Document:

<PAGE>
                                                                   EXHIBIT 10.15

                                                      BIODELIVERY SCIENCES, INC.

               Wilmington, North Carolina - Tel. 910.509.4700 - Fax 910.509.4713
                  Raleigh, North Carolina - Tel. 919.465.6000 - Fax 919.469.4510
             Coppermill Lock, Harefield, Middlesex UK - Tel. 011.44.1895.829.202
                                           Paris, France - Tel. 011.331.48016868
                                          Madrid, Spain - Tel. 011.34.91.7351383
<PAGE>
                           BIODELIVERY SCIENCES INC.

Date:          23 April 2001

Revised:       9 May 2001

Submitted to:  Chris Chapman, MD
               President
               Chapman Pharmaceuticals
               800 Falls Lake Drive
               Mitchellville, MD 20721
               Telephone:     (301)324-1840
               Fax:           (301)324-1615

By:            W. James Alexander, MD, MPH
               Chief Medical and Regulatory Officer
               PharmaResearch Corporation
               4000 Aerial Center Parkway
               Morrisville, NC 27560
               Telephone:     (919)465-6006
               Fax:           (919)469-4547

BIODELIVERY SCIENCES, INC.                                         PAGE 1 OF 10
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THIS PROPOSAL/BUDGET HAS BEEN REVIEWED AND APPROVED BY:

For PharmaResearch Corporation:

/s/ W. JAMES ALEXANDER                                 9 May 2001
---------------------------------------------          ------------------------
W. James Alexander MD, MPH                             Date
Chief Medical and Regulatory Officer

For BioDelivery Sciences:

         /s/ CHRIS CHAPMAN, MD                         10 May 2001
---------------------------------------------          ------------------------
BioDelivery Sciences Signatory (Name & Title)               Date

     Director Clinical and
     Regulatory Affairs
     Director New Business
     Development-Pharmaceuticals

                 [SIG]
---------------------------------------------

BioDelivery Sciences International Inc.
Executive Vice President R&D

BIODELIVERY SCIENCES, INC.                                          PAGE 2 OF 10
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TABLE OF CONTENTS

I.   INTRODUCTION..........................................................4
II.  DESCRIPTION OF SERVICES...............................................4
     A.   Regulatory Services to be Performed by PharmaResearch............4
     B.   Meetings.........................................................5
     C.   Study Specifies..................................................6
III. KEY PERSONNEL.........................................................7
IV.  BUDGET................................................................9
V.   EXHIBIT A: CURRICULA VITAE...........................................10

BIODELIVERY SCIENCES, INC.                                          PAGE 3 OF 10
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I.      INTRODUCTION

        PharmaResearch respectfully submits this proposal for regulatory
        consulting, IND compilation, and medical writing services in support of
        the Amphotericin B Cochleates (CAMB) IND. We have included a description
        of the services we anticipate providing in support of this IND.

II.     DESCRIPTION OF SERVICES

A.      REGULATORY SERVICES TO BE PERFORMED BY PHARMARESEARCH

        1.      MEDICAL WRITING

                -   PharmaResearch medical writing staff will prepare, review
                    and edit/modify as necessary:

                    -    Investigator Brochure
                         PharmaResearch will write the investigator's brochure
                         (IB). Unless BioDelivery requests otherwise, the
                         report will be in a format consistent with current
                         International Conference on Harmonisation (ICH)
                         guidelines, and it will follow PharmaResearch's SOP
                         for clinical documents (as such, it will be prepared
                         using MS Word 97). The medical writing coordinator
                         will head all writing responsibilities for completion
                         of the IB. The medical writing coordinator will
                         interface as needed with appropriate individuals at
                         BioDelivery during the writing and review process. The
                         medical writing coordinator will deliver one hard copy
                         each of the First Draft (for in-depth critique), the
                         Final Draft (for review of corrections), and the
                         complete Sign-off version of the IB with signature
                         page.

                         Any additional rounds of review and comment or any
                         modification to the estimated timeline may result in a
                         corresponding change in the project budget.

