Document:

exv10w2

Exhibit 10.2

LEASE AGREEMENT

1011 Murray-Holladay Rd.

     THIS LEASE AGREEMENT (the “Lease”) is made and entered into as of this 1st day of September,
2003, by and between 1011 L.L.C., a Utah Limited Liability Company (the “Landlord”), and SafeScan
Medical Systems, LLC., a Utah Limited Liability Company (the “Tenant”).

          For and in consideration of the rental to be paid by Tenant and of the covenants and
agreements herein set forth to be kept and performed by Tenant, Landlord hereby leases to Tenant
and Tenant hereby leases from Landlord, the Leased Premises (as hereinafter defined) and certain
other areas, rights and privileges for the term, at the rental and subject to and upon all of the
terms, covenants and agreements hereinafter set forth.

          I. PREMISES

          1.1. Description of Premises. Landlord does hereby demise, lease and let unto Tenant, and
Tenant does hereby take and receive from Landlord the following:

               (a). That certain floor area containing approximately 14,100 rentable square feet (the
“Leased Premises”) comprised of the entire 

1st floor of the office building (the
“Building”) located at approximately 1011 East Murray-Holladay Rd., Salt Lake City, Utah as shown
crosshatched on Exhibit “A” attached hereto.

               (b). The non-exclusive right to use Tenant’s Proportionate Share of the Common Areas (as
defined in Section 18.1 below).

               (c). Such non-exclusive use of rights-of-way, easements and similar rights with respect to
the Building and Property as may be reasonably necessary for ingress to, and egress from, the
Leased Premises and the Common Areas.

               (d). The non-exclusive right to use those areas designated for vehicular parking, including
the non-exclusive right to the use of fifty-five (55) parking stalls on an unreserved basis.

          1.2. Changes to Building. Landlord hereby reserves the right at any time and from time to time
to make changes, alterations or additions to the Building or to the Property. Tenant shall not in
such event claim or be allowed any damages for injury or inconvenience occasioned thereby and shall
not be entitled to terminate this Lease, provided that rent payable hereunder shall abate on a
pro-rata basis if all or a portion of the leased premises described in paragraph 1.1(a) herein are
rendered unusable during said construction.

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          II. TERM

          2.1. Length of Term. The term of this Lease shall be for a period of three (3) years,
commencing on September 1st, 2003, and terminating at 11:59 P.M. on September 8, 2006. Except for
the return of any money deposited with Landlord by Tenant, Landlord shall not have any liability
to Tenant arising out of Landlords failure to deliver the Premises to Tenant on the Commencement
Date.

          III. BASIC RENTAL PAYMENT

          3.1. Basic Annual Rent. Tenant agrees to pay to Landlord as basic annual rent (the “Basic
Rent”) the amounts shown in the schedule below:

	 	 	 	 
	 	Year 1

	 	See Schedule Below
	 	 
	 	 
	 	Year 2

	 	See Schedule Below
	 	 
	 	 
	 	Year 3

	 	See Schedule Below

          3.2 Offset in Basic Rent for Landlord’s Contribution to Tenant Improvements. As outlined in
paragraph 3.3 below, Landlord shall provide a Tenant with an improvement allowance in the form of a
reduction in rents already included as stated below in the total amount of $30,000.00 (“Tenant
Improvement Allowance”) to be offset against Tenant’s monthly installment payments of Basic Rent in
the first four months of the first year of the lease terms.

          3.3 Payment of Annual Basic Rent. Annual Basic Rent shall be payable without prior demand in
monthly installments detail below in advance on the 1st day of each calendar month during the Term.

	 	 	 	 	 
	MONTHS	 	MONTHLY INSTALLMENT
	1
	 	$	12,500.00	 
	2
	 	$	0.00	 
	3
	 	$	10,000.00	 
	4
	 	$	10,000.00	 
	5
	 	$	10,000.00	 
	6-12
	 	$	17,250.00	 
	13-24
	 	$	17,767.50	 
	25-35
	 	$	18,300.53	 
	36
	 	$	1,060.90	 

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          3.4 Basic Rent includes the following services:

                Real Property Taxes.

                Sewer & Water

                Gas

                Electric

          3.5
Janitorial services for the Premises described in paragraph 1.1(a) and the first floor
bathrooms are not included in Basic Rent. Telephone, network and cable/satellite television
services are not included in Basic Rent.

          3.6. Late Fees. If any payment is not made by the tenth -(10th) day following the
due date of the payment, then there shall be added to the payment an amount equal to seven
percent (7%) of the payment as an agreed late charge on the twentieth day of each and every month
in which a payment is delinquent.

IV. ADDITIONAL RENT

          4.1 In addition to the Basic Rent, in each applicable year the Tenant shall pay the Landlord
as Additional Rent its proportional share of the building operating costs of any increases in
building operating expense over and above $5.00 per rentable square foot per 12 month period of
the lease agreement. To calculate the Tenant’s share of costs over $5.00, see Building Operating
Costs as defined below in 4.2, a, b, and c.

          4.2. Building Operating Costs are all those costs not directly paid by the Tenant and fall
in the following categories:

	 	(a)	 	All real and personal property taxes and assessments of every
kind and nature relating to the Building and its operation and actually paid by
Landlord. Such costs shall be divided by the total square footage of the
building to determine the amount per square foot.
	 
	 	(b)	 	All utilities, including, but not limited to, sewer & water,
gas and electric. These utility costs shall be divided by the occupied rentable
square footage to determine the amount per square foot. If the occupied
rentable square footage changes during the 12 month period, the costs will be
pro-rated based on the time and square footage that is occupied.
	 
	 	(c)	 	Insurance, management, and maintenance, including, but not
limited to, landscaping maintenance, asphalting, snow removal, window cleaning,

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	 	 	 	roof maintenance and all other maintenance obligations of Landlord provide
in this Lease. Such costs shall be divided by the total square footage of
the building to determine the amount per square foot.

          4.3. Additional Rent shall be computed as follows:

	 	(a)	 	Within 60 days after the end of each 12 month lease period,
Landlord will furnish Tenant an itemized statement indicating the Tenant’s
portion of the Building Operating Cost for the 12 month lease period.
	 
	 	(b)	 	If Tenant’s share of the Building Operating Costs exceeds
$5.00 per square foot, Landlord will provide Tenant with an invoice for the
amount of the Additional Rent due to Landlord for the first 12 month lease
period. Tenant shall have 60 days after the invoice date to pay the
Additional Rent due. In addition, the Tenant’s monthly rent for the next 12
month lease period shall be adjusted to reflect Landlord’s estimate of
Additional Rent for the following year. Thereafter, Landlord shall furnish
Tenant with a statement at the end of each 12-month lease period detailing the
Building Operating Cost for the previous 

12-month period. The amount of
Addition Rent shall thereafter be increased or decreased on an annual basis to
reflect any change in Operating Cost.
	 
	 	(c)	 	When Tenant’s share of the increase in actual Building
Operating Costs is less than the estimated Additional Rent paid by Tenant,
Landlord shall refund such excess in a lump sum within 120 days after the end
of the 12 month period.

          4.4. Additional Monetary Obligations. Tenant shall also pay as Additional Rent all other sums
of money as shall become due and payable by Tenant to Landlord under any other section of this
Lease in the manner described in said section. Landlord shall have the same remedies in the case of
a default in the payment of Additional Rent as are available to Landlord in the case of a default
in the payment of one or more installments of Basic Rent.

          V. SECURITY DEPOSIT

          5.1. Deposit. Prior to occupying the Premises, Tenant shall deposit with Landlord the sum of
Two thousand Five hundred and No/100 Dollars ($ 2,500.00 ) as security for performance of all
terms, covenants, and conditions required to be performed herein. Such sum shall be returned to
Tenant after the expiration of the term of this Lease and delivery of possession of the Leased
Premises to Landlord if at such time Tenant has performed all terms, covenants and conditions of
this Lease. Landlord may commingle said sum with its own funds

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and use said sum for any purposes as Landlord may determine. Tenant is not entitled to any
accrued interest on the Security Deposit.

          5.2. Default. In the event of default by Tenant in respect to any of its obligations under
this Lease, including, but not limited to, the payment of rent or additional rent, Landlord may
use, apply, or retain all or any part of the security deposit for the payment of any unpaid Basic
Rent or for any other amount which Landlord may be required to expend by reason of the default of
the Tenant, including any damages or deficiency in the reletting of the Premises, regardless of
whether or not the accrual of such damages or deficiency occurs before or after an eviction or a
portion of the security deposit is so used or applied. Tenant shall, upon thirty (30) days
written demand, deposit cash with Landlord in an amount sufficient to restore the security deposit
to its original amount.

          VI. USE

          6.1. Use of Leased Premises. The Leased Premises shall be used and occupied by Tenant for
general office purposes only and for no other purpose whatsoever without the prior written consent
of Landlord. Landlord may withhold consent for any or no reason. Any variation or deviation
from the specific use expressly set forth herein shall be deemed a default of this Lease.

	 	(a)	 	Landlord authorizes Tenant to use the Leased Premises for light manufacture, operation, storage, testing and all other aspects of
designing, manufacturing, assembling, building, packaging, shipping, and
operating medical equipment. Such authorization includes but is not limited
to the assembly and testing of electronic components, manufacture of
mechanical components including machining, fabrication, assembly, and
testing, as well as the operation of such equipment including patient
testing. Prior to installing any machinery or equipment, Tenant shall first
provide Landlord with a list of the equipment to be installed, the equipment
specifications, including noise, vibration and waste information. Landlord
may object to the installation of any item of machinery which would not be
considered “light manufacturing” due to noise, vibration, or waste
accumulation.

          6.2. Prohibition of Certain Activities or Uses. Notwithstanding the approval of Landlord of
the uses described in paragraph 6.1(a) above, the Tenant shall not do or permit anything to be done
in or about, or bring or keep anything in the Leased Premises which is prohibited by this Lease or
which will in any way:

	 	(a)	 	Adversely affect any fire, liability or other insurance policy
carried with respect to the Building, the Improvements or any of the contents
of the Building (except with Landlord’s express written permission, which will

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	 	 	 	not be unreasonably withheld, but which may be contingent upon Tenant’s
agreement to bear any additional costs, expenses or liability for risks
that may be involved).

	 	(b)	 	Obstruct or interfere with any right of any other tenant or
occupant of the Building or injure or annoy such persons.
	 
	 	(c)	 	Conflict with or violate any law, statute, ordinance, rule,
regulation or requirement of any governmental unit, agency or authority
(whether existing now or enacted in the future, known or unknown, foreseen or
unforeseen).
	 
	 	(d)	 	Overload the floors or otherwise damage the structural
soundness of the Leased Premises, or Building, or any part thereof.

          6.3. Affirmative Obligations With Respect to Use. Tenant will at its sole cost and expense
comply with all governmental laws, ordinances, regulations, and requirements, of any lawful
governmental body of authorities having jurisdiction over the Leased Premises which are now in
force or which hereafter may be in force; keep the Leased Premises in a clean, neat and orderly
condition, free of objectionable noise, odors, or nuisance; in all respects and at all times fully
comply with all health and policy regulations; and not suffer, permit, or commit any waste.

          6.4. Suitability. Tenant acknowledges that except as expressly set forth in this Lease,
neither Landlord nor any other person has made any representation or warranty with respect to the
Leased Premises or any other portion of the Building or Improvements. Specifically, but not in
limitation of the foregoing, no representation has been made or relied on with respect to the
suitability of the Leased Premises or any other portion of the Building or Improvements for the
conduct of Tenant’s business. By executing this lease the Tenant waives any claim that the Leased
Premises, Building and Improvements are in unsatisfactory condition.

          6.5. Taxes. Tenant shall pay all taxes, assessments, charges, and fees which during the term
hereof may be imposed, assessed or levied by any governmental or public authority against or upon
Tenant’s use of the Leased Premises or any personal property or fixture kept or installed therein
by Tenant.

          6.6 Hazardous Waste. Tenant agrees to seek written approval of Landlord prior to keeping or
using or permitting to be kept or used on the Leased Premises any flammable fluids, explosives or
any “hazardous substance,” “solid waste,” or “hazardous waste” as said terms are defined in 42
U.S.C. 9601(14) and 40 C.F.R. 261.1 et seq.

          6.7. Rules and Regulations. Tenant shall comply with all the rules and regulations attached to
this Lease as Exhibit “B” and any other such rules as the Landlord may implement to insure
the rights of building tenants.

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          VII. UTILITIES AND SERVICE

          7.1. Obligations of Landlord. During the term of this Lease the Landlord agrees to cause to
be furnished to the Leased Premises during customary business hours and during generally recognized
business days the following utilities and services:

	 	(a)	 	Electricity, water, gas and sewer service.
	 
	 	(b)	 	Access to demarcation point of local telephone company within the building.
Landlord shall not provide telephone lines, stations, switching equipment, networking
facilities or distribution cabling that is currently located at the facility.
	 
	 	(c)	 	Heat and air-conditioning to such extent and to such levels as, is reasonably
required for the comfortable use and occupancy of the Leased Premises subject however
to any limitations imposed by any government agency. Heat and air conditioning will be
provided Monday through Saturday from 9:00 a.m to 9:00 p.m.
	 
	 	(d)	 	Fluorescent bulbs and other lighting currently used in fixtures originally
installed in the Premises.
	 
	 	(e)	 	Security (including lighting for common halls, stairways, entries and
restrooms) to such extent as is usual and customary in similar buildings in Salt Lake
County, Utah.
	 
	 	(f)	 	Snow removal service.
	 
	 	(g)	 	Landscaping and grounds keeping service.

          7.2. Additional Limitations.

	 	(a)	 	Tenant will not, without the written consent of Landlord: (1) use any machinery
on the Leased Premises using current in excess of 110 volts which will in any way to
any extent increase the amount of electricity or water designated above; or (2) connect
with electric current or water pipes, except through those now existing in the Leased
Premises, any apparatus or device for the purpose of using electric current or water.
	 
	 	(b)	 	If Tenant shall require water, electric current or natural gas in excess of
that commonly furnished or supplied for use in similar Leased Premises, Tenant shall
first procure the consent of Landlord for the use. The Landlord may cause a

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	 	 	 	water meter, electric current meter or natural gas meter to be installed in the
Leased Premises to measure the amount of water, electric current, or natural gas
consumed for any such other use. The cost of such meters and of installation,
maintenance, and repair thereof shall be paid for by Tenant; and Tenant agrees to
pay Landlord promptly upon demand for all such water, electric current, or natural
gas consumed as shown by said meters at the rates charged for such services plus
any additional expense incurred in keeping account of the water, electricity or
natural gas so consumed.

