the absence of a specific Board Resolution, and the stock options granted under
the stock option plan are generally non transferable other than to a legal or
beneficial holder of the options upon the option holder’s death. The rights to
vested but unexercised options cease to be effective: (1) 18 months after death
of the stock options holder; (2) 6 months after Change of Control of the
Company; 12 months after loss of office due to health related incapacity or
redundancy; or (5) 12 months after the retirement of the options holder from a
position with any subsidiary of the Company.

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
 

    3.  
Common Stock
Subject to the Plan.

    

    Subject
to the provisions of Section 11 of the Plan, the maximum aggregate number of
shares which may be optioned and sold or otherwise awarded under the Plan is Ten
Million (10,000,000 ) Common Shares. Any Common Shares available for grants and
awards at the end of any calendar year shall be carried over and shall be
available for grants and awards in the subsequent calendar year. For the
purposes of this Section 3:

    

    3.1  
Upon payment in cash of the
benefit provided by any award granted under this Plan, or upon expiration or
cancellation of any award granted under this Plan, any Common Shares that were
covered by such award shall again be available for issuance or transfer
hereunder.

    

    3.2   Common Shares covered by any award
granted under this Plan shall be deemed to have been issued or transferred, and
shall cease to be available for future issuance or transfer in respect of any
other award granted hereunder, at the earlier of the time when they are actually
issued or transferred or the time when dividends or dividend equivalents are
paid thereon; provided, however,
that Restricted Shares
shall be deemed to have been issued or transferred at the earlier of the time
when they cease to be subject to a substantial risk of forfeiture or the time
when dividends are paid thereon.

    

    3.3   Performance Units that are granted
under this Plan and are paid in Common Shares or are not earned by the
Participant at the end of the Performance Period shall be available for future
grants of Performance Units hereunder.

    

    4.  
Administration
of the Plan.

    

    4.1   Procedure.

    

    (a)   The Board shall administer the Plan;
provided, however, that the Board may appoint a Committee consisting solely of
two (2) or more “Non-Employee Directors” to administer the Plan on behalf of the
Board, in accordance with Rule 16b-3.

    

    (b)   Once appointed, the Committee shall
continue to serve until otherwise directed by the Board. From time to time the
Board may increase the size of the Committee and appoint additional members
thereof, remove members (with or without cause), appoint new members in
substitution therefor, and fill vacancies however caused; provided, however, that at no time may any person serve
on the Committee if that person's membership would cause the committee not to
satisfy the requirements of Rule 16b-3.

    

    (c)   A majority of the Committee shall
constitute a quorum, and the acts of the members of the Committee who are
present at any meeting thereof at which a quorum is present, or acts unanimously
approved by the members of the Committee in writing, shall be the acts of the
Committee.

    

    (d)   Any reference herein to
the Board shall, where appropriate, encompass a Committee appointed to
administer the Plan in accordance with this Section 4.

    

    

    4.2   Power of the Board
or the Committee

    

    (a)   Subject to the provisions of the Plan,
the Board shall have the authority, in its discretion: (i) to grant Options or
Incentive Awards to Participants; (ii) to determine, upon review of relevant
information and in accordance with Section 2.16 of the Plan, the Fair Market
Value of the Common stock; (iii) to determine the exercise price per share of
Options to be granted, which exercise price shall be determined in accordance
with Section 7.14 of the Plan, and the Vesting Rights pertaining to the Options
so granted; (iv) to determine the number of Common Shares to be represented by
each Option or Incentive Award; (v) to determine the Participants to whom, and
the time or times at which, Options and Incentive Awards shall be granted; (vi)
to interpret the Plan; (vii) to prescribe, amend and rescind rules and
regulations relating to the Plan; (viii) to determine the terms and provisions
of each Option and Incentive Award granted (which need not be identical) and,
with the consent of the grantee thereof, modify or amend such Option or
Incentive Award; (ix) to accelerate or defer (with the consent of the grantee)
the exercise date of any Option or Incentive Award; (x) to authorize any person
to execute on behalf of the Company any instrument required to effectuate the
grant of an Option or Incentive Award previously granted by the Board; (xi) to
accept or reject the election made by a grantee pursuant to Section 7.5 of the
Plan; and (xii) to make all other determinations deemed necessary or advisable
for the administration of the Plan.

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    
 

    (b)  
The Board or a Committee may
delegate to an officer of the Company the authority to make decisions pursuant
to this Plan, provided that no such delegation may be made that would cause any
award or other transaction under the Plan to cease to be exempt from Section
16(b) of the Exchange Act. A Committee may authorize any one or more of its
members or any officer of the Company to execute and deliver documents on behalf
of the Committee.

    

    4.3   Effect of Board or
Committee Decisions. All
decisions and determinations and the interpretation and construction by the
Board or a Committee of any provision of this Plan or any agreement,
notification or document evidencing the grant of Options, Restricted Shares,
Deferred Shares, Performance Shares or Performance Units, and any determination
by the Board or a Committee pursuant to any provision of this plan or any such
agreement, notification or document, shall be final, binding and conclusive with
respect to all grantees and any other holders of any Option or Incentive Award
granted under the Plan. No member of the Board or a Committee shall be liable
for any such action taken or determination made in good
faith.

