Document:

exhibit10-21.htm

     EXPLORATION
CONTRACT WITH AN OPTION TO PURCHASE

    

    In the
city of San Salvador de Jujuy, Province of Jujuy, on 8th
February 2010, between on the one part Mr. Antonio Augustin Giulianotti, N.I.D.
(National Identity Document)
No. 7.379.817, with domicile in Dr. Aparicio Street No. 667, District of
Ciudad de Nieva, city of San Salvador de Jujuy, Province of Jujuy, who in this
deed is acting in his own right and for and on behalf of JUAN PABLO GIULIANOTTI,
Argentinean, N.I.D. No29707995; CLAUDIA KARINA GIULIANOTTI, Argentinean, N.I.D.
No23946342 and MARÍA GABRIELA GIULIANOTTI, Argentinean, N.I.D. No22777383;
ABRAHAM ALFREDO CABEZAS, N.I.D. No11256394 and ANA MARÍA IBAÑEZ, N.I.D.
No6435121, in accordance with special power of attorney of July 6th,
2007, which to date is still valid and has neither been revoked or limited,
presented before Notary Public of this city Cesar Ricardo Frias (hereinafter the
“TITLE HOLDER”), and on the other part Mr. FABIO MONTANARI, with Italian
Passport No. E571059, with current domicile at Obispo Padilla 588, Borough of
Nieva, city of San Salvador de Jujuy, Province of Jujuy, who in this deed is
acting as an individual and in his capacity as person in charge of a Company or
of a Joint Venture to be named in the future, (hereinafter the “INTERESTED
PARTY”), the parties jointly and in common agreement declare;

    

    PRELIMINARY
INFORMATION

    

    The TITLE
HOLDER has registered in his name, before the Court of Mines of the Province of
Jujuy, the mining property identified as file 020-G-1997 registered as Sur
Eureka mine, with an area of 2926 hectares, located in the Department of Santa
Catalina of this Province, (hereinafter the MINING PROPERTY).

    

    As the
INTERESTED PARTY wishes to obtain from the TITLE HOLDER the exclusive right to
explore the MINING PROPERTY, with an option to purchase it, the INTERESTED PARTY
and the TITLE HOLDER agree to execute a Contract, subject to the following
articles:

    

    ONE:
DECLARATIONS AND GUARANTEES

    

    1- The
TITLE HOLDER declares and guarantees to the INTERESTED PARTY that:

    

    a) He has
the exclusive right to execute and carry out this Contract, which is binding and
enforceable in accordance with its terms.

    b) He has
the proper and commercial right over all the MINING PROPERTY, which is free from
any encumbrance, mortgage, attachment or lien.

    c) There
are no claims over the ownership of the MINING PROPERTY nor, to the best of his
knowledge, any grounds to such claims.

    d) There
are no other agreements in force nor options relating to the exploration or the
exploitation of the MINING PROPERTY.

    e) To the
best of his knowledge, information and belief, there are no legal actions either
outstanding or to be initiated, no lawsuits, claims or disputes relating to the
MINING PROPERTY or which could affect its possession

    f) The
MINING PROPERTY has not been explored or exploited with mechanical equipment
that might have caused environmental changes or damage or with the potential to
cause environment damage in the future, such as drainage of acid
rocks.

    

    1.2.1           The
declarations and guarantees established in preceding clause 1.1 have been
considered by the parties as conditions of the Contract and will remain in force
for the whole period of this Contract and following the purchase of the MINING
PROPERTY by the INTERESTED PARTY; consequently each party is obliged to
indemnify and release the other from any loss, damage, cost or legal action
which may result from the misrepresentation of any of the preceding declarations
and guarantees.

    

    
      
         

      

      
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    TWO:
TERM

    

    The
period of validity of this Contract will begin once it has been signed and it
will remain in force for the time necessary for the fulfilment of the
stipulations of articles NINE and TEN.

    

    THREE:
EVALUATION AND EXPLORATION

    

    The TITLE
HOLDER grants the INTERESTED PARTY the exclusive possession of the MINING
PROPERTY for the term of this Contract, authorizing him to exercise all mining
rights conferred on the TITLE HOLDER, which includes the exclusive right to
assess the MINING PROPERTY and carry out exploratory operations therein, as well
as any other work relating to this activity, according to the method, form and
extent that the INTERESTED PARTY may determine at his own
discretion.

    

    FOUR:

    

    
      	
               
      

            	
              4.1
      In this deed the TITLE HOLDER delivers to the INTERESTED PARTY all the
      geological,   administrative and legal information in his
      possession on the MINING PROPERTY which is the subject of this
      Contract.

            

    

    

    
      	
              4.2  

            	
              During
      the term of this Contract the INTERESTED PARTY, his dependents or
      representatives will have the right to conduct all exploratory activities
      on the MINING PROPERTY that the TITLE HOLDER has the right to conduct
      according to the Argentinean Mining
Code.

            

    

     
 

    
      	
              4.3  

            	
              The
      TITLE HOLDER authorizes the INTERESTED PARTY to conduct on the MINING
      PROPERTY topographical, geographical and geophysical surveys, drilling
      works, trench and well works or any other kind of mining work of an
      exploratory nature.  The INTERESTED PARTY will be able to
      extract, analyze and process samples, both geochemical and metallurgical,
      including those of an industrial size, send them to laboratories or
      research centres and deliver samples at necessary volumes to be tested by
      potential buyers.

            

    

    

    
      	
              4.4  

            	
              The
      INTERESTED PARTY, his representatives, dependents, agents, his own workers
      or those belonging to contractors, will have the right to access the
      MINING PROPERTY without any limitation and to introduce into the property
      all machines, tools, equipment and supplies deemed necessary or
      appropriate.  At the termination of this Contract, for any
      reason, within one hundred and twenty (120) calendar days starting from
      the date of termination of this Contract, the INTERESTED PARTY may remove
      said machines, tools, equipment and supplies at his own
      expense.

            

    

    

    
      	
              4.5  

            	
               The
      TITLE HOLDER or his representatives will have the right to access the
      MINING PROPERTY.  The INTERESTED PARTY will not be held
      responsible for any damage or loss that may be suffered by the TITLE
      HOLDER or his representatives on the occasion of their work and during
      visits to the MINING PROPERTY, with the exception of that caused by fault
      or negligence of the INTERESTED
PARTY.

            

    

    

    

    
      
         

      

      
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    FIVE:

    

    
      	
              5.1  

            	
              The
      INTERESTED PARTY will be held responsible for the contracting of personnel
      required for the fulfilment of his contractual obligation and in respect
      of said personnel, must strictly comply with current stipulations on
      matters of labour and pension
legislation.

            

    

    

    
      	
              5.2  

            	
              The
      INTERESTED PARTY is obliged to take out Liability Insurance in order to
      cover contingencies arising as a consequence of the activities that the
      INTERESTED PARTY carries out on the MINING
  PROPERTY.

            

    

    

    
      	
              5.3

            	
              The
      INTERESTED PARTY is obliged to keep the TITLE HOLDER free from liability
      for any damage or loss as a consequence of judgements or claims of a
      work-related, civil, commercial or criminal nature made by third parties
      as a consequence of the activity carried out by the INTERESTED PARTY in
      the execution of this Contract, as well as damage caused to third persons,
      their personnel and/or subcontractors and that caused to the
      environment.  In any of the events mentioned above, the
      INTERESTED PARTY will bear the legal defence costs of the TITLE HOLDER in
      the courts.

            

    

    

    SIX:

    

    In case
the option agreement is not exercised, the INTERESTED PARTY is obliged to
provide the TITLE HOLDER with all data relating to deposits or evidence of
minerals discovered during the evaluation and exploration of the MINING
PROPERTY.

