Document:

Unassociated Document

     

    Exhibit 10.98

     

    RESTRICTED
STOCK AGREEMENT

    

    ZOO
ENTERTAINMENT, INC.

    

    AGREEMENT
made as of the [__] day of [__] (the “Grant Date”), between Zoo Entertainment,
Inc. (the “Company”), a Delaware corporation, and [__] (the
“Participant”).

    

    WHEREAS,
the Company has adopted the 2007 Employee, Director and Consultant Equity
Incentive Plan, as amended (the “Plan”) to promote the interests of the Company
by providing an incentive for employees, directors and consultants of the
Company or its Affiliates;

    

    WHEREAS,
the Company desires to offer to the Participant shares of the Company’s common
stock, $0.001 par value per share (“Common Stock”), [outside of/pursuant to] the
Plan [(but otherwise subject to and governed by all of the terms and conditions
of the Plan, except for Section 4(c) thereof, and this Agreement)] all on the
terms and conditions hereinafter set forth;

    

    WHEREAS,
Participant wishes to accept said offer; and

    

    WHEREAS,
the parties hereto understand and agree that any terms used and not defined
herein have the meanings ascribed to such terms in the Plan.

    

    NOW,
THEREFORE, in consideration of the premises and the mutual covenants contained
herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree as
follows:

    

    1.           Terms of
Grant.  The Participant hereby accepts the offer of the Company
to issue to the Participant, in accordance with the terms of this Agreement,
[__] ([__]) Shares of the Company’s
Common Stock (such shares, subject to adjustment pursuant to Section 24 of the Plan and
Subsection 2.1(h) hereof, the “Granted Shares”) at a purchase price of $0.001
per share (the “Purchase Price”), receipt of which is hereby acknowledged by the
Company by the Participant’s prior service to the Company and which amount will
be reported as income on the Participant’s W-2 for this calendar year, which
shares shall be fully-vested subject to Sections 1 and 2
hereof.  [Notwithstanding the foregoing, the issuance of the Granted
Shares set forth herein is conditioned upon, and the Granted Shares cannot fully
vest prior to, the effectiveness of those certain amendments to the Company’s
Certificate of Incorporation authorizing an increase in the number of authorized
Shares from 250,000,000 Shares to 3,500,000,000 Shares and effecting a reverse
stock split at a ratio of one for 600 Shares (the “Charter Amendments”), and in
the event the Charter Amendments are not filed prior to September 1, 2010, the
Granted Shares set forth herein shall be deemed immediately canceled.]1

    

    

    2.1.         Forfeiture
Provisions.

    

    (a)          Lapsing Forfeiture
Right. In the event that for any reason the Participant is no longer a
director of the Company prior to [__] (the “Termination”), the Participant (or
the Participant’s Survivor) shall, on the date of Termination, immediately
forfeit to the Company (or its designee) all of the Granted Shares which have
not yet lapsed in accordance with the schedule set forth below (the “Lapsing
Forfeiture Right”).

     

     

      
        

      

    

    
      1 Portions
of the bracketed language contained in this form of restricted stock agreement
can be found in the restricted stock agreements executed between the Company and
certain individuals in connection with the shares of restricted stock granted on
February 11, 2010.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      The Company’s Lapsing Forfeiture Right
is as follows:

      

      (i)           If
the Participant’s Termination is prior to [__], all of the Granted Shares shall
be forfeited to the Company.

      

      (ii)          If
the Participant’s Termination is on or after [__] but prior to [__],[__]% of the
Granted Shares shall be forfeited to the Company (rounded up to the next highest
whole number of shares).

      

      (iii)         If
the Participant’s Termination is on or after [__] but prior to [__],[__]% of the
Granted Shares shall be forfeited to the Company (rounded up to the next highest
whole number of shares).

      

      (iv)         If
the Participant’s Termination is on or after [__]but prior to [__],[__]% of the
Granted Shares shall be forfeited to the Company (rounded up to the next highest
whole number of shares).

      

      

      (b)          Effect of Change in
Control.  Except as otherwise provided in Subsection 2.1(a)
above, the Company’s Lapsing Forfeiture Right shall terminate, and the
Participant’s ownership of all Granted Shares then owned by the Participant
shall become vested in the event of a Change in Control.  “Change in
Control” means that (i) a person, entity or affiliated group has become the
beneficial owner or owners of more than 50% of the outstanding equity securities
of the Company, or otherwise become entitled to vote more than 50% of the voting
power of the Company; (ii) a consolidation or merger (in one transaction or a
series of related transactions) of the Company pursuant to which the holders of
the Company’s equity securities immediately prior to such transaction or series
of related transactions would not be the holders immediately after such
transaction or series of related transactions of more than 50% of the voting
power of the entity surviving such transaction or series of related
transactions; or (iii) the sale, lease, exchange or other transfer (in one
transaction or a series of related transactions) of all or substantially all of
the assets of the Company.

      

      (c)          Escrow.  The
certificates representing all Granted Shares issued to the Participant hereunder
which from time to time are subject to the Lapsing Forfeiture Right shall be
delivered to the Company and the Company shall hold such Granted Shares in
escrow as provided in this Subsection 2.1(c). The Company shall promptly
release from escrow and deliver to the Participant a certificate for the whole
number of Granted Shares, if any, as to which the Company’s Lapsing Forfeiture
Right has lapsed. In the event of forfeiture to the Company of Granted Shares
subject to the Lapsing Forfeiture Right, the Company shall release from escrow
and cancel a certificate for the number of Granted Shares so
forfeited.  Any securities distributed in respect of the Granted
Shares held in escrow, including, without limitation, shares issued as a result
of stock splits, stock dividends or other recapitalizations, shall also be held
in escrow in the same manner as the Granted Shares.

      

      (d)          Prohibition on
Transfer.  The Participant recognizes and agrees that all
Granted Shares which are subject to the Lapsing Forfeiture Right may not be
sold, transferred, assigned, hypothecated, pledged, encumbered or otherwise
disposed of, whether voluntarily or by operation of law, other than to the
Company (or its designee).  The Company shall not be
required to transfer any Granted Shares on its books which shall have been sold,
assigned or otherwise transferred in violation of this Subsection 2.1(d), or to
treat as the owner of such Granted Shares, or to accord the right to vote as
such owner or to pay dividends to, any person or organization to which any such
Granted Shares shall have been so sold, assigned or otherwise transferred, in
violation of this Subsection 2.1(d).

    

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    
      (e)          
Failure to Deliver
Granted Shares to be Forfeited.  In the event that the Granted
Shares to be forfeited to the Company under this Agreement are not in the
Company’s possession pursuant to Subsection 2.1(c) above or otherwise and the
Participant or the Participant’s Survivor fails to deliver such Granted Shares
to the Company (or its designee), the Company may immediately take such action
as is appropriate to transfer record title of such Granted Shares from the
Participant to the Company (or its designee) and treat the Participant and such
Granted Shares in all respects as if delivery of such Granted Shares had been
made as required by this Agreement.  The Participant hereby
irrevocably grants the Company a power of attorney which shall be coupled with
an interest for the purpose of effectuating the preceding sentence.

      

      (f)           Adjustments.  The
Plan contains provisions covering the treatment of Shares in a number of
contingencies such as stock splits and mergers.  Provisions in the
Plan for adjustment with respect to the Granted Shares and the related
provisions with respect to successors to the business of the Company are hereby
made applicable hereunder and are incorporated herein by reference.

