Document:

Exhibit
      10.12

    

    2007
      EQUITY INCENTIVE PLAN

    

    1.
      Purpose.
      The
      purpose of this Equity Incentive Plan (the “Plan”)
      is to
      advance the interests of Modigene
      Inc., a Nevada corporation (the
      “Company”)
      and
      its Affiliates (as defined below) by inducing eligible individuals of
      outstanding ability and potential to join and remain with, or to provide
      consulting or advisory services to, the Company or its Affiliates, by
      encouraging and enabling eligible employees, Outside Directors (as defined
      below), consultants, and advisors to acquire proprietary interests in the
      Company, and by providing participating eligible employees, Outside Directors,
      consultants, and advisors with an additional incentive to promote the success
      of
      the Company. These purposes are accomplished by providing for the granting
      of
      Incentive Stock Options, Nonqualified Stock Options, Reload Options, Stock
      Appreciation Rights, and Restricted Stock (all as defined below) to eligible
      employees, Outside Directors, consultants, and advisors.

    

    2.
      Definitions.
      As used
      in the Plan, the following terms have the meanings indicated:

    

    (a) “Affiliate”
means
      a
“parent corporation” or a “subsidiary corporation” (as set forth in Code
      Sections 424(e) and 424(f), respectively) of the Company.

    

    (b) “Applicable
      Withholding Taxes”
means
      the aggregate minimum amount of federal, state, local, and foreign income,
      payroll, and other taxes that the Employer is required to withhold in connection
      with the grant, vesting, or exercise of any Award.

    

    (c) “Award”
means
      an Incentive Stock Option, a Nonqualified Stock Option, a Reload Option, a
      Stock
      Appreciation Right, or Restricted Stock.

    

    (d) “Beneficiary”
means
      the person or entity designated by the Participant, in a form approved by the
      Company, to exercise the Participant’s rights with respect to an Award after the
      Participant’s death. If the Participant does not validly designate a
      Beneficiary, or if the designated person no longer exists, then the
      Participant’s Beneficiary shall be his or her estate.

    

    (e) “Board”
means
      the Board of Directors of the Company.

    

    (f) “Cause”
shall
      have the same meaning given to such term (or other term of similar meaning)
      in
      an Employment Agreement for purposes of termination of employment under such
      agreement, and in the absence of any such agreement or if such agreement does
      not include a definition of “Cause” (or other term of similar meaning), the term
“Cause” shall mean (i) any material breach by the Participant of any agreement
      to which the Participant and the Company or an Affiliate are parties, (ii)
      any
      continuing act or omission to act by the Participant which may have a material
      and adverse effect on the Company’s business or on the Participant’s ability to
      perform services for the Company or an Affiliate, including, without limitation,
      the commission of any crime (other than minor traffic violations), or (iii)
      any
      material misconduct or material neglect of duties by the Participant in
      connection with the business or affairs of the Company or an
      Affiliate.

    

    (g) “Change
      in Control”
means,
      unless such term or an equivalent term is otherwise defined with respect to
      an
      Award by the Participant’s Award agreement, any Employment Agreement or in a
      written contract of service, the occurrence of any of the
      following:

    

    (i) any
      “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange
      Act) becomes the “beneficial owner” (as defined in Rule 13d-3 promulgated
      under the Exchange Act), directly or indirectly, of securities of the Company
      representing more than fifty percent (50%) of the total combined voting power
      of
      the Company’s then-outstanding securities entitled to vote generally in the
      election of Directors;
      provided,
      however,
      that
      the following acquisitions shall not constitute a Change in Control: (1) an
      acquisition by any such person who on the Effective Date is the beneficial
      owner
      of more than fifty percent (50%) of such voting power, (2) any acquisition
      directly from the Company, including, without limitation, a public offering
      of
      securities, (3) any acquisition by the Company, (4) any acquisition by
      a trustee or other fiduciary under an employee benefit plan of a participating
      company or (5) any acquisition by an entity owned directly or indirectly by
      the stockholders of the Company in substantially the same proportions as their
      ownership of the voting securities of the Company; or