	 	(c)	 	If heat generating machines or devises are used in the Leased Premises which
affect the temperature otherwise maintained by the air conditioning system, Landlord
reserves the right to install additional or supplementary air conditioning units for
the Leased Premises. The entire cost of installing, operating, maintaining and
repairing the same shall be paid by Tenant to Landlord promptly upon demand by
Landlord.

          7.3 Obligations of Tenant. During the term of this Lease the Tenant agrees to pay and
furnish the following:

	 	(a)	 	Assumption of ADT Security Contract;
	 
	 	(b)	 	Janitorial Service;
	 
	 	(c)	 	Telephone, network or cable service.

          7.4 Limitation of Landlord’s Liability. Landlord shall not be liable for, and Tenant shall
not be entitled to terminate this Lease or effectuate any abatement or reduction of rent by reason
of, Landlord’s failure to provide or furnish any of the foregoing utilities or services if such
failure was reasonably beyond the control of Landlord.

          VIII. MAINTENANCE AND REPAIRS; ALTERATIONS, ACCESS

          8.1 Maintenance and Repairs by Landlord. Landlord shall maintain in good order, condition and
repair the Building and Improvements including exterior landscaping except the Leased Premises and
those other portions of the Building leased, rented or otherwise occupied by persons not
affiliated with the Landlord. Landlord, at its expense, will make, or cause to be made structural
repairs to exterior walls, structural columns and structural floor which collectively enclose the
Premises (excluding, however, all doors, door frames, storefronts); provided Tenant shall give
Landlord notice of the necessity for such repairs, and shall immediately notify Landlord of any
hazardous, unsafe or dangerous conditions on or around the Leased Premises. Notwithstanding the
foregoing, if the necessity for such repairs shall have arisen from or shall have been caused by
the negligence or willful acts of Tenant, its agents,

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concessionaires, officers, employees, licensees, invitees or contractors, Landlord may make or
cause the same to be made, but shall not be obligated to do so, and Tenant agrees to pay to
Landlord promptly upon Landlord’s demand, as Additional Rental, the cost of such repairs, if made,
with interest until paid. In the event Landlord elects not to make such repairs caused by Tenant’s
negligence, Landlord may require Tenant to make such repairs at Tenant’s sole cost and expense
Landlord shall supply Building and Improvements including exterior landscaping other than the
Leased Premises and first-floor bathrooms in a clean, sanitary and orderly condition, the cost and
expense of which shall be included in Basic Rent.

          8.2 Maintenance and Repairs by Tenant. Tenant, at Tenant’s sole cost and expense and without
prior demand being made, shall maintain the Leased Premises in good order, condition and repair,
reasonable wear and tear expected. In addition, Tenant shall pay for all janitorial service for
the Leased Premises and the first-floor bathrooms of the Building.

          8.3 Alterations. Tenant shall not make or cause to be made any alterations, additions or
improvements or install or cause to be installed any fixtures, signs, floor coverings, interior or
exterior lighting, plumbing fixtures, or shades or awnings, or make any other changes to the
Leased Premises without first obtaining Landlord’s written
approval. Tenant shall present to the
Landlord plans and specifications for such work at the time approval is sought. In the event
Landlord consents to the making of any alterations, additions, or improvements to the Leased
Premises by Tenant, the same shall be made by Tenant at Tenant’s sole cost and expense. All such
work with respect to any alterations, additions, and changes shall be done in a first-class and
workmanlike manner and diligently completed so that, except as absolutely necessary during the
course of such work, the Leased Premises shall at all times be a complete operating unit. Any such
alterations, additions, or changes shall be performed and done strictly in accordance with all
laws and ordinances relating thereto. In performing the work or any such alterations, additions,
or changes, Tenant shall have the same performed in such a manner as not to obstruct access to
any portion of the Building. Any alterations, additions, or improvements to or of the Leased
Premises, including, but not limited to, wall covering, paneling, and built-in cabinet work shall
at once become a part of the realty and shall be surrendered with the Leased Premises unless
Landlord otherwise elects at the end of the term hereof.

          8.4. Landlord’s Access to Leased Premises. Landlord shall have the right to place, maintain,
and repair all utility equipment of any kind in, upon, and under the Leased Premises as may be
necessary for the servicing of the Leased Premises and other portion of the Building. Landlord
shall also have the right to enter the Leased Premises at all times to inspect it; to show it to
prospective purchasers, mortgagees, tenants, and lessees; and to make such repairs, additions,
alterations, or improvements as Landlord may deem desirable. Landlord shall be allowed to take all
material upon said Leased Premises that may be required therefor without the same constituting an
actual or constructive eviction of Tenant in whole or in part. The rents reserved herein shall in
no way abate while said work is in progress by reason of loss or interruption of Tenant’s business
or otherwise, and Tenant shall have no claim for damages.

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During the three (3) months prior to expiration of this Lease or of any renewal term, Landlord
may place upon the Leased Premises “To Let” signs which Tenant shall permit to remain thereon.

          IX. ASSIGNMENT AND SUBLETTING

          9.1. Condition for Assignment and Subletting. Tenant shall not transfer, assign, mortgage
or hypothecate this Lease, in whole or in part, or permit the use of the Leased Premises by any
person or persons other than Tenant, or sublet the Leased Premises, or any part thereof, without
the prior written consent of Landlord in each instance. Such prohibition against assigning or
subletting shall include any assignment or subletting by operation of law. Any transfer of this
Lease from the Tenant by merger, consolidation, transfer of assets, or liquidation shall constitute
an assignment for purposes of this Lease. Notwithstanding the foregoing, Landlord shall not
unreasonably withhold its approval of an assignment or sublease.

          9.2. Consent Required. Any assignment or subletting without Landlord’s consent shall be void,
and shall constitute a default hereunder which, at the option of Landlord, shall result in the
termination of this Lease or exercise of Landlord’s other remedies hereunder. Consent to any
assignment or subletting shall not operate as a waiver of the necessity for consent to any
subsequent assignment or subletting, and the terms of such consent shall be binding upon any person
holding by, under, or through Tenant.

          9.3. Landlord’s Right in Event of Assignment. If this Lease is assigned or if the Leased
Premises or any portion thereof are sublet or occupied by any person other than the Tenant,
Landlord may collect rent and other charges from such assignee or other party and apply the amount
collected to the rent and other charges reserved hereunder. However, such collection shall not
constitute consent or waiver of the necessity of consent to such assignment, subleasing, or other
transfer; and it shall not constitute the recognition of such assignee, sublessee, or other party
as the Tenant hereunder or a released of Tenant from the further performances of all the covenants
and obligations of Tenant herein contained. In the event that Landlord shall consent to a sublease
or assignment hereunder, Tenant shall pay to Landlord reasonable fees, not to exceed $300.00
incurred in connection with processing of documents necessary to the giving of such consent.

          9.4. Landlord’s Right to Assign. Landlord may assign its interest in this Lease without
condition or restriction.

          X. INDEMNITY

          10.1. Indemnification By Tenant. Tenant shall indemnify Landlord and save it harmless from and
against any and all suits, actions, damages, claims, liability and expense in connection with loss
of life, bodily or personal injury, or property damage arising from or out of any

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occurrence in, upon, at or from the Leased Premises, or the occupancy or use by Tenant of Leased
Premises or any part thereof or occasioned wholly or in part by any act or omission of Tenant, its
agents, contractors, employees, servants, invitees, licensees, or concessionaires.

          10.2. Release of Landlord. Except for Landlord’s negligence, Landlord shall not be responsible
or liable at any time for any loss or damage to Tenant’s personal property or to Tenant’s business. Tenant shall store its property in and shall use and enjoy the Leased Premises and all other
portions of the Building and Improvements at its own risk, and hereby releases Landlord, to the
full extent permitted by law, from all claims of every kind resulting in loss of life, personal or
bodily injury, property damage or loss of business income.

          10.3. Litigation. In case either party, without fault on its part, shall be made a party to
any litigation commenced by or against the other, then – the litigant shall protect and hold harmless the other party and shall pay all of the other party’s costs, expenses, and reasonable
attorney’s fees.

          XI. INSURANCE

          11.1 Tenant will maintain insurance as follows:

	 	a)	 	Liability insurance naming Landlord as co-insured with limits
of not less than $1 million per person or accident.
	 
	 	b)	 	Insurance protecting it from interruption from business by
reason of casualty, fire, legal, sprinkler damage, or interruption of
business.
	 
	 	c)	 	Property and casualty insurance sufficient to cover Tenant’s
contents, furnishings, and equipment and damage to Leased Premise.

          All items required to be covered by Tenant’s insurance shall relieve Landlord of all responsibility for the items so covered, the release of liability being one of the conditions of this Lease.

          XII. DESTRUCTION OR CONDEMNATION

          12.1 Landlord’s Obligation to Repair and Reconstruct.

	 	(a)	 	If the Premises shall be damaged by fire, the elements,
accident or other casualty (any of such causes being referred to herein as a
“Casualty”), but the Premises shall not be thereby rendered wholly or
partially

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	 	 	 	untenantable, Landlord shall promptly cause such damage to be repaired and
there shall be no abatement of Rental.
	 
	 	(b)	 	If, as the result of Casualty, the Premises shall be rendered
wholly or partially untenantable, then, subject to the provisions of Paragraph
7.2, Landlord shall cause such damage to be repaired and, provided such damage
is not caused by the negligence of Tenant, its agents, concessionaires,
officers, employees, contractors, licensees or invitees, all Basic Rent shall
be abated proportionately as to the portion of the Premises rendered
untenantable during the period of such untenantability. All such repairs shall
be made at the expense of Landlord, subject to Tenant’s responsibilities set
forth herein. Landlord shall not be liable fo interruption to Tenant’s
business or for damage to or replacement or repair of Tenant’s personal
property (including, without limitation, inventory, trade fixtures, floor
coverings, furniture and other property removable by Tenant under the
provisions of this Lease) or to any leasehold improvements installed in the
Premises, all of which damage, replacement or repair shall be undertaken and
completed by Tenant promptly.

          12.2 Joint Option to Terminate Lease. If the Premises are (a) rendered wholly untenantable, or
(b) damaged as a result of any cause which is not covered by Landlord’s insurance, or if (c) the
Building is damaged to the extent of fifty percent (50%) or more, then, in any of such events, either party may elect to terminate this Lease by giving to notice of such election within sixty
(60) days after the occurrence of such event. If such notice is given, the rights and obligations of
the parties shall cease as of the date of such notice, and Basic Rent shall be adjusted as of the
date of termination.

          12.3 Demolition of Landlord’s Building. If Landlord’s Building shall be so substantially
damaged that it is reasonably necessary, in Landlord’s judgment, to demolish such Building for the
purpose of reconstruction, Landlord may demolish the same, in which event the Lease shall terminate
and the Landlord shall return to the Tenant all rents and/or security deposits, and/or other monies
paid but unused for any part of the unused term.

          12.4 Insurance Proceeds. If neither party elects to terminate this Lease pursuant to Paragraph
7.2, Landlord shall, subject to the prior rights of any Mortgagee, disburse and apply any insurance
proceeds received by Landlord to the restoration and rebuilding of Landlord’s Building in
accordance with Paragraph 7.1 hereof. All insurance proceeds payable with respect to the Premises
(excluding proceeds payable to Tenant pursuant to Section 11) shall belong to and shall be payable
to Landlord.

          12.5
Effect of Taking. If the whole or any part of the Premises described
in paragraph 1.1(a)
shall be taken under the power of eminent domain, this Lease shall terminate as to the

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part so taken on the date Tenant is required to yield possession thereof to the condemning
authority. Landlord shall make such repairs and alterations as may be necessary in order to
restore the part not taken to useful condition and all Basic Rent shall be reduced in proportion
to the floor area of the Premises so taken. If the aforementioned taking renders the remainder of
the Premises unsuitable for the permitted use, either party may terminate this Lease as of the
date when Tenant is required to yield possession by giving notice to that effect within thirty
(30) days after such date. If any notice of termination is given pursuant to this Section, this
Lease and the rights and obligations of the parties hereunder shall cease as of the date of such
notice and Basic Rent shall be adjusted as of the date of such termination.

          12.6 Condemnation Award. All compensation awarded for any taking of the Premises shall belong
to and be the property of Landlord, Tenant hereby assigning to Landlord all rights with respect
thereto; provided, however, nothing contained herein shall prevent Tenant from applying for
reimbursement from the condemning authority (if permitted by law) for moving expenses, or the
expense of removal of Tenant’s trade fixtures, or loss of Tenant’s business good will, but if and
only if such action shall not reduce the amount of the award or other compensation otherwise
recoverable from the condemning authority by Landlord or the owners in fee simple of the Building.

          XIII. LANDLORD’S RIGHTS TO CURE

          13.1 General Right. In the event of breach, default, or noncompliance hereunder by Landlord,
Tenant shall, before exercising any right or remedy available to it, give Landlord written notice
of the claimed breach, default, or noncompliance. For the thirty (30) days following the giving of
the notice required by the foregoing portion of this Section (or such longer period of time as may
be reasonably required to cure a matter which, due to its nature, cannot reasonably be rectified
within thirty (30) days), Landlord shall have the right to cure the breach, default, or
noncompliance involved.

          XIV. DEFAULT BY TENANT

          14.1. “Event of Default” Defined. Any one or more of the following events shall
constitute an “Event of Default:”

	 	(a)	 	The sale of Tenant’s interest in the Premises under attachment, execution or
similar legal process; or if Tenant is adjudicated as bankrupt or insolvent under any
state bankruptcy or insolvency law or an order for relief is entered against Tenant
under the federal Bankruptcy Code and such adjudication or order is not vacated within
thirty (30) days.
	 
	 	(b)	 	The commencement of a case under any chapter of the federal Bankruptcy Code
by or against Tenant or any guarantor of Tenant’s obligations hereunder, or the filing
of a voluntary or involuntary petition proposing the adjudication of Tenant

13

 

	 	 	 	or any guarantor as bankrupt or insolvent, or the reorganization of Tenant or any
guarantor with its creditors, unless the petition is filed or case commenced by a
party other than Tenant or any such guarantor and is withdrawn or dismissed
within sixty (60) days after the date of its filing.

	 	(c)	 	The admission in writing by Tenant or any guarantor of Tenant’s obligations
hereunder of its inability to pay its debts when due;
	 
	 	(d)	 	The appointment of a receiver or trustee for the business or property of
Tenant or any guarantor of Tenant’s obligations hereunder, unless such appointment
shall be vacated within thirty (30) days of its entry.
	 