      

      
        	
                 
      

              	
                2.2

              	
                General Restrictions
      on Transfer of Granted
Shares.

              

      

      

      (a)          
The Participant agrees that in the event the Company proposes to offer for sale
to the public any of its equity securities and such Participant is requested by
the Company and any underwriter engaged by the Company in connection with such
offering to sign an agreement restricting the sale or other transfer of Shares,
then it will promptly sign such agreement and will not transfer, whether in
privately negotiated transactions or to the public in open market transactions
or otherwise, any Shares or other securities of the Company held by him or her
during such period as is determined by the Company and the underwriters, not to
exceed 180 days following the closing of the offering, plus such additional
period of time as may be required to comply with Marketplace Rule 2711 of the
National Association of Securities Dealers, Inc. or similar rules thereto (such
period, the “Lock-Up Period”).  Such agreement shall be in writing and
in form and substance reasonably satisfactory to the Company and such
underwriter and pursuant to customary and prevailing terms and
conditions.  Notwithstanding whether the Participant has signed such
an agreement, the Company may impose stop-transfer instructions with respect to
the Shares or other securities of the Company subject to the foregoing
restrictions until the end of the Lock-Up Period.

      

      (b)          
The Participant acknowledges and agrees that neither the Company nor, its
shareholders nor its directors and officers, has any duty or obligation to
disclose to the Participant any material information regarding the business of
the Company or affecting the value of the Shares before, at the time of, or
following a Termination, including, without limitation, any information
concerning plans for the Company to make a public offering of its securities or
to be acquired by or merged with or into another firm or entity.

      

      

      3.           
Purchase for
Investment; Securities Law Compliance.  If the offering and
sale of the Granted Shares have not been effectively registered under the
Securities Act of 1933, as amended (the “1933 Act”), the Participant hereby
represents and warrants that he or she is acquiring the Granted Shares for his
or her own account, for investment, and not with a view to, or for sale in
connection with, the distribution of any such Granted Shares. The Participant
specifically acknowledges and agrees that any sales of Granted Shares shall be
made in accordance with the requirements of the 1933 Act, in a transaction as to
which the Company shall have received an opinion of counsel satisfactory to it
confirming such compliance.  The Participant shall be bound by the
provisions of the following legend which shall be endorsed upon the
certificate(s) evidencing the Shares issued:

    

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    
      “The
shares represented by this certificate have been taken for investment and they
may not be sold or otherwise transferred by any person, including a ledge,
unless (1) either (a) a Registration Statement with respect to such shares shall
be effective under the Securities Act of 1933, as amended, or (b) the Company
shall have received an opinion of counsel satisfactory to it that an exemption
from registration under such Act is then available, and (2) there shall have
been compliance with all applicable state securities laws.”

      

      4.           Rights as a
Stockholder.  The Participant shall have all the rights of a
stockholder with respect to the Granted Shares, including voting and dividend
rights, subject to the transfer and other restrictions set forth herein and in
the Plan.

      

      5.           Legend.  In
addition to any legend required pursuant to the Plan, all certificates
representing the Granted Shares to be issued to the Participant pursuant to this
Agreement shall have endorsed thereon a legend substantially as
follows:

      

      “The
shares represented by this certificate are subject to restrictions set forth in
a Restricted Stock Agreement dated as of [__] with this Company, a copy of which
Agreement is available for inspection at the offices of the Company or will be
made available upon request.”

      

      6.           Incorporation of the
Plan.  The Participant specifically understands and agrees that
the Granted Shares issued outside of the Plan are being sold to the Participant
outside of the Plan, (but are otherwise subject to and governed by all of the
terms and conditions of the Plan, except for Section 4© thereof, and this
Agreement) a copy of which Plan the Participant acknowledges he or she has read
and understands and by which Plan he or she agrees to be bound.  The
provisions of the Plan are incorporated herein by reference.

      

      7.           Tax Liability of the
Participant and Payment of Taxes. The Participant acknowledges and agrees
that any income or other taxes due from the Participant with respect to the
Granted Shares issued pursuant to this Agreement, including, without limitation,
the Lapsing Forfeiture Right, shall be the Participant’s
responsibility.  Without limiting the foregoing, the Participant
agrees that, to the extent that the lapsing of restrictions on disposition of
any of the Granted Shares or the declaration of dividends on any such shares
before the lapse of such restrictions on disposition results in the
Participant’s being deemed to be in receipt of earned income under the
provisions of the Code, the Company shall be entitled to immediate payment from
the Participant of the amount of any tax required to be withheld by the
Company.

      
 

       
Upon execution of this Agreement, the Participant may file an election under
Section 83 of the Code in substantially the form attached as Exhibit
B.  The Participant acknowledges that if he does not file such
an election, as the Granted Shares are released from the Lapsing Forfeiture
Right in accordance with Section 2.1, the Participant will have income for tax
purposes equal to the fair market value of the Granted Shares at such date, less
the price paid for the Granted Shares by the Participant.  The
Participant has been given the opportunity to obtain the advice of his or her
tax advisors with respect to the tax consequences of the purchase of the Granted
Shares and the provisions of this Agreement.

       

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      

      If the Participant has not filed an
election under Section 83 of the Code, the Participant shall be required to
deposit with the Company an amount of cash equal to the amount determined by the
Company to be required with respect to the statutory minimum of the
Participant’s estimated total federal, state and local tax obligations
associated with the termination of the Lapsing Forfeiture Right with respect to
the Granted Shares.  In connection with the
foregoing, the Participant agrees that the Company shall authorize a registered
broker(s) (the “Broker”) to sell on the date that the Granted Shares shall be
released from the Lapsing Forfeiture Right such number of Granted Shares as the
Company instructs the Broker to sell to satisfy the Company’s withholding
obligations, after deduction of the Broker’s commission, and the Broker shall
remit to the Company the cash necessary in order for the Company to satisfy its
withholding obligation.  To the extent the proceeds of such sale
exceed the Company’s tax withholding obligation the Company agrees to pay such
excess cash to the Participant as soon as practicable.  In addition,
if such sale is not sufficient to pay the Company ’s tax withholding obligation
the Participant agrees to pay to the Company as soon as practicable, including
through additional payroll withholding, the amount of any tax withholding
obligation that is not satisfied by the sale of shares of Common Stock. The
Participant agrees to hold the Company and the Broker harmless from all costs,
damages or expenses relating to any such sale.  The Participant
acknowledges that the Company and the Broker are under no obligation to arrange
for such sale at any particular price.  In connection with such sale
of Granted Shares, the Participant shall execute any such documents requested by
Broker in order to effectuate the sale of the Granted Shares and payment of the
withholding obligation to the Company.  The Participant acknowledges
that this paragraph is intended to comply with Section 10b5-1©(1(i)(B) under the
Exchange Act.

    

     

     

    
      8.           Equitable
Relief.  The Participant specifically acknowledges and agrees
that in the event of a breach or threatened breach of the provisions of this
Agreement or the Plan, including the attempted transfer of the Granted Shares by
the Participant in violation of this Agreement, monetary damages may not be
adequate to compensate the Company, and, therefore, in the event of such a
breach or threatened breach, in addition to any right to damages, the Company
shall be entitled to equitable relief in any court having competent
jurisdiction.  Nothing herein shall be construed as prohibiting the
Company from pursuing any other remedies available to it for any such breach or
threatened breach.

