Document:

CLEVELAND
      BIOLABS, INC.

    

    2006
      EQUITY INCENTIVE PLAN

    

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    CLEVELAND
      BIOLABS, INC. 

    2006
      EQUITY INCENTIVE PLAN

    

    
      	
              1.

            	
              ESTABLISHMENT
                AND PURPOSE.

            

    

    

    The
      Cleveland BioLabs, Inc. 2006 Equity Incentive Plan (the “Plan”)
      is
      established by Cleveland BioLabs, Inc., a Delaware corporation (the
“Company”),
      to
      attract and retain persons eligible to participate in the Plan; motivate
      Participants to achieve long-term Company goals; and further align Participants’
interests with those of the Company’s other stockholders. The Plan is adopted as
      of July 1, 2006, subject to approval by the Company’s stockholders within 12
      months after such adoption date. No Awards that are settled in Stock shall
      be
      granted hereunder prior to the approval of the Plan by the Company’s
      stockholders. Unless the Plan is discontinued earlier by the Board as provided
      herein, no Award shall be granted hereunder on or after the date 10 years after
      the Effective Date. The Plan shall terminate on July 1, 2016 or such earlier
      time as the Board may determine.

    

    Certain
      terms used herein are defined as set forth in Section
      10.

    

    
      	
              2.

            	
              ADMINISTRATION;
                ELIGIBILITY.

            

    

    

    The
      Plan
      shall be administered by the Compensation Committee, or such other Committee,
      appointed by the Board consisting of three (3) or more members of the Board
      all
      of whom are intended to be “non-employee directors” within the meaning of
      Section 16 of the Securities Exchange Act of 1934 and the regulations
      promulgated thereunder and “outside directors” within the contemplation of
      Section 162(m) of the Code; provided,
      however,
      that,
      if at any time no Compensation Committee or other Committee has been appointed
      or is eligible to act in the circumstances, the Plan shall be administered
      by
      the Board. The Plan may be administered by different Committees with respect
      to
      different groups of Eligible Individuals. As used herein, the term “Administrator”
means
      the Board, the Compensation Committee or any of the Board’s other Committees as
      shall be administering the Plan or any individual delegated authority to act
      as
      the Administrator in accordance with this Section
      2.
      A
      majority of the members of the Compensation Committee, such other Committee
      or
      the Board, as applicable, shall constitute a quorum, and all determinations
      shall be made by a majority of the members thereof.

    

    The
      Administrator shall have plenary authority to grant Awards pursuant to the
      terms
      of the Plan to Eligible Individuals. Participation shall be limited to such
      persons as are selected by the Administrator. Subject to Section 409A of the
      Code, awards may be granted as alternatives to, in exchange or substitution
      for,
      or replacement of, awards outstanding under the Plan or any other plan or
      arrangement of the Company or a Subsidiary (including, subject to the
      requirements under the Plan, a plan or arrangement of a business or entity,
      all
      or a portion of which is acquired by the Company or a Subsidiary). The
      provisions of Awards need not be the same with respect to each
      Participant.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Among
      other things, the Administrator shall have the authority, subject to the terms
      of the Plan:

    

    
      	 	
              (a)

            	
              to
                select the Eligible Individuals to whom Awards may from time to time
                be
                granted;

            

    

    

    
      	 	
              (b)

            	
              to
                determine whether and to what extent Stock Options, Stock Appreciation
                Rights, Stock Awards or any combination thereof are to be granted
                hereunder;

            

    

    

    
      	 	
              (c)

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

            

    

    

    
      	 	
              (d)

            	
              to
                approve forms of agreement for use under the
                Plan;

            

    

    

    
      	 	
              (e)

            	
              to
                determine the terms and conditions, not inconsistent with the terms
                of
                this Plan, of any Award granted hereunder (including, but not limited
                to,
                the option price, any vesting restriction or limitation, any vesting
                acceleration or waiver of forfeiture, and any right of repurchase,
                right
                of first refusal or other transfer restriction regarding any Award
                and the
                shares of Stock relating thereto, based on such factors or criteria
                as the
                Administrator shall determine);

            

    

    

    
      	 	
              (f)

            	
              subject
                to Section
                9(a),
                to modify, amend or adjust the terms and conditions of any Award,
                at any
                time or from time to time, including, but not limited to, with respect
                to
                (i) performance goals and targets applicable to performance based
                Awards
                pursuant to the terms of the Plan and (ii) extension of the
                post-termination exercisability period of Stock Options;
                

            

    

    

    
      	 	
              (g)

            	
              to
                determine the Fair Market Value;
                and

            

    

    

    
      	 	
              (h)

            	
              to
                determine the type and amount of consideration to be received by
                the
                Company for any Stock Award issued under Section
                6.

            

    

    

    The
      Administrator shall have the authority to adopt, alter and repeal such
      administrative rules, guidelines and practices governing the Plan as it shall,
      from time to time, deem advisable, to interpret the terms and provisions of
      the
      Plan and any Award issued under the Plan (and any agreement relating thereto)
      and to otherwise supervise the administration of the Plan.

    

    In
      order
      to assure the viability of Awards granted to Participants employed in foreign
      countries who are not subject to U.S. tax law, the Administrator may provide
      for
      such special terms as it may consider necessary or appropriate to accommodate
      differences in local law, tax policy, or custom. Moreover, the Administrator
      may
      approve such supplements to, or amendments, restatements, or alternative
      versions of, the Plan as it may consider necessary or appropriate for such
      purposes without thereby affecting the terms of the Plan as in effect for any
      other purpose; provided,
      however,
      that no
      such supplements, amendments, restatements, or alternative versions shall
      increase the share limitations contained in Section
      3
      of the
      Plan.

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    Except
      to
      the extent prohibited by applicable law, the Administrator may allocate all
      or
      any portion of its responsibilities and powers to any one or more of its members
      and may delegate all or any portion of its responsibilities and powers to any
      other person or persons selected by it. Any such allocation or delegation may
      be
      revoked by the Administrator at any time. The Administrator may authorize any
      one or more of their members or any officer of the Company to execute and
      deliver documents on behalf of the Administrator.

    

    Any
      determination made by the Administrator or pursuant to delegated authority
      pursuant to the provisions of the Plan with respect to any Award shall be made
      in the sole discretion of the Administrator or such delegate at the time of
      the
      grant of the Award or, unless in contravention of any express term of the Plan,
      at any time thereafter. All decisions made by the Administrator or any
      appropriately delegated officer pursuant to the provisions of the Plan shall
      be
      final and binding on all persons, including the Company and
      Participants.

    

    No
      member
      of the Administrator, and no officer of the Company, shall be liable for any
      action taken or omitted to be taken by such individual or by any other member
      of
      the Administrator or officer of the Company in connection with the performance
      of duties under this Plan, except for such individual’s own willful misconduct
      or as expressly provided by law.

    

    
      	
              3.

            	
              STOCK
                SUBJECT TO PLAN.

            

    

    

    Subject
      to adjustment as provided in this Section
      3,
      the
      aggregate number of shares of Stock which may be delivered under the Plan shall
      not exceed 2,000,000 shares.

    

    To
      the
      extent any shares of Stock covered by an Award are not delivered to a
      Participant or beneficiary thereof because the Award expires, is forfeited,
      lapses without exercise, canceled or otherwise terminated, or the shares of
      Stock are not delivered because the Award is settled in cash or are used to
      satisfy the applicable tax withholding obligation, such shares shall not be
      deemed to have been delivered for purposes of determining the maximum number
      of
      shares of Stock available for delivery under the Plan with respect to, and
      shall
      be available for, future grants of Awards.

    

    Subject
      to adjustment as provided in this Section
      3,
      the
      maximum number of shares that may be covered by Stock Options, Stock
      Appreciation Rights and Stock Awards, in the aggregate, granted to any one
      Participant during any calendar year shall be 400,000 shares.

