Document:

Exhibit 10.19(ii)

CONFIDENTIAL PORTIONS OF THIS DOCUMENT HAVE BEEN REDACTED AND

FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION

MEDecision

Amendment #1 to the Master
Product Agreement

This Amendment #1 (“Amendment”) to the Master Product
Agreement (“Agreement”) #PHS-001 dated June 30, 2004 is between MEDecision,
Inc. (“MEDecision”), and PacifiCare Health Systems, Inc. (“Customer”), for itself and its
Affiliates and is effective as of April 16, 2007.

1.     The reference to United Health Care in Appendix C is hereby
deleted.

2.     Appendix A to this Amendment is added to the Agreement.

All other terms in the Agreement remain unchanged.

Intending to be legally bound, the Parties have had
this Agreement executed by their duly authorized officials.

	
  MEDECISION, INC.

  	
   

  	
  PACIFICARE HEALTH SYSTEMS, INC.

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ John
  Capobianco

  	
   

  	
  By:

  	
  /s/ Peter E. Cote

  	
   

  
	
  Name:

  	
  John Capobianco

  	
   

  	
  Name:

  	
  Peter E. Cote

  	
   

  
	
  Title:

  	
  President and
  Chief Operating Officer

  	
   

  	
  Title:

  	
  Director of IT Procurement

  	
   

  
	
  Date:

  	
  April 24, 2007

  	
   

  	
  Date:

  	
  April 16, 2007

  	
   

  
								

 

MEDecision

	
  Schedule 2

  	
   

  	
  Number:
  UHC-002P

  

 

Customer:  United HealthCare Services, Inc.

This Schedule incorporates the Application Service
Provider Agreement by and between PacifiCare Health Systems, Inc. and
MEDecision, Inc., effective June 14, 2003 (“ASP Agreement”) and the Master
Product Agreement Number: PHS-001 between MEDecision, Inc. (“MEDecision”) and
PacifiCare Health Systems, Inc., effective June 30, 2004 (“MPA Agreement”)
(collectively the “Agreement”) PacifiCare Health Systems is an Affiliate of
United HealthCare Services, Inc. (“Customer”). 
Customer acquired PacifiCare Health Systems, Inc. in December 2005.

Customer Purchase Order Number (optional):                  n/a                                 

Authorized Locations: MEDecision ASP

Effective Date of this Schedule: April 16, 2007

Expiration Date of this
Schedule: January 15, 2008

The Initial Term is the period of time from the
Effective Date of this Schedule to the Expiration Date of this Schedule.

1.     LICENSE

a.     MEDecision
Products.

Subject to the terms of the Agreement, MEDecision
grants to Customer a nonexclusive, nontransferable license to use the MEDecision
Products listed in Table One in the normal course of the Customer’s managed
care business.

Table One: MEDecision Products

	
  MEDecision 

  Product Code

  	
   

  	
  MEDecision 

  Product Name

  	
   

  	
  Number of

  Members

  Lives

  	
   

  	
  Customer

  Server or

  MEDecisionServer

  	
   

  	
  Line(s) of Business

  	
   

  	
  License Fee

  
	
  

  	
   

  	
  Collaborative Data Exchange consisting of:

  	
   

  	
  [***] 

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 *** Confidential
material which has been omitted and filed separately with the Securities and
Exchange Commission.

 2
 

 

Notes:

1.               The
License Fee includes product licenses for the [***] (see note 3 below), [***],
Support and [***] transactions
for up to [***].  The License Fee is a fee that covers
everything described in this footnote (1) for the Initial Term.

The License Fee covers roll-out to:

[***]
(“Pilot Scope”) to be selected by Customer. 
The [***]may comprise more than [***].

During the course of the
term of this Schedule, Customer may increase the Pilot Scope to include more
than [***]by entering
into an amendment to this Schedule and by entering into a new Scope of Work, in
which case additional Services Fees may apply. 
See the following footnotes for additional details.

(2)           During
the Initial Term of this Schedule, should Customer add additional Member/Lives
over the [***], the parties will
enter into an amendment to this Schedule and the following additional License
Fee will apply:

·              For
each additional Member/Life added, an additional per Member/Life per month (“PMPM”)
License Fee of $[***]will be
incurred.

(3)           During
the Initial Term of this Schedule, should Customer add additional [***] beyond the [***], additional Services Fees may
apply and the parties will enter into a separate Scope of Work.  No other License Fees will apply.

