Document:

exv10w111

 

EXHIBIT 10.111

AMENDMENT TO CONVERTIBLE NOTE

               This Amendment to the Convertible Note (the “Note”), dated as of May 31, 2006 executed by
Sedona Corporation (the “Maker”) payable to the order of Charles F. Mitchell (the “Holder”),
in the principal amount of THREE HUNDRED THOUSAND and no/100 dollars ($300,000.00), is entered
into as of March 6, 2008.

	 	 	Whereas, the Note was originally due to mature on May 31, 2008
(the “Maturity Date”); and
	 
	 	 	Whereas, Maker has made no payments under the Note to date; and
	 
	 	 	Whereas, Maker and the Holder desire to further extend the Maturity Date;
	 
	 	 	Now Therefore, for good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the parties agree to amend the Note as follows:

	 	1. The Maturity Date of the Note shall be further extended until October
23, 2009.
	 
	 	2. To effectuate the foregoing:
	 
	 	  Section 1 (d) of the Note shall be replaced in its entirety by the following:

	 	 	“The term “Maturity” shall mean the date on which this shall be due and payable in
full, which date shall be October 23, 2009.

	 	  Section 2 of the Note shall be replaced in its entirety by the following:

	 	 	 	     “Payment Terms. This Loan shall be effective commencing on the
effective date and continuing until Maturity. The Maker shall be obligated to make
one payment of all outstanding principal and interest due thereon at Maturity.
Unless otherwise designated in writing, mailed or delivered to Maker, the place for
payment of the indebtedness evidenced by this Note shall be the Holder’s principal
address as noted above. Payments received on this Note shall be applied first to
accrued interest, and the balance to principal.”

	 	3. Capitalized terms not defined herein shall have the meanings ascribed
to them in the Note.

 

 

	 	4. Except as amended by this Amendment, the Note shall remain in full force and effect,
enforceable in accordance with its terms and Maker hereby reaffirms and acknowledges
all of its obligations thereunder.

          IN WITNESS WHEREOF, the parties have executed this Amendment as of the date first written
above.

	 	 	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	Charles F. Mitchell	 
	 	 	 
	 	 	 
	 
	 	Sedona Corporation	 
	 	 	 
	 	 	 
	 	By:  	Marco Emrich, President
 

-2-EXHIBIT 10.65

                           U.S. HELICOPTER CORPORATION
                            2007 STOCK INCENTIVE PLAN

         1. OBJECTIVES. The U.S. Helicopter Corporation 2007 Stock Incentive
Plan (the "Plan") is designed to attract, motivate and retain selected
employees, non-employee directors and other individuals providing services to
the Company. These objectives are accomplished by making long-term incentive and
other awards under the Plan, thereby providing Participants with a proprietary
interest in the growth and performance of the Company.

         2. DEFINITIONS.

                  (a) AWARD. The grant of any form of stock option, stock
                  appreciation right or restricted stock award, whether granted
                  singly, in combination or in tandem, to a Participant pursuant
                  to such terms, conditions, performance requirements, and
                  limitations and restrictions as the Committee may establish in
                  order to fulfill the objectives of the Plan.

                  (b) AWARD AGREEMENT. An agreement between the Company and a
                  Participant setting forth the terms, conditions, performance
                  requirements, limitations and restrictions applicable to an
                  Award.

                  (c) BOARD. The Board of Directors of U.S. Helicopter
                  Corporation.

                  (d) CAUSE. Cause shall mean the definition of cause set forth
                  in any written employment agreement between the Company and
                  the Participant and in the event there is no such agreement
                  Cause shall mean: (i) the Participant acting fraudulently in
                  his or her relations with the Company; (ii) the Participant
                  misappropriating or doing material, intentional damage to the
                  property of the Company; (iii) the substantial breach or
                  continuous neglect by the Participant of his or her employment
                  obligations, or willful misconduct by the Participant in the
                  performance of such obligations which occurs or persists after
                  notice and an opportunity to cure; (iv) the Participant being
                  convicted of a felony; or (v) the Participant's failure to act
                  in the best interest of the Company or breach of his or her
                  fiduciary duties to the Company.