	 	(e)	 	The making by Tenant or any guarantor of Tenant’s obligations hereunder of an
assignment for the benefit of its creditors, or if in any other manner Tenant’s
interest in this Lease shall pass to another by operation of law.
	 
	 	(f)	 	The failure of Tenant to pay any Rent or other sum of money within thirty
(30) days after the same is due hereunder.
	 
	 	(g)	 	Default by Tenant in the performance or observance of any covenant or
agreement of this Lease (other than a default involving the payment of money), which
default has not occurred within thirty (30) days after the giving of notice thereof by
Landlord, unless such default is of such nature that it cannot be cured within such
Thirty (30) day period, in which case no Event of Default shall occur so long as
Tenant shall commence the curing of the default within such thirty (30) day period and
shall thereafter diligently prosecute the curing of same; provided, however, if Tenant
shall default in the performance of any such covenant or agreement of this Lease two
(2) or more times in any twelve (12) month period, that notwithstanding such defaults
have each been cured by Tenant, any further similar default shall be deemed an Event
of Default without the ability for cure.
	 
	 	(h)	 	The vacating or abandonment of the Premises by Tenant at any time during
the Term of this Lease.
	 
	 	(i)	 	The occurrence of any other event described as constituting an “Event
of Default” elsewhere in this Lease.

          14.2. Remedies. Upon the occurrence and continuance of an Event of Default, Landlord, without
notice to Tenant in any instance (except where expressly provided for below) may do any one or
more of the following:

14

 

	 	(a)	 	With or without judicial process and sufficient notice, enter the Premises and
take possession of any and all goods, inventory, equipment, fixtures and all other
personal property of Tenant situated in the Premises without liability for trespass
or conversion, and may sell thirty (30) days’ prior notice of any public or private
sale shall constitute reasonable notice. The proceeds of any such sale shall be
applied, first, to the payment of all costs and expenses of conducting the sale or
caring for or storing said property, including all attorneys’ fees; second, toward
the payment of any indebtedness, including (without limitation) indebtedness for
Rental, which may be or may become due from Tenant to Landlord; and third, to pay
the Tenant, on demand in writing, any surplus remaining after all indebtedness of
Tenant to Landlord has been fully paid.
	 
	 	(b)	 	Perform, on behalf and at the expense of Tenant, any obligation of Tenant
under this Lease which Tenant has failed to perform and of which Landlord shall have
given Tenant notice, the cost of which performance by Landlord, together with interest
thereon from the date of such expenditure, shall be deemed Additional Rental and shall
be payable by Tenant to Landlord upon demand.
	 
	 	(c)	 	Elect to terminate this Lease and the tenancy created hereby by giving notice
of such election to Tenant, and may reenter the Premises, without the necessity of
legal proceedings, and may remove Tenant and all other persons (if Tenant is still in
possession) and property from the Premises, and may store such property in a public
warehouse or elsewhere at the cost of and for the account of Tenant without resort to
legal process and without Landlord being deemed guilty of trespass or becoming liable
for any loss or damage occasioned thereby.
	 
	 	(d)	 	Exercise any other legal or equitable right or remedy which it may have.

          Notwithstanding the provisions of clause (b) above and regardless of whether an Event of
Default shall have occurred, Landlord may exercise the remedy described in clause (b) without any
notice to Tenant if Landlord, in its good faith judgment, believes it would be injured by failure
to take rapid action or if the unperformed obligation of Tenant constitutes an emergency. Any
costs and expenses incurred by Landlord (including, without limitation, attorneys’ fees) in
enforcing any of its rights or remedies under this Lease shall be deemed to be Additional Rental
and shall be repaid to Landlord by Tenant upon demand.

          14.3. Damages. If this Lease is terminated by Landlord pursuant to
Section 149. 14.2., Tenant nevertheless shall remain liable for any Rent and damages
which may be due or sustained by Landlord and all reasonable costs, fees and expenses including,
but not limited to, attorney’s fees, costs and expenses incurred by Landlord in pursuit of its
remedies hereunder, or in renting the Premises to others from time to time.

          If this Lease is terminated pursuant to Section 14.2, Landlord may relet the Premises or any
part thereof, alone or together with other premises, for such term or terms (which may be

15

 

greater or less than the period which otherwise would have constituted the balance of the Term)
and on such terms and conditions (which may include concessions or free rent and alterations of
the Premises) as Landlord, in its absolute discretion, may determine, but Landlord shall not be
liable for, nor shall Tenant’s obligations hereunder be diminished by reason of, any failure by
Landlord to relet the Premises or any failure by Landlord to collect any rent upon such
reletting.

          14.4. Assignment in Bankruptcy. In the event of an assignment by operation of law under the
federal Bankruptcy Code, or any state bankruptcy or insolvency law and Landlord elects not to
terminate this lease under Section 14.2., the assignee shall provide Landlord with adequate
assurance of future performance of all of the terms, conditions and covenants of the Lease, which
shall include, but which shall not be limited to, assumption of all the terms, covenants and
conditions of the Lease by the assignee and the making by the assignee of the following express
covenants to Landlord:

	 	(i)	 	That assignee has sufficient capital to pay the Rent and other charges due under the Lease for the remaining Term; and
	 
	 	(ii)	 	That assumption of the Lease by the assignee will not cause Landlord to be in
violation or breach of any provision in any other lease, financing agreement or
operating agreement relating to the Building.

          XV. PROVISIONS APPLICABLE AT TERMINATION OF LEASE

          15.1. Surrender of Premises. At the expiration of this Lease, Tenant shall surrender the
Leased Premises in the same condition as they were in upon delivery of possession thereto under
this Lease, normal wear and tear excepted, and shall deliver all keys to Landlord. Before
surrendering the Leased Premises, Tenant shall remove all of its personal property and trade
fixtures and such property or the removal thereof shall in no way damage the Leased Premises, and
Tenant shall be responsible for all costs, expenses and damages incurred in the removal thereof.

          If Tenant fails to remove its personal property and fixtures upon the expiration of this
Lease, the same shall be deemed abandoned and shall become the property of Landlord.

          15.2. Holding Over. Any holding over after the expiration of the term hereof or of any renewal
term shall be construed to be a tenancy from month to month at 120% of the rent herein specified
(pro rated on a monthly basis) and shall otherwise be governed by the terms, conditions and
covenants of this Lease.

          XVI. ATTORNEYS’ FEES

          If either the Landlord or the Tenant institutes any action against the other relating to this
Lease, the unsuccessful party in such action agrees to reimburse the successful party for the

16

 

reasonable expenses of such action, including reasonably attorney’s fees, incurred therein by the
successful party.

          XVII. ESTOPPEL CERTIFICATE

          17.1 Landlord’s Right to Estoppel Certificate. Tenant shall, within fifteen (15) days after
Landlord’s request, execute and deliver to Landlord a written declaration in recordable form
ratifying this Lease and certifying: (1) the Commencement Date and term hereof; (2) that this Lease
is in full force and effect and has not been assigned, modified, supplemented or amended (except by
such writing as shall be stated); (3) that all conditions under this Lease to be performed by
Landlord have been satisfied; (4) that there are no defenses or offsets against the enforcement of
this Lease by the Landlord, or stating those claimed by Tenant; (5) the amount of advance rent, if
any, (or none if such is the case) paid by Tenant; (6) the date to which rent has been paid; (7)
the amount of security deposited with Landlord; and (8) such other information as Landlord may
reasonably request. Landlord’s mortgage lenders and/or purchasers shall be entitled to rely upon
such declaration.

          17.2. Effect of Failure to Provide Estoppel Certificate. If Tenant fails to furnish any
Estoppel Certificate within fifteen (15) days after request therefor, it shall be
conclusively presumed that:

	 	(a)	 	this Lease is in full force and effect without modification
in accordance with the terms set forth in the request;
	 
	 	(b)	 	there are no unusual breaches or defaults on the part of the
Landlord; and (c) no more than one (1) month’s rent has been paid in advance.

          XVIII. COMMON AREAS

          18.1. Definition of Common Areas. “Common Areas” means all area, spaces, equipment and
special services provided for the joint or common use and benefit of the tenants or occupants of
the Building and Property or portions thereof, and their employees, agents, servants, patients,
customers and other invitees (collectively referred to herein as “Occupants”) including without
limitation, parking areas, access roads, driveways, retaining walls, landscaped area, service ways,
loading docks, pedestrian walks, courts, stairs, ramps, and sidewalks, common corridors, rooms and
restrooms, air-conditioning, fan, janitorial, electrical and telephone rooms or closets, and all
other areas within the Building which are not specified for exclusive use or occupancy by Landlord
or any Tenant (whether or not they are leased or occupied).

          18.2. License to Use Common Areas. The Common Areas shall be available for the common use of
all Occupants. All common areas shall be subject to the exclusive control and management of
Landlord. Landlord shall have the right to construct, maintain, and operate

17

 

lighting and other facilities on all improvements; to police the same; to change the area, level,
location, and arrangement of parking areas and other facilities; to restrict parking by tenants,
their officers, agents, and employees; to close all or any portion of said areas or facilities to
such extent as may be legally sufficient to prevent a dedication thereof or the accrual of any
right to any person or the public therein; and to close temporarily all or any portion of the
parking areas or facilities to discourage non-occupant parking. Landlord shall operate and maintain
the Common Areas in such manner as Landlord in its discretion shall determine, shall have full
right and authority to employ and discharge all personnel with respect thereto, and shall have the
right, through reasonable rules, regulations, and/or restrictive covenants promulgated by it from
time to time, to control use and operation of the Common Areas in order that the same may occur in
a proper and orderly fashion.

          18.3. Parking. Automobiles of Tenant and all Occupants (as defined above) associated with
Tenant shall be parked only within parking areas not otherwise reserved by Landlord and
specifically designated for use by any other tenant and/or the Occupants associated with said other
tenant or tenants. Landlord or its agents shall, without any liability to Tenant or its Occupants,
have the right to cause to be removed any automobile that may be wrongfully parked in a prohibited
or reserved parking area, and Tenant agrees to indemnify, defend and hold Landlord harmless from
and against any and all claims, losses, demands, damages and liabilities asserted or arising with
respect to or in connection with any such removal of an automobile. Tenant shall from time to time,
upon request of Landlord, supply Landlord with a list of license plate numbers of all automobiles
owned by Tenant or its day-to-day Occupants.

          XIX. SIGNS, AWNINGS, AND CANOPIES

          19.1 Upon Landlord’s approval of signage design and specifications, Landlord specifically authorizes Tenant to install signage fixtures to the building exterior, interior and the property
gate. Such signage will be produced in a workmanlike and professional manner and shall be installed
and maintained in accordance with local building regulations. Tenant shall not place or suffer to
be placed or maintained on any exterior door, wall, or window of the Leased Premises, or elsewhere
in the Building, any excess or additional sign, awning, marquee, decoration, lettering, attachment,
or canopy, or advertising matter or other thing of any kind, and will not place or maintain any
additional decoration, lettering, or advertising matter on the glass or any window or door of the
Leased Premises without first obtaining Landlord’s written approval.

          19.2 Tenant further agrees to maintain such sign, awning, canopy, decoration, lettering,
advertising matter, or other things as may be approved in good condition and repair at all times.
Landlord may at Tenant’s cost, and without liability to Tenant, enter the Leased Premises and
remove any item erected in violation of this Section. Landlord may establish rules and regulations
governing the size, type, and design of all signs, decorations, etc., and Tenant agrees to abide
thereby.

18

 

     19.3 Upon termination of this Lease, Tenant shall pay and be responsible for removal of the
sign and repair of any damage to the Premises.

     XX. MISCELLANEOUS PROVISIONS

     20.1. No Partnership. Landlord does not by this Lease, in any way or for any purpose, become a
partner or joint venturer of Tenant in the conduct of its business or otherwise.

     20.2. Force Majeure. Either party shall be excused for the period of any delay in the
performance of any obligations hereunder when prevented from so doing by cause or causes beyond
-their control, including labor disputes, civil commotion, war, governmental regulations or
controls, fire or other casualty, inability to obtain any material or service, or acts of God.

     20.3. No Waiver. Failure of either party to insist upon the strict performance of any
provision or to exercise any option hereunder shall not be deemed a waiver of such breach. No
provision of this Lease shall be deemed to have been waived unless such waiver be in writing signed
by both parties.

     20.4. Notices. Any notice, demand, request, or other instrument which may be or is required to
be given under this Lease shall be delivered in person or sent by United States certified or
registered mail, postage prepaid and shall be addressed (a) if to Landlord, at the place
specified for payment of rent, and (b) if to Tenant, either at the Demised premises or at any other
current address for Tenant which is known to Landlord. Either party may designate such other
address as shall be given by written notice.

	 	 	 
	LANDLORD

	 	 
	 
	 	 
		 	 

With a copy to:

19

 

Gerald Snow, Esquire 
Ray,
Quinney & Nebeker

Salt Lake City, UT

     20.5 Captions, Attachments, Defined Terms. The captions to the sections of this Lease are for
convenience of reference only and shall not be deemed relevant in resolving questions of
construction or interpretation under this Lease.

     20.6 Recording. Tenant shall not record this Lease or a memorandum thereof without the written
consent of Landlord.

     20.7 Partial Invalidity. If any provision of this Lease or the application thereof to any
person or circumstance shall to any extent be invalid, the remainder of this Lease or the
application of such provision shall not be affected thereby and each provision of this Lease shall
be valid and enforced to the fullest extent permitted by law.

     20.8 Subordination: Landlord shall have the right to subordinate this Lease to any ground
lease, deed of trust or mortgage encumbering the Property, any advances made on the security
thereof and any renewals, modifications, consolidations, replacements or extensions thereof,
whenever made or recorded. However, Tenant’s right to quiet possession of the Property during the
Lease Term shall not be disturbed so long as Tenant pays the rent and performs all of Tenant’s
obligations under this Lease and is not otherwise in default. If any ground Landlord, beneficiary
or mortgagee elects to have this Lease prior to the lien of its ground lease, deed of trust or
mortgage and gives written notice thereof to Tenant, this Lease shall be deemed prior to such
ground lease, deed of trust or mortgage whether this Lease is dated prior or subsequent to the date
of said ground lease, deed of trust or mortgage or the date of recording thereof.

     20.9 Attornment: If Landlord’s interest in the Property is transferred, Tenant shall not attorn
to the transferee of or successor to Landlord’s interest in the Property and recognize such
transferee or successor as Landlord under this Lease. Tenant waives the protection of any statute
or rule of law which gives or purports to give Tenant any right to terminate this Lease or
surrender possession of the Property upon the transfer of Landlord’s interest.