·               Additional
Services Fees would be incurred if:

i.              [***]

ii.             [***]

iii.            [***]

(4)           Customer may work with MEDecision to
create a mutually agreeable risk/reward pricing model for the continuation of
the Product licenses for the Patient Clinical Summary (PCS) and IEXCHANGE Web
Products listed in Table One above.  The
model would be developed based upon historical data from Customer (i.e.,
geographical data on physicians/hospitals/facilities and membership by state),
financial results achieved during the Pilot Scope, MEDecision’s historical
experience from a roll-out and adoption perspective.

 *** Confidential
material which has been omitted and filed separately with the Securities and
Exchange Commission.

 3
 

(5)           If Customer chooses to enter into a
new Schedule, but Customer and MEDecision cannot reach agreement on the
risk/reward pricing model described in Note #4 above, then the following fee
structure will apply until [***]:

After the Initial Term of this Schedule, Customer may
extend the term of the Products licensed in Table One for up to [***] (each a “Renewal
Term”) by providing MEDecision with at least [***] days prior written notice of its
intent to renew and entering into a new Schedule to the Agreement by the end of
each Renewal Term.

The following additional License Fees will apply:

	
  One Year Renewal 

  License Fee

  	
   

  	
  Number of Member/Lives

  	
   

  	
  Number of Included Annual 

  PCS and iEXCHANGE Web 

  Transactions

  
	
  $[***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  $[***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  

 

·             The One Year Renewal License Fee
includes [***]

·             Once the number of Member/Lives
exceeds [***], the parties will
enter into an amendment to this Schedule and Customer will pay an additional [***]. 
Thereafter the Annual One Year Renewal License Fee will be $[***]and the annual included
transactions for PCS and iEXCHANGE Web [***].

·             Should Customer require additional
transaction beyond those included in the One Year Renewal License Fee as
described in the above table, Customer can purchase additional annual bundles
of transactions at the discounted fees as set forth below by entering into an
amendment to the applicable Schedule.

·                  [***]

·                  [***]

·                  [***]

2.     The Collaborative Data Exchange Products described in Table One
are hosted at MEDecision’s ASP facility as further described in the ASP
Agreement.

3.     PAYMENT TERMS

MEDecision shall invoice Customer $[***] upon execution of this Schedule 2
and the remaining $[***] upon the
first day the above licensed products are put into production and made
available to at least one of Customer’s [***]. 
Payment terms are net [***].

 *** Confidential
material which has been omitted and filed separately with the Securities and
Exchange Commission.

 4
 

Intending to be legally
bound, each party has had this Schedule executed by its duly authorized
representative.

	
  MEDECISION, INC.

  	
   

  	
  UNITED HEALTHCARE SERVICES, INC.

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ John
  Capobianco

  	
   

  	
  By:

  	
  /s/ Dawn Bazarko

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: John
  Capobianco

  	
   

  	
  Name:

  	
  Dawn Bazarko

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title: President
  and COO

  	
   

  	
  Title:

  	
  Senior Vice President, Clinical Advancement

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
  April 20, 2007

  	
   

  	
  Date:

  	
  April 12, 2007

  	
   

  

 

 5

CONFIDENTIAL PORTIONS OF THIS DOCUMENT HAVE BEEN REDACTED AND

FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

Proprietary and Confidential

MEDecision

601
Lee Rd.  – 
Chesterbrook Corporate Center  –  Wayne,
PA 19087  –  Phone:
610-540-0202  –  Fax:
610-540-5100

	
  Statement of Work:  Patient
  Clinical Summary Implementation

  	
   

  	
  Number:
   UHC-SOW001

  

 

Customer: 
United HealthCare Services, Inc. (UHC)

This Statement of Work incorporates into and is
governed by the Master Services Agreement (hereinafter referred to as “Agreement”)
by and between PacifiCare Health Systems, Inc. and MEDecision, Inc., dated June
30,2004 PacifiCare Health Systems is an Affiliate of United HealthCare
Services, Inc. (“Customer”).  Customer
acquired PacifiCare Health Systems, Inc. in December 2005.

Effective Date of this Statement of Work: April 16,
2007

1.                                       Project
Coordinators.

Customer:  TBD

MEDecision:  TBD

2.                                       Location
of Services.

Customer’s offices and MEDecision’s offices

3.                                       Description
of project and services for this statement of work (SOW)

Background

UHC has licensed MEDecision’s Patient Clinical Summary
(PCS) product.  The PCS product takes raw
claims, member and provider data provided by Customer (in a MEDecision
specified format) and creates a document of aggregated, summarized, and
analyzed information for use by facilities and healthcare providers at the
point of care for a designated member who is being treated at that specific
time.  The purpose of the PCS is to
provide relevant actionable intelligence to the caregiver so that better
healthcare decisions are made to positively affect the quality of care
decisions and healthcare outcomes, reduce duplication of services and to
decrease costly and potentially harmful mistakes.  Access to the Patient Clinical Summary is via
iEXCHANGE Web, MEDecision’s secure web portal.

