Document:

STOCK OPTION AGREEMENT
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          AGREEMENT,  dated  as of May 25,  2004 by and  between  Lans  Fidelity
Corporation,  Las  Vegas  Inc,  a Nevada  Company  with its  principal  place of
business at 1026 W El Notre Pkwy, Suite 191, Escondido, CA 92026 (the "Company")
and , Fort Street Equity, (the "Optionee").

                              W I T N E S S E T H:

          WHEREAS, the parties have agreed, under a subscription agreement dated
May 25, 2004 to grant this option (the  "Option") to the Optionee to purchase up
to 500,000 shares of the Company's  common stock, par value $.001 per share (the
"Common  Stock")  at an  exercise  price  and  upon  the  terms  and  conditions
hereinafter set forth.

          NOW,  THEREFORE,  in consideration  of the mutual covenants  contained
herein, the parties hereto agree as follows:

     1.   Grant of Option.  Subject to all the terms and conditions  hereof, the
Company  hereby  grants to Optionee  the right to purchase all or any part of an
aggregate of 500,000 shares of Common Stock of the Company (the "Option Shares")
at an exercise price (the  "Exercise  Price") per share equal to the greater of:
(a) a 40% discount  from the average  closing bid price of the Common Stock on a
public exchange during the ten (10) trading days  immediately  prior to exercise
of the Option, or (b) $0.50 per share.

     2.   Exercisability  of  Option.  The Option  Shares  subject to the Option
shall become purchasable by the Optionee, in whole or in part, at any time prior
to the expiration of the Option,  which  expiration  shall occur on December 31,
2005 (the "Expiration Date"). On the Expiration Date, this Option and all rights
hereunder  shall  expire and any Option  Shares not  purchased  on or before the
Expiration Date may not thereafter be purchased hereunder. In the event Optionee
fails to exercise the Option on or prior to the Expiration Date, then the Option
as to all Option  Shares not exercised  shall expire and Optionee  shall have no
rights with respect to such remainder of the Option or the Option Shares.

     3.   Method of Exercise of Option;  Payment of Exercise Price.  This Option
shall be exercisable at any time and from time to time,  prior to the Expiration
Date, by surrender to the Company of the notice (the "Notice")  attached  hereto
as Exhibit "A". The Notice shall state the Optionee's  election to exercise this
Option  and the  number  of  Option  Shares  in  respect  of  which  it is being
exercised,  and shall be  accompanied  by a check in the amount of the  Exercise
Price.  Within a reasonable time following payment of the full Exercise Price by
Optionee,   the  Company  shall  deliver  to  the  Optionee  a  certificate   or
certificates  representing  those shares.  A certificate or certificates for the
shares as to which this Option shall have been so exercised  shall be registered
in the name of the Optionee and shall be delivered to Optionee at the address of
Optionee  specified in the Notice or at such other address as Optionee shall set
forth in its Notice.

     4.   Non-Assignability  of Option. This Option may be exercised only by the
Optionee and shall not be sold, transferred,  assigned, pledged, hypothecated or
otherwise  disposed of in any way  (whether by  operation  of law or  otherwise)
without the Company's  prior written consent except that Optionee may, solely in
connection  with a  transfer  of all or  substantially  all of its  assets to an
entity or entities  controlled  by  Optionee  ("Affiliate"),  sell,  transfer or
assign all its  interest  in this  Agreement  to such  Affiliate  but only after
giving  the  Company at least ten (10) days  notice in  writing of the  proposed
sale, transfer or assignment.  Any buyer, transferee, or assignee of this Option

<PAGE>

shall be bound by and subject to each and every  provision of this Agreement and
shall not sell, transfer,  assign,  pledge,  hypothecate or otherwise dispose of
the Option in any way (whether by operation of law or otherwise).

     5.   Limitation  of  Optionee's  Rights.  Except as  otherwise  provided in
Section  6,  Optionee  shall  not  have any of the  rights  or  privileges  of a
shareholder  of the  Company  in  respect of any  Option  Shares  issuable  upon
exercise of this Option unless and until those shares have been paid for in full
and upon  such  payment  in full  Optionee  shall  be  deemed  to be the  record
Optionee.