    

    5.  
Eligibility.

    

    Consistent
with the Plan's purposes, Options and Incentive Awards may be granted only to
such Directors, Officers, Employees, Consultants and Advisors of the Company as
determined by the Board or a Committee. Subject to the terms of the Plan, an
Employee, Officer, Director, Consultant or advisor who has been granted an
Option or Incentive Award may, if he is otherwise eligible, be granted an
additional Option or Incentive Award. Incentive Stock Options may be granted
only to those Participants who meet the requirements applicable under Section
422 of the Code.

    

    6.  
Board
Approval; Effective Date; Termination Date.

    

    The Plan
shall take effect on May  6, 2008 (the “Effective Date”), the date on
which the Board approved the Plan. The Plan shall terminate on May 6, 2018 (the
“Termination Date”); accordingly, no Option may be granted after the Termination
Date or have an Option Term that extends beyond the Termination
Date.

    

    7.  
Stock
Options.

    

    The Board
or the Committee may from time to time authorize grants to Participants of
Options to purchase Common Shares upon such terms and conditions as the Board or
the Committee may determine in accordance with the following
provisions:

    

    7.1   Options to be
Granted; Terms.

    

    (a)   Options granted pursuant to this
Section 7 may be Non-qualified Stock Options or Tax-Qualified Options or
combinations thereof. The Board or the Committee shall determine the specific
terms of Options.

    

    (b)   Each grant shall specify the period or
periods of continuous employment, or continuous engagement of the consulting or
advisory services, of the Optionee by the Company or any Subsidiary that are
necessary before the Options or installments thereof shall become
exercisable.

    

    (c)   Any grant of a Non-qualified Stock
Option may provide for the payment to the Optionee of dividend equivalent
thereon in cash or Common Shares on a current, deferred or contingent basis, or
the Board or the Committee may provide that any dividend equivalents shall be
credited against the Option Price.

    

    7.2   Number of Shares
Subject to Options. Each
grant shall specify the number of Common Shares to which it pertains. Successive
grants may be made to the same Optionee regardless of whether any Options
previously granted to the Optionee remain unexercised.

    

    7.3   Term of Option;
Earlier Termination. Subject to the further provisions of
this Section 7, unless otherwise provided in the Incentive Agreement, the term
(the “Option Term”) of each Option shall be ten (10) years from the Date of
Grant. In no case shall the term of any Option go beyond the Effective Date.
Notwithstanding the above, in the case of an Incentive Stock Option granted to a
Participant who, at the time the Incentive Stock Option is granted, owns ten
percent (10%) or more of the Common Stock as such amount is calculated under
Section 422(b)(6) of the Code (“Ten Percent Stockholder”), the term of the
Incentive Stock Option shall be five (5) years from the Date of Grant thereof or
such shorter time as may be provided in the Incentive
Agreement.

     

     

    
 

    
      
        
        

      

      
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    7.4  
Exercise
Price.

    

    (a)   Each grant shall specify an Option
Price per Common Share for the Common Share to be issued pursuant to exercise of
an Option, which shall be determined by the Board or the Committee, but in the
case of an Incentive Stock Option shall be no less than one hundred percent
(100%) of the Fair Market Value per share on the Date of Grant, and in the case
of a Non-qualified Stock Option shall be no less than seventy-five percent (75%)
of the Fair Market Value per share on the Date of Grant. Notwithstanding the
foregoing, in the case of an Incentive Stock Option granted to a Participant
who, at the time of the grant of such Incentive Stock Option, is a Ten Percent
Stockholder, the per share exercise price shall be no less than one hundred ten
percent (110%) of the Fair Market Value per share on the Date of
Grant.

    

    (b)   With respect to Incentive Stock
Options, the aggregate Fair Market Value (determined as of the respective Date
or Dates of Grant) of the Common Shares for which one or more options granted to
any Optionee under this Plan may for the first time become exercisable as
Incentive Stock Options under the federal tax laws during any one calendar year
(under all employee benefit plans of the Company) shall not exceed $100,000. To
the extent that the Optionee holds two or more such options which become
exercisable for the first time in the same calendar year, the foregoing
limitation on the exercisability of such options as Incentive Stock Options
under the deferral tax laws shall be applied on the basis of the order in which
such options are granted. Should the number of Common Shares for which any
Incentive Stock Option first becomes exercisable in any calendar year exceed the
applicable $100,000 limitation, then that Option may nevertheless be exercised
in such calendar year for the excess number of Shares as a Non-qualified Stock
Option under the federal tax laws.

    

    7.5   Payment for Shares.
The price of an exercised
Option and any taxes attributable to the delivery of Common Stock under the
Plan, or portion thereof, shall be paid as follows:

    

    (a)   Each grant shall specify the form of
consideration to be paid in satisfaction of the Option Price and the manner of
payment of such consideration, which may include (i) cash in the form of United
States currency or check or other cash equivalent acceptable to the Company,
(ii) nonforfeitable, unrestricted Common Shares, which are already owned by the
Optionee and have a value at the time of exercise that is equal to the Option
Price, (iii) any other legal consideration that the Board or the Committee may
deem appropriate, including without limitation any form of consideration
authorized pursuant to this Section 7 on such basis as the Board or the
Committee may determine in accordance with this Plan, and (iv) any combination
of the foregoing. The Board (or Committee) in its sole discretion may permit a
so-called “cashless exercise” of the Options.