    

    The TITLE
HOLDER undertakes not to make any kind of declaration, presentation of
documentation or take any other action, measures or steps of any kind relating
to THE MINING PROPERTY, before the Court of Mines of the Province of Jujuy nor
before other subsidiary establishment, without the prior consent of the
INTERESTED PARTY.  Non-compliance with this will bring about the
rescission of this Contract, at the discretion of the INTERESTED PARTY, with the
TITLE HOLDER being held responsible for damage and loss caused to the INTERESTED
PARTY as a consequence thereof.

    

    The TITLE
HOLDER can conduct audits of the exploration tasks and other mining activities
that the INTERESTED PARTY carries out on the MINING PROPERTY, using his own
auditors or those appointed by the TITLE HOLDER.

    

    The
INTERESTED PARTY will take all the necessary steps so that, should the case
arise, the declarations of discoveries which are made in the area covered by the
MINING PROPERTY and any other mining right,  are registered before the
Court of Mines of the Province of Jujuy  and these will be registered
under the name of the TITLE HOLDER.

    

    The
declarations and other mining rights registered in the name of the TITLE HOLDER
as a consequence of exploratory works carried out by the INTERESTED PARTY within
the MINING PROPERTY will be automatically incorporated into the same and as a
consequence will be subject to the Option to Purchase and the remaining
provisions of this Contract.

    

    Unless
the Court of Mines of the Province of Jujuy requires the measurement, staking
out and registration of the MINING PROPERTY, or if there is a legal obligation
to do so, the legal figures in force on the date the contract is signed will be
held by the TITLE HOLDER until the INTERESTED PARTY exercises the Option to
Purchase.

    

    
      
         

      

      
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    The TITLE
HOLDER will do everything necessary to maintain the validity of his right over
the MINING PROPERTY.

    

    SEVEN:

    

    During
the period of validity of this Contract, the TITLE HOLDER voluntarily refrains
from carrying out acts of disposal of or encumbrance on the MINING PROPERTY,
whatever they may be, including but not limited to: sales, transfers, mortgages,
assignments, leases, contracting and hereditary leases.

    

    In this
deed the TITLE HOLDER signs a presentation to the Court of Mines of the Province
of Jujuy requesting the registration of the restriction referred to in the
paragraph above.  This restriction will be valid during the term of
the Contract but can be lifted unilaterally by the TITLE HOLDER should the
INTERESTED PARTY not exercise the Option to Purchase of this Contract at the
terms established in article TEN.

    

    In
support of the said restriction, the TITLE HOLDER will proceed with the
registration of this Contract before the Court of Mines of the Province of
Jujuy, and failing this, will authorise the INTERESTED PARTY to formalize said
registration. The costs of the stamp and fees received for services applicable
according to the tax laws of the Province of Jujuy for the corresponding period
up to the exercise of the Option to Purchase of the MINING PROPERTY, will be
charged to the INTERESTED PARTY.

    

    If the
INTERESTED PARTY opts to purchase the MINING PROPERTY and its transfer could not
be made due to the fault of the TITLE HOLDER before the date of expiry of the
restriction, he must request that the Court of Mines of the Province of Jujuy
register an extension of this period until the transfer is formalized and
failing that, authorize the INTERESTED PARTY irrevocably to request such
extension on his behalf.

    

    EIGHT:
RESCISSION

    

    During
the period this Contract is in force the INTERESTED PARTY may at any moment
unilaterally give up the Option to Purchase and cancel this Contract, even after
having exercised said Option to Purchase. This decision must be communicated to
the TITLE HOLDER in a reliable manner and with no less than thirty (30) calendar
days notice.  The Contract will terminate for both parties on the
effective date of rescission specified in the notification.

    

    This
rescission will not grant the TITLEHOLDER the right to any claim whether as
indemnity, loss or business interruption.

    

    As from
the effective date of rescission the INTERESTED PARTY will not be obliged to
make the outstanding payments established in article TEN.

    

    The TITLE
HOLDER will be able to cancel this Contract if the INTERESTED PARTY does not
comply with the payments established in article TEN, after thirty (30) days have
passed since the TITLE HOLDER had requested such compliance in a reliable manner
and in writing according to what is established in article
NINETEEN.

    

    NINE:
OPTION TO PURCHASE

    

    During
the period of validity of this Contract, the INTERESTED PARTY will have the
exclusive option to acquire the MINING PROPERTY, which will be understood to
have been automatically executed once the INTERESTED PARTY completes the
payments established in the article.

     

    
      
         

      

      
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    TEN:

    

    Once the
Option to Purchase is executed, the TITLE HOLDER must sign and deliver all
documents, proceed with all registrations and entries and take all steps
required to execute the assignment or transfer of the MINING PROPERTY to the
INTERESTED PARTY, free from any obligation, charge or encumbrance.

    

    Moreover,
the TITLE HOLDER will have the right to the following payment plan:

    

    During
the life of the mine, the TITLE HOLDER will receive 1% of the NSR (Net Smelter
Return). This can be purchased by the INTERESTED PARTY for $ 1,000,000.00 (One
Million US Dollars) anytime after the start of production.

    

    Plus

    

    Payment
of a “total sum” of $1,500,000 (One Million Five Hundred Thousand US Dollars),
subtracting from this amount the payments of the option already
made.

    

    
      	
              10.1.  

            	
              The
      total price the INTERESTED PARTY will pay to the TITLE HOLDER for Right of
      Exploration and Option to Purchase on the MINING PROPERTY including all
      titles, properties and mining rights which make up the property, consists
      of the “total sum” to be paid as
follows:

            

    

    

    - On
8th
February 2010, the sum of US$30,000 (Thirty thousand US Dollars)

    

    - On
9th
February 2010, the sum of US$70,000 (Seventy thousand US Dollars).

    

    - On
20th
March 2010, the sum of US$50,000. - (Fifty thousand US Dollars). -

    

    - On
30th July
2010, the sum of US$1,350,000 (One million three hundred and fifty thousand US
Dollars).

    

    
      	
              10.2.  

            	
              Once
      the Option to Purchase is exercised in the way indicated in paragraph
      10.1., then the assignment or transfer of ownership of each and every one
      of the properties and mining rights which make up the MINING PROPERTY must
      be signed before a Notary Public who will be appointed by the INTERESTED
      PARTY.  The said transfer must be made within thirty (30)
      working days counted as from the date the Option to Purchase was put into
      effect.  The costs of drawing up the deed, stamp and fees
      applicable to such assignment or transfer according to the tax regulations
      of the Province of Jujuy will be borne equally by the
    parties.

            

    

    

    
      	
              10.3.  

            	
              If
      by 30th
      July 2010 the payment of the sum of US$ 1,350,000 (One million three
      hundred and fifty thousand US Dollars) is not made, the INTERESTED PARTY
      will have a priority on the right of option for the purchase of the MINING
      PROPERTY for three years.  If the TITLE HOLDER opts in that time
      to sell or contract with a third party, the INTERESTED PARTY will have the
      right, at the same conditions and with a period of ten calendar days after
      notification to the address reported in this contract, to purchase or
      contract at identical conditions.

            

    

    

    

    
      
         

      

      
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    ELEVEN:
TERMINATION OF CONTRACT

    

    
      	
              11.2

            	
              If
      the INTERESTED PARTY or the TITLE HOLDER were to rescind the Contract,
      this would be terminated for both parties on the effective date of
      rescission as is indicated in the corresponding
    notification.

            

    

    

    
      	
               
      

            	
              TWELVE:

            

    

    

    
      	
               
      

            	
              When
      termination of the Contract takes place due to the reasons indicated in
      the previous paragraph, the INTERESTED PARTY
  must:

            

    

    

    
      	
              12

            	
              Give
      back possession of the MINING PROPERTY to the TITLE HOLDER.  The
      TITLE HOLDER will receive possession or ownership of the MINING PROPERTY,
      as the case may be, in the physical and legal condition it is in, with no
      right to claim indemnity for damages, losses, business interruption or
      reparation of any kind.

            

    

    

    
      	
              12.2

            	
              Sign,
      register and deliver to the TITLE HOLDER all documents required to verify
      the termination of the Contract before the Court of Mines of the Province
      of Jujuy or before interested third
parties.

