Document:

Unassociated Document

    Exhibit
10.7

       

       

      EXCLUSIVE LICENSE AND
CONSULTING AGREEMENT

      

      This
Exclusive License and Consulting Agreement (the “Agreement”) is
entered into by and between CorMedix, a Delaware limited liability company (the
"Company"), and
Hans-Dietrich Polaschegg (the “Consultant”) as of
this 28 day of January, 2008 (the “Effective
Date”).  Exhibit A includes
definitions of terms used but not otherwise defined within the body of this
Agreement, and Exhibit
A and such definitions shall be incorporated by reference to this
Agreement.

      

      BACKGROUND

       

      1.           Consultant
is the owner of (i) the Gel Lock Invention, and (ii) the Treatments
Invention.

       

      2.           Consultant
had entered into that certain Exclusive License and Consulting Agreement (the
“Original Agreement”) with ND Partners, LLC (“NDP”), dated April 29, 2005 and
NDP assigned all rights, title and interest to the Original Agreement to Company
in connection with the License and Assignment Agreement entered into between NDP
and Company.  Consultant and Company agree that this Agreement
replaces, in its entirety, the Original Agreement.

      3.           The
Company wishes to license the Assets from Consultant on an exclusive worldwide
basis, and Consultant wishes to grant an exclusive worldwide license in the
Assets to the Company.

      

      4.           The
Company wishes to receive consulting services from Consultant, and Consultant
wishes to provide consulting services to the Company.

      

      AGREEMENT

      

      In
consideration of the mutual covenants and promises contained herein and for
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged by the parties hereto, the parties agree as
follows:

      

      I.           LICENSE.

      

      1.           License Grant; Defense and
Ownership.

      

      (a)          Consultant
hereby grants to the Company a License to the Assets.

      

      [*]
Certain information in this document has been omitted and filed separately with
the Securities and Exchange Commission.  Confidential treatment has
been requested with respect to the omitted portions.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (b)          The
Company agrees to timely file and pursue, with respect to the Inventions, patent
applications, divisionals, and/or continuations-in-part in Japan and the United
States, to the extent patent protection is available in each of these
countries.  The Company shall be responsible for seeking all necessary
approvals for the Assets and shall defend the Assets from third party
infringement.  Any award collected from enforcing rights against any
third-party infringers shall be split between Company and Consultant after
deduction of costs for collecting the award at the ratio [*].  The
Company shall be responsible for taking all actions necessary to maintain,
preserve and protect its interests in the Assets, including, without limitation,
timely filing any registrations, documents or certificates with the appropriate
governmental authorities and paying all required fees in connection
therewith.  The Company shall own any and all regulatory submissions,
including all applications and associated government licenses, approvals, and
certificates relating to the Assets.  The Company shall, at its sole
expense, use Commercially Reasonable Efforts, itself or through the activities
of its Sublicensees and Affiliates, to perform the Development and secure the
Marketing Authorizations for Licensed Products.  The Company’s
Development program shall include preclinical and clinical development of
Licensed Products, including research and development, manufacturing, and
laboratory and clinical testing throughout the Term of the
License.  Specifically, Company intends to perform development work
including a pilot clinical trial for purposes of obtaining European Medical
Devise certification for the Gel lock invention in Europe within the first 2.5
years following the Effective Date.  The Company shall, at its sole
expense, promptly following receipt of the necessary Marketing Authorizations,
use Commercially Reasonable Efforts to, itself or through the activities of its
Sublicensees and Affiliates, promote , market, sell and commercialize
thereafter, Licensed Product.

      

      (c)           Consultant
shall not at any time do or cause to be done any act or thing challenging,
contesting, impairing, invalidating, or tending to impair or invalidate any of
the Company’s rights in the Assets or any registrations derived from such
rights.

      

      2.           
Initial
Payment.  In consideration of the License granted hereunder,
the Company shall pay to Consultant an aggregate of U.S. $5,000 within thirty
(30) days after the date of this Agreement.

      

      3.           
Royalty
Payments.

      

      (a)          The
Company shall pay Consultant royalty payments (the “Royalty Payments”)
with respect to products sold by the Company, any of its Affiliates or any of
their respective partners if the use, manufacture or sale of Assets contained
within such product is covered by or encompassed within the scope of one or more
claims contained in a then unexpired patent of an Invention as outlined in Table
1.

      

      
        
          
            
              
                
                  	
                          (A)
      equal to

                        	 	
                          (C)
      of Net Sales if cumulative Net

                          Sales
      exceed

                        	 	
                          (D)
      and are not more than

                        
	
                          [*]

                        

                

              

            

          

        

      

      

      [*]
Certain information in this document has been omitted and filed separately with
the Securities and Exchange Commission.  Confidential treatment has
been requested with respect to the omitted portions.

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      

      Table
1

      

      The
Royalty Payments shall be paid at the rate set forth in column (A) of Table 1
for Product or Products sold anywhere in the world.  The calculation
of Net Sales is performed using the factors in Table 2 specified for various
territories.

      

      
        
          
            
              
                
                  
                    	
                            Case
      I

                          	 	
                            Case
      II

                          	 	
                            Case
      III

                          
	
                            [*]

                          

                  

                

              

            

          

        

      

      Table
2

      

      Case I: [*]

      Case II: [*]

      Case
III: [*]

       

      (b)  Royalties
may also be additionally reduced if, Company determines, after consultation with
counsel, that it is reasonably necessary to obtain a third party license to
patent rights to avoid infringement thereof by a product embodying the Gel Lock
Invention (such third party patent rights “Blocking Rights”).

        The
reduction in the royalties paid to Polaschegg may be reduced by an additional
[*]% of the aggregate amount paid by Company to third parties for Blocking
Rights. The
Treatments Invention shall not have a reduction of royalties based on additional
patented features.

       

      
        	
                 
      

              	
                (c)

              	
                The
      Royalty Payment shall be paid in United States dollars by the Company
      within [*] following the end of each calendar quarter (the first such
      quarter to be that in which royalties first accrue) in an amount equal to
      the Royalty Payment accruing during that calendar quarter measured in
      currency of the country in which sales shall have been made by the
      Company, its Affiliates or their respective partners and converted into
      United States dollars at such country’s official banker’s rate in effect
      on the last day of such calendar quarter.  The Royalty Payment
      shall be accompanied by reports which shall indicate the sales by the
      Company, its Affiliates and their respective partners for the previous
      calendar quarter and shall show the amount of the Royalty Payment due with
      sufficient information to enable confirmation by
    Consultant.

              

      

       

      Examples
of Royalty Payment Calculations are outlined in Exhibit B.

      

      [*]
Certain information in this document has been omitted and filed separately with
the Securities and Exchange Commission.  Confidential treatment has
been requested with respect to the omitted portions.

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

       

      If a
dispute arises regarding the royalty payment and the calculation of the royalty
payment, the company shall continue to pay royalties without using reductions
pending resolution.  The dispute shall be settled according to Section
7 - Arbitration.  Any resulting payments made at the wrong rate shall
be corrected by future royalty payments.  Failure to pay within sixty
days at the end of each calendar quarter constitutes a breach of the contract by
the Company.

       

      4.           Minimum Royalty
Payments.

      Minimum Royalty Payments will be paid
on the inventions within rates already defined.  If new IP is
developed and applied to the inventions then the Minimum Royalty Payment will be
adjusted according to the table below.  The Minimum Royalty Payments
will not be additive, the highest Minimum Royalty Payment for a particular year
shall be paid and the Minimum Royalty Payment will continue until the last
patent expires.  Minimum Royalty Payments shall cease to be paid upon
the first commercial sale of Invention, only if royalties from commercial sales
exceed Minimum Royalty Payments.