      

      9.           No Obligation to Maintain
Relationship.  The Company is not by the Plan or this Agreement
obligated to continue the Participant as an employee, director or consultant of
the Company or an Affiliate.  The Participant
acknowledges:  (a) that the Plan is discretionary in nature and may be
suspended or terminated by the Company at any time; (b) that the grant of the
Shares is a one-time benefit which does not create any contractual or other
right to receive future grants of shares, or benefits in lieu of shares; (c)
that all determinations with respect to any such future grants, including, but
not limited to, the times when shares shall be granted, the number of shares to
be granted, the purchase price, and the time or times when each share shall be
free from a lapsing repurchase or forfeiture right, will be at the sole
discretion of the Company; (d) that the Participant’s participation in the Plan
is voluntary; (e) that the value of the Shares is an extraordinary item of
compensation which is outside the scope of the Participant’s employment
contract, if any; and (f) that the Shares are not part of normal or expected
compensation for purposes of calculating any severance, resignation, redundancy,
end of service payments, bonuses, long-service awards, pension or retirement
benefits or similar payments.

      

      10.          Notices.  Any
notices required or permitted by the terms of this Agreement or the Plan shall
be given by recognized courier service, facsimile, registered or certified mail,
return receipt requested, addressed as follows:

      

      If to the Company:

      

      Zoo
Entertainment, Inc.

      3805
Edwards Road, Suite 605,

      Cincinnati,
Ohio 45209

      Attention:
Mark Seremet

       

      
        
           

        

        
          5

          
            

          

        

        
           

        

         

      

      If to the Participant:

      

      
        	
                [__]

              

      

      

      or to
such other address or addresses of which notice in the same manner has
previously been given.  Any such notice shall be deemed to have been
given on the earliest of receipt, one business day following delivery by the
sender to a recognized courier service, or three business days following mailing
by registered or certified mail.

      

      11.           Benefit of
Agreement.  Subject to the provisions of the Plan and the other
provisions hereof, this Agreement shall be for the benefit of and shall be
binding upon the heirs, executors, administrators, successors and assigns of the
parties hereto.

      

      12.           Governing
Law.  This Agreement shall be construed and enforced in
accordance with the laws of the State of Delaware, without giving effect to the
conflict of law principles thereof.  For the purpose of litigating any
dispute that arises under this Agreement, whether at law or in equity, the
parties hereby consent to exclusive jurisdiction in the State of Delaware and
agree that such litigation shall be conducted in the state courts of the State
of Delaware or the federal courts of the United States for the District of
Delaware.

      

      13.           Severability.  If
any provision of this Agreement is held to be invalid or unenforceable by a
court of competent jurisdiction, then such provision or provisions shall be
modified to the extent necessary to make such provision valid and enforceable,
and to the extent that this is impossible, then such provision shall be deemed
to be excised from this Agreement, and the validity, legality and enforceability
of the rest of this Agreement shall not be affected thereby.

      

      14.           Entire
Agreement.  This Agreement, together with the Plan, constitutes
the entire agreement and understanding between the parties hereto with respect
to the subject matter hereof and supersedes all prior oral or written agreements
and understandings relating to the subject matter hereof.  No
statement, representation, warranty, covenant or agreement not expressly set
forth in this Agreement shall affect or be used to interpret, change or restrict
the express terms and provisions of this Agreement provided, however, in any
event, this Agreement shall be subject to and governed by the Plan.

      

      15.           Modifications and
Amendments; Waivers and Consents.  The terms and provisions of
this Agreement may be modified or amended as provided in the
Plan.  Except as provided in the Plan, the terms and provisions of
this Agreement may be waived, or consent for the departure therefrom granted,
only by written document executed by the party entitled to the benefits of such
terms or provisions.  No such waiver or consent shall be deemed to be
or shall constitute a waiver or consent with respect to any other terms or
provisions of this Agreement, whether or not similar.  Each such
waiver or consent shall be effective only in the specific instance and for the
purpose for which it was given, and shall not constitute a continuing waiver or
consent.

      

      16.           Consent of Spouse/Domestic
Partner.  If the Participant has a spouse or domestic partner
as of the date of this Agreement, the Participant’s spouse or domestic partner
shall execute a Consent of Spouse/Domestic Partner in the form of Exhibit A hereto,
effective as of the date hereof.  Such consent shall not be deemed to
confer or convey to the spouse or domestic partner any rights in the Granted
Shares that do not otherwise exist by operation of law or the agreement of the
parties.  If the Participant subsequent to the date hereof, marries,
remarries or applies to the Company for domestic partner benefits, the
Participant shall, not later than 60 days thereafter, obtain his or her new
spouse/domestic partner’s acknowledgement of and consent to the existence and
binding effect of all restrictions contained in this Agreement by having such
spouse/domestic partner execute and deliver a Consent of Spouse/Domestic Partner
in the form of Exhibit A.

       

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      

      17.           Counterparts.  This
Agreement may be executed in one or more counterparts, and by different parties
hereto on separate counterparts, each of which shall be deemed an original, but
all of which together shall constitute one and the same instrument.

      

      18.           Data
Privacy.  By entering into this Agreement, the
Participant:  (a) authorizes the Company and each Affiliate, and any
agent of the Company or any Affiliate administering the Plan or providing Plan
record keeping services, to disclose to the Company or any of its Affiliates
such information and data as the Company or any such Affiliate shall request in
order to facilitate the grant of Shares and the administration of the Plan; (b)
waives any data privacy rights he or she may have with respect to such
information; and (c) authorizes the Company and each Affiliate to store and
transmit such information in electronic form.

      
 

      [THE NEXT
PAGE IS THE SIGNATURE PAGE]

       

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      

      IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day
and year first above written.

      

      
        	 
      	
                ZOO
      ENTERTAINMENT, INC.

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                By:

              	           
        
	 
      	
                Name:

              	 
      
	 
      	
                Title:

              	 
      
	 
      	 
      	 
      
	 
      	        
        
	 
      	
                Participant:

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	         
      
	 
      	
                Print
      Name:

              

      

       

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

       

      EXHIBIT
A

      

      CONSENT OF SPOUSE/DOMESTIC
PARTNER

      

      I,
____________________________, spouse or domestic partner of
_________________________, acknowledge that I have read the RESTRICTED STOCK
AGREEMENT dated as of _______________ (the “Agreement”) to which this Consent is
attached as Exhibit A and that I know its contents.  Capitalized terms
used and not defined herein shall have the meanings assigned to such terms in
the Agreement.  I am aware that by its provisions the Granted Shares
granted to my spouse/domestic partner pursuant to the Agreement are subject to a
Lapsing Forfeiture Right in favor of Zoo Entertainment, Inc. (the “Company”) and
that, accordingly, I may be required to forfeit to the Company any or all of the
Granted Shares of which I may become possessed as a result of a gift from my
spouse/domestic partner or a court decree and/or any property settlement in any
domestic litigation.

      

      I hereby
agree that my interest, if any, in the Granted Shares subject to the Agreement
shall be irrevocably bound by the Agreement and further understand and agree
that any community property interest I may have in the Granted Shares shall be
similarly bound by the Agreement.