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    In
      the
      event of any Company stock dividend, special cash dividend, stock split,
      combination or exchange of shares, recapitalization or other change in the
      capital structure of the Company, corporate separation or division of the
      Company (including, but not limited to, a split-up, spin-off, split-off or
      other
      distribution to Company stockholders, other than a normal cash dividend), sale
      by the Company of all or a substantial portion of its assets (measured on either
      a stand-alone or consolidated basis), reorganization, rights offering, partial
      or complete liquidation, merger or consolidation in which the Company is the
      surviving corporation, or any other corporate transaction, Company share
      offering or other event involving the Company and having an effect similar
      to
      any of the foregoing, the Administrator may make such substitution or
      adjustments in the (a) number and kind of shares that may be delivered under
      the
      Plan, (b) additional maximums imposed in the immediately preceding paragraph,
      (c) number and kind of shares subject to outstanding Awards, (d) exercise price
      of outstanding Stock Options and Stock Appreciation Rights and (e) other
      characteristics or terms of the Awards as it may determine appropriate in its
      sole discretion to equitably reflect such corporate transaction, share offering
      or other event; provided,
      however,
      that
      the number of shares subject to any Award shall always be a whole number.

     

    In
      the
      event of the dissolution or liquidation of the Company, or a merger,
      reorganization or consolidation in which the Company is not the surviving
      corporation, then, except as otherwise provided herein and/or in the discretion
      of the Administrator, each Stock Option, to the extent not theretofore
      exercised, shall terminate forthwith.

    

    Notwithstanding
      the foregoing, no adjustment shall be made pursuant to this Section
      3 to
      the
      extent that such adjustment would violate Section 409A of the Code.

    

    
      	
              4.

            	
              STOCK
                OPTIONS.

            

    

    

    Stock
      Options may be granted alone or in addition to other Awards granted under the
      Plan and may be of two types: Incentive Stock Options and Non-Qualified Stock
      Options. Any Stock Option granted under the Plan shall be in such form as the
      Administrator may from time to time approve.

    

    The
      Administrator shall have the authority to grant any Participant Incentive Stock
      Options, Non-Qualified Stock Options or both types of Stock Options. Incentive
      Stock Options may be granted only to associates of the Company and its
      subsidiaries (within the meaning of Section 424(f) of the Code). To the extent
      that any Stock Option is not designated as an Incentive Stock Option or, even
      if
      so designated, does not qualify as an Incentive Stock Option, it shall
      constitute a Non-Qualified Stock Option. Incentive Stock Options may be granted
      only within 10 years from the date the Plan is adopted, or the date the Plan
      is
      approved by the Company’s stockholders, whichever is earlier.

    

    Stock
      Options shall be evidenced by option agreements, each in a form approved by
      the
      Administrator. An option agreement shall indicate on its face whether it is
      intended to be an agreement for an Incentive Stock Option or a Non-Qualified
      Stock Option. The grant of a Stock Option shall occur as of the date the
      Administrator determines, subject to FASB Statement 123(R) and guidance
      thereunder.

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

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

    

    To
      the
      extent that the aggregate Fair Market Value of Stock with respect to which
      Incentive Stock Options are exercisable for the first time by a Participant
      during any calendar year (under all plans of the Company and its subsidiaries
      within the meaning of Section 424(f) of the Code) exceeds $100,000, such Stock
      Options shall be treated as Non-Qualified Stock Options.

    

    Stock
      Options granted under this Section
      4
      shall be
      subject to the following terms and conditions and shall contain such additional
      terms and conditions as the Administrator shall deem desirable:

    

    
      	 	
              (a)

            	
              Exercise
                Price.
                The exercise price per share of Stock purchasable under a Stock Option
                shall be determined by the Administrator at the time of grant;
                provided,
                however,
                that the exercise price per share shall be not less than the Fair
                Market
                Value per share on the date the Stock Option is granted, or in the
                case of
                an Incentive Stock Option granted to an individual who is a Ten Percent
                Holder, not less than 110% of such Fair Market Value per share on
                the date
                the Stock Option is granted.

            

    

    

    
      	 	
              (b)

            	
              Option
                Term.
                The term of each Stock Option shall be fixed by the Administrator
                at the
                time of grant, but no Incentive Stock Option shall be exercisable
                more
                than 10 years (or five years in the case of an individual who is
                a Ten
                Percent Holder) after the date the Incentive Stock Option is
                granted.

            

    

    

    
      	 	
              (c)

            	
              Vesting.
                Except as otherwise provided in the applicable option agreement,
                an
                Optionee may not exercise a Stock Option during the period commencing
                on
                the date of the grant of such Stock Option to him or her and ending
                on the
                day immediately preceding the first anniversary of such date. Except
                as
                otherwise provided in the applicable option agreement, an Optionee
                may (i)
                during the period commencing on the first anniversary of the date
                of the
                grant of a Stock Option to him or her and ending on the day immediately
                preceding the second anniversary of such date, exercise such Stock
                Option
                with respect to one-fourth of the shares granted thereby; (ii) during
                the period commencing on the second anniversary of the date of such
                grant
                and ending on the day immediately preceding the third anniversary
                of the
                date of such grant, exercise such Stock Option with respect to one-half
                of
                the shares granted thereby; (iii) during the period commencing on
                the
                third anniversary of the date of such grant and ending on the day
                immediately preceding the fourth anniversary of such date, exercise
                such
                Stock Option with respect to three-fourths of the shares granted
                thereby
                and (iv) during the period commencing on the fourth anniversary of
                the
                date of such grant and ending at the time the Stock Option expires
                pursuant to the terms of the Plan, exercise such Stock Option with
                respect
                to all of the shares granted thereby.

            

    

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    
      	 	
              (d)

            	
              Exercisability.
                Except as otherwise provided herein, Stock Options shall be subject
                to
                such terms and conditions, performance requirements, restrictions,
                forfeiture provisions, contingencies and limitations, if any, as
                shall be
                determined by the Administrator and listed in the applicable Stock
                Option
                agreement. If any Stock Option is exercisable only in installments,
                the
                Administrator may at any time waive such installment exercise provisions,
                in whole or in part, based on such factors as the Administrator may
                determine. In addition, the Administrator may at any time, in whole
                or in
                part, accelerate the exercisability of any Stock Option.
                

            

    

    

    
      	 	
              (e)

            	
              Method
                of Exercise.
                Stock Options may be exercised, in whole or in part, by giving written
                notice of exercise to the Company specifying the number of shares
                of Stock
                subject to the Stock Option to be
                purchased.

            

    

    

    The
      option price of any Stock Option shall be paid in full in cash (by certified
      or
      bank check or such other instrument as the Company may accept) or, unless
      otherwise provided in the applicable option agreement, by one or more of the
      following: (i) in the form of mature shares of unrestricted Stock already owned
      by the Optionee, based on the Fair Market Value of the Stock on the date the
      Stock Option is exercised; (ii) by certifying ownership of shares of mature
      Stock owned by the Optionee to the satisfaction of the Administrator for later
      delivery to the Company as specified by the Company; (iii) unless otherwise
      prohibited by law for either the Company or the Optionee, by irrevocably
      authorizing a third party to sell shares of Stock (or a sufficient portion
      of
      the shares) acquired upon exercise of the Stock Option and remit to the Company
      a sufficient portion of the sale proceeds to pay the entire exercise price
      and
      any tax withholding resulting from such exercise; or (iv) by any combination
      of
      cash and/or any one or more of the methods specified in clauses (i), (ii) and
      (iii). Notwithstanding the foregoing, a form of payment shall not be permitted
      to the extent it would cause the Company to recognize a compensation expense
      (or
      additional compensation expense) with respect to the Stock Option for financial
      reporting purposes.

    

    If
      payment of the option exercise price of a Non-Qualified Stock Option is made
      in
      whole or in part in the form of Restricted Stock, the number of shares of Stock
      to be received upon such exercise equal to the number of shares of Restricted
      Stock used for payment of the option exercise price shall be subject to the
      same
      forfeiture restrictions to which such Restricted Stock was subject, unless
      otherwise determined by the Administrator.

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    No
      shares
      of Stock shall be issued upon exercise of a Stock Option until full payment
      therefor has been made. Upon exercise of a Stock Option (or a portion thereof),
      the Company shall have a reasonable time to issue the Stock for which the Stock
      Option has been exercised, and the Optionee shall not be treated as a
      stockholder for any purposes whatsoever prior to such issuance. No adjustment
      shall be made for cash dividends or other rights for which the record date
      is
      prior to the date such Stock is recorded as issued and transferred in the
      Company’s official stockholder records, except as otherwise provided herein or
      in the applicable option agreement.