       

      New
Minimum Royalty Payments

      
        
          
            
              
                
                  
                    
                      	
                              Royalty

                              for

                              Calendar

                              year

                            	 	
                              Gel Lock

                              Patent

                            	 	 	
                              Taurolidine

                              Treatment

                              Patent

                            	 	 	
                              Example:

                              First New

                              development

                              to inventions

                              Assume it

                              filed in 2009

                            	 	 	
                              Example:

                              Second New

                              development

                              to inventions

                              Assume it filed

                              in 2010

                            	 
	
                              2003

                            	 	 	0	 	 	 	 	 	 	[*	]	 	 	[*	]
	
                              2004

                            	 	 	0	 	 	 	0	 	 	 	 	 	 	 	 	 
	
                              05

                            	 	 	0	 	 	 	0	 	 	 	 	 	 	 	 	 
	
                              06

                            	 	 	0	 	 	 	0	 	 	 	 	 	 	 	 	 
	
                              07

                            	 	 	0	 	 	 	0	 	 	 	 	 	 	 	 	 
	
                              08

                            	 	$	25,000	 	 	 	0	 	 	 	 	 	 	 	 	 
	
                              09

                            	 	 	30,000	 	 	$	25,000	 	 	 	 	 	 	 	 	 
	
                              10

                            	 	 	40,000	 	 	 	30,000	 	 	 	 	 	 	 	 	 
	
                              11

                            	 	 	45,000	 	 	 	40,000	 	 	 	 	 	 	 	 	 
	
                              12

                            	 	 	45,000	 	 	 	45,000	 	 	 	 	 	 	 	 	 
	
                              13

                            	 	 	40,000	 	 	 	45,000	 	 	 	 	 	 	 	 	 
	
                              14

                            	 	 	30,000	 	 	 	40,000	 	 	 	 	 	 	 	 	 
	
                              15

                            	 	 	22,000	 	 	 	30,000	 	 	 	 	 	 	 	 	 
	
                              16

                            	 	 	15,000	 	 	 	22,000	 	 	 	 	 	 	 	 	 
	
                              17

                            	 	 	15,000	 	 	 	15,000	 	 	 	 	 	 	 	 	 
	
                              18

                            	 	 	15,000	 	 	 	15,000	 	 	 	 	 	 	 	 	 
	
                              19

                            	 	 	15,000	 	 	 	15,000	 	 	 	 	 	 	 	 	 
	
                              2020

                            	 	 	10,000	 	 	 	15,000	 	 	 	 	 	 	 	 	 
	
                              21

                            	 	 	10,000	 	 	 	10,000	 	 	 	 	 	 	 	 	 
	
                              22

                            	 	 	0	 	 	 	10,000	 	 	 	 	 	 	 	 	 
	
                              23

                            	 	 	0	 	 	 	0	 	 	 	 	 	 	 	 	 
	
                              24

                            	 	 	 	 	 	 	0	 	 	 	 	 	 	 	 	 
	
                              25

                            	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                              26

                            	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                              27

                            	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                              28

                            	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

                    

                  

                

              

            

          

        

      

      

      [*]
Certain information in this document has been omitted and filed separately with
the Securities and Exchange Commission.  Confidential treatment has
been requested with respect to the omitted portions.

       

      
        Table
3

        Note:
Starting year of each patent is the year patent filed in any country (Priority
date)

      

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      

      (c)           Notwithstanding
anything to the contrary in this Agreement, the Company shall no longer be
obligated to make any Royalty Payment or other payment with respect to any
Assets as to which the applicable patents have expired.

      

      5.            
Representations and
Warranties.  Consultant hereby represents and warrants to the
Company that:

      

      (a)           Except
for the rights previously transferred to the Company, Consultant is the
exclusive owner of, and has good, valid and marketable title to the Assets, free
and clear of all mortgages, pledges, charges, liens, security interests, or
other encumbrances or agreements, has the right to use without payment to a
third party all of the Assets and has the right to license the Assets to the
Company pursuant to the terms of this Agreement.  No claim is pending
or, to Consultant’s knowledge, threatened against Consultant to the effect that
(i) Consultant’s right, title and interest in and to the Assets is reduced,
invalid or unenforceable by Consultant or that any of the Assets infringes,
misappropriates, dilutes or otherwise violates the rights of a third party, or
(ii) challenging Consultant’s ownership or use of, or the validity,
enforceability or registerability of the Assets and, to the knowledge of
Consultant, there is no reasonable basis for a claim regarding any of the
foregoing.

      

      (b)           There
exists no prior act or current conduct or use by Consultant or any third party
that would void or invalidate any of the Assets, and Consultant has not brought
or threatened a claim against any person (i) alleging infringement,
misappropriation, dilution or any other violation of the Assets, or
(ii) challenging any person’s ownership or use of, or the validity,
enforceability or registerability of, any Assets and, to the knowledge of
Consultant, there is no reasonable basis for a claim regarding any of the
foregoing.

      

      [*]
Certain information in this document has been omitted and filed separately with
the Securities and Exchange Commission.  Confidential treatment has
been requested with respect to the omitted portions.

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      

      (c)           None
of the Assets infringes or is alleged to infringe any patent, trademark, service
mark, trade name, copyright or other proprietary right of any third party or is
a derivative work based on the work of any other person.

       

      6.           Company
may terminate the licensing agreement of an Asset by giving 60 days
notice.  If the Company terminates the licensing agreement of an Asset
then the rights associated with such asset shall revert back to
Consultant.  In this case the Consultant has the right to terminate
the Consulting Services.  Consultant may terminate the licensing
agreement of an Asset if no product has been made available to the market eight
years after the Effective Date or the priority date of any new patent, whatever
is later. Consultant may terminate the licensing agreement and/or the Consulting
Services upon the material breach of this Agreement by Company, provided that
such breach has not been cured by Company within sixty days of receipt of notice
from Consultant that Company is in breach.  In the event Consultant
terminates this Agreement, all rights of the Assets will revert to
Consultant.

      

      II.           CONSULTING
SERVICES.

      

      1.           Services.  From
time to time, the Company may request Consultant to perform Services on its
behalf.  If the Company requests Services from Consultant not related
to the Antimicrobial and Vascular Access Space, Consultant shall not be
obligated to perform such services but may, in his discretion, perform such
services on such terms and conditions as mutually agreed to between the Company
and Consultant.  In the event the Company requests Consultant to
perform Services on its behalf and such requested Services may conflict with
other obligations of Consultant, then Consultant shall immediately notify the
Company of such conflict, and the parties shall then work together in good faith
to resolve such conflict in a mutually beneficially manner to permit Consultant,
without violating any obligations to any other party, to perform such
Services.  The parties shall work together in good faith to set
reasonable deadlines and to communicate regularly to measure progress and to
adjust priorities, as may be necessary or appropriate from time to
time.

      

      2.           Time
Commitment.  Consultant agrees to make himself available to the
Company to perform the Services for at least thirty (30) days each calendar year
during the Consulting Period.  Company agrees to pay the equivalent of
at least thirty (30) days each calendar year to Consultant.

      

      [*]
Certain information in this document has been omitted and filed separately with
the Securities and Exchange Commission.  Confidential treatment has
been requested with respect to the omitted portions.

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      

      3.           Compensation of
Consultant.  The Company shall pay Consultant 200 Euros per
hour for Services consisting of scientific work, 250 Euros per hour for Services
consisting of legal work (which shall include, without limitation, Services
provided with respect to infringement cases and serving as an expert witness) or
such other compensation mutually agreed to between the Company and
Consultant.  Consultant shall be reimbursed by the Company for all
reasonable and bona fide business expenses which are pre-approved by the
Company.  Any request for reimbursement shall be accompanied by proper
receipts for the reimbursable amounts.

      

      4.           Non-Competition.  During
the term of this Agreement and the Non-Compete Period, Consultant shall not
engage in any business that competes, directly or indirectly, with the business
of the Company with respect to the Assets or with any other idea, invention or
activity within the Antimicrobial and Vascular Access
Space.  Consultant may, however, pursue ideas, inventions or
activities with respect to New Ideas to which the Company has waived or not
exercised in Right of First Refusal (as defined herein) in accordance with this
Agreement.  Consultant agrees and acknowledges that the restrictions
set forth in this paragraph are reasonable and necessary to protect legitimate
business interests of the Company and that payments to be made to Consultant
hereunder are in consideration of such restrictions and other rights transferred
to the Company hereunder.

      

      5.           Non-Solicitation.
Consultant agrees that until the end of the Non-Compete Period, Consultant
(whether as a partner, shareholder, member, owner, officer, director, employee,
principal, agent, creditor, trustee or consultant of any entity or otherwise)
will not, without the prior written consent of the Company, directly or
indirectly, (a) induce or attempt to influence any employee, consultant or
contractor of the Company or any of its subsidiaries to leave their employ, (b)
hire or contract with any person who is an employee, consultant or contractor of
Company or any of its subsidiaries, (c) aid or agree to aid any competitor,
customer or supplier of Company or any of its subsidiaries in any attempt to
hire any person who shall have been employed with Company or any of its
subsidiaries within the eighteen month period preceding such requested aid, or
(d) induce or attempt to influence any person or business entity who was a
customer, supplier or partner of Company or any of its subsidiaries during any
portion of the Non-Compete Period to transact business with a competitor of the
Company or any of its subsidiaries.

      

      [*]
Certain information in this document has been omitted and filed separately with
the Securities and Exchange Commission.  Confidential treatment has
been requested with respect to the omitted portions.

