Document:

EXHIBIT
10.33

 

THIS
WARRANT AND THE COMMON STOCK ISSUABLE UPON THE EXERCISE HEREOF (COLLECTIVELY,
THE “SECURITIES”) HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “ACT”), AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED
OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT UNDER THE
ACT WITH RESPECT TO THE SECURITIES OR DELIVERY TO THE COMPANY OF AN OPINION OF
COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE COMPANY THAT SUCH OFFER, SALE
OR TRANSFER, PLEDGE OR HYPOTHECATION IS IN COMPLIANCE WITH THE ACT OR UNLESS
SOLD IN FULL COMPLIANCE WITH RULE 144 UNDER THE ACT.

AMENDED
AND RESTATED WARRANT TO PURCHASE COMMON STOCK

OF

DIGIRAD
CORPORATION

	
  MWC -       

  	
   

  	
  Date of Initial Issuance — November 13, 2002

  
	
   

  	
   

  	
  Date of Amendment and Restatement — April 28, 2004

  

 

Void after
November 13, 2007

Digirad Corporation, a Delaware corporation (the “Company”),
hereby certifies that, for value received ___________________ (including any
successors and assigns, the “Holder”), is entitled, subject to the
terms set forth below, to purchase from the Company at any time or from time to
time, before 5:00 PM, Pacific time on November 13, 2007 (the “Expiration
Date”) up to 15,700 shares of Common Stock (“Common
Stock”) of the Company (the “Warrant Shares”), subject to adjustment as
provided herein.  The purchase price per
share of such Common Stock upon exercise of this Warrant shall be $1.40  (the “Exercise Price”), subject to adjustment as
provided herein.  This Warrant is issued
to the Holder in connection with and subject to the terms and conditions of
that certain Consulting Agreement dated on or about January 6, 2003, by and
between the Company and McAdams and Whitham Consulting, LLC (the “Consulting
Agreement”).

                1.             Exercise Period.  Subject to Section 2.2 herein, this Warrant
may be exercised by the Holder at any time or from time to time after the Date
of Initial Issuance noted above but before 5:00 PM, Pacific time on the
Expiration Date (the “Exercise Period”).

 

                2.             Exercise of Warrant; Number of
Warrant Shares; Termination.  

 

                                2.1           Exercise of Warrant; Partial
Exercise. This Warrant may be exercised in full or in part by the Holder
with respect to any or all of the Warrant Shares by surrender of this Warrant,
together with the form of subscription attached hereto as Schedule 1,
duly executed by the Holder, to the Company at its principal office,
accompanied by payment, in cash or by

 

 

 

certified or official bank check payable to the order of the Company,
of the aggregate Exercise Price for the Warrant Shares to be purchased
hereunder.  For any partial exercise
hereof, the Holder shall designate in a notice of exercise or net issue
election notice that number of shares of Common Stock that he wishes to
purchase.  On any such partial exercise,
the Company at its expense shall forthwith issue and deliver to the Holder a
new warrant of like tenor, in the name of the Holder, which shall be
exercisable for such number of shares of Common Stock represented by this
Warrant which have not been purchased upon such exercise.  

 

                2.2           Termination of the Warrant Upon a
Corporate Transaction.  Immediately
following the occurrence of a Corporate Transaction, this Warrant shall
terminate and cease to be outstanding, provided that written notice has been
given to the Holder at least 20 days prior to the occurrence of the Corporate
Transaction.  For the purposes of this
Warrant, a “Corporate Transaction” shall mean: (i) a merger or
consolidation in which securities possessing more than fifty percent (50%) of
the total combined voting power of the Company’s outstanding securities are
transferred to a person or persons different from the persons holding those
securities immediately prior to such transaction; or (ii) the sale,
transfer or other disposition of all or substantially all of the Company’s
assets in complete liquidation or dissolution of the Company.

                3.             Net Issuance.

 

                3.1           Right to Convert.  The Holder shall have the right to convert
this Warrant or any portion thereof (the “Conversion Right”) into shares of Common
Stock as provided in this Section 3 at any time or from time to time during the
Exercise Period.  Upon exercise of the
Conversion Right with respect to a particular number of Warrant Shares (the “Converted
Warrant  Shares”), the Company shall deliver to the
Holder (without payment by the Holder of any exercise price or any cash or
other consideration) that number of shares of fully paid and nonassessable
shares of Common Stock computed using the following formula:

X = Y (A - B)

A

Where          X =    the
number of shares of Common Stock to be delivered to the Holder

                      Y =    the
number of Converted Warrant Shares

                      A =   the fair market value of one share of the Company’s Common Stock
on the Conversion Date (as defined below)

 

                      B =    the
Exercise Price (as adjusted through the Conversion Date)

The Conversion Right may only be exercised with
respect to a whole number of Warrant Shares. 
No fractional shares shall be issuable upon exercise of the Conversion
Right, and if the number of shares to be issued determined in accordance with
the foregoing formula is other than a whole number, the Company shall pay to
the Holder an amount in cash equal to the fair market value of the resulting
fractional share on the Conversion Date (as defined below).  Shares issued pursuant to the Conversion
Right shall be treated as if they were issued upon the exercise of this
Warrant. 