     20.10 Signing of Documents: Tenant shall sign and deliver any instrument or documents
necessary or appropriate to evidence any such attornment or subordination or agreement to do so.
Such subordination and attornment documents may contain such provisions as are customarily required
by any ground Landlord, beneficiary under a deed of trust or mortgagee. If Tenant fails to do so
within ten (10) days after written request, Tenant hereby makes, constitutes and irrevocably
appoints Landlord, or any transferee or successor of Landlord, the attorney-in-fact of Tenant to
execute and deliver any such instrument or document.

20

 

     20.11 Tenant’s Financial Condition: Within thirty (30) days after written request from
Landlord, Tenant shall deliver to Landlord such financial statements as are reasonably required by
Landlord to verify the net worth of Tenant, or any assignee, subtenant, or guarantor of Tenant.
Tenant represents and warrants to Landlord that each such financial statement is a true and
accurate statement as of the date of such statement. All financial statements shall be confidential
and shall be used only for the purposes set forth herein.

     20.12 Quiet Enjoyment. Tenant, upon payment of the rent and the performance of the terms of
this Lease, shall, at all times during the lease term and during any extension thereof, peacefully
and quietly enjoy the leased property without any disturbance from the Landlord or from any person
claiming by, through or under the Landlord, except as otherwise herein provided.

     20.13 Mechanic’s Lien. Should any mechanic’s or other lien be filed against the Leased Premises
or any part thereof by reason of Tenant’s acts or omissions or because of a claim against Tenant,
Tenant shall cause the same to be canceled and discharged of record by bond or otherwise within ten
(10) days after notice by Landlord. If Tenant does not so comply with this provision, the Landlord
may cause the lien to be removed and apply the cost thereof and any expenses associated with the
removal, including reasonable attorney’s fees, to be added as additional rent under this Lease.

     20.14 Attachments: The following, by reference hereto, are a part of this Lease:

Exhibit “A” — Floor Plan

Exhibit “B” — Rules and Regulations Tenant Improvements

Exhibit “C” — Corporate Resolution or Proof of Officer’s Authority to Execute Lease

     20.15 Entire Agreement: This Lease Agreement constitutes the entire agreement and
understanding between the parties hereto and supersedes all prior discussions, understandings and
agreements. Except as otherwise provided herein, this Lease may not be altered or amended except
by subsequent written agreement executed by all of the parties hereto.

     20.16 Choice of Law and Venue. It is agreed that this agreement shall be governed by,
construed, and enforced in accordance with the laws of the State of Utah. Any action to enforce
this Lease shall be filed in a court of competent jurisdiction within the boundaries of Salt Lake
County, Utah.

     20.17 Counterparts. This Agreement may be executed in one or more counterparts which
together shall constitute the agreement.

     20.18 Interest. Where this Lease provides for interest on any outstanding liability, that
interest shall be in the amount of eighteen percent (18%) per annum.

21

 

     20.19 Execution of Certificate of Corporate Resolution or Other Proof of Officer’s Authority to
Execute Lease. Within thirty (30) days of initial occupancy, Tenant shall provide a duly executed
Certificate of Corporate Resolution or other proof of Officer’s authority to execute lease, in the
form attached hereto as Exhibit “C” as a condition to occupying the premises.

     XXI. EARLY TERMINATION OF LEASE

     21.1 After the first year of the lease term, Landlord may terminate this Lease upon ninety
(90) days written notice to Tenant. If Landlord terminates the Lease pursuant to this paragraph,
Landlord shall reimburse Tenant for the first Twenty-Five Thousand Dollars ($25,000) of reasonable
moving expenses incurred by Tenant in the course of vacating the Premises and shall return to the
Tenant any paid but unused portion of all rents due, deposits and/or other monies held in escrow by
the Landlord.

     XXII. RIGHT OF FIRST REFUSAL

     22.1 During the term of the Lease, Tenant shall have the right of first opportunity to lease
the uppermost floor of the Building. Upon either request from the Tenant or upon receipt from a
third party of an offer to lease the uppermost floor or any portion thereof, Landlord shall present
said offer to Tenant. Tenant shall then have five(5) business days in which to enter into a Lease
with Landlord upon terms Agreeable to both parties. Upon the expiration of five (5) business days
time, if Tenant has not entered into a Lease with Landlord, Landlord may lease the uppermost floor
or portion thereof

	 	 	 	 	 	 	 	 	 	 	 
	LANDLORD:	 	 	 	TENANT:	 	 
		 	 	 		 	 

22

 

Addendum to Lease Agreement for 1011 Murray-Holladay Road

WHEREAS,
1011 LLC (the “Landlord”) and SafeScan Medical Systems, LLC (the “Tenant”) have entered
into a lease agreement for the first floor of the building located at 1011 East Murray-Holladay
Road, Salt Lake City, Utah, and

WHEREAS, the lease agreement specifies that certain activities, building modifications,
installation and use of equipment or signage by Tenant requires the approval of the Landlord, and

WHEREAS, Landlord and Tenant agree that any approvals given for these certain activities, building
modifications, installation and use of equipment or signage shall be valid only for the Tenant and
shall not be valid for any sub-lessee,

THEREFORE, Tenant submits the following items for approval and Landlord gives approval.

Section 6.1 Use of Leased Premises:

Tenant is authorized to perform assembly, operation, storage, testing and all other aspects
of designing, building, packaging, shipping, and operating medical equipment. Such
authorization includes but is not limited to the assembly and testing of electronic
components, manufacture of mechanical components as well as the operation of such equipment
including patient testing.

Section 7.2 (a) Additional Limitations — Power

Tenant is authorized to utilize 220 volt single phase power for the testing, operation
and demonstration of medical equipment.

Section 8.3 Alterations

Tenant is authorized to modify the area defined as “Employee Meeting Room” on the floor
layout to add a room of the approximate size of 12 feet by 18 feet, including the addition
of a water supply, two doors and 220 volt single phase power.

Section 19.1 Signs

Tenant is authorized to mount a Company Logo sign no bigger than 36" high and 72" wide on
the upper exterior of the building. Tenant is also authorized to place a sign at the
driveway entrance no bigger than 30" high by 60" wide and a total height from the ground not
to exceed 72".

TENANT USE
OF SMALLER STORAGE  BUILDING SHALL BE AT NO CHARGE FOR ONE YEAR.

Approvals:

	 	 	 	 	 	 	 	 	 
		 	 	 	

 

 

Second Addendum to Lease Agreement for 1011 Murray-Holladay Road

WHEREAS,
1011 LLC (the “Landlord”) and SafeScan Medical Systems, LLC (the “Tenant”) have entered
into a lease agreement dated September 1, 2003 for the first floor of the building located at 1011
East Murray-Holladay Road, Salt Lake City, Utah, and

WHEREAS, SafeScan Medical Systems, LLC has been merged into TechniScan, Inc., and SafeScan Medical
Systems, LLC has been dissolved, and

WHEREAS, Landlord and Tenant wish to extend the term of the lease and make modifications
to certain terms of the lease,

THEREFORE, Landlord and Tenant agree to the following modifications to the lease.

Replace the first paragraph of the lease with the following:

THIS LEASE AGREEMENT (the “Lease”) is made and entered into as of this 1st day
of September, 2003, by and between 1011 L.L.C., a Utah Limited Liability Company (the
“Landlord”), and TechniScan, Inc., a Utah corporation (the “Tenant”).

Add sub-paragraph (e) to Section 1.1 Description of Premises.

     (e) The exclusive right to use the northern storage building for storage of materials,
documents and equipment provided that it not used for any manufacturing, engineering or
administrative activities.

Replace Section 2.1 with the following:

2.1. Length of Term. The term of this Lease shall be for a period of four (4) years,
commencing on September 1st, 2003 and terminating at 11:59 P.M. on September 8, 2007. Except for the return of money deposited with Landlord by Tenant, Landlord shall not
have any liability to Tenant arising our of Landlord’s failure to deliver the Premises to
Tenant on the Commencement Date.

Replace Section 3.1 with the following:

     3.1. Basic Annual Rent. Tenant agrees to pay to Landlord as basic annual rent (the “Basic
Rent”) the amounts shown in the schedule below:

Year 1      See Schedule Below

Year 2      See Schedule Below

Year 3      See Schedule Below

Year 4      See Schedule Below

 

 

Replace Section 3.3 with the following:

3.3 Payment of Annual Basic Rent. Annual Basic Rent shall be payable
without prior demand in monthly installments detail below in advance on the
1st day of each calendar month during the term.

	 	 	 	 	 
	MONTHS	 	MONTHLY INSTALLMENT
	 
	1

	 	$	12,500.00	 
	2

	 	$	0.00	 
	3

	 	$	10,000.00	 
	4

	 	$	10,000.00	 
	5

	 	$	10,000.00	 
	6-12

	 	$	17,250.00	 
	13-24

	 	$	17,867.50	 
	25-36

	 	$	18,400.53	 
	37-47

	 	$	18,949.54	 
	48

	 	$	1,060.90	 

Delete Section 7.3 (a) Assumption of ADT Security Contract

Delete
XXI. EARLY TERMINATION OF LEASE and Section 21.1

Approvals:

	 	 	 
		 	

 

 

Bill of Sale

For and in
consideration of the sum of one dollar ($1.00) 1011 LLC does hereby sell and
transfer ownership to SafeScan Medical Systems, LLC the following items that are located in the
building at 1011 East Murray-Holladay Road, Salt Lake City, Utah.

List of items:

	 	1.	 	Axxess Telephone System, including switching system, handsets, operating system
software, voice mail software, manuals and any other peripheral items.
	 
	 	2.	 	All Partitions and Modular Furniture within the building.
	 
	 	3.	 	All office desks, chairs, bookcases and tables located within the building excluding
any articles of home furniture and any items located in eastern half of 2nd floor.
	 
	 	4.	 	All office supplies, floor mats, trays, etc. located within the building.

Agreed:

	 	 	 	 	 	 	 	 	 
	SafeScan Medical Systems, LLC	 	 	 	1011 LLC
	 
		 	 	 	

 

 

LEASE EXTENSION

THIS LEASE EXTENSION AGREEMENT (hereinafter referred to as the “Lease Extension”) is
made and entered into this 18 day of July, 2007, by
and between 1011 LLC (hereinafter referred to as “Landlord”) and TechniScan Medical Systems Inc.
(hereinafter referred to as Tenant,” whether one or more, and each agreeing to be bound by and
held Jointly and severally liable under the terms and conditions of this Lease Extension).

In consideration of the covenants and obligations contained herein and of other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as
follows:

1.
PRIOR LEASE: The parties executed a Lease Agreement dated September 5, 2003 (hereinafter “Lease
Agreement”) and amended December 15, 2004, with a term of lease commencing on the 1st day of
September, 2003, and which expires on the 8th day of September, 2007. All terms, conditions, and
provisions of said Lease Agreement are hereby incorporated by
reference or by attachment.

2.
EXTENSION OF PRIOR LEASE TERM: The parties hereby agree to extend and continue the
aforementioned Lease Agreement for an additional term, commencing on the 9th day of September,
2007, and expiring on the 8th day of April, 2008.

3. REVISED RENT PAYMENTS: The revised rent payments shall commence beginning on the
1st day of September, 2007 and be payable per the payment schedule detailed in Section 3.3 of the
amended and attached Payment of Annual Basic Rent schedule.

4.
Month to Month Extension: At the end of the lease extension, April 8th, 2008, the
Tenant and Landlord agree to a month to month extension of the lease at the rate of $10,000 a
month. Both parties agree to provide each other 45 days notice to terminate the month to month
agreement.

5. SPACE ALLOCATION: When this lease extension is in place, and in consideration for the reduced
rent payments, the Tenant with 45 days notice, will vacate all or any part of the northern portion
of the building. This area is identified as the Break Room, Lab Space (2 1/2 squares
unmarked), Loading Dock, Employee Meeting Room and the Front Conference Room.

6. SUBLEASE: The Tenant may sublease portions of the building labeled administration to Subleassees
providing they adhere to the conditions of the Lease Agreement.

	 	 	 	 	 	 	 
		 	 
		 	 

 

 

LEASE EXTENSION

THIS LEASE EXTENSION AGREEMENT (hereinafter referred to as the “Lease Extension”) is
made and entered into this 18 day of July, 2007, by
and between 1011 L.L.C (hereinafter referred to as “Landlord”) and TechniScan Medical Systems Inc.
(hereinafter referred to as “Tenant,” whether one or more, and each agreeing to be bound by and
held jointly and severally liable under the terms and conditions of this Lease Extension).

In consideration of the covenants and obligations contained herein and of other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as
follows:

1.
PRIOR LEASE: The parties executed a Lease Agreement dated
September 5, 2003 (hereinafter “Lease
Agreement”) and amended December 15, 2004, with a term of lease commencing on the 1st day of
September, 2003, and which expires on the 8th day of September, 2007. All terms, conditions, and
provisions of said Lease Agreement are hereby incorporated by
reference or by attachment.

2.
EXTENSION OF PRIOR LEASE TERM: The parties hereby agree to extend and continue the
aforementioned Lease Agreement for an additional term, commencing on the 9th day of September,
2007, and expiring on the 8th day of April, 2008.

3.
REVISED RENT PAYMENTS: The revised rent payments shall commence
beginning on the 1st
day of September, 2007 and be payable per the payment schedule detailed in Section 3.3 of the
amended and attached Payment of Annual Basic Rent schedule.

4.
Month to Month Extension: At the end of the lease extension, April 8th, 2008, the
Tenant and Landlord agree to a month to month extension of the lease at the rate of $10,000 a
month. Both parties agree to provide each other 45 days notice to terminate the month to month
agreement.

5.
SPACE ALLOCATION: When this lease extension is in place, and in consideration for the reduced
rent payments, the Tenant with 45 days notice, will vacate all or any part of the northern portion
of the building. This area is identified as the Break Room, Lab Space
(2 1/2 squares
unmarked), Loading Dock, Employee Meeting Room and the Front Conference Room.

6.
SUBLEASE: The Tenant may sublease portions of the building labeled administration to Subleassees
providing they adhere to the conditions of the Lease Agreement.

	 	 	 	 	 	 	 
		 	 	 		 	 

 

 

Replace Section 3.3 with the following:

3.3 Payment of Annual Basic Rent. Annual Basic Rent shall be payable without prior
demand in monthly installments detail below in advance on the 1st day of
each calendar month during the term.