    

    In the
event of a cashless exercise of the Option the Company shall issue the Option
holder the number of Shares determined as follows:

    

    X = Y (A-B)/A

    where:

    

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

    

    Y = the
number of Shares with respect to which the Option is being
exercised.

    

    
      	 
      	 
      	
              A =
      the average of the closing sale prices of the Common Stock for the five
      (5) Trading Days immediately prior to (but not including) the Date of
      Exercise.

            

    

    

    B = the
Exercise Price.

    

    (b)   Any grant of a Non-qualified Stock
Option may provide that payment of the Option Price may also be made in whole or
in part in the form of Restricted Shares or other Common Shares that are subject
to risk of forfeiture or restrictions on transfer. Unless otherwise determined
by the Board or the Committee on or after the Date of Grant, whenever any Option
Price is paid in whole or in part by means of any of the forms of consideration
specified in this Section 7.5, the Common Shares received by the Optionee upon
the exercise of the Non-qualified Stock Option shall be subject to the same
risks of forfeiture or restrictions on transfer as those that applied to the
consideration surrendered by the Optionee; provided, however,
that such risks of
forfeiture and restrictions on transfer shall apply only to the same number of
Common Shares received by the Optionee as applied to the forfeitable or
restricted Common Shares surrendered by the Optionee.

    

    (c)   Any grant may allow for deferred
payment of the Option Price through a sale and remittance procedure by which a
Participant shall provide concurrent irrevocable written instructions to (i) a
Company-designated brokerage firm to effect the immediate sale of the purchased
Common Shares and remit to the company, out of the sale proceeds available on
the settlement date, sufficient funds to cover the aggregate Option Price
payable for the purchased Common Share, and (ii) the Company to deliver the
certificates for the purchased Common Shares directly to such brokerage firm to
complete the sale transaction.

    

    (d)   The Board or Committee shall determine
acceptable methods for tendering Common Stock as payment upon exercise of an
Option and may impose such limitations and prohibitions on the use of Common
Stock to exercise an Option as it deems appropriate.

    

    7.6   Rights as a
Stockholder. Until the
issuance (as evidenced by the appropriate entry on the books of the Company or
of a duly authorized transfer agent of the Company) of the stock certificate
evidencing such Common Shares, no right to vote or receive dividends or any
other rights as a stockholder shall exist with respect to the Optioned Stock,
notwithstanding the exercise of the Option. No adjustment will be made for a
dividend or the right for which the record date is prior to the date the stock
certificate is issued, except as provided in Section 11 of the
Plan.

     

     

    
      
        
        

      

      
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    7.7  
Loans or
Installment Payments; Bonuses.

    

    (a)   The Board or the Committee may, in its
discretion, assist any Participant in the exercise of one or more awards under
the plan, including the satisfaction of any federal, state, local and foreign
income and employment tax obligations arising therefrom, by (i) authorizing the
extension of a loan from the Company to such Participant; or (ii) permitting the
participant to pay the exercise price or purchase price for the purchased shares
in installments; or (iii) a guaranty by the Company of a loan obtained by the
Optionee from a third party; or (iv) granting a cash bonus to the Participant to
enable the Participant to pay federal, state, local and foreign income and
employment tax obligations arising from an award.

    

    (b)   Any loan or installment method of
payment (including the interest rate and terms of repayment) shall be upon such
terms as the Board or the Committee specifies in the applicable Incentive
Agreement or otherwise deems appropriate under the circumstances. Loans or
installment payments may be authorized with or without security or collateral.
However, the maximum credit available to the Participant may not exceed the
exercise or purchase price of the acquired shares (less the par value of such
shares) plus any federal, state and local income and employment tax liability
incurred by the Participant in connection with the acquisition of such shares.
The amount of any bonus shall be determined by the Board or the Committee in its
sole discretion under the circumstances.

    

    (c)   The Board or the
Committee may, in its absolute discretion, determine that one or more loans
extended under this financial assistance program shall be subject to forgiveness
by the Company in whole or in part upon such terms and conditions as the Board
or the Committee may deem appropriate; provided, however, that the
Board or the Committee shall not forgive that portion of any loan owed to cover
the par value of the Common Shares.

     

    7.8   Exercise of
Option.

    

    (a)   Procedure for
Exercise.

    

    (i)   Any Option granted hereunder shall be
exercisable at such times and under such conditions as determined by the Board,
including performance criteria with respect to the Company and/or the Optionee,
and as shall be permissible under the terms of the Plan. Unless otherwise
determined by the Board at the time of grant, an Option may be exercised in
whole or in part. An Option may not be exercised for a fraction of a
share.

    

    (ii)   An Option shall be deemed to be
exercised when written notice of such exercise has been given to the Company in
accordance with the terms of the Option by the person entitled to exercise the
Option and full payment for the Common Shares with respect to which the Option
is exercised has been received by the Company. Full payment may, as authorized
by the Board, consist of any consideration and method of payment allowable under
Section 7.5 of the Plan.