2

 

                3.2           Method of Exercise.  The Conversion Right may be exercised by the
Holder by the surrender of this Warrant at the principal office of the Company
together with a written statement specifying that the Holder thereby intends to
exercise the Conversion Right and indicating the total number of shares under
this Warrant that the Holder is exercising through the Conversion Right.  Such conversion shall be effective upon
receipt by the Company of this Warrant together with the aforesaid written
statement, or on such later date as is specified therein (the “Conversion
Date”) and at such time the person in whose name any certificate for
shares of Common Stock shall be issuable upon such exercise shall be deemed to
be the record holder of such Common Stock for all purposes.  Certificates for the shares issuable upon
exercise of the Conversion Right and, if applicable, a new warrant evidencing
the balance of the shares remaining subject to the Warrant, shall be issued as
of the Conversion Date and shall be delivered to the Holder promptly following
the Conversion Date.

                3.3           Determination of Fair Market
Value.  For purposes of this Section
3, fair market value of a share of Common Stock on the Conversion Date shall
mean:

(1)           If traded
on a stock exchange, the fair market value of the Common Stock shall be deemed
to be the average of the closing selling prices of the Common Stock on the
stock exchange determined by the Board of Directors of the Company (the “Board”)
to be the primary market for the Common Stock over the ten (10) trading day
period (or such shorter period immediately following the closing of the
Company’s initial public offering) ending on the date prior to the Conversion
Date, as such prices are officially quoted in the composite tape of
transactions on such exchange;

(2)           If traded
over-the-counter, the fair market value of the Common Stock shall be deemed to
be the average of the closing bid prices (or, if such information is available,
the closing selling prices) of the Common Stock over the ten (10) trading day
period (or such shorter period immediately following the closing of the Company’s
initial public offering) ending on the date prior to the Conversion Date, as
such prices are reported by the National Association of Securities Dealers
through its NASDAQ system or any successor system; and

(3)           If there
is no public market for the Common Stock, the fair market value of the Common
Stock shall be determined in good faith by the Board.

4.             When
Exercise Effective.  The exercise of
this Warrant pursuant to Section 2 shall be deemed to have been effected
immediately prior to the close of business on the business day on which this
Warrant is surrendered to the Company as provided in Section 2.1, or on
such later date as is specified in the form of subscription, and at such time
the person in whose name any certificate for shares of Common Stock shall be
issuable upon such exercise, as provided in Section 5, shall be deemed to
be the record holder of such Common Stock for all purposes.

                5.             Delivery on Exercise.  As soon as practicable after the exercise of
this Warrant in full or in part pursuant to Section 2, the Company at its
expense (including the payment by it of any applicable issue taxes) will cause
to be issued in the name of and delivered to the Holder, or as the Holder may
direct, a certificate or certificates for the number of fully paid and
nonassessable full shares of Common Stock to which the Holder shall be entitled
on such

 

3

 

exercise, together with cash, in lieu of any fraction of a share, equal
to such fraction of the current market value of one full share of Common Stock
as determined pursuant to Section 3.3.

 

6.             Adjustments.  The number and kind of shares of Common
Stock (or any shares of stock or other securities which may be) issuable upon
the exercise of this Warrant and the Exercise Price shall be subject to
adjustment from time to time upon the happening of certain events, as follows:

                6.1           Dividends, Distributions, Stock
Splits or Combinations.  If the
Company shall at any time or from time to time after the date hereof (a) make
or issue, or fix a record date for the determination of holders of Common Stock
(or any shares of stock or other securities which may be issuable upon the
exercise of this Warrant) entitled to receive, a dividend or other distribution
payable in additional shares of common or preferred stock (as the case may be),
(b) subdivide its outstanding shares of Common Stock (or any shares of stock or
other securities which may be issuable upon the exercise of this Warrant) into
a larger number of shares of Common Stock (or any shares of stock or other
securities which may be issuable upon the exercise of this Warrant) or (c)
combine its outstanding shares of Common Stock (or any shares of stock or other
securities which may be issuable upon the exercise of this Warrant) into a
smaller number of shares of Common Stock (or any shares of stock or other
securities which may be issuable upon the exercise of this Warrant), then and
in each such event the Exercise Price then in effect and the number of shares
issuable upon exercise of this Warrant shall be appropriately adjusted.