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      6.           Non-Disclosure.  Consultant
acknowledges that his relationship with the Company is one of high trust and
confidence in that in the course of his service to the Company, he will have
access to and contribute to confidential and proprietary information of the
Company.  Consultant agrees to hold in confidence and not to directly
or indirectly reveal, publish, disclose, or transfer any of the Confidential
Information to any person or entity without the prior written consent (which
shall include approval given via email) of the Company.  Consultant
agrees not to utilize Confidential Information for any purposes, except in the
course of Consultant’s rendering of services to the Company.  Any and
all materials furnished to Consultant by the Company or relating to the business
of the Company shall be returned to the Company upon the Company’s
request.  Consultant understands that the Company is now, and may
hereafter be subject to, non-disclosure or confidentiality agreements with third
parties that require the Company to protect and/or refrain from the use of
confidential or proprietary information of such third parties in accordance with
the terms set forth therein.  As directed by the Company, Consultant
hereby agrees to be bound by, and hereby becomes bound to, the terms of such
agreements in the event that Consultant has access to the confidential and
proprietary information of such third parties.

      

      7.           Assignment and Disclosure of
Developments.  If at times during the Consulting Period,
Consultant shall (either alone or with others), while performing Services for
the Company, make, conceive, create, discover, invent or reduce to practice any
invention, idea, composition, method, modification, discovery, design,
development, improvement, process, software program, work of authorship,
documentation, formula, data, technique, know-how, trade secret or intellectual
property right whatsoever or any interest therein, whether or not patentable or
registrable under patent, copyright, trademark or similar statutes or subject to
analogous protection (herein called “Developments”), and
if said “Developments” are directly related to the Assets then:

      

      (i)           such
Developments and the benefits thereof are and shall immediately become the sole,
exclusive and absolute property of the Company and its successors and assigns,
as “works made for hire” or otherwise to the fullest extent permissible by
law;

      

      (ii)          Consultant
shall promptly disclose to the Company (or any persons designated by it) each
such Development;

      

      (iii)         as
may be necessary to ensure the Company’s ownership of such Developments,
Consultant hereby assigns any rights (including, but not limited to, any
patents, copyrights and trademarks) he may have or acquire in the Developments
and benefits and/or rights resulting therefrom to the Company and its successors
and assigns without further consideration or compensation (other than royalties
and other amounts to be paid pursuant to this Agreement);

      

      (iv)         Consultant
shall communicate, without delay, and without disclosing to others the same, all
available information relating thereto (with all necessary documentation, code,
specifications, plans and models) to the Company; and

      

      [*]
Certain information in this document has been omitted and filed separately with
the Securities and Exchange Commission.  Confidential treatment has
been requested with respect to the omitted portions.

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

      

      (v)          Consultant
shall assist the Company in all respects in obtaining, maintaining and securing
any patent, copyright and/or other statutory or non-statutory protection which
may be obtained for the foregoing as the Company may request and hereby assigns
to the Company all rights and interests in and to any such patents, copyrights
and other protection.

      

      (vi)         Company
will compensate Consultant for these efforts according to the agreed consulting
rate and royalty payments due under this Agreement.

      

      8.    
       Cooperation in Perfecting
Rights to Developments.  Consultant will, during and after the
Consulting Period, at the request and sole cost of the Company, promptly sign,
execute, make and do all such deeds, documents, acts and things as the Company
and its duly authorized agents may reasonably require:

      

      (a)           to
apply for, obtain, register and vest in the name of the Company alone (unless
the Company otherwise directs) letters patent, copyrights, trademarks or other
analogous protection in any country throughout the world and when so obtained or
vested to renew and restore the same; and

      

      (b)           to
defend any judicial, opposition or other proceedings in respect of such
applications and any judicial, opposition or other proceedings or petitions or
applications for revocation of such letters patent, copyright, trademark or
other analogous protection.

      

      In the event the Company is unable,
after reasonable effort, to secure Consultant’s signature on any application for
letters patent, copyright or trademark registration or other documents regarding
any legal protection relating to a Development, whether because of Consultant’s
physical or mental incapacity or for any other reason whatsoever, Consultant
hereby irrevocably designates and appoints the Company and its duly authorized
officers and agents as Consultant’s agent and attorney-in-fact, to act for and
in Consultant’s behalf and stead to execute and file any such application or
applications or other documents and to do all other lawfully permitted acts to
further the prosecution and issuance of letters patent, copyright or trademark
registrations or any other legal protection thereon with the same legal force
and effect as if executed by Consultant.

      

      [*]
Certain information in this document has been omitted and filed separately with
the Securities and Exchange Commission.  Confidential treatment has
been requested with respect to the omitted portions.

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

      9.           No Violation of Rights of
Third Parties.  Consultant hereby represents that Consultant is
not a party to, or bound by the terms of, any agreement with any third party
which conflicts with this Agreement, including requiring Consultant to refrain
from using or disclosing any trade secret or confidential or proprietary
information in the course of Consultant’s consulting engagement with the Company
or to refrain from competing, directly or indirectly, with the business of such
third party.  Consultant further represents that the performance of
all the terms of this Agreement and Consultant’s performance as a consultant of
the Company does not and will not breach any agreement to keep in confidence
proprietary information, knowledge or data acquired by Consultant in confidence
or in trust prior to Consultant’s engagement as a consultant by the Company, and
Consultant will not disclose to the Company or induce the Company to use any
confidential or proprietary information or material belonging to any third
party.  Consultant has not entered into, and Consultant agrees not to
enter into, any agreement, either written or oral, in conflict with the terms of
this Agreement.

      

      10.         Right of First
Refusal.  If Consultant conceives of a New Idea expanding or
competing with the ideas laid out in the Assets during the Consulting Period and
the Company is interested in obtaining a license to such New Idea, Consultant
shall first offer to license the New Idea to the Company and the parties shall
work together in good faith towards the successful negotiation of such a
license.

      

      11.         Indemnification.  In
cases where any loss or damage results from or arises out of any
misrepresentation, any non-fulfillment of any representation, responsibility,
covenant or agreement on the part of either party hereto, or such party’s
negligence or misconduct (including but not limited to cases where a third party
initiates a claim, suit, judgment, or cause of action against the other party)
(collectively, the “Indemnifying Party”), the Indemnifying Party shall be solely
liable for, and shall indemnify, defend, and hold harmless the other party and
his or its Affiliates, strategic partners, managers, members, successors and
assigns from any such claims, suits, judgments, causes of action, losses, or
damages, and shall pay reasonable attorneys' fees, costs and expenses incident
thereto; provided, however, in no event shall either party to this Agreement be
liable for any amounts in excess of payments actually made to Consultant
pursuant to this Agreement.  For purposes of clarity, this paragraph
II.11 shall not apply in cases where the Indemnifying Party’s liability arose
from or relates to actions taken or not taken at the instruction of the other
party hereto and such indemnifying party takes or omits to take such action
while using his or its best efforts in furtherance thereof.

      

      12.         Taxes and Legal
Authority.  The parties acknowledge and agree that under this
Agreement, Consultant is and remains an independent contractor and in no way is
or shall become an employee or agent of the Company or its Affiliates either
under the laws of the United States of America, Austria or any other state,
country or territory.  Consultant is not the legal representative of
the Company for any purpose whatsoever (unless the Company, in writing,
specifically authorizes Consultant to so act), and Consultant shall not have the
power to bind or obligate the Company for any purpose
whatsoever.  Consultant agrees that he has and shall retain sole
responsibility for all employment taxes and insurance and all income taxes and
related taxes due under either the laws of the United States or any of its
political subdivisions or the laws of Austria or any of its political
subdivisions or taxes due or payable in any other state, country, or
territory.  The Company shall have the right to withhold taxes from
payments to Consultant if required to do so by either United States law or
Austrian law or by any international treaty.

      

      [*]
Certain information in this document has been omitted and filed separately with
the Securities and Exchange Commission.  Confidential treatment has
been requested with respect to the omitted portions.

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

      

      13.         Consultant
Rights.  Notwithstanding anything to the contrary contained
herein, Consultant shall have the right to write and publish papers regarding
the Assets and speak publicly about the Assets, provided, however, during the
consulting period Consultant shall deliver to the Company at least 30 days prior
to publication a copy of any proposed publication or writing relating to the
Assets and the Company shall have the right to review and approve the contents
of such publication or writing with respect to the Assets to ensure that the
speculations and/or conclusions in such publication or writing (a) are in line
with the Company’s interests and, (ii) do not violate any provision of this
Agreement.   This limitation does not apply to information
available in the public domain or data already generated prior to the Effective
Date.

      

      14.         Freedom to Conduct Business
Unimpaired.  Consultant acknowledges and agrees that the
Company, its Affiliates and their respective partners shall be free to pursue
their respective business goals and that Net Sales may be affected
thereby.  This Agreement shall not be deemed to impose any express or
implied obligation on the Company, its Affiliates or their respective partners
to maximize Net Sales for all or any portion of any period with respect to which
amounts may be payable hereunder or to impair the freedom of the Company, its
Affiliates or their respective partners to conduct their respective businesses
as they deem appropriate.