     6.   Anti-Dilution  Provisions.  If the  Company  shall pay a  dividend  in
shares of its Common Stock,  subdivide (split) its outstanding  shares of Common
Stock,  combine (reverse split) its outstanding shares of Common Stock, issue by
reclassification of its shares of Common Stock any shares or other securities of
the Company,  or distribute to holders of its Common Stock any securities of the
Company or of  another  entity,  the  number of shares of Common  Stock or other
securities  the  Optionee  is  entitled  to  purchase  pursuant  to this  Option
immediately  prior  thereto  shall be  adjusted  so that the  Optionee  shall be
entitled to receive upon  exercise the number of shares of Common Stock or other
securities  which it would  have owned or would  have been  entitled  to receive
after the  happening of any of the events  described  above had this Option been
exercised  immediately  prior to the  happening of such event,  and the Exercise
Price shall be correspondingly adjusted;  provided,  however, that no adjustment
in the number of shares and/or the Exercise Price shall be required  unless such
adjustment would require an increase or decrease of at least one percent (1%) in
such number and/or price; and provided  further,  however,  that any adjustments
which by reason of this  Section 6 are not  required to be made shall be carried
forward and taken into account in any subsequent adjustment.  An adjustment made
pursuant to this Section 6 shall become effective  immediately  after the record
date in the case of the stock  dividend or other  distribution  and shall become
effective  mmediately  after the  effective  date in the case of a  subdivision,
combination or  reclassification.  The Optionee shall be entitled to participate
in any  subscription  or other rights  offering made to holders of the Company's
Common  Stock to the extent it would have been  entitled  had this  Option  been
exercised  in the  full  number  of  shares  as to  which  this  Option  remains
unexercised  immediately  prior to the record date for such rights offering.  If
the Company is  consolidated or merged with or into another Company or if all or
substantially  all of its assets are  conveyed to another  Company,  this Option
shall  thereafter  be  exercisable  for the  purchase  of the kind and number of
shares of stock or other  securities or property,  if any,  receivable upon such
consolidation,  merger or  conveyance  by an Optionee of the number of shares of
Common Stock of the Company  which could have been  purchased on the exercise of
this Option immediately prior to such consolidation,  merger or conveyance; and,
in any  such  case,  appropriate  adjustment  (as  determined  by the  Board  of
Directors)  shall be made in the application of the provisions  herein set forth
with respect to the rights and  interests  thereafter of the Optionee to the end
that the  provisions  set forth  herein  (including  provisions  with respect to
changes in and other  adjustments  of the  number of shares of Common  Stock the
Optionee is entitled to purchase) shall  thereafter be applicable,  as nearly as
possible, in relation to any shares of Common Stock or other securities or other
property  thereafter  deliverable  upon the  exercise of this  Option.  Upon any
adjustment  of the  number of shares of  Common  Stock or other  securities  the
Optionee is entitled to purchase,  and of any change in Exercise Price,  then in
each such  case the  Company  shall  give  written  notice  thereof  to the then
registered holder of this Option at the address of such Optionee as shown on the
books of the  Company,  which  notice  shall  state such change and set forth in
reasonable  detail  the  method of  calculation  and the facts  upon  which such
calculation  is based.  Each such notice shall be  accompanied by a statement of
the firm of  independent  certified  public  accountants  retained  to audit the
financial  statements of the Company to the effect that such firm concurs in the
Company's calculation of the change.

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     7.   Piggyback Registration Rights. If the Company at any time from the ate
of the issuance of this Option through the Expiration Date, proposes to register
any of its  securities  under the ecurities Act for sale to the public,  whether
for its own account or for the account of other security holders or both (except
with respect to  registration  statements  on Forms S-4,  S-8 and any  successor
forms thereto), each such time it will give written notice to such effect to the
Optionee at least 30 days prior to such filing.  Upon the written request of the
Optionee  received  by the  Company  within 20 days after the giving of any such
notice by the Company to  register  any of shares of Common  Stock,  the Company
will cause the shares of Common Stock as to which  registration  shall have been
so requested to be included in the securities to be covered by the  registration
statement  proposed to be filed by the  Company,  all to the extent  required to
permit the sale or other  disposition  by the  Optionee of such shares of Common
Stock so  registered.  Notwithstanding  the  foregoing,  in the  event  that any
registration  pursuant  to this  Section  7 shall  be,  in whole or in part,  an
underwritten  public  offering of Common  Stock,  the number of shares of Common
Stock to be included in such an underwriting  may be reduced (pro rata among the
requesting  Optionees) and the other selling stockholders (based upon the number
of shares of Common  Stock  requested  to be  registered  by them) if and to the
extent that the  managing  underwriter  shall be of the good faith  opinion that
such  inclusion  would  adversely  affect the  success of such an  underwriting,
provided, that such number of shares of Common Stock shall not be reduced if any
shares of Common Stock are to be included in such  underwriting  for the account
of any person other than the Company or requesting Optionees of shares of Common
Stock.  In  the  event  of  such a  reduction,  the  Company  agrees  to  file a
registration  statement for the resale of the shares  underlying this Option not
included in such underwritten  offering within ninety (90) days of the date that
the underwritten  offering is declared  effective by the Securities and Exchange
Commission.  Notwithstanding the foregoing provisions,  the Company may withdraw
any  registration  statement  referred  to in this  Section  7  without  thereby
incurring any liability to the Optionees of shares of Common Stock.

     8.   Purchase for  Investment.  The Optionee  represents and agrees that if
the  Optionee  exercises  this  Option,  in whole or in part,  then those Option
Shares so acquired will be acquired for the purpose of investment and not with a
view to their resale or distribution and upon each exercise of this Option,  the
Optionee   will   furnish   to  the   Company  a  written   statement   to  that
effect,satisfactory  in form  and  substance  to the  Company  and its  counsel.
Optionee understands and acknowledges that the shares to be acquired pursuant to
this Option will be  "restricted  securities"  as such term is defined under the
Securities  Act of 1933,  as amended  (the  "Act") and  accordingly  will bear a
legend indicating such restrictions.