                6.2           Reclassification or
Reorganization.  If the Common Stock
(or any shares of stock or other securities which may be) issuable upon the
exercise of this Warrant shall be changed into the same or different number of
shares of any class or classes of stock, whether by capital reorganization,
reclassification or otherwise (other than a subdivision or combination of
shares or stock dividend provided for in Section 6.1 above, or pursuant to a
Corporate Transaction), then and in each such event the Holder shall be
entitled to receive upon the exercise of this Warrant the kind and amount of
shares of stock and other securities and property receivable upon such
reorganization, reclassification or other change to which a holder of the
number of shares of Common Stock (or any shares of stock or other securities
which may be) issuable upon the exercise of this Warrant would have received if
this Warrant had been exercised immediately prior to such reorganization,
reclassification or other change, all subject to further adjustment as provided
herein.

                6.3           Notice of Adjustments and Record
Dates.  The Company shall promptly
notify the Holder in writing of each adjustment or readjustment of the Exercise
Price and the number of shares of Common Stock (or any shares of stock or other
securities which may be) issuable upon the exercise of this Warrant.  Such notice shall state the adjustment or
readjustment and show in reasonable detail the facts on which that adjustment
or readjustment is based.  In the event
of any taking by the Company of a record of the holders of Common Stock (or any
shares of stock or other securities which may be issuable upon the exercise of
this Warrant) for the purpose of determining the holders thereof who are
entitled to receive any dividend or other distribution, the Company shall
notify Holder in writing of such record date at least twenty (20) days prior to
the date specified therein.

4

 

                6.4           When Adjustments To Be Made.  No adjustment in the Exercise Price shall be
required by this Section 6 if such adjustment either by itself or with other
adjustments not previously made would require an increase or decrease of less
than one percent (1%) in such price. 
Any adjustment representing a change of less than such minimum amount
which is postponed shall be carried forward and made as soon as such
adjustment, together with other adjustments required by this Section 6 and not
previously made, would result in a minimum adjustment.  Notwithstanding the foregoing, any
adjustment carried forward shall be made no later than ten (10) business days
prior to the Expiration Date.  All
calculations under this Section 6.4 shall be made to the nearest cent.  For the purpose of any adjustment, any
specified event shall be deemed to have occurred at the close of business on
the date of its occurrence.

                6.5           Certain Other Events.  If any change in the outstanding Common
Stock (or any shares of stock or other securities which may be issuable upon
the exercise of this Warrant) or any other event occurs as to which the other
provisions of this Section 6 are not strictly applicable or if strictly
applicable would not fairly protect the purchase rights of the Holder of the
Warrant in accordance with such provisions, then the Board shall make an
adjustment in the number and class of shares available under this Warrant, the
Exercise Price or the application of such provisions, so as to protect such
purchase rights as aforesaid.  The
adjustment shall be such as will give the Holder, upon exercise of this
Warrant, the same aggregate Exercise Price and the same total number, class and
kind of shares as the Holder would have owned had this Warrant been exercised
prior to the event and had the Holder continued to hold such shares until after
the event requiring adjustment.

7.             Replacement
of Warrants.  On receipt by the
Company of evidence reasonably satisfactory to the Company of the loss, theft,
destruction or mutilation of this Warrant and, in the case of any such loss,
theft or destruction of this Warrant, on delivery of an indemnity agreement
reasonably satisfactory in form and amount to the Company or, in the case of
any such mutilation, on surrender and cancellation of such Warrant, the Company
at its expense will execute and deliver to the Holder, in lieu thereof, a new
warrant of like tenor.

8.             No
Rights or Liability as a Stockholder. 
This Warrant does not entitle the Holder hereof to any voting rights or
other rights as a stockholder of the Company. 
No provisions hereof, in the absence of affirmative action by the Holder
to purchase Common Stock, and no enumeration herein of the rights or privileges
of the Holder, shall give rise to any liability of the Holder as a stockholder
of the Company.