    

    (iii)
  Exercise of an
Option in any manner shall result in a decrease in the number of Shares which
thereafter may be available, both for purposes of the Plan and for sale under
the Option, by the number of Common Shares as to which the Option is
exercised.

     

     

     

    
      
        
        

      

      
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    (b)   Termination of
Status as an Employee. Unless otherwise provided in an
Incentive Agreement, if an Employee's employment by the Company is terminated,
except if such termination is voluntary or occurs due to retirement with the
consent of the Board or due to death or disability, then the Option, to the
extent not exercised, shall terminate on the date on which the Employee's
employment by the company is terminated. If an Employee's termination is
voluntary or occurs due to retirement with the consent of the Board, then the
Employee may after the date such Employee ceases to be an employee of the
Company, exercise his Option at any time within three (3) months after the date
he ceases to be an Employee of the Company, but only to the extent that he was
entitled to exercise it on the date of such termination. To the extent that he
was not entitled to exercise the Option at the date of such termination, or if
he does not exercise such Option (which he was entitled to exercise) within the
time specified herein, the Option shall terminate. In no event may the period of
exercise in the case of Incentive Stock Options extend more than three (3)
months beyond termination of employment.

    

    (c)   Disability.
Unless otherwise provided
in the Incentive Agreement, notwithstanding the provisions of Section 7.8(b)
above, in the event an Employee is unable to continue his employment with the
Company as a result of his permanent and total disability (as defined in Section
22(e) (3) of the Code), he may exercise his Option at any time within six (6)
months from the date of termination, but only to the extent he was entitled to
exercise it at the date of such termination. To the extent that he was not
entitled to exercise the Option at the date of termination, or if he does not
exercise such Option (which he was entitled to exercise) within the time
specified herein, the Option shall terminate. In no event may the period of
exercise in the case of an Incentive Stock Option extend more than six (6)
months beyond the date the Employee is unable to continue employment due to such
disability.

    

    (d)   Death. Unless otherwise provided in the
Incentive Agreement, if an Optionee dies during the term of the Option and is at
the time of his death an Employee who shall have been in continuous status as an
Employee since the date of Grant of the Option, the Option may be exercised at
any time within six (6) months following the date of death by the Optionee's
estate or by a person who acquired the right to exercise the Option by bequest
or inheritance, but only to the extent that an Optionee was entitled to exercise
the Option on the date of death, or if the Optionee's estate, or person who
acquired the right to exercise the Option by bequest or inheritance, does not
exercise such Option (which he was entitled to exercise) within the time
specified herein, the Option shall terminate. In no event may the period of
exercise in the case of an Incentive Stock Option extent more than six (6)
months beyond the date of the employee's death.

    

    7.9   Option Reissuance.
The Board or the Committee
shall have the authority to effect, at any time and from time to time, with the
consent of the affected Participant, the cancellation of any or all outstanding
Options under this Section 7 and grant in substitution new Options under the
Plan covering the same or a different number of Common Shares but with an
exercise price not less than (i) 75% of the Fair Market Value per share on the
new Date of Grant or (ii) 100% of the Fair Market Value per share in the case of
Incentive Stock Options.

    

    7.10  
Incentive
Stock Options - Disposition of Shares. In the case of an Incentive Stock
Option, a Participant who disposes of Common Shares acquired upon exercise of
such Incentive Stock Option by sale or exchange (i) within two (2) years after
the Date of Grant of the Option, or (ii) within one (1) year after the exercise
of the Option, shall notify the Company of such disposition and the amount
realized upon such disposition.

    

    7.11   Incentive Agreement.
Each grant shall be
evidenced by an agreement, which shall be executed on behalf of the Company by
any officer thereof and delivered to and accepted by the Optionee and shall
contain such terms and provisions as the Board or the Committee may determine
consistent with this Plan.

    

    8.  
Restricted
Shares.

    

    Restricted
Shares are shares of Common Stock which are sold or transferred by the Company
to a Participant at a price which may be below their Fair Market Value, or for
no payment, but subject to restrictions on their sale or other transfer by the
Participant. The transfer of Restricted Shares and the transfer and sale of
Restricted Shares shall be subject to the following terms and
conditions:

    

    8.1   Number of Shares.
The number of Restricted
Shares to be transferred or sold by the Company to a Participant shall be
determined by the Board or Committee, if any.

    

    8.2   Sale Price.
The Board shall determine
the prices, if any, at which Restricted Shares shall be sold to Participant,
which may vary from time to time and among Participants, and which may be below
the Fair Market Value of such shares of Common Stock on the date of
sale.