     9.   Representations and Warranties of Optionee.  As a condition to receipt
of the Option and for other good and valuable consideration, receipt of which is
hereby  acknowledge,  the  Optionee  represents  and  warrants to the Company as
follows:
               (I)  Optionee acknowledges that the Company is a evelopment stage
company with no  significant  operating  history and that there are  significant
risks  associated  with the Company's  business.  Accordingly,  the value of the
Option and the Option Shares will be based upon the Company's development of its
business which is subject to significant risks; and
               (II) Optionee  understands  that the Option and the Option Shares
(issuable  upon  exercise  of the  Option)  are being  offered and sold under an
exemption from registration provided by Section 4 of the Act and the regulations
promulgated thereunder, as well as applicable State law exemptions, and warrants
and  represents  that the Option and the Option  Shares are being or will be (in
the case of the  Option  Shares)  acquired  by the  undersigned  solely  for the
undersigned's  own account,  for  investment  purposes  only,  and are not being
purchased  with the intent or view to resell the Option or the Option  Shares or
for  the  resale,   distribution,   subdivision  or  fractionalization  thereof.
Consequently,  the undersigned must bear the economic risk of the investment for
an indefinite period of time because the Option and the Option

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Shares cannot be resold or otherwise transferred unless subsequently  registered
under  the Act  and  qualified  under  applicable  State  law or an  opinion  of
qualified  counsel  that  indicates  an  exemption  from   registration   and/or
qualification is available.

     10.  Notices.  Any notice to be given under the terms of this Option  shall
be in writing and addressed to the Company at the Company's then-present address
or to Optionee  at the  address  provided  herein,  or at such other  address as
either  party may  hereafter  designate  in writing to the other.  Any notice or
other  communication  given  hereunder  shall have been  deemed  duly given when
enclosed in a properly  sealed  envelope  addressed as aforesaid,  registered or
certified,  and deposited postage prepaid in a post office or branch post office
or, in person, when so delivered,  or by overnight courier providing evidence of
receipt.

     11.  Representations of Company. The Company represents: (i) the execution,
delivery and performance of this Agreement has been duly authorized by the Board
of  Directors  of  the  Company;  (ii)  the  consummation  of  the  transactions
contemplated  by this  Agreement will not violate any provision of the Company's
Certificate of Incorporation or Bylaws;  and (iii) no consent of any third party
including, without limitation,  federal or state regulatory agencies is required
for execution and performance of this Agreement by the Company.

     12.  Governing  Law.  This  Agreement  shall be deemed to be made under and
shall be  construed  in  accordance  with the laws of the  State of New York and
applicable Federal law without regard to conflict of law principles.

     13.  Successors and Assigns. This Agreement shall be binding upon and inure
to the benefit of the parties  hereto and their legal  successors  and permitted
assigns.

     14.  Entire Understanding; Masculine / Feminine. This Agreement constitutes
the entire  understanding  of the  parties  and shall not be  amended  except by
written agreement between the parties.  As used herein, the masculine form shall
include the feminine and vice-versa, as the context shall require.

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

                                                 Lans Fidelity Corporation
                                                 By:

                                                    ____________________________

                                                 Fort Street Equity

                                                 By:

                                                    ____________________________2004 Equity Incentive Plan

EXHIBIT 10-p

ANALYSTS INTERNATIONAL CORP.

2004 EQUITY INCENTIVE PLAN

SECTION 1.

DEFINITIONS

As used herein, the following terms shall have the meanings indicated below:

	 	(a)	"Affiliates" shall mean a Parent or Subsidiary of the Company. 

	 	(b)	"Committee" shall mean a Committee of two or more directors who shall be appointed by and serve at the pleasure of the Board. If the Company’s securities are registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended, then, to the extent necessary for compliance with Rule 16b-3, or any successor provision, each of the members of the Committee shall be a "non-employee director." Solely for purposes of this Section 1(b), "non-employee director" shall have the same meaning as set forth in Rule 16b-3, or any successor provision, as then in effect, of the General Rules and Regula-tions under the Securities Exchange Act of 1934, as amended.

	 	(c)	The "Company" shall mean Analysts International Corp., a Minnesota corporation. 

	 	(d)	"Fair Market Value" as of any date shall mean (i) if such stock is listed on the Nasdaq National Market, Nasdaq SmallCap Market, or an established stock exchange, the price of such stock at the close of the regular trading session of such market or exchange on such date, as reported by The Wall Street Journal or a comparable reporting service, or, if no sale of such stock shall have occurred on such date, on the next preceding day on which there was a sale of stock; (ii) if such stock is not so listed on the Nasdaq National Market, Nasdaq SmallCap Market, or an established stock exchange, the average of the closing "bid" and "asked" prices quoted by the OTC Bulletin Board, the National Quotation Bureau, or any comparable reporting service on such date or, if there are no quoted "bid" and "asked" prices on such date, on the next preceding date for which there are such quotes; or (iii) if such stock is not publicly traded as of such date, the per share value as determined by the Board, or the Committee, in its sole discretion by applying principles of valuation with respect to the Company’s Common Stock.

	 	(e)	The "Internal Revenue Code" is the Internal Revenue Code of 1986, as amended from time to time.

