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Exhibit 10.6  

 
 

EMPLOYEE INTELLECTUAL PROPERTY ASSIGNMENT AND NONDISCLOSURE AGREEMENT    
    

        This Agreement is effective as of                        ,
200    ("Effective Date"), between                        ,
a                        corporation having its
principal office at                        (hereinafter identified as the "Company"),
and                        (the "Employee").
 

        In
consideration of the Employee's employment or continued employment and the Employee's receipt of compensation and Confidential Information, this Agreement being a condition thereof
and ancillary thereto, and the mutual promises and conditions contained herein, the parties agree as follows: 

        1.    At Will Employment.    The Company agrees to employ or continue to employ the Employee, and the Employee hereby
accepts such employment and agrees to perform in accordance with the terms and conditions set forth herein. Unless expressly provided in a separate written agreement with the
                        of the Company to the contrary, Employee's employment with the Company is for an unspecified duration and
constitutes "AT WILL" employment.

        2.    Duties.    Employee shall perform all duties reasonably necessary to carry out and commensurate with the
position more specifically described in Schedule 1 attached hereto. While employed by the Company, the Employee shall also perform such other reasonable duties and responsibilities for the
Company, and other entities affiliated with it, as may be assigned to the Employee from time to time by the Company. 

        3.    Extent of Service.    The Employee, if a full time employee, shall devote such time, attention, and energy to
the business of the Company as the Company shall reasonably require. Except for business activities specifically disclosed in writing and approved in writing by an authorized representative of the
Company, the Employee shall not during the term of his employment by the Company engage in any other business activity for gain, profit, or other pecuniary advantage if such activity interferes with
the Employee's duties and responsibilities to the Company. 

        4.    Disclosure of CONFIDENTIAL INFORMATION.    

        (a)   The
Employee recognizes and acknowledges that he will be provided with and have access to trade secrets and other confidential information of the Company, and other
entities doing business with the Company relating to research, development, manufacturing, marketing, financial and other business-related activities or may discover, conceive, perfect or develop,
solely or jointly with others, inventions, discoveries, improvements, know-how, computer programs, or other technical, manufacturing, marketing, customer, business and/or financial data
and information (hereinafter "CONFIDENTIAL INFORMATION"). Such CONFIDENTIAL INFORMATION constitutes valuable, special, and unique property of the Company and/or other entities doing business with the
Company. 

        (b)   The
Employee will not, during or after the term of his employment by the Company, make any use of or disclose any of such CONFIDENTIAL INFORMATION to any person or firm,
corporation, association, or other entity for any reason or purpose whatsoever, except as is generally available to the public or as specifically allowed in writing by an authorized representative of
the Company. 

        (c)   The
Employee agrees not to make improper use of or disclose any confidential information, including trade secrets, of prior employers or any other third party in
carrying out Employee's duties for Company. 

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        (d)   Employees
recognizes that the Company has received and in the future will receive trade secrets and other confidential information of third parties entities, subject to
a duty by the Company to maintain the confidentiality of and not make any unauthorized use of such third party information. Employee agrees to treat all such third party information as CONFIDENTIAL
INFORMATION. 

        (e)   In
the event of a breach or threatened breach by the Employee of the provisions of this Section 4, Company shall be entitled to an injunction restraining Employee
from disclosing and/or using, in whole or in part, such CONFIDENTIAL INFORMATION. Nothing herein shall be construed as prohibiting Company from pursuing other remedies available to Company for such
breach or threatened breach, including the recovery of damages from the Employee. 

        5.    Inventions or Discoveries.    

        (a)   The
Employee recognizes and acknowledges that during the term of his employment he may, either individually or jointly with others, and either on behalf of the Company
or on his own, discover, conceive, make, perfect, or develop inventions, discoveries, improvements, computer programs, know-how, and data that result from his employment or that are
related to the business or activities of the Company (hereinafter collectively referred to as "INVENTIONS"). INVENTIONS which are related to the business or activities of the Company include any
business or activity in progress at the Company at the date of or during the Employee's employment with the Company and projects or other operations at the Company planned for the future. Employee
agrees to advise and disclose said INVENTIONS to the Company. 