      

      III.         MISCELLANEOUS.

      

      1.           Injunctive
Relief.  Each of the parties hereto acknowledges that any
remedy at law for breach of the other party’s covenants under this Agreement
will be inadequate and, accordingly, in the event of any breach or threatened
breach of this Agreement, the non-breaching party shall be entitled, in addition
to all other remedies, to injunctive relief restraining any such breach, without
any bond or other security being required.

      

      2.           Non-Waiver.  No
delay or omission by either party hereto in exercising any right under this
Agreement shall operate as a waiver of that or any other right.  A
waiver or consent given by either party on any one occasion shall be effective
only in that instance and shall not be construed as a bar or waiver of any right
on any other occasion.

       

      3.           Amendment.  This
Agreement may be amended or modified only by a written instrument executed by
both the Company and Consultant.

      

      [*]
Certain information in this document has been omitted and filed separately with
the Securities and Exchange Commission.  Confidential treatment has
been requested with respect to the omitted portions.

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

       

      4.           Assignment.  This Agreement and the rights
and duties appertaining hereto may not be assigned by either party without first
obtaining the written consent of the other party, which consent shall not be
unreasonably withheld. Any such purported assignment without the written consent
of the other party shall be deemed null and void.  Notwithstanding the
foregoing, either party may assign this Agreement without the consent of the
other party (i) to a purchaser, merging, or consolidating corporation, or
acquirer of all or substantially all of the other party’s assets or business (or
that portion thereof to which this Agreement relates) and/or pursuant to any
reorganization of the party or (ii) to an Affiliate of the party.

       

      5.           Entire
Agreement.  This Agreement contains the entire understanding
between the parties regarding the subject matter hereof and supersedes, replaces
and takes precedence over any prior understanding or oral or written agreement
between the parties respecting the subject matter of this
Agreement.  There are no representations, agreements, arrangements,
nor understandings, oral or written, between the parties hereto relating to the
subject matter of this Agreement which are not fully expressed
herein.

       

      6.           Severability.  In
the event any provision of this Agreement shall be held invalid, the same shall
not invalidate or otherwise affect in any respect any other term or terms of
this Agreement, which term or terms shall remain in full force and
effect.

       

      7.           Arbitration. The
parties agree that any claim or dispute arising out of or relating to this
Agreement, its performance, or alleged breach which is not disposed of by
agreement of the parties shall be finally settled by binding arbitration in
Brussels in accordance with the Rules of Arbitration of the ICC as presently in
force by a single, impartial arbitrator, chosen mutually by the parties hereto.
The arbitrator shall have no jurisdiction to award punitive damages. Any award
in such arbitration shall be in writing in English specifying the factual and
legal basis therefor and shall be final and binding upon the parties, and
judgment upon the award rendered by the arbitrator may be entered in any court
having jurisdiction thereof.  The costs of an arbitrator (including
any required travel and lodging expenses of the arbitrator) shall be borne
one-half (1/2) by each party to the arbitration.  All other expenses
and costs incurred in connection with an arbitration hearing or proceeding shall
be paid by the party incurring such expenses or costs.  The procedures
described in this Section III.7 shall be the exclusive manner for any party
hereto to seek enforcement or interpretation of the terms of, or to resolve any
dispute under, this Agreement.  Notwithstanding anything to the
contrary in this Section III.7, the Company shall be permitted to enforce its
rights under Section III.1 in any court having jurisdiction.  The
parties hereto consent to the jurisdiction of any court located in London,
England for purposes of Section III.1 hereof and for purposes of enforcing an
arbitration award entered into accordance herewith.  This Agreement
shall be governed and construed by the laws of  London, England and
any arbitrator shall render any decision in accordance with such
laws.

      

      [*]
Certain information in this document has been omitted and filed separately with
the Securities and Exchange Commission.  Confidential treatment has
been requested with respect to the omitted portions.

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

       

      8.           Interpretation.  If
any restriction set forth in this Agreement is found by any court of competent
jurisdiction or arbitrator to be unenforceable because it extends for too long a
period of time or over too great a range of activities or in too broad a
geographic area, it shall be interpreted to extend only over the maximum period
of time, range of activities or geographic area as to which it may be
enforceable.

       

      9.           The
Product will carry information in the package insert and User manual stating the
patent numbers which cover the product.

       

      *
* * * *

      

      [*]
Certain information in this document has been omitted and filed separately with
the Securities and Exchange Commission.  Confidential treatment has
been requested with respect to the omitted portions.

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

      IN
WITNESS WHEREOF, the undersigned have executed this Agreement as of the date
first set forth above.

       

      
        
          
            
              
                
                  
                    	
                            COMPANY:

                          
	 
      
	
                            CorMedix
      Inc.

                          
	 
      
	
                            /s/
      Bruce Cooper

                          
	 
      	 
      
	
                            Name:

                          	
                            Bruce
      Cooper

                          
	
                            Its:

                          	
                            CEO

                          
	 
      	 
      
	
                            CONSULTANT:

                          
	 
      
	
                            /s/
      Hans-Dietrich Polaschegg

                          
	
                            Hans-Dietrich
      Polaschegg

                          

                  

                

              

            

          

        

      

      

      [*]
Certain information in this document has been omitted and filed separately with
the Securities and Exchange Commission.  Confidential treatment has
been requested with respect to the omitted portions.

      
        
           

        

        
          14

          
            

          

        

        
           

        

      

      EXHIBIT
A

      

      DEFINITIONS

      

      Breach
and the like shall mean:

      

      (a)           the
Company fails to make a Royalty Payment or any other royalty payment required to
be made by the Company to Consultant hereunder;

      

      (b)           the
Company fails to make any filing or payment required to keep an Asset current
within the extended period allowed; or

      

      (c)           the
Company does not file and pursue patent applications, divisionals, and/or
continuations-in-part for each Invention in each of the United States, Japan,
and the European Five, to the extent patent protection is available in each of
these countries (including all possible extensions of time).

      

      “Affiliate” shall mean
any partnership, corporation, other legal entity or person that directly or
indirectly through one or more intermediaries, controls, is controlled by, or is
under common control with, the Company.

      

      “Antimicrobial and Vascular
Access Space” shall mean: (a) composition, methods, and designs that
provide or enhance antimicrobial protection for medical devices and/or fluid
conduits for vascular access, (b) treatments, formulations, and methods of use
comprising Taurolidine, and not including (x) any improved and/or novel vascular
access devices and methods, work or method used for hydraulical or mechanical
characterization of access devices, e.g., hydraulic resistance, residence time,
flow, flow distribution, mechanical dimensions and strength, or (y) any work or
method for characterizing fistulas, grafts, blood vessels, detecting stenosis in
or blood loss from blood vessels or extracorporeal circuits).

       

      “Assets” shall mean
the Inventions, together with (A) all developments, know-how, and other
intellectual property rights, including but not limited to all trademarks,
copyrights and patents relating thereto, that relate to or derive from the
Inventions for any application, such as catheter lock gels, microbiology test
data and so forth, and (B) the Developments.

      

      [*]
Certain information in this document has been omitted and filed separately with
the Securities and Exchange Commission.  Confidential treatment has
been requested with respect to the omitted portions.

      
        
           

        

        
          15

          
            

          

        

        
           

        

      

      “Commercially Reasonable
Efforts” - means, with respect to Development and Commercialization, the
carrying out of obligations or tasks using efforts and resources, including
reasonably necessary personnel, equivalent to the efforts that a similarly
situated biotechnology or pharmaceutical company (as the case may be) would
typically devote to a product of similar market potential, profit potential and
strategic value and at a comparable stage in development or product life
resulting from its own research efforts with a view toward optimizing the
economic potential of the Licensed Product, based on conditions then prevailing
and taking into account issues of safety and efficacy, product profile,
difficulty in developing the Licensed Product, market  size and
conditions, competition, the patent or other proprietary position of the
Licensed Product, the regulatory structure involved and the potential
profitability of the Licensed Product marketed or to be marketed.

       

      “Confidential
Information” means information or material proprietary to the Company or
designated as confidential by the Company, which Consultant develops or of which
he may obtain knowledge or access to as a result of his relationship with the
Company.  This includes information originated, discovered, or
developed in whole or in part by Consultant under this Agreement and includes,
but is not limited to the following types of information and other information
of a similar nature (whether or not reduced to writing): business plans, methods
and practices of doing business, financial information and terms and conditions
of current contractual relations with customers and/or suppliers, pricing
information, and customer and supplier lists.  Confidential
Information also includes any information which the Company treats as
proprietary or designates as confidential, whether or not owned or developed by
the Company.