    

    
      	 	
              (f)

            	
              Transferability
                of Stock Options.
                Except as otherwise provided in the applicable option agreement,
                a
                Non-Qualified Stock Option (i) shall be transferable by the Optionee
                to a
                Family Member of the Optionee, provided that
                (A) any such transfer shall be by gift with no consideration and
                (B) no
                subsequent transfer of such Stock Option shall be permitted other
                than by
                will or the laws of descent and distribution, and (ii) shall not
                otherwise
                be transferable except by will or the laws of descent and distribution.
                An
                Incentive Stock Option shall not be transferable except by will or
                the
                laws of descent and distribution. A Stock Option shall be exercisable,
                during the Optionee’s lifetime, only by the Optionee or by the guardian or
                legal representative of the Optionee, it being understood that the
                terms
                “holder” and “Optionee”
                include the guardian and legal representative of the Optionee named
                in the
                applicable option agreement and any person to whom the Stock Option
                is
                transferred (X) pursuant to the first sentence of this Section
                4(f) or
                pursuant to the applicable option agreement or (Y) by will or the
                laws of
                descent and distribution. Notwithstanding the foregoing, references
                herein
                to the termination of an Optionee’s employment or provision of services
                shall mean the termination of employment or provision of services
                of the
                person to whom the Stock Option was originally
                granted.

            

    

    

    
      	 	
              (g)

            	
              Termination
                by Death.
                Except as otherwise provided in the applicable option agreement,
                if an
                Optionee’s employment or provision of services terminates by reason of
                death, any Stock Option held by such Optionee may thereafter be exercised
                for a period of one year from the date of such death or until the
                expiration of the stated term of such Stock Option, whichever period
                is
                shorter. 

            

    

    

    
      	 	
              (h)

            	
              Termination
                by Reason of Disability.
                Except as otherwise provided in the applicable option agreement,
                if an
                Optionee’s employment or provision of services terminates by reason of
                Disability, any Stock Option held by such Optionee may thereafter
                be
                exercised by the Optionee for a period of one year from the date
                of such
                termination of employment or provision of services or until the expiration
                of the stated term of such Stock Option, whichever period is shorter.
                

            

    

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    
      	 	
              (i)

            	
              Termination
                by Reason of Retirement.
                Except as otherwise provided in the applicable option agreement,
                if an
                Optionee’s employment or provision of services terminates by reason of
                Retirement, any Stock Option held by such Optionee may thereafter
                be
                exercised by the Optionee for a period of three years from the date
                of
                such termination of employment or provision of services or until
                the
                expiration of the stated term of such Stock Option, whichever period
                is
                shorter. 

            

    

    

    
      	 	
              (j)

            	
              Involuntary
                Termination Without Cause.
                Except as otherwise provided in the applicable option agreement,
                if an
                Optionee’s employment or provision of services terminates involuntarily
                without Cause, and for reasons other than death, Disability or Retirement,
                any Stock Option held by such Optionee may thereafter be exercised,
                to the
                extent it was exercisable at the time of termination, for a period
                of 30
                days from the date of such termination of employment or provision
                of
                services or until the expiration of the stated term of such Stock
                Option,
                whichever period is shorter, and any Stock Option that is unvested
                or
                unexercisable at the date of termination shall thereupon terminate.
                

            

    

    

    
      	 	
              (k)

            	
              Involuntary
                Termination for Cause.
                Except as otherwise provided in the applicable option agreement,
                if an
                Optionee’s employment or provision of services terminates involuntarily
                for Cause, vesting of all outstanding Stock Options held by such
                Optionee
                shall thereupon terminate and all Stock Options held by such Optionee
                shall thereupon terminate.

            

    

    

    
      	 	
              (l)

            	
              Other
                Termination.
                Except as otherwise provided in the applicable option agreement,
                if an
                Optionee’s employment or provision of services is terminated by the
                Optionee for any reason other than death, Disability or Retirement,
                any
                Stock Option held by such Optionee may thereafter be exercised, to
                the
                extent it was exercisable at the time of termination, for a period
                of 30
                days from the date of such termination of employment or provision
                of
                services or until the expiration of the stated term of such Stock
                Option,
                whichever period is shorter, and any Stock Option that is unvested
                or
                unexercisable at the date of termination shall thereupon terminate.
                

            

    

    

    
      	 	
              (m)

            	
              Exception
                to Termination.
                If provision of services by the Optionee to the Company or an Affiliate
                ceases as a result of a transfer of such Optionee from the Company
                to an
                Affiliate, or from an Affiliate to the Company, such transfer shall
                not be
                a termination of employment or provision of services for purposes
                of this
                Plan, unless expressly determined otherwise by the Administrator.
                A
                termination of employment or provision of services shall occur for
                an
                Optionee who is employed by, or provides services to, an Affiliate
                of the
                Company if the Affiliate shall cease to be an Affiliate and the Optionee
                shall not immediately thereafter be employed by, or provide services
                to,
                the Company or an Affiliate. 

            

    

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    
      	 	
              (n)

            	
              Notwithstanding
                the foregoing, to the extent permitted under Section 409A of the
                Code, the
                exercise period following a termination described in subsection (g),
                (h),
                (i), (j) or (l) above shall be tolled for any applicable window/blackout
                period restrictions under the Company’s insider trading
                policy.

            

    

    

    
      	
              5.

            	
              STOCK
                APPRECIATION RIGHTS.

            

    

    

    Stock
      Appreciation Rights may be granted under the Plan on a stand-alone basis only.
      The Administrator shall have the authority to grant Stock Appreciation Rights
      to
      any Participant. Except as otherwise provided herein, a Stock Appreciation
      Right
      shall terminate and no longer be exercisable as determined by the
      Administrator.

    

    Stock
      Appreciation Rights shall be evidenced by stock appreciation right agreements,
      each in a form approved by the Administrator. The grant of a Stock Appreciation
      Right shall occur as of the date the Administrator determines, subject to FASB
      Statement 123(R) and guidance thereunder.

    

    A
      Stock
      Appreciation Right may be exercised by a Participant as determined by the
      Administrator in accordance with this Section
      5.
      Upon
      such exercise, the Participant shall be entitled to receive an amount determined
      in the manner prescribed in this Section
      5.
      

    

    Stock
      Appreciation Rights shall be subject to such terms and conditions as shall
      be
      determined by the Administrator, including the following:

    

    
      	 	
              (a)

            	
              Stock
                Appreciation Right Term.
                The term of each Stock Appreciation Right shall be fixed by the
                Administrator at the time of grant.

            

      	 	 	 

    

    
      	 	
              (b)

            	
              Vesting.
                Except as otherwise provided in the applicable stock appreciation
                right
                agreement, a Participant may not exercise a Stock Appreciation Right
                during the period commencing on the date of the grant of such Stock
                Appreciation Right to him or her and ending on the day immediately
                preceding the first anniversary of such date. Except as otherwise
                provided
                in the applicable stock appreciation right agreement, a Participant
                may
                (i) during the period commencing on the first anniversary of the
                date of
                the grant of a Stock Appreciation Right and ending on the day immediately
                preceding the second anniversary of such date, exercise the Stock
                Appreciation Right with respect to one-fourth of the shares to which
                the
                Stock Appreciation Right applies, (ii) during the period commencing
                on the second anniversary of the date of such grant and ending on
                the day
                immediately preceding the third anniversary of the date of such grant,
                exercise the Stock Appreciation Right with respect to one-half of
                the
                shares to which the Stock Appreciation Right applies, (iii) during
                the
                period commencing on the third anniversary of the date of such grant
                and
                ending on the day immediately preceding the fourth anniversary of
                such
                date, exercise the Stock Appreciation Right with respect to three-fourths
                of the shares to which the Stock Appreciation Right applies; and
                (iv)
                during the period commencing on the fourth anniversary of the date
                of such
                grant ending at the time the Stock Appreciation Right expires pursuant
                to
                the terms of the Plan, exercise the Stock Appreciation Right with
                respect
                to all the shares to which the Stock Appreciation Right applies.
                

            

    

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    
      	 	
              (c)

            	
              Exercisability.
                Notwithstanding Section
                5(a),
                the Administrator may at any time, in whole or in part, accelerate
                the
                exercisability of any Stock Appreciation Right.

            

    

    

    
      	 	
              (d)

            	
              Method
                of Exercise.
                Subject to the provisions of this Section
                5,
                Stock Appreciation Rights may be exercised, in whole or in part,
                at such
                time or times during the exercisability as determined by the Administrator
                by giving written notice of exercise to the Company specifying the
                number
                of shares with respect to which the Stock Appreciation Right is being
                exercised.