                  (e) CHANGE IN CONTROL. The occurrence of any of the following
                  events:

                           (i) The members of the Board at the beginning of any
                           consecutive twenty-four calendar month period (the
                           "Incumbent Directors") cease for any reason other
                           than due to death to constitute at least a majority
                           of the members of the Board, provided that any
                           director whose election, or nomination for election
                           by the Company's stockholders, was approved by a vote
                           of at least a majority of the members of the Board

                                      -1-
<PAGE>

                           then still in office who were members of the Board at
                           the beginning of such twenty-four calendar month
                           period other than as a result of a proxy contest, or
                           any agreement arising out of an actual or threatened
                           proxy contest, shall be treated as an incumbent
                           director; or

                           (ii) Any "person," including a "group" (as such terms
                           are used in Sections 13(d) and 14(d)(2) of the
                           Exchange Act), but excluding the Company, any
                           affiliate, or any employee benefit plan of the
                           Company, or any affiliate is or becomes the
                           "beneficial owner" (as defined in Rule 13(d)(3) under
                           the Exchange Act), directly or indirectly, of
                           securities of the Company representing 50% or more of
                           the combined voting power of the Company's then
                           outstanding securities; or

                           (iii) The approval by the stockholders of the Company
                           of (A) a merger or other business combination or any
                           other corporate reorganization, if more than 50% of
                           the combined voting power of the continuing or
                           surviving entity's securities outstanding immediately
                           after such merger, consolidation or other
                           reorganization is owned by persons who were not
                           stockholders of the Company immediately prior to such
                           merger, consolidation or other reorganization, or (B)
                           the sale or other disposition of all or substantially
                           all of the assets of the Company to any other entity;
                           or

                           (iv) The purchase of Stock pursuant to any tender or
                           exchange offer made by any "person", including a
                           "group" (as such terms are used in Sections 13(d) and
                           14(d)(2) of the Exchange Act), other than the
                           Company, or any affiliate, or an employee benefit
                           plan of the Company or any of its affiliates, for 30%
                           or more of the Stock of the Company.

                           Notwithstanding the foregoing, a "Change in Control"
                           shall not be deemed to occur in the event the Company
                           files for bankruptcy, liquidation or reorganization
                           under the United States Bankruptcy Code.

                  (e) CHANGE IN CONTROL PRICE. The higher of (i) the highest
                  price per share of Stock offered in conjunction with any
                  transaction resulting in a Change in Control (as determined in
                  good faith by the Committee if any part of the offered price
                  is payable other than in cash) or, (ii) the highest Fair
                  Market Value of the Stock on any of the 30 trading days
                  immediately preceding the date on which a Change in Control
                  occurs.

                  (f) CODE. The Internal Revenue Code of 1986, as amended from
                  time to time.

                                      -2-
<PAGE>

                  (g) COMMITTEE. The committee of the Board as may be designated
                  from time to time by the Board to administer the Plan. If at
                  any time no Committee shall be in office, then the functions
                  of the Committee specified in the Plan shall be exercised by
                  the Board.

                  (h) COMPANY. U.S. Helicopter Corporation and its direct and
                  indirect subsidiaries.

                  (i) DISABLED OR DISABILITY. Permanent and total disability as
                  determined under the Company's long-term disability program
                  or, if no such program has been adopted, the continuous
                  absence of an employee for 187 consecutive days or more due to
                  physical or mental illness or incapacity.

                  (j) EXCHANGE ACT. Securities Exchange Act of 1934, as amended,
                  together with the rules and regulations thereunder.