    

    8.3   Restrictions.
All Restricted Shares
transferred or sold hereunder shall be subject to such restrictions as the Board
may determine, including, without limitation, any or all of the
following:

     

     

     

    
      
        
        

      

      
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    (a)   a prohibition against the sale,
transfer, pledge or other encumbrance of the Restricted Shares, such prohibition
to lapse at such time or times as the Board or the Committee shall determine
(whether in annual or more frequent installments, at the time of the death,
disability or retirement of the holder of such Restricted Shares, or
otherwise);

    

    (b)   a requirement that the holder of
Restricted Shares forfeit or resell back to the Company, at his cost, all or a
part of such Restricted Shares in the event of termination of his employment
during any period in which such Restricted Shares are subject to restrictions;
and

    

     (c)   a prohibition against employment of the
holder of such Restricted Shares by any competitor of the Company or a
subsidiary of the Company, or against such holder's dissemination of any secret
or confidential information belonging to the Company or a subsidiary of the
Company.

    

    8.4   Escrow. In order to enforce the restrictions
imposed by the Board pursuant to Section 8.3 above, the Participant receiving
Restricted Shares shall enter into an agreement with the Company setting forth
the conditions of the grant. Restricted Shares shall be registered in the name
of the Participant and deposited, together with a stock power endorsed in blank,
with the Company.

    

    8.5   End of Restrictions.
Subject to Section 8.3, at
the end of any time period during which the Restricted Shares are subject to
forfeiture and restrictions on transfer, such Restricted Shares will be
delivered, free of all restrictions, to the Participant or to the Participant's
legal representative, beneficiary or heir.

    

    8.6   Stockholder.
Subject to the terms and
conditions of the Plan, each Participant receiving Restricted Shares shall have
all the rights of a stockholder with respect to such shares of stock during any
period which such shares are subject to forfeiture and restrictions on transfer,
including, without limitation, the right to vote such shares. Dividends paid in
cash or property other than Common Stock with respect to the Restricted Shares
shall be paid to the Participant currently.

    

    8.7   Ownership of
Restricted Shares. Each
grant or sale shall constitute an immediate transfer of the ownership of the
Restricted Shares to the Participant in consideration of the performance of
services, entitling such Participant to dividend, voting and other ownership
rights, subject to the “substantial risk of forfeiture” and restrictions on
transfer referred to hereinafter.

    

    8.8   Additional
Consideration. Each grant
or sale may be made without additional consideration from the Participant or in
consideration of a payment by the Participant that is less than the Fair Market
Value per share on the Date of Grant.

    

    

    

    

    8.9   Substantial Risk of
Forfeiture.

    

    (a)   Each grant or sale shall provide that
the Restricted Shares covered thereby shall be subject to a “substantial risk of
forfeiture” within the meaning of Section 83 of the Code for a period to be
determined by the Board or the Committee on the Date of
Grant.

    

    (b)   Each grant or sale shall provide that,
during the period for which substantial risk of forfeiture is to continue; the
transferability of the Restricted Shares shall be prohibited or restricted in
the manner and to the extent prescribed by the Board or the Committee on the
Date or Grant. Such restrictions may include without limitation rights of
repurchase or first refusal in the Company or provisions subjecting the
Restricted Shares to a continuing substantial risk of forfeiture in the hands of
any transferee.

    

    8.10
  Dividends.
Any grant or sale may
require that any or all dividends or other distributions paid on the Restricted
Shares during the period of such restrictions be automatically sequestered and
reinvested on an immediate or deferred basis in additional Common Shares, which
may be subject to the same restrictions as the underlying award or such other
restrictions as the Board of the Committee may
determine.

    

    8.11   Additional Grants.
Successive grants or sales
may be made to the same Participant regardless of whether any Restricted Shares
previously granted or sold to a Participant remain
restricted.

     

     

    
      
        
        

      

      
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    9.  
Deferred
Shares.

    

    The Board
or the Committee may authorize grants or sales of Deferred Shares to
Participants upon such terms and conditions as the Board or the Committee may
determine in accordance with the following provisions:

    

    9.1   Performance
Conditions. Each grant or
sale shall constitute the agreement by the Company to issue or transfer Common
Shares to the Participant in the future in consideration of the performance of
services, subject to the fulfillment during the Deferral Period of such
conditions as the Board or the Committee may specify.

    

    9.2   Additional
Consideration. Each grant
or sale may be made without additional consideration from the Participant or in
consideration of a payment by the participant that is less than the Fair Market
Value per shares on the Date of Grant.

    

    9.3   Deferral Period.
Each grant or sale shall
provide that the Deferred Shares covered thereby shall be subject to a Deferral
Period, which shall be fixed by the Board or the Committee on the Date of
Grant.

    

    9.4   Ownership of Shares.
During the Deferral
Period, the Participant shall not have any right to transfer any rights under
the subject award, shall not have any rights of ownership in the Deferred Shares
and shall not have any right to vote the Deferred Shares, but the Board or the
Committee may on or after the Date of Grant authorize the payment of dividend
equivalents on the Deferred Shares in cash or additional Common Shares on a
current, deferred or contingent basis.

    

    9.5   Additional Grants.
Successive grants or sales
may be made to the same Participant regardless of whether any Deferred Shares
previously granted or sold to a Participant have vested.

    

    9.6   Agreement.
Each grant or sale shall
be evidenced by an agreement, which shall be executed on behalf of the Company
by any officer thereof and delivered to and accepted by the Participant and
shall contain such terms and provisions as the Board or the Committee may
determine consistent with this Plan.