                    -    Protocol
                         PharmaResearch will write the protocol for the study
                         to be filed with the IND. Unless BioDelivery requests
                         otherwise, the protocol will be in a format consistent
                         with current International Conference on Harmonisation
                         (ICH) guidelines, and it will follow PharmaResearch's
                         SOP for protocols (as such, it will be prepared using
                         MS Word 97). The medical writing coordinator will head
                         all writing responsibilities for completion of the
                         protocol. The medical writing coordinator will
                         interface as needed with individuals from the
                         PharmaResearch clinical team, with data management and
                         biostatistics, and with appropriate individuals at
                         BioDelivery during protocol writing and review. The
                         medical writing coordinator will deliver one hard copy
                         each of the First Draft (for in-depth critique), the
                         Final Draft (for review of corrections), and the
                         complete Sign-off version of the protocol with
                         signature page.

                         Any additional rounds of review and comment or any
                         modification to the estimated timeline may result in a
                         corresponding change in the project budget.

BIODELIVERY SCIENCES, INC.                                          PAGE 4 OF 10
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                    -   General Development Plan
                        We have included costs for Dr. John Adams to review and
                        revise the development plan as necessary prior to the
                        submission of the IND.

        2.      TOXICOLOGY REVIEW AND WRITING OF SECTIONAL SUMMARY

                -   A toxicology expert will review the toxicology
                    documentation and prepare the Toxicology sectional summary
                    to be included in the CAMB IND.

        3.      PREPARE THE IND

                -   PharmaResearch regulatory operations staff will prepare all
                    required documents for compilation and submission of the
                    IND in the prescribed format required by the FDA, and will
                    provide adequate copies for the FDA, BioDelivery, and the
                    PharmaResearch official IND file.
                -   PharmaResearch will photocopy, assemble, and submit the
                    original CAMB IND on behalf of BioDelivery. Quality
                    assurance checks will be performed on all associated
                    copies. Costs for binders, paper, dividers, etc. are
                    included in this proposal.
                -   The CAMB IND will be submitted in 4th quarter 2001 and will
                    consist of approximately 10-11 volumes.

B.      MEETINGS

        1.      MEETING WITH BIODELIVERY

                -   PharmaResearch has included time in the budget for the
                    chief medical/regulatory officer, scientific advisor, and
                    regulatory operations staff members to participate in
                    teleconference project meetings with BioDelivery on an every
                    other month basis.

BIODELIVERY SCIENCES, INC.                                          PAGE 5 OF 10
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C.      STUDY SPECIFICS

<Table>
<Caption>
===========================================================================
TASK/ITEM                                               ASSUMPTION
---------------------------------------------------------------------------
<S>                                                     <C>
Indication                                              Fungal infection
Total Duration for Regulatory Activities                7 months
IND Submission Date                                     Q4 2001
SOPs to be Used                                         PharmaResearch
===========================================================================
</Table>

BIODELIVERY SCIENCES, INC.                                          PAGE 6 OF 10
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III. KEY PERSONNEL

W. JAMES ALEXANDER, M.D., M.P.H., Chief Medical and Regulatory Officer. Dr.
Alexander joined PharmaResearch in July 1998 and also serves as Chairman of the
Board and as a director of Pharma Clinical Research, the European subsidiary of
PharmaResearch. He received his MD degree from the University of Mississippi and
is board certified in Internal Medicine and Infectious Diseases. He received his
Master of Public Health degree in 1987 and was Medical Officer and
Epidemiologist for Jefferson County, Alabama, where he collaborated with the
Centers for Disease Control and Prevention on multiple projects. Prior to
joining the pharmaceutical industry in 1987, he was a clinical investigator for
the NIH, Schering Plough, Burroughs Wellcome, and Carter-Wallace. Before joining
PharmaResearch in 1998, Dr. Alexander held clinical development positions with
Beecham Laboratories, SmithKline Beecham, Glaxo, Inc. and Glaxo Wellcome. He
authored or contributed to the NDAs and/or sNDA submissions for Timentin,
Ventolin, Volmax, Serevent, Lamictal, Imitrex Tablets and Nasal Spray, Amerge,
and Zyban. He led the preparation of the initial IND filings for lamivudine for
hepatitis B, inhaled salmeterol dry powder for asthma, and famciclovir and
penciclovir for herpes virus infections. Prior to joining PharmaResearch, Dr.
Alexander was Vice President and Worldwide Director of Product Safety and
Pharmacovigilance for Glaxo Wellcome, a position he assumed in 1996.