        (b)   The
Employee further recognizes and agrees that any and all such INVENTIONS, including all rights in patents, patent applications, design patents, models, prototypes,
copyrights, trade secrets and other intellectual property, shall be the sole and exclusive property of the Company. Employee agrees to assign and does hereby assign to the Company, all his right,
title and interest in and to any and all INVENTIONS and related intellectual property rights. The Employee's obligations herein apply without regard to whether an idea for an INVENTION or the solution
to a problem occurs to him on the job, at home, or elsewhere. 

        (c)   Employee
shall promptly execute and deliver all papers and documents necessary to vest all right, title and interest in and to INVENTIONS in the Company and, at the
Company's request and expense, shall assist Company in obtaining any patents, copyright registrations, semiconductor mask registrations, or any other form of protection accorded to such INVENTIONS in
the United States or anywhere throughout the world, and shall assign the same and any patents or copyright and semiconductor mask registrations granted thereon, to the Company. If the Company is
unable because of the Employee's mental or physical incapacity, his unwillingness, or for any other reason to secure Employee's signature to apply for or to pursue any application for patents or
copyright or semiconductor mask registrations on INVENTIONS or any copyrightable subject matter, Employee hereby irrevocably designates and appoints duly authorized officers of the Company as
Employee's agent and attorney in fact, to act for and in Employee's stead to execute and file any such applications and do all other lawfully permitted acts to further the prosecution and issuance of
patents or copyright and semiconductor mask registrations thereon. 

        6.    Copyright.    Employee agrees that the Company shall be the copyright owner of all copyrightable works of every
kind and description (including computer programs, mask works, internal reports, compilations of data, and publications) created or developed by Employee, either individually or jointly with others,
during the term of Employee's employment, where such works are created pursuant to the performance of Employee's duties or relate to the subject matter of Employee's employment. Employee acknowledges
that such copyrightable works are "works made for hire" under U.S. Copyright Law. Employee further agrees, if so requested by the Company, at no expense to the 

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Company,
to execute such written acknowledgments or assignments of copyright ownership of works covered by the Agreement as may be necessary to preserve or vest such rights in the Company. 

        7.    Prior Inventions or Discoveries.    As a matter of record, the Employee has set out in Schedule 2,
attached hereto, a complete list and description of all ideas, inventions, improvements, discoveries, computer programs, original works of authorship, semiconductor chip designs, or mask works,
previously conceived, reduced to practice, perfected, or developed by Employee, either wholly or in part (hereinafter "PRIOR INVENTIONS") and any patents, patent applications, or registrations issued
thereon. Only such PRIOR INVENTIONS and accompanying intellectual property rights, and no other, shall be excluded from this Agreement. Employee also agrees not to incorporate any PRIOR INVENTION
owned by him or in which he has an interest into a Company product or process without the Company's prior written consent. If in the course of employment, Employee incorporates a PRIOR INVENTION into
a Company product or process, Company shall be automatically granted a perpetual, nonexclusive, royalty-free, irrevocable worldwide license to make, have made, modify, use, and sell any
Company product or process which incorporates such PRIOR INVENTION. 

        8.    Notification of New Employer.    In the event that Employee leaves the employ of Company, Employee hereby
consents to the Company providing notification to Employee's new employer of Employee's rights and obligations pursuant to this Agreement. 

        9.    Non-solicitation of Employees.    Employee agrees that during the term of his employment and for a
period of twelve (12) months following the termination of his employment with Company for any reason, with or without cause, Employee will not employ or offer to employ any employees of the
Company or, directly or indirectly, solicit, induce, recruit, or encourage any Company employee to become an employee or contractor of any other person or entity. 

        10.    Non-Competition.    

        (a)   During
the term of employment with Company and for a period of twelve months (12) immediately following the termination of his relationship with Company, Employee
will not either directly or indirectly be connected with the management, operation, research and development efforts, marketing, sales, or control of, or own more than 5% of a Competing Organization
(as defined in subparagraph (ii) below) in or doing business in any state of the United States or in any other country in which the Company carries on, or intends, immediately prior to the
termination of Employee's employment, to carry on business. 

            i.  "Competing
Product" means any product, process or service of any person or organization other than Company in existence or under development, which is the same as,
similar to, or improves on a product, process or service of Company about which the Employee acquired CONFIDENTIAL INFORMATION as a result of Employee's employment by the Company. 

           ii.  "Competing
Organization" is any person or organization (including one owned in whole or in part by the Employee) which is engaged in or is about to be engaged in the
research on or the development, production, marketing, or sale of a Competing Product. 