            

    

    

    
      	 	
              (e)

            	
              Upon
                the exercise of a Stock Appreciation Right, a Participant shall be
                entitled to receive an amount in cash or in shares of Stock, which
                in the
                aggregate are equal in value to the excess of the Fair Market Value
                of one
                share of Stock on the date of exercise over the Fair Market Value
                of one
                share of Stock on the date of grant, multiplied by the number of
                shares in
                respect of which the Stock Appreciation Right shall have been
                exercised.

            

    

    

    
      	 	
              (f)

            	
              A
                Stock Appreciation Right shall be transferable only to, and shall
                be
                exercisable only by, such persons permitted in accordance with
                Section
                4(f).

            

    

    

    
      	 	
              (g)

            	
              Termination
                by Death.
                Except as otherwise provided in the applicable option agreement,
                if a
                Participant’s employment or provision of services terminates by reason of
                death, any Stock Appreciation Right held by such Participant may
                thereafter be exercised for a period of one year from the date of
                such
                death or until the expiration of the stated exercisability period
                of such
                Stock Appreciation Right, whichever period is shorter.
                

            

    

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    
      	 	
              (h)

            	
              Termination
                by Reason of Disability.
                Except as otherwise provided in the applicable option agreement,
                if a
                Participant’s employment or provision of services terminates by reason of
                Disability, any Stock Appreciation Right held by such Participant
                may
                thereafter be exercised by the Participant for a period of one year
                from
                the date of such termination of employment or provision of services
                or
                until the expiration of the exercisability period of such Stock
                Appreciation Right, whichever period is shorter.
                

            

    

    

    
      	 	
              (i)

            	
              Termination
                by Reason of Retirement.
                Except as otherwise provided in the applicable option agreement,
                if a
                Participant’s employment or provision of services terminates by reason of
                Retirement, any Stock Appreciation Right held by such Participant
                may
                thereafter be exercised by the Participant for a period of three
                years
                from the date of such termination of employment or provision of services
                or until the expiration of the exercisability period of such Stock
                Appreciation Right, whichever period is shorter.
                

            

    

    

    
      	 	
              (j)

            	
              Involuntary
                Termination Without Cause.
                Except as otherwise provided in the applicable option agreement,
                if a
                Participant’s employment or provision of services terminates involuntarily
                without Cause, and for reasons other than death, Disability or Retirement,
                any Stock Appreciation Right held by such Participant may thereafter
                be
                exercised, to the extent it was exercisable at the time of termination,
                for a period of 30 days from the date of such termination of employment
                or
                provision of services or until the expiration of the exercisability
                period
                of such Stock Appreciation Right, whichever period is shorter, and
                any
                Stock Appreciation Right that is unvested or unexercisable at the
                date of
                termination shall thereupon
                terminate.

            

    

    

    
      	 	
              (k)

            	
              Termination
                for Cause.
                Except as otherwise provided in the applicable option agreement,
                if a
                Participant’s employment or provision of services terminates involuntarily
                for Cause vesting of all outstanding Stock Appreciation Rights held
                by
                such Participant shall thereupon terminate and all Stock Appreciation
                Rights held by such Participant shall thereupon
                terminate.

            

    

    

    
      	 	
              (l)

            	
              Other
                Termination.
                Except as otherwise provided in the applicable option agreement,
                if a
                Participant’s employment or provision of services is terminated by the
                Participant for any reason other than death, Disability or Retirement,
                any
                Stock Appreciation Right held by such Participant may thereafter
                be
                exercised, to the extent it was exercisable at the time of termination,
                for a period of 30 days from the date of such termination of employment
                or
                provision of services or until the expiration of the exercisability
                period
                of such Stock Appreciation Right, whichever period is shorter, and
                any
                Stock Appreciation Right that is unvested or unexercisable at the
                date of
                termination shall thereupon
                terminate.

            

    

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    
      	 	
              (m)

            	
              Notwithstanding
                the foregoing, to the extent permitted under Section 409A of the
                Code, the
                exercise period following a termination described in subsection (g),
                (h),
                (i), (j) or (l) above shall be tolled for any applicable window/blackout
                period restrictions under the Company’s insider trading
                policy.

            

    

    

    
      	
              6.

            	
              STOCK
                AWARDS OTHER THAN OPTIONS.

            

    

    

    Stock
      Awards may be directly issued under the Plan (without any intervening options),
      subject to such terms, conditions, performance requirements, restrictions,
      forfeiture provisions, contingencies and limitations as the Administrator shall
      determine. Subject to the provisions of this Section
      6,
      Stock
      Awards may be issued which vest in one or more installments over the
      Participant’s period of employment and/or other service to the Company and/or
      upon the attainment of specified performance objectives, and/or the Company
      may
      issue Stock Awards which entitle the Participant to receive a specified number
      of vested shares of Stock upon the attainment of one or more performance goals
      and/or service requirements established by the Administrator.

    

    Shares
      representing a Stock Award shall be evidenced in such manner as the
      Administrator may deem appropriate, including book-entry registration or
      issuance of one or more certificates (which may bear appropriate legends
      referring to the terms, conditions and restrictions applicable to such Award).
      The Administrator may require that any such certificates be held in custody
      by
      the Company until any restrictions thereon shall have lapsed and that the
      Participant deliver a stock power, endorsed in blank, relating to the Stock
      covered by such Award.

    

    A
      Stock
      Award may be issued in exchange for any consideration which the Administrator
      may deem appropriate in each individual instance, including, without
      limitation:

    

    
      	 	
              (a)

            	
              cash
                or cash equivalents;

            

    

    

    
      	 	
              (b)

            	
              past
                services rendered to the Company or any Affiliate;
                or

            

    

    

    
      	 	
              (c)

            	
              future
                services to be rendered to the Company or any Affiliate (provided that,
                in such case, the par value of the stock subject to such Stock Award
                shall
                be paid in cash or cash equivalents, unless the Administrator provides
                otherwise).

            

    

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    A
      Stock
      Award that is subject to restrictions on transfer and/or forfeiture provisions
      may be referred to as an award of “Restricted
      Stock”
or
      “Restricted
      Stock Units.”
Except
      as provided in the applicable restricted stock agreement or restricted stock
      unit agreement, the restrictions on any Stock Award shall terminate as follows:
      (a) as to one-fourth of the restricted shares granted thereby, on the first
      anniversary of the date of grant of such Stock Award; (b) as to an additional
      one-fourth of the restricted shares granted thereby, on the second anniversary
      of the date of grant of such Restricted Stock; (c) as to an additional
      one-fourth of the restricted shares granted thereby, on the third anniversary
      of
      the date of grant of such Restricted Stock; and (d) as to an additional
      one-fourth of the restricted shares granted thereby, on the fourth anniversary
      of the date of grant of such Restricted Stock. A Participant, at his or her
      option, will be entitled to make the election permitted under Section 83(b)
      of
      the Code, to include in gross income in the taxable year in which the Restricted
      Stock are transferred to him or her, the fair market value of such shares at
      the
      time of transfer, notwithstanding that such shares are subject to a substantial
      risk of forfeiture within the meaning of the Code, or he or she may elect to
      include in gross income the Fair Market Value of the Restricted Stock as of
      the
      date or date on which such restrictions lapse. Notwithstanding the foregoing,
      the Administrator shall adopt, from time to time, such rules with respect to
      the
      return of executed Restricted Stock Agreements as it deems appropriate and
      failure by a Participant to comply with such rules shall, without limitation,
      terminate the grant of such Restricted Stock to such Participant and/or cause
      the forfeiture of any Restricted Stock as to which restrictions have not yet
      lapsed. 

    

    
      	
              7.

            	
              PERFORMANCE
                AWARDS.

            

    

    

    
      	 	
              (a)

            	
              Performance
                Conditions.
                The right of a Participant to exercise or receive a grant or settlement
                of
                any Award, and its timing, may be subject to performance conditions
                specified by the Administrator at the time of grant (except as provided
                in
                this Section
                7).
                The Administrator may use business criteria and other measures of
                performance it deems appropriate in establishing any performance
                conditions, and may exercise its discretion to reduce or increase
                amounts
                payable under any Award subject to performance conditions, except
                as
                limited under Section
                7(b)
                hereof in the case of a Performance Award intended to qualify under
                Section 162(m) of the Code.