UHC plans to make PCS available to both providers,
through the iEXCHANGE Web provider pathway, and to their internal users through
the iEXCHANGE Web Managed Care Organization (MCO) pathway.

UHC wishes to test MEDecision’s PCS in a pilot setting
in order to validate the estimated return on investment and determine if
continued and/or wider deployment is justified. 
UHC may use MEDecision’s iEXCHANGE notification process during the pilot
(“pilot 

project”) to [***]. 
At a minimum, UHC will use the [***]. 
At the time that UHC chooses to implement the [***], MEDecision would
estimate the level of effort needed to configure the [***] and UHC and
MEDecision will enter into a new SOW.

Project Description

This SOW will describe the tasks and services required
for MEDecision to partner with UHC to successfully implement the Patient
Clinical Summary at each of its [***] and be accessible by both providers and
internal staff.

Scope

·                  [***]

·                  [***]

·                  [***]

·                  [***]

·                  [***]

·                  [***]

Project Management

This Statement of Work provides for a MEDecision
project manager to manage the project throughout the implementation.

This is based on project duration of no longer than
[***] beginning with the project kickoff. 
If additional time is required for the project due to issues related to
the Customer, additional costs will be estimated and presented for approval,
dependent upon the reason for the delay and additional time required.

Project Management includes:

·                  [***]

·                  [***]

·                  [***]

·                  [***]

The project manager is also responsible for providing
all relevant, updated customer documentation available for iEXCHANGE Web and
the PCS.

Technical Implementation Services

Technical Implementation Services includes:

Review with the Customer
the security and failover measures in place as further described in the
Application Service Provider Agreement dated June 14, 2003 between MEDecision,
Inc. and PacifCare Health Systems, Inc..

Hardware setup and software implementation at the MEDecision ASP site.

Delivery of the following software components:

·                  [***]

*** Confidential material which has been omitted and
filed separately with the Securities and Exchange Commission.

 2
 

·                  [***]

Configuration and Analysis

This phase involves the discussions and decisions that
are required in order to facilitate the implementation and rollout of the
PCS.  This phase includes completion of
the following tasks:

·                  [***]

·                  [***]

·                  [***]

·                  [***]

·                  [***]

·                  [***]

·                  [***]

·                  [***]

·                  [***]

·                  [***]

·                  [***]

·                  [***]

This phase also
includes standard batch member interface implementation which includes:

·                  [***]

·                  [***]

·                  [***]

Data Provided by UHC

·                  Data files will
be formatted by UHC according to the record layout specifications in the
MEDecision Data Prep Guide (ver. 1.0), with the following exceptions:

·                  Data fields
populated by UHC will consist of those fields identified as required in the
Data Prep Guide, and any optional items mutually agreed upon by UHC and
MEDecision

·                  UHC will fill
any claim cost fields with dummy default values

·                  Group/Plan data
will NOT be provided even though it is listed as a required file in the
MEDecision Data Prep Guide document

·                  Member data will
include all UHC health plan members (fully-insured and ASO) residing in the [***]
as defined by UHC, currently active at the time the data is extracted from the
UHC database.

·                  Monthly claims
data will include all claims with service dates in the previous month for any
UHC members included in that month’s member extract.

·                  At least [***]
prior to activation of a [***] in a service area not already covered by another
pilot hospital, UHC will provide:

·                  [***]

·                  [***]

·                  [***]

Service Bureau Tasks

*** Confidential material which has been omitted and
filed separately with the Securities and Exchange Commission.

 3
 

This project phase involves the tasks for running the
data and creation of the PCS.

Tasks required of Customer before the work in this
project phase can take place:

·                  Creation of the
data files in the specified layout.