        (b)   The
Employee's obligations under subsection (a) above shall specifically include, but shall not be limited to, the agreement by Employee not, either directly or
indirectly, to call on or solicit, or to attempt to call on or solicit, for the purpose of taking away or attempting to take away, any of Company's customers on whom the employee called or with whom
he became acquainted during his employment with Company, either for himself or any other person or entity. The term "customers" shall include, but not be limited to, both existing and prospective
customers during the term of Employee's employment. 

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        (c)   Employee
acknowledges that he will derive significant value from the Company's agreement to provide him with access to CONFIDENTIAL INFORMATION to enable him to optimize
the performance of his duties for the Company. Employee further acknowledges that his fulfillment of the obligations contained in this Agreement, including, but not limited to, his obligation neither
to disclose nor to use CONFIDENTIAL INFORMATION other than for the Company's exclusive benefit and his obligation not to compete contained in subsection (a) above, is no more than necessary to
protect the Company's CONFIDENTIAL INFORMATION and, consequently, to preserve the value and goodwill of the Company. Employee also acknowledges the time and geographical limitations of his obligations
under subsection (a) above are reasonable, especially in light of the Company's desire to protect its CONFIDENTIAL INFORMATION, and that the Employee will not be precluded from gainful
employment if he is obligated not to compete with the Company during the period and in the geographical area as described above. 

        11.    Equitable Relief.    Employee agrees that it would be impossible or inadequate to measure the damage to Company
from any breach of the promises set forth in Sections 3 through 10 of this Agreement. Accordingly, Employee agrees that if he breaches any of such Sections, the Company shall be entitled, in addition
to any other right or remedy that it may have, to obtain an injunction from a court of competent jurisdiction restraining such breach or threatened breach and to specific performance of any such
Section of this Agreement. Employee further agrees that Company need not post a bond or other security in connection with its efforts to obtain such equitable relief. 

        12.    Assignment.    The Employee may not assign Employee's rights or obligations hereunder. The rights and
obligations of the Company hereunder shall inure to the benefit of and shall be binding upon the successors and assigns of the Company. 

        13.    Terms of Agreement.    

        (a)   Employee
understands and agrees that the terms of this Agreement are effective irrespective of Employee's continued employment by the Company. 

        (b)   Upon
termination of Employee's employment for any reason, Employee shall promptly deliver to the Company all drawings, manuals, letters, notes, notebooks, reports, and
all other material and records of any kind, and all copies thereof, that may be in the possession of, or under the control of, Employee, pertaining to CONFIDENTIAL INFORMATION acquired or developed by
the Employee during the term of Employee's employment. Employee further agrees that upon termination of Employee's employment, for any reason, and at the request of the Company, Employee shall make
himself available and shall meet with representatives of the Company. At such meeting, Employee shall fully disclose and deliver any and all of the above described materials in Employee's possession
and, at the Company's request, shall execute any and all documents reasonably necessary to ensure and verify compliance with the terms of this Agreement. Employee also agrees to sign and deliver a
"Termination Certification" as attached hereto as Schedule 3. 

        14.    Terms of Employment.    Employee's employment by the Company may be terminated by Employee or by the Company,
with or without cause, at any time for any reason authorized by law. Employee understands and agrees, however, that termination of such employment shall not terminate the Employee's obligations under
this Agreement. Subject to Section 15 (c) below, any other contracts or agreements entered into by Employee and the Company shall be separate from and independent of this Agreement. 

        15.    General.    

        (a)   THIS
AGREEMENT SHALL BE SUBJECT TO AND GOVERNED BY THE LAWS OF THE STATE OF TEXAS WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES AND WITHOUT REGARD TO THE PLACE OF
EXECUTION OR THE PLACE OF 

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PERFORMANCE
THEREOF. EMPLOYEE HEREBY EXPRESSLY CONSENTS TO THE EXCLUSIVE PERSONAL JURISDICTION AND VENUE OF THE COURTS LOCATED IN            COUNTY, TEXAS FOR ANY LAWSUIT FILED BY COMPANY AGAINST
EMPLOYEE ARISING OUT OF OR RELATING TO THIS AGREEMENT. 

        (b)   Failure
to insist upon strict compliance with any provision in this Agreement shall not be deemed a waiver of such provision or any other provision in this Agreement. 

        (c)   This
Agreement may not be modified except by an agreement in writing executed by the parties to this Agreement. 