            

    

    

    
      	 	
              (b)
                

            	
              Performance
                Awards Granted to Designated Covered Employees.
                If the Administrator determines that a Performance Award to be granted
                to
                a person the Administrator regards as likely to be a Covered Employee
                should qualify as “performance-based compensation” for purposes of Section
                162(m) of the Code, the grant and/or settlement of such Performance
                Award
                shall be contingent upon achievement of pre-established performance
                goals
                and other terms set forth in this Section
                7(b)

            

    

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    
      
        	 	 	
                (i)
                  

              	
                Performance
                  Goals Generally.
                  The performance goals for such Performance
                  Awards shall consist of one or more business criteria and a  targeted
                  level or levels of performance with respect to such criteria, as
                   specified
                  by the Administrator consistent with this Section
                  7(b).
                   Performance
                  goals shall be objective and shall otherwise meet the  requirements
                  of Section 162(m) of the Code, including the requirement  that
                  the level or levels of performance targeted by the Administrator
                  result
                   in
                  the performance goals being “substantially uncertain.” The  Administrator
                  may determine that more than one performance goals must  be
                  achieved as a condition to settlement of such Performance Awards.
                   Performance
                  goals may differ for Performance Awards granted to any one  Participant
                  or to different
                  Participants.

              

      

    

     

    
      	 	 	
              (ii)
                

            	
              Business
                Criteria.
                One or more business criteria for the Company, on a consolidated
                basis,
                and/or for specified Subsidiaries or business units of the Company
                (except
                with respect to the total stockholder return and earnings per share
                criteria), shall be used by the Administrator in establishing performance
                goals for such Performance Awards and set forth in the applicable
                Performance Award Agreement.

            

    

     

     

    
      
        	 	 	
                (iii)
                  

              	
                Performance
                  Period: Timing For Establishing Performance Goals.
                   Achievement
                  of performance goals in respect of such Performance  Awards
                  shall be measured over such periods of at least 12 months’  duration
                  as may be specified by the Administrator. Performance goals  shall
                  be established on or before the dates that are required or permitted
                   for
                  "performance-based compensation" under Section 162(m) of the
                  Code.

              

      

      
        	 	 	
                (iv)
                  

              	
                Settlement
                  of Performance Awards; Other Terms.
                  Settlement of  Performance
                  Awards may be in cash or Stock, or other Awards, or other  property,
                  in the discretion of the Administrator. The Administrator may,
                   in
                  its discretion, reduce the amount of a settlement otherwise to
                  be made in
                   connection
                  with such Performance Awards, but may not exercise  discretion
                  to increase any such amount payable in respect of a  Performance
                  Award subject to this Section
                  7(b).
                  The Administrator shall  specify
                  the circumstances in which such Performance Awards shall be  forfeited
                  or paid in the event of a termination of employment at least six
                   months
                  prior to the end of a performance period or settlement of  Performance
                  Awards, and other terms relating to such Performance  Awards.

              

      

    

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    

    
      	
              8.

            	
              CHANGE
                IN CONTROL PROVISIONS.

            

    

    

    
      	 	
              (a)

            	
              Impact
                of Event.
                Notwithstanding any other provision of the Plan to the contrary,
                in the
                event of a Change in Control:

            

    

    

    
      	 	
              (i)

            	
              Subject
                to Section
                8(a)(iv)
                hereof, the vesting and exercisability of any Stock Options and Stock
                Appreciation Rights outstanding as of the date such Change in Control
                is
                determined to have occurred and not then vested and exercisable shall
                become fully vested and
                exercisable;

            

    

    

    
      	 	
              (ii)

            	
              Subject
                to Section
                8(a)(iv)
                hereof, any restrictions applicable to any outstanding Stock Awards
                shall
                lapse and the Stock relating to such Awards shall become free of
                all
                restrictions and fully vested and
                transferable;

            

    

    

    
      	 	
              (iii)

            	
              Subject
                to Sections
                8(a)(iv)
                and 8(a)(v)
                hereof, all outstanding repurchase rights of the Company with respect
                to
                any outstanding Awards may, in the discretion of the Administrator,
                terminate; 

            

    

    

    
      	 	
              (iv)

            	
              Outstanding
                Awards shall, provided that no material modification of the Award
                or any
                liability results under Section 409A of the Code, be subject to any
                agreement of merger or reorganization that effects such Change in
                Control
                and that provides for:

            

    

    

    
      	 	
              (A)

            	
              The
                continuation of the outstanding Awards by the Company, if the Company
                is a
                surviving corporation;

            

    

    

    
      	 	
              (B)

            	
              The
                assumption of the outstanding Awards by the surviving corporation
                or its
                parent or subsidiary;

            

    

    

    
      	 	
              (C)

            	
              The
                substitution by the surviving corporation or its parent or subsidiary
                of
                equivalent awards for the outstanding Awards;
                or

            

    

    

    
      	 	
              (D)

            	
              Settlement
                of each share of Stock subject to an outstanding Award for the Change
                in
                Control Price (less, to the extent applicable, the per share exercise
                price), or, if the per share exercise price equals or exceeds the
                Change
                in Control Price, the outstanding Award shall terminate and be canceled;
                and

            

    

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

     

    
      	 	
              (v)

            	
              In
                the absence of any agreement of merger or reorganization (if applicable)
                which addresses the effects of such Change in Control and subject
                to
                Section 409A of the Code, each share of Stock subject to an outstanding
                Award shall be settled for the Change in Control Price (less, to
                the
                extent applicable, the per share exercise price), or, if the per
                share
                exercise price equals or exceeds the Change in Control Price, the
                outstanding Award shall terminate and be
                canceled.

            

    

    

    
      	 	
              (b)

            	
              Definition
                of Change in Control.
                

            

    

    

    
      	 	
              (i)

            	
              For
                purposes of the Plan, a “Change
                in Control”
                shall occur or be deemed to have occurred only if any of the following
                events occur:

            

    

    

    
      	 	
              (A)

            	
              The
                acquisition, directly or indirectly, by any person or group (as those
                terms are defined in Sections 3(a)(9), 13(d) and 14(d) of the Exchange
                Act
                and the rules thereunder) of beneficial ownership (as determined
                pursuant
                to Rule 13d-3 under the Exchange Act) of securities entitled to vote
                generally in the election of directors (voting securities) of the
                Company
                that represent 50% or more of the combined voting power of the Company’s
                then outstanding voting securities, other than:

            

    

     

    
      	 	
              (1)
                

            	
              An
                acquisition by a trustee or other fiduciary holding securities under
                any
                employee benefit plan (or related trust) sponsored or maintained
                by the
                Company or any person controlled by the Company or by any employee
                benefit
                plan (or related trust) sponsored or maintained by the Company or
                any
                person controlled by the Company; or

            

    

     

    
      	 	
              (2)
                

            	
              An
                acquisition of voting securities by the Company or a corporation
                owned,
                directly or indirectly by the stockholders of the Company in substantially
                the same proportions as their ownership of the stock of the Company;
                or
                

            

    

    

    
      	 	
              (3)
                

            	
              An
                acquisition of voting securities pursuant to a transaction described
                in
                clause (C) below that would not be a Change of Control under clause
                (C);
                

            

    

     

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    Notwithstanding
      the foregoing, neither of the following events shall constitute an acquisition
      by any person or group for purposes of this subsection (a): an acquisition
      of
      the Company’s securities by the Company which causes the Company’s voting
      securities beneficially owned by a person or group to represent 50% or more
      of
      the combined voting power of the Company’s then outstanding voting securities;
provided,
      however,
      that if
      a person or group shall become the beneficial owner of 50% or more of the
      combined voting power of the Company’s then outstanding voting securities by
      reason of share acquisitions by the Company as described above and shall, after
      such share acquisitions by the Company, become the beneficial owner of any
      additional voting securities of the Company, then such acquisition shall
      constitute a Change of Control; or

     

    
      	 	
              (B)

            	
              During
                any period of two consecutive years, individuals who, at the beginning
                of
                such period, constitute the Board together with any new director(s)
                (other
                than a director designated by a person who shall have entered into
                an
                agreement with the Company to effect a transaction described in clauses
                (A) or (C) of this subsection (i)) whose election by the Board or
                nomination for election by the Company’s stockholders was approved by a
                vote of at least two-thirds of the directors then still in office
                who
                either were directors at the beginning of the two year period or
                whose
                election or nomination for election was previously so approved, cease
                for
                any reason to constitute a majority thereof;
                or

            

    

     

    
      	 	