	 	 	 	 	 
	MONTHS	 	MONTHLY INSTALLMENT
	 
	1

	 	$	12,500.00	 
	2

	 	$	0.00	 
	3

	 	$	10,000.00	 
	4

	 	$	10,000.00	 
	5

	 	$	10,000.00	 
	6-12

	 	$	17,250.00	 
	13-24

	 	$	17,867.50	 
	25-36

	 	$	18,400.53	 
	37-47

	 	$	18,949.54	 
	48-55

	 	$	10,000.00	 

APPROVALS:exv10w3

Exhibit
10.3

TECHNISCAN, INC.

EMPLOYEE STOCK OPTION PLAN

Effective June 12, 2001

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	Article	 	 	 	 	 	 
	Number	 	Description	 	 
	ARTICLE I	 	 
	NAME, PURPOSES, AND EFFECTIVE DATE	 	1
	 	 	1.1	 	Name of Plan	 	1
	 	 	1.2	 	Purposes	 	1
	 	 	1.3	 	Effective Date	 	1
	 
	 	 	 	 	 	 	 	 
	ARTICLE II	 	 
	DEFINITIONS	 	1
	 	 	2.1	 	“Affiliate”	 	1
	 	 	2.2	 	“Award”	 	2
	 	 	2.3	 	“Award Agreement”	 	2
	 	 	2.4	 	“Board”	 	2
	 	 	2.5	 	“Cause”	 	2
	 	 	2.6	 	“Code”	 	2
	 	 	2.7	 	“Committee”	 	2
	 	 	2.8	 	“Company”	 	2
	 	 	2.9	 	“Consultant”	 	2
	 	 	2.10	 	“Director”	 	2
	 	 	2.11	 	“Disability”	 	2
	 	 	2.12	 	“Early Retirement”	 	2
	 	 	2.13	 	“Employee”	 	2
	 	 	2.14	 	“Fair Market Value”	 	3
	 	 	2.15	 	“Incentive Stock Option”	 	3
	 	 	2.16	 	“Nonqualifled Stock Option”	 	3
	 	 	2.17	 	“Normal Retirement”	 	3
	 	 	2.18	 	“Optionee”	 	3
	 	 	2.19	 	“Participant”	 	3
	 	 	2.20	 	“Performance Award”	 	3
	 	 	2.21	 	“Plan”	 	3
	 	 	2.22	 	“Restricted Stock Award”	 	3
	 	 	2.23	 	“Retirement”	 	3
	 	 	2.24	 	“Stock” or “Share”	 	3
	 	 	2.25	 	“Stock Appreciation Right”	 	3
	 	 	2.26	 	“Stock Option” or “Option”	 	3
	 
	 	 	 	 	 	 	 	 
	ARTICLE III	 	 
	ELIGIBILITY FOR AWARDS	 	4
	 
	 	 	 	 	 	 	 	 
	ARTICLE IV	 	 
	CAPITAL STOCK	 	4
	 	 	4.1	 	The Shares	 	4

- i -

 

	 	 	 	 	 	 	 	 	 
	Article	 	 	 	 	 	 
	Number	 	Description	 	 
	 	 	4.2	 	Stock Subject to the Plan	 	4
	 
	 	 	 	 	 	 	 	 
	ARTICLE V	 	 
	STOCK OPTIONS	 	4
	 	 	5.1	 	Grant of Options	 	4
	 	 	5.2	 	Types of Options	 	5
	 	 	5.3	 	Conformity with Code Section 422	 	5
	 	 	5.4	 	Waiver of Other Amounts	 	5
	 	 	5.5	 	Terms and Conditions	 	5
	 
	 	 	 	a.	 	Option Price	 	5
	 
	 	 	 	b.	 	10% Stockholder	 	5
	 
	 	 	 	c.	 	Option Term	 	5
	 
	 	 	 	d.	 	Exercisability	 	5
	 
	 	 	 	e.	 	Method of Exercise	 	6
	 
	 	 	 	f.	 	Rights of Holders	 	6
	 
	 	 	 	g.	 	Consideration	 	6
	 
	 	 	 	h.	 	Cash-Out	 	7
	 
	 	 	 	i.	 	Replacement Options	 	7
	 
	 	 	 	j.	 	Vesting	 	7
	 
	 	 	 	k.	 	Disability of Optionee	 	7
	 
	 	 	 	1.	 	Death of Optionee	 	7
	 
	 	 	 	m.	 	Retirement	 	8
	 
	 	 	 	n.	 	Other Termination of Employment or Relationship as a Director or Consultant	 	8
	 
	 	 	 	o.	 	Securities Law Compliance	 	8
	 
	 	 	 	p.	 	Dollar Limitation on Incentive Stock Options	 	9
	 
	 	 	 	q.	 	Continuous Status as an Employee, Director or Consultant	 	9
	 
	 	 	 	 	 	 	 	 
	ARTICLE VI	 	 
	STOCK APPRECIATION RIGHTS	 	9
	 	 	6.1	 	Grant and Exercise	 	9
	 	 	6.2	 	Termination	 	9
	 	 	6.3	 	Surrender of Stock Option	 	9
	 	 	6.4	 	Terms and Conditions	 	10
	 
	 	 	 	a.	 	When Exercisable	 	10
	 
	 	 	 	b.	 	Effect of Exercise	 	10
	 
	 	 	 	c.	 	Relation to Stock Option	 	10
	 
	 	 	 	d.	 	Effect on Share Limitation	 	10
	 
	 	 	 	e.	 	Exercise Upon Adjustment	 	10
	 
	 	 	 	 	 	 	 	 
	ARTICLE VII	 	 
	RESTRICTED STOCK AWARDS	 	10
	 	 	7.1	 	Administration	 	10
	 	 	7.2	 	Criteria for Award	 	11
	 	 	7.3	 	Varying Provisions	 	11

- ii -

 

	 	 	 	 	 	 	 	 	 
	Article	 	 	 	 	 	 
	Number	 	Description	 	 
	 	 	7.4	 	Awards and Certificates	 	11
	 
	 	 	 	a.	 	Purchase Price	 	11
	 
	 	 	 	b.	 	Acceptance of Award	 	11
	 
	 	 	 	c.	 	Stock Certificate	 	11
	 
	 	 	 	d.	 	Custody of Certificates	 	11
	 	 	7.5	 	Restrictions and Conditions	 	11
	 
	 	 	 	a.	 	Restriction Period	 	11
	 
	 	 	 	b.	 	Shareholder Rights	 	11
	 
	 	 	 	c.	 	Forfeiture of Shares	 	12
	 
	 	 	 	d.	 	Waiver of Restrictions	 	12
	 
	 	 	 	e.	 	Delivery of Shares	 	12
	 
	 	 	 	 	 	 	 	 
	ARTICLE VIII	 	 
	PERFORMANCE AWARDS	 	12
	 	 	8.1	 	Grant of Right to Earn Award	 	12
	 	 	8.2	 	Participant Consideration	 	12
	 	 	8.3	 	Award Agreement	 	12
	 	 	8.4	 	Shares Granted as Performance Award	 	12
	 
	 	 	 	 	 	 	 	 
	ARTICLE IX	 	 
	ADJUSTMENTS	 	13
	 	 	9.1	 	Recapitalizations, Etc	 	13
	 	 	9.2	 	Acceleration of Exercise	 	13
	 	 	9.3	 	Right to Call Options	 	13
	 	 	9.4	 	Committee Decision Final	 	13
	 	 	9.5	 	Compliance with Code Section 280G	 	13
	 
	 	 	 	 	 	 	 	 
	ARTICLE X	 	 
	ADMINISTRATION	 	14
	 	 	10.1	 	The Board	 	14
	 	 	10.2	 	The Committee	 	14
	 	 	10.3	 	Construction and Interpretation of the Plan	 	14
	 	 	10.4	 	Delegation of Operational Responsibilities	 	14
	 	 	10.5	 	Indemnification of Committee	 	15
	 
	 	 	 	 	 	 	 	 
	ARTICLE XI	 	 
	AMENDMENT, SUSPENSION OR TERMINATION OF THE PLAN	 	15
	 	 	11.1	 	Plan Amendment	 	15
	 	 	11.2	 	Amendment of Awards	 	15
	 	 	11.3	 	Suspension or Termination	 	16
	 
	 	 	 	 	 	 	 	 
	ARTICLE XII	 	 
	REVIEW PROCEDURE UPON DENIAL OF A CLAIM	 	16
	 	 	12.1	 	Notice of Denial of Claim	 	16
	 	 	12.2	 	Review Procedure	 	16

- iii -

 

	 	 	 	 	 	 	 	 	 
	Article	 	 	 	 	 	 
	Number	 	Description	 	 
	ARTICLE XIII	 	 
	GENERAL PROVISIONS	 	16
	 	 	13.1	 	Securities Restrictions	 	16
	 	 	13.2	 	Restrictions on Transferability	 	17
	 	 	13.3	 	Other Arrangements	 	17
	 	 	13.4	 	No Vested Rights	 	17
	 	 	13.5	 	Federal Tax Obligations	 	17
	 	 	13.6	 	Right of First Refusal and Redemption	 	17
	 	 	13.7	 	Written Award Agreement	 	17
	 	 	13.8	 	Unfunded Status of Plan	 	18
	 	 	13.9	 	Designation of Beneficiary	 	18
	 	 	13.10	 	Severability	 	18
	 	 	13.11	 	Construction	 	18
	 	 	13.12	 	Headings	 	18
	 	 	13.13	 	Notices	 	18
	 	 	13.14	 	Governing Law	 	19
	 
	 	 	 	 	 	 	 	 
	SIGNATURE PAGE	 	19

- iv -

 

TECHNISCAN, INC.

EMPLOYEE STOCK OPTION PLAN

Effective June 12, 2001

ARTICLE I

NAME, PURPOSES, AND EFFECTIVE DATE

     1.1 Name of Plan. The Plan created in accordance with the terms hereof shall be known
as the TechniScan, Inc., Employee Stock Option Plan (hereinafter referred to as the “Plan”).

     1.2 Purposes.

          a. The purpose of the Plan is to provide a means by which selected managerial, technical and
salaried Employees and Directors of and Consultants to, the Company, and its Affiliates, may be
given an opportunity to purchase stock of the Company through Stock Options.

          b. The Company, by means of the Plan, seeks to secure and retain the services of persons who
are now or who may be in the future key Employees or Directors of or Consultants to the Company or
its Affiliates and to provide incentives for such persons to exert maximum efforts for the success
of the Company and its Affiliates.

          c. It is intended that eligibility under this Plan for Incentive Stock Options be restricted
to the salaried employees of the Company. All provisions of this Plan shall be construed to
effectuate such purposes.

     1.3 Effective Date. The Plan shall he effective as of the date of its adoption by the
Board of Directors, subject to approval by the stockholders of the Company within twelve (12)
months after the date the Plan is adopted by the Board.

ARTICLE II

DEFINITIONS

     The following terms and phrases shall have the following meanings when used herein, unless a
different meaning is clearly required by the context:

     2.1 “Affiliate” means any parent corporation or subsidiary corporation of the Company,
whether now or hereafter existing, as those terms are defined in Sections 424(e) and

 

 

(f) respectively, of the Code, including without limitation TechniScan Medical, Inc., a Delaware
corporation.

     2.2 “Award” means a Stock Option, Stock Appreciation Right, Restricted Stock or any
other Award or benefit granted under this plan.

     2.3 “Award Agreement” means the written document(s) executed by the Company and a
Participant which sets forth the terms and conditions of a grant by the Company to such Participant
of an Award.

     2.4 “Board” means the Board of Directors of the Company.

     2.5 “Cause” means any act or failure to act by a Participant, involving a
Participant’s (i) willful misconduct, dishonesty or malfeasance; (88) conviction of a felony; (iii)
gross negligence; or (iv) aid to a competitor, which is directly and materially harmful to the
business or reputation of the Company.

     2.6 “Code” means the Internal Revenue Code of 1986 including its separate and various
provisions, as the Code or those provisions may be amended from time to time, and any successor
thereto.

     2.7 “Committee” means an administrative committee duly elected or appointed by the
Board pursuant to Article X hereof, having control over and responsibility to administer the Plan.
If at any time no Committee shall be duly elected and serving for whatever reason, then the
functions of the Committee specified in the Plan shall be exercised by the Board.

     2.8 “Company” means TechniScan, Inc., a corporation organized under the laws of the
State of Utah, or any successor organization.

     2.9 “Consultant” means an independent contractor hired by the Company to provide
expert advisory, technical or consulting services to the Company.

     2.10 “Director” means a member of the Board.

     2.11 “Disability” shall have the same meaning as under the Company’s retirement plan,
as amended from time to time, and if none, as the Committee may otherwise provide from time to
time.

     2.12 “Early Retirement” means retirement with consent of the Committee from active
employment with the Company or an Affiliate prior to normal retirement age under provisions of the
Company’s retirement plan, if such a plan is in effect at the time, or retirement prior to age 65,
if no retirement plan is then in place.

     2.13 “Employee” means a person who is on the payroll records of the Employer as a
common law employee, as determined solely by the Employer. For purposes of this Plan, “Employer”
means the Company or any of its Affiliates.

- 2 -

 

     2.14 “Fair Market Value” means the fair market value of a Share for all relevant
purposes under the Plan, which shall be determined by the Committee acting in good faith.

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

     2.16 “Nonqualified Stock Option” means any Stock Option that is not an Incentive Stock
Option.

     2.17 “Normal Retirement” means retirement from active employment with the Company or
an Affiliate pursuant to the normal retirement provisions of the Company’s retirement plan, if such
a plan is in effect at the time, or retirement at or after age 65, if no retirement plan is then in
place.

     2.18 “Optionee” means an Employee, Director or Consultant who holds an outstanding
Stock Option, except that only an Employee can be an Optionee with respect to an Incentive Stock
Option.

     2.19 “Participant” means an Employee, Director or Consultant to whom the Committee, in
its discretion, grants an Award pursuant to the Plan.

     2.20 “Performance Award” means an Award made pursuant to Article VIII below that is
payable in cash and/or Stock (including Restricted Stock) in accordance with the terms of the
grant, based on Company, business unit and/or individual performance over a specified period of
time.

     2.21 “Plan” means the TechniScan, Inc., Employee Stock Option Plan set forth in this
document.

     2.22 “Restricted Stock Award” means an Award of Shares of Stock that is subject to the
provisions of Article VII below. “Restricted Stock” is stock restricted from sale, pledge,
assignment or other transfer pursuant to applicable securities laws and/or restrictions placed on
the stock by the Committee.

     2.23 “Retirement” means either Normal or Early Retirement

     2.24 “Stock” or “Share” means the voting and nonvoting common stock of the
Company.