      

      I agree
to the Lapsing Forfeiture Right described in the Agreement and I hereby consent
to the forfeiture of the Granted Shares to the Company by my spouse/domestic
partner or my spouse/domestic partner’s legal representative in accordance with
the provisions of the Agreement.  Further, as part of the
consideration for the Agreement, I agree that at my death, if I have not
disposed of any interest of mine in the Granted Shares by an outright bequest of
the Granted Shares to my spouse or domestic partner, then the Company shall have
the same rights against my legal representative to exercise its rights to the
Granted Shares with respect to any interest of mine in the Granted Shares as it
would have had pursuant to the Agreement if I had acquired the Granted Shares
pursuant to a court decree in domestic litigation.

      

      I
AM AWARE THAT THE LEGAL, FINANCIAL AND RELATED MATTERS CONTAINED IN THE
AGREEMENT ARE COMPLEX AND THAT I AM FREE TO SEEK INDEPENDENT PROFESSIONAL
GUIDANCE OR COUNSEL WITH RESPECT TO THIS CONSENT.  I HAVE EITHER
SOUGHT SUCH GUIDANCE OR COUNSEL OR DETERMINED AFTER REVIEWING THE AGREEMENT
CAREFULLY THAT I WILL WAIVE SUCH RIGHT.

      

      Dated as
of the _______ day of ________________, 200_.

       

      
        
          	 	       
       
	 
      	
                  Print
      name:

                

        

         

        
          
             

          

          
            A-1

            
              

            

          

          
             

          

           

        

      

      EXHIBIT
B

      

      Election
to Include Gross Income in Year

      of
Transfer Pursuant to Section 83(b)

      of
the Internal Revenue Code of 1986, as amended

      

      In accordance with Section 83(b) of the
Internal Revenue Code of 1986, as amended (the “Code”), the undersigned hereby
elects to include in his gross income as compensation for services the excess,
if any, of the fair market value of the property (described below) at the time
of transfer over the amount paid for such property.

      

      The
following sets for the information required in accordance with the Code and the
regulations promulgated hereunder:

      

      
        	
                1.

              	
                The
      name, address and social security number of the undersigned
      are:

              

      

      

      
        	
                 
      

              	
                Name:

              

      

      
        	
                 
      

              	
                Address:

              

      

      Social
Security No.:

      

      
        	
                2.

              	
                The
      description of the property with respect to which the election is being
      made is as follows:

              

      

      

      
        	
                 
      

              	
                ____________
      (___) shares (the “Shares”) of Common Stock, $0.001 par value per share,
      of Zoo Entertainment, Inc., a Delaware corporation (the
      “Company”).

              

      

      

      
        	
                3.

              	
                This
      election is made for the calendar year ____, with respect to the transfer
      of the property to the Taxpayer on
  _________________.

              

      

      

      
        	
                4. 

              	
                Description
      of restrictions:  The property is subject to the following
      restrictions:

              

      

      

      
        	
                 
      

              	
                In
      the event taxpayer is no longer a director of the Company prior to
      February 11, 2014, the taxpayer shall forfeit the Shares as set forth
      below:

              

      

      

      
        	
                 
      

              	
                A.

              	
                If
      the Participant’s Termination is prior to [__], all of the Granted Shares
      shall be forfeited to the Company.

              

      

      

      
        	
                 
      

              	
                B.

              	
                If
      the Participant’s Termination is on or after [__] but prior to [__],[__]%
      of the Granted Shares shall be forfeited to the Company (rounded up to the
      next highest whole number of
shares).

              

      

      

      
        	
                 
      

              	
                C.

              	
                If
      the Participant’s Termination is on or after [__] but prior to [__],[__]%
      of the Granted Shares shall be forfeited to the Company (rounded up to the
      next highest whole number of
shares).

              

      

      

      
        	
                 
      

              	
                D.

              	
                If
      the Participant’s Termination is on or after [__] but prior to [__],[__]%
      of the Granted Shares shall be forfeited to the Company (rounded up to the
      next highest whole number of
shares).

              

      

       

      
        	
                5.

              	
                The
      fair market value at time of transfer (determined without regard to any
      restrictions other than restrictions which by their terms will never
      lapse) of the property with respect to which this election is being made
      was not more than $____ per Share.

              

      

      

      
        	
                6.

              	
                The
      amount paid by taxpayer for said property was $___ per
    Share.

              

      

      

      
        	
                7.

              	
                A
      copy of this statement has been furnished to the
  Company.

              

      

       

      
        
           

        

        
          B-1

          
            

          

        

        
           

        

      

       

      Signed
this ____ day of ______, 200_.

       

      
        	 	         
       
	 
      	
                Print
      Name:

              

      

      

      
        
           

        

        
          B-2Unassociated Document

    GENESIS
BIOPHARMA, INC.

     

    2010
EQUITY COMPENSATION PLAN

     

    

     

    I.  ESTABLISHMENT
OF PLAN; DEFINITIONS

     

    1.          Purpose.  The
purpose of the Genesis Biopharma, Inc. 2010 Equity Compensation Plan is to
encourage certain, officers, employees, directors, and consultants of Genesis
Biopharma, Inc., a Nevada corporation (the "Company"), to acquire and hold stock
in the Company as an added incentive to remain with the Company and increase
their efforts in promoting the interests of the Company, and to enable the
Company to attract and retain capable individuals.

     

    2.          Definitions.  Unless
the context clearly indicates otherwise, the following terms shall have the
meanings set forth below:

     

    (a)           "Board"
shall mean the Board of Directors of the Company.

     

    (b)           "Code"
shall mean the Internal Revenue Code of 1986, as it may be amended from time to
time.

     

    (c)           "Committee"
shall mean (i) a committee made up of members of the Board who shall, from time
to time, be appointed by the Board, or (ii) if no such committee is formed, the
Board.

     

    (d)           "Company"
shall mean Genesis Biopharma, Inc., a Nevada corporation.

     

    (e)           "Consultants"
shall mean individuals who provide services to the Company and any Subsidiary
who are not Employees or Directors.

     

    (f)           "Directors"
shall mean the members of the Board of Directors of the Company.

     

    (g)           "Disability"
shall mean a medically determinable physical or mental condition which causes an
Employee, Director, or Consultant to be unable to engage in any substantial
gainful activity and which can be expected to result in death or to be of
long-continued and indefinite duration.

     

    (h)           "Employee"
shall mean any common law employee, including officers, of the Company or any
Subsidiary as determined under the Code and the Treasury Regulations
thereunder.

     

    (i)           "Fair
Market Value" shall mean (i) if the Stock is listed on a national securities
exchange or the NASDAQ system, the mean between the highest and lowest sales
prices for the Stock on such date, or, if no such prices are reported for such
day, then on the next preceding day on which there were reported prices; (ii) if
the Stock is not listed on a national securities exchange or the NASDAQ system,
the mean between the bid and asked prices for the shares on such date, or if no
such prices are reported for such day, then on the next preceding day on which
there were reported prices; or (iii) as determined in good faith by the
Company’s Board of Directors.

     

    (j)           "Grantee"
shall mean an officer, Employee, Director, or Consultant granted a Stock Option
or Stock Award under this Plan.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (k)          "Incentive
Stock Option" shall mean an option granted pursuant to the Incentive Stock
Option provisions as set forth in Part II of this Plan.

     

    (l)           "Non-Qualified
Stock Option" shall mean an option granted pursuant to the Non-Qualified Stock
Option provisions as set forth in Part III of this Plan.

     

    (m)         "Plan"
shall mean the Genesis Biopharma, Inc. 2010 Equity Compensation Plan as set
forth herein and as amended from time to time.