            

    

    

    
      	
              12.3

            	
              Leave
      the MINING PROPERTY within one hundred and twenty (120) calendar days from
      the effective date of termination of the Contract and remove from it, at
      his own expense, all machinery, tools, equipment, personal belongings and
      appliances brought in.  In order to comply with this obligation,
      the INTERESTED PARTY will be able to access the MINING PROPERTY during
      that period.

            

    

    

    
      	
              12.4

            	
              Deliver
      to the TITLE HOLDER within sixty (60) calendar days from the effective
      date of termination of the Contract, a copy of all maps, geological
      reports, tests results, drilling records and other technical data
      resulting from the exploration and evaluation tasks carried out by the
      INTERESTED PARTY.

            

    

    

    THIRTEEN:

    

    As from
the effective date of termination of the Contract, it will lose all validity and
effect for both parties, with the exception of the obligations established in
the previous article and in article FOURTEEN of this Contract which will remain
in force for an additional period of one (1) year.

    

    
      	
               
      

            	
              FOURTEEN:
      CONFIDENTIALITY

            

    

    

    All
knowledge or information that the TITLE HOLDER acquires with regard to the
results of the exploration conducted by the INTERESTED PARTY, methods applied,
results of analysis, metallurgical tests, location of drilling, discoveries
made, technology or inventions applied or as a consequence of any activity
carried out by the INTERESTED PARTY by virtue of this Contract, will be kept
secret by the TITLE HOLDER and deemed as confidential, unless the INTERESTED
PARTY releases the TITLE HOLDER from this obligation in writing or the
information is required from the TITLE HOLDER by state organisations, legally
constituted for that purpose.  This applies for one (1) year after the
termination of the Contract.

    

    

    

    
      
         

      

      
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    FIFTEEN:
FORCE MAJEURE

    

    None of
the parties will be held responsible for failure to fulfil their obligations
under this Contract when it is due to reasons beyond their control, including,
but not limited to; work-related conflicts, whatever their origin, and
irrespective of the validity of the claim or whether the parties are in a
position to pay it, as long as the conflict is not a consequence of
non-fulfilment of the legal or contractual obligations of the parties; events in
nature; laws, provisions, decrees or resolutions of any state authority;
judicial sentences or decisions that prevent or alter the fulfilment of the
contractual obligations or prevent, any permits or licences from being obtained
under reasonable conditions; lack of availability or insufficiency of equipment
and material in the country to carry out the tasks
prescribed in this Contract; suspension of activities to remedy or prevent the
present or future transgression of federal, provincial or municipal laws or
regulations relating to the environment; acts of war or situations caused by
insurrection or rebellion; fire; explosions; earthquakes; volcanic eruptions;
storms; flooding; droughts and other adverse climatic conditions.

    

    The
affected party shall notify the other without any delay of the act of force
majeure and the suspension of his obligations, stating the reason for such
suspension and its estimated duration. The affected party shall resume the
fulfilment of his obligations as soon as reasonably possible.

    

    SIXTEEN:
AREA OF INFLUENCE

    

    All
property, right or mining interest acquired by either of the parties during the
term of this Contract in the areas adjacent to the MINING PROPERTY will be
incorporated into the same, and consequently will be subject to the terms and
conditions established herein.

    

    SEVENTEEN:
GENERAL CLAUSES

    

    The
investments that the INTERESTED PARTY makes in fulfilment of this Contract must
be notified to the TITLE HOLDER together with the relevant supporting documents
at the address established in this Contract for the receipt of
notifications.

    

    EIGHTEEN:

    

    The
relationship between the parties will be governed by the provisions of this
Contract and subsidiarily by the Argentinean Mining Code and applicable
Argentinean legislation.

    

    Any
controversy in the application or interpretation of this Contract will be
subject to the jurisdiction of the Ordinary Courts of the City of San Salvador
de Jujuy, with any other jurisdiction or legislation being waived.

    

    NINETEEN:

    

    If either
of the parties were to fail to fulfil any obligation established in this
Contract, the party affected by such omission will notify the party in default
in writing and in a reliable manner of the said omission and the latter will not
lose the rights conferred by this Contract, unless within thirty (30) calendar
days from receipt of such notification, he has not taken all reasonable measures
to remedy his non-fulfilment.

    

    
      
         

      

      
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    If the
party in default ceases to take the relevant measures to remedy his
non-fulfilment within that period, the affected party will have the right to
demand the remedy of such non-fulfilment through the courts or by any other
means he deems appropriate, without prejudice to what is established in article
EIGHT with regard to the rescission of the Contract.

    

    TWENTY:

    

    This
contract will be to the advantage of and be binding upon the parties who sign
it, as well as their respective heirs, executors, administrators, successors and
beneficiaries.

    

    TWENTY
ONE:

    

    Either
party can freely assign all his rights and obligations arising from this
Contract to third persons and can also enter into partnership with third persons
for its fulfilment, by notifying the TITLE HOLDER in writing of the substantial
conditions of such assignment or partnership.

    

    The TITLE
HOLDER can only assign his corresponding rights and obligations with the written
consent of the INTERESTED PARTY and this consent cannot be refused without
reasonable cause.

    

    TWENTY
TWO:

    

    The
purpose of the headings or titles of this Contract is to facilitate reference to
the articles it includes but they do not affect nor limit the interpretation of
the Contract.

    

    TWENTY
THREE: NOTIFICATIONS

    

    Any
notification relating to this Contract must be made in writing and can be
delivered by hand or sent by prepaid registered mail, certified mail or by
facsimile, addressed accordingly to:

    

    The
INTERESTED PARTY: FABIO MONTANARI, Calle Independencia 219, city of San Salvador
de Jujuy, Province of Jujuy, Telephone +1 303 800 5752, or +39 347 351 8362, Fax
+39 070 7731262, E-mail fabiomontanari1@gmail.com

    

    The TITLE
HOLDER, Mr. Antonio Augustin Giulianotti, Dr. Aparicio Street No. 667, District
of Ciudad de Nieva, city of San Salvador de Jujuy, Province of Jujuy, Phone +54
(0) 388 4242722 or +54 388 581 5066 E-mail tumicul@hotmail.com

    

    Any
notification sent by facsimile will be considered to be delivered and received
on the working day after the date of remittance of the facsimile.

    

    Either
party can notify the other in writing and in a reliable manner at any time of a change
of their address and as from the effective date of delivery of such
notification, the new address specified therein will be considered as the
address of that party for notification purposes.

    

    
      
         

      

      
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    As proof
of acceptance, the parties sign four originals for the same purpose and to one
effect, in the city of
San Salvador de Jujuy, Province of Jujuy, Republic of Argentina on 8th
February 2010.

    

    

    

    Fabio
Montanari                                                                                     Antonio
Augustin Giulianotti

    

    /s/ Fabio
Montanari                                                                                                /s/ Antonio Augustin
Giulianotti

    

    

    

    

    

    
      	
               
      

            	
              Book
      152, folio 57, record 113

            

    

    
      	
               
      

            	
              SS
      de Jujuy, 08/02/2010.-

            

    

    
      	
               
      

            	
              Pages;
      00697597 to 00697598

            

    

    

    

     THREE
NOTARY PUBLIC STAMPS: CERTIFICATION OF SIGNATURES

    

    

    
      
         

      

      
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    NOTARIAL
RECORD

    NOTARY’S
STAMP                                                                                                     NATIONAL
STAMP

    Law
4884/96

    CERTIFICATION
OF SIGNATURES

    A
00697597

    

    S. S. de
Jujuy, 8th
February 2010

    

    The
person who has signed and placed his stamp at the foot of this document, Notary
Public CESAR RICARDO FRIAS, National Notary Public, Holder of Registration No.36
with domicile in the city of San Salvador de Jujuy.