    

    10.  
Performance
Shares and Performance Units.

    

    The Board
or the Committee may authorize grants of Performance Shares and Performance
Units, which shall become payable to the Participant upon the achievement of
specified Management Objectives, upon such terms and conditions as the Board or
the Committee may determine in accordance with the following
provisions:

    

    10.1   Number. Each grant shall specify the number of
Performance Shares or Performance Units to which it pertains, which may be
subject to adjustment to reflect changes in compensation or other
factors.

    

    10.2   Performance Period.
The Performance Period
with respect to each Performance Share or Performance Unit shall be determined
by the Board or the Committee on the Date of Grant.

    

    10.3   Management
Objectives.

    

    (a)   Each grant shall specify the Management
Objectives that are to be achieved by the Participant, which may be described in
terms of Company-wide objectives or objectives that are related to the
performance of the individual Participant or the Subsidiary, division,
department or function within the Company or Subsidiary in which the Participant
is employed or with respect to which the participant provides consulting
services.

    

    (b)   Each grant shall specify in respect of
the specified Management Objectives a minimum acceptable level of achievement
below which no payment will be made and shall set forth a formula for
determining the amount of any payment to be made if performance is at or above
the minimum acceptable level but falls short of full achievement of the
specified Management Objectives.

    

    (c)   The Board or the Committee may adjust
Management Objectives and the related minimum acceptable level of achievement
if, in the sole judgment of the Board or the Committee, events or transactions
have occurred after the Date of Grant that are unrelated to the performance of
the Participant and result in distortion of the Management Objectives or the
related minimum acceptable level of achievement.

     

     

     

    
      
        
        

      

      
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    10.4   Payment.

    

    (a)   Each grant shall specify the time and
manner of payment of Performance Shares or Performance Units that shall have
been earned, and any grant may specify that any such amount may be paid by the
Company in cash, Common Shares or any combination thereof and may either grant
to the Participant or reserve to the Board or the Committee the right to elect
among those alternatives.

    

    (b)  
Any grant of Performance Shares
may specify that the amount payable with respect thereto may not exceed a
maximum specified by the Board or the Committee on the Date of Grant. Any grant
of Performance Units may specify that the amount payable, on the number of
Common Shares issued, with respect thereto may not exceed maximums specified by
the Board or the Committee Shares on the Date of Grant.

    

    10.5   Dividends.
On or after the Date of
Grant of Performance Shares, the Board or the Committee may provide for the
payment to the Participant of dividend equivalents thereon in cash or additional
Common Shares on a current, deferred or contingent basis.

    

    10.6   Additional Grants.
Successive grants may be
made to the same Participant regardless of whether any Performance Shares or
Performance Units granted to any Participant have vested.

    

    10.7   Agreement.
Each grant shall be
evidenced by an agreement, which shall be executed on behalf of the Company by
any officer thereof and delivered to and accepted by the Participant and shall
contain such terms and provisions as the Board or the Committee may determine
consistent with this Plan.

    

    11.  
Adjustments
Upon Changes in Capitalization or Merger.

    

    Subject
to any required action by the stockholders of the Company, the number of shares
of Common Stock covered by each outstanding Option or Incentive Award, and the
number of shares of Common Stock which have been authorized for issuance under
the Plan but as to which no Options nor Incentive Awards have yet been granted
or which have been returned to the Plan upon cancellation or expiration of an
Option or Incentive Award, as well as the price per share of Common Stock
covered by each such outstanding Option or Incentive Award, shall be
proportionately adjusted for any increase or decrease in the number of issued
shares of Common Stock resulting from a stock split, reverse stock split, stock
dividend, combination or reclassification of the Common Stock, or any other
increase or decrease in the number of issued shares of Common Stock 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 Board, whose determination in that respect shall be final, binding
and conclusive. Except as expressly provided herein, no issuance 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 of Common Stock subject to an
Option or Incentive Award.

    

    In the event of the proposed dissolution or liquidation of the
Company, all Options and Incentive Awards will terminate immediately prior to
the consummation of such proposed action unless otherwise provided by the Board.
The Board may, in the exercise of its sole discretion in such instances, declare
that any Option or Incentive Award shall terminate as of a date fixed by the
Board and give each holder the right to exercise of its sole discretion in such
instances, declare that any Option or Incentive Award shall terminate as of a
date fixed by the Board and give each holder the right to exercise his Option or
Incentive Award as to all or any part thereof, including Shares as to which the
Option or Incentive Award would not otherwise be exercisable. In the event of a
proposed sale of all or substantially all of the assets of the Company, or the
merger of the Company with or into another corporation, the Option or Incentive
Award shall be assumed or an equivalent Option or Incentive Award shall be
substituted by such successor corporation or a parent or subsidiary of such
successor corporation, unless the Board determines, in the exercise of its sole
discretion and in lieu of such assumption or substitution, that the holder shall
have the right to exercise the Option or Incentive Award as to all of the
Shares, including Shares as to which the Option or Incentive Award would not
otherwise be exercisable. If the Board makes an Option or Incentive Award
exercisable in lieu of assumption or substitution in the event of a merger or
sale of assets, the Board shall notify the holder that the Option or Incentive
Award shall be fully exercisable for a period of sixty (60) days from the date
of such notice (but not later than the expiration of the term of the Option or
Incentive Award), and the Option or Incentive Award will terminate upon the
expiration of such period.