	 	(f)	The "Participant" means (i) an employee of the Company or any Subsidiary to whom an incentive stock option has been granted pursuant to Section 9, (ii) a director, an employee or an officer of the Company or any Subsidiary to whom a

	  
	 	 	 
	

	 

nonqualified stock option has been granted pursuant to Section 10, or (iii) a director, an employee or an officer of the Company or any Subsidiary to whom a stock award has been granted pursuant to Section 17.

	 	(g)	"Parent" shall mean any corporation which owns, directly or indirectly in an unbroken chain, fifty percent (50%) or more of the total voting power of the Company’s outstanding stock.

	 	(h)	The "Plan" means the Analysts International Corp. 2004 Equity Incentive Plan, as amended from time to time, including the form of Option and Award Agreements as they may be modified by the Board from time to time. 

	 	(i)	"Stock" shall mean Common Stock of the Company (subject to adjustment as described in Section 12) reserved for incentive and nonqualified stock options and stock awards pursuant to this Plan.

	 		

	 	(j)	A "Subsidiary" shall mean any corporation of which fifty percent (50%) or more of the total voting power of outstanding stock is owned, directly or in-directly in an unbroken chain, by the Company.

 

SECTION 2.

PURPOSE

The purpose of the Plan is to promote the success of the Company and its Subsidiaries by facilitating the employment and retention of competent personnel and by furnishing incentive to officers, directors and employees upon whose efforts the success of the Company and its Subsidiaries will depend to a large degree.

 

It is the intention of the Company to carry out the Plan through the granting of stock options which will qualify as "incentive stock options" under the provisions of Section 422 of the Internal Revenue Code, or any successor provision, pursuant to Section 9 of this Plan, through the granting of "nonqualified" stock options pursuant to Section 10 of this Plan, and through the granting of stock awards pursuant to Section 17 of this Plan. Adoption of this Plan shall be and is expressly subject to the condition of approval by the shareholders of the Company within twelve (12) months before or after the adoption of the Plan by the Board of Directors. 

SECTION 3.

EFFECTIVE DATE OF PLAN

The effective date of the Plan is the date it is adopted by the Board of Directors, subject to approval by the shareholders of the Company as required in Section 2.

	  
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SECTION 4.

ADMINISTRATION

The Plan shall be administered by the Board of Directors of the Company (hereinafter referred to as the "Board") or by a Committee which may be appointed by the Board from time to time to administer the Plan (collectively referred to as the "Administrator"). The Administrator shall have all of the powers vested in it under the provisions of the Plan, including but not limited to exclusive authority (where applicable and within the limitations described herein) to determine, in its sole discretion, whether an incentive stock option, nonqualified stock option or stock award shall be granted, the individuals to whom, and the time or times at which, options and awards shall be granted, the number of shares subject to each option or award, the option price, and terms and conditions of each option or award. The Administrator shall have full power and authority to administer and interpret the Plan, to make and amend rules, regulations and guidelines for administering the Plan, to prescribe the form and condi-tions of the respective stock option and stock award agreements (which may vary from Participant to Participant) evidencing each option or award and to make all other determinations necessary or advisable for the administration of the Plan. The Administrator’s interpretation of the Plan, and all actions taken and determinations made by the Administrator pursuant to the power vested in it hereunder, shall be conclusive and binding on all parties concerned. 

No member of the Board or the Committee shall be liable for any action taken or determination made in good faith in connection with the administration of the Plan. In the event the Board appoints a Committee as provided hereunder, any action of the Committee with respect to the administration of the Plan shall be taken pursuant to a majority vote of the Committee members or pursuant to the written resolution of all Committee members.

SECTION 5.

PARTICIPANTS

The Administrator shall from time to time, at its discretion and without approval of the shareholders, designate those employees to whom incentive stock options shall be granted pursuant to Section 9 of the Plan; those employees, officers and directors of the Company or of any Subsidiary to whom nonqualified stock options shall be granted pursuant to Section 10 of the Plan; and those employees, officers and directors of the Company or any Subsidiary to whom stock awards shall be granted pursuant to Section 17 of the Plan. The Administrator may grant additional incentive stock options, nonqualified stock options and stock awards under this Plan to some or all Participants then holding options or awards or may grant options and awards solely or partially to new Participants. In designating Participants, the Administrator shall also determine the number of shares to be optioned or awarded to each such Participant. The Administrator may from time to time designate individuals as being ineligible to participate in the Plan.

	  
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SECTION 6.

STOCK

The Stock to be optioned or awarded under this Plan shall consist of authorized but unissued shares of Stock. One Million (1,000,000) shares of Stock shall be reserved and available for stock options and stock awards under the Plan; provided, however, that the total number of shares of Stock reserved for options and stock awards under this Plan shall be subject to adjustment as provided in Section 12 of the Plan. In the event (i) any portion of an outstanding stock option or stock award under the Plan for any reason expires, (ii) any portion of an outstanding stock option is terminated prior to the exercise of such option, or (iii) any portion of a stock award is terminated prior to the lapsing of any risks of forfeiture on such stock, the shares of Stock allocable to such portion of the option or award shall continue to be reserved for stock options and stock awards under the Plan and may be optioned or awarded hereunder.

SECTION 7.