·                  Testing that the
following FTP capabilities are working:

·                  UHC provide data
extracts to MEDecision

·                  MEDecision
provide audit logs to UHC

MEDecision tasks in order to complete this project
phase

·                  Identify space
required and acquire servers

·                  Receive data

·                  Data Quality
review

·                  Implement
filters, configuration decisions, and disclaimer wording

·                  Process data

·                  Load
PCS data to PCS server at MEDecision ASP

Training

Project Team Training:

·                  [***]

·                  [***]

·                  [***]

·                  [***]

·                  [***]

·                  [***]

·                  [***]

·                  [***]

·                  [***]

Hospital Staff Training:

MEDecision will be responsible for [***]

iEXCHANGE Web
Application System Training:

·                  [***]

Back Office
Maintenance Training:

·                  [***]

PCS Train the
Trainer:

·                  [***]

·                  [***]

*** Confidential material which has been omitted and
filed separately with the Securities and Exchange Commission.

 4
 

Project Assumptions

·                  Software will be
operational per provided documentation using standard table and configuration
values.

·                  Software will be
installed and supported within one (1) production and one (1) test environment

·                  Prior to
applying any software change to UHC’s production environment, MEDecision will
make a test environment available to UHC with a copy (or a reasonable subset)
of its then-current production database and the proposed software
change(s).  MEDecision will provide UHC
with documentation of the software change(s) including test scripts that UHC
can use for acceptance testing. 
MEDecision will not promote any software upgrade to UHC’s production
environment until it has been tested and approved by UHC.

·                  Customer will
complete documentation describing workflow decisions.

·                  Customer
resources assigned to the project will have the requisite knowledge of the
customer’s medical management practices and project goals, with respect to the
implementation of the PCS.

·                  Customer
trainees will make every reasonable effort to be fully available for
uninterrupted meetings during described training sessions.

·                  Customer
training rooms will have internet and telephonic access (only applicable if
training on client site).

·                  The described
MEDecision and customer resources will be assigned to other accounts and
projects within the duration of this SOW, so scheduling of their time must be
agreeable to both parties.

·                  MEDecision and
Customer reserve the right to determine the appropriate personnel for this
SOW.  This right includes the possibility
of personnel changes during the timeframe outlined within this SOW.  In the event MEDecision determines that a
personnel change must occur, the Customer will be notified, in writing, thirty
(30) days prior to making the change. 
MEDecision will work with the Customer to ensure a smooth transition of
personnel.

·                  Prior to the
start of the engagement, the Customer will designate a project manager that
will act as a single point of contact for Customer resource planning,
scheduling, status and issue resolution with the MEDecision project manager.

·                  This SOW does
not include any effort, other than estimation involving the analysis,
programming or delivery of custom code.

·                  The
Patient Clinical Summaries will only be available through the Production
environment.

Project Completion Criteria

This Project will be deemed complete when:

1)                                      [***]

2)                                      [***]

3)                                      [***]

Out of Scope

·                  Project
management tasks, training or support beyond those described within this SOW.

*** Confidential material which has been omitted and
filed separately with the Securities and Exchange Commission.

 5
 

·                  Creation of any
custom modules identified during the GAP Analysis effort.

·                  Creation of any
member file translation customizations, if needed.

·                  Implementation
of release updates that occur after the products are moved into production and
customer is live’ on the product.

·                  Onsite testing
of implemented code or configurations.

·                  Deliverable of
documentation describing customer workflow decisions other than the
configuration documentation described above.

·                  Travel,
living or communication expenses (other than for pilot recruitment purposes).

4.                                       Schedule
of Services

Start Date:  Date this SOW is approved 
End Date: When the project completion criteria are met

MEDecision assumes that the total timeframe of this
project will be no longer than nine (9) months in duration, beginning with the
Project Kickoff.  If additional time is
required of the project due to issues related to the Customer, additional costs
will be estimated and presented for approval, dependent upon the reason for the
delay and additional time required.

5.                                       Equipment,
Resources and Programming Provided by Customer

Customer provides
required resources to complete the efforts described.  Includes but not limited to:

·                                          Dedicated
project manager to manage customer tasks as defined,

·                                          Access to
legal, provider relations, and marketing/communications contacts as
appropriate.

·                                          Workflow
decision makers who can be dedicated to the project, as the implementation
requires,

·                                          Resources to
document any new workflow decisions and/or changes to current workflows,

·                                          Customer
understanding that the ability to do this work concurrently or sequentially
directly impacts the project timeline.

6.                                       Pricing

MEDecision will complete this project for a Fixed Fee
of $[***].  This price includes project
management, analysis, configuration, testing, packaging, documentation and
installation.

If the scope of this project changes, a new estimate
will be calculated.

In addition, other than [***] recruitment, per the MSA
Agreement Customer will pay actual and reasonable travel and living expenses
incurred by MEDecision personnel in providing the Services described herein.

7.                                       Payment
Terms

*** Confidential material which has been omitted and
filed separately with the Securities and Exchange Commission.

 6
 

Fixed Fee Project Invoice Schedule:

[***] of the Total Fixed Fee Project price, which is $[***] shall be invoiced
to Customer upon receiving its signature for this Statement of Work.