CARMEN P. CASTANEDA, M.D., M. Med. Sc., Associate Medical Director / Medical
Writing Coordinator. Dr. Castaneda received her MD degree in 1975 from the
University of the Philippines where she completed an internship and residency in
Family Medicine. She completed a Fellowship in Pharmacology in Manila and
received her Masters degree in Clinical Epidemiology from the University of
Newcastle (Aust.). Dr. Castaneda was Medical Director for Upjohn in the
Philippines from 1989 to 1993. Prior to joining PharmaResearch in 1999, she was
Associate Medical Director for 4 years at ClinTrials Research in RTP. She was
project medical monitor for protocols evaluating therapies for asthma, chronic
renal failure, HIV, allergic rhinitis, osteoarthritis and hypertension. At
PharmaResearch, Dr. Castaneda serves as the full-time Medical Safety Officer in
addition to performing medical monitoring duties across a range of current
projects and coordinating medical writing activities.

JOHN ADAMS, Pharm.D., Scientific Advisor, Virology/Oncology/Infectious
Diseases. Dr. Adams relocated to the Research Triangle Park area from New York
State where he was a Research Assistant Professor at the University of Buffalo
and a Research Associate at the Laboratory for Antiviral Research in Buffalo.
His clinical and pharmaceutical care experience involved designing and
monitoring antiretroviral therapy regimens and developing strategies for
improved adherence with these complicated regimens. Dr. Adams' teaching
experience included lecturing to and precepting graduate and undergraduate
pharmacy students in infectious diseases, immunology, rheumatology, hematology,
oncology, and pharmacokinetics. His work won him the Rho Chi Teacher of the Year
Award for 1997 at the University of Buffalo School of Pharmacy. His most recent
research in pharmacokinetics focused on a protease inhibitor's effects in women
during different phases of the menstrual cycle. His scientific contributions
were recognized in 1996 by the American College of Clinical Pharmacy when he was
awarded the Centeon Immunology Fellowship. He was also the recipient of the
Society of Infectious Diseases Pharmacists/Pfizer Research Award.

RACHELLE FONG, M.S., Associate Director, Regulatory Operations and
QA/Compliance. Ms. Fong manages the Regulatory Operations group for
PharmaResearch Corporation which includes all facets of regulatory submissions,
document control, standard operating procedures, QA/Compliance, regulatory
training and general regulatory consulting. Ms. Fong has over ten years of
industry experience which includes IND, 510(k), PMA and NDA experience. She has
managed several INDs and supervised the submission of three NDAs. Ms Fong has
over seven years of direct regulatory experience, first in the area of
contraceptive drug products for an international non-profit organization and
then as a member of

BIODELIVERY SCIENCES, INC.                                          PAGE 7 OF 10
<PAGE>
the regulatory affairs department of a major contract research organization. Ms.
Fong also worked for over three years as a microbiologist in research and
development for a medical device company.

CARMEN WANTOWSKI, Senior Regulatory Specialist. Ms. Wantowski brings over 18
years of experience in communications, information management, and regulatory
affairs. Her experience includes over 6 years in the pharmaceutical industry and
with contract research organizations. Prior to joining PharmaResearch
Corporation, her work included IND preparation and submission and project
management of over 210 annual reports a year. Her work at PharmaResearch
includes the submission and tracking of all U.S. and Non-U.S. regulatory
dossiers and electronic regulatory information management

SHELLEY V. CHING, D.V.M., Ph.D., DACVP Dr. Ching received her D.V.M. from the
University of Georgia and her Ph.D. in Pathology from Colorado State University.
Dr. Ching has executive management experience in Preclinical Development and
Drug Safety Assessment for pharmaceutical and biotechnology products from Glaxo
Wellcome, Inc. As a toxicologist and pathologist at Merck Research and Burroughs
Wellcome, Dr. Ching has managed, conducted and evaluated toxicology studies and
prepared and reviewed regulatory submissions. Dr. Ching currently serves as a
toxicologic pathologist on expert peer reviews for several companies and for the
National Toxicology Program.