     2.25 “Stock Appreciation Right” means the right, pursuant to an Award granted under
Article VI below, to surrender to the Company all (or a portion) of a Stock Option in exchange for
an amount equal to the difference between (i) the Fair Market Value, as of the date such Stock
Option (or such portion thereof) is surrendered, of the Shares of Stock covered by such Stock
Option (or such portion thereof), and (ii) the aggregate exercise price of such Stock Option (or
such portion thereof).

     2.26 “Stock Option” or “Option” means any option to purchase shares of Stock
granted pursuant to Article V.

- 3 -

 

ARTICLE III

ELIGIBILITY FOR AWARDS

     Awards shall be granted to such Participants as the Committee shall select from time to time.
A Participant may hold more than one Award, but only on the terms and subject to the restrictions
hereinafter set forth. Different Participants may be granted Awards with different terms, in
connection with different amounts of Shares.

     Notwithstanding any other provision contained herein, Incentive Stock Options may be granted
only to Employees. All other Awards hereunder may be granted to Employees, Directors or
Consultants.

ARTICLE IV

CAPITAL STOCK

     4.1 The Shares. Shares of Stock issued to Participants pursuant to Awards hereunder
may constitute an original issue of authorized Stock or may consist of previously issued Stock
reacquired by the Company, as shall be determined by the Board.

     4.2 Stock Subject to the Plan.

          a. The maximum number of Shares of Stock authorized for issuance under the Plan with respect
to the grant of Awards while the Plan is in effect, subject to adjustment in accordance with
Section 9.1 below, shall be 500,000 Shares, or such other number of Shares as may be subsequently
approved by the Board, and if required pursuant to Section 422 of the Code, by the Shareholders.

          b. Any unused portion of the Shares available for Award in any award year shall be carried
forward and shall be made available for Awards in succeeding calendar years. The Shares related to
the unexercised or undistributed portion of any terminated, expired or forfeited Award with respect
to which no material benefit was received by a Participant (e.g. dividends) also shall be made
available for distribution in connection with future Awards under the Plan.

ARTICLE V

STOCK OPTIONS

     5.1 Grant of Options. Stock Options may be granted alone, in addition to or in tandem
with other Awards granted under the Plan. Any Stock Option granted under the Plan shall be in such
form as the Committee may from time to time approve.

- 4 -

 

     5.2 Types of Options. The Committee shall have the authority to grant Incentive Stock
Options, Nonqualified Stock Options, or both types of Stock Options (in each case with or without
Stock Appreciation Rights), with respect to the voting and/or nonvoting common stock of the
Company. To the extent that any Stock Option does not qualify as an Incentive Stock Option, it
shall constitute a separate Nonqualified Stock Option.

     5.3 Conformity with Code Section 422. Anything in the Plan to the contrary
notwithstanding, no term of this Plan relating to Incentive Stock Options shall be interpreted,
amended or altered, nor shall any discretion or authority granted under the Plan be so exercised,
so as to disqualify the Plan under Section 422 of the Code, or, without the consent of the
Participant(s) affected, to disqualify any Incentive Stock Option under such Section 422.

     5.4 Waiver of Other Amounts. In the discretion of the Committee, Nonqualified Stock
Options or Shares of Stock may be issued to an Employee in consideration of the waiver of a portion
of such Employee’s salary, compensation or fees, with the spread between the exercise price of such
Stock Options and the then Fair Market Value of the Stock being equal to the salary, compensation
or fees waived, or on such other terms and provisions as the Committee may in its discretion
provide.

     5.5 Terms and Conditions. Stock Options granted under the Plan shall be subject to
the following terms and conditions and shall contain such additional terms and conditions, not
inconsistent with the terms of the Plan, as the Committee shall deem appropriate, and with respect
to Incentive Stock Options, in conformity with Section 422 of the Code.

          a. Option Price. The option price per Share of Stock purchasable under a Stock Option
shall be determined by the Committee at the time of grant but shall not be less than 100% of the
Fair Market Value of the Stock at the time of grant for Incentive Stock Options and such percentage
of the Fair Market Value of the Stock at the time of grant or such dollar price for Nonqualified
Options as the Committee in its discretion may determine.

          b. 10% Stockholder. Any Incentive Stock Option granted to any Optionee who, at the
time the Option is granted, owns more than 10% of the voting power of all classes of stock of the
Company or of an Affiliate shall have an exercise price no less than 110% of Fair Market Value per
Share on date of the grant.

          c. Option Term. The term of each Stock Option shall be fixed by the Committee, but
no Stock Option shall be exercisable more than ten (10) years after the date the Option is granted.
However, any Incentive Stock Option granted to any Optionee who, at the time the Option is granted
owns more than 10% of the voting power of all classes of Stock of the Company or of an Affiliate
may not have a term of more than five (5) years. No Option may be exercised by any person after
expiration of the term or exercise period of the Option.

          d. Exercisability. Stock Options shall be exercisable at such time or times and
subject to such terms and conditions as are contained herein or in an Award Agreement, If the
Committee provides, in its discretion, that any Stock Option is exercisable only in installments,
the Committee may waive such installment exercise provisions at any time at or after grant in whole
or in part, based on such factors as the Committee shall determine, in its sole discretion.

- 5 -

 

          e. Method of Exercise. Stock Options may be exercised in whole or in part by giving
written notice of exercise to the Company, in such form as the Committee shall determine,
specifying the number of Shares of Stock to be purchased. Such notice shall be accompanied by
payment in full of the purchase price as specified below.

          f. Rights of Holder. No Shares shall be issued until full payment has been made
therefore. An Optionee shall generally have the right to dividends and other rights of a
Shareholder with respect to Shares subject to the Option when the Optionee has given written notice of exercise, has paid in full for
such Shares, and, if requested, has given appropriate securities law representations as required by
this Plan or an Award Agreement.

          g. Consideration. The purchase price of Stock acquired pursuant to an Option shall
be paid, to the extent permitted by applicable statutes and regulations, either (i) in cash at the
time the Option is exercised, or (ii) in the discretion of the Committee, and subject to Section
422 of the Code, the subparagraphs below and other provisions of this Plan, (A) by delivery to the
Company of other Stock of the Company. (B) according to a loan or other deferred payment or other
arrangement (which may include, without limiting the generality of the foregoing, the use of other
Stock of the Company) with the person to whom the Option is granted, or (C) in any other form of
legal consideration that may be acceptable in the sole discretion of the Committee.

               (1) The Committee may arrange for and offer loans to a Participant under the Plan to pay for
the exercise of any Stock Option or other Award if applicable, provided that no Participant shall
have a right or entitlement to such a loan, and loans may be determined on a basis of individual
selection in the sole and absolute discretion of the Committee governed at all times by any
applicable provision of law. Any such loan shall contain such terms and provisions and require the
execution of such documents as the Committee in its discretion may determine.

               (2) In the case of any loan or other deferred payment arrangement, interest shall be payable
at least annually and shall be charged at the minimum rate of interest necessary to avoid the
imputation of interest under any applicable provisions of the Code.

               (3) If payment of the exercise price of a Stock Option is made in whole or in part in the
form of Stock, such Stock (and any replacement Shares relating thereto) shall remain (or be)
restricted in accordance with the original terms of the Award in question, and any additional Stock
received upon such exercise shall be subject to the same forfeiture restrictions, unless otherwise
determined by the Committee, in its sole discretion, at or after grant.

               (4) If payment of the exercise price of a Stock Option is made in whole or in part in the
form of unrestricted Stock already owned by the Optionee, the Company may require that such Stock
shall have been owned by the Optionee for a certain minimum period of time so that such payment
will not result in a charge to the Company’s earnings as a result of the exercise. Such provision
may be used in the discretion of the Company to prevent a pyramid exercise.

          h. Cash-Out. On receipt of written notice of exercise, the Committee may, in its
sole discretion, elect to cash out all or part of the portion of the Option(s) to be exercised by

- 6 -

 

paying the Optionee an amount, in cash or Stock, equal to the excess of the Fair Market Value of
the Stock over the Option price (the “Spread Value”) on the effective date of such cash-out.

          i. Replacement Options. If an Option granted pursuant to the Plan may be exercised
by an Optionee by means of a stock-for-stock swap method of exercise as provided in Section 5.5(g)
above, then the Committee may, subject to Section 422 of the Code, in its sole discretion, from
time to time and from Participant to Participant, authorize the Optionee to receive a replacement
Option upon exercise of an Option hereunder. This replacement Option shall cover a number of Shares
determined in an equitable manner by the Committee, but in no event more than the number of Shares
equal to the difference between the number of Shares of the original Option exercised and the net
Shares received by the Optionee from such exercise. The exercise price of the replacement Option
shall equal the then current Fair Market Value of the Shares, and the term of the replacement
Option shall extend to the expiration date of the original Option.

          j. Vesting. The total number of Shares of Stock subject to an Option may, but need
not, be allotted in periodic installments (which may, hut need not, be equal). The Award Agreement
may provide that from time to time during each of such installment periods, the Option may become
exercisable (“vest”) with respect to some or all of the Shares allotted to that period, and may be
exercised with respect to some or all of the Shares allotted to such period and/or any prior period
as to which the Option became vested but was not fully exercised. The Option may be subject to such
other terms and conditions as to the time or times when it may be exercised and as to the minimum number of Shares with respect to which the Option may be exercised (which
may be based on performance or other criteria) as the Committee may deem appropriate.

          k. Disability of Optionee. In the event an Optionee’s Continuous Status as an
Employee, Director or Consultant terminates as a result of the Optionee’s Disability, the Optionee
may exercise his or her Option (to the extent that the Optionee was entitled to exercise it at the
date of termination), but only within such period of time ending on the earlier of (i) the date
three (3) months following such termination (or such longer or shorter period specified in the
Award Agreement), or (ii) the expiration of the term of the Option as set forth in the Award
Agreement. If, at the date of termination, the Optionee is not entitled to exercise his or her
entire Option, the Shares covered by the unexercisable portion of the Option shall revert to and
again become available for issuance under the Plan. If, after termination, the Optionee does not
exercise his or her Option within the time period specified herein, the Option shall terminate, and
the Shares covered by such Option shall revert to and again become available for issuance under the
Plan.

          l. Death of Optionee. In the event of the death of an Optionee during, or within a
period specified in the Award Agreement after the termination of, the Optionee’s Continuous Status
as an Employee, Director or Consultant, the Option may be exercised (to the extent the Optionee was
entitled to exercise the Option at date of death) by the Optionee’s estate, by a person who
acquired the right to exercise the Option by bequest or inheritance or by a person designated to
exercise the Option upon the Optionee’s death, but only within the period ending on the earlier of
(i) the date three (3) months following the date of death (or such longer or shorter period
specified in the Award Agreement), or (ii) the expiration of the term of such

- 7 -

 

Option as set forth in the Award Agreement. If, at the time of death, the Optionee was not entitled to exercise his or
her entire Option, the Shares covered by the unexercisable portion of the Option shall revert to
and again become available for issuance under the Plan. If, after death, the Option is not
exercised within the time period specified herein, the Option shall terminate, and the Shares
covered by such Option shall revert to and again become available for issuance under the Plan.

          m. Retirement. In the event an Optionee’s Continuous Status as an Employee, Director
or Consultant terminates as a result of the Optionee’s Retirement, the Optionee may exercise his or
her Option (to the extent that the Optionee was entitled to exercise it at the date of
termination), but only within such period of time ending on the earlier of (i) the date three (3)
months following such termination (or such longer or shorter period specified in the Award
Agreement), or (ii) the expiration of the term of the Option as sat forth in the Award Agreement.
If, at the date of termination, the Optionee is not entitled to exercise his or her entire Option,
the Shares covered by the unexercisable portion of the Option shall revert to and again become
available for issuance under the Plan. If, after termination, the Optionee does not exercise his or
her Option within the time period specified herein, the Option shall terminate, and the Shares
covered by such Option shall revert to and again become available for issuance under the Plan.

          n. Other Termination of Employment or Relationship as a Director or Consultant.
Unless otherwise determined by the Committee at or after grant, if an Optionee’s employment or
other relationship with the Company terminates for any reason other than Death, Disability or
Retirement, or for Cause, the Option shall thereupon terminate, except that such Option may be
exercised for the lesser of three (3) months after such termination or the balance of such Option’s
term but only to the extent it was exercisable at the time of such termination. If, after
termination1 the Optionee does not exercise his or her Option within the time period permitted as
explained above, the Option shall terminate, and the Shares covered by such Option shall revert to
and again become available for issuance under the Plan. In the event that the Company shall sever
an Optionee’s employment as a result of a termination for Cause, notwithstanding any other
provision of the Plan, any unexercised Options of the Employee shall lapse immediately upon such
determination, subject, however, to the Optionee’s right to pursue a claim through the claims
procedure set forth herein. Further, the Optionee shall not be entitled to exercise an Option at
any time the Company has under advisement a possible termination for Cause of the Optionee.

          o. Securities Law Compliance. The Company may require any Optionee, or any person to
whom an Option is transferred as authorized hereunder, as a condition of exercising any such
Option, (i) to give written assurances satisfactory to the Company as to the Optionee’s knowledge
and experience in financial and business matters and/or to employ a purchaser representative
reasonably satisfactory to the Company who is knowledgeable and experienced in financial and
business matters, and that he or she is capable of evaluating, alone or together with the purchaser
representative, the merits and risks of exercising the Option; and (ii) to give written assurances satisfactory to the Company stating that such person is acquiring the Stock subject to the
Option for such person’s own account and not with any present intention of selling or otherwise
distributing the stock. The foregoing requirements, and any assurances given pursuant to such
requirements, shall be inoperative if the issuance of the Shares upon the exercise of the Option
has been registered under a then currently effective registration statement under the

- 8 -

 

Securities Act of 1933, as amended (the “Securities Act”), or if; as to any particular requirement, a
determination is made by counsel for the Company that such requirement need not be met in the
circumstances under the then applicable securities laws. The Company may, upon advice of counsel to
the Company, place legends on stock certificates issued under the Plan as such counsel deems
necessary or appropriate in order to comply with applicable securities laws, including, but not
limited to, legends restricting the transfer of Stock.

          p. Dollar Limitation on Incentive Stock Options. If in any calendar year the
aggregate fair market value of Stock (determined as of the date of grant) covered by Incentive
Stock Options granted to any one individual which first become exerciseable by such individual
during such calendar year exceeds $100,000 or such other limitation as may be set forth in Code
Section 422(d), the Options covering such Stock the value of which exceeds $100,000 or such other
limitation (determined with reference to the order in which granted) shall not be treated as
Incentive Stock Options.

          q. Continuous Status as an Emp1oye, Director or Consultant. For purposes of this
Section 5.5 “Continuous Status as an Employee, Director or Consultant” means the period of time a
Participant is employed by the Company or involved as a Director or Consultant with the Company,
which period is not interrupted or terminated. The Committee, in its sole discretion, may determine
whether Continuous Status as an Employee, Director or Consultant shall be considered interrupted in
the case of: (i) any leave of absence approved by the Committee, including sick leave, military
leave, or any other personal leave; or (ii) transfers between locations of the Company or between
the Company, Affiliates or their successors.