                  (k) FAIR MARKET VALUE. The value of a share of Stock on a
                  particular date, determined as follows: (i) if the Stock is
                  not listed on such date on any national securities exchange
                  but is traded in the over-the-counter market, the mean between
                  the highest "bid" and lowest "offered" quotations of a share
                  of Stock on such date (or if none, on the most recent date on
                  which there were bid and offered quotations of a share of
                  Stock), as reported on the National Association of Securities
                  Dealers, Inc. Automated Quotation System, or, if not so
                  reported, as reported by the National Quotation Bureau,
                  Incorporated, or any other similar service selected by the
                  Board; or (ii) if the Stock is listed on such date on one or
                  more national securities exchanges, the last reported sale
                  price of a share of Stock on such date as recorded on the
                  composite tape system, or, if such system does not cover the
                  Stock, the last reported sale price of a share of Stock on
                  such date on the principal national securities exchange on
                  which the Stock is listed, or if no sale of Stock took place
                  on such date, the last reported sale price of a share of Stock
                  on the most recent day on which a sale of a share of Stock
                  took place as recorded by such system or on such exchange, as
                  the case may be; or (iii) if the Stock is neither listed on
                  such date on a national securities exchange nor traded in the
                  over-the-counter market, as determined by the Committee.

                  (l) PARTICIPANT. An individual to whom an Award has been made
                  under the Plan. Awards may be made to any employee,
                  non-employee director or any other individual providing
                  services to the Company. However, incentive stock options may
                  be granted only to individuals who are employed by the Company
                  or by a subsidiary corporation (within the meaning of Section
                  424(f) of the Code) of the Company, including a subsidiary
                  that becomes such after the adoption of the Plan.

                  (m) PUBLIC COMPANY STATUS. When the sale of securities
                  pursuant to a registration statement filed by the Company
                  under the Securities Act in connection with the firm
                  commitment underwritten offering of its securities to the
                  general public is consummated or when the Company first
                  becomes subject to the periodic reporting requirements of
                  Sections 12(g) or 15(d) of the Exchange Act, whichever event
                  shall first occur.

                                      -3-
<PAGE>

                  (n) SECURITIES ACT. Securities Act of 1933, as amended,
                  together with the rules and regulations thereunder.

                  (o) STOCK. Authorized and issued or unissued shares of common
                  stock of the Company or any security issued in exchange or
                  substitution therefor.

         3. STOCK AVAILABLE FOR AWARDS. Subject to Section 11 hereof, a total of
Six Million (6,000,000) shares of Stock shall be available for issuance pursuant
to Awards granted under the Plan. Shares of Stock may be made available from the
authorized but unissued shares of the Company or from shares held in the
Company's treasury and not reserved for some other purpose. For purposes of
determining the number of shares of Stock issued under the Plan, no shares shall
be deemed issued until they are actually delivered to a Participant, or such
other person in accordance with Section 7 hereof. Shares of Stock related to
Awards, or portions of Awards, that are forfeited, cancelled or terminated,
expire unexercised, are surrendered in exchange for other Awards, or are settled
in such manner that all or some of the shares of Stock covered by an Award are
not and will not be issued to a Participant, shall be restored to the total
number of shares of Stock available for issuance pursuant to Awards. Further,
shares tendered to or withheld by the Company in connection with the exercise of
stock options, or the payment of tax withholding on any Award, shall also be
available for future issuance under Awards.

         4. ADMINISTRATION. The Plan shall be administered by the Committee,
which shall have full power to select Participants, to interpret the Plan, to
grant waivers of Award restrictions, to continue, accelerate or suspend
exercisability, vesting or payment of an Award and to adopt such rules,
regulations and guidelines for carrying out the Plan as it may deem necessary or
proper. These powers include, but are not limited to, the adoption of
modifications, amendments, procedures, subplans and the like as are necessary to
comply with provisions of the laws and regulations of the countries in which the
Company operates in order to assure the viability of Awards granted under the
Plan and to enable Participants regardless of where employed to receive
advantages and benefits under the Plan and such laws and regulations.

         5. AWARDS. The Committee shall determine the types and timing of Awards
to be made to each Participant and shall set forth in the related Award
Agreement the terms, conditions, performance requirements, and limitations
applicable to each Award. Awards may include those listed below in this Section
5. Awards may be granted singly, in combination or in tandem, or in substitution
for, or as alternatives to, grants or rights under any other benefit plan of the
Company, including any plan of any entity acquired by, or merged with or into,
the Company. Awards shall be effected through Award Agreements executed by the
Company in such forms as are approved by the Committee from time to time.