        (d)   The
invalidity or unenforceability of any provision hereof shall not affect the validity or enforceability of any other provision. If, moreover, any one or more of the
provisions contained in this Agreement shall, for any reason, be held to be excessively broad as to time, duration, geographical scope, activity, or subject, it shall be construed by limiting and
reducing it so as to be enforceable to the extent compatible with the applicable law. 

        (e)   This
Agreement is not a promise of future employment. 

        (f)    Any
terms of the masculine gender used herein shall be deemed to include the feminine gender and any terms of the feminine gender shall be deemed to include the
masculine gender. 

        (g)   Employee
acknowledges and agrees to each of the following: (i) I have carefully read this Agreement and fully understand the terms, consequences and effects
thereof; (ii) I am executing this Agreement voluntarily and without any duress or undue influence by the Company or anyone else; (iii) I have had the opportunity to seek the advice of an
attorney of my choice before my execution of this Agreement. 

        IN
WITNESS WHEREOF, the parties have executed this Agreement on the date signed below: 

	COMPANY	 	EMPLOYEE:
	

By:	

 	
 	

By:	

 
	 	
	 	 	

	Title:	 	 	Name:	 
	 	
	 	 	

	 	 	 	 	(Typed or Printed)
	

 	

 	
 	

Employee's Address:
	Date:	 	 	 	 
	
	 	

	

 	

 	
 	

Date:	

 
	 	 	 	

BY
EXECUTION OF THIS AGREEMENT, EMPLOYEE ACKNOWLEDGES RECEIPT OF A COPY OF THE AGREEMENT AND ANY ATTACHMENTS THERETO. 

SCHEDULE 1  

 DESCRIPTION OF POSITION  

Position/Title: 

        Description
of Duties: 

SCHEDULE 2  

 PRIOR INVENTIONS, IDEAS, CONCEPTS*  

*
Employee understands, agrees, and represents that the above disclosure, as may be continued on additional pages attached hereto, includes all his prior inventions, discoveries, improvements,
computer programs, patents, and pending patent applications, and any other subject matter described in Section 7 of this Agreement. 

	 	 	Employee Initials:	 
	 	 	 	

	 	 	Date:	 
	 	 	 	

Schedule 3  

 [Company Name]

TERMINATION CERTIFICATION  

        This is to certify that I do not have in my possession, nor have I failed to return, any devices, records, data, notes, reports, proposals, lists, correspondence,
specifications, drawings, blueprints, sketches, materials, equipment, other documents or property, or reproductions of any aforementioned items belonging to the Company. 

        I
further certify that I have complied with all the terms of the Company's EMPLOYEE INTELLECTUAL PROPERTY ASSIGNMENT AND NONDISCLOSURE AGREEMENT ("AGREEMENT") signed by me, including the
reporting of any Inventions and original works of authorship (as defined therein), conceived or made by me (solely or jointly with others) covered by that AGREEMENT. 

        I
confirm my agreement contained in Section 4 of the AGREEMENT to not, during or after the term of my employment by the Company, make any use of or disclose any of the
CONFIDENTIAL INFORMATION to any person or firm, corporation, association, or other entity for any reason or purpose whatsoever, except as is generally available to the public or as specifically
allowed in writing by an authorized representative of the Company. 

        I
confirm my agreement contained in Section 9 of the AGREEMENT that for twelve (12) months from this date, I will not hire any employees of the Company nor will I solicit,
induce, recruit or encourage any Company employees to leave their employment to become an employee or contractor of any other person or entity. 

        I
confirm my agreement contained in Section 10 of the AGREEMENT that for twelve (12) months from this date, I will not, either directly or indirectly, be connected with the
management, operation, research and development efforts, marketing, sales, or control of, or own more than 5% of a Competing Organization (as defined in subparagraph (ii), Section 10 of the
AGREEMENT in or doing business in any state of the United States or in any other country in which the Company carries on, or intends, immediately prior to the termination of Employee's employment, to
carry on business. 

	Date:	 	 	 
	 	
	 	 
	 	 	 	 
	 	 	 	
 (Employee's Signature)
	 	 	 	 
	

 	

 	
 	

 (Type/Print Employee's Name)

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Exhibit 10.7  

 
 

UNI-PIXEL, INC.
  2005 STOCK INCENTIVE PLAN    
    

        1.    Purposes of the Plan.    The purposes of this Stock Incentive Plan are to attract and retain the best available
personnel, to provide additional incentive to Employees, Directors and Consultants and to promote the success of the Corporation's business. 