            9.             Representations
of Holder.

 

The Holder hereby represents, covenants and
acknowledges to the Company that:

(1)           this
Warrant and the Warrant Shares are “restricted securities” as such term is used
in the rules and regulations under the Securities Act of 1933, as amended (the “Act”)
and that this Warrant and the Warrant Shares have not been registered under the
Act and the Company has no present intention of registering the Securities
under the Act or any state securities law, and that this Warrant and the
Warrant Shares must be held indefinitely unless a transfer can be made pursuant
to appropriate exemptions;

5

 

(2)           the Holder
has read, and fully understands, the terms of this Warrant set forth on its
face and the attachments hereto, including the restrictions on transfer
contained herein;

(3)           the Holder
is purchasing for investment for his own account and not with a view to or for
sale in connection with any distribution of this Warrant or the Warrant Shares
and he has no intention of selling such securities in a public distribution in
violation of the federal securities laws or any applicable state securities
laws;

(4)           the Holder
is an “accredited investor” within the meaning of paragraph (a) of Rule 501 of
Regulation D promulgated by the Securities and Exchange Commission (the “Commission”);
and

(5)           the Holder
(i) has received all information the Holder has requested from the Company and
considers necessary or appropriate for deciding whether to acquire this Warrant
and the Warrant Shares, (ii) has had an opportunity to ask questions and
receive answers from the Company regarding the terms and conditions of this
Warrant and the Warrant Shares and to obtain any additional information necessary
to verify the accuracy of the information given to the Holder, and (iii) has
such knowledge and experience in financial and business matters such that the
Holder is capable of evaluating the merits and risks of the investment in this
Warrant and the Warrant Shares.

10.           Market
Stand-Off Agreement.  The Holder
hereby agrees that, during the period of duration specified by the Company and
an underwriter of Common Stock or other securities of the Company, following
the effective date of a registration statement of the Company filed under the
Act, he shall not, to the extent requested by the Company and such underwriter,
directly or indirectly sell, offer to sell, contract to sell (including,
without limitation, any short sale), grant any option to purchase or otherwise
transfer or dispose of (other than to donees who agree to be similarly bound)
any securities of the Company held by him at any time during such period except
Common Stock included in such registration; provided, however, that:

(1)           Such
agreement shall not exceed 180 days for the first such registration statement
of the Company which covers Common Stock (or other securities) to be sold on
its behalf to the public in an underwritten offering;

(2)           Such
agreement shall not exceed ninety (90) days for any subsequent registration
statement of the Company which covers Common Stock (or other securities) to be
sold on its behalf to the public in an underwritten offering; and

(3)           All
directors and officers of the Company as well as all holders of one percent
(1%) or more of the Company’s outstanding capital stock are similarly bound.

In order to enforce the foregoing covenant, the
Company may impose stop-transfer instructions with respect to securities held
by the Holder (and the shares or securities of every other person subject to
the foregoing restriction) until the end of such period.

6

 

11.           Miscellaneous.

                11.1         Transfer of Warrant.  This Warrant shall not be transferable or
assignable by the Holder without the express written consent of the Company.

                11.2         Notices.  Any notice required or permitted under this
Warrant shall be in writing and shall be hand delivered, sent by facsimile or
other electronic medium, by registered or certified mail, postage prepaid, or
by nationally recognized overnight carrier to the Company or to the Holder at
the address set forth below on the signature page to this Warrant or to such
other address as may be furnished in writing to the other party hereto.  Such notice shall be deemed effectively
given (i) if hand delivered, upon delivery, (ii) if sent by facsimile or other
electronic medium, when confirmed, if sent during the normal business hours of
the recipient (if not sent during the normal business hours of the recipient, then
on the next business day), (iii) if sent by mail, five days after having been
sent, or (iv) if sent by nationally recognized overnight courier, one day after
deposit with such courier.

                11.3         Attorneys’ Fees.  If any action at law or in equity is necessary
to enforce or interpret the terms of this Warrant, the prevailing party shall
be entitled to reasonable attorneys’ fees, costs and disbursements in addition
to any other relief to which such party may be entitled.

                11.4         Amendments and Waivers.  Any term of this Warrant may be amended and
the observance of any other term of this Warrant may be waived (either
generally or in a particular instance and either retroactively or
prospectively), only with the written consent of the Company and the Holder.

                11.5         Severability.  If one or more provisions of this Warrant
are held to be unenforceable under applicable law, such provision shall be
excluded from this Warrant and the balance of the Warrant shall be interpreted
as if such provision were so excluded and shall be enforceable in accordance
with its terms.

                11.6         Governing Law.  This Warrant shall be governed by and
construed and enforced in accordance with the laws of the State of California
as applied to agreements among California residents entered into and to be
performed entirely within California.

 

[REMAINDER OF THIS
PAGE INTENTIONALLY LEFT BLANK]

 

 

7

 

                IN
WITNESS WHEREOF, the undersigned have caused this Warrant to be executed by its
officers thereunto duly authorized.