     

    (n)          "Restricted
Stock" shall mean Stock which is issued pursuant to the Restricted Stock Award
provisions as set forth in Part IV of this Plan.

     

    (o)          "Stock"
shall mean authorized but unissued shares of the Common Stock of the Company or
reacquired shares of the Company's Common Stock.

     

    (p)          "Stock
Appreciation Right" shall mean a stock appreciation right granted pursuant to
the Stock Appreciation Right provisions as set forth in Part II and III of this
Plan.

     

    (q)          "Stock
Award" shall mean an award of Restricted or Unrestricted Stock granted pursuant
to this Plan.

     

    (r)          "Stock
Option" shall mean an option granted pursuant to the Plan to purchase shares of
Stock.

     

    (s)          “Subsidiary”
shall mean any corporation (other than the Company) in an unbroken chain of
corporations beginning with and including the Company, if each of the
corporations other than the last corporation in the unbroken chain owns stock
possessing fifty percent (50%) or more of the total combined voting power of all
classes of stock in one of the other corporations in such chain.

     

    (t)          "Ten
Percent Shareholder" shall mean an Employee who at the time a Stock Option is
granted owns stock representing more than ten percent (10%) of the total
combined voting power of all stock of the Company or of its parent or subsidiary
corporation.

     

    (u)           "Unrestricted
Stock" shall mean Stock which is issued pursuant to the Unrestricted Stock
provisions as set forth in Part V of this Plan.

     

    3.           Shares of Stock Subject to
the Plan.  Subject to the provisions of Paragraph 2 of Part VI
of the Plan, the Stock which may be issued or transferred pursuant to Stock
Options and Stock Awards granted under the Plan and the Stock which is subject
to outstanding but unexercised Stock Options under the Plan shall not exceed
Three Million Five Hundred Thousand (3,500,000) shares in the
aggregate.  If a Stock Option shall expire and terminate for any
reason, in whole or in part, without being exercised or, if Stock Awards are
forfeited because the restrictions with respect to such Stock Awards shall not
have been met or have lapsed, the number of shares of Stock which are no longer
outstanding as Stock Awards or subject to Stock Options may again become
available for the grant of Stock Awards or Stock Options.  There shall
be no terms and conditions in a Stock Award or Stock Option which provide that
the exercise of an Incentive Stock Option reduces the number of shares of Stock
for which an outstanding Non-Qualified Stock Option may be exercised; and there
shall be no terms and conditions in a Stock Award or Stock Option which provide
that the exercise of a Non-Qualified Stock Option reduces the number of shares
of Stock for which an outstanding Incentive Stock Option may be
exercised.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    4.          Administration of the
Plan.  The Plan shall be administered by the
Committee.  Subject to the express provisions of the Plan, the
Committee shall have authority to interpret the Plan, to prescribe, amend, and
rescind rules and regulations relating to it, to determine the terms and
provisions of Stock Option agreements, and to make all other determinations
necessary or advisable for the administration of the Plan.  Any
controversy or claim arising out of or related to this Plan shall be determined
unilaterally by and at the sole discretion of the Committee.

     

    5.          Amendment or
Termination.  The Board may, at any time, alter, amend,
suspend, discontinue, or terminate this Plan; provided, however, that such
action shall not adversely affect the right of Grantees to Stock Awards or Stock
Options previously granted and no amendment, without the approval of the
stockholders of the Company, shall increase the maximum number of shares which
may be awarded under the Plan in the aggregate, materially increase the benefits
accruing to Grantees under the Plan, change the class of Employees eligible to
receive options under the Plan, or materially modify the eligibility
requirements for participation in the Plan.

     

    6.          Effective Date and Duration
of the Plan.  This Plan shall become effective on March 29,
2010.  This Plan shall terminate at such time as may be determined by
the Board, and no Stock Award or Stock Option may be issued or granted under the
Plan thereafter, but such termination shall not affect any Stock Award or Stock
Option theretofore issued or granted.

     

     

    II.  INCENTIVE
STOCK OPTION PROVISIONS

     

    1.          Granting of Incentive Stock
Options.

     

    (a)          Only
Employees of the Company shall be eligible to receive Incentive Stock Options
under the Plan.  Officers, Directors, and Consultants of the Company
who are not also Employees shall not be eligible to receive Incentive Stock
Options.

     

    (b)          The
purchase price of each share of Stock subject to an Incentive Stock Option shall
not be less than 100% of the Fair Market Value of a share of the Stock on the
date the Incentive Stock Option is granted; provided, however, that the purchase
price of each share of Stock subject to an Incentive Stock Option granted to a
Ten Percent Shareholder shall not be less than 110% of the Fair Market Value of
a share of the Stock on the date the Incentive Stock Option is
granted.

     

    (c)          No
Incentive Stock Option shall be exercisable more than ten (10) years from the
date the Incentive Stock Option was granted; provided, however, that an
Incentive Stock Option granted to a Ten Percent Shareholder shall not be
exercisable more than five (5) years from the date the Incentive Stock Option
was granted.

     

    (d)          The
Committee shall determine and designate from time to time those Employees who
are to be granted Incentive Stock Options and specify the number of shares
subject to each Incentive Stock Option.

     

    (e)          The
Committee, in its sole discretion, shall determine whether any particular
Incentive Stock Option shall become exercisable in one or more installments,
specify the installment dates, and, within the limitations herein provided,
determine the total period during which the Incentive Stock Option is
exercisable.  Further, the Committee may make such other provisions as
may appear generally acceptable or desirable to the Committee or necessary to
qualify its grants under the provisions of Section 422 of the Code.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (f)           The
Committee may grant at any time new Incentive Stock Options to an Employee who
has previously received Incentive Stock Options or other options whether such
prior Incentive Stock Options or other options are still outstanding, have
previously been exercised in whole or in part, or are canceled in connection
with the issuance of new Incentive Stock Options.  The purchase price
of the new Incentive Stock Options may be established by the Committee without
regard to the existing Incentive Stock Options or other options.

     

    (g)          Notwithstanding
any other provisions hereof, the aggregate fair market value (determined at the
time the option is granted) of the Stock with respect to which Incentive Stock
Options are exercisable for the first time by the Employee during any calendar
year (under all such plans of the Grantee's employer corporation and its parent
and subsidiary corporation) shall not exceed $100,000.

     

    2.          Exercise of Incentive Stock
Options.  The option price of an Incentive Stock Option shall
be payable on exercise of the option (i) in cash or by check, bank draft,
or postal or express money order, (ii) by the surrender of Stock then owned
by the Grantee, (iii) the proceeds of a loan from an independent broker-dealer
whereby the loan is secured by the option or the stock to be received upon
exercise, or (iv) any combination of the foregoing;
provided, that each such method and time for payment and each such
borrowing and terms and conditions of repayment shall then be permitted by and
be in compliance with applicable law.  Shares of Stock so surrendered
in accordance with clause (ii) or (iv) shall be valued at the Fair Market Value
thereof on the date of exercise, surrender of such Stock to be evidenced by
delivery of the certificate(s) representing such shares in such manner, and
endorsed in such form, or accompanied by stock powers endorsed in such form, as
the Committee may determine.

     

    3.          Termination of
Employment.

     

    (a)          If
a Grantee's employment with the Company is terminated other than by Disability
or death, the terms of any then outstanding Incentive Stock Option held by the
Grantee shall extend for a period ending on the earlier of the date on which
such Stock Option would otherwise expire or three months after such termination
of employment, and such Stock Option shall be exercisable to the extent it was
exercisable as of such last date of employment.