[***] of the Total Fixed Fee Project price, which is
$[***] shall be invoiced to Customer when the Project Completion criteria has
been met.

In addition, MEDecision will invoice Customer monthly
in arrears for expenses incurred by MEDecision personnel in providing the
Services.

Invoices are due on the date of invoice and payable
within forty (40) days from date of invoice receipt by UHC.

Intending to be legally bound, the parties have had
this SOW executed by their duly authorized representatives.

	
  MEDECISION, INC.

  	
   

  	
  UNITED HEALTHCARE SERVICES, INC.

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Mary Jo
  Timlin-Hoag

  	
   

  	
  By:

  	
  /s/ Dawn Bazarko

  
	
   

  	
   

  	
   

  
	
  Name: Mary Jo
  Timlin-Hoag

  	
   

  	
  Name:

  	
  Dawn Bazarko

  
	
   

  	
   

  	
   

  
	
  Title: Senior
  Vice President, Client Operations

  	
   

  	
  Title:

  	
  Senior Vice
  President, Clinical Advancement

  
	
   

  	
   

  	
   

  
	
  Date:

  	
  April 16, 2007

  	
   

  	
  Date:

  	
  April 16, 2007

  
								

 

*** Confidential material which has been omitted and
filed separately with the Securities and Exchange Commission.

 7

Addendum 1

MEDecision Data Extract Specifications v6.xls

MEDecision Data Extract

Included Members:

[***]

Included claims:

[***]

Included Providers:

[***]

Roll-out plan:

[***]

Extract file structure:

[***]

*** Confidential material which has been omitted and
filed separately with the Securities and Exchange Commission.Exhibit 10.26

UFP TECHNOLOGIES,
INC.

2003 EQUITY INCENTIVE
PLAN

(as amended on March
22, 2007)

1.             Statement of
Purpose. The purpose of this 2003 Equity Incentive Plan  (the “Plan”) is to benefit UFP TECHNOLOGIES,
INC. (the “Company”) through the maintenance and development of its businesses
by offering equity-based incentives to certain present and future executives
and other employees who are in a position to contribute to the long-term
success and growth of the Company, thereby giving them a permanent stake in the
growth and prosperity of the Company and encouraging the continuance of their
involvement with the Company and/or its subsidiaries.

2.             Administration of
the Plan.

(a)           Board or Committee
Administration.  The Plan shall be
administered by the Compensation Committee of the Company’s Board of Directors
(the “Board”) or such other committee thereof consisting of such members (not
less than two) of the Board as are appointed from time to time by the Board
(the “Compensation Committee”), each of the members of which, at the time of
any action under the Plan, shall be (i) a “non-employee director” as then
defined under Rule 16b-3 under the Act (or meeting comparable requirements of
any successor rule relating to exemption from Section 16(b) of the Act), (ii)
an “outside director” as then defined under Section 162(m) of the Internal
Revenue Code and (iii) an “independent director” as then defined under the
rules of the Nasdaq Stock Market (or meeting comparable requirements of any
stock exchange on which the Company’s Common Stock may then be listed).  Hereinafter, all references in this Plan to
the “Committee” shall mean the Board if no Committee has been appointed.  The Committee shall have all necessary powers
to administer and interpret the Plan. 
Such powers of the Compensation Committee include exclusive authority
(within the limitations described and except as otherwise provided in the Plan)
to select the employees or determine classes of employees to be granted awards
under the Plan, to determine the aggregate amount, type, size, and terms of the
awards to be made to eligible employees, and to determine the time when awards
will be granted.  The Compensation
Committee may take into consideration recommendations from the appropriate
officers of the Company with respect to making the foregoing determinations as
to Plan awards, administration, and interpretation. The Committee shall have
full power and authority to adopt such rules, regulations, agreements and
instruments for the administration of the Plan and for the conduct of its
business as the Committee deems necessary or advisable.  The Committee’s interpretations of the Plan
and all action taken and determinations made by the Committee pursuant to the
powers vested in it hereunder shall be conclusive and binding on all parties
concerned, including the Company, its shareholders and any director or employee
of the Company or any Subsidiary.