    

    DOES
HEREBY CERTIFY; FIRST: THAT the signature(s) that appear(s) in this Public Deed
attached to this sheet (EXPLORATION CONTRACT WITH OPTION TO
PURCHASE)

    is/are
placed in this deed, in his presence, by the person(s) whose name(s) and
identity document(s) are mentioned as follows:

    

    FABIO
MONTANARI, with Passport of the European Union, Republic of Italy, No. E 571059
and ANTONIO AUGUSTIN GIULIANOTTI, N.I.D. No 7379817; who verify their identity
in accordance with Article No. 1002, paragraph c, of the Civil Code, amended by
Law No. 26240; I certify

    

    SECOND:
That said person(s) is/are acting in their own right.

    

    THIRD:
That the corresponding requirement(s) and signature(s) have been recorded
simultaneously in the Book of Requirements No. 152 on sheet 57 Entry 113, with
stamp(s) No. 00481779-00481780 being attached to said instrument and to such
book.

    

    

    NOTARY
PUBLIC’S STAMP AND SIGNATURE

    

    
      
         

      

      
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      Exhibit
10.1

      IPG
PHOTONICS CORPORATION

      NON-EMPLOYEE DIRECTORS STOCK
PLAN

      (As amended April 2,
2010)

       

      IPG
Photonics Corporation has established this IPG Photonics Corporation
Non-Employee Directors Stock Plan to attract and retain Non-Employee Directors
of IPG Photonics Corporation.

       

      1. DEFINITIONS

       

      The
following terms shall have the following meanings unless the context indicates
otherwise:

       

      
        	
                1.1.  

              	
                "Award" shall mean a
      Stock Option, a SAR, a Stock Award, a Stock Unit, or a Cash
      Award.

              

      

       

      
        	
                1.2.  

              	
                "Award Agreement" shall
      mean a written agreement between the Company and a Participant that
      establishes the terms, conditions, restrictions and/or limitations
      applicable to an Award, in addition to those established by the Plan and
      by the Board.

              

      

       

      
        	
                1.3.  

              	
                "Board" shall mean the
      Board of Directors of the Company.

              

      

       

      
        	
                1.4.  

              	
                "Cause" shall have the
      meaning set forth in any written agreement between the Participant and the
      Company.  If there is no written agreement between the
      Participant and the Company, or if such agreement does not define "Cause,"
      then "Cause" shall have the meaning specified in the Award Agreement;
      provided, that if the Award Agreement does not so specify, "Cause" shall
      mean, as determined by the Board in its sole discretion, the
      Participant:  (i) engages in conduct that cause financial or
      reputational injury to the Company; (ii) engages in any act of dishonesty
      or misconduct that results in damage to the Company, or its business or
      reputation or that the Board determines to adversely affect the value,
      reliability or performance of the Participant to the Company; (iii)
      refuses or fails to substantially comply with the human resources rules,
      policies, directions and/or restrictions relating to harassment and/or
      discrimination, or with compliance or risk management rules, policies,
      directions and/or restrictions of the Company; or (iv) fails to cooperate
      with the Company in any internal investigation or administrative,
      regulatory or judicial proceeding.  If any part of the
      definition of Cause set forth in clauses (i) through (iv) above is deemed
      applicable to a Participant, this shall not preclude or prevent the
      reliance by the Company or the Board on any other part of the preceding
      sentence that also may be applicable.  An act or omission is
      "willful" for this purpose if it was knowingly done, or knowingly omitted
      to be done, by the Participant not in good faith and without reasonable
      belief that the act or omission was in the best interest of the
      Company.

              

      

       

      
        	
                1.5.  

              	
                "Change in Control of the
      Company" shall mean the occurrence of any one or more of the
      following:

              

      

       

      
        	
                (a)  

              	
                Any
      "person" (as such term is defined in Section 3(a)(9) of the Exchange Act
      and as used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act),
      including a "group" (as defined in Section 13(d)(3) of the Exchange Act),
      other than (i) the Company, (ii) any wholly-owned subsidiary of the
      Company, or (iii) any employee benefit plan (or related trust) sponsored
      or maintained by the Company or any Affiliate, becomes a "beneficial
      owner" (as defined in Rule 13d-3 under the Exchange Act), directly or
      indirectly, of securities of the Company having fifty percent (50%) or
      more of the combined voting power of the then-outstanding securities of
      the Company that may be cast for the election of directors of the Company
      (other than as a result of an issuance of securities initiated by the
      Company in the ordinary course of business) (the "Company Voting
      Securities"); provided, however, that the event described in this
      paragraph (a) shall not be deemed to be a Change in Control by virtue of
      any underwriter temporarily holding securities pursuant to an offering of
      such securities;

              

      

       

      
        	
                (b)  

              	
                During
      any period of two consecutive years, individuals who at the beginning of
      any such period constitute the Board (the "Incumbent Directors") cease for
      any reason to constitute at least a majority of the Board, unless the
      election, or the nomination for election by the stockholders of the
      Company, of each new director of the Company during such period was
      approved by a vote of at least two-thirds of the Incumbent Directors then
      still in office;

              

      

       

      
        	
                (c)  

              	
                As
      the result of, or in connection with, any cash tender or exchange offer,
      merger or other business combination, sale of all or substantially all of
      the assets or contested election, or any combination of the foregoing
      transactions, less than a majority of the combined voting power of the
      then-outstanding securities of the Company or any successor corporation or
      entity entitled to vote generally in the election of the directors of the
      Company or such other corporation or entity after such transaction is held
      in the aggregate by the holders of the securities of the Company entitled
      to vote generally in the election of directors of the Company immediately
      prior to such transaction; or

              

      

       

      
        	
                (d)  

              	
                The
      shareholders of the Company approve a plan of complete liquidation of the
      Company.

              

      

       

      Notwithstanding
the foregoing, a Change in Control shall not be deemed to occur solely because
any person acquires beneficial ownership of more than fifty percent (50%) of the
Company Voting Securities as a result of the acquisition of Company Voting
Securities by the Company which reduces the number of Company Voting Securities
outstanding; provided, however, that if after such acquisition by the Company
such person becomes the beneficial owner of additional Company Voting Securities
that increases the percentage of outstanding Company Voting Securities
beneficially owned by such person, a Change in Control transaction shall then
occur.

       

      
        	
                 
      

              	
                Notwithstanding
      the foregoing, to the extent necessary to avoid subjecting Participants to
      interest and additional tax under Section 409A of the Code, no "Change in
      Control" will be deemed to occur unless and until paragraph (a), (b), (c)
      or (d), above, and the preceding paragraph are satisfied and Section
      409A(a)(2)(A)(v) of the Code is
satisfied.

              

      

       

      
        	
                1.6.  

              	
                "Code" shall mean the
      Internal Revenue Code of 1986, as amended from time to
    time.

              

      

       

      
        	
                1.7.  

              	
                "Committee" shall mean
      (i) the Board or (ii) a committee or subcommittee of the Board appointed
      by the Board from among its members.  The Committee may be the
      Board's Compensation Committee.  Unless the Board determines
      otherwise, the Committee shall be comprised solely of not less than two
      members who each shall qualify as a "Non-Employee Director" within the
      meaning of Rule 16b-3(b)(3) (or any successor rule) under the Exchange
      Act.

              

      

       

      
        	
                1.8.  

              	
                "Common Stock" shall
      mean the voting, common stock, $0.0001 par value per share, of the
      Company.

              

      

       

      
        	
                1.9.  

              	
                "Company" shall mean
      IPG Photonics Corporation, a Delaware
  corporation.

              

      

       

      
        	
                1.10.  

              	
                "Disability" means the
      total and permanent disability of a Participant (incurred while in the
      active service of the Company) based on proof satisfactory to the
      Board.  Total and permanent disability shall be as defined in
      the Company’s long-term disability plan, if any, or as otherwise provided
      by the Company.

              

      

       

      Notwithstanding
the foregoing, to the extent necessary to avoid subjecting an
individual  to interest and additional tax under Section 409A of the
Code, such individual shall not be deemed to have a Disability unless and until
Section 409A(a)(2)(C) is satisfied.

       

      
        	
                1.11.  