COMPANY:                                                                          DIGIRAD
CORPORATION

 

By:                                                                                                    

David M. Sheehan

President and Chief Executive Officer

 

HOLDER:                                                                                                                                                                               

 

 

[COUNTERPART SIGNATURE PAGE TO AMENDED AND RESTATED 

WARRANT TO PURCHASE COMMON STOCK OF DIGIRAD CORPORATION]

 

 

SCHEDULE 1

FORM OF SUBSCRIPTION

(To be
signed only on exercise of Warrant)

To:          Digirad Corporation

The undersigned,
the holder of the Warrant attached hereto, hereby irrevocably elects to
exercise the purchase rights represented by such Warrant for, and to purchase
thereunder, _______* shares of common stock of Digirad Corporation, and
herewith makes payment of $__________ therefor, and requests that the
certificates for such shares be issued in the name of, and delivered to
____________________, whose address is _____________________________.

	
   

  	
   

  
	
   

  	
  (Signature must
  conform in all respects to name of the Holder as specified on the face of the
  Warrant)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Print Name)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Address)

  

 

Dated:                                                    

________________

* Insert here the number of shares as to which the
Warrant is being exercised.

[SCHEDULE 1]

 

 

SCHEDULE OF INVESTORS

 

 

WARRANTHOLDER

Stephen A. McAdams

John C. Whitham

 

 

 

 

 

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EXHIBIT 10.6    
    

ANNEX I  

NATIONSHEALTH, INC. 2004 INCENTIVE STOCK PLAN  

        1.    Purpose.    The NationsHealth, Inc. 2004 Incentive Stock Plan (the "Plan") is intended to provide
incentives which will attract and retain highly competent persons as officers, directors and key employees of Millstream Acquisition Corporation (to be renamed NationsHealth, Inc. at the
effective time of the Merger), a Delaware corporation (the "Company") and its subsidiaries by providing them opportunities to acquire shares of common stock, par value $0.0001 per share, of the
Company ("Common Stock") pursuant to the Stock Options described herein. 

        2.    Administration.    The Plan will be administered by the Compensation Committee of the Board of Directors of the
Company or another committee (the "Committee"), appointed by the Board from among its members consisting of one or more directors (or such minimum number of directors as may be required under
applicable law) as the Board may designate from time to time. The Committee shall have the authority to make all determinations and take such other action as contemplated by the Plan or as may be
necessary or advisable for the administration of the Plan and the effectuation of its purposes. The Board or Committee may delegate, to the extent permitted by applicable law, to one or more officers
of the Company, its powers under the Plan (a) to designate who will participate in the Plan, and (b) to determine the amount and type of Stock Options (as defined below) to be awarded to
participants, pursuant to a resolution that specifies the amount and type of Stock Options that may be granted under the delegation, provided that no officer may be delegated the power to designate
any officer (including himself or herself) as a recipient of such Stock Options. Failure to satisfy the requirements of Section 162(m) of the Internal Revenue Code of 1986, as amended (the
"Code") with respect to the grant of Stock Options hereunder shall not affect the validity of the action of the Committee otherwise duly authorized and acting in the matter. Stock Options and
transactions in or involving Stock Options, intended to be exempt under Rule 16b-3 under the Securities and Exchange Act of 1934, as amended (the "Exchange Act"), must be duly and
timely authorized by the Board or a committee consisting solely of two or more "non-employee directors" of
the Company (as this requirement is applied under Rule 16b-3 promulgated under the Exchange Act). To the extent required by any applicable securities exchange or automated quotation
system, the Committee charged with administering the Plan shall be composed entirely of independent directors of the Company (within the meaning of the applicable securities exchange or automated
quotation system) or, for as long as the Company can rely on the "Controlled Company" exemption, by a majority of independent directors. Any action taken by, or inaction of, the Company, any
subsidiary or affiliate, or the Committee relating or pursuant to the Plan and within its authority hereunder or under applicable law shall be within the absolute discretion of that entity or body and
shall be conclusive and binding upon all persons. Neither the Board nor any Board committee, nor any member thereof or person acting at the direction thereof, shall be liable for any act, omission,
interpretation, construction or determination made in good faith in connection with the Plan (or any Stock Option provided under this Plan). 

        3.    Participants.    Participants will consist of such key employees (including officers), consultants and directors
of the Company or its subsidiaries as the Committee in its sole discretion determines to be significantly responsible for the success and future growth and profitability of the Company and whom the
Committee may designate from time to time to receive Stock Options under the Plan. Designation of a participant in any year shall not require the Committee to designate such person to receive a Stock
Option in any other year or, once designated, to receive the same type or amount of Stock Option as granted to the participant in any year. The Committee shall consider such factors as it deems
pertinent in selecting participants and in determining the type and amount of their respective Stock Options. 