     

    (b)          If
a Grantee's employment with the Company is terminated by reason of Disability,
the term of any then outstanding Incentive Stock Option held by the Grantee
shall extend for a period ending on the earlier of the date on which such Stock
Option would otherwise expire or twelve months after such termination of
employment, and such Stock Option shall be exercisable to the extent it was
exercisable as of such last date of employment.

     

    (c)          If
a Grantee's employment with the Company is terminated by reason of death, the
representative of his estate or beneficiaries thereof to whom the Stock Option
has been transferred shall have the right during the period ending on the
earlier of the date on which such Stock Option would otherwise expire or twelve
months after such date of death, to exercise any then outstanding Incentive
Stock Options in whole or in part.  If a Grantee dies without having
fully exercised any then outstanding Incentive Stock Options, the representative
of his estate or beneficiaries thereof to whom the Stock Option has been
transferred shall have the right to exercise such Stock Options in whole or in
part.

     

    4.          Stock Appreciation
Rights

     

    (a)          Grant.  Stock
Appreciation Rights related to all or any portion of an Incentive Stock Option
may be granted by the Committee to any Grantee in connection with the grant of
an Incentive Stock Option or unexercised portion thereof held by the Grantee at
any time and from time to time during the term thereof.  Each Stock
Appreciation Right shall be granted at least at Fair Market Value on the date of
grant and be subject to such terms and conditions not inconsistent with the
provisions of this Part II as shall be determined by the Committee and included
in the agreement relating to such Stock Appreciation Right, subject in any
event, however, to the following terms and conditions of this Section
4.  Each Stock Appreciation Right may include limitations as to the
time when such Stock Appreciation Right becomes exercisable and when it ceases
to be exercisable that are more restrictive than the limitations on the exercise
of the Incentive Stock Option to which it relates.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (b)          Exercise.  No
Stock Appreciation Right shall be exercisable with respect to such related
Incentive Stock Option or portion thereof unless such Incentive Stock Option or
portion shall itself be exercisable at that time.  A Stock
Appreciation Right shall be exercised only upon surrender of the related
Incentive Stock Option or portion thereof in respect of which the Stock
Appreciation Right is then being exercised.

     

    (c)          Amount of
Payment.  On exercise of a Stock Appreciation Right, a Grantee
shall be entitled to receive an amount equal to the product of (i) the amount by
which the Fair Market Value of a share of Stock on the date of exercise of the
Stock Appreciation Right exceeds the option price per share specified in the
related Incentive Stock Option and (ii) the number of shares of Stock in respect
of which the Stock Appreciation Right shall have been exercised.

     

    (d)          Form of
Payment.  Stock Appreciation Rights may be settled in the form
of cash or Stock.  If the form of payment is cash, then the amount
shall be calculated pursuant to subsection (c) of this Section 4.  If
the form of payment is Stock, then the number of shares of Stock to be
distributed shall be the largest whole number obtained by dividing the amount
otherwise distributable in respect of such settlement by the Fair Market Value
of a share of Stock on the date of exercise of the Stock Appreciation
Right.  The value of fractional shares of Stock shall be paid in
cash.

     

    (e)          Effect of Exercise of Right
or Related Option.  If the related Incentive Stock Option is
exercised in whole or in part, then the Stock Appreciation Right with respect to
the Stock purchased pursuant to such exercise (but not with respect to any
unpurchased Stock) shall be terminated as of the date of exercise if such Stock
Appreciation Right is not exercised on such date.

     

    (f)           Non-transferability.  A
Stock Appreciation Right shall not be transferable or assignable by the Grantee
other than by will or the laws of descent and distribution, and shall be
exercisable during the Grantee's lifetime only by the Grantee.

     

    (g)          Termination of
Employment.  If the Grantee ceases to be an Employee of the
Company for any reason, each outstanding Stock Appreciation Right shall be
exercisable for such period and to such extent as the related Incentive Stock
Option or portion thereof.

     

     

    III.  NON-QUALIFIED
STOCK OPTION PROVISIONS

     

    1.          Granting of Stock
Options.

     

    (a)          Officers,
Employees, Directors, and Consultants shall be eligible to receive Non-Qualified
Stock Options under the Plan.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (b)          The
Committee shall determine and designate from time to time those officers,
Employees, Directors, and Consultants who are to be granted Non-Qualified Stock
Options and the amount subject to each Non-Qualified Stock Option.

     

    (c)          The
Committee may grant at any time new Non-Qualified Stock Options to an Employee,
Director, or Consultant who has previously received Non-Qualified Stock Options
or other Stock Options, whether such prior Non-Qualified Stock Options or other
Stock Options are still outstanding, have previously been exercised in whole or
in part, or are canceled in connection with the issuance of new Non-Qualified
Stock Options.

     

    (d)          The
Committee shall determine the purchase price of each share of Stock subject to a
Non-Qualified Stock Option.  Such price shall not be less than 100% of
the Fair Market Value of such Stock on the date the Non-Qualified Stock Option
is granted.

     

    (e)          The
Committee, in its sole discretion, shall determine whether any particular
Non-Qualified Stock Option shall become exercisable in one or more installments,
specify the installment dates, and, within the limitations herein provided,
determine the total period during which the Non-Qualified Stock Option is
exercisable.  Further, the Committee may make such other provisions as
may appear generally acceptable or desirable to the Committee, including
providing for a cashless exercise provision or the extension of a Non-Qualified
Stock Option, provided that such extension does not extend the option beyond the
period specified in paragraph (f) below.

     

    (f)           No
Non-Qualified Stock Option shall be exercisable more than ten (10) years from
the date such option is granted.

     

    2.          Exercise of Stock
Options.   The option price of a Non-Qualified Stock
Option shall be payable on exercise of the Stock Option (i) in cash or by
check, bank draft, or postal or express money order, (ii) by the surrender
of Stock then owned by the Grantee, (iii) the proceeds of a loan from an
independent broker-dealer whereby the loan is secured by the option or the stock
to be received upon exercise, (iv) by a cashless exercise if so granted by
the Committee, or (v) any combination of the foregoing;
provided, that each such method and time for payment and each such
borrowing and terms and conditions of repayment shall then be permitted by and
be in compliance with applicable law.  Shares of Stock so surrendered
in accordance with clause (ii) or (v) shall be valued at the Fair Market Value
thereof on the date of exercise, surrender of such Stock to be evidenced by
delivery of the certificate(s) representing such shares in such manner, and
endorsed in such form, or accompanied by stock powers endorsed in such form, as
the Committee may determine.

     

     3.         Termination of
Relationship.

     

    (a)          If
a Grantee's employment with the Company is terminated, a Director Grantee ceases
to be a Director, or a Consultant Grantee ceases to be a Consultant, other than
by reason of Disability or death, the terms of any then outstanding
Non-Qualified Stock Option held by the Grantee shall extend for a period ending
on the earlier of the date established by the Committee at the time of grant or
three months after the Grantee's last date of employment or cessation of being a
Director or Consultant, and such Stock Option shall be exercisable to the extent
it was exercisable as of the date of termination of employment or cessation of
being a Director or Consultant.