    

    12.  
Transferability.

    

    Except to
the extent otherwise expressly provided in the Plan, the right to acquire Common
Shares or other assets under the Plan may not be assigned, encumbered or
otherwise transferred by a Participant and any attempt by a Participant to do so
will be null and void. No Option or Incentive Award granted under this Plan may
be transferred by a Participant except by will or the laws of descent and
distribution or pursuant to a qualified domestic relations order as defined by
the Code or Title I of the Employee Retirement Income Security Act, as amended,
or the rules thereunder. Options and other awards granted under this Plan may
not be exercised during a Participant's lifetime except by the Participant or,
in the event of the Participant's legal incapacity, by his guardian or legal
representative acting in a fiduciary capacity on behalf of the Participant under
state law and court supervision.

     

     

    
      
        
        

      

      
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    13.  
Time of
Granting Incentives.

    

    The Date
of Grant of an Option or Incentive Award shall, for all purposes, be the date on
which the Board or Committee makes the determination granting such Option or
Incentive Award. Notice of the determination shall be given to each Participant
to whom an Option or Incentive Award is so granted within a reasonable time
after the date of such grant.

    

    14.  
Amendment and
Termination of the Plan.

    

    14.1   The Board may amend or terminate the
Plan from time to time in such respects as the Board may deem advisable;
provided, however, that the following revisions or amendments shall require
approval of the holders of a majority of the outstanding Shares of the Company
entitled to vote thereon, to the extent required by law, rule or
regulation:

    

    (a)  
Any increase in the number of
Shares subject to the Plan, other than in connection with an adjustment under
Section 11 of the Plan;

    

    (b)   Any change in the designation of the
persons eligible (or any change in the class of Employees eligible, in the case
of Incentive Stock Options) to be granted Options or Incentive Awards involving
Shares; or

    

    (c)   If the Company has a class of equity
security registered under Section 12 of the Exchange Act at the time of such
revision or amendment, any material increase in the benefits accruing to
participants under the Plan.

    

    14.2   Notwithstanding the foregoing,
stockholder approval under this Section 14 shall only be required at such time
as (A) any rules of the National Association of Securities Dealers' Automated
Quotation System-National Market System shall require stockholder approval of a
plan or arrangement pursuant to which Common Stock may be acquired by officers
or directors of the Company, and/or (B) any rule or regulation promulgated by
the Securities and Exchange Commission, or (C) if Section 422 of the Code shall
require shareholder approval of an amendment to the Plan.

    

    14.3   Any such amendment or termination of
the Plan shall not affect Options already granted and such Options shall remain
in full force and effect as if this Plan had not been amended or terminated,
unless mutually agreed otherwise between the Optionee and the Board, which
agreement must be in writing and signed by the Optionee and the
Company.

    

    14.4   Notwithstanding the foregoing, this
Plan shall terminate upon the earlier
of (i) March 11, 2009 or
such earlier date as the Board shall determine, or (ii) the date on which all
awards available for issuance in the last year of the Plan shall have been
issued or canceled. Upon termination of the Plan, no further awards may be
granted, but all grants outstanding on such date shall thereafter continue to
have force and effect in accordance with the provisions of the agreements
evidencing such grants.

     

    15.  
Withholding
Taxes.

    

    The
Company is authorized to withhold income taxes as required under applicable laws
or regulations. To the extent that the Company is required to withhold federal,
state, local or foreign taxes in connection with any payment made or benefit
realized by a Participant or other person under this Plan, and the amounts
available to the Company for the withholding are insufficient, it shall be a
condition to the receipt of any such payment or the realization of any such
benefit that the Participant or such other person make arrangements satisfactory
to the Company for payment of the balance of any taxes required to be withheld.
At the discretion of the Board or the Committee, any such arrangements may
without limitation include relinquishment of a portion of any such payment or
benefit or the surrender of outstanding Common Shares. The Company and any
Participant or such other person may also make similar arrangements with respect
to the payment of any taxes with respect to which withholding is not
required.

     

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    
 

    

    16.  
Corporate
Transaction or Change of Control.

    

    The Board
or the Committee shall have the right in its sole discretion to include with
respect to any award granted to a Participant hereunder provisions accelerating
the benefits of the award in the event of a Corporate Transaction or Change of
Control, which acceleration rights may be granted in connection with an award
pursuant to the agreement evidencing the same or at any time after an award has
been granted to a Participant.

    

    17.  
Miscellaneous
Provisions.

    

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

    

    17.2   Construction of
Plan. The place of
administration of the Plan shall be in the State of Colorado, and the validity,
construction, interpretation, administration and effect of the Plan and of its
rules and regulations, and rights relating to the Plan, shall be determined in
accordance with the laws of the State of Colorado without regard to conflict of
law principles and, where applicable, in accordance with the
Code.

    

    17.3   Other Compensation.
The Board or the Committee
may condition the grant of any award or combination of awards authorized under
this Plan on the surrender or deferral by the Participant of his or her right to
receive a cash bonus or other compensation otherwise payable by the Company or a
Subsidiary to the Participant.