                  The Committee may determine to make any or all of the
following Awards:

                                      -4-
<PAGE>

                  (a) STOCK OPTIONS. A grant of right to purchase a specified
                  number of shares of Stock at a specified exercise price. A
                  stock option may be in the form of (i) an incentive stock
                  option ("ISO") which, in addition to being subject to such
                  terms, conditions and limitations as are established by the
                  Committee, complies with Section 422 of the Code or (ii) a
                  non-qualified stock option subject to such terms, conditions
                  and limitations as are established by the Committee. The
                  aggregate Fair Market Value (as determined as of the time of
                  grant) of the Stock with respect to which ISOs are exercisable
                  for the first time by an employee in any calendar year under
                  the Plan (and/or any other incentive stock option plans of the
                  Company) shall not exceed $100,000. To the extent that any
                  Stock Option is not designated as an ISO or even if so
                  designated does not qualify as an ISO, it shall constitute a
                  Nonqualified Stock Option.

                  Stock Options granted under the Plan shall be subject to the
                  following terms and conditions and shall contain such
                  additional terms and conditions as the Committee shall deem
                  desirable and set forth in the Award Agreement:

                           (i) EXERCISE PRICE. The exercise price per share of
                           Common Stock shall not be less than the Fair Market
                           Value of the Common Stock subject to the Stock Option
                           on the date of grant; provided, however, that for any
                           Nonqualified Stock Option, the exercise price per
                           share of Common Stock may, alternatively, be fixed at
                           any price deemed to be fair and reasonable, as of the
                           date of grant, by the Committee but shall not be less
                           than 85% of the Fair Market Value of the Stock
                           subject to the Stock Option on the date of grant.

                           (ii) OPTION TERM. The term of each Stock Option shall
                           be fixed by the Committee, but no ISO shall be
                           exercisable more than 10 years after the date the
                           Stock Option is granted.

                           (iii) EXERCISABILITY. Except as otherwise provided
                           herein, Stock Options shall be exercisable at such
                           time or times and subject to such terms and
                           conditions as shall be determined by the Committee at
                           the rate of at least 20% per year over five years
                           from the date of grant. If the Committee provides
                           that any Stock Option is exercisable only in
                           installments, the Committee may at any time waive
                           such installment exercise provisions, in whole or in
                           part, based on such factors as the Committee may
                           determine. In addition, the Committee may at any time
                           accelerate the exercisability of any Stock Option.

                           (iv) PAYMENT OF EXERCISE PRICE. The price at which
                           shares of Stock may be purchased under a Stock Option
                           shall be paid in full in cash at the time of the
                           exercise or, if permitted by the Committee, by means
                           of tendering Stock or surrendering another Award or
                           any combination thereof. The Committee shall
                           determine acceptable methods of tendering Stock or
                           other Awards and may impose such conditions on the
                           use of Stock or other Awards to exercise a Stock
                           Option as it deems appropriate.

                                      -5-
<PAGE>

                           (v) TEN PERCENT STOCKHOLDERS. An individual who owns
                           more than 10% of the total combined voting power of
                           all classes of outstanding stock of the Company, its
                           Parent or any of its Subsidiaries shall not be
                           eligible for the grant of an ISO unless (i) the
                           exercise price is at least 110% of the Fair Market
                           Value of the Stock on the date of grant and (ii) such
                           ISO by its terms is not exercisable after the
                           expiration of five years from the date of grant. For
                           purposes of this Subsection (v), in determining stock
                           ownership, the attribution rules of Section 424 (d)
                           of the Code shall be applied.

                  (b) STOCK APPRECIATION RIGHTS. A right to receive a payment,
                  in cash or Stock, equal in value to the excess of the Fair
                  Market Value of a specified number of shares of Stock on the
                  date the stock appreciation right ("SAR") is exercised over
                  the grant price of the SAR, which shall not be less than 100%
                  of the Fair Market Value on the date of grant of such SAR, as
                  determined by the Committee, provided that if an SAR is
                  granted in tandem with or in substitution for another award
                  granted under any plan of the Company, the grant price may be
                  the same as the exercise or designated price of such other
                  award.