              	
                "Dividend Equivalent
      Right" shall mean the right to receive an amount equal to the
      amount of any dividend paid with respect to a share of Common Stock
      multiplied by the number of shares of Common Stock underlying or with
      respect to a Stock Option, a SAR, or a Stock Unit, and which shall be
      payable in cash, in Common Stock, or in the form of Stock Units, or a
      combination of any or all of the
foregoing.

              

      

       

      
        	
                1.12.  

              	
                "Effective Date" shall
      mean the date on which the Plan is adopted by the
  Board.

              

      

       

      
        	
                1.13.  

              	
                "Exchange Act" shall
      mean the Securities Exchange Act of 1934, as amended from time to time,
      including applicable regulations
thereunder.

              

      

       

      
        	
                1.14.  

              	
                “Fair Market Value of the
      Common Stock" shall mean:

              

      

       

      
        	
                (a)  

              	
                if
      the Common Stock is readily tradeable on a national securities exchange or
      other market system, the closing price of the Common Stock on the date of
      calculation (or on the last preceding trading date if Common Stock was not
      traded on such date), or

              

      

       

      
        	
                (b)  

              	
                if
      the Common Stock is not readily tradeable on a national securities
      exchange or other market system, the value as determined in good faith by
      the Board.

                 

                 

                 

                 

                 

                 

                 

              

      

       

      
        
          

        

      

      
        
           

           

        

      

      
        	
                1.15.  

              	
                "Non-Employee Director"
      shall mean a member of the Board who is not an employee of the Company or
      any of its affiliates.

              

      

       

      
        	
                1.16.  

              	
                "Nonqualified Stock
      Option" shall mean a Stock Option that does not qualify as an
      "incentive stock option" as such term is used in Code Section
      422.

              

      

       

      
        	
                1.17.  

              	
                “Nonvoting Stock” shall
      mean the capital stock of any class or classes having no voting power to
      elect the directors of a
corporation.

              

      

       

      
        	
                1.18.  

              	
                "Participant" shall
      mean any Non-Employee Director to whom an Award has been granted by the
      Board under the Plan.

              

      

       

      
        	
                1.19.  

              	
                "Plan" shall mean the
      IPG Photonics Corporation Non-Employee Directors Stock Plan, as
      amended.

              

      

       

      
        	
                1.20.  

              	
                "Recapitalization" shall
      mean any stock split, stock dividend, recapitalization, combination of
      shares, exchange of shares or other change affecting the Company’s
      outstanding shares of capital stock as a class without the Company’s
      receipt of consideration.

              

      

       

      
        	
                1.21.  

              	
                "Reorganization" shall
      mean any of the following:  (a) a merger or consolidation
      in which the Company is not the surviving entity; (b) a sale,
      transfer or other disposition of all or substantially all of the Company’s
      assets; (c) a reverse merger in which the Company is the surviving
      entity but in which the Company’s outstanding voting securities are
      transferred in whole or in part to a person or persons different from the
      persons holding those securities immediately prior to the merger; or
      (d) any transaction effected primarily to change the state in which
      the Company is incorporated or to create a holding company
      structure.

              

      

       

      
        	
                1.22.  

              	
                "Retirement" means
      termination of Service (other than removal for Cause, death or Disability)
      after completion of eight or more years of Service as a director, only if
      the Non-Employee Director shall provide Services until the end of a full
      one-year term (which for this purpose is until the next annual meeting of
      shareholders) or, in the event of a classified board of directors in which
      a class of directors is elected by shareholders and where a retiring
      director may be serving a multi-year term, until the end of  a
      full year of such term (which for this purpose is until the next annual
      meeting of shareholders).

              

      

       

      
        	
                1.23.  

              	
                "SAR" shall mean a
      grant by the Board to a Participant of a stock appreciation right as
      described in Section 7 below.

              

      

       

      
        	
                1.24.  

              	
                "Service" shall mean
      the provision of services to the Company as a member of the Board of
      Directors of the Company.

              

      

       

      
        	
                1.25.  

              	
                "Stock" shall mean the
      shares of capital stock of the
Company.

              

      

       

      
        	
                1.26.  

              	
                "Stock Award" shall
      mean a grant by the Board to a Participant of an Award of Common Stock as
      described in Section 8.1 below.

              

      

       

      
        	
                1.27.  

              	
                "Stock Option" shall
      mean a grant by the Board to a Participant of an option to purchase Common
      Stock as described in Section 6
below.

              

      

       

      
        	
                1.28.  

              	
                "Stock Unit" shall mean
      a grant by the Board to a Participant of an Award as described in Section
      8.2 below.

              

      

       

      
        	
                1.29.  

              	
                "Treasury Regulations"
      shall mean the regulations promulgated under the Code by the United
      States Department of the Treasury, as amended from time to
      time.

              

      

       

      
        	
                1.30.  

              	
                "Vest" shall
      mean:

              

      

       

      
        	
                (a)  

              	
                with
      respect to Stock Options and SARs, when the Stock Option or SAR (or a
      portion of such Stock Option or SAR) first becomes exercisable and remains
      exercisable subject to the terms and conditions of such Stock Option or
      SAR; or

              

      

       

      
        	
                (b)  

              	
                with
      respect to Awards other than Stock Options and SARs, when the Participant
      has:

              

      

       

      
        	
                (i)  

              	
                an
      unrestricted right, title and interest to receive the compensation
      (whether payable in Common Stock, cash or a combination of both)
      attributable to an Award (or a portion of such Award) or to otherwise
      enjoy the benefits underlying such Award;
and

              

      

       

      
        	
                (ii)  

              	
                a
      right to transfer an Award subject to no Company-imposed restrictions or
      limitations other than restrictions and/or limitations imposed by Section
      10 below.

              

      

       

      
        	
                1.31.  

              	
                "Vesting Date" shall
      mean the date or dates on which an Award
Vests.

              

      

       

      
        	
                1.32.  

              	
                "Voting Stock" shall
      mean the capital stock of any class or classes having general voting power
      under ordinary circumstances, in the absence of contingencies, to elect
      the directors of a corporation.

              

      

       

      2. TERM OF PLAN.  The
Plan shall be effective as of the Effective Date.  The Plan shall
terminate on the 10th anniversary of the Effective Date, unless sooner
terminated by the Board under Section 13.1 below.

       

      3. ELIGIBILITY
AND PARTICIPATION

       

      
        	
                3.1.  

              	
                Eligibility.  All
      Non-Employee Directors shall be eligible to participate in the Plan and to
      receive Awards.

              

      

       

      
        	
                3.2.  

              	
                Participation.  Participants
      shall consist of such Non-Employee Directors as the Board in its sole
      discretion designates to receive Awards under the
  Plan.

              

      

       

      4. ADMINISTRATION

       

      
        	
                4.1.  

              	
                Responsibility.  The
      Board shall have the responsibility, in its sole discretion, to control,
      operate, manage and administer the Plan in accordance with its
      terms.

              

      

       

      
        	
                4.2.  

              	
                Award
      Agreement.  Each Award granted under the Plan shall be
      evidenced by an Award Agreement; provided, however, that
      in the event of any conflict between a provision of the Plan and any
      provision of an Award Agreement, the provision of the Plan shall
      prevail.

              

      

       

      
        	
                4.3.  

              	
                Authority of the
      Board.  The Board shall have all the discretionary
      authority that may be necessary or desirable to enable it to discharge its
      responsibilities with respect to the
Plan.

              

      

       

      
        	
                4.4.  

              	
                Delegation of
      Authority.  The Board may delegate to the Committee all
      or any part of its authority under the Plan.  To the extent of
      any such delegation, references in the Plan to the Board will be deemed to
      be references to the Committee.

              

      

       

      
        	
                4.5.  

              	
                Determinations and
      Interpretations by the Board.  All determinations and
      interpretations made by the Board shall be binding and conclusive on all
      Participants and their heirs, successors, and legal
      representatives.

              

      

       

      
        	
                4.6.  