              (C)

            	
              The
                consummation by the Company (whether directly involving the Company
                or
                indirectly involving the Company through one or more intermediaries)
                of
                (x) a merger, consolidation, reorganization, or business combination
                or
                (y) a sale or other disposition of all or substantially all of the
                Company’s assets or (z) the acquisition of assets or stock of another
                entity, in each case other than a transaction:

            

    

     

    
      	 	
              (1)
                

            	
              Which
                results in the Company’s voting securities outstanding immediately before
                the transaction continuing to represent (either by the remaining
                outstanding or by being converted into voting securities of the Company
                or
                the person that, as a result of the transaction, controls, directly
                or
                indirectly, the Company or owns, directly or indirectly, all or
                substantially all of the Company’s assets or otherwise succeeds to the
                business of the Company (the Company or such person, the “Successor
                Entity”))
                directly or indirectly, at least a majority of the combined voting
                power
                of the Successor Entity’s outstanding voting securities immediately after
                the transaction; and 

            

    

     

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

     

    
      	 	
              (2)
                

            	
              After
                which no person or group beneficially owns voting securities representing
                50% or more of the combined voting power of the Successor Entity;
                provided,
                however,
                that no person or group shall be treated for purposes of this clause
                (2)
                as beneficially owning 50% or more of combined voting power of the
                Successor Entity solely as a result of the voting power held in the
                Company prior to the consummation of the transaction;
                or

            

    

    

    
      	 	
              (D)
                

            	
              The
                Company’s stockholders approve a liquidation or dissolution of the
                Company. 

            

    

     

    The
      Committee shall have full and final authority, which shall be exercised in
      its
      discretion, to determine conclusively whether a Change of Control of the Company
      has occurred pursuant to the above definition, and the date of the occurrence
      of
      such Change of Control and any incidental matters relating thereto.

    

    
      	 	
              (ii)

            	
              For
                purposes of Section
                8(b),
                stock ownership is determined under Section 409A of the
                Code.

            

    

    

    
      	 	
              (c)

            	
              Change
                in Control Price.
                For purposes of the Plan, “Change
                in Control Price”
                means the lowest of (i) the highest reported sales price of a share
                of
                Stock in any transaction reported on the Nasdaq Capital Market, the
                Nasdaq
                National Stock Market, or other national securities exchange on which
                such
                shares are listed, as applicable, during the 60-day period prior
                to and
                including the date of a Change in Control, (ii) if the Change in
                Control
                is the result of a tender or exchange offer or a Corporate Transaction,
                the highest price per share of Stock paid in such tender or exchange
                offer
                or Corporate Transaction, and (iii) the Fair Market Value of a share
                of
                Stock upon the Change in Control. To the extent that the consideration
                paid in any such transaction described above consists all or in part
                of
                securities or other non-cash consideration, the value of such securities
                or other non-cash consideration shall be determined in the sole discretion
                of the Board. The Participant shall receive the same form of consideration
                as holders of common stock, subject to the same restrictions and
                limitations and indemnification obligations as the holders of common
                stock
                and will execute any and all documents required by the Administrator
                to
                evidence the same. 

            

    

     

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

     

    
      	
              9.

            	
              MISCELLANEOUS.

            

    

    

    
      	 	
              (a)

            	
              Amendment.
                The Board may at any time terminate, amend, alter, or discontinue
                the
                Plan, but no amendment, alteration or discontinuation shall be made
                which
                would adversely affect the rights of a Participant under an Award
                theretofore granted without the Participant’s consent, except such an
                amendment (i) made to avoid an expense charge to the Company or an
                Affiliate under applicable law or regulation, (ii) made to permit
                the
                Company or an Affiliate a deduction under the Code, or (iii) made
                to avoid
                the violation of Section 409A of the Code. No such amendment or alteration
                shall be made without the approval of a majority vote of the Company’s
                shareholders, present in person or by proxy at any special or annual
                meeting of the shareholders to the extent such approval is required
                by
                law, agreement or the rules of any stock exchange or market on which
                the
                Stock is listed.

            

    

    

    The
      Administrator may amend the terms of any Stock Option or other Award theretofore
      granted, prospectively or retroactively, but except as provided in Section
      3
      hereof
      no such amendment shall adversely affect the rights of a Participant without
      the
      Participant’s consent.

    

    
      	 	
              (b)

            	
              Unfunded
                Status of Plan.
                It
                is intended that this Plan be an “unfunded” plan for incentive and
                deferred compensation. The Administrator may authorize the creation
                of
                trusts or other arrangements to meet the obligations created under
                this
                Plan to deliver Stock or make payments, provided that,
                unless the Administrator otherwise determines, the existence of such
                trusts or other arrangements is consistent with the “unfunded” status of
                this Plan.

            

    

     

    
      	 	
              (c)

            	
              General
                Provisions.

            

      	 	 	 

    

    
      	 	
              (i)

            	
              Unless
                the shares to be issued in connection with an Award are registered
                prior
                to the issuance thereof under the Securities Act of 1933, as amended,
                the
                Administrator may require each person purchasing or receiving shares
                pursuant to an Award to represent to and agree with the Company in
                writing
                that such person is acquiring the shares for his or her own account
                as an
                investment without a view to or for sale in connection with, the
                distribution thereof. The certificates for such shares may include
                any
                legend which the Administrator deems appropriate to reflect any
                restrictions on transfer.

            

    

     

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

    All
      certificates for shares of Stock or other securities delivered under the Plan
      shall be subject to such stock transfer orders and other restrictions as the
      Administrator may deem advisable under the rules, regulations and other
      requirements of the Commission, any stock exchange or market on which the Stock
      is then listed and any applicable Federal or state securities law, and the
      Administrator may cause a legend or legends to be put on any such certificates
      to make appropriate reference to such restrictions.

    

    
      	 	
              (ii)

            	
              Nothing
                contained in the Plan shall prevent the Company or any Affiliate
                from
                adopting other or additional compensation arrangements for its
                employees.

            

    

    

    
      	 	
              (iii)

            	
              The
                adoption of the Plan shall not confer upon any employee, director,
                associate, consultant or advisor any right to continued employment,
                directorship or service, nor shall it interfere in any way with the
                right
                of the Company or any Subsidiary or Affiliate to terminate the employment
                or service of any employee, consultant or advisor at any
                time.

            

    

    

    
      	 	
              (iv)

            	
              No
                later than the date as of which an amount first becomes includible
                in the
                gross income of the Participant for Federal income tax purposes with
                respect to any Award under the Plan, the Participant shall pay to
                the
                Company, or make arrangements satisfactory to the Company regarding
                the
                payment of, any Federal, state, local or foreign taxes of any kind
                required by law to be withheld with respect to such amount. Unless
                otherwise determined by the Administrator, withholding obligations
                may be
                settled with Stock, including Stock that is part of the Award that
                gives
                rise to the withholding requirement. The obligations of the Company
                under
                the Plan shall be conditional on such payment or arrangements, and
                the
                Company, its Subsidiaries and its Affiliates shall, to the extent
                permitted by law, have the right to deduct any such taxes from any
                payment
                otherwise due to the Participant. The Administrator may establish
                such
                procedures as it deems appropriate for the settlement of withholding
                obligations with Stock.

            

    

    

    
      	 	
              (v)

            	
              The
                Administrator shall establish such procedures as it deems appropriate
                for
                a Participant to designate a beneficiary to whom any amounts payable
                in
                the event of the Participant’s death are to be paid. In the event of the
                death of a Participant, a condition of exercising any Award shall
                be the
                delivery to the Company of such tax waivers and other documents as
                the
                Administrator shall determine.

            

    

    

    
      	 	
              (vi)

            	
              Neither
                any Participant nor his or her legal representatives, legatees or
                distributees shall be or be deemed to be the holder of any share
                of Stock
                covered hereby unless and until a certificate for such share has
                been
                issued. Upon payment of the purchase price thereof, a share shall
                be fully
                paid and non-assessable. 

            

    

     

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

     

    
      	 	
              (vii)

            	
              The
                grant of an Award shall in no way affect the right of the Company
                to
                adjust, reclassify, reorganize or otherwise change its capital or
                business
                structure or to merge, consolidate, dissolve, liquidate or sell or
                transfer all or any part of its business or assets, or issue bonds,
                debentures, preferred or prior preference stock ahead of or affecting
                the
                Stock, or take any other corporate act or proceeding whether of a
                similar
                character or otherwise.