      

      “Consulting Period”
shall mean the period commencing on the date of this Agreement and terminating
on the third anniversary hereof.

      

      “Gel Lock Invention”
shall mean the U.S. patent application #20040156908 titled “Prevention of
Indwelling Device Related Infection: Composition and Methods”, together will all
divisionals, continuations-in-part and all other associated U.S. and foreign
applications filed or to be filed in connection therewith.

      

      “Inventions” shall
mean the Gel Lock Invention and the Treatments Invention, collectively, and each
of the Inventions shall be an “Invention”.

      

      “License” shall mean
an exclusive, worldwide, perpetual, non-terminable, fully paid-up (subject to
royalties  and terms described in this Agreement) license to the
Assets to practice, make, use, offer to sell, sell, design, reproduce, market,
display, operate, transfer or dispose of the Assets.

      

      [*]
Certain information in this document has been omitted and filed separately with
the Securities and Exchange Commission.  Confidential treatment has
been requested with respect to the omitted portions.

      
        
           

        

        
          16

          
            

          

        

        
           

        

      

      

      “Net Sales” shall mean
the invoiced price of a Product sold commercially by the Company, its Affiliates
or any of their strategic partners minus all discounts, allowances, returns,
rebates, transportation costs, shipping costs, insurance charges, duties,
value-added taxes and sales taxes.  The invoiced price of Products
sold by the Company, its Affiliates or any of their respective strategic
partners to any of its or their respective Affiliates for the purpose of resale
by such party shall not be included in Net Sales, but the resale of such
Products by such parties shall be included in Net Sales.

      

      “New Idea” shall mean
any idea, composition, method, modification, discovery, design, development,
improvement, process, technique, know-how or intellectual property in the field
of or related to the Antimicrobial and Vascular Access Space developed,
conceived of or created outside of the consulting relationship between
Consultant and the Company, and to which no third party (other than Consultant)
has any rights.

      

      “Non-Compete Period”
shall mean a period commencing on the date hereof and continuing for six (6)
months after the later of (a) the termination of this Agreement, or (b) the
latest date on which the Company is obligated to make a Royalty Payment or any
other royalty payment hereunder.

      

      “Services” shall
include, without limitation, providing research and development assistance on
catheter lock gels, sepsis treatments, and other potential products that may be
derived from the Assets, producing embodiments of such potential products,
providing advice and assistance with respect to maintenance of the Assets, using
reasonable best efforts to obtain, protect and enforce all legal protections for
inventions relating to the Assets and assisting the Company with its
development, marketing and sales of products and services in the Antimicrobial
and Vascular Access Space.

      

      “Treatments Invention”
shall mean the provisional U.S. patent application filed on April 28, 2004
titled “Taurolidine Formulations and Delivery: Therapeutic Treatments and
Antimicrobial Protection against Bacterial Biofilm Formation”, together with
patent applications, divisionals, continuations-in-part, and all other
associated U.S. and foreign applications filed or to be filed.

      

      [*]
Certain information in this document has been omitted and filed separately with
the Securities and Exchange Commission.  Confidential treatment has
been requested with respect to the omitted portions.

      
        
           

        

        
          17

          
            

          

        

        
           

        

      

      EXHIBIT
B

      

      Royalty
Payment Calculations and Sample Example

      

      [*]

      

      [*]
Certain information in this document has been omitted and filed separately with
the Securities and Exchange Commission.  Confidential treatment has
been requested with respect to the omitted portions.

      
        
           

        

        
          18Unassociated Document

    
      Exhibit 10.8

       

       

      CORMEDIX
INC.

      

      Amended and Restated 2006
Stock Incentive Plan

      

      1.           Purpose.  This
Amended and Restated 2006 Stock Incentive Plan (the “Plan”) has been adopted by the
Board of Directors (the “Board”) of CorMedix Inc. (the
“Company”), and is
effective, subject to the approval of the Company’s stockholders.  The
Plan constitutes an amendment, restatement and continuation of the 2006 Stock
Incentive Plan, as it existed prior to this restatement.

      

      The
purpose of the Plan is to promote the long-term success of the Company by
attracting, motivating and retaining directors, officers, employees, advisors
and consultants of, and others providing services to, the Company and its
affiliates through the use of competitive long-term incentives which are tied to
stockholder value.  The Plan seeks to balance the interest of Plan
participants and stockholders by providing incentives in the form of stock
options, restricted stock, performance awards, and stock appreciation rights, as
well as other stock-based awards relating to the Company’s common stock, $0.001
par value (“Common
Stock”), to be granted under the Plan and consistent with the terms of
the Plan (“Awards”).

      

      2.           Administration.

      

      2.1.           The
Plan shall be administered by the Compensation Committee (the “Committee”) of the
Board.  The Committee shall consist of not less than two directors of
the Company who shall be appointed from time to time by the
Board.  Each member of the Committee shall be a “non-employee
director” within the meaning of Rule 16b-3 of the Exchange Act of 1934, as
amended (together with the rules and regulations promulgated thereunder, the
“Exchange Act”), and an
“outside director” as defined in Section 162(m) of the Internal Revenue Code of
1986, as amended (the “Code”).  The
Committee shall have complete authority to determine all provisions of all
Awards, to interpret the Plan, and to make any other determination which it
believes necessary and advisable for the proper administration of the
Plan.  The Committee’s decisions on matters relating to the Plan shall
be final and conclusive on the Company and the Participants.  No
member of the Committee will be liable for any action or determination made in
good faith with respect to the Plan or any Awards granted under the
Plan.  The Committee will also have the authority under the Plan to
amend or modify the terms of any outstanding Awards in any manner; provided,
however, that the amended or modified terms are permitted by the Plan as then in
effect and that any recipient of an Award adversely affected by such amended or
modified terms has consented to such amendment or modification.  No
amendment or modification to an Award, however, whether pursuant to this Section
2 or any other provisions of the Plan, will be deemed to be a re-grant of such
Award for purposes of the Plan.  If at any time there is no Committee,
then for purposes of the Plan the term “Committee” shall mean the
Board.

       

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

      2.2.           Subject
to any applicable requirements of Code Section 409A, to the extent that an Award
would otherwise be subject to Code Section 409A, the Committee may permit or
require a recipient of an Award to defer such individual’s receipt of the
payment of cash or the delivery of Common Stock that would otherwise be due to
such individual by virtue of the exercise of, payment of, or lapse or waiver of
restrictions respecting, any Award.  If any such payment deferral is
required or permitted, the Committee shall, in its sole discretion, establish
rules and procedures for such payment deferrals.  The maximum term for
any Award shall not exceed ten years from the date of the grant of such Award,
provided, however, in the case of an Incentive Stock Option granted to a
Participant who, at the time such Incentive Stock Option is granted, owns
(within the meaning of Section 424(d) of the Code) more than 10% of the total
combined voting power of all classes of stock of the Company or of any affiliate
thereof, no such Incentive Stock Option shall be exercisable more than five
years after the date such incentive stock option is granted.

      

      3.           Eligible
Participants.  Employees of the Company or its subsidiaries
(including officers and other employees of the Company or its subsidiaries),
directors, consultants, advisors or other independent contractors who provide
services to the Company or its subsidiaries (including members of the Company’s
scientific advisory board) (“Participants”) shall become
eligible to receive Awards under the Plan when designated by the Committee,
provided, however, that Awards of Incentive Stock Options may only be awarded to
employees of the Company or its subsidiaries.  Participants may be
designated individually or by groups or categories (for example, by pay grade)
as the Committee deems appropriate.  Participation by officers of the
Company or its subsidiaries and any performance objectives relating to such
officers must be approved by the Committee.  Participation by others
and any performance objectives relating to others may be approved by groups or
categories (for example, by pay grade) and authority to designate Participants
who are not officers and to set or modify such targets may be delegated to the
Company’s executive management.

      

      4.           Types of
Awards.  Awards under the Plan may be granted in any one or a
combination of the following forms:  (a) Incentive Stock Options and
Non-Qualified Stock Options (Section 6); (b) restricted stock (Section 7); (c)
performance awards (Section 8); and (d) other awards (Section
8).   Incentive Stock Options may only be granted to employees of
the Company.  The terms of an Award may be evidenced by an agreement
entered into by and between the Company and a Participant at the time the Award
is granted (which may include an employment agreement or consulting agreement by
and between the Company and the Participant) (the “Award
Agreement”).  In the event of any inconsistency between the
terms of the Award Agreement and the Plan, the terms of the Plan shall
govern.  In the event of any inconsistency between the terms of any
employment agreement and any other Award Agreement, the terms of the employment
agreement shall govern.