     

    (b)          If
a Grantee's employment is terminated by reason of Disability, a Director Grantee
ceases to be a Director by reason of Disability or a Consultant Grantee ceases
to be a Consultant by reason of Disability, the term of any then outstanding
Non-Qualified Stock Option held by the Grantee shall extend for a period ending
on the earlier of the date on which such Stock Option would otherwise expire or
twelve months after the Grantee's last date of employment or cessation of being
a Director or Consultant, and such Stock Option shall be exercisable to the
extent it was exercisable as of such last date of employment or cessation of
being a Director or Consultant.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (c)          If
a Grantee's employment is terminated by reason of death, a Director Grantee
ceases to be a Director by reason of death or a Consultant Grantee ceases to be
a Consultant by reason of death, the representative of his estate or
beneficiaries thereof to whom the Stock Option has been transferred shall have
the right during the period ending on the earlier of the date on which such
Stock Option would otherwise expire or twelve months following his death to
exercise any then outstanding Non-Qualified Stock Options in whole or in
part.  If a Grantee dies without having fully exercised any then
outstanding Non-Qualified Stock Options, the representative of his estate or
beneficiaries thereof to whom the Stock Option has been transferred shall have
the right to exercise such Stock Options in whole or in part.

     

    4.         
Stock Appreciation
Rights

     

    (a)          Grant.  Stock
Appreciation Rights related to all or any portion of a Non-Qualified Stock
Option may be granted by the Committee to any Grantee in connection with the
grant of a Non-Qualified Stock Option or unexercised portion thereof held by the
Grantee at any time and from time to time during the term
thereof.  Each Stock Appreciation Right shall be granted at least at
Fair Market Value on the date of grant and be subject to such terms and
conditions not inconsistent with the provisions of this Part III as shall be
determined by the Committee and included in the agreement relating to such Stock
Appreciation Right, subject in any event, however, to the following terms and
conditions of this Section 4.  Each Stock Appreciation Right may
include limitations as to the time when such Stock Appreciation Right becomes
exercisable and when it ceases to be exercisable that are more restrictive than
the limitations on the exercise of the Non-Qualified Stock Option to which it
relates.

     

    (b)          Exercise.  No
Stock Appreciation Right shall be exercisable with respect to such related
Non-Qualified Stock Option or portion thereof unless such Non-Qualified Stock
Option or portion shall itself be exercisable at that time.  A Stock
Appreciation Right shall be exercised only upon surrender of the related
Non-Qualified Stock Option or portion thereof in respect of which the Stock
Appreciation Right is then being exercised.

     

    (c)          Amount of
Payment.  On exercise of a Stock Appreciation Right, a Grantee
shall be entitled to receive an amount equal to the product of (i) the amount by
which the Fair Market Value of a share of Stock on the date of exercise of the
Stock Appreciation Right exceeds the option price per share specified in the
related Non-Qualified Stock Option and (ii) the number of shares of Stock in
respect of which the Stock Appreciation Right shall have been
exercised.

     

    (d)          Form of
Payment.  Stock Appreciation Rights may be settled in the form
of cash or Stock.  If the form of payment is cash, then the amount
shall be calculated pursuant to subsection (c) of this Section 4.  If
the form of payment is Stock, then the number of shares of Stock to be
distributed shall be the largest whole number obtained by dividing the amount
otherwise distributable in respect of such settlement by the Fair Market Value
of a share of Stock on the date of exercise of the Stock Appreciation
Right.  The value of fractional shares of Stock shall be paid in
cash.

     

    (e)          Effect of Exercise of Right
or Related Option.  If the related Non-Qualified Stock Option
is exercised in whole or in part, then the Stock Appreciation Right with respect
to the Stock purchased pursuant to such exercise (but not with respect to any
unpurchased Stock) shall be terminated as of the date of exercise if such Stock
Appreciation Right is not exercised on such date.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (f)           Non-transferability.  A
Stock Appreciation Right shall not be transferable or assignable by the Grantee
other than by will or the laws of descent and distribution, and shall be
exercisable during the Grantee's lifetime only by the Grantee.

     

    (g)          Termination of
Employment.  If the Grantee ceases to be an officer, Employee,
Director, or Consultant of the Company for any reason, each outstanding Stock
Appreciation Right shall be exercisable for such period and to such extent as
the related Non-Qualified Stock Option or portion thereof.

     

     

    IV.  RESTRICTED
STOCK AWARDS

     

    1.          Grant of Restricted
Stock.

     

    (a)  Officers, Employees,
Directors and Consultants shall be eligible to receive grants of Restricted
Stock under the Plan.

     

    (b)          The
Committee shall determine and designate from time to time those officers,
Employees, Directors and Consultants who are to be granted Restricted Stock and
the number of shares of Stock subject to such Stock Award.

     

    (c)          The
Committee, in its sole discretion, shall make such terms and conditions
applicable to the grant of Restricted Stock as may appear generally acceptable
or desirable to the Committee.

     

    2.          Termination of
Relationship.

     

    (a)          If
a Grantee's employment with the Company is terminated, a Director Grantee ceases
to be a Director, or a Consultant Grantee ceases to be a Consultant, prior to
the lapse of any restrictions applicable to the Restricted Stock, such Stock
shall be forfeited and the Grantee shall return the certificates representing
such Stock to the Company.

     

    (b)          If
the restrictions applicable to a grant of Restricted Stock shall lapse, the
Grantee shall hold such Stock free and clear of all such restrictions except as
otherwise provided in the Plan.

     

     

    V.  UNRESTRICTED
STOCK AWARDS

     

    1.          Grant of Unrestricted
Stock.

     

    (a)          Officers,
Employees, Directors, and Consultants shall be eligible to receive grants of
Unrestricted Stock under the Plan.

     

    (b)          The
Committee shall determine and designate from time to time those officers,
Employees, Directors and Consultants who are to be granted Unrestricted Stock
and the number of shares of Stock subject to such Stock Award.

     

    2.          Issuance of
Stock.  The Grantee shall hold Stock issued pursuant to an
Unrestricted Stock award free and clear of all restrictions except as otherwise
provided in the Plan.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    VI.  GENERAL
PROVISIONS

     

    1.          Substitution of
Options.  In the event of a corporate merger or consolidation,
or the acquisition by the Company of property or stock of an acquired
corporation or any reorganization or other transaction qualifying under Section
424 of the Code, the Committee may, in accordance with the provisions of that
Section, substitute Stock Options, Stock Awards and Stock Appreciation Rights
under this Plan for Stock Options, Stock Awards and Stock Appreciation Rights
under the plan of the acquired corporation provided (i) the excess of the
aggregate fair market value of the shares of Stock subject to a Stock Option
immediately after the substitution over the aggregate option price of such Stock
is not more than the similar excess immediately before such substitution and
(ii) the new Stock Option does not give the Grantee additional benefits,
including any extension of the exercise period.   Alternatively,
the Committee may provide that each Stock Option, Stock Award and Stock
Appreciation Right granted under the Plan shall terminate as of a date to be
fixed by the Board; provided, that no
less than thirty (30) days written notice of the date so fixed shall be given to
each holder, and each holder shall have the right, during the period of thirty
(30) days preceding such termination, to exercise the Stock Options, Stock
Awards and Stock Appreciation Rights as to all or any part of the Stock covered
thereby, including Stock as to which such Stock Options, Stock Awards and Stock
Appreciation Rights would not otherwise be exercisable.