DURATION OF PLAN

Incentive stock options may be granted pursuant to the Plan from time to time during a period of ten (10) years from the effective date as defined in Section 3. Nonqualified stock options and stock awards may be granted pursuant to the Plan from time to time after the effective date of the Plan and until the Plan is discontinued or terminated by the Board. Any incentive stock option granted during such ten-year period and any nonqualified stock option or stock award granted prior to the termination of the Plan by the Board shall remain in full force and effect until the expiration of the option or award as specified in the written stock option or stock award agreement and shall remain subject to the terms and conditions of this Plan.

SECTION 8.

PAYMENT

Participants may pay for shares upon exercise of stock options granted pursuant to this Plan with cash, personal check, certified check or, if approved by the Administrator in its sole discretion, previously-owned shares of the Company’s Common Stock valued at such Stock’s then Fair Market Value, or such other form of payment as may be authorized by the Administrator. The Administrator may, in its sole discretion, limit the forms of payment available to the Participant and may exercise such discretion any time prior to the termination of the option granted to the Participant or upon any exercise of the option by the Participant. "Previously-owned shares" means shares of the Company’s Common Stock which the Participant has owned for at least six (6) months prior to the exercise of the stock option, or for such other period of time as may be required by generally accepted accounting principles.

With respect to payment in the form of Common Stock of the Company, the Administrator may require advance approval or adopt such rules as it deems necessary to assure compliance with

	  
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Rule 16b-3, or any successor provision, as then in effect, of the General Rules and Regulations under the Securities Exchange Act of 1934, if applicable.

SECTION 9.

TERMS AND CONDITIONS OF INCENTIVE STOCK OPTIONS

Each incentive stock option granted pursuant to this Section 9 shall be evidenced by a written stock option agreement (the "Option Agreement"). The Option Agreement shall be in such form as may be approved from time to time by the Administrator and may vary from Participant to Participant; provided, however, that each Participant and each Option Agreement shall comply with and be subject to the following terms and con-ditions:

	 	(a)	Number of Shares and Option Price. The Option Agreement shall state the total number of shares covered by the incentive stock option. To the extent required to qualify the Option as an incentive stock option under Section 422 of the Internal Revenue Code, or any successor provision, the option price per share shall not be less than one hundred percent (100%) of the Fair Market Value of the Common Stock per share on the date the Administrator grants the option; provided, however, that if a Participant owns stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or of its Parent or any Subsidiary, the option price per share of an incentive stock option granted to such Participant shall not be less than one hundred ten percent (110%) of the Fair Market Value of the Common Stock per share on the date of the grant of the option. The Administrator shall have full authority and discretion in establishing the option price and shall be fully protected in so doing.

	 	(b)	Term and Exercisability of Incentive Stock Option. The term during which any incentive stock option granted under the Plan may be exercised shall be established in each case by the Administrator. To the extent required to qualify the Option as an incentive stock option under Section 422 of the Internal Revenue Code, or any successor provision, in no event shall any incentive stock option be exercisable during a term of more than ten (10) years from the date on which it is granted; provided, however, that if a Participant owns stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or of its Parent or any Subsidiary, the incentive stock option granted to such Participant shall be exercisable during a term of not more than five (5) years from the date on which it is granted. The Option Agreement shall state when the incentive stock option becomes exercisable and shall also state the maximum term during which the option may be exercised. In the event an incentive stock option is exercisable immediately, the manner of exercise of the option in the event it is not exercised in full immediately shall be specified in the Option Agreement. The Administrator may acceler-ate the exercise date of any incentive stock option granted hereunder which is not immediately exercisable as of the date of grant.

	  
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	 	(c)	Withholding. The Company or its Subsidiary shall be entitled to withhold and deduct from future wages of the Participant all legally required amounts necessary to satisfy any and all withholding and employment-related taxes attributable to the Participant’s exercise of an incentive stock option or a "disqualifying disposition" of shares acquired through the exercise of an incentive stock option as defined in Code Section 421(b). In the event the Participant is required under the Option Agreement to pay the Company or Subsidiary, or make arrangements satisfactory to the Company or Subsidiary respecting payment of, such withholding and employment-related taxes, the Administrator may, in its discretion and pursuant to such rules as it may adopt, permit the Participant to satisfy such obligation, in whole or in part, by delivering shares of the Company’s Common Stock or by electing to have the Company withhold shares of Common Stock otherwise issuable to the Participant having a Fair Market Value equal to the minimum required tax withholding, based on the minimum statutory withholding rates for federal and state tax purposes, including payroll taxes, that are applicable to the supplemental income resulting from the exercise of the incentive stock option or disqualifying disposition. In no event may the Company or any Subsidiary withhold shares having a Fair Market Value in excess of such statutory minimum required tax withholding. The Participant’s election to have shares withheld for this purpose shall be made on or before the date the option is exercised or, if later, the date that the amount of tax to be withheld is determined under applicable tax law. Such election shall be approved by the Administrator and otherwise comply with such rules as the Administrator may adopt to assure compliance with Rule 16b-3, or any successor provision, as then in effect, of the General Rules and Regulations under the Securities Exchange Act of 1934, if applicable.