ARTICLE VI

STOCK APPRECIATJON RIGHTS

     6.1 Grant and Exercise. Stock Appreciation Rights may be granted in conjunction with
all or part of any Stock Option granted under the Plan. In the case of a Nonqualified Stock Option,
such rights may be granted either at or after the time of the grant of such Stock Option. In the
case of an Incentive Stock Option, such rights may be granted only at the time of the grant of such
Stock Option.

     6.2 Termination. A Stock Appreciation Right or applicable portion thereof granted
with respect to a given Stock Option shall terminate and no longer be exercisable upon the
termination or exercise of the related Stock Option, except that, unless otherwise determined by
the Committee in its sole discretion at the time of grant, a Stock Appreciation Right granted with
respect to less than the full number of Shares covered by a related Stock Option shall be reduced
when and to the extent that the number of Shares covered by an exercise or termination of the
related Stock Option exceeds the number of Shares not covered by the Stock Appreciation Right.

     6.3 Surrender of Stock Option. A Stock Appreciation Right may be exercised by an
Optionee, in accordance with Section 6.4, by surrendering the applicable portion of the related
Stock Option. Upon such exercise and surrender, the Optionee shall be entitled to receive an amount
determined in the manner prescribed in Section 6.4(b). Stock Options which have been

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so surrendered, in whole or in part, shall no longer be exercisable to the extent the related Stock
Appreciation Rights have been exercised.

     6.4 Terms and Conditions. Stock Appreciation Rights shall be subject to such terms and
conditions, riot inconsistent with the provisions of the Plan, as shall be determined from time to
time by the Committee, including the following:

          a. When Exercisable. Stock Appreciation Rights shall be exercisable only at such time
or times and to the extent that the Stock Options to which they relate, if any, shall be
exercisable in accordance with the provisions of Article V and this Section 6.4 of the Plan; provided, however, that any Stock
Appreciation Right granted subsequent to the grant of the related Stock Option shall not be
exercisable during the first six months of its term, except that this special limitation shall not
apply in the event of Death or Disability of the Optionee prior to the expiration of the six-month
period.

          b. Effect of Exercise. Upon the exercise of a Stock Appreciation Right, an Optionee
shall be entitled to receive up to, but not more than, an amount m cash and/or Shares of Stock
equal in value to the excess of the Fair Market Value of one Share of Stock over the exercise price
per Share specified in the related Stock Option, multiplied by the number of Shares in respect of
which the Stock Appreciation Right shall have been exercised, with the Committee having the right
to determine the form of payment.

          c. Relation to Stock Option. Stock Appreciation Rights shall be transferable only
when and to the extent that an underlying Stock Option would be transferable as provided in this
Plan.

          d. Effect on Share Limitation. Upon the exercise of a Stock Appreciation Right, the
Stock Option or part thereof to which such Stock Appreciation Right is related shall be deemed to
have been exercised for the purpose of the limitation set forth in Section 4.2(a) of the Plan on
the number of Shares of Stock to be issued under the Plan, but only to the extent of the number of
Shares issued under the Stock Appreciation Right at the time of exercise.

          e. Exercise Upon Adjustment. In its sole discretion, the Committee may provide, at
the time of grant of a Stock Appreciation Right under this Article VT, that such Stock Appreciation
Right can be exercised only upon the happening of such adjustment under Article IX as the Committee
may determine to be appropriate.

ARTICLE VII

RESTRICTED STOCK AWARDS

     7.1 Administration. Shares of Restricted Stock may be issued either alone or in
addition to other Awards granted under the Plan. The Committee shall determine the number of Shares
to be Awarded, the price (if any) to be paid by the recipient of Restricted Stock (subject to
Section 7.4), the time or times within which such Awards may be subject to vesting and/or
forfeiture, and all other conditions of the Awards.

- 10 -

 

     7.2 Criteria for Award. The Committee may but need not condition the grant of
Restricted Stock upon the attainment of specified performance goals or such other factors as the
Committee may determine, in its sole discretion.

     7.3 Varying Provisions. The provisions of Restricted Stock Awards need not be the same
with respect to each recipient.

     7.4 Awards and Certificates. The grantee of a Restricted Stock Award shall not have
any rights with respect to such Award, unless and until such recipient has executed an Award
Agreement evidencing the Award and has delivered a filly executed copy thereof to the Company, and
has otherwise complied with the applicable terms and conditions of such Award.

          a. Purchase Price. The purchase price for Shares of Restricted Stock may be any price
determined by the Committee, and may be zero.

          b. Acceptance of Award. Awards of Restricted Stock must be accepted within a period
of 60 days (or such shorter period as the Committee may specify at grant) after the Award date by
executing an Award Agreement and paying whatever price (if any) is required under Section 7.4(a).

          c. Stock Certificate. Each Participant receiving a Restricted Stock Award shall be
issued a stock certificate in respect of such Shares of Restricted Stock. Such certificate shall be
registered in the name of such Participant, and shall bear an appropriate legend referring to the
terms, conditions and restrictions applicable to such Award.

          d. Custody of Certificates. The Committee may require that the stock certificates
evidencing such Shares be held in custody by the Company until the restrictions thereon shall have
lapsed, and that, as a condition of any Restricted Stock Award, the Participant shall have
delivered a stock power, endorsed in blank, relating to the Stock covered by such Award.

     7.5 Restrictions and Conditions. The Shares of Restricted Stock awarded pursuant to
this Article VII shall be subject to the following restrictions and conditions:

          a. Restriction Period. Subject to the provisions of this Plan and the Award
Agreement, during a period set by the Committee commencing with the date of such Award (the
“Restriction Period”), the Participant shall not be permitted to sell, transfer, pledge, assign or
otherwise encumber Shares of Restricted Stock awarded under the Plan. Within these limits, the
Committee, in its sole discretion, may provide for the lapse of such restrictions in installments
and may accelerate or waive such restrictions in whole or in part, based on service, performance
and/or such other factors or criteria as the Committee may determine, in its sole discretion.

          b. Shareholder Rights. Except as provided in this paragraph (b) and Section 7.5(a),
the Participant shall have, with respect to the Shares of Restricted Stock, all of the rights of a
shareholder of the Company, including the right to vote the Shares and the right to receive any
dividends. The Committee, in its sole discretion, as determined at the time of Award, may permit or
require the payment of any cash dividends to be deferred and, if the Committee so determines, to be
reinvested in additional Restricted Stock to the extent Shares are available under Section 4.2(a).

- 11 -

 

          c. Forfeiture of Shares. Subject to the applicable provisions of the Award Agreement
and this Article VII, upon termination of a Participant’s employment with the Company for any
reason during the Restriction Period, all Shares still subject to restriction shall be forfeited by
the Participant.

          d. Waiver of Restrictions. In the event of hardship or other special circumstances
of a Participant whose relationship with the Company is involuntarily terminated (other than for
Cause), the Committee may, in it sole discretion, waive in whole or in part any or all remaining
restrictions (other than these imposed by law) with respect to such Participants Shares of
Restricted Stock, based on such factors as the Committee may deem appropriate.

          e. Delivery of Shares. If and when the Restriction Period expires without a
forfeiture of the Restricted Stock, the certificates for such Shares shall be promptly delivered to
the Participant.

ARTICLE VIII

PERFORMANCE AWARDS

     8.1 Grant of Right to Earn Award. The Committee may grant to any one or more
Participants the opportunity to earn a Performance Award based on the achievement by the
Participant, the Company or any Affiliate of performance objectives established by the Committee
prior to the grant of such opportunity. The Committee shall determine in its discretion the period
during which such performance objectives shall be measured for the purpose of determining the
extent to which a Performance Award has been earned. Any Participant may receive, from time to
time, one or more such opportunities. Opportunities to earn Performance Awards may be granted at
the same or different times as grants of other Awards hereunder. The provisions relating to any
opportunity to earn a Performance Award and performance objectives incident to any Performance
Award may vary from one Participant to another or from one opportunity to another of any particular
Participant.

     8.2 Participant Consideration. Except as the Committee may otherwise determine, a
Participant who receives an opportunity to earn a Performance Award is not required to provide
consideration for that opportunity or for receipt of the Performance Award other than the rendering
of service in compliance with the performance objectives and over the period of time established by
the Committee,

     8.3 Award Agreement. The terms of any opportunity given a Participant to earn a
Performance Award and all other terms and provisions that the Committee may in its discretion
determine to be applicable or prerequisite to a Performance Award shall be set forth in an Award
Agreement.

     8.4 Shares Granted as Performance Award. The grant of a Performance Award shall not
reduce the number of Shares available for Awards under this Plan, except to the extent that Shares
are actually Awarded or otherwise delivered to a Participant pursuant to or in connection with such
Performance Award.

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ARTICLE IX

ADJUSTMENTS

     9.1 Recapitalizations, Etc. In the event of a recapitalization, reclassification,
stock dividend, stock split, reverse stock split, or other distribution with respect to the common
voting and nonvoting stock of the Company, an appropriate or proportionate adjustment will be made
in (i) the maximum number and kind of Shares of Stock subject to the Plan and all then outstanding
Awards, and (ii) the price for each Share subject to the then outstanding Awards, in order to
maintain the aggregate purchase price or value of the Shares as to which such Awards remain
exercisable.

     9.2 Acceleration of Exercise. The Committee in its discretion, as a term and
condition of the Award at the time of grant or at any time thereafter, may provide that upon
dissolution and liquidation of the Company, or upon a merger, consolidation or other reorganization
of the Company as a result of which the current shareholders of the Company are no longer in
control of the surviving or resulting corporation, or upon a sale of substantially all of the
assets of the Company or of stock representing control of the Company, that all Awards then
outstanding under the Plan will become fully exercisable and deliverable and all restrictions
imposed by the Plan will immediately cease. By “control” is meant more than 50% of the voting stock
of the Company.

     9.3 Right to Call Options. The Committee in its discretion may call any or all Stock
Options theretofore granted under the Plan by written notice to the Option holder in accordance
with the notice provisions hereof. Such call may occur at any time prior to the exercise of such
Options. The Committee shall compensate the holder of an Option which has been called with an
amount payable in cash equal to the amount which would have been payable to the holder upon the
exercise of a Stock Appreciation Right had one been granted with respect to such Option, whereupon
such Option shall be cancelled. The Company shall pay such amount in full within thirty (30) days
of the date of call, with no interest accruing prior to the date of payment.

     9.4 Committee Decision Final. Adjustments under Sections 9.1, Section 9.2 or 93 will
be made by the Committee, whose determination as to what adjustments will be made and the extent
thereof will be final, binding, and conclusive. No fractional interest will be issued under the
Plan on account of any such adjustments.

     9.5 Compliance with Code Section 280G. No payment shall be required to be made under
the Plan to the extent that, when aggregated with other payments made to an Employee, such payment
would, as determined by the Committee in its sole discretion, at or prior to a change in the
ownership or effective control (as defined in Section 280G of the Code) of the Company, result in
an excess parachute payment for which the Company would not receive a Federal income tax deduction
by reason of Code Section 280G.

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ARTICLE X

ADMINISTRATION

     10.1 The Board. The Plan shall be administered by the Board unless and until the
Board delegates administration to a Committee, as provided in Section 10.2. Without limiting the
generality of the foregoing, the Board shall have authority to do the following:

          a. Determine from time to time which of the persons eligible under the Plan shall be granted
Options or any other Award, which Awards shall be granted to them, when and how each Option or
Award shall be granted and whether an Option will be an Incentive Stock Option or a Nonstatutory
Stock Option, and determine the terms and provisions of each Option or Award granted (which need
not be identical), including the time or times such Option or other Award may be exercised in whole
or in part and the number of Shares for which an Option shall be granted to each such person.

          b. Construe and interpret the Plan and Awards granted under it, and to establish, amend and
revoke rules and regulations for its administration. The Board, in the exercise of this power, may
correct any defect, omission or inconsistency in the Plan or in any Award in a manner and to the
extent it shall deem necessary or expedient to make the Plan fully effective.

          c. Amend the Plan or an Award as provided in Article XI.

          d. Generally, to exercise all powers, and to perform any acts and to make any decisions as
the Board deems necessary or expedient to promote the best interests of the Company under the Plan
as permitted by law.

     10.2 The Committee. The Board may delegate administration of the Plan to a committee
composed of one or more members (the “Committee’s). Members of the Committee may, but need not be,
directors, officers or Employees of the Company or its Affiliates. The Board may from time to time
remove members from, or add members to, the Committee. The Board may abolish the Committee at any
time and reinvest in the Board the administration of the Plan. Vacancies on the Committee,
howsoever caused, shall be filled by the Board. The Board shall designate one member of the
Committee as chairman. The Committee shall hold meetings at such times and places as it may
determine. Acts approved by a majority of the Committee at which a quorum is present, or acts
approved in writing by a majority of the members of the Committee, shall be the valid acts of the
Committee. The Committee shall have authority, consistent with the Plan and not by way of
limitation, to do any act or make any decision authorized herein or afforded it under law. No
member of the Board or the Committee shall be liable for any action or determination made in good
faith with respect to the Plan or any Award granted under it.

     10.3 Construction and Interpretation of the Plan. The interpretation and construction
by the Committee of any provision of the Plan or an Award shall be final and binding on all persons
interested in the Plan or Award.

     10.4 Delegation of Operational Responsibilities. The Committee may delegate or
allocate any of its operational responsibilities tinder the Plan (other than the responsibility to

- 14 -

 

determine Participants and the number of Shares to be subject to Awards to be granted to such
Participants under the Plan) to other persons to carry out the administration of the Plan.