      

      5.           Shares Subject to the
Plan.

      

      5.1.           Number of
Shares.  Subject to adjustment as provided in Section 10.5, the
number of shares of Common Stock which may be issued under the Plan shall not
exceed 2,300,000 shares of Common Stock.  Of such aggregate number of
shares of Common Stock that may be issued under the Plan, the maximum number of
shares that may be issued as Incentive Stock Options under Section 422 of the
Code is 2,300,000.  Any shares of Common Stock available for issuance
as Incentive Stock Options may be alternatively issued as other types of Awards
under the Plan.  Shares of Common Stock that are issued under the Plan
or that are subject to outstanding Awards will be applied to reduce the maximum
number of shares of Common Stock remaining available for issuance under the
Plan.  No Participant may be granted Awards under the Plan with
respect to more than 300,000 shares of Common Stock in any year, except that
this restriction shall not apply to options granted upon the completion of the
Company’s initial public offering of its securities.

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      5.2.           Cancellation.  Except
as otherwise required by Section 162(m) of the Code, in the event that a stock
option granted hereunder expires or is terminated or canceled unexercised or
unvested as to any shares of Common Stock, such shares may again be issued under
the Plan either pursuant to stock options or otherwise.  In the event
that shares of Common Stock are issued as restricted stock or as part of another
Award and thereafter are forfeited or reacquired by the Company pursuant to
rights reserved upon issuance thereof, such forfeited and reacquired shares may
again be issued under the Plan, either as restricted stock or
otherwise.

      

      6.           Stock
Options.  The Committee shall determine for each option the
number of shares of Common Stock for which the option is granted, whether the
option is to be treated as an Incentive Stock Option or as a Non-Qualified Stock
Option and all other terms and conditions of the option not inconsistent with
the Plan.  Options granted pursuant to the Plan shall comply with and
be subject to the following terms and conditions:

      

      6.1.           Option
Price.  The exercise price for each option shall be established
in the sole discretion of the Committee, provided it shall not be less than the
Fair Market Value of a share of Common Stock on the date of grant, and provided further, that
the exercise price per share of an Incentive Stock Option granted to a
Participant who, at the time of the grant, owns stock possessing more than 10%
of the total combined voting power of all classes of stock of the Company,
within the meaning of Section 422(b)(6) of the Code (a “Ten Percent Owner”),
shall be not less than 110% of the Fair Market Value of a share of Common Stock
on the date the option is granted.  Notwithstanding the foregoing, an
option may be granted by the Committee in its discretion with an exercise price
lower than the minimum exercise price set forth above if such option is granted
pursuant to an assumption or substitution for another option in a manner
qualifying with the provisions of Section 424(a) and 409A of the Code to the
extent applicable.  Nothing hereinabove shall require that any such
assumption or modification will result in the option having the same
characteristics, attributes or tax treatment as the option for which it is
substituted.

      

      6.2.           Exercise Period of
Options.  The Committee shall have the power to set the time or
times within which each option shall be exercisable, or the event or events upon
the occurrence of which all or a portion of each option shall be exercisable,
and the term of each option; provided, however, that (a) no Incentive Stock
Option shall be exercisable after the expiration of ten years after the date
such Incentive Stock Option is granted, and (b) no Incentive Stock Option
granted to a Ten Percent Owner shall be exercisable after the expiration of five
years after the date such Incentive Stock Option is granted.  Unless
otherwise specifically provided in an Award Agreement, an option shall terminate
and cease to be exercisable no later than ninety (90) days after the date on
which the Participant’s employment with or service to the Company or a
subsidiary terminates.

      

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      6.3.           Payment of Option
Price.  Payment of the exercise price for the number of shares
being purchased pursuant to any option shall be made in any manner permitted by
the Committee, including, but not limited to: (a) payment in cash, (b) by check
or cash equivalent, (c) with the consent of the Committee, by delivery or
attestation of ownership of a number of shares of Common Stock that have been
owned by the Participant for at least six months (or such other period as
necessary to prevent an accounting charge) with a Fair Market Value equal to the
exercise price, (d) with the consent of the Committee, by delivery of a stock
power and instructions to a broker to sell a sufficient number of shares of
Common Stock subject to the option to pay such exercise price, (e) such other
consideration as the Committee determines is consistent with the Plan and
applicable law, or (f) with the consent of the Committee, any combination of the
foregoing methods.  Any shares of Common Stock used to exercise
options (including shares withheld upon the exercise of an option to pay the
exercise price of the option) shall be valued at their Fair Market Value. If the Committee, in its
discretion, permits the consideration to be paid through a broker-dealer sale
and remittance procedure, the Committee may require the Participant (a) to
provide irrevocable written instructions to a designated brokerage firm to
effect the immediate sale of a sufficient number of the purchased shares to pay
the Company, out of the sale proceeds available on the settlement date,
sufficient funds to cover the aggregate option exercise price payable for the
purchased shares and/or all applicable Federal and State income and employment
taxes required to be withheld by the Company in connection with such purchase,
(b) to provide written directives to the Company to deliver the certificates for
the purchased shares directly to such brokerage firm in order to complete the
sale transaction, and (c) to provide irrevocable instructions to the brokerage
firm to remit such sale proceeds to the Company.

      

      6.4.           $100,000
Limitation.  The aggregate Fair Market Value, determined as of
the date on which an Incentive Stock Option is granted, of the shares of Common
Stock with respect to which Incentive Stock Options are first exercisable during
any calendar year (under the Plan or under any other plan of the Company) by any
Participant shall not exceed $100,000 or such other limitation imposed under
Section 422 of the Code.  If such limitation would be exceeded with
respect to a Participant for a calendar year, the Incentive Stock Option shall
be deemed a Non-Qualified Stock Option to the extent of such
excess.

      

      7.           Restricted
Stock.

      

      7.1.           Awards of Restricted
Stock.  Restricted shares of Common Stock may be granted under
the Plan in such form and on such terms and conditions as the Committee may from
time to time approve, including, without limitation, restrictions on the sale,
assignment, transfer or other disposition or encumbrance of such shares of
Common Stock during the Restricted Period (as defined below) and the requirement
that the Participant forfeit such shares back to the Company without any
consideration paid by the Company therefor upon failure to satisfy within the
Restricted Period the requirements set forth in the Award
Agreement.  Restricted stock may be granted alone or in addition to
other Awards under the Plan.  The grant of any restricted stock by the
Company shall be evidenced by an Award Agreement.

       

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      7.2.           Restricted
Period.  The Committee shall establish the “Restricted Period” with
respect to each award of restricted stock.  The Committee may, in its
sole discretion, at the time an award of restricted stock is made, prescribe
conditions for the lapse or termination of all or a portion of the restrictions
upon the satisfaction prior to the expiration of the Restricted Period of the
requirements set forth in the Award Agreement.  The Committee also
may, in its sole discretion, shorten or terminate the Restricted Period or waive
any conditions for the lapse or termination of restrictions with respect to all
or any portion of the restricted stock.

      

      Except as
otherwise provided in an Award Agreement, a Participant shall cease vesting in
all or any portion of a restricted stock award as of the date his employment
with or service to the Company or a subsidiary terminates, for whatever reason,
and any shares of restricted stock that are not vested as of such date shall be
forfeited; provided the Committee may, in its discretion, provide that a
Participant whose employment with or service to the Company terminates for any
reason (including as a result of death or disability) and/or following a Change
in Control, may vest in all or any portion of his restricted stock
award.  Any restricted stock award not so vested shall be
forfeited.

      

      7.4.           Rights of Holders of
Restricted Stock.  Except as otherwise provided in the Award
Agreement or except as otherwise provided in the Plan, the Participant shall be
the owner of the restricted stock and shall have all the rights of a
stockholder, including the right to receive dividends paid on such restricted
stock and the right to vote such restricted stock.

      

      7.5.           Delivery of Restricted
Stock.  Restricted stock awarded to a Participant under the
Plan may be held under the Participant’s name in a book entry account maintained
by the Company or, if not so held, stock certificates for restricted stock
awarded pursuant to the Plan may be registered in the name of the Participant
and issued and deposited, together with a stock power endorsed in blank, with
the Company or an agent appointed by the Company and shall bear an appropriate
legend restricting the transferability thereof.  Subject to Section
10.4 below, a Participant shall be entitled to delivery of stock certificates
only when he or she becomes vested in accordance with the terms of his or her
restricted stock award.