        4.    Types of Options.    Stock options under the Plan ("Stock Options") may be granted in any one or a combination
of (a) incentive stock options ("Incentive Stock Options"); and (b) non-qualified stock options ("Non-qualified Stock Options"), in each case as described below.
Directors or 

 

consultants
of the Company or its subsidiaries may only be issued Non-qualified Stock Options. Notwithstanding anything to the contrary contained herein, no Stock Options may be granted
until (i) after the stockholders of the Company adopt the Agreement and Plan of Merger, dated as of March 9, 2004 (the "Merger Agreement"), among the Company, N Merger L.L.C., a Florida
limited liability company and a wholly owned subsidiary of the Company and NationsHealth Holdings, L.L.C., a Florida limited liability company, and (ii) the merger contemplated by the Merger
Agreement (the "Merger") is consummated. Any Stock Options granted under the plan shall be pursuant to a written instrument signed on behalf of the Company and the participant (any such written
instrument, an "Award"). 

        5.    Shares Reserved under the Plan.    There is hereby reserved for issuance under the Plan an aggregate of
1,900,000 shares of Common Stock, which may be authorized but unissued or treasury shares. All of such shares may, but need not, be issued pursuant to the exercise of Incentive Stock Options. If there
is a lapse, expiration, termination or cancellation of any Stock Option issued under the Plan prior to the issuance of shares thereunder or if shares of Common Stock are issued under the Plan and
thereafter are reacquired by the Company, the shares subject to those options and the reacquired shares shall be added to the shares available for benefits under the Plan. Shares covered by a Stock
Option granted under the Plan shall not be counted as used unless and until they are actually issued and delivered to a participant. In addition, any shares of Common Stock exchanged by an optionee as
full or partial payment to the Company of the exercise price under any Stock Option exercised under the Plan, any shares retained by the Company pursuant to a participant's tax withholding election,
shall be added to the shares available for Stock Options under the Plan. Under the Plan, no non-employee director may receive in any calendar year Stock Options or awards of other benefits
hereunder relating to more than 150,000. The shares reserved for issuance and the limitations set forth above shall be subject to adjustment in accordance with Section 7 hereof. 

        6.    Stock Options.    Incentive Stock Options and Non-qualified Stock Options will consist of stock
options to purchase Common Stock at purchase prices not less than 100% of the fair market value of the Common Stock on the date the option is granted. Said purchase price may be paid by check or, in
the discretion of the Committee, by the delivery (or certification of ownership) of shares of Common Stock of the Company owned by the participant for a period of at least six months. In the
discretion of the Committee, payment may also be made by delivering a properly executed exercise notice to the Company, together with a copy of the irrevocable instructions to a broker to deliver
promptly to the Company the amount of sale or loan proceeds to pay the exercise price. Non-qualified Stock Options and Incentive Stock Options shall be exercisable not later than ten years
after the date they are granted. Stock Options shall become exercisable at such time and shall be subject to such terms and conditions as the Committee shall determine. In the event of termination of
employment of a participant to whom Stock Options have been granted, all of such participant's Stock Options shall terminate at such times and upon such conditions or circumstances as the Committee
shall in its discretion set forth in the Award at the date of grant. 

        7.    Adjustment Provisions.    The following provisions will apply if any extraordinary dividend or other
extraordinary distribution occurs in respect of the Common Stock (whether in the form of cash, Common Stock, other securities, or other property), or any reclassification, recapitalization, stock
split (including a stock split in the form of a stock dividend), reverse stock split, reorganization, merger (other than the Merger), combination, consolidation, split-up,
spin-off, combination, repurchase, or exchange of Common Stock or other securities of the Company, or any similar, unusual or extraordinary corporate transaction (or event in respect of
the Common Stock) or a sale of substantially all the assets of the Company as an entirety occurs. The Committee will, in such manner and to such extent (if any) as it deems appropriate and equitable: 

        (a)    proportionately
adjust any or all of (i) the number and type of shares of Common Stock (or other securities) that thereafter may be made the subject of Stock
Options (including the 

2

 

specific
maximums and numbers of shares set forth elsewhere in the Plan), (ii) the number, amount and type of shares of Common Stock (or other securities or property) subject to any or all
outstanding Stock Options, (iii) the grant, purchase, or exercise price of any or all outstanding Stock Options, (iv) the securities, cash or other property deliverable upon exercise of
any outstanding Stock Options, or (v) the performance standards appropriate to any outstanding Stock Options; or 

        (b)    in
the case of an extraordinary dividend or other distribution, recapitalization, reclassification, merger (other than the Merger), reorganization, consolidation,
combination, sale of assets, split up, exchange, or spin off, make provision for a cash payment or for the substitution or exchange of any or all outstanding Stock Options or the cash, securities or
property deliverable to the holder of any or all outstanding Stock Options based upon the distribution or consideration payable to holders of the Common Stock upon or in respect of such event. 