(b)           Committee Actions.  The Committee may select one of its members
as its chairman, and shall hold meetings at such time and places as it may
determine.  A majority of the Committee
shall constitute a quorum and acts of a majority of the members of the
Committee at a meeting at which a quorum is present, or acts reduced to or approved
in writing by all the members of the Committee (if consistent with applicable
state law), shall be the valid acts of the Committee.  From time to time the Board may increase the
size of the Committee and appoint additional members thereof, remove members
(with or without cause) and appoint new members in substitution therefor, fill
vacancies however caused, or remove all members of the Committee and thereafter
directly administer the Plan.

(c)           Performance-based
Compensation.  The Board, in its
discretion, may take such action as may be necessary to ensure that Awards
granted under the Plan qualify as “qualified performance-based compensation”
within the meaning of Section 162(m) of the Internal Revenue Code and
applicable regulations promulgated thereunder.

3.             Eligibility.
Participation in the Plan shall be limited to executives or other employees
(including officers and directors who are also employees) of the Company and
its Participating Subsidiaries selected on the basis of such criteria as the
Committee may determine.  Employees who
participate in other incentive or benefit plans of the Company or any
Subsidiary may also participate in this Plan. As used herein, the term “employee”
shall mean any person employed full time or part time by the Company or a
Subsidiary on a salaried basis, and the term “employment” shall mean full-time
or part-time salaried employment by the Company or a Subsidiary.

4.             Shares Subject to
the Plan.  The shares that may be
delivered in payment or in respect of stock issued under the Plan shall not
exceed in the aggregate 1,250,000 shares of common stock of the Company (“Common
Stock”)  subject to adjustment as
provided in Section 8.   Any share
subject to a Plan award which for any reason is not delivered, due to
forfeiture or for any other reason, may again be subject to an award
subsequently granted under the Plan.

5.             Awards.   Awards granted to employees under the Plan
may be either restricted shares or other stock awards.  Restricted shares (“Restricted Shares”) are
shares of Common Stock awarded subject to restrictions and to possible
forfeiture upon the occurrence of specified events.  Other stock awards (“Other Stock Awards”) are
awards in such form as the Committee may determine that are denominated or
payable in, valued in whole or in part by reference to, or otherwise based on
or related to shares of Common Stock.  
Restricted Shares and Other Stock Awards, may be granted to the same
Participant as separate awards at or for the same period of time under terms
whereby the issuance of shares or payment under one award has no effect on any
other award.   In no event shall the
number of Restricted or Other Stock Awards granted to any Participant in any
Fiscal Year exceed 150,000.  In addition,
in no event shall the number of Restricted or Other Stock Awards providing for
the acquisition of shares of Common Stock for a consideration less than Fair
Market Value as of the date of grant or exercise of such awards granted to all
Participants in any Fiscal Year exceed 250,000.

 2
 

For this purpose, Fair
Market Value may be determined as of a date not more than two trading days
prior to the date of grant or exercise in order to facilitate compliance with
the reporting requirements under Section 16 of the Act.

6.             Restricted Shares.  Restricted Share awards shall be evidenced by
a written agreement in the form prescribed by the Committee in its discretion,
which shall set forth the number of shares of Common Stock awarded, the
restrictions imposed thereon  (which may
include, without limitation, restrictions on the right of the grantee to sell,
assign, transfer or encumber  shares
while such shares are subject to other restrictions imposed under this Section
6), the duration of such restrictions; the events (which may, in the discretion
of the Committee, include performance-based events or objectives) the
occurrence of which would cause a forfeiture of the Restricted Shares in whole
or in part; and such other terms and conditions as the Committee in its
discretion deems appropriate.  If so
determined by the Committee at the time of an award of Restricted Shares, the
lapse of restrictions on Restricted Shares may be based on the extent of
achievement over a specified performance period of one or more performance
targets based on performance criteria established by the Committee.  Restricted share awards shall be effective
upon execution of the applicable Restricted Share agreement by the Company and
the Participant.  Following a Restricted
Share award and prior to the lapse or termination of the applicable
restrictions, the share certificates for such Restricted Shares shall be held
in escrow by the Company.  Upon the lapse
or termination of the applicable restrictions (and not before such time), the
certificates for the Restricted Shares shall be issued or delivered to the
Participant.  From the date a Restricted
Share award is effective, the Participant shall be a shareholder with respect
to all the shares represented by such certificates and shall have all the
rights of a shareholder with respect to all such shares, including the right to
vote such shares and to receive all dividends and other distributions paid with
respect to such shares, subject only to the restrictions imposed by the
Committee.

7.             Other Stock Awards.  The Committee shall have the authority in its
discretion to grant to eligible Participants such other awards that are
denominated or payable in, valued in whole or in part by reference to, or
otherwise based on or related to, shares of Common Stock as deemed by the
Committee to be consistent with the purposes of the Plan, including, without
limitation, purchase rights, or shares awarded without restrictions or
conditions.  The Committee shall
determine the terms and conditions, if any, of any Other Stock Awards made
under the Plan.