      

      8.           Performance Awards and Other
Awards.

       

      8.1.           Performance
Awards.  The Committee is authorized, in its sole discretion,
to grant performance awards to Participants on the following terms and
conditions:

       

      (a)           Awards and
Conditions.  A performance award shall confer upon the
Participant rights, valued as determined by the Committee, and payable to, or
exercisable by, the Participant to whom the performance award is granted, in
whole or in part, as determined by the Committee, conditioned upon the
achievement of performance criteria determined by the
Committee.  Performance goals established by the Committee shall be
based on objectively determinable performance goals selected by the Committee
that apply to an individual or group of individuals, or the Company as a whole,
over such a performance period as the Committee may designate.  The
performance goals shall be based on one or more of the following criteria:
EBITDA, stock price, earnings per share, net earnings, operating or other
earnings, profits, revenues, net cash flow, financial return ratios, return on
assets, stockholder return, return on equity, growth in assets, market share or
strategic business criteria consisting of one or more objectives based on
meeting specified revenue goals, market penetration goals, geographic business
expansion goals or goals relating to acquisitions or strategic
partnerships.  “EBITDA” means earnings before
interest, taxes, depreciation and amortization.  A performance goal
need not be based on an increase or positive result.

       

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

       

      (b)           Other
Terms.  A performance award shall be denominated in shares of
Common Stock and may be payable in cash, shares of Common Stock, other Awards,
or any combination thereof, and shall have such other terms as shall be
determined by the Committee.

       

      (c)           Performance-Based
Awards.  Performance awards, as well as restricted stock with
performance-based vesting provisions, and certain other Awards subject to
performance criteria, are intended to be “qualified performance-based
compensation” within the meaning of Section 162(m) of the Code and shall be paid
solely on account of the attainment of one or more pre-established, objective
performance goals within the meaning of Section 162(m) and the regulations
thereunder.

       

      The
payout of any such Award to a Participant may be reduced, but not increased,
based on the degree of attainment of performance criteria, or otherwise at the
discretion of the Committee, as may be provided in the Award
Agreement.

       

      8.2.           Stock Appreciation
Rights.  The Committee is authorized, in its sole discretion,
to grant stock appreciation rights to Participants on the following terms and
conditions:

       

      (a)           Right to
Payment.  A stock appreciation right shall confer on the
Participant to whom it is granted a right to receive payment in cash or shares
of Common Stock (at the discretion of the Committee), upon exercise of a stock
appreciation right, an amount equal to the excess of (i) the Fair Market Value
of one share of Common Stock on the date of exercise (or, if the Committee shall
so determine in the case of any such right, other than one related to an
Incentive Stock Option, the Fair Market Value of one share of Common Stock at
any time during a specified period before or after the date of exercise or a
Change in Control) over (ii) the grant price of the stock appreciation right as
determined by the Committee as of the date of grant of the stock appreciation
right.

       

      (b)           Other
Terms.  The Committee shall determine the time or times at
which a stock appreciation right may be exercised in whole or in part, the
method of exercise, method of settlement, form of consideration payable in
settlement, method by which shares (if any) will be delivered or deemed to be
delivered to Participants, and any other terms and conditions of any stock
appreciation right.  Such stock appreciation right shall be evidenced
by an Award Agreement in such form as the Committee shall from time to time
approve.

       

      
        
           

        

        
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      8.3.           Bonus and Other Stock-Based
Awards.  The Committee is authorized, in its sole discretion,
to grant to Participants such other Awards that are denominated or payable in,
valued in whole or in part by reference to, or otherwise based on or related to,
shares of Common Stock, as deemed by the Committee to be consistent with the
purposes of the Plan, including without limitation, shares of Common Stock
awarded purely as a “bonus” and not subject to any restrictions or conditions,
convertible or exchangeable debt securities, other rights convertible or
exchangeable into shares of Common Stock, purchase rights, and Awards valued by
reference to the value of shares of Common Stock or the value of securities of
or the performance of the Company.  The Committee shall determine the
terms and conditions of such Awards, which may include performance
criteria.  Shares delivered pursuant to an Award in the nature of a
purchase right granted under this Section 8.3 shall be purchased for such
consideration, paid for at such times, by such methods, and in such forms,
including, without limitation, cash, shares of Common Stock, other Awards, or
other property, as the Committee shall determine.

       

      9.           Change in
Control.

      

      9.1.           Definition.  For
purposes of this Section 9, a “Change in Control” means,
except as otherwise provided in any Award Agreement of a
Participant:

      

      (a)           the
merger or consolidation of the Company into
another entity unless the stockholders of the Company immediately prior to such
merger or consolidation own, directly or indirectly, more than 50% of the total
combined voting power of the surviving entity’s outstanding securities
immediately after such merger or consolidation;

      

      (b)           the
sale, transfer or other disposition of all or substantially all of the assets of
the Company other
than to a person that directly or indirectly controls, is controlled by or is
under common control with the Company prior to such disposition;

      

      (c)           the
liquidation or dissolution of the Company other than in connection
with the merger or consolidation of the Company with and into another entity if
stockholders of the Company immediately prior to such merger or consolidation
own, directly or indirectly, more than 50% of the total combined voting power of
the surviving entity’s outstanding securities immediately after such merger or
consolidation;

      

      (d)           the
acquisition, directly or indirectly, by any person or related group of persons
(other than the Company, a person that directly or indirectly controls or is
controlled by or is under common control with the Company) of the beneficial
ownership (within the meaning of Rule 13d-3 of the Exchange Act) of securities
possessing more than 50% of the total combined voting power of the Company’s
outstanding securities; or

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      

      (e)           a
change in the composition of the Board over a period of 12 consecutive months or
less such that a majority of the members of the Board cease, by reason of
one or more contested elections of Board membership, to be comprised of
individuals who have been nominated for election as Board members by a majority
of the Board members immediately preceding such election.

      

      9.2.           Effect of Change in Control
Transactions.  Upon the occurrence of a Change in Control,
except to the extent otherwise provided in a particular Participant’s Award
Agreement, all Awards shall become fully vested and, with respect to any Award
that is an option or stock appreciation right, exercisable in
full.  Each Participant will be afforded an opportunity to exercise
his or her options or stock appreciation rights immediately prior to the
occurrence of the Change in Control (and conditioned upon the consummation of
the Change in Control) so he or she can participate in the transaction if he or
she desires.

       

      10.           General.

      

      10.1.        Effective
Date.  The Plan will become effective upon its approval by the
Board, except that the Plan will automatically terminate if it is not approved
by the Company’s stockholders within one year of its approval by the
Board.

      

      10.2.        Term.  No
Awards may be granted under the Plan after the tenth anniversary of the date the
Plan is approved by the stockholders of the Company.

      

      10.3.        Non-transferability of
Awards.  Except, in the event of the Participant’s death, by
will or the laws of descent and distribution to the limited extent provided in
the Plan or the Award Agreement, unless approved by the Committee, no stock
option, restricted stock, performance award or other Award may be transferred,
pledged or assigned by the holder thereof, either voluntarily or involuntarily,
directly or indirectly, by operation of law or otherwise, and the Company shall
not be required to recognize any attempted assignment of such rights by any
Participant.  During a Participant’s lifetime, an Award may be
exercised only by him or her or by his or her guardian or legal
representative.

       

      
        
           

        

        
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      10.4.        Additional
Conditions.  Notwithstanding anything in the Plan to the
contrary: (a) the Company may, if it shall determine it necessary or desirable
for any reason, at the time of award of any Award or the issuance of any shares
of Common Stock pursuant to any Award, require the recipient of the Award, as a
condition to the receipt thereof or to the receipt of shares of Common Stock
issued pursuant thereto, to deliver to the Company a written representation of
present intention to acquire the Award or the shares of Common Stock issued
pursuant thereto for his or her own account for investment and not for
distribution; and (b) if at any time the Company further determines, in its sole
discretion, that the listing, registration or qualification (or any updating of
any such document) of any Award or the shares of Common Stock issuable pursuant
thereto is necessary on any securities exchange or under any federal or state
securities or blue sky law, or that the consent or approval of any governmental
regulatory body is necessary or desirable as a condition of, or in connection
with the award of any Award, the issuance of shares of Common Stock pursuant
thereto, or the removal of any restrictions imposed on such shares, such Award
shall not be awarded or such shares of Common Stock shall not be issued or such
restrictions shall not be removed, 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
Company.  Notwithstanding any other provision of the Plan or any
agreements entered into pursuant to the Plan, the Company will not be required
to issue any shares of Common Stock under the Plan, and a Participant may not
sell, assign, transfer or otherwise dispose of shares of Common Stock issued
pursuant to any Awards granted under the Plan, unless (a) there is in
effect with respect to such shares a registration statement under the Securities
Act of 1933, as amended (the “Securities Act”), and any
applicable state or foreign securities laws or an exemption from such
registration under the Securities Act and applicable state or foreign securities
laws, and (b) there has been obtained any other consent, approval or permit
from any other regulatory body which the Committee, in its sole discretion,
deems necessary or advisable.  The Company may condition such
issuance, sale or transfer upon the receipt of any representations or agreements
from the parties involved, and the placement of any legends on certificates
representing shares of Common Stock, as may be deemed necessary or advisable by
the Company in order to comply with such securities law or other
restrictions.  The Committee may restrict the rights of Participants
to the extent necessary to comply with Section 16(b) of the Exchange Act, the
Code or any other applicable law or regulation. The grant of an 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.