        The
Committee shall value Stock Options as it deems reasonable in the event of a cash or property settlement and may base such settlement solely upon the excess if any of the per share
amount payable upon or in respect of such event over the exercise or base price of the Award. With respect to any award of an Incentive Stock Option, the Committee may make such an adjustment that
causes the option to cease to qualify as an Incentive Stock Option without the consent of the affected participant. 

        In
any of such events, the Committee may take such action prior to such event to the extent that the Committee deems the action necessary to permit the participant to realize the
benefits intended to be conveyed with respect to the underlying shares in the same manner as is or will be available to stockholders generally. In the case of any stock split or reverse stock split,
if no action is taken by the Committee, the proportionate adjustments contemplated by clause (a) above shall nevertheless be made. 

        8.    Nontransferability.    Each Stock Option granted under the Plan to an employee shall not be transferable by him
otherwise than by will or the laws of descent and distribution, and shall be exercisable, during his lifetime, only by him. In the event of the death of a participant, each Stock Option theretofore
granted to him shall be exercisable within the period after his death established by the Committee at the time of grant (but not beyond the stated duration of the Stock Option) and then only: 

        (a)    By
the executor or administrator of the estate of the deceased participant or the person or persons to whom the deceased participant's rights under the Stock Option
shall pass by will or the laws of descent and distribution; and 

        (b)    To
the extent that the deceased participant was entitled to do so at the date of his death. 

        Notwithstanding
the foregoing, at the discretion of the Committee, an award of a Non-qualified Stock Option may permit the transferability of the Stock Option by the
participant solely to members of the participant's immediate family or trusts or family partnerships for the benefit of such persons subject to such terms and conditions as may be established by the
Committee. 

        9.    Other Provisions.    The Award of any Stock Option under the Plan may also be subject to such other provisions
(whether or not applicable to the Stock Option awarded to any other participant) as the Committee determines appropriate, including without limitation, restrictions on resale or other disposition,
provisions for the acceleration of exercisability of Stock Options in the event of a change of control of the Company, provisions for the payment of the value of the Stock Options to participants in
the event of a change of control of the Company, provisions to comply with Federal and state securities laws, or understandings or conditions as to the participant's employment in addition to those
specifically provided for under the Plan. 

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        10.    Interpretation of the Plan and Rule Making Authority.    Subject to the express provisions of this Plan and any
express limitations on delegated authority, the Committee will have the authority to construe and interpret this Plan and any agreements defining the rights and obligations of the Company and
participants under this Plan, further define the terms used in the Plan, and prescribe, amend and rescind rules and regulations relating to the administration of the Plan or the Stock Options granted
under this Plan. 

        11.    Committee Manner of Action.    Unless otherwise provided in the bylaws of the Company or the applicable charter
of the Compensation Committee of the Board: (a) a majority of the members of the Committee shall constitute a quorum, and (b) the vote of a majority of the members present who are
qualified to act on a question assuming the presence of a quorum or the unanimous written consent of the members of the Committee shall constitute action by the Committee. The Committee may delegate
the performance of ministerial functions in connection with the Plan to such person or persons as the Committee may select. The costs of administration of the Plan will be paid by the Company. 

        12.    Events Not Deemed Termination of Service.    Unless Company policy or the Committee otherwise provides, the
employment relationship shall not be considered terminated in the case of (a) sick leave, (b) military leave, or (c) any other leave of absence authorized by the Company or the
Committee; provided that, unless reemployment upon the expiration of such leave is guaranteed by contract or law, such leave is for a period of not more
than 90 days. In the case of any employee of the Company on an approved leave of absence, continued vesting of the Award while on leave from the employ of the Company may be suspended until the
employee returns to service, unless the Committee otherwise
provides or applicable law otherwise requires. In no event shall a Stock Option be exercised after the expiration of the term set forth in the Award 

        13.    Effect of Change of Subsidiary or Affiliate Status.    For purposes of the Plan and any Stock Option hereunder,
if an entity ceases to be a subsidiary or affiliate of the Company, termination of employment or service shall be deemed to have occurred with respect to each participant in respect of such subsidiary
or affiliate who does not continue as a participant in respect of another entity within the Company after giving effect to the subsidiary's or affiliate's change in status. 