            

    

    

    
      	 	
              (viii)

            	
              If
                any payment or right accruing to a Participant under this Plan (without
                the application of this Section
                9(c)(viii)),
                either alone or together with other payments or rights accruing to
                the
                Participant from the Company or an Affiliate (“Total
                Payments”)
                would constitute a “parachute payment” (as defined in Section 280G of the
                Code and regulations thereunder), such payment or right shall be
                reduced
                to the largest amount or greatest right that will result in no portion
                of
                the amount payable or right accruing under this Plan being subject
                to an
                excise tax under Section 4999 of the Code or being disallowed as
                a
                deduction under Section 280G of the Code; provided,
                however,
                that the foregoing shall not apply to the extent provided otherwise
                in an
                Award or in the event the Participant is party to an agreement with
                the
                Company or an Affiliate that explicitly provides for an alternate
                treatment of payments or rights that would constitute “parachute
                payments.” The determination of whether any reduction in the rights or
                payments under this Plan is to apply shall be made by the Administrator
                in
                good faith after consultation with the Participant, and such determination
                shall be conclusive and binding on the Participant. The Participant
                shall
                cooperate in good faith with the Administrator in making such
                determination and providing the necessary information for this purpose.
                The foregoing provisions of this Section
                9(c)(viii)
                shall apply with respect to any person only if, after reduction for
                any
                applicable Federal excise tax imposed by Section 4999 of the Code
                and
                Federal income tax imposed by the Code, the Total Payments accruing
                to
                such person would be less than the amount of the Total Payments as
                reduced, if applicable, under the foregoing provisions of this Plan
                and
                after reduction for only Federal income taxes.

            

    

    

    
      	 	
              (ix)

            	
              To
                the extent that the Administrator determines that the restrictions
                imposed
                by the Plan preclude the achievement of the material purposes of
                the
                Awards in jurisdictions outside the United States, the Administrator
                in
                its discretion may modify those restrictions as it determines to
                be
                necessary or appropriate to conform to applicable requirements or
                practices of jurisdictions outside of the United
                States.

            

    

     

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

     

    
      	 	
              (x)

            	
              The
                headings contained in this Plan are for reference purposes only and
                shall
                not affect the meaning or interpretation of this
                Plan.

            

    

    

    
      	 	
              (xi)

            	
              If
                any provision of this Plan shall for any reason be held to be invalid
                or
                unenforceable, such invalidity or unenforceability shall not effect
                any
                other provision hereby, and this Plan shall be construed as if such
                invalid or unenforceable provision were
                omitted.

            

    

    

    
      	 	
              (xii)

            	
              This
                Plan shall inure to the benefit of and be binding upon each successor
                and
                assign of the Company. All obligations imposed upon a Participant,
                and all
                rights granted to the Company hereunder, shall be binding upon the
                Participant’s heirs, legal representatives and
                successors.

            

    

    

    
      	 	
              (xiii)

            	
              This
                Plan and each agreement granting an Award constitute the entire agreement
                with respect to the subject matter hereof and thereof, provided that
                in
                the event of any inconsistency between this Plan and such agreement,
                the
                terms and conditions of the Plan shall
                control.

            

    

    

    
      	 	
              (xiv)

            	
              In
                the event there is an effective registration statement under the
                Securities Act pursuant to which shares of Stock shall be offered
                for sale
                in an underwritten offering, a Participant shall not, during the
                period
                requested by the underwriters managing the registered public offering,
                effect any public sale or distribution of shares of Stock received,
                directly or indirectly, as an Award or pursuant to the exercise or
                settlement of an Award.

            

    

    

    
      	 	
              (xv)

            	
              None
                of the Company, an Affiliate or the Administrator shall have any
                duty or
                obligation to disclose affirmatively to a record or beneficial holder
                of
                Stock or an Award, and such holder shall have no right to be advised
                of,
                any material information regarding the Company or any Affiliate at
                any
                time prior to, upon or in connection with receipt or the exercise
                of an
                Award or the Company’s purchase of Stock or an Award from such holder in
                accordance with the terms hereof.

            

    

    

    
      	 	
              (xvi)

            	
              This
                Plan, and all Awards, agreements and actions hereunder, shall be
                governed
                by, and construed in accordance with, the laws of the state of Delaware
                (other than its law respecting choice of
                law).

            

    

     

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

     

    
      	 	
              (xvii)

            	
              No
                Award granted pursuant to this Plan is intended to constitute “deferred
                compensation” as defined in Section 409A of the Code, and the Plan and the
                terms of all Awards shall be interpreted accordingly. If any provision
                of
                the Plan or an Award contravenes any regulations or Treasury guidance
                promulgated under Section 409A of the Code or could cause an Award
                to be
                subject to the penalties and interest under Section 409A of the Code,
                such
                provision of the Plan or Award shall be modified to maintain, to
                the
                maximum extent practicable, the original intent of the applicable
                provision without violating the provisions of Section 409A of the
                Code.

            

    

    

    
      	
              10.

            	
              DEFINITIONS.

            

    

    

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

    

    
      	 	
              (a)

            	
              “Affiliate”
                means a corporation or other entity (i) controlled by the Company
                and
                which, in the case of grants of Stock Options and Stock Appreciation
                Rights would, together with the Company, be classified as the “service
                recipient” (as defined in the regulations under Section 409A of the Code)
                with respect to an Eligible Individual, and (ii) is designated by
                the
                Administrator as such.

            

    

    

    
      	 	
              (b)

            	
              “Award”
                means a Stock Appreciation Right, Stock Option or Stock Award.
                

            

    

    

    
      	
            	(c)	
              “Board”
                means the Board of Directors of the
                Company.

            

    

    

    
      	 	
              (d)

            	
              “Cause”
                means (i) the commission by the Participant of any act or omission
                that
                would constitute a felony or any crime of moral turpitude under Federal
                law or the law of the state or foreign law in which such action occurred,
                (ii) dishonesty, disloyalty, fraud, embezzlement, theft, disclosure
                of
                trade secrets or confidential information or other acts or omissions
                that
                result in a breach of fiduciary or other material duty to the Company
                and/or a Subsidiary; or (iii) continued reporting to work or working
                under
                the influence of alcohol, an illegal drug, an intoxicant or a controlled
                substance which renders Participant incapable of performing his or
                her
                material duties to the satisfaction of the Company and/or its
                Subsidiaries. Notwithstanding the foregoing, if the Participant and
                the
                Company or the Affiliate have entered into an employment or services
                agreement which defines the term “Cause”
                (or a similar term), such definition shall govern for purposes of
                determining whether such Participant has been terminated for Cause
                for
                purposes of this Plan. The determination of Cause shall be made by
                the
                Administrator, in its sole
                discretion.

            

    

    

    
      	 	
              (e)

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

            

    

     

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

     

    
      	 	
              (f)
                

            	
              “Commission”
                means the Securities and Exchange Commission or any successor
                agency.

            

    

    

    
      	 	
              (g)

            	
              “Committee”
                means a committee of Directors appointed by the Board to administer
                this
                Plan. Insofar as the Committee is responsible for granting Awards
                to
                Participants hereunder, it shall consist solely of two or more directors,
                each of whom is a “non-employee director” within the meaning of Rule
                16b-3, an “outside director” under Section 162(m) of the Code, an
                “independent director” as defined by the Sarbanes-Oxley Act of 2002, and
                “independent” as defined by the rules of any stock exchange or market on
                which the Stock is listed.

            

    

    

    
      	 	
              (h)

            	
              “Covered
                Employee”
                means a person who is a “covered employee” within the meaning of Section
                162(m) of the Code.

            

    

    

    
      	 	
              (i)

            	
              “Director”
                means a member of the Company’s
                Board.

            

    

    

    
      	 	
              (j)

            	
              “Disability”
                means mental or physical illness that entitles the Participant to
                receive
                benefits under the long-term disability plan of the Company or an
                Affiliate, or if the Participant is not covered by such a plan or
                the
                Participant is not an employee of the Company or an Affiliate, a
                mental or
                physical illness that renders a Participant totally and permanently
                incapable of performing the Participant’s duties for the Company or an
                Affiliate; provided,
                however,
                that a Disability shall not qualify under this Plan if it is the
                result of
                (i) a willfully self-inflicted injury or willfully self-induced sickness;
                or (ii) an injury or disease contracted, suffered or incurred while
                participating in a criminal offense. Notwithstanding the foregoing,
                if the
                Participant and the Company or an Affiliate have entered into an
                employment or services agreement which defines the term “Disability”
                (or a similar term), such definition shall govern for purposes of
                determining whether such Participant suffers a Disability for purposes
                of
                this Plan. The determination of Disability shall be made by the
                Administrator, in its sole discretion. The determination of Disability
                for
                purposes of this Plan shall not be construed to be an admission of
                disability for any other purpose.