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (ii) an
      Ownership Change Event or series of related Ownership Change Events
      (collectively, a “Transaction”)
      in
      which the stockholders of the Company immediately before the Transaction do
      not
      retain immediately after the Transaction direct or indirect beneficial ownership
      of more than fifty percent (50%) of the total combined voting power of the
      outstanding securities entitled to vote generally in the election of directors
      or, in the case of an Ownership Change Event described in Section 2(x)(iii),
      the
      entity to which the assets of the Company were transferred (the “Transferee”),
      as
      the case may be; or

     

    (iii) a
      liquidation or dissolution of the Company;

     

    provided,
      however,
      that a
      Change in Control shall be deemed not to include a transaction described in
      subsections (i) or (ii) of this paragraph (g) in which a majority of the members
      of the board of directors of the continuing, surviving or successor entity,
      or
      parent thereof, immediately after such transaction is comprised of incumbent
      directors. For purposes of the preceding sentence, indirect beneficial ownership
      shall include, without limitation, an interest resulting from ownership of
      the
      voting securities of one or more corporations or other business entities which
      own the Company or the Transferee, as the case may be, either directly or
      through one or more subsidiary corporations or other business entities. The
      Committee shall have the right to determine whether multiple sales or exchanges
      of the voting securities of the Company or multiple Ownership Change Events
      are
      related, and its determination shall be final, binding and
      conclusive.

     

    (h) “Code”
means
      the Internal Revenue Code of 1986, as amended from time to time, and any rulings
      or regulations promulgated thereunder.

    

    (i) “Committee”
means
      the Board, the Compensation Committee of the Board, or such other committee
      of
      the Board as the Board appoints to administer the Plan; provided,
      however,
      that
      should Section 162(m) of the Code and Section 16 of the Securities Exchange
      Act
      of 1934 apply to Awards under the Plan, if any member of the Committee does
      not
      qualify as both an “outside director” for purposes of Code Section 162(m) and a
“non-employee director” for purposes of Rule 16b-3, the remaining members of the
      Committee (but not less than two members) shall be constituted as a subcommittee
      of the Committee to act as the Committee for purposes of the Plan.

    

    (j) “Commission”
means
      the U.S. Securities and Exchange Commission. 

    

    (k) “Company”
means
      Modigene Inc., a Nevada corporation, and its subsidiaries. 

    

    (l) “Company
      Stock”
means
      the common stock, par value $0.0001 per share, of the Company. In the event
      of a
      change in the capital structure of the Company affecting the common stock (as
      provided in Section 14), the shares resulting from such a change in the common
      stock shall be deemed to be Company Stock within the meaning of the
      Plan.

    

    (m) “Date
      of Grant”
means
      the date on which the Committee grants an Award, or such future date as may
      be
      determined by the Committee.

    

    (n) “Disability”
means
      a
      disability within the meaning of Code Section 22(e)(3).

     

    
      
        
        

      

      
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    (o) “Employer”
means
      the Company and each Affiliate that employs one or more Participants.

    

    (p) “Employment
      Agreement”
means
      any written employment or other similar agreement between the Participant and
      the Company or an Affiliate.

    

    (q) “Exchange
      Act”
means
      the Securities Exchange Act of 1934, as amended.

    

    (r) “Fair
      Market Value”
means
      on any given date the fair market value of Company Stock as of such date, as
      determined by the Committee. If the Company Stock is listed on a national
      securities exchange or traded on the over-the-counter market, Fair Market Value
      means the closing selling price or, if not available, the closing bid price
      or,
      if not available, the high bid price of the Company Stock quoted on such
      exchange, or on the over-the-counter market as reported by the NASDAQ Stock
      Market (“NASDAQ”),
      or if
      the Company Stock is not listed on NASDAQ, then by the National Quotation
      Bureau, Incorporated, on the day immediately preceding the day on which the
      Award is granted or exercised, as the case may be, or, if there is no selling
      or
      bid price on that day, the closing selling price, closing bid price, or high
      bid
      price on the most recent day which precedes that day and for which such prices
      are available.

    

    (s) “Incentive
      Stock Option”
means
      an Option that qualifies for favorable income tax treatment under Code Section
      422.

    

    (t) “Mature
      Shares”
means
      shares of Company Stock for which the stockholder has good title, free and
      clear
      of all liens and encumbrances.