        2.    Definitions.    

        2.01.    Certain Defined Terms.    As used herein, the following definitions shall apply: 

        "Administrator" means the Board or any of the Committees appointed to administer the Plan. 

        "Affiliate" and "Associate" shall have the respective meanings ascribed to such terms in
Rule 12b-2 promulgated under the Exchange Act. 

        "Applicable Laws" means the legal requirements relating to the administration of stock incentive plans, if any, under applicable
provisions of federal securities laws, state corporate and securities laws, the Code, the rules of any applicable stock exchange or national market system, and the rules of any foreign jurisdiction
applicable to Awards granted to residents therein. 

        "Assumed" means that (i) pursuant to a Corporate Transaction (as defined in section (i), (ii), or (iii) of the
definition of such term) or a Related Entity Disposition, the contractual obligations represented by the Award are assumed by the successor entity or its Parent in connection with the Corporate
Transaction or Related Entity Disposition or (ii) pursuant to a Corporate Transaction (as defined in sections (iv) or (v) of the definition of such term), the Award is affirmed by
the Corporation. The Award shall not be deemed "Assumed" for purposes of terminating the Award (in the case of a Corporate Transaction) and the termination of the Continuous Service of the Grantee (in
the case of a Related Entity Disposition) if pursuant to a Corporate Transaction or a Related Entity Disposition the Award is replaced with a comparable award with respect to shares of capital stock
of the successor entity or its Parent. However, for purposes of determining whether the vesting of the Award accelerates, the Award shall be deemed "Assumed" if the Award is replaced with such a
comparable stock award or the Award is replaced with a cash incentive program of the successor entity or Parent thereof which preserves the compensation element of such Award existing at the time of
the Corporate Transaction or Related Entity Disposition and provides for subsequent payout in accordance with the same vesting schedule applicable to such Award. 

        The
determination of Award comparability shall be made by the Administrator and its determination shall be final, binding and conclusive. 

        "Award" means the grant of an Option, SAR, Dividend Equivalent Right, Restricted Stock, Performance Unit, Performance Share, or other
right or benefit under the Plan. 

        "Award Agreement" means the written agreement evidencing the grant of an Award executed by the Corporation and the Grantee, including any
amendments thereto. 

        "Board" means the Board of Directors of the Corporation. 

        "Cause" means, with respect to the termination by the Corporation or a Related Entity of the Grantee's Continuous Service, that such
termination is for "Cause" as such term is expressly defined in a then-effective written agreement between the Grantee and the 

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Corporation
or such Related Entity, or in the absence of such then-effective written agreement and definition, is based on, in the determination of the Administrator, the Grantee's:
(i) performance of any act or failure to perform any act in bad faith and to the detriment of the Corporation or a Related Entity; (ii) dishonesty, intentional misconduct or material
breach of any agreement with the Corporation or a Related Entity; or (iii) commission of a crime involving dishonesty, breach of trust, or physical or emotional harm to any person. 

        "Change in Control" means a change in ownership or control of the Corporation after the Registration Date effected through either of the
following transactions: (i) the direct or indirect acquisition by any person or related group of persons (other than an acquisition from or by the Corporation or by a Corporation-sponsored
employee benefit plan or by a person that directly or indirectly controls, is controlled by, or is under common control with, the Corporation) of beneficial ownership (within the meaning of
Rule 13d-3 of the Exchange Act) of securities possessing more than fifty percent (50%) of the total combined voting power of the Corporation's outstanding securities pursuant to a
tender or exchange offer made directly to the Corporation's stockholders which a majority of the Continuing Directors who are not Affiliates or Associates of the offeror do not recommend such
stockholders accept, or (ii) a change in the composition of the Board over a period of thirty-six (36) months or less such that a majority of the Board members (rounded up to
the next whole number) ceases, by reason of one or more contested elections for Board membership, to be comprised of individuals who are Continuing Directors. 

        "Code" means the Internal Revenue Code of 1986, as amended. 

        "Committee" means any committee appointed by the Board to administer the Plan. 

        "Common Stock" means the common stock of the Corporation. 

        "Corporation" means Uni-Pixel, Inc., a Delaware corporation. 