     

    2.          Adjustment
Provisions.

     

    (a)          In
the event that a dividend shall be declared upon the Stock payable in shares of
the Company's common stock, the number of shares of Stock then subject to any
Stock Option or Stock Award outstanding under the Plan and the number of shares
reserved for the grant of Stock Options or Stock Awards pursuant to the Plan
shall be adjusted by adding to each such share the number of shares which would
be distributable in respect thereof if such shares had been outstanding on the
date fixed for determining the shareholders of the Company entitled to receive
such share dividend.

     

    (b)          If
the shares of Stock outstanding are changed into or exchanged for a different
number or class or other securities of the Company or of another corporation,
whether through split-up, merger, consolidation, reorganization,
reclassification or recapitalization, then there shall be substituted for each
share of Stock subject to any such Stock Option or Stock Award and for each
share of Stock reserved for the grant of Stock Options or Stock Awards pursuant
to the Plan the number and kind of shares or other securities into which each
outstanding share of Stock shall have been so changed or for which each share
shall have been exchanged.

     

    (c)          In
the event there shall be any change, other than as specified above in this
Section 2, in the number or kind of outstanding shares of Stock or of any shares
or other securities into which such shares shall have been changed or for which
they shall have been exchanged, then if the Board shall, in its sole discretion,
determine that such change equitably requires an adjustment in the number or
kind of shares theretofore reserved for the grant of Stock Options or Stock
Awards pursuant to the Plan and of the shares then subject to Stock Options or
Stock Awards, such adjustment shall be made by the Board and shall be effective
and binding for all purposes of the Plan and of each Stock Option and Stock
Award outstanding thereunder.

     

    (d)          Each
Stock Appreciation Right outstanding at the time of any adjustment pursuant to
this Section 2 and the number of outstanding Stock Appreciation Rights, shall be
adjusted, changed or exchanged in the same manner as related Stock
Options.

     

    (e)          In
the case of any such substitution or adjustment as provided for in this Section
2, the option price set forth in each outstanding Stock Option for each share
covered thereby prior to such substitution or adjustment will be the option
price for all shares or other securities which shall have been substituted for
such share or to which such share shall have been adjusted pursuant to this
Section 2, and the price per share shall be adjusted accordingly.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (f)           No
adjustment or substitution provided for in this Section 2 shall require the
Company to sell a fractional share, and the total substitution or adjustment
with respect to each outstanding Stock Option shall be limited
accordingly.

     

    (g)         
Upon any adjustment made pursuant to this Section 2 the Company will, upon
request, deliver to the Grantee a certificate setting forth the option price
thereafter in effect and the number and kind of shares or other securities
thereafter purchasable on the exercise of such Stock Option.

     

    3.          General.

     

    (a)          Each
Stock Option, Stock Award and Stock Appreciation Right shall be evidenced by a
written instrument containing such terms and conditions, not inconsistent with
this Plan, as the Committee shall approve.

     

    (b)          The
granting of a Stock Option, Stock Award or Stock Appreciation Right in any year
shall not give the Grantee any right to similar grants in future years or any
right to be retained in the employ of the Company, and all Employees shall
remain subject to discharge to the same extent as if the Plan were not in
effect.

     

    (c)          No
officer, Employee, Director, or Consultant and no beneficiary or other person
claiming under or through him, shall have any right, title or interest by reason
of any Stock Option or any Stock Award to any particular assets of the Company,
or any shares of Stock allocated or reserved for the purposes of the Plan or
subject to any Stock Option or any Stock Award except as set forth
herein.  The Company shall not be required to establish any fund or
make any other segregation of assets to assure the payment of any Stock Option
or Stock Award.

     

    (d)          No
right under the Plan shall be subject to anticipation, sale, assignment, pledge,
encumbrance, or charge except by will or the laws of descent and distribution,
and a Stock Option shall be exercisable during the Grantee's lifetime only by
the Grantee or his conservator.

     

    (e)          Notwithstanding
any other provision of this Plan or agreements made pursuant thereto, the
Company's obligation to issue or deliver any certificate or certificates for
shares of Stock under a Stock Option or Stock Award, and the transferability of
Stock acquired by exercise of a Stock Option or grant of a Stock Award, shall be
subject to all of the following conditions:

     

    (i)           Any
registration or other qualification of such shares under any state or federal
law or regulation, or the maintaining in effect of any such registration or
other qualification which the Board shall, in its absolute discretion upon the
advice of counsel, deem necessary or advisable; and

     

    (ii)           The
obtaining of any other consent, approval, or permit from any state or federal
governmental agency which the Board shall, in its absolute discretion upon the
advice of counsel, determine to be necessary or advisable.

     

    (f)           All
payments to Grantees or to their legal representatives shall be subject to any
applicable tax, community property, or other statutes or regulations of the
United States or of any state or country having jurisdiction over such
payments.  The Grantee may be required to pay to the Company the
amount of any withholding taxes which the Company is required to withhold with
respect to a Stock Option or its exercise or a Stock Award.  In the
event that such payment is not made when due, the Company shall have the right
to deduct, to the extent permitted by law, from any payment of any kind
otherwise due to such person all or part of the amount required to be
withheld.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (g)          In
the case of a grant of a Stock Option or Stock Award to any Employee of a
Subsidiary, the Company may, if the Committee so directs, issue or transfer the
shares, if any, covered by the Stock Option or Stock Award to such Subsidiary,
for such lawful consideration as the Committee may specify, upon the condition
or understanding that such Subsidiary will transfer the shares to the Employee
in accordance with the terms of the Stock Option or Stock Award specified by the
Committee pursuant to the provisions of the Plan.

     

    (h)          A
Grantee entitled to Stock as a result of the exercise of a Stock Option or grant
of a Stock Award shall not be deemed for any purpose to be, or have rights as, a
shareholder of the Company by virtue of such exercise, except to the extent that
a stock certificate is issued therefor and then only from the date such
certificate is issued.  No adjustments shall be made for dividends or
distributions or other rights for which the record date is prior to the date
such stock certificate is issued.  The Company shall issue any stock
certificates required to be issued in connection with the exercise of a Stock
Option with reasonable promptness after such exercise.

     

    (i)           The
grant or exercise of Stock Options granted under the Plan or the grant of a
Stock Award under the Plan shall be subject to, and shall in all respects comply
with, applicable law relating to such grant or exercise, or to the number of
shares of Stock which may be beneficially owned or held by any
Grantee.

     

    (j)          
The Company intends that the Plan shall comply with the requirements of Rule
16b-3 (the “Rule”) under the Securities Exchange Act of 1934, as amended, during
the term of this Plan. Should any additional provisions be necessary for the
Plan to comply with the requirements of the Rule, the Board may amend this Plan
to add to or modify the provisions of this Plan accordingly.

     

    (k)          The
Company intends that the Plan shall comply with the requirements of Section 409A
of the Code, to the extent applicable.  Should any changes to the Plan
be necessary for the Plan to comply with the requirements of Code Section 409A,
the Board may amend this Plan to add to or modify the provisions of this Plan
accordingly.

     

    (l)           The
Company will seek stockholder approval in the manner and to the degree required
under applicable laws.  If the Company fails to obtain any required
stockholder approval of the Plan within twelve (12) months after the date this
Plan is adopted by the Board, pursuant to Section 422 of the Code, any Option
granted as an Incentive Stock Option at any time under the Plan will not qualify
as an Incentive Stock Option within the meaning of the Code and will be deemed
to be a Non-Qualified Stock Option.

    

    [End
of Document]

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