    

    (u) “Nonqualified
      Stock Option”
means
      an Option that is not an Incentive Stock Option.

    

    (v) “Option”
means
      a
      right to purchase Company Stock granted under the Plan, at a price determined
      in
      accordance with the Plan.

    

    (w) “Outside
      Director”
means
      a
      member of the Board who is not an employee of, or a consultant or advisor to,
      the Company or an Affiliate as of the Date of Grant. 

    

    (x) “Ownership
      Change Event”
means
      the occurrence of any of the following with respect to the Company: (i) the
      direct or indirect sale or exchange in a single or series of related
      transactions by the stockholders of the Company of more than fifty percent
      (50%)
      of the voting stock of the Company; (ii) a merger or consolidation in which
      the Company is a party; or (iii) the sale, exchange, or transfer of all or
      substantially all of the assets of the Company (other than a sale, exchange
      or
      transfer to one or more subsidiaries of the Company).

    

    (y) “Participant”
means
      any employee, Outside Director, consultant, or advisor (including independent
      contractors, professional advisors, and service providers) of the Company or
      an
      Affiliate who receives an Award under the Plan.

    

    (z) “Restricted
      Stock”
means
      Company Stock awarded under Section 9 of the Plan.

    

    (aa) “Reload
      Option”
means
      a
      reload option grant made in accordance with Section 7 of the Plan.

    

    (bb) “Rule
      16b-3”
means
      Rule 16b-3 of the Commission promulgated under the Exchange Act. A reference
      in
      the Plan to Rule 16b-3 shall include a reference to any corresponding rule
      (or
      number redesignation) of any amendments to Rule 16b-3 enacted after the
      effective date of the Plan’s adoption.

     

    
      
        
        

      

      
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    (cc)   “Securities
      Act”
means
      the Securities Act of 1933, as amended.

    

    (dd) “Stock
      Appreciation Right”
means
      a
      right to receive amounts awarded under Section 8.

    

    3.
      Stock.
      Subject
      to Section 14 of the Plan, there shall be reserved for issuance under the Plan
      an aggregate of 3,000,000 shares of Company Stock, which may be authorized
      but
      unissued shares, or shares held in the Company’s treasury, or shares purchased
      from stockholders expressly for use under the Plan. In addition, shares
      allocable to Awards granted under the Plan that expire, are forfeited, are
      cancelled without the delivery of the shares, or otherwise terminate
      unexercised, may again be available for Awards under the Plan. For purposes
      of
      determining the number of shares that are available for Awards under the Plan,
      the number shall also include the number of shares surrendered by a Participant
      actually or by attestation or retained by the Company in payment of Applicable
      Withholding Taxes, and any Mature Shares surrendered by a Participant upon
      exercise of an Option or in payment of Applicable Withholding Taxes. Shares
      issued under the Plan through the settlement, assumption, or substitution of
      outstanding awards or obligations to grant future awards as a condition of
      an
      Employer acquiring another entity shall not reduce the maximum number of shares
      available for delivery under the Plan.

    

    4.
      Eligibility.
      Subject
      to the terms of the Plan, the Committee shall have the power and complete
      discretion, as provided in Section 13, to select eligible employees, Outside
      Directors, consultants, and advisors to receive an Award under the Plan;
provided,
      however,
      that
      any Award shall be subject to the following terms and conditions:

    

    (a) Only
      those individuals who are employees (including officers) of the Company or
      an
      Affiliate at the Date of Grant shall be eligible to receive an Incentive Stock
      Option under the Plan.

    

    (b) All
      employees (including officers) and Outside Directors of, or consultants and
      advisors to, either the Company or an Affiliate at the Date of Grant shall
      be
      eligible to receive Nonqualified Stock Options, Stock
      Appreciation Rights,
      and
      Restricted Stock; provided, however, that Nonqualified Stock Options, Stock
      Appreciation Rights, and Restricted Stock may not be granted to any such
      consultants and advisors unless (i) bona fide services have been or are to
      be
      rendered by such consultant or advisor and (ii) such services are not in
      connection with the offer or sale of securities in a capital raising
      transaction.