        "Consultant" means any person (other than an Employee or a Director, solely with respect to rendering services in such person's capacity
as a Director) who is engaged by the Corporation or any Related Entity to render consulting or advisory services to the Corporation or such Related Entity. 

        "Continuing Directors" means members of the Board who either (i) have been Board members continuously for a period of at least
thirty-six (36) months or (ii) have been Board members for less than thirty-six (36) months and were elected or nominated for election as Board members by
at least a majority of the Board members described in clause (i) who were still in office at the time such election or nomination was approved by the Board. 

        "Continuous Service" means that the provision of services to the Corporation or a Related Entity in any capacity of Employee, Director or
Consultant, is not interrupted or terminated. Continuous Service shall not be considered interrupted in the case of (i) any approved leave of absence, (ii) transfers among the
Corporation, any Related Entity, or any successor, in any capacity of Employee, Director or Consultant, or (iii) any change in status as long as the individual remains in the service of the
Corporation or a Related Entity in any capacity of Employee, Director or Consultant (except as otherwise provided in the Award Agreement). An approved leave of absence shall include sick leave,
military leave, or any other authorized personal leave. For purposes of each Incentive Stock Option granted under the Plan, if such leave exceeds ninety (90) days, and reemployment upon
expiration of such leave is not guaranteed by statute or contract, then the Incentive Stock Option shall be treated as a Non-Qualified Stock Option on the day three (3) months and
one (1) day following the expiration of such ninety (90) day period. 

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        "Corporate Transaction" means any of the following transactions: (i) a merger or consolidation in which the Corporation is not the
surviving entity, except for a transaction the principal purpose of which is to change the state in which the Corporation is incorporated; (ii) the sale, transfer or other disposition of all or
substantially all of the assets of the Corporation (including the capital stock of the Corporation's subsidiary corporations); (iii) approval by the Corporation's stockholders of any plan or
proposal for the complete liquidation or dissolution of the Corporation; (iv) any reverse merger in which the Corporation is the surviving entity but in which securities possessing more than
fifty percent (50%) of the total combined voting power of the Corporation's outstanding securities are transferred to a person or persons different from those who held such securities immediately
prior to such merger; or (v) acquisition by any person or related group of persons (other than the Corporation or by a Corporation-sponsored employee benefit plan) of beneficial ownership
(within the meaning of Rule 13d-3 of the Exchange Act) of securities possessing more than fifty percent (50%) of the total combined voting power of the Corporation's outstanding
securities (whether or not in a transaction also constituting a Change in Control) but excluding any such transaction that the Administrator determines shall not be a Corporate Transaction. 

        "Covered Employee" means an Employee who is a "covered employee" under Section 162(m)(3) of the Code. 

        "Director" means a member of the Board or the board of directors of any Related Entity. 

        "Disability" means as defined under the long-term disability policy of the Corporation or the Related Entity to which the
Grantee provides services regardless of whether the Grantee is covered by such policy. If the Corporation or the Related Entity to which the Grantee provides service does not have a
long-term disability plan in place, "Disability" means that a Grantee is unable to carry out the responsibilities and functions of the position held by the Grantee by reason of any
medically determinable physical or mental impairment. A Grantee will not be considered to have
incurred a Disability unless he or she furnishes proof of such impairment sufficient to satisfy the Administrator in its discretion. 

        "Dividend Equivalent Right" means a right entitling the Grantee to compensation measured by dividends paid with respect to Common Stock. 

        "Employee" means any person, including an Officer or Director, who is in the employ of the Corporation or any Related Entity, subject to
the control and direction of the Corporation or any Related Entity as to both the work to be performed and the manner and method of performance. The payment of a director's fee by the Corporation or a
Related Entity shall not be sufficient to constitute "employment" by the Corporation. 

        "Exchange Act" means the Securities Exchange Act of 1934, as amended. 

        "Fair Market Value" means, as of any date, the value of Common Stock determined as follows: (i) where there exists a public market
for the Common Stock, the Fair Market Value shall be (A) the closing price for a Share on the date of the determination (or, if no closing price was reported on that date, on the last trading
date on which a closing price was reported) on the stock exchange determined by the Administrator to be the primary market for the Common Stock or the NASDAQ National Market, whichever is applicable
or (B) if the Common Stock is not traded on any such exchange or national market system, the average of the closing bid and asked prices of a Share on the NASDAQ Small Cap Market on the date of
the determination (or, if no such prices were reported on that date, on the last date on which such prices were reported), in each case, as reported in The Wall Street Journal or such other source as
the Administrator deems reliable; or (ii) in the absence of an established 

3

 

market
for the Common Stock of the type described in (i), above, the Fair Market Value thereof shall be determined by the Administrator in good faith. 