	 	(d)	Other Provisions. The Option Agreement authorized under this Section 9 shall contain such other provisions as the Administrator shall deem advisable. Any such Option Agreement shall contain such limitations and restrictions upon the exercise of the option as shall be necessary to ensure that such option will be considered an "incentive stock option" as defined in Section 422 of the Internal Revenue Code or to conform to any change therein.

SECTION 10.

TERMS AND CONDITIONS OF NONQUALIFIED STOCK OPTIONS

Each nonqualified stock option granted pursuant to this Section 10 shall be evidenced by a written Option Agreement. The Option Agreement shall be in such form as may be approved from time to time by the Administrator and may vary from Participant to Participant; provided, however, that each Participant and each Option Agreement shall comply with and be subject to the following terms and conditions:

	 	(a)	Number of Shares and Option Price. The Option Agreement shall state the total number of shares covered by the nonqualified stock option. Unless otherwise

	  
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determined by the Administrator, the option price per share shall be one hundred percent (100%) of the Fair Market Value of the Common Stock per share on the date the Administrator grants the option.

	 	(b)	Term and Exercisability of Nonqualified Stock Option. The term during which any nonqualified stock option granted under the Plan may be exercised shall be established in each case by the Administrator. The Option Agreement shall state when the nonqualified stock option becomes exercisable and shall also state the maximum term during which the option may be exercised. In the event a nonqualified stock option is exercisable immediately, the manner of exercise of the option in the event it is not exercised in full immediately shall be specified in the Option Agreement. The Administrator may acceler-ate the exercise date of any nonqualified stock option granted hereunder which is not immediately exercisable as of the date of grant.

	 	(c)	Withholding. The Company or its Subsidiary shall be entitled to withhold and deduct from future wages of the Participant all legally required amounts necessary to satisfy any and all withholding and employment-related taxes attributable to the Participant’s exercise of a nonqualified stock option. In the event the Participant is required under the Option Agreement to pay the Company or Subsidiary, or make arrangements satisfactory to the Company or Subsidiary respecting payment of, such withholding and employment-related taxes, the Administrator may, in its discretion and pursuant to such rules as it may adopt, permit the Participant to satisfy such obligation, in whole or in part, by delivering shares of the Company’s Common Stock or by electing to have the Company or Subsidiary withhold shares of Common Stock otherwise issuable to the Participant having a Fair Market Value equal to the minimum required tax withholding, based on the minimum statutory withholding rates for federal and state tax purposes, including payroll taxes, that are applicable to the supplemental income resulting from the exercise of the nonqualified stock option. In no event may the Company or any Subsidiary withhold shares having a Fair Market Value in excess of such statutory minimum required tax withholding. The Participant’s election to have shares withheld for this purpose shall be made on or before the date the option is exercised or, if later, the date that the amount of tax to be withheld is determined under applicable tax law. Such election shall be approved by the Administrator and otherwise comply with such rules as the Administrator may adopt to assure compliance with Rule 16b-3, or any successor provision, as then in effect, of the General Rules and Regulations under the Securities Exchange Act of 1934, if applicable.

		

	 	(d)	Other Provisions. The Option Agreement authorized under this Section 10 shall contain such other provisions as the Administrator shall deem advisable.

	  
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SECTION 11.

TRANSFER OF OPTIONS

No incentive stock option shall be transferable, in whole or in part, by the Participant other than by will or by the laws of descent and distribution. During the Participant’s lifetime, the incentive stock option may be exercised only by the Participant. If the Participant shall attempt any transfer of any incentive stock option granted under the Plan during the Participant’s lifetime, such transfer shall be void and the incentive stock option, to the extent not fully exercised, shall terminate.

No nonqualified stock option shall be transferred, except that the Administrator may, in its sole discretion, permit the Participant to transfer any or all nonqualified stock options to any member of the Participant’s "immediate family" as such term is defined in Rule 16a-1(e) promulgated under the Securities Exchange Act of 1934, or any successor provision, or to one or more trusts whose beneficiaries are members of such Participant’s "immediate family" or partnerships in which such family members are the only partners; provided, however, that the Participant cannot receive any consideration for the transfer and such transferred nonqualified stock option shall continue to be subject to the same terms and conditions as were applicable to such nonqualified stock option immediately prior to its transfer.

SECTION 12.

RECAPITALIZATION, SALE, MERGER, EXCHANGE OR LIQUIDATION

If, following adoption of this Plan, the Company effects an increase or decrease in the number of shares of Common Stock in the form of a subdivision or consolidation of shares, or the payment of a stock dividend, or effects any other increase or decrease in the number of shares of Common Stock without receipt of consideration by the Company, the number of shares of Option Stock reserved under Section 6 hereof and the number of shares of Option Stock covered by each outstanding option and stock award, and the price per share thereof, shall be appropriately adjusted by the Board to reflect such change. Additional shares which may be credited pursuant to such adjustment shall be subject to the same restrictions as are applicable to the shares with respect to which the adjustment relates.