              	
                Liability.  No
      member of the Board, no member of the Committee and no employee of the
      Company shall be liable for (a) any act or failure to act hereunder,
      except in circumstances involving his or her gross negligence or willful
      misconduct, or (b) any act or failure to act hereunder by any other member
      or employee or by any agent to whom duties in connection with the
      administration of the Plan have been delegated.

                 

                 

                 

                 

                 

                 

                 

              

      

       

      
        
          2

        

        
           

          
            

          

        

        
           

        

      

      
        	
                4.7.  

              	
                Indemnification.  Each
      person who is or has been a member of the Committee or the Board, and any
      individual or individuals to whom the Board has delegated authority under
      this Section 4, will be indemnified and held harmless by the Company from
      and against any loss, cost, liability, or expense that may be imposed upon
      or reasonably incurred by him or her in connection with or as a result of
      any claim, action, suit or proceeding to which he or she may be a party or
      in which he or she may be involved by reason of any action taken, or
      failure to act with respect to their duties on behalf of, under the Plan,
      except in circumstances involving such person's gross negligence or
      willful misconduct.  Each such person will also be indemnified
      and held harmless by the Company from and against any and all amounts paid
      by him or her in a settlement approved by the Company, or paid by him or
      her in satisfaction of any judgment, of or in a claim, action, suit or
      proceeding against him or her and described in the previous sentence, so
      long as he or she gives the Company an opportunity, at its own expense, to
      handle and defend the claim, action, suit or proceeding before he or she
      undertakes to handle and defend it.  The foregoing right of
      indemnification will not be exclusive of or limit any other rights of
      indemnification to which a person who is or has been a member of the
      Committee or the Board may be entitled under the Articles of Incorporation
      or By-Laws of the Company, as a matter of law, agreement or otherwise,
      including but not limited to any indemnification agreement between an
      indemnified person hereunder and the Company as it may be amended from
      time to time, or any power that the Company may have to indemnify him or
      her or hold him or her harmless.  Any person entitled to
      indemnification under this Section shall have the right to elect to be
      indemnified under this Section or any other arrangement or agreement
      pursuant to which such person is entitled to indemnification from the
      Company, or any combination
thereof.

              

      

       

      5. SHARES
SUBJECT TO PLAN

       

      
        	
                5.1.  

              	
                Available
      Shares.  At any given time, the maximum number of shares
      of Common Stock that may be issued or transferred to Participants under
      the Plan will be 0.75% of the number of Company shares outstanding (on a
      fully-diluted basis) at the end of the plan year preceding the
      then-current plan year, or on January 1, 2006, whichever is greater,
      subject to adjustments made in accordance with Section 5.2
      below.  Notwithstanding the foregoing, the maximum number of
      shares of Common Stock that may be issued or transferred to Participants
      under the Plan shall be 486,666 shares.   Shares of Common
      Stock issued or transferred under the Plan may be either authorized or
      unissued shares, shares of issued stock held in the Company's treasury, or
      a combination of both, at the discretion of the Company.  Any
      shares of Common Stock underlying an Award which terminate by reason of
      expiration, forfeiture, cancellation or otherwise without the issuance of
      such shares shall again be available under the Plan.  Awards
      that are payable only in cash are not subject to this Section
      5.1.

              

      

       

      
        	
                5.2.  

              	
                Adjustment to
      Shares.  If there is any change in the Common Stock of
      the Company, through merger, consolidation, Reorganization,
      Recapitalization, stock dividend, stock split, reverse stock split,
      split-up, split-off, spin-off, combination of shares, exchange of shares,
      dividend in kind or other like change in capital structure or distribution
      (other than normal cash dividends) to stockholders of the Company, an
      adjustment shall be made to each outstanding Award so that each such Award
      shall thereafter be with respect to or exercisable for such securities,
      cash and/or other property as would have been received in respect of the
      Common Stock subject to such Award had such Award been paid, distributed
      or exercised in full immediately prior to such change or
      distribution.  Such adjustment shall be made successively each
      time any such change or distribution shall occur.  In addition,
      in the event of any such change or distribution, in order to prevent
      dilution or enlargement of Participants' rights under the Plan, the Board
      shall have the authority to adjust, in an equitable manner, the number and
      kind of shares that may be issued under the Plan, the number and kind of
      shares subject to outstanding Awards, the exercise price applicable to
      outstanding Stock Options, and the Fair Market Value of the Common Stock
      and other value determinations applicable to outstanding
      Awards.  Appropriate adjustments may also be made by the Board
      in the terms of any Awards granted under the Plan to reflect such changes
      or distributions and to modify any other terms of outstanding Awards on an
      equitable basis, including modifications of performance goals and changes
      in the length of performance periods. In addition, the Board is authorized
      to make adjustments to the terms and conditions of, and the criteria
      included in, Awards in recognition of unusual or nonrecurring events
      affecting the Company or the financial statements of the Company, or in
      response to changes in applicable laws, regulations, or accounting
      principles.

              

      

       

      6. STOCK
OPTIONS

       

      
        	
                6.1.  

              	
                In
      General.  The Board may, in its sole discretion, grant
      Stock Options to Non-Employee Directors on or after the Effective
      Date.  The Stock Options so granted shall be Nonqualified Stock
      Options.  The Board shall, in its sole discretion, determine the
      Non-Employee Directors who will receive Stock Options and the number of
      shares of Common Stock underlying each Stock Option.  Each Stock
      Option shall be subject to such terms and conditions consistent with the
      Plan as the Board may impose from time to time.  In addition,
      each Stock Option shall be subject to the terms and conditions set forth
      in Sections 6.2 through 6.6 below.

              

      

       

      
        	
                6.2.  

              	
                Exercise
      Price.  The Board shall specify the exercise price of
      each Stock Option in the Award Agreement which exercise price shall not be
      less than 100 percent of the Fair Market Value of the Common Stock on the
      date of grant.

              

      

       

      
        	
                6.3.  

              	
                Term of Stock
      Option.  The Board shall specify the term of each Stock
      Option in the Award Agreement; provided, however, that
      no Stock Option shall be exercisable after the 10th anniversary of the
      date of grant of such Stock Option.  Each Stock Option shall
      terminate at such earlier times and upon such conditions or circumstances
      as the Board shall, in its sole discretion, set forth in the Award
      Agreement on the date of grant.

              

      

       

      
        	
                6.4.  

              	
                Vesting
      Date.  The Board shall specify in the Award Agreement the
      Vesting Date for each Stock Option.  The Board may grant Stock
      Options that are Vested, either in whole or in part, on the date of
      grant.  If the Board fails to specify a Vesting Date in the
      Award Agreement, 25 percent of such Stock Option shall become exercisable
      on each of the first four one-year anniversaries of the date of grant and
      shall remain exercisable following such anniversary date until the Stock
      Option expires in accordance with its terms under the Award Agreement or
      under the terms of the Plan.  The Vesting of a Stock Option may
      be subject to such other terms and conditions as shall be determined by
      the Board.

              

      

       

      
        	
                6.5.  

              	
                Exercise of Stock
      Options.  The Stock Option exercise price may be paid in
      cash or, in the sole discretion of the Board, by delivery to the Company
      of shares of Common Stock then owned by the Participant, or by the
      Company's withholding a portion of the shares of Common Stock for which
      the Stock Option is exercisable, or by a combination of these
      methods.  If the Common Stock is readily tradeable on a national
      securities exchange or other market system, payment may also be made by
      delivering a properly executed exercise notice to the Company and
      delivering a copy of irrevocable instructions to a broker directing the
      broker to promptly deliver to the Company the amount of sale or loan
      proceeds to pay the exercise price.  To facilitate the
      foregoing, the Company may enter into agreements for coordinated
      procedures with one or more brokerage firms.  The Board may
      prescribe any other method of paying the exercise price that it determines
      to be consistent with applicable law and the purpose of the Plan,
      including, without limitation, in lieu of the delivery to the Company of
      shares of Common Stock then owned by the Participant, providing the
      Company with a notarized statement attesting to the number of shares owned
      by the Participant, where, upon verification by the Company, the Company
      would issue to the Participant only the number of incremental shares to
      which the Participant is entitled upon exercise of the Stock
      Option.  In determining which methods a Participant may utilize
      to pay the exercise price, the Board may consider such factors as it
      determines are appropriate.