BIODELIVERY SCIENCES, INC.                                          PAGE 8 OF 10
<PAGE>
IV.  BUDGET

If there is a change in the scope of this project, this will result in a change
                      in PharmaResearch's proposed budget.

   All pass through expenses are best estimates of such costs and subject to
 adjustment based on actual expenses incurred. These expenses will be invoiced
     monthly and will incur a 6% administrative fee. Appropriate supporting
           documentation will be included with each monthly invoice.

<Table>
<Caption>
-----------------------------------------------------------------------------------------------------------------------
                                                                                                         ESTIMATED PASS
TASK GROUP              TASK ITEM                                                  MANAGEMENT FEES              THROUGH
                                                                                                               EXPENSES
-----------------------------------------------------------------------------------------------------------------------
<S>                     <C>                                                        <C>                   <C>
                        Investigator Brochure                                           18,530.00                 --
-----------------------------------------------------------------------------------------------------------------------
                        Protocol Writing                                                18,530.00                 --
-----------------------------------------------------------------------------------------------------------------------
                        General Development Plan Review and Edit                         2,800.00                 --
-----------------------------------------------------------------------------------------------------------------------
MEDICAL WRITING SUBTOTAL                                                                39,860.00                 --
-----------------------------------------------------------------------------------------------------------------------
                        Toxicology Review and Writing of Sectional Summary               9,000.00                 --
-----------------------------------------------------------------------------------------------------------------------
TOXICOLOGY SUBTOTAL                                                                      9,000.00                 --
-----------------------------------------------------------------------------------------------------------------------
                        Prepare the IND                                                 12,550.00                 --
-----------------------------------------------------------------------------------------------------------------------
                        Supplies/Shipping                                                    --               1,000.00
-----------------------------------------------------------------------------------------------------------------------
REGULATORY AFFAIRS SUBTOTAL                                                             12,550.00             1,000.00
-----------------------------------------------------------------------------------------------------------------------
                        Meetings with BioDelivery                                        5,190.00                 --
-----------------------------------------------------------------------------------------------------------------------
PROJECT TEAM MEETINGS SUBTOTAL                                                           5,190.00                 --
-----------------------------------------------------------------------------------------------------------------------
SUBTOTALS                                                                               66,600.00             1,000.00
-----------------------------------------------------------------------------------------------------------------------
6% ADMINISTRATIVE FEE ON PASS THROUGH EXPENSES                                                                   60.00
-----------------------------------------------------------------------------------------------------------------------
PROJECT GRAND SUBTOTAL                                                                                       67,660.00
-----------------------------------------------------------------------------------------------------------------------
</Table>

BIODELIVERY SCIENCES, INC.                                          PAGE 9 OF 10
<PAGE>
V.      EXHIBIT A: CURRICULA VITAE

BIODELIVERY SCIENCES, INC.                                         PAGE 10 OF 10<PAGE>
                                                                    Exhibit 10.8

                          STURM, RUGER & COMPANY, INC.
                           2001 STOCK OPTION PLAN FOR
                             NON-EMPLOYEE DIRECTORS

SECTION 1. GENERAL PURPOSE OF PLAN; DEFINITIONS.

           (a)   The name of this plan is the Sturm, Ruger & Company, Inc. 2001
Stock Option Plan for Non-Employee Directors (the "Plan"). The purpose of the
Plan is to enable the Company (as defined below) to compensate Non-Employee
Members of the Board (as defined below) and to provide incentives to such
members, which incentives are linked directly to increases in stockholder value
and will therefore inure to the benefit of all stockholders of the Company.