                  (c) STOCK AWARDS. An Award may be made in restricted Stock or
                  denominated in units of Stock. All or part of any stock award
                  may be subject to conditions established by the Committee, and
                  set forth in the Award Agreement, which may include, but are
                  not limited to, continuous service with the Company,
                  achievement of specific business objectives, increases in
                  specified indices, attaining growth rates, and other
                  comparable measurements of the Company performance.

                           Each restricted Stock Award Agreement shall be
                  subject to the following terms and conditions and such
                  additional terms and conditions as the Committee shall deem
                  desirable and set forth the Award Agreement that are not
                  inconsistent with the Plan:

                           (i) Restricted Stock may be sold or awarded under the
                           Plan for such consideration as the Committee may
                           determine but shall not be less than 85% of the Fair
                           Market Value of such Stock.

                           (ii) Each Award of restricted Stock may or may not be
                           subject to vesting. Vesting shall occur, in full or
                           in installments, upon satisfaction of the conditions
                           specified in the restricted Stock Award Agreement and
                           shall vest at the rate of at least 20% per year over
                           five years from the date of grant.

                           (iii) A restricted Stock Award Agreement may provide
                           for accelerated vesting in the event of the
                           Participant's death, disability or retirement or
                           other events.

                                      -6-
<PAGE>

                           (iv) The holders of restricted Stock awarded under
                           the Plan shall have the same voting, dividend and
                           other rights as the Company's other stockholders.

                           (v) The provisions of the various restricted Stock
                           Award Agreements entered into under the Plan need not
                           be identical.

         6. TAX WITHHOLDING. Prior to the payment or settlement of any Award,
the Participant must pay, or make arrangements acceptable to the Company for the
payment of, any and all federal, state and local tax withholding that in the
opinion of the Company is required by law. The Company shall have the right to
deduct applicable taxes from any Award payment and withhold, at the time of
delivery or vesting of shares under the Plan, an appropriate number of shares
for payment of taxes required by law or to take such other action as may be
necessary in the opinion of the Company to satisfy all obligations for
withholding of such taxes.

         7.       TRANSFERABILITY.

                  (a) No Award shall be transferable or assignable, or payable
                  to or exercisable by, anyone other than the Participant to
                  whom it was granted, except, (i) by law, will or the laws of
                  descent and distribution, (ii) as a result of the Disability
                  of a Participant or (iii) that the Committee (in the form of
                  an Award Agreement or otherwise) may permit transfers of
                  Awards by gift or otherwise to a member of a Participant's
                  immediate family and/or trusts whose beneficiaries are members
                  of the Participant's immediate family, or to such other
                  persons or entities as may be approved by the Committee.
                  Notwithstanding the foregoing, in no event shall ISOs be
                  transferable or assignable other than by will or by the laws
                  of descent and distribution.

                  (b) All shares of Stock acquired by a Participant pursuant to
                  the Plan or upon the exercise of a Stock Option shall be
                  subject, prior to the time the Company acquires Public Company
                  Status, to special forfeiture conditions, rights of
                  repurchase, rights of refusal and other transfer restrictions
                  as set forth in the Award Agreement and a "lock-up" agreement
                  of the Participant that, if requested by the Company and an
                  underwriter of Common Stock of the Company, the Participant
                  will agree not to sell or otherwise transfer or dispose of any
                  shares of Common Stock of the Company held by the Participant
                  for a specified period of time (not to exceed 18 months)
                  following a public offering of securities of the Company.

                  Such restrictions shall be set forth in the applicable stock
                  Award Agreement and shall apply in addition to any
                  restrictions that may apply to holders of Stock generally.