        14.    Fair Market Value.    For purposes hereof, "fair market value" of the Common Stock shall mean the closing sale
price per share of the Common Stock on the date of calculation (or on the last preceding trading date if Common Stock was not traded on the date of calculation) as reported on the Nasdaq Stock Market
(the "NASDAQ"), the New York Stock Exchange (the "NYSE"), the American Stock Exchange (the "AMEX"), any other stock exchange or the over-the-counter market, as applicable, as
reported in The Wall Street Journal (Northeast edition), or, if not then reported thereby, any other authoritative source. If the Common Stock is not
traded on the NASDAQ, the NYSE, the AMEX, any other stock exchange or the over-the-counter market, then in lieu of the average closing price, fair market value of the Common
Stock per share shall be as determined by the Committee acting reasonably and in good faith. 

        15.    Taxes.    The Company shall be entitled if necessary or desirable to pay or withhold the amount of any tax
attributable to any amounts payable under the Plan after giving the person entitled to receive such amount notice as far in advance as practicable, and the Company may defer making payment as to any
Stock Option if any such tax may be pending until indemnified to its satisfaction. When a person is required to pay to the Company an amount required to be withheld under applicable tax laws in
connection with exercises of Non-qualified Stock Options, the Committee may, in its discretion and subject to such rules as it may adopt, permit such person to satisfy the obligation, in
whole or in part, by electing to have the Company withhold shares of Common Stock having a fair market value equal to the amount required to be withheld. 

4

 

        16.    Tenure and Stock Option Rights.    A participant's right, if any, to continue to serve the Company and its
subsidiaries as an officer, employee, or otherwise, shall not be enlarged or otherwise affected by his designation as a participant under the Plan. Payments and other benefits received by a
participant under a Stock Option made pursuant to the Plan shall not be deemed a part of a participant's compensation for purposes of the determination of benefits under any other employee retirement
or welfare benefit plans or arrangements, if any, provided by the Company or any subsidiary or affiliate, except where the Board or Committee expressly otherwise provides or authorizes in writing.
Stock Options under the Plan may be awarded in addition to, in combination with, as alternatives to or in payment of grants, awards or commitments under any other plans or arrangements of the Company
or its subsidiaries. 

        17.    Amendment and Termination.    The terms and conditions applicable to any Stock Option granted under the Plan
may be amended or modified by mutual agreement between the Company and the participant or such other persons as may then have an interest therein. Also, by mutual agreement between the Company and a
participant hereunder, or under any other present or future plan of the Company, Stock Options may be granted to such participant in substitution and exchange for, and in cancellation of, any Stock
Options previously granted such participant under this Plan, or any Stock Option previously or hereafter granted to him under any other present or future plan of the Company. The Board of Directors
may amend the Plan from time to time or terminate the Plan at any time. However, no action authorized by this paragraph shall reduce the amount of any existing Stock Option or change the terms and
conditions thereof without the participant's consent. No amendment of the Plan shall be made without shareholder approval if shareholder approval of such amendment is required by law, regulation, or
stock exchange rule. 

        18.    Stockholder Approval.    The Plan was adopted by the Board of Directors of the Company effective as of
April 9, 2004. The Plan and any Stock Options granted hereunder shall be null and void if (i) holders of 805,000 or more shares of common stock issued in Millstream's initial public
offering, an amount equal to 20% or more of these shares, vote against the adoption of the Merger Agreement and demand conversion of their shares into a pro rata portion of the trust account into
which a substantial portion of the net proceeds of the Company's initial public offering was deposited or (ii) stockholder approval is not obtained within twelve (12) months of the
adoption of the Plan by the Board of Directors. This Plan shall continue in effect for ten years from the date of its approval by the stockholders or until terminated by the Board pursuant to
Section 17. 

        19.    Governing Law; Construction; Severability.    This Plan, the Stock Options awarded hereunder, all documents
evidencing Stock Options and all other related documents will be governed by, and construed in accordance with, the laws of the state of Delaware. If a court of competent jurisdiction holds any
provision hereunder invalid and unenforceable, the remaining provisions of the Plan will continue in effect. It is the intent of the Company that the Stock Options and transactions permitted by Stock
Options be interpreted in a manner that, in the case of participants who are or may be subject to Section 16 of the Exchange Act, qualify, to the maximum extent compatible with the express
terms of the agreements reflecting the Stock Options, for exemption from matching liability under Rule 16b-3 promulgated under the Exchange Act. Notwithstanding the foregoing, the
Company shall have no liability to any participant or other person for Section 16 consequences of Stock Options or events in connection with a Stock Option if a Stock Option or related event
does not so qualify. 

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EXHIBIT 10.6

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