           (b)   For purposes of the Plan, the following terms shall be defined
as set forth below:

                 (i)    "Board" means the Board of Directors of the Company.

                 (ii)   "Code" means the Internal Revenue Code of 1986, as
                 amended from time to time, or any successor thereto.

                 (iii)  "Committee" means the Compensation Committee of the
                 Board, or any other committee the Board may subsequently
                 appoint to administer the Plan. The Committee shall be composed
                 entirely of directors who meet the qualifications referred to
                 in Section 2 of the Plan. If at any time no Committee shall be
                 in office, then the functions of the Committee specified in the
                 Plan shall be exercised by the Board.

                 (iv)   "Company" means Sturm, Ruger & Company, Inc., a
                 corporation organized under the laws of the State of Delaware,
                 or any successor corporation.

                 (v)    "Fair Market Value" shall mean, with respect to Stock or
                 other property, the fair market value of such Stock or other
                 property determined by such methods or procedures as shall be
                 established from time to time by the Committee. Unless
                 otherwise determined by the Committee in good faith, the per
                 share Fair Market Value of Stock of a particular date shall
                 mean (i) the closing sale price per share of Stock on the
                 national securities exchange on which the Stock is principally
                 traded for the last preceding date on which there was a sale of
                 such Stock on such exchange, or (ii) if the shares of Stock are
                 then traded in an over-the-counter market, the average of the
                 closing bid and asked prices for the shares of Stock in such
                 over-the-counter market for the last preceding date on which
                 there was a sale of such Stock in such market, or (iii) if the
                 shares of Stock are not then listed on a national securities
                 exchange or traded in an
<PAGE>
                 over-the-counter market, such value as the Committee, in its
                 sole discretion, shall determine.

                 (vi)   "Non-Employee Members of the Board" shall mean those
                 members of the Board who are not otherwise serving as officers
                 or employees of the Company or any of its subsidiaries at the
                 same time that they are serving as members of the Board;
                 provided, however, that notwithstanding the foregoing, William
                 B. Ruger shall not be deemed to be a Non-Employee Member of the
                 Board.

                 (vii)  "Nonqualified Stock Option" means any Stock Option that
                 is not an "incentive stock option" within the meaning of
                 Section 422 of the Code.

                 (viii) "Plan" has the meaning set forth in the first paragraph
                 hereof.

                 (ix)   "Securities Act" means the Securities Act of 1933, as
                 amended.

                 (x)    "Stock" means the Company's presently authorized common
                 stock, par value $1.00 per share, except as this definition may
                 be modified pursuant to Section 3 hereof to include shares
                 which are substituted for, or represent adjustments to, the
                 Company's common stock, par value $1.00 per share, or other
                 Stock.

                 (xi)   "Stock Option" means any option to purchase shares of
                 Stock granted pursuant to Section 5.

SECTION 2. ADMINISTRATION.

           The Plan shall be administered by a Committee of not less than two
persons, who shall be appointed by the Board and who shall serve at the pleasure
of the Board.

SECTION 3. STOCK SUBJECT TO PLAN; SUBSTITUTIONS AND ADJUSTMENTS.

           The total number of shares of Stock reserved and available for
issuance under the Plan shall be 200,000. Such shares may consist, in whole or
in part, of authorized and unissued shares or treasury shares. In the event of
any merger, reorganization, consolidation, recapitalization, Stock dividend or
other change in corporate structure affecting the Stock, a substitution or
adjustment shall be made in (a) the aggregate number and kind of shares reserved
and available for issuance under the Plan and (b) the number and option price of
shares subject to outstanding stock Options granted under the Plan as may be
determined by the Committee, provided that the number of shares subject to any
award shall always be a whole number.

SECTION 4. ELIGIBILITY.

           Each Non-Employee Member of the Board shall receive Nonqualified
Stock Options in accordance with the provisions of Section 5. In no event may
any Non-Employee

                                       2
<PAGE>
Member of the Board receive an amount of stock hereunder upon the exercise of
non-qualified stock options of more than one percent of the stock outstanding on
the date hereof.