8.             Dilution and Other
Adjustments.  Notwithstanding any
other provision of the Plan, in the event of any change in the outstanding
shares of Common Stock by reason of any stock dividend or split,
recapitalization, merger, consolidation, combination or exchange of shares, or
other similar corporate change, an equitable adjustment shall be made, as
determined by the Committee, so as to preserve, without increasing or
decreasing, the value of Plan awards and authorizations, in (i) the maximum
number or kind of shares issuable or awards which may be granted under the
Plan, (ii) the maximum number, kind or value of any Plan awards which may be
awarded or paid in general or to any one employee or to all employees in a
Fiscal Year,

 3
 

(iii) the
performance-based events or objectives applicable to any Plan awards, (iv) any
other aspect or aspects of the Plan or outstanding awards made thereunder as
specified by the Committee, or (v) any combination of the foregoing.  Such adjustments shall be made by the Committee
and shall be conclusive and binding for all purposes of the Plan.

9.             Miscellaneous
Provisions.

(a)           The holder of a Plan
award shall have no rights as a Company shareholder with respect thereto
unless, and until the date as of which, certificates for shares of Common Stock
are issued in respect of such award.

(b)           Except as the Committee
shall otherwise determine in connection with determining the terms of awards to
be granted or shall thereafter permit, no Plan award or any rights or interests
therein of the recipient thereof shall be assignable or transferable by such
recipient except upon death to his or her Designated Beneficiary or by will or
the laws of descent and distribution, and, except as aforesaid, during the
lifetime of the recipient, a Plan award shall be exercisable only by, or payable
only to, as the case may be, such recipient or his or her guardian or legal
representative.

(c)           All Restricted Shares
granted under the Plan shall be evidenced by agreements in such form and
containing and/or incorporating such terms and conditions (not inconsistent
with the Plan and applicable law) in addition to those provided for herein as
the Committee shall approve.

(d)           No shares of Common
Stock shall be issued, delivered or transferred upon exercise or in payment of
any award granted hereunder unless and until all legal requirements applicable
to the issuance, delivery or transfer of such shares have been complied with to
the satisfaction of the Committee and the Company, including, without
limitation, compliance with the provisions of the Securities Act of 1933, the
Act and the applicable requirements of the exchanges on which the Company’s
Common Stock may, at the time, be listed. The Committee and the Company shall
have the right to condition any issuance of shares of Common Stock made to any Participant
hereunder on such Participant’s undertaking in writing to comply with such
restrictions on his or her subsequent disposition of such shares as the
Committee and/or the Company shall deem necessary or advisable as a result of
any applicable law, regulation or official interpretation thereof, and
certificates representing such shares may be legended to reflect any such
restrictions.

(e)           The
Company shall have the right to require, as a condition of the distribution of
awards in Common Stock, that the Participant or other person receiving such
Common Stock either (i) pay to the Company at the time of distribution thereof
the amount of any federal, state, or local taxes  which the Company is required to withhold
with respect to such Common Stock or (ii) make such other arrangements as the
Company may authorize from time to time to provide for such withholding
including without limitation having the number of the units of the award
cancelled or the number 

 4
 

of
the shares of Common Stock to be distributed reduced by an amount with a value
equal to the value of such taxes required to be withheld.  Notwithstanding the foregoing, the Committee
may, in its discretion, in connection with the grant of any award of Common
Stock, authorize the Company to pay to Participant receiving the award, a cash
gross-up payment  in an amount necessary
to cover such federal, state or local taxes attributable to such award and to
such cash payment.

(f)            No employee or
director of the Company or a Subsidiary or other person shall have any claim or
right to be granted an award under this Plan. 
Neither this Plan nor any action taken hereunder shall be construed as
giving any employee any right to be retained in the employ of the Company or a
Subsidiary, it being understood that all Company and Subsidiary employees who
have or may receive awards under this Plan are employed at the will of the
Company or such Subsidiary and in accord with all statutory provisions.

(g)           Distributions of shares
of Common Stock in payment or in respect of awards made under this Plan may be
made either from shares of authorized but unissued Common Stock reserved for
such purpose by the Board of Directors or from shares of authorized and issued
Common Stock reacquired by the Company and held in its treasury, as from time
to time determined by the Committee, the Board, or pursuant to delegations of
authority from either.