              

      

       

      
        	
                6.6.  

              	
                Additional Terms and
      Conditions.  The Board may, by way of the Award
      Agreements or otherwise, establish such other terms, conditions,
      restrictions and/or limitations, if any, of any Stock Option, provided
      they are not inconsistent with the
Plan.

              

      

       

      7. SARS

       

      
        	
                7.1.  

              	
                In
      General.  The Board may, in its sole discretion, grant
      SARs to Non-Employee Directors.  A SAR is a right to receive a
      payment in cash, Common Stock or a combination of both, in an amount equal
      to the excess of (x) the Fair Market Value of the Common Stock, or other
      specified valuation, of a specified number of shares of Common Stock on
      the date the SAR is exercised over (y) the Fair Market Value of the Common
      Stock, or other specified valuation (which shall be no less than the Fair
      Market Value of the Common Stock), of such shares of Common Stock on the
      date the SAR is granted, all as determined by the Board; provided, however, that
      if a SAR is granted retroactively in tandem with or in substitution for a
      Stock Option, the designated Fair Market Value of the Common Stock in the
      Award Agreement may be the Fair Market Value of the Common Stock on the
      date such Stock Option was granted.  Each SAR shall be subject
      to such terms and conditions, including, but not limited to, a provision
      that automatically converts a SAR into a Stock Option on a conversion date
      specified at the time of grant, as the Board shall impose from time to
      time in its sole discretion and subject to the terms of the
      Plan.

              

      

       

       

       

       

       

       

      
        
          3

        

        
           

          
            

          

        

        
           

        

      

       

      8. STOCK
AWARDS AND STOCK UNITS

       

      
        	
                8.1.  

              	
                Stock
      Awards.  The Board may, in its sole discretion, grant
      Stock Awards to Non-Employee Directors as additional compensation or in
      lieu of other compensation for services to the Company.  A Stock
      Award shall consist of shares of Common Stock which shall be subject to
      such terms and conditions as the Board in its sole discretion determines
      appropriate including, without limitation, restrictions on the sale or
      other disposition of such shares and the Vesting Date with respect to such
      shares.  The Board may require the Participant to deliver a duly
      signed stock power, endorsed in blank, relating to the Common Stock
      covered by such Stock Award and/or that the stock certificates evidencing
      such shares be held in custody or bear restrictive legends until the
      restrictions thereon shall have lapsed.  With respect to shares
      of Common Stock subject to a Stock Award, the Participant shall have all
      of the rights of a holder of shares of Common Stock, including the right
      to receive dividends and to vote the shares, unless the Board determines
      otherwise on the date of grant.

              

      

       

      
        	
                8.2.  

              	
                Stock
      Units.  The Board may, in its sole discretion, grant
      Stock Units to Non-Employee Directors as additional compensation or in
      lieu of other compensation for services to the Company.  A Stock
      Unit is a hypothetical share of Common Stock represented by a notional
      account established and maintained (or caused to be established or
      maintained) by the Company for such Participant who receives a grant of
      Stock Units.  Stock Units shall be subject to such terms and
      conditions as the Board, in its sole discretion, determines appropriate
      including, without limitation, determinations of the Vesting Date with
      respect to such Stock Units and the criteria for the Vesting of such Stock
      Units.  Subject to Section 8.3, a Stock Unit granted by the
      Board shall provide for payment in cash or shares of Common Stock at such
      time or times as the Award Agreement shall specify.  The Board
      shall determine whether a Participant who has been granted a Stock Unit
      shall also be entitled to a Dividend Equivalent
  Right.

              

      

       

      
        	
                8.3.  

              	
                Payout of Stock
      Units.  Subject to a Participant's election to defer in
      accordance with Section 13.3 below, upon the Vesting of a Stock Unit, the
      shares of Common Stock representing the Stock Unit shall be distributed to
      the Participant, unless the Board, in its sole discretion, provides for
      the payment of the Stock Unit in cash (or partly in cash and partly in
      shares of Common Stock) equal to the value of the shares of Common Stock
      which would otherwise be distributed to the
  Participant.

              

      

       

      9. CHANGE
IN CONTROL

       

      
        	
                9.1.  

              	
                Accelerated
      Vesting.  Notwithstanding any other provision of this
      Plan to the contrary, if there is a Change in Control of the Company, all
      outstanding Awards shall accelerate, including, without limitation,
      acceleration of the Vesting Date and/or payout of such
    Awards.

              

      

       

      
        	
                9.2.  

              	
                Cashout.  The
      Board, in its sole discretion, may determine that, upon the occurrence of
      a Change in Control of the Company, all or a portion of certain
      outstanding Awards shall terminate within a specified number of days after
      notice to the holders, and each such holder shall receive an amount equal
      to the value of such Award on the date of the Change in Control, and with
      respect to each share of Common Stock subject to a Stock Option or SAR, an
      amount equal to the excess of the Fair Market Value of such shares of
      Common Stock immediately prior to the occurrence of such Change in Control
      of the Company over the exercise price per share of such Stock Option or
      SAR.  Such amount shall be payable in cash, in one or more kinds
      of property (including the property, if any, payable in the transaction)
      or in a combination thereof, as the Board, in its sole discretion, shall
      determine.

              

      

       

      
        	
                9.3.  

              	
                Assumption or Substitution of
      Awards.  Notwithstanding anything contained in the Plan
      to the contrary, the Board may, in its sole discretion, provide that an
      Award may be assumed by any entity which acquires control of the Company
      or may be substituted by a similar award under such entity's compensation
      plans.

              

      

       

      10. TERMINATION
OF SERVICE

       

      
        	
                10.1.  

              	
                Termination of Service Due to
      Death, Disability or Retirement.  Subject to any written
      agreement between the Company and a Participant, if a Participant's
      Service is terminated due to death, disability or
    Retirement:

              

      

       

      
        	
                (a)  

              	
                all
      non-Vested portions of Awards held by the Participant on the date of the
      Participant's death or the date of the termination of his or her Service
      for disability or Retirement, as the case may be, shall immediately become
      vested; and

              

      

       

      
        	
                (b)  

              	
                all
      Vested portions of Awards held by the Participant on the date of the
      Participant's death or the date of the termination of his or her Service
      for disability or Retirement, as the case may be, shall remain exercisable
      until the earlier of:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                the
      end of the 12-month period following the date of the Participant's death
      or the date of the termination of his or her Service for disability or
      Retirement, as the case may be, or

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                the
      date the Award would otherwise
expire.

              

      

       

      
        	
                10.2.  

              	
                Termination of Service for
      Cause.  Subject to any written agreement between the
      Company and a Participant, if a Participant's Service is terminated by the
      Company because of a removal for Cause, all Awards held by the Participant
      on the date of the termination of Service, whether Vested or non-Vested,
      shall immediately be forfeited by the Participant as of such
      date.  A Participant's Service shall be deemed to have removed
      for Cause if, after the Participant's Service has terminated, facts and
      circumstances are discovered that would have justified a removal for
      Cause.

              

      

       

      
        	
                10.3.  

              	
                Other Terminations of
      Service.  Subject to any written agreement between the
      Company and a Participant, if a Participant's Service is terminated for
      any reason other than for Cause, death, disability or
      Retirement:

              

      

       

      
        	
                (a)  

              	
                all
      non-Vested portions of Awards held by the Participant on the date of the
      termination of his or her Service shall immediately be forfeited by such
      Participant as of such date; and

              

      

       

      
        	
                (b)  

              	
                all
      Vested portions of Awards held by the Participant on the date of the
      termination of his or her Service shall remain exercisable until the
      earlier of (i) the end of the 90-day period following the date of the
      termination of the Participant's Service or (ii) the date the Award would
      otherwise expire.