     10.5 Indemnification of Committee. In addition to such other tights of
indemnification as they may have, the members of the Committee shall be indemnified by the Company
against the reasonable expenses, including attorneys’ fees actually and necessarily incurred in
connection with the defense of any action, suit or proceeding, or in connection with any appeal
therein, to which they or any of them may be a party by reason of any action taken or failure to
act under or in connection with the Plan or any Award granted thereunder, and against all amounts
paid by them in settlement thereof (provided such settlement is approved by independent legal
counsel selected by the Company) or paid by them in satisfaction of a judgment in any such action,
suit or proceeding, except in relation to matters as to which it shall be adjudged in such action,
suit or proceeding that such Committee member is liable for gross negligence or willful misconduct
in the performance of his duties; provided, that within sixty (60) days after institution of any
above action, Suit or proceeding, such Committee member shall in writing offer the Company the
opportunity, at its own expense, to handle and defend the same. Notwithstanding anything herein to
the contrary, a condition of such indemnification shall be the cooperation of such Committee member
with the Company in the defense of any such action, Suit or proceeding.

ARTICLE XI

AMENDMENT, SUSPENSION OR TERMINATION OF THE PLAN

     11.1 Plan Amendment. The Board at any time, and from time to time, may adopt
amendments to the Plan in any respect the Board deems necessary or advisable including, without
limiting the foregoing, amendments to ensure that the Plan and/or Incentive Stock Options remain in
compliance with Section 422 of the Code. However, except as provided in Article IX relating to
certain adjustments, no amendment shall be effective unless approved by the stockholders of the
Company within twelve (12) months before or after the adoption of the amendment, if the amendment
will:

          a. Increase or decrease the number of Shares reserved for the grant of Awards under the Plan;

          b. Modify the requirements of eligibility for participation in the Plan, to the extent such
modification requires stockholder approval in order for the Plan to satisfy the requirements of
Section 422 of the Code; or

          c. Modify the Plan in any other way, if such modification requires stockholder approval in
order for the Plan to satisfy the requirements of Section 422 of the Code.

     11.2 Amendment of Awards. The Board at any time, and from time to time, may amend the
terms of any one or more Awards; provided, however, that the rights and obligations under any Award
shall not be impaired by any such amendment unless the Company obtains the written consent of the
person to whom the Award was granted.

- 15 -

 

     11.3 Suspension or Termination. The Board may suspend or terminate the Plan at any
time. Unless sooner terminated, the Plan shall terminate on the ten (10) year anniversary of the
date the Plan is adopted by the Board or approved by the stockholders of the Company, whichever is
earlier. No Awards may be granted under the Plan while the Plan is suspended or after it is
terminated.

ARTICLE XII

REVIEW PROCEDURE UPON DENIAL OF A CLAIM

     12.1 Notice of Denial of Claim. Any denial by the Committee of a claim for benefits
wider the Plan made by a Participant or any other claimant (“Claimant”) shall be stated in writing
by the Committee and delivered or mailed to the Claimant. Such notice shall set forth the specific
reasons for the denial, written in a manner that may be understood without legal or actuarial
counsel. Such notice shall also advise the Claimant of the availability of a review of the
decision denying the claim.

     12.2 Review Procedure. Any claimant whose claim for benefits has been denied shall be
afforded a reasonable opportunity for a review of the decision denying the claim in accordance
herewith. The Committee shall establish and may modify from time to time uniform rules of procedure
for such a review of the decision denying the claim. Such review may in the discretion of the
Committee be made by the Committee or any other person or persons designated by the Committee. Such
review procedure, however, shall not (unless the Committee in its discretion determines otherwise)
include the opportunity of a personal appearance by the Claimant. If, after such review, the claim
is still denied, the Claimant shall be notified of the denial, and the notice shall set forth the
specific reasons for denial written in a manner that may be understood without legal or actuarial
counsel. A Committee decision on denial of a claim with respect to which no review is sought by the
Claimant within the time and manner prescribed by the Committee shall be final and binding on all
persons interested in the Plan. All decisions of the Committee or other reviewing body shall be
final and conclusive on all persons interested in the Plan.

ARTICLE XIII

GENERAL PROVISIONS

     13.1 Securities Restrictions. All certificates for Shares of Stock or other
securities delivered under the Plan shall be subject to such stock-transfer orders and other
restrictions as the Committee may deem advisable under applicable laws, rules, regulations, any
stock exchange upon which the Stock is then listed, and any applicable Federal Or state securities
law, and the Committee may cause a legend or legends to be put on any such certificates to make
appropriate reference to such restrictions.

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     13.2 Restrictions on Transferability. Except as otherwise authorized by the Committee
for Awards other than Incentive Stock Options, no Award issued under the Plan shall be transferable
by the Participant other than by will or the laws of descent and distribution, and each Award shall
be exercisable during the Participants lifetime only by him. No Award shall be pledged or
hypothecated in any way and no Award shall be subject to execution, attachment or similar process.

     13.3 Other Arrangements. Nothing contained in this Plan shall prevent the Board from
adopting other or additional compensation arrangements, subject to stockholder approval if such
approval is required, and such arrangements may be either generally applicable or applicable only
in specific cases.

     13.4 No Vested Rights. The adoption of the Plan or granting of an Option shall not
confer upon any Participant any right to continued employment, Board membership or contractual
dealings with the Company as the case may be, nor shall it interfere in any way with the right of
the Company to terminate the employment or other relationship of any of its employees, Directors,
or Consultants at any time.

     13.5 Federal Tax Obligations. The Company shall have the right to withhold from any
transfer or payment made to a Participant under this Plan all federal, state or other taxes as
shall be required pursuant to any statute or governmental regulation or ruling. In connection with
such withholding, the Company may make any arrangement consistent with this Plan as it may deem
appropriate. The Company shall not be required to make any distribution of cash or Shares pursuant
to this Plan until any actual or potential withholding obligation of a Participant arising under
the Plan is satisfied. To the extent provided in the sole discretion of the Committee, the
Participant may satisfy any federal, state or local tax withholding obligation or other tax
liability relating to the exercise of an Award by any of the following means or by a combination of
such means; (1) tendering a cash payment; (ii) authorizing the Company to withhold Shares from the
Shares of the Stock of the Company otherwise issuable to the participant as a result of the
exercise of the Option; or (iii) delivering to the Company owned and unencumbered shares of the
Stock of the Company. The Fair Market Value of any Shares of Stock retained or received in
fulfillment of such obligation or liability shall be determined by the Committee in its sole
discretion, acting in good faith.

     13.6 Right of First Refusal and Redemption. The Committee may provide in connection
with the grant of any Award under this P1 an that the Shares of Stock received as a result of such
grant shall be subject to a right of first refusal, pursuant to which the Participant shall be
required to offer to the Company any Shares that the Participant may thereafter wish to sell, with
the price being the then Fair Market Value of the Stock, subject to such other terms and conditions
as the Committee may specify at the time of grant. The Award Agreement may also contain other
provisions, restrictions and limitations concerning the holding and transfer of Shares obtained
pursuant to receipt or exercise of an Award. The Committee may also grant Participants the right to
cause the Company to redeem part or all of their Shares at such times and upon such terms as the
Committee may in its discretion provide.

     13.7 Written Award Agreement. Any grant made under this Plan shall be represented by
a written Award Agreement between the Company and the Participant receiving the grant

- 17 -

 

setting forth the material terms of the grant, and incorporating the terms of this Plan
(whether specifically or generally by reference as determined by the Committee) into each such
Award Agreement.

     13.8 Unfunded Status of Plan. The Plan is intended to constitute an “unfunded” plan
for incentive and deferred compensation. With respect to any payments not yet made to a Participant
by the Company, nothing contained herein shall give any such Participant any rights that are
greater than those of a general creditor of the Company. In its sole discretion, the Committee may
authorize the creation of trusts or other arrangements to meet the obligations created under the
Plan to deliver Stock or payments in lieu afar with respect to Awards hereunder; provided, however,
that, unless the Committee otherwise determines with the consent of the affected Participant, the
existence of such trusts or other arrangements must be consistent with the “unfunded” status of the
Plan.

     13.9 Designation of Beneficiary. The Committee shall establish such procedures as it
deems appropriate for a Participant to designate a beneficiary to whom any amounts payable in the
event of the Participant’s death are to be paid.

     13.10 Severability. In the event any Section or paragraph in this Plan or any Award
Agreement or writing relating to the Plan is found to be illegal or invalid for any reason, such
illegality or invalidity shall not affect the remaining provisions of the Plan and the Plan shall
be construed and enforced as if such illegal and invalid provision had never been set forth in the
Plan; provided, that the Committee may conclude that the purposes of the Plan have been materially
frustrated by such a finding and may thereupon terminate the Plan. In the event of any conflict or
disagreement in the terms of this Plan and any Award Agreement, the terms of this Plan shall
control.

     13.11 Construction. Where applicable, the masculine includes feminine and. neuter and
vice versa. Where applicable, the singular includes the plural and vice versa. Where a word or
phrase is defined in one place in the Plan and appears in capitalized form in another place in the
Plan, such word or phrase shall have the meaning first set forth unless the context clearly
requires otherwise. A word or phrase in noncapitalized form shall retain its plain meaning taken
in the context in which it appears, regardless of whether said word or phrase is defined in the
Plan.

     13.12 Headings. The headings are for reference only. In the event of a conflict
between a heading and the content of an Article or paragraph, the content of the Article or
paragraph shall control.

     13.13 Notices. All notices shall be given to or made upon the Company at its regular
business office address, as it may be changed from time to time. All notices shall be given to or
made upon a Participant at the Participant’s address as reflected on the Company’s records, or at
such other address as a Participant may designate in writing delivered to the Company. Unless
otherwise agreed in this Agreement, all notices shall be given or made by personal delivery, by
confirmed air courier, or by certified first class mail, return receipt requested, postage prepaid,
to the party at such address. If sent by confirmed air courier, such notice shall be deemed to be
given upon the earlier to occur of the date upon which it is actually received by the addressee or

- 18 -

 

the business day 1pon which delivery is made at such address as confirmed by the air courier
(or if the date of such confirmed delivery is not a business day, the next succeeding business
day). If mailed, such notice shall be deemed to be given upon the earlier to occur of the date upon
which it is actually received by the addressee or the third business day following the date upon
which it is deposited in a first-class postage prepaid envelope in the United States mail addressed
as stated above.

     13.14 Governing Law. The Plan and all Awards made and actions taken thereunder shall
be governed by and construed in accordance with the laws of the State of Utah.

     IN WITNESS WHEREOF, the undersigned verifies that the foregoing Plan was adopted by the Board
of Directors of the Company as of the 12th day of June, 2001.

	 	 	 	 	 
	 	 	 
	 	    /s/ David C. Robinson
 	 
	 	David C. Robinson, President/CEO 	 

- 19 -

 

FIRST AMENDMENT TO COMPREHENSIVE

MANAGEMENT INCENTIVE PLAN

     PURSUANT TO Section 9.1 of the Comprehensive Management Incentive Plan (the “Plan”) of
TechniScan, Inc., dated June 12, 2001, in response to the 10:1 forward stock split of the capital
stock of TechniScan which was approved on October 25, 2001, the Company hereby amends the Plan to
increase the maximum number of Shares of Stock authorized for issuance under Section 4.2 of the
Plan to 5,000,000 shares of common voting stock.

     DATED as of October 25, 2001.

	 	 	 	 	 
	 	TechniScan, Inc.

 	 
	 	By:  	
 	 
	 	 	David C. Robinson, President 	 
	 	 	 	 

 

 

	 	 	 	 	 

SECOND AMENDMENT TO COMPREHENSIVE

MANAGEMENT INCENTIVE PLAN

     PURSUANT TO Section 11.1 of the Comprehensive Management Incentive Plan (the “Plan”) of
TechniScan, Inc., dated June 12, 2001, as amended, the Company hereby amends the Plan as follows:

     1. Section 2.24 is amended to read as follows:

     2.24 “Stock” or “Share” means any class of common or preferred stock
of the Company.

     2. Paragraph a of Section 4.2 is amended to read as follows:

     a. The maximum number of Shares of Stock authorized for issuance under the Plan with
respect to the grant of Awards while the Plan is in effect, subject to adjustment in
accordance with Section 9.1 below, shall be 7,500,000 Shares, or such other number of Shares
as may be subsequently approved by the Board, and if required pursuant to Section 422 of the
Code, by the Shareholders.

     DATED
as of 2/10, 2004.

	 	 	 	 	 
	 	TechniScan, Inc.

 	 
	 	By:  	
 	 
	 	 	David C. Robinson, President 	 
	 	 	 	 
	 

 

 

THIRD AMENDMENT TO COMPREHENSIVE

MANAGEMENT INCENTIVE PLAN

     PURSUANT TO Section 11.1 of the Comprehensive Management Incentive Plan (the “Plan”) of
TechniScan, Inc., dated June 12, 2001, as amended, the Company hereby amends the Plan as follows:

     1. Paragraph a of Section 4.2 is amended to read as follows:

          a. The maximum number of Shares of Stock authorized for issuance under the Plan with respect
to the grant of Awards while the Plan is in effect, subject to adjustment in accordance with
Section 9.1 below, shall be 12,000,000 Shares, or such other number of Shares as may be
subsequently approved by the Board, and if required pursuant to Section 422 of the Code, by the
Shareholders.

DATED as of June 9, 2006.

	 	 	 	 	 
	 	TechniScan, Inc.

 	 
	 	By:  	/s/ David C. Robinson
 	 
	 	 	David C. Robinson, President 	 
	 	 	 	 

 

 

	 	 	 	 	 

FOURTH AMENDMENT TO

EMPLOYEE STOCK OPTION PLAN

     PURSUANT TO Section 5 of the Comprehensive Management Incentive Plan (the “Plan”) of
TechniScan, Inc., dated June 12, 2001, as amended, the Company hereby amends the Plan as follows:

     1. Paragraph l of Section 5.5 is amended to read as follows:

          a. Death of Optionee. In the event of the death of an Optionee during, or within a
period specified in the Award Agreement after the termination of, the Optionee’s Continuous Status
as an Employee, Director or Consultant, the Option may be exercised (to the extent the Optionee was
entitled to exercise the Option at date of death) by the Optionee’s estate, by a person who
acquired the right to exercise the Option by bequest or inheritance or by a person designated to
exercise the Option upon the Optionee’s death, but only within the period three (3) years following
the date of death. If, at the time of death, the Optionee was not entitled to exercise his or her
entire Option, the Shares covered by the unexercisable portion of the Option shall revert to and
again become available for issuance under the Plan. If, after death, the Option is not exercised
within the time period specified herein, the Option shall terminate, and the Shares covered by such
Option shall revert to and again become available for issuance under the Plan.

DATED as of April 10, 2009.

	 	 	 	 	 
	 	TechniScan, Inc.

 	 
	 	By:  	/s/ David C. Robinson
 	 
	 	 	David C. Robinson, President

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