        "Good Reason" means the occurrence after a Corporate Transaction, Change in Control or Related Entity Disposition of any of the following
events or conditions unless consented to by the Grantee (and the Grantee shall be deemed to have consented to any such event or condition unless the Grantee provides written notice of the Grantee's
non-acquiescence within 30 days of the effective time of such event or condition): (i) a change in the Grantee's responsibilities or duties which represents a material and
substantial diminution in the Grantee's responsibilities or duties as in effect immediately preceding the consummation of a Corporate Transaction, Change in Control or Related Entity Disposition;
(ii) a reduction in the Grantee's base salary to a level below that in effect at any time within six (6) months preceding the consummation of a Corporate Transaction, Change in Control
or Related Entity Disposition or at any time thereafter; or (iii) requiring the Grantee to be based at any place outside a [            ]-mile radius from
the Grantee's job location prior to the Corporate Transaction, Change in Control or Related Entity Disposition except for
reasonably required travel on business which is not materially greater than such travel requirements prior to the Corporate Transaction, Change in Control or Related Entity Disposition. 

        "Grantee" means an Employee, Director or Consultant who receives an Award under the Plan. 

        "Immediate Family" 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, including adoptive relationships, any person sharing the Grantee's household (other than a tenant or employee), a trust in which these persons (or the Grantee)
have more than fifty percent (50%) of the beneficial interest, a foundation in which these persons (or the Grantee) control the management of assets, and any other entity in which these persons (or
the Grantee) own more than fifty percent (50%) of the voting interests. 

        "Incentive Stock Option" means an Option intended to qualify as an incentive stock option within the meaning of Section 422 of the
Code. 

        "Non-Qualified Stock Option" means an Option not intended to qualify as an Incentive Stock Option. 

        "Officer" means a person who is an officer of the Corporation or a Related Entity within the meaning of Section 16 of the Exchange
Act and the rules and regulations promulgated thereunder. 

        "Option" means an option to purchase Shares pursuant to an Award Agreement granted under the Plan. 

        "Parent" means a "parent corporation," whether now or hereafter existing, as defined in Section 424(e) of the Code. 

        "Performance-Based Compensation" means compensation qualifying as "performance-based compensation" under Section 162(m) of the
Code. 

        "Performance Shares" means Shares or an Award denominated in Shares which may be earned in whole or in part upon attainment of performance
criteria established by the Administrator. 

        "Performance Units" means an Award which may be earned in whole or in part upon attainment of performance criteria established by the
Administrator and which may be settled 

4

 

for
cash, Shares or other securities or a combination of cash, Shares or other securities as established by the Administrator. 

        "Plan" means this 2005 Stock Incentive Plan. 

        "Registration Date" means the first to occur of (i) the closing of the first sale to the general public pursuant to a registration
statement filed with and declared effective by the Securities and Exchange Commission under the Securities Act of 1933, as amended, of (A) the Common Stock or (B) the same class of
securities of a successor corporation (or its Parent) issued pursuant to a Corporate Transaction in exchange for or in substitution of the Common Stock; and (ii) in the event of a Corporate
Transaction, the date of the consummation of the Corporate Transaction if the same class of securities of the successor corporation (or its Parent) issuable in such Corporate Transaction shall have
been sold to the general public pursuant to a registration statement filed with and declared effective by the Securities and Exchange Commission under the Securities Act of 1933, as amended, on or
prior to the date of consummation of such Corporate Transaction. 

        "Related Entity" means any Parent, Subsidiary and any business, corporation, partnership, limited liability company or other entity in
which the Corporation, a Parent or a Subsidiary holds a substantial ownership interest, directly or indirectly. 

        "Related Entity Disposition" means the sale, distribution or other disposition by the Corporation, a Parent or a Subsidiary of all or
substantially all of the interests of the Corporation, a Parent or a Subsidiary in any Related Entity effected by a sale, merger or consolidation or other transaction involving that Related Entity or
the sale of all or substantially all of the assets of that Related Entity, other than any Related Entity Disposition to the Corporation, a Parent or a Subsidiary. 