            

    

    

    
      	
            	(k)	
              “Effective
                Date”
                means July 1, 2006.

            

    

    

    
      	 	
              (l)

            	
              “Eligible
                Individual”
                means any (i) officer, employee, associate or director of the Company
                or a
                Subsidiary or Affiliate, (ii) any consultant or advisor providing
                services
                to the Company or a Subsidiary or Affiliate, or (iii) employees of
                (x) a
                corporation or other business enterprise which has been acquired
                by the
                Company or a Subsidiary, which, in the case of grants of Stock Options
                and
                Stock Appreciation Rights would, together with the Company and, if
                applicable, the Subsidiary, be classified as the “service recipient” (as
                defined in the regulations under Section 409A of the Code) with respect
                to
                such employees and (y) who hold options with respect to the stock
                of such
                corporation which the Company has agreed to assume.
                

            

    

     

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

     

    
      	 	
              (m)

            	
              “Exchange
                Act”
                means the Securities Exchange Act of 1934, as amended from time to
                time,
                and any successor thereto.

            

    

    

    
      	 	
              (n)

            	
              “Fair
                Market Value”
                means, as of any given date, the fair market value of the Stock as
                determined by the Administrator or under procedures established by
                the
                Administrator, in accordance with Section 409A of the Code and the
                regulations issued thereunder. Unless otherwise determined by the
                Administrator, the Fair Market Value per share on any date shall
                be the
                most recent closing sales price per share of the Stock on the Nasdaq
                Capital Market, the Nasdaq National Stock Market, or the principal
                stock
                exchange or market on which the Stock is then traded on the business
                day
                preceding the date as of which such value is being determined or
                the last
                previous day on which a sale was reported if no sale of the Stock
                was
                reported on such date on such Exchange on such business day.
                

            

    

    

    
      	 	
              (o)

            	
              “Family
                Member”
                means any child, stepchild, grandchild, parent, stepparent, grandparent,
                spouse, former spouse, sibling, niece, nephew, mother-in-law,
                father-in-law, son-in-law, daughter-in-law, brother-in-law or
                sister-in-law of a Participant (including adoptive relationships);
                any
                person sharing the Participant’s household (other than a tenant or
                employee); any trust in which the Participant and any of these persons
                have all of the beneficial interest; any foundation in which the
                Participant and any of these persons control the management of the
                assets;
                any corporation, partnership, limited liability company or other
                entity in
                which the Participant and any of these other persons are the direct
                and
                beneficial owners of all of the equity interests (provided
                the Participant and these other persons agree in writing to remain
                the
                direct and beneficial owners of all such equity interests); and any
                personal representative of the Participant upon the Participant’s death
                for purposes of administration of the Participant’s estate or upon the
                Participant’s incompetency for purposes of the protection and management
                of the assets of the Participant.

            

    

    

    
      	 	
              (p)

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

            

    

    

    
      	 	
              (q)

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

            

    

    

    
      	 	
              (r)

            	
              “Optionee”
                means a person who holds a Stock
                Option.

            

    

     

    
      
         

      

      
        25

        
          

        

      

      
         

      

    

     

    
      	 	
              (s)

            	
              “Participant”
                means a person granted an Award.

            

    

    

    
      	
            	(t)	
              “Performance
                Award”
                means a right, granted to a Participant under Section
                7,
                to receive
                Awards based upon performance criteria specified by the
                Administrator.

            

    

    

    
      	 	
              (u)

            	
              “Representative”
                means (i) the person or entity acting as the executor or administrator
                of
                a Participant’s estate pursuant to the last will and testament of a
                Participant or pursuant to the laws of the jurisdiction in which
                the
                Participant had his or her primary residence at the date of the
                Participant’s death; (ii) the person or entity acting as the guardian
                or temporary guardian of a Participant; (iii) the person or entity
                which is the beneficiary of the Participant upon or following the
                Participant’s death; or (iv) any person to whom an Option has been
                transferred with the permission of the Administrator or by operation
                of
                law; provided that
                only one of the foregoing shall be the Representative at any point
                in time
                as determined under applicable law and recognized by the
                Administrator.

            

    

    

    
      	 	
              (v)

            	
              “Retirement”
                means termination of employment or provision of services without
                Cause,
                death or Disability on or after age 65 with 5 years of
                service.

            

    

    

    
      	 	
              (w)

            	
              “Stock”
                means the common stock, par value $----0.005 per share, of the
                Company.

            

    

    

    
      	 	
              (x)

            	
              “Stock
                Appreciation Right”
                means a right granted under Section
                5.

            

    

    

    
      	 	
              (y)

            	
              “Stock
                Award”
                means an Award, other than a Stock Option or Stock Appreciation Right,
                made in Stock or denominated in shares of
                Stock.

            

    

    

    
      	 	
              (z)

            	
              “Stock
                Option”
                means an option granted under Section
                4.

            

    

    

    
      	 	
              (aa)

            	
              “Subsidiary”
                means any company during any period in which it is a “subsidiary
                corporation” (as such term is defined in Section 424(f) of the Code) with
                respect to the Company.

            

    

    

    
      	 	
              (bb)

            	
              “Ten
                Percent Holder”
                means an individual who owns, or is deemed to own, stock possessing
                more
                than 10% of the total combined voting power of all classes of stock
                of the
                Company or of any parent or subsidiary corporation of the Company,
                determined pursuant to the rules applicable to Section 422(b)(6)
                of the
                Code.

            

    

    

    In
      addition, certain other terms used herein have the definitions given to them
      in
      the first places in which they are used.

     

     

    
      
         

      

      
        26Unassociated Document

    EXHIBIT
      4.1 - SPECIMEN COMMON STOCK CERTIFICATE

     

    STOCK
      CERTIFICATE 

     

    INCORPORATED
      UNDER THE LAWS OF THE 

    STATE
      OF
      DELAWARE 

     

    
      	
              Number

            	
              Shares

            

    

    

    INFO-HOLD,
      INC.

     

    Common
      Stock, $.000001 Par Value 

     

     

    THIS
      CERTIFIES THAT ________________
      is
      the owner of _______
      Shares
      of
      the
      Common Stock of 

     

    Info-hold,
      Inc. 

     

    Transferable
      only on the books of the Corporation by the holder hereof in person or by
      Attorney upon surrender of this Certificate properly endorsed.

     

        IN
      WITNESS
      WHEREOF t
      he said
      Corporation has caused this Certificate to be signed by its duly authorized
      officers and to be sealed with the seal of the Corporation this____ day of
      _____, A.D.200____. 

     

    
      	 	 	 	 
	
              

              Kevin
                McCullough

              Secretary
                

            	 	 	
              

              Joey
                C.
                Hazenfield                                                     
                

              President
                

            

    

     

    THE
      CORPORATION WILL FURNISH WITHOUT CHARGE TO EACH SHAREHOLDER WHO SO REQUESTS,
      THE
      DESIGNATIONS, PREFERENCES AND RIGHTS ON EACH CLASS OF STOCK OR SERIES THEREOF
      AND THE QUALIFICATION, LIMITATIONS OR RESTRICTION OF SUCH PREFERENCES AND/OR
      RIGHTS. 

     

            For
      Value Received, ______________ hereby sell, assign and transfer unto
      __________________ Shares represented by the within Certificate, and do hereby
      irrevocably constitute and appoint _________ Attorney to transfer the said
      Shares on the books of the within named Corporation with full power of
      substitution in the premises. 

     

    
      	 	 	 
	 	 
	 
 	 
 	 
 
	Dated
              _________________________	 	 
	 	
              
Signature
	
               

              In presence of 

               

              ________________________________

            	
              [NOTICE.
                THE SIGNATURE OF THIS ASSIGNMENT MUST CORRESPOND 

              WITH
                THE NAME AS WRITTEN UPON THE FACE OF THE CERTIFICATE, 

              IN
                EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT, OR 

              ANY
                CHANGE WHATEVER.]

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