                                      -7-
<PAGE>

                  Any right of the Company to repurchase the Participant's Stock
                  upon the termination of the Participant's services shall be at
                  Fair Market Value. Any such repurchase right may be exercised
                  for cash or for cancellation of indebtedness incurred in
                  purchasing the Stock for a period of 90 days after (i) the
                  death, Disability or termination of Participant's employment
                  and (ii) the date of exercise of any Option that is exercised
                  after the death, Disability or termination of Participant's
                  employment during the applicable exercise period set forth in
                  Section 8 of this Plan.

          8.      TERMINATION OF EMPLOYMENT; DEATH OR DISABILITY .

                  (a) TERMINATION OF EMPLOYMENT.

                  (i) RESIGNATION OR TERMINATION WITHOUT CAUSE. If Participant's
                  employment by the Company terminates for any reason other than
                  by reason of death or Disability or for Cause, all vested and
                  currently exercisable installments of any Option shall remain
                  exercisable for a period of thirty (30) days from the date of
                  termination and, to the extent not exercised, shall terminate
                  and all other non-vested installments of the Option shall
                  immediately and automatically terminate.

                  (ii) TERMINATION FOR CAUSE. If Participant's employment by the
                  Company terminates by virtue of a termination for Cause, the
                  Option, whether vested or not, shall terminate on the date
                  participant's employment terminates.

                  (b) DISABILITY OF PARTICIPANT. If Participant is unable to
                  continue his or her employment by the Company as a result of
                  Disability of the Participant, Participant may, but only
                  within six (6) months from the date of Disability, exercise
                  such portion of the Option which has vested as of the date of
                  such Disability, and such portion of the Option which has not
                  vested shall terminate. If Participant does not exercise such
                  portion of the Option which has vested and which Participant
                  was entitled to exercise within the time specified herein, the
                  Option shall terminate.

                  (c) DEATH OF PARTICIPANT. In the event of the death of
                  Participant during the term of the Option and while an
                  employee of the Company, the Option may be exercised, at any
                  time within six (6) months following the date of Participant's
                  death, by the Participant's estate or by a person who acquired
                  the right to exercise the Option by bequest or inheritance but
                  only to the extent that the Option has vested at the date of
                  death. If Participant's estate or a person who acquired the
                  right to exercise the Option by bequest or inheritance does
                  not exercise such portion of Participant's Option which has
                  vested and which the Participant was entitled to exercise in
                  the time specified herein, the Option shall terminate.

                                      -8-
<PAGE>

         9. CHANGE IN CONTROL.

                  (a) Subject to the provisions of Section 9(b) below, in the
                  event of a Change in Control, at the discretion of the
                  Committee, (i) each Stock Option shall either be cancelled in
                  exchange for a payment in cash of an amount equal to the
                  excess, if any, of the Change in Control Price over the
                  exercise price for such Stock Option, or be fully exercisable
                  regardless of the exercise schedule otherwise applicable to
                  such Stock Option and (ii) all restricted shares of Stock and
                  all SARs shall become nonforfeitable and be immediately
                  transferable or payable, as the case may be.

                  (b) Notwithstanding Section 9(a), no cancellation,
                  acceleration of exercisability, vesting, cash settlement or
                  other payment shall occur with respect to any Award or any
                  class of Awards if the Committee reasonably determines in good
                  faith prior to the occurrence of a Change in Control that such
                  Award or Awards shall be honored or assumed, or new rights
                  substituted therefor (such honored, assumed or substituted
                  award hereinafter called an "Alternative Award"), by a
                  Participant's employer (or the parent or an Affiliate of such
                  employer) immediately following the Change in Control,
                  provided that any such Alternative Award must:

                           (i) provide such Participant (or each Participant in
                           a class of Participant) with rights and entitlements
                           substantially equivalent to or be better than the
                           rights, terms and conditions applicable under such
                           Award, including, but not limited to, an identical or
                           better exercise or vesting schedule and identical or
                           better timing and methods of payment; and

                           (ii) have substantially equivalent economic value to
                           such Award (determined at the time of the Change in
                           Control).

         10. AMENDMENT, MODIFICATION, SUSPENSION OR TERMINATION OF THE PLAN. The
Board may amend, modify, suspend or terminate the Plan, (a) for the purpose of
meeting or addressing any changes in any applicable tax, securities or other
laws, rules or regulations or (b) for any other purpose permitted by law.