    

    (c) Anything
      herein to the contrary notwithstanding, any recipient of an Award under the
      Plan
      must be includable in the definition of “employee” provided in the general
      instructions to Form S-8 Registration Statement under the Securities
      Act.

    

    (d) The
      grant
      of an Award shall not obligate an Employer to pay any employee, Outside
      Director, consultant, or advisor any particular amount of remuneration, to
      continue the employment of the employee or engagement of the Outside Director,
      consultant, or advisor after the grant, or to make further grants to the
      employee, Outside Director, consultant, or advisor at any time
      thereafter.

    

    5.
      Stock
      Options.

    

    (a) The
      Committee may make grants of Options to Participants. Except as otherwise
      provided herein, the Committee shall determine the number of shares for which
      Options are granted, the Option exercise price per share, whether the Options
      are Incentive Stock Options or Nonqualified Stock Options, and any other terms
      and conditions to which the Options are subject.

    

    (b) Unless
      determined otherwise by the Committee on the Date of Grant, the exercise price
      of shares
      of
      Company Stock covered by an Option shall be not less than 100 percent of the
      Fair Market Value of Company Stock on the Date of Grant. Except as provided
      in
      Section 14, (i) the exercise price of an Option may not be decreased after
      the
      Date of Grant and (ii) a Participant may not surrender an Option in
      consideration for the grant of a new Option with a lower exercise price or
      another Award. 

     

    
      
        
        

      

      
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    (c) All
      Options granted hereunder shall be subject to the following terms and
      conditions:

    

    (i)
      All
      Options shall be evidenced by a written stock option agreement (the
“Stock
      Option Agreement”)
      setting forth all the relevant terms of the Award.

    

    (ii)
      No
      Option
      shall be exercisable more than 10 years after the Date of Grant.

    

    (iii)
      The
      aggregate Fair Market Value, determined at the Date of Grant, of shares for
      which Incentive Stock Options become exercisable by a Participant during any
      calendar year shall not exceed $100,000 and any amount in excess of $100,000
      shall be treated as a Nonqualified Stock Option. The maximum aggregate number
      of
      shares for which Incentive Stock Options may be issued under the Plan to any
      Participant in any calendar year shall be 200,000.

    

    (iv)
      If
      an
      Incentive Stock Option is granted to an employee who owns, at the Date of Grant,
      more than 10 percent of the total combined voting power of all classes of stock
      of the Company or an Affiliate, then (A) the option price of the shares subject
      to the Incentive Stock Option shall be at least 110% of the Fair Market Value
      of
      the Company Stock at the Date of Grant and (B) such Incentive Stock Option
      shall
      not be exercisable after the expiration of 5 years from the Date of
      Grant.

    

    (v)
      Subject
      to earlier termination of the Option as otherwise provided herein and unless
      otherwise provided in any Employment Agreement or as provided by the Committee
      in the grant of an Option and set forth in or incorporated into the Stock Option
      Agreement: (A) if
      the
      employment of an employee by, or the services of an Outside Director for, or
      consultant or advisor to, the Company or an Affiliate should be terminated
      for
      Cause or terminated voluntarily by the grantee, then any outstanding Option
      shall terminate immediately, (B) if such employment or services terminates
      for
      any other reason, any such Option exercisable as of the date of termination
      may
      be exercised at any time within three months of termination. For purposes of
      this subsection, (y) the retirement of an individual either pursuant to a
      pension or retirement plan maintained by the Company or an Affiliate or at
      the
      applicable normal retirement date prescribed from time to time by the Company
      shall be deemed to be termination of the individual’s employment other than
      voluntarily or for Cause, and (z) an individual who leaves the employ or
      services of the Company or an Affiliate to become an employee or Outside
      Director of, or a consultant or advisor to, an entity that has assumed the
      Option as a result of a corporate reorganization or the like shall not be
      considered to have terminated employment or services.

    

    (vi)
      Subject
      to earlier termination of the Option as otherwise provided herein and unless
      otherwise provided in any Employment Agreement or as provided by the Committee
      in the grant of an Option and set forth in or incorporated into the Stock Option
      Agreement, if
      the
      holder of an Option under the Plan ceases employment or services because of
      Disability while employed by, or while serving as an Outside Director for or
      a
      consultant or advisor to, the Company or an Affiliate, then such Option may,
      subject to the provisions of subsection (viii) below, be exercised at any time
      within one year after the termination of employment or services due to the
      Disability.