 

Unless otherwise provided in the Option or Award Agreement, in the event of an acquisition of the Company through the sale of substantially all of the Company’s assets and the consequent discontinuance of its business or through a merger, consolidation, exchange, reorganization, reclassification, extraordinary dividend, divestiture or liquidation of the Company (collectively referred to as a "transaction"), the Board may provide for one or more of the following: 

	 	(a)	the equitable acceleration of the exercisability of any outstanding options and the lapsing of the risks of forfeiture on any stock awards; 

	 	(b)	the complete termination of this Plan, the cancellation of outstanding options not exercised prior to a date specified by the Board (which date shall give Participants a

	  
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reasonable period of time in which to exercise the options prior to the effectiveness of such transaction), and the cancellation of any stock awards for which the risks of forfeiture have not lapsed; 

	 	(c)	that Participants holding outstanding stock options shall receive, with respect to each share of Stock subject to such options, as of the effective date of any such transaction, cash in an amount equal to the excess of the Fair Market Value of such Stock on the date immediately preceding the effective date of such transaction over the option price per share of such options; provided that the Board may, in lieu of such cash payment, distribute to such Participants shares of stock of the Company or shares of stock of any corporation succeeding the Company by reason of such transaction, such shares having a value equal to the cash payment herein; 

	 	(d)	that Participants holding outstanding stock awards shall receive, with respect to each share of Stock subject to such awards, as of the effective date of any such transaction, cash in an amount equal to the Fair Market Value of such Stock on the date immediately preceding the effective date of such transaction; provided that the Board may, in lieu of such cash payment, distribute to such Participants shares of stock of the Company or shares of stock of any corporation succeeding the Company by reason of such transaction, such shares having a value equal to the cash payment herein; 

	 	(e)	the continuance of the Plan with respect to the exercise of options which were outstanding as of the date of adoption by the Board of such plan for such transaction and provide to Participants holding such options the right to exercise their respective options as to an equivalent number of shares of stock of the corporation succeeding the Company by reason of such transaction; and

	 	(f)	the continuance of the Plan with respect to stock awards for which the risks of forfeiture have not lapsed as of the date of adoption by the Board of such plan for such transaction and provide to Participants holding such awards the right to receive an equivalent number of shares of stock of the corporation succeeding the Company by reason of such transaction. 

The Board may restrict the rights of or the applicability of this Section 12 to the extent necessary to comply with Section 16(b) of the Securities Exchange Act of 1934, the Internal Revenue Code or any other applicable law or regulation. The grant of an option or stock award pursuant to the Plan shall not limit in any way the right or power of the Company to make adjustments, reclassifications, reorganizations or changes of its capital or business structure or to merge, exchange or consolidate or to dissolve, liquidate, sell or transfer all or any part of its business or assets.

SECTION 13.

INVESTMENT PURPOSE

No shares of Common Stock shall be issued pursuant to the Plan unless and until there has been compliance, in the opinion of Company’s counsel, with all applicable legal requirements,

	  
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including without limitation, those relating to securities laws and stock exchange listing requirements. As a condition to the issuance of Stock to Participant, the Administrator may require Participant to (i) represent that the shares of Stock are being acquired for investment and not resale and to make such other representations as the Administrator shall deem necessary or appropriate to qualify the issuance of the shares as exempt from the Securities Act of 1933 and any other applicable securities laws, and (ii) represent that Participant shall not dispose of the shares of Stock in violation of the Securities Act of 1933 or any other applicable securities laws or any company policies then in effect. 

As a further condition to the grant of any stock option or the issuance of Stock to Participant, Participant agrees to the following:

	 	(a)	In the event the Company advises Participant that it plans an underwritten public offering of its Common Stock in compliance with the Securities Act of 1933, as amended, and the underwriter(s) seek to impose restrictions under which certain shareholders may not sell or contract to sell or grant any option to buy or otherwise dispose of part or all of their stock purchase rights of the underlying Common Stock, Participant will not, for a period not to exceed 180 days from the prospectus, sell or contract to sell or grant an option to buy or otherwise dispose of any stock option granted to Participant pursuant to the Plan or any of the underlying shares of Common Stock without the prior written consent of the underwriter(s) or its representative(s).

	 	(b)	In the event the Company makes any public offering of its securities and determines in its sole discretion that it is necessary to reduce the number of issued but unexercised stock purchase rights so as to comply with any state’s securities or Blue Sky law limitations with respect thereto, the Board of Directors of the Company shall have the right (i) to accelerate the exercisability of any stock option and the date on which such option must be exercised, provided that the Company gives Participant prior written notice of such acceleration, and (ii) to cancel any options or portions thereof which Participant does not exercise prior to or contemporaneously with such public offering. 

	 	(c)	In the event of a transaction (as defined in Section 12 of the Plan), Participant will comply with Rule 145 of the Securities Act of 1933 and any other restrictions imposed under other applicable legal or accounting principles if Participant is an "affiliate" (as defined in such applicable legal and accounting principles) at the time of the transaction, and Participant will execute any documents necessary to ensure compliance with such rules.

The Company reserves the right to place a legend on any stock certificate issued upon the exercise of an option or upon the grant of a stock award pursuant to the Plan to assure compliance with this Section 13.

	  
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SECTION 14.

RIGHTS AS A SHAREHOLDER

A Participant (or the Participant’s successor or successors) shall have no rights as a shareholder with respect to any shares covered by an incentive stock option or nonqualified stock option until the date of the issuance of a stock certificate evidencing such shares. No adjustment shall be made for dividends (ordinary or extraordinary, whether in cash, securities or other property), distributions or other rights for which the record date is prior to the date such stock certificate is actually issued (except as otherwise provided in Section 12 of the Plan).