              

      

       

      11. TAXES

       

      
        	
                11.1.  

              	
                Withholding
      Taxes.  The Company will have the power and the right to
      deduct or withhold, or require a Participant to remit to the Company, an
      amount sufficient to satisfy federal, state, and local taxes, domestic or
      foreign, required by law or regulation to be withheld with respect to any
      taxable event arising under the
Plan.

              

      

       

      
        	
                11.2.  

              	
                Use of Common Stock to Satisfy
      Withholding Obligation.  With respect to withholding
      required upon the exercise of Stock Options or SARs, upon the lapse of
      restrictions on a Stock Award, or upon any other taxable event arising as
      a result of Awards granted hereunder, the Company may satisfy the minimum
      withholding requirement for supplemental wages, in whole or in part, by
      withholding shares of Stock having a Fair Market Value (determined on the
      date the Participant recognizes taxable income on the Award) equal to the
      minimum withholding tax required to be collected on the
      transaction.  The Participant may elect, subject to the approval
      of the Board, to deliver the necessary funds to satisfy the withholding
      obligation to the Company, in which case there will be no reduction in the
      shares of Common Stock otherwise distributable to the
      Participant.

              

      

       

       

       

       

       

      
        
          4

        

        
           

          
            

          

        

        
           

        

      

       

      12. AMENDMENT
AND TERMINATION

       

      
        	
                12.1.  

              	
                Termination of
      Plan.  The Board may suspend or terminate the Plan at any
      time with or without prior notice; provided, however, that
      no action authorized by this Section 12.1 shall reduce the amount of any
      outstanding Award or change the terms and conditions thereof without the
      Participants' consent.

              

      

       

      
        	
                12.2.  

              	
                Amendment of
      Plan.  The Board may amend the Plan at any time with or
      without prior notice; provided, however, that
      no action authorized by this Section 12.2 shall reduce the amount of any
      outstanding Award or change the terms and conditions thereof without the
      Participants' consent.  No amendment of the Plan shall, without
      the approval of the stockholders of the
Company:

              

      

       

      
        	
                (a)  

              	
                increase
      the total number of shares which may be issued under the Plan by amending
      the formula and/or limit contained in Section 5.1 hereof;
    or

              

      

       

      
        	
                (b)  

              	
                modify
      the requirements as to eligibility for Awards under the
    Plan.

              

      

       

      In
addition, the Plan shall not be amended without the approval of such amendment
by the Company's stockholders if such amendment is required under the rules and
regulations of the stock exchange or national market system on which the Common
Stock is listed.

       

      
        	
                12.3.  

              	
                Amendment or Cancellation of
      Award Agreements.  The Board may amend or modify any
      Award Agreement at any time by mutual agreement between the Company and
      the Participant or such other persons as may then have an interest
      therein.  In addition, by mutual agreement between the Company
      and a Participant or such other persons as may then have an interest
      therein, Awards may be granted to a Non-Employee Director in substitution
      and exchange for, and in cancellation of, any Awards previously granted to
      such Non-Employee Director under the Plan, or any award previously granted
      to such Non-Employee Director under any other present or future plan of
      the Company or any present or future plan of an entity which (i) is
      purchased by the Company, (ii) purchases the Company, or (iii) merges into
      or with the Company.

              

      

       

      13. MISCELLANEOUS

       

      
        	
                13.1.  

              	
                Other
      Provisions.  Awards granted under the Plan may also be
      subject to such other provisions (whether or not applicable to an Award
      granted to any other Participant) as the Company determines on the date of
      grant to be appropriate, including, without limitation, for the forfeiture
      of, or restrictions on resale or other disposition of, Common Stock
      acquired under any Stock Option, for the acceleration of Vesting of Awards
      in the event of a Change in Control of the Company, for the payment of the
      value of Awards to Participants in the event of a Change in Control of the
      Company, or to comply with federal and state securities
    laws.

              

      

       

      
        	
                13.2.  

              	
                Transferability.  Each
      Award granted under the Plan to a Participant shall not be transferable
      otherwise than by will or the laws of descent and distribution, and Stock
      Options and SARs shall be exercisable, during the Participant's lifetime,
      only by the Participant.  In the event of the death of a
      Participant, each Stock Option or SAR theretofore granted to him or her
      shall be exercisable during such period after his or her death as the
      Board shall, in its sole discretion, set forth in the Award Agreement on
      the date of grant and then only by the executor or administrator of the
      estate of the deceased Participant or the person or persons to whom the
      deceased Participant's rights under the Stock Option or SAR shall pass by
      will or the laws of descent and distribution.  Notwithstanding
      the foregoing, the Board, in its sole discretion, may permit the
      transferability of a Stock Option by a Participant solely to members of
      the Participant's immediate family or trusts or family partnerships or
      other similar entities for the benefit of such persons, and subject to
      such terms, conditions, restrictions and/or limitations, if any, as the
      Board may establish and include in the Award
  Agreement.

              

      

       

      
        	
                13.3.  

              	
                Election to Defer Compensation
      Attributable to Award.  The Board may, in its sole
      discretion and subject to Code Section 409A, allow a Participant to elect
      to defer the receipt of any compensation attributable to an Award under
      guidelines and procedures to be established by the Board after taking into
      account the advice of the Company's tax
counsel.

              

      

       

      
        	
                13.4.  

              	
                Listing of Shares and Related
      Matters.  If at any time the Board shall determine that
      the listing, registration or qualification of the shares of Common Stock
      subject to an Award on any securities exchange or under any applicable
      law, or the consent or approval of any governmental regulatory authority,
      is necessary or desirable as a condition of, or in connection with, the
      granting of an Award or the issuance of shares of Common Stock thereunder,
      such Award may not be exercised, distributed or paid out, as the case may
      be, in whole or in part, unless such listing, registration, qualification,
      consent or approval shall have been effected or obtained free of any
      conditions not acceptable to the
Board.

              

      

       

      
        	
                13.5.  

              	
                No Right to Continued Service
      or to Grants.  A Participant's rights, if any, to
      continue to serve the Company as a director shall not be enlarged or
      otherwise affected by his or her designation as a Participant under the
      Plan.  The adoption of the Plan shall not be deemed to give any
      Non-Employee Director or any other individual any right to be selected as
      a Participant or to be granted an
Award.

              

      

       

      
        	
                13.6.  

              	
                Governing
      Law.  The Plan, all Awards granted hereunder, and all
      actions taken in connection herewith shall be governed by and construed in
      accordance with the laws of the State of Delaware without reference to
      principles of conflict of laws, except as superseded by applicable federal
      law.  Participants and the Company each submit and consent to
      the jurisdiction of the courts in the Commonwealth of Massachusetts,
      County of Worcester, including the Federal Courts located therein, should
      Federal jurisdiction requirements exist in any action brought to enforce
      (or otherwise relating to) this Plan or an Award
  Agreement.

              

      

       

      
        	
                13.7.  

              	
                Other
      Benefits.  No Award granted under the Plan shall be
      considered compensation for purposes of computing benefits under any
      retirement plan of the Company nor affect any benefits or compensation
      under any other benefit or compensation plan of the Company, now or
      subsequently in effect.

              

      

       

      
        	
                13.8.  

              	
                No Fractional
      Shares.  No fractional shares of Common Stock shall be
      issued or delivered pursuant to the Plan or any Award.  The
      Board shall determine whether cash, Common Stock, Stock Options, or other
      property shall be issued or paid in lieu of fractional shares or whether
      such fractional shares or any rights thereto shall be forfeited or
      otherwise eliminated.

              

      

       

      
        	
                13.9.  

              	
                Compliance With Code Section
      409A.  Any provision of the Plan that becomes subject to
      Code Section 409A, will be interpreted and applied consistent with that
      Section and the applicable Treasury Regulations.

                 

                 

                 

                 

              

      

       

      
        
          
             

          

          5

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