    

    (vii)
       Subject
      to earlier termination of the Option as otherwise provided herein and unless
      otherwise provided in any Employment Agreement or as provided by the Committee
      in the grant of an Option and set forth in or incorporated into the Stock Option
      Agreement, if
      the
      holder of an Option under the Plan dies (A) while employed by, or while serving
      as an Outside Director for or a consultant or advisor to, the Company or an
      Affiliate, or (B) within three months after the termination of employment or
      services other than voluntarily
      by the grantee or for Cause, then such Option may, subject to the provisions
      of
      subsection (viii) below, be exercised by the Participant’s Beneficiary at any
      time within one year after the Participant’s death.

     

    
      
        
        

      

      
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    (viii) An
      Option
      may not be exercised after termination of employment, termination of
      directorship, termination of consulting or advisory services, Disability or
      death except to the extent that the holder was entitled to exercise the Option
      at the time of such termination or as otherwise provided in a currently
      effective written Employment Agreement, consulting agreement or other related
      agreement executed between the Company and the employee, Outside Director or
      consultant or advisor, and in any event may not be exercised after the
      expiration of the Option in accordance with the terms of the grant.

    

    (ix) The
      employment relationship of an employee of the Company or an Affiliate shall
      be
      treated as continuing intact while the employee is on military or sick leave
      or
      other bona fide leave of absence if such leave does not exceed 90 days or,
      if
      longer, so long as the employee’s right to reemployment is guaranteed either by
      statute or by contract.

    

    (d) The
      holder of any Option granted under the Plan shall have none of the rights of
      a
      stockholder with respect to the shares covered by the Option until such stock
      shall be transferred to the holder upon the exercise of the Option.

    

    6. Grants
      to Outside Directors.
      Awards,
      other than Incentive Stock Options, may be made to Outside Directors. The
      Committee shall have the power and complete discretion to select Outside
      Directors to receive Awards. The Committee shall have the complete discretion,
      under provisions consistent with Section 13, to determine the terms and
      conditions, the nature of the Award and the number of shares to be allocated
      as
      part of each Award for each Outside Director. The grant of an Award shall not
      obligate the Company to make further grants to the Outside Director at any
      time
      thereafter or to retain any person as a director for any period of
      time.

    

    7. Reload
      Options.
      The
      Committee may grant Options with a reload feature. A reload feature shall only
      apply when the exercise price is paid by delivery of Company Stock in accordance
      with Section 10. The Stock Option Agreement for the Option containing the reload
      feature shall provide that the holder of the Option shall receive,
      contemporaneously with the payment of the exercise price in shares of Company
      Stock, a Reload Option to purchase that number of shares of Company Stock equal
      to the sum of (i) the number of shares used to exercise the Option, and (ii)
      with respect to Nonqualified Stock Options, the number of shares used to satisfy
      Applicable Withholding Taxes. The terms of the Plan applicable to the Option
      shall be equally applicable to the Reload Option with the following exceptions:
      the price per share of Company Stock deliverable upon the exercise of the Reload
      Option (i) in the case of a Reload Option that is an Incentive Stock Option
      being granted to a Participant who owns more than 10 percent of the total
      combined voting power of all classes of stock of the Company or an Affiliate,
      shall be 110% of the Fair Market Value of a share of Company Stock on the Date
      of Grant of the Reload Option, and (ii) in the case of a Reload Option which
      is
      an Incentive Stock Option being granted to any other Participant, or which
      is a
      Nonqualified Stock Option, shall be the Fair Market Value of a share of Company
      Stock on the Date of Grant of the Reload Option, unless the Committee shall
      determine otherwise on the Date of Grant, but in no event shall such price
      be
      less than the exercise price of the Option which gave rise to the Reload Option.
      The term of the Reload Option shall be the same as the Option which gave rise
      to
      the Reload Option. If the exercise price of an Option containing a reload
      feature is paid in cash and not in shares of Company Stock, the reload feature
      shall have no application with respect to such exercise.