      

      10.5.        Adjustment.  In
the event of any merger, consolidation or reorganization of the Company with any
other corporation or corporations, there shall be substituted for each of the
shares of Common Stock then subject to the Plan, including shares subject to
restrictions, options, or achievement of performance objectives, the number and
kind of shares of stock or other securities to which the holders of the shares
of Common Stock will be entitled pursuant to the transaction.  In the
event of any recapitalization, reclassification, stock dividend, stock split,
combination of shares or other similar change in the corporate structure of the
Company or capitalization of the Company, the exercise price of an outstanding
Award and the number of shares of Common Stock then subject to the Plan, and the
maximum number of shares with respect to which Awards may be granted in any
year, including shares subject to restrictions, options or achievements of
performance shares, shall be adjusted in proportion to the change in outstanding
shares of Common Stock in order to prevent dilution or enlargement of the rights
of the Participants.  Notwithstanding the foregoing, the number of
shares of Common Stock which may be issued under the Plan shall not be adjusted
as a result of the reverse stock split of the Common Stock effected on February
24, 2010.  In the event of any such adjustments, the purchase price of
any option, the performance objectives of any Award, and the shares of Common
Stock issuable pursuant to any Award shall be adjusted as and to the extent
appropriate, in the discretion of the Committee, to provide Participants with
the same relative rights before and after such adjustment.  The
adjustments described above will be made in a manner consistent with Section
162(m) and Section 409A of the Code.

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

      

      10.6.        Incentive Plans and
Agreements.  The terms of each Award shall be stated in a plan
or Award Agreement approved by the Committee.  The Committee may also
determine to enter into agreements with holders of options to reclassify or
convert certain outstanding options, within the terms of the Plan, as Incentive
Stock Options or as Non-Qualified Stock Options.

      

      10.7.        Withholding.

      

      (a)           The
Company shall have the right to (i) withhold and deduct from any payments made
under the Plan or from future wages of the Participant (or from other amounts
that may be due and owing to the Participant from the Company or a subsidiary of
the Company), or make other arrangements for the collection of, all legally
required amounts necessary to satisfy any and all foreign, federal, state and
local withholding and employment-related tax requirements attributable to an
Award, or (ii) require the Participant promptly to remit the amount of such
withholding to the Company before taking any action, including issuing any
shares of Common Stock, with respect to an Award.  At any time when a
Participant is required to pay to the Company an amount required to be withheld
under applicable income tax laws in connection with a distribution of Common
Stock or upon exercise of an option, the Participant, with the prior consent of
the Committee, may satisfy this obligation in whole or in part by electing to
have the Company withhold from the distribution shares of Common Stock having a
value up to the minimum amount required to be withheld.  The value of
the shares to be withheld shall be based on the Fair Market Value of the Common
Stock on the date that the amount of tax to be withheld shall be
determined.

      

      (b)           If
the option granted to a Participant hereunder is an Incentive Stock Option, and
if the Participant sells or otherwise disposes of any of the shares of Common
Stock acquired pursuant to the Incentive Stock Option on or before the later of
(i) the date two years after the date of grant, or (ii) the date one year after
the date of exercise, the Participant shall immediately notify the Company in
writing of such disposition.

      

      10.8.        No Continued Employment,
Engagement or Right to Corporate Assets.  No Participant under
the Plan shall have any right, because of his or her participation in the Plan,
to continue in the employ of the Company for any period of time or to any right
to continue his or her present or any other rate of
compensation.  Nothing contained in the Plan shall be construed as
giving an employee, consultant, such persons’ beneficiaries or any other person
any equity or interests of any kind in the assets of the Company or creating a
trust of any kind or a fiduciary relationship of any kind between the Company
and any such person.

      

      10.9.        Amendment of the
Plan.  The Board may amend, suspend or discontinue the Plan at
any time; provided, however, that no amendments to the Plan will be effective
without approval of the stockholders of the Company if stockholder approval of
the amendment is then required pursuant to Section 422 or Section 162(m) of the
Code, the regulations promulgated thereunder or the rules of any securities
exchange or similar regulatory body.  Except as provided in Section
10.17, no termination, suspension or amendment of the Plan may adversely affect
any outstanding Award without the consent of the affected Participant or his or
her beneficiary; provided, however, that this sentence will not impair the right
of the Committee to take whatever action it deems appropriate under the
Plan.

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

       

      10.10.      Definition of Fair Market
Value. For purposes of the Plan, the “Fair Market Value” of a share
of Common Stock at a specified date means, so long as the Common Stock is traded
on a nationally recognized securities exchange or automated dealer quotation
system, the closing price of the Common Stock on that day.  If the
Common Stock is not traded on such an exchange or system and is traded solely on
the over-the-counter market, the Fair Market Value shall be the average of the
closing bid and asked prices for that day.  If the Common Stock is not
publically traded, then Fair Market Value shall mean the value assigned to a
share for a given day by the Committee in good faith in the exercise of its
reasonable discretion and in a manner consistent with Code Section
409A.

      

      10.11.      Breach of Confidentiality,
Assignment of Inventions, or Non-Compete Agreements. Notwithstanding
anything in the Plan to the contrary, in the event that a Participant materially
breaches the terms of any confidentiality, assignment of inventions, or
non-compete agreement entered into with the Company or any subsidiary of the
Company, whether such breach occurs before or after termination of such
Participant’s employment with or service to the Company or any subsidiary, the
Committee in its sole discretion may immediately terminate all rights of the
Participant under the Plan and any agreements evidencing an Award then held by
the Participant, whether or not vested, without notice of any kind. To the
extent that any Participant has been paid in cash, the Company may seek to
recover such payment.

      

      10.12.      Governing
Law.  The validity, construction, interpretation,
administration and effect of the Plan and any rules, regulations and actions
relating to the Plan will be governed by and construed exclusively in accordance
with the laws of the State of New York, notwithstanding the conflicts of laws
principles of any jurisdictions.

      

      10.13.      Successors and
Assigns.  The Plan will be binding upon and inure to the
benefit of the successors and permitted assigns of the Company and the
Participants.

      

      10.14.      Lock-up
Agreement.  Each recipient of securities hereunder agrees, in
connection with the first registration with the United States Securities and
Exchange Commission under the Securities Act of 1933, as amended, of the public
sale of any of the Company’s securities, not to sell, make any short sale of,
loan, grant any option for the purchase of or otherwise dispose of any
securities of the Company (other than those included in the registration)
without the prior written consent of the Company or such underwriters, as the
case may be, for such period of time (not to exceed 180 days) from the effective
date of such registration as the Company or the underwriters, as the case may
be, shall specify.  Each such recipient agrees that the Company may
instruct its transfer agent to place stop-transfer notations in its records to
enforce this Section 10.14.  Each such recipient agrees to execute a
form of agreement reflecting the foregoing restrictions as requested by the
underwriters managing such offering.

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

      

      10.15.      Nature of
Payments.  Awards shall be special incentive payments to the
Participants and shall not be taken into account in computing the amount of
salary or compensation of a Participant for purposes of determining any pension,
retirement, death or other benefit under (a) any pension, retirement,
profit-sharing, bonus, insurance or other employee benefit plan of the Company
or any subsidiary or (b) any agreement between the Company or any subsidiary and
a Participant, except as such plan or agreement shall otherwise expressly
provide.

      

      10.16.      Non-Uniform
Determinations.  The Committee’s determinations under the Plan
need not be uniform and may be made by the Committee selectively among persons
who receive, or are eligible to receive, Awards, whether or not such persons are
similarly situated.  Without limiting the generality of the foregoing,
the Committee shall be entitled to enter into non-uniform and selective Award
agreements as to (a) the identity of the Participants, (b) the terms and
provisions of Awards and (c) the treatment of terminations of employment or
service.

      

      10.17.      Rule
409A.  It is the intention of the Board that the Plan comply
strictly with the provisions of Code Section 409A to the extent feasible and the
Committee shall exercise its discretion in granting Awards hereunder (and the
terms of such Award grants), accordingly.  The Plan and any grant of
an Award hereunder may be amended from time to time without the consent of the
participant as may be necessary or appropriate to comply with the Code Section
409A.

      

      10.18.      Reservation of
Shares.  The Company, during the term of the Plan, will at all
times reserve and keep available such number of shares of Common Stock as shall
be sufficient to satisfy the requirements of the Plan.

      
        
           

        

        
          12

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