        "Restricted Stock" means Shares issued under the Plan to the Grantee for such consideration, if any, and subject to such restrictions on
transfer, rights of first refusal, repurchase provisions, forfeiture provisions, and other terms and conditions as established by the Administrator. 

        "Rule 16b-3" means Rule 16b-3 promulgated under the Exchange Act or any successor thereto. 

        "SAR" means a stock appreciation right entitling the Grantee to Shares or cash compensation, as established by the Administrator, measured
by appreciation in the value of Common Stock. 

        "Share" means a share of the Common Stock. 

        "Subsidiary" means a "subsidiary corporation," whether now or hereafter existing, as defined in Section 424(f) of the Code. 

        2.02.    Other Defined Terms.    Other capitalized terms not defined above in  Section 2.01of this plan shall have the meanings
provided elsewhere in this plan. 

        3.    Stock Subject to the Plan.    

        3.01.    Fixed Share Limit.    Subject to the provisions of  Section 10, below, the maximum aggregate number of Shares which may
be issued pursuant to all Awards (including Incentive Stock Options) is Two
Million (2,000,000) Shares. The Shares to be issued pursuant to Awards may be authorized, but unissued, or reacquired Common Stock. 

        3.02.    Shares Deemed Not Issued.    Any Shares covered by an Award (or portion of an Award) which is forfeited or
canceled, expires or is settled in cash, shall be deemed not to have been 

5

 

issued
for purposes of determining the maximum aggregate number of Shares which may be issued under the Plan. Shares that actually have been issued under the Plan pursuant to an Award shall not be
returned to the Plan and shall not become available for future issuance under the Plan, except that if unvested Shares are forfeited, or repurchased by the Corporation at their original purchase
price, such Shares shall become available for future grant under the Plan. 

        4.    Administration of the Plan.    

        4.01.    Plan Administrator.    

        (a)    Administration with Respect to Directors and Officers.    With respect to grants of Awards to Directors or
Employees who are also Officers or Directors of the Corporation, the Plan shall be administered by (i) the Board or (ii) a Committee designated by the Board, which Committee shall be
constituted in such a manner as to satisfy the Applicable Laws and to permit such grants and related transactions under the Plan to be exempt from Section 16(b) of the Exchange Act in
accordance with Rule 16b-3. Once appointed, such Committee shall continue to serve in its designated capacity until otherwise directed by the Board. 

        (b)    Administration with Respect to Consultants and Other Employees.    With respect to grants of Awards to
Employees or Consultants who are neither Directors nor Officers of the Corporation, the Plan shall be administered by (i) the Board or (ii) a Committee designated by the Board, which
Committee shall be constituted in such a manner as to satisfy the Applicable Laws. Once appointed, such Committee shall continue to serve in its designated capacity until otherwise directed by the
Board. The Board may authorize one or more Officers to grant such Awards and may limit such authority as the Board determines from time to time. 

        (c)    Administration with Respect to Covered Employees.    Notwithstanding the foregoing, grants of Awards to any
Covered Employee intended to qualify as Performance-Based Compensation shall be made only by a Committee (or subcommittee of a Committee) which is comprised solely of two or more Directors eligible to
serve on a committee making Awards qualifying as Performance-Based Compensation. In the case of such Awards granted to Covered Employees, references to the "Administrator" or to a "Committee" shall be
deemed to be references to such Committee or subcommittee. 

        (d)    Administration Errors.    In the event an Award is granted in a manner inconsistent with the provisions of this  Section 4.01, such Award shall be presumptively valid as of its grant date to the extent permitted by the Applicable Laws. 

        4.02.    Powers of the Administrator.    Subject to Applicable Laws and the provisions of the Plan (including any
other powers given to the Administrator hereunder), and except as other wise provided by the Board, the Administrator shall have the authority, in its discretion: 

        (a)   to
select the Employees, Directors and Consultants to whom Awards may be granted from time to time hereunder; 

        (b)   to
determine whether and to what extent Awards are granted hereunder; 

        (c)   to
determine the number of Shares or the amount of other consideration to be covered by each Award granted hereunder; 

        (d)   to
approve forms of Award Agreements for use under the Plan; 

        (e)   to
determine the terms and conditions of any Award granted hereunder; 

6

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UNI-PIXEL, INC. 2005 STOCK INCENTIVE PLAN

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