SECTION 5. STOCK OPTIONS.

           (a)   Stock Options shall be granted in the following manner:

                 (i)    On January 1, 2001, each Non-Employee Member of the
                 Board shall be granted a Nonqualified Stock Option to purchase
                 20,000 shares of Stock; and

                 (ii)   Each new Non-Employee Member of the Board who has not
                 previously been a Non-Employee Member of the Board during the
                 term of the Plan shall be granted, on the date he or she is
                 elected to the Board during the term of the Plan, a
                 Nonqualified Stock Option to purchase 20,000 shares of Stock.

           (b)   Stock Options granted under the Plan shall be subject to the
terms and conditions set forth below:

                 (i)    The exercise price per share of Stock purchasable under
                 such Stock Options shall be 100% of the Fair Market Value of
                 the Stock on the date of grant.

                 (ii)   Such options shall be exercisable commencing (A)
                 immediately as to 5,000 shares of Stock and (B) on each of the
                 first three anniversaries of the date of grant as to 5,000
                 additional shares of Stock, in each case by payment in full of
                 the exercise price in cash, certified or cashier's check or
                 delivery of Stock certificates endorsed in blank or accompanied
                 by executed stock powers with signatures guaranteed by a
                 national bank or trust company or a member of a national
                 securities exchange. For these purposes, the Stock shall be
                 valued at the Fair Market Value on the date of exercise.
                 Payment of the exercise price with certificates evidencing
                 shares of Stock as provided above shall not increase the number
                 of shares available for the grant of Stock Options under the
                 Plan.

                 (iii)  Each Stock Option shall cease to be exercisable on the
                 date that is ten years following the date of grant.

                 (iv)   The aggregate number of shares of Stock that may be
                 granted to any Non-Employee Member of the Board pursuant to the
                 Plan may not exceed 20,000 shares.

                 (v)    Except as provided in this Section 5(b)(v), Stock
                 Options shall not be transferable other than by will or the
                 laws of descent and distribution and shall be exercisable
                 during the optionee's lifetime only by the optionee or by the
                 optionee's guardian or legal representative. Subject to such
                 administrative conditions as the Committee may prescribe, an
                 optionee

                                       3
<PAGE>
                 may, upon providing written notice to the Committee or its
                 designee, elect to transfer, without consideration therefor,
                 all or any portion of the Stock Options granted to the optionee
                 to members of his or her "immediate family" (as defined below),
                 to a trust or trusts maintained solely for the benefit of the
                 optionee and/or the members of his or her immediate family, or
                 to such other entities as may be determined by the Committee
                 (each, a "permissible transferee"). Any purported assignment,
                 alienation, pledge, attachment, sale, transfer or encumbrance
                 that does not qualify as a permissible transfer under this
                 Section 5(b)(v) shall be void and unenforceable against the
                 Plan and the Company. For purposes of this Section 5(b)(v), the
                 term "immediate family" shall mean, with respect to a
                 particular optionee, the optionee's spouse, parents, children,
                 stepchildren, legally adopted children and grandchildren, and
                 such other persons as may be determined by the Committee. The
                 terms of any Stock Option shall be binding upon the
                 beneficiaries, executors, administrators, heirs and successors
                 of the optionee and, as applicable, a permissible transferee
                 hereunder. The exercise of a Stock Option that is transferred
                 pursuant to this Section 5(b)(v) and the shares of Stock
                 acquired thereby shall be subject to the applicable provisions
                 of the Plan and to all applicable requirements of law,
                 including, but not limited to, to the extent applicable, the
                 registration requirements under the Securities Act. Upon any
                 transfer of a Stock Option, as provided in this Section
                 5(b)(v), the permissible transferee with respect to such option
                 shall be subject to the provisions of the Plan that otherwise
                 would apply to such option if it were still held by the
                 optionee. The Committee may further restrict the
                 transferability of such shares and require a legend to be
                 endorsed on the certificates representing the shares.