    

    17.4   Continuation of
Employment or Services. This Plan shall not confer upon any
Participant any right with respect to continuance of employment or other service
with the Company or any Subsidiary and shall not interfere in any way with any
right that the Company or any Subsidiary would otherwise have to terminate any
Participant's employment or other service at any time. Nothing contained in the
Plan shall prevent the Company or any Subsidiary from adopting other or
additional compensation arrangements for its employees.

    

    17.5
  Tax-Qualified
Options. To the extent
that any provision of this Plan would prevent any Option that was intended to
qualify as a Tax-Qualified Option from so qualifying, any such provision shall
be null and void with respect to any such Option; provided, however,
that any such provision
shall remain in effect with respect to other Options, and there shall be no
further effect on any provision of this Plan.

    

    17.6   Certain Terminations
of Employment or Consulting Services, Hardship and Approved Leaves of Absence.
Notwithstanding any other
provision of this Plan to the contrary, in the event of termination of
employment or consulting services by reason of death, disability, normal
retirement, early retirement with the consent of the Company, termination of
employment or consulting services to enter public or military service with the
consent of the Company or leave of absence approved by the Company, or in the
event of hardship or other special circumstances, of a Participant who holds an
Option that is not immediately and fully exercisable, any Restricted Shares as
to which the substantial risk of forfeiture or the prohibition or restriction on
transfer has not lapsed, any Performance Shares or Performance Units that have
not been fully earned, or any Common Shares that are subject to any transfer
restriction pursuant to Section 8 of this Plan, the Board or the Committee may
take any action that it deems to be equitable under the circumstances or in the
best interest of the Company, including without limitation waiving or modifying
any limitation or requirement with respect to any award under this
Plan.

    

    17.7   Binding Effect.
The provisions of the Plan
shall inure to the benefit of, and be binding upon, the Company and its
successors or assigns, and the Participants, their legal representatives, their
heirs or legacees and their permitted assignees.

    

    17.8   Exchange Act
Compliance. With respect
to persons subject to Section 16 of the Exchange Act, transactions under this
Plan are intended to comply with all applicable conditions of Rule 16b-3 or its
successors under the Exchange Act. To the extent any provisions of the Plan or
action by the Board or the Committee fails to so comply, they shall be deemed
null and void, to the extent permitted by law and deemed advisable by the Board
or the Committee.

     

     

     

    
      
        
        

      

      
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    17.9   Conditions upon
Issuance of Shares.

    

    (a)   Shares shall not be issued pursuant to
the exercise of an Option or Incentive Award unless the exercise of such Option
or Incentive Award and the issuance and delivery of such Shares pursuant thereto
shall comply with all relevant provisions of law, including, without limitation,
the Securities Act of 1933, as amended, the Exchange Act, the rules and
regulations promulgated thereunder, 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.

    

    (b)  
As a condition to the exercise of
an Option or Incentive Award, the Company may require the person exercising such
Option or Incentive Award to represent and warrant at the time of any such
exercise that the Shares are being purchased or otherwise acquired 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 relevant provisions of law.

    

    (c)   Inability of the Company to obtain
authority from any regulatory body having jurisdiction, which authority is
deemed by the Company's counsel to be necessary to the lawful issuance and sale
of any Share hereunder, shall relieve the Company of any liability in respect of
the failure to issue or sell such Shares as to which such requisite authority
shall not have been obtained.

    

    17.10   Fractional Shares.
The Company shall not be
required to issue any fractional Common Shares pursuant to this Plan. The Board
or the Committee may provide for the elimination of fractions or for the
settlement thereof in cash.

    

    17.11   Reservation of
Shares. The Company will
at all times reserve and keep available such number of Shares as shall be
sufficient to satisfy the requirements of the Plan.

    

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

    

    17.13   Gender. For purposes of this Plan, words used
in the masculine gender shall include the feminine and neuter, and the singular
shall include the plural and vice versa, as appropriate.

    

    17.14   Use of Proceeds.
Any cash proceeds received
by the Company from the sale of Common Shares under the Plan shall be used for
general corporate purposes.

     

    17.15   Regulatory
Approvals.

    

    (a)  
The implementation of the Plan,
the granting of any awards under the Plan and the issuance of any Common Shares
shall be subject to the Company's procurement of all approvals and permits
required by regulatory authorities having jurisdiction over the Plan, the awards
granted under it and the Common Shares issued pursuant to
it.

    

    (b)   No Common Shares or other assets shall
be issued or delivered under this Plan unless and until there shall have been
compliance with all applicable requirements of federal and state securities
laws, including the filing and effectiveness of the Form S-8 registration
statement for the Common Shares issuable under the Plan, and all applicable
listing requirements of any securities exchange on which the Common Shares are
then listed for trading.

    

    17.16   Other Tax Matters.
Reference herein to the
Code and any described tax consequences related to the Plan or the granting or
exercise of an award hereunder pertain only to those persons (including the
Company) subject to the tax laws of the United States of America or any state or
territory thereof and include all amendments to the Code enacted
hereafter.

    

    

    

    Adopted
by the Board:  May 6, 2008

    

    
 

     

    14

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