         11. ADJUSTMENTS. In the event of any change in the outstanding Stock of
the Company by reason of a stock split, stock dividend, combination or
reclassification of shares, recapitalization, merger or similar event, the
Committee may adjust proportionally (a) the number of shares of Stock (i)
available for issuance under the Plan, and (ii) covered by outstanding Awards
denominated in stock or units of Stock; (b) the exercise and grant prices
related to outstanding Awards; and (c) the appropriate Fair Market Value and
other price determinations for such Awards. In the event of any other change
affecting the Stock or any distribution to holders of Stock, such adjustments in
the number and kind of shares and the exercise, grant and conversion prices of
the affected Awards as may be deemed equitable by the Committee, including
adjustments to avoid fractional shares, shall be made to give proper effect to
such event.

                                      -9-
<PAGE>

         12.      SECURITIES LAWS.

                  (a) Stock shall not be issued pursuant to the Plan unless the
                  issuance and delivery of such stock complies with (or is
                  exempt from) all applicable requirements of law, including
                  (without limitation) the Securities Act of 1933, as amended,
                  the rules and regulations promulgated thereunder, state
                  securities laws and regulations, and the regulations of any
                  stock exchange or other securities market on which the
                  Company's securities may then be traded.

                  (b) The Company each year shall furnish to each Participant
                  holding an Option and each stockholder who has received Stock
                  under the Plan the Company's balance sheet and income
                  statement, unless such Participant or stockholder is a key
                  employee whose duties with the Company assure such person
                  access to equivalent information. Such balance sheet and
                  income statement need not be audited.

         13.      MISCELLANEOUS.

                  (a) Any notice to the Company required by any of the
                  provisions of the Plan shall be addressed to the Committee,
                  c/o the Secretary of the Company, and shall become effective
                  when it is received.

                  (b) The Plan shall be unfunded and the Company shall not be
                  required to establish any special account or fund or to
                  otherwise segregate or encumber assets to ensure payment of
                  any Award.

                  (c) Nothing contained in the Plan shall prevent the Company
                  from adopting other or additional compensation arrangements or
                  plans, subject to shareholder approval if such approval is
                  required, and such arrangements or plans may be either
                  generally applicable or applicable only in specific cases.

                  (d) No Participant shall have any claim or right to be granted
                  an Award under the Plan and nothing contained in the Plan
                  shall be deemed or be construed to give any Participant the
                  right to be retained in the employ of the Company or to
                  interfere with the right of the Company to discharge any
                  Participant at any time without regard to the effect such
                  discharge may have upon the Participant under the Plan. Except
                  to the extent otherwise provided in any plan or in an Award
                  Agreement, no Award under the Plan shall be deemed
                  compensation for purposes of computing benefits or
                  contributions under any other plan of the Company.

                  (e) The Plan and each Award Agreement shall be governed by the
                  laws of the State of Delaware, excluding any conflicts or
                  choice of law rule or principle that might otherwise refer
                  construction or interpretation of the Plan to the substantive
                  law of another jurisdiction.

                  (f) The Committee shall have full power and authority to
                  interpret the Plan and to make any determinations thereunder
                  and the Committee's determinations shall be binding and
                  conclusive. Determinations made by the Committee under the
                  Plan need not be uniform and may be made selectively among
                  individuals, whether or not such individuals are similarly
                  situated.

                                      -10-
<PAGE>

                  (g) If any provision of the Plan is or becomes or is deemed
                  invalid, illegal or unenforceable in any jurisdiction, or
                  would disqualify the Plan or any Award under any law deemed
                  applicable by the Committee, such provision shall be construed
                  or deemed amended or limited in scope to conform to applicable
                  laws or, in the discretion of the Committee, it shall be
                  stricken and the remainder of the Plan shall remain in full
                  force and effect.

                  (h) This Plan shall terminate on December 31, 2017 and no
                  Award shall be granted after that date.

                                      -11-

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