(h)           The costs and expenses
of administering this Plan shall be borne by the Company and not charged to any
award or to any employee or Participant receiving an award.

(i)            In addition to the
terms defined elsewhere herein, the following terms as used in this Plan shall
have the following meanings:

“Act” shall mean the Securities Exchange Act of 1934
as amended from time to time.

“Designated Beneficiary” shall mean the person or
persons, if any, last designated as such by the Participant on a form filed by
him or her with the Company in accordance with such procedures as the Committee
shall approve.

“Fair Market Value” of a
share of Common Stock of the Company on any date shall mean the closing price
of the Common Stock on the trading day coinciding with such date, or if not
trading on such date, then the closing price as of the next following trading
day.  If shares of the Common Stock shall
not have been traded on any national exchange or interdealer quotation system
for more than 10 days immediately preceding such date or if deemed appropriate
by the Committee for any other reason, the fair market value of shares of
Common Stock shall be determined by the Committee in such other manner as it
may deem appropriate.

 5
 

“Fiscal Year” shall mean the twelve-month period used
as the annual accounting period by the Company and shall be designated
according to the calendar year in which such period ends.

“Internal Revenue Code” shall mean the Internal
Revenue Code of 1986 and regulations thereunder as amended from time to
time.  References to particular sections
of the Internal Revenue Code shall include any successor provisions.

“Participant” 
shall mean, as to any award granted under this Plan and for so long as
such award is outstanding, the employee to whom such award has been granted.

 “Subsidiary”
shall mean any domestic or foreign corporation, partnership, association, joint
stock company, trust or unincorporated organization “affiliated” with the
Company, that is, directly or indirectly, through one or more intermediaries, “controlling”,
“controlled by” or  “under common control
with”, the Company.

“Control” for this purpose means the possession, direct
or indirect, of the power to direct or cause the direction of the management
and policies of such person, whether through the ownership of voting
securities, contract or otherwise.

(j)            This Plan shall be
governed by the laws of the Commonwealth of Massachusetts and shall be
construed for all purposes in accordance with the laws of said Commonwealth
except as may be required by the General Corporation Law of Delaware or by
applicable federal law.

10.           Amendments and
Termination; Requisite Shareholder Approval.   The Board may at any time terminate or from
time to time amend or suspend the Plan in whole or in part in such respects as
the Board may deem advisable in order that awards granted thereunder shall
conform to any change in the law, or in any other respect which the Board may
deem to be in the best interests of the Company; provided, however, that no
amendment of the Plan shall be made without shareholder approval if shareholder
approval of the amendment is at the time required by applicable law, or by the
rules of the Nasdaq Stock Market or any stock exchange on which Common Stock
may be listed.  The Board shall have the
power to amend the Plan in any manner contemplated by Section 10 deemed
necessary or advisable for awards granted under the Plan to qualify for the
exemption provided by Rule 16b-3 (or any successor rule relating to exemption
from Section 16(b) of the Act), to qualify as “performance-based” compensation
under Section 162(m) of the Internal Revenue Code or to comply with applicable
law, and any such amendment shall, to the extent deemed necessary or advisable
by the Board, be applicable to any outstanding awards theretofore granted under
the Plan notwithstanding any contrary provisions contained in any award
agreement.  In the event of any such
amendment to the Plan, the holder of any award 

 6
 

outstanding under the
Plan shall, upon request of the Board and as a condition to the exercisability
thereof, execute a conforming amendment in the form prescribed by the Board to
any award agreement relating thereto within such reasonable time as the Board
shall specify in such request.  With the
consent of the Participant affected, the Board may amend outstanding agreements
evidencing Plan awards in a manner not inconsistent with the terms of the Plan.  Notwithstanding anything contained in this
Section 10 or in any other provision of the Plan, unless required by law, no
action contemplated or permitted by this Section 10 shall adversely affect any
rights of Participants or obligations of the Company to Participants with
respect to any award theretofore made under the Plan without the consent of the
affected Participant.

11.           Effective Date and
Term of Plan. This Plan was adopted on April 8, 2003.  The Plan was amended on February 26,
2007.  The Plan was further amended on
March 22, 2007 to increase the number of shares issuable under the Plan from
500,000 shares to 1,250,000 shares, subject to ratification by the stockholders
of the Company at the Annual Meeting of Stockholders to be held on June 6, 2007.  The Plan shall remain in effect, subject to
the right of the Board of Directors to further amend or terminate the Plan at
any time pursuant to Section 10 hereof, until all shares subject to it shall
have been purchased or acquired according to the Plan’s provisions.

 7

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