    

    8. Stock
      Appreciation Rights.
      Concurrently with the award of any Option to purchase one or more shares of
      Company Stock, the Committee may, in its sole discretion, award to the optionee
      with respect to each share of Company Stock covered by an Option a related
      Stock
      Appreciation Right, which permits the optionee to be paid the appreciation
      on
      the related Option in lieu of exercising the Option. The Committee shall
establish
      as to each award of Stock Appreciation Rights the terms and conditions to which
      the Stock Appreciation Rights are subject; provided,
      however,
      that
      the following terms and conditions shall apply to all Stock Appreciation
      Rights:

     

    
      
        
        

      

      
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    (a) A
      Stock
      Appreciation Right granted with respect to an Incentive Stock Option must be
      granted together with the related Option. A Stock Appreciation Right granted
      with respect to a Nonqualified Stock Option may be granted together with the
      grant of the related Option.

    

    (b) A
      Stock
      Appreciation Right shall entitle the Participant, upon exercise of the Stock
      Appreciation Right, to receive in exchange an amount equal to the excess of
      (i)
      the Fair Market Value on the date of exercise of Company Stock covered by the
      surrendered Stock Appreciation Right, over (ii) the Fair Market Value of Company
      Stock on the Date of Grant of the Stock Appreciation Right. The Committee may
      limit the amount that the Participant will be entitled to receive upon exercise
      of a Stock Appreciation Right.

    

    (c) A
      Stock
      Appreciation Right may be exercised only if and to the extent the underlying
      Option is exercisable, and a Stock Appreciation Right may not be exercisable
      in
      any event more than 10 years after the Date of Grant.

    

    (d) A
      Stock
      Appreciation Right may only be exercised at a time when the Fair Market Value
      of
      Company Stock covered by the Stock Appreciation Right exceeds the Fair Market
      Value of Company Stock on the Date of Grant of the Stock Appreciation Right.
      The
      Stock Appreciation Right may provide for payment in Company Stock or cash,
      or a
      fixed combination of Company Stock and cash, or the Committee may reserve the
      right to determine the manner of payment at the time the Stock Appreciation
      Right is exercised.

    

    (e) To
      the
      extent a Stock Appreciation Right is exercised, the underlying Option shall
      be
      cancelled, and the shares of Company Stock represented by the Option shall
      no
      longer be available for Awards under the Plan.

    

    9. Restricted
      Stock Awards.

    

    (a) The
      Committee may make grants of Restricted Stock to a Participant. The Committee
      shall establish as to each award of Restricted Stock the terms and conditions
      to
      which the Restricted Stock is subject, including the period of time before
      which
      all restrictions shall lapse and the Participant shall have full ownership
      of
      the Company Stock. The Committee in its discretion may award Restricted Stock
      without cash consideration. All Restricted Stock Awards shall be evidenced
      by a
      Restricted Stock Agreement setting forth all the relevant terms of the
      Award.

    

    (b) Except
      as
      provided in Section 12, Restricted Stock may not be sold, assigned, transferred,
      pledged, hypothecated, or otherwise encumbered or disposed of until the
      restrictions have lapsed or been removed. Certificates representing Restricted
      Stock shall be held by the Company until the restrictions lapse, and the
      Participant shall provide the Company with appropriate stock powers endorsed
      in
      blank.

    

    10. Method
      of Exercise of Options.

    

    (a) Options
      may be exercised by the Participant (or his or her legal guardian or personal
      representative) by giving written notice of the exercise to the Company at
      its
      principal office (attention of the Corporate Secretary) pursuant to procedures
      established by the Company. The notice shall state the number of shares the
      Participant has elected to purchase under the Option. Such notice shall be
      accompanied, or followed within 10 days of delivery thereof, by payment of
      the
      full exercise price of such shares. The exercise price may be paid in cash
      by
      means of a check payable to the order of the Company or, if the terms of an
      Option permit, (i) by delivery or attestation of Mature Shares (valued at their
      Fair Market Value) in satisfaction of all or any part of
      the
      exercise price, (ii) by delivery of a properly executed exercise notice with
      irrevocable instructions to a broker to deliver to the Company the amount
      necessary to pay the exercise price from the sale or proceeds of a loan from
      the
      broker with respect to the sale of Company Stock or a broker loan secured by
      the
      Company Stock,
      (iii) by such other consideration as may be approved by the Committee from
      time to time to the extent permitted by applicable law, or (iv) by any
      combination of (i) through (iii) hereof.