SECTION 15.

AMENDMENT OF THE PLAN

The Board may from time to time, insofar as permitted by law, suspend or discontinue the Plan or revise or amend it in any respect; provided, however, that no such revision or amendment, except as is authorized in Section 12, shall impair the terms and conditions of any stock option or stock award which is outstanding on the date of such revision or amendment to the material detriment of the Participant without the consent of the Participant. Notwithstanding the foregoing, no such revision or amendment shall (i) increase the number of shares subject to the Plan except as provided in Section 12 hereof, (ii) change the desig-nation of the class of employees eligible to receive stock options or stock awards, (iii) decrease the price at which options may be granted, or (iv) increase the benefits accruing to Participants under the Plan, without the approval of the shareholders of the Company if such approval is required for compliance with the requirements of any applicable law or regulation. Furthermore, the Plan may not, without the approval of the shareholders, be amended in any manner that will cause incentive stock options to fail to meet the requirements of Section 422 of the Internal Revenue Code.

SECTION 16.

NO OBLIGATION TO EXERCISE OPTION

The granting of a stock option shall impose no obligation upon the Participant to exercise such option. Further, the granting of a stock option or stock award hereunder shall not impose upon the Company or any Subsidiary any obligation to retain the Participant in its employ for any period.

SECTION 17.

STOCK AWARDS

Each stock award granted pursuant to the Plan shall be evidenced by a written stock award agreement (the "Stock Award Agreement"). The Stock Award Agreement shall be in such form as may be approved from time to time by the Administrator and may vary from Participant to Participant; provided, however, that each Participant and each Stock Award Agreement shall comply with and be subject to the following terms and conditions:

	  
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	 	(a)	Number of Shares. The Stock Award Agreement shall state the total number of shares of Stock covered by the stock award. 

	 	(b)	Risks of Forfeiture. The Stock Award Agreement shall set forth the risks of forfeiture, if any, which shall apply to the shares of Stock covered by the stock award, and shall specify the manner in which such risks of forfeiture shall lapse. The Administrator may, in its sole discretion, modify the manner in which such risks of forfeiture shall lapse but only with respect to those shares of Stock which are restricted as of the effective date of the modification. 

	 	(c)	Issuance of Shares. The Company shall cause to be issued a stock certificate representing such shares of Stock in the Participant’s name, and shall deliver such certificate to the Participant; provided, however, that the Company shall place a legend on such certificate describing the risks of forfeiture and other transfer restrictions set forth in the Participant’s Stock Award Agreement and providing for the cancellation and return of such certificate if the shares of Stock subject to the stock award are forfeited. 

	 	(d)	Rights as Shareholder. If the Participant’s stock award is subject to any risk of forfeiture, this Section 17(d) shall apply. Until such risks of forfeiture have lapsed or the shares subject to such stock award have been forfeited, the Participant shall be entitled to vote the shares of Stock represented by such stock certificates and shall receive all dividends attributable to such shares, but the Participant shall not have any other rights as a shareholder with respect to such shares.

	 	(e)	Withholding Taxes. The Company or its Subsidiary shall be entitled to withhold and deduct from future wages of the Participant all legally required amounts necessary to satisfy any and all withholding and employment-related taxes attributable to the Participant’s stock award. In the event the Participant is required under the Stock Award Agreement to pay the Company or Subsidiary, or make arrangements satisfactory to the Company or Subsidiary respecting payment of, such withholding and employment-related taxes, the Administrator may, in its discretion and pursuant to such rules as it may adopt, permit the Participant to satisfy such obligations, in whole or in part, by delivering shares of Common Stock, including shares of Stock received pursuant to a stock award on which the risks of forfeiture have lapsed. Such shares shall have a Fair Market Value equal to the minimum required tax withholding, based on the minimum statutory withholding rates for federal and state tax purposes, including payroll taxes, that are applicable to the supplemental income resulting from such stock award. In no event may the Participant deliver shares having a Fair Market Value in excess of such statutory minimum required tax withholding. The Participant’s election to deliver shares of Common Stock for this purpose shall be made on or before the date that the amount of tax to be withheld is determined under applicable tax law. Such election shall be approved by the Administrator and otherwise comply with such rules as the

	  
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Administrator may adopt to assure compliance with Rule 16b-3, or any successor provision, as then in effect, of the General Rules and Regulations under the Securities Exchange Act of 1934, if applicable.

	 	(f)	Nontransferability. If the Participant’s stock award is subject to any risks of forfeiture, this Section 17(f) shall apply. No such stock award shall be transferable, in whole or in part, by the Participant, other than by will or by the laws of descent and distribution, prior to the date the risks of forfeiture described in the Stock Award Agreement have lapsed. If the Participant shall attempt any transfer of such stock award granted under the Plan prior to such date, such transfer shall be void and the stock award shall terminate.

	 	(g)	Other Provisions. The Stock Award Agreement authorized under this Section 17 shall contain such other provisions as the Administrator shall deem advisable. 

#2927049\2

	 
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