                 (vi)   Each recipient of a Stock Option shall enter into a
                 stock option agreement with the Company, which agreement shall
                 set forth, among other things, the exercise price of the
                 option, the term of the option and provisions regarding
                 exercisability of the option granted thereunder, which
                 provisions shall not be inconsistent with the terms set forth
                 herein.

SECTION 6. AMENDMENT AND TERMINATION.

           The Board may amend, alter, modify or discontinue the Plan at any
time, provided that the Board may not amend or alter the provisions of the Plan
relating to the amount, price and timing of awards more than once every six
months, other than to comport with changes in the Code, or the rules thereunder,
or the Employee Retirement Income Security Act of 1974, as amended, or the rules
thereunder.

SECTION 7. UNFUNDED STATUS OF PLAN.

           The Plan is intended to constitute an "unfunded" plan for incentive
compensation. With respect to any payments not yet made to a recipient by the
Company, nothing contained

                                       4
<PAGE>
herein shall give any such recipient any rights that are greater than those of a
general creditor of the Company.

SECTION 8. GENERAL PROVISIONS.

           (a)   The Plan and the rights of all persons claiming hereunder shall
be construed and determined in accordance with the laws of the State of Delaware
without giving effect to the choice of law principles thereof.

           (b)   The obligation of the Company to sell or deliver shares with
respect to Stock Options granted under the Plan shall be subject to all
applicable laws, rules and regulations, including all applicable federal and
state securities laws, and the obtaining of all such approvals by governmental
agencies as may be deemed necessary or appropriate by the Committee. Moreover,
each Stock Option is subject to the requirement that, if at any time the
Committee determines, in its absolute discretion, that the listing, registration
or qualification of shares issuable pursuant to a Stock Option is required by
any securities exchange or under any state or federal law, or the consent or
approval of any governmental regulatory body is necessary or desirable as a
condition of, or in connection with, the grant of a Stock Option, or the
issuance of shares thereunder, no Stock Options shall be granted or shares
issued, in whole or in part, unless such listing, registration, qualification,
consent or approval has been effected or obtained, free of any conditions, as
acceptable to the Committee. In the event that the issuance or disposition of
shares acquired pursuant to a Stock Option is not covered by a then current
registration statement under the Securities Act and is not otherwise exempt from
such registration, such shares shall be restricted against transfer to the
extent required by the Securities Act or regulations thereunder, and the
Committee may require the holder of a Stock Option receiving shares pursuant to
that Stock Option, as a condition precedent to receipt of such shares, to make
such representations as the Committee deems appropriate, including, without
limitation, a representation to the Company in writing that the shares acquired
by such Stock Option holder are acquired for investment only and not with a view
to distribution.

           (c)   Each recipient of a Stock Option shall, no later than the date
as of which the value of a Stock Option first becomes includible in the gross
income of such recipient for federal income tax purposes, pay to the Company, or
make arrangements satisfactory to the Committee regarding payment of, any
federal, state, or local taxes. The obligations of the Company under the Plan
shall be conditional on such payment or arrangements and the Company shall, to
the extent permitted by law, have the right to deduct any such taxes from any
payment of any kind otherwise due to the recipient.

           (d)   No member of the Board or the Committee, nor any officer or
employee of the Company acting on behalf of the Board or the Committee, shall be
personally liable for any action, determination, or interpretation taken or made
in good faith with respect to the Plan, and all members of the Board or the
Committee and each and any officer or employee of the Company acting on their
behalf shall, to the extent permitted by law, be fully indemnified and protected
by the Company in respect of any such action, determination or interpretation.

                                       5
<PAGE>
SECTION 9.  EFFECTIVE DATE OF PLAN.

            The Plan shall be effective on the date it is adopted by the Board.

SECTION 10. TERM OF PLAN.

           No Stock Option shall be granted pursuant to the Plan on or after the
tenth anniversary of the effective date of the Plan, but Stock Options
previously granted may extend beyond that date.

                                       6

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