     

    
      
        
        

      

      
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    (b) Unless
      prior to the exercise of the Option the shares issuable upon such exercise
      have
      been registered with the Commission pursuant to the Securities Act, the notice
      of exercise shall be accompanied by a representation or agreement of the
      individual or entity exercising the Option to the Company to the effect that
      such shares are being acquired for investment purposes and not with a view
      to
      the distribution thereof, and such other documentation as may be required by
      the
      Company, unless in the opinion of counsel to the Company such representation,
      agreement or documentation is not necessary to comply with any such
      act.

    

    (c) The
      Company shall not be obligated to deliver any Company Stock until the shares
      have been listed on each securities exchange or market on which the Company
      Stock may then be listed or until there has been qualification under or
      compliance with such federal or state laws, rules or regulations as the Company
      may deem applicable. The Company shall use reasonable efforts to obtain such
      listing, qualification and compliance.

    

    11. Tax
      Withholding.
      Each
      Participant shall agree as a condition of receiving an Award payable in the
      form
      of Company Stock to pay to the Employer, or make arrangements satisfactory
      to
      the Employer regarding the payment to the Employer of, Applicable Withholding
      Taxes. Under procedures established by the Committee or its delegate, a
      Participant may elect to satisfy Applicable Withholding Taxes by (i) making
      a
      cash payment or authorizing additional withholding from cash compensation,
      (ii)
      delivering Mature Shares (valued at their Fair Market Value), or (iii) if the
      applicable Stock Option Agreement or Restricted Stock Agreement permits, having
      the Company retain that number of shares of Company Stock (valued at their
      Fair
      Market Value) that would satisfy all or a specified portion of the Applicable
      Withholding Taxes.

    

    12. Transferability
      of Awards.
      Except
      as
      otherwise so provided by the Committee, awards under the Plan are not
      transferable except as designated by the Participant by will or by the laws
      of
      descent and distribution or pursuant to a qualified domestic relations order,
      as
      defined in the Code or Title I of the Employee Retirement Income Security Act
      of
      1974, as amended. The Committee shall have the discretion to permit the transfer
      of awards under the plan; provided,
      however,
      that
      such transfers shall be limited to immediate family members of participants,
      trusts and partnerships established for the primary benefit of such family
      members or to charitable organizations, and; provided,
      further,
      that
      such transfers are not made for consideration to the Participant.

    

    13. Administration
      of the Plan.

    

    (a) The
      Committee shall administer the Plan. Subject to the terms and conditions set
      forth in the Plan, the Committee shall have general authority to impose any
      term, limitation, or condition upon an Award that the Committee deems
      appropriate to achieve the objectives of the Award and of the Plan. The
      Committee may adopt rules and regulations for carrying out the Plan with respect
      to Participants and Beneficiaries. The interpretation and construction of any
      provision of the Plan by the Committee shall be final and conclusive as to
      any
      Participant or Beneficiary.

    

    (b) The
      Committee shall have the power to amend the terms and conditions of previously
      granted Awards so long as the terms as amended are consistent with the terms
      of
      the Plan and provided that the consent of the Participant is obtained with
      respect to any amendment that would be detrimental to him or her, except that
      such consent will not be required if such amendment is for the purpose of
      complying with Rule 16b-3 or any requirement of the Code or of other securities
      laws applicable to the Award.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    

    (c) The
      Committee shall have the power and complete discretion (i) to delegate to any
      individual, or to any group of individuals employed by the Company or any
      Affiliate, the authority to grant Awards under the Plan and (ii) to determine
      the terms and limitations of any delegation of authority; provided,
      however,
      that
      the Committee may not delegate power and discretion to the extent such action
      would cause noncompliance with, or the imposition of penalties, excise taxes,
      or
      other sanctions under, applicable corporate law, Rule 16b-3, Code Section 162(m)
      or 409A, or any other applicable securities or tax law.

    

    (d) The
      Committee shall have the power to include one or more provisions in the terms
      of
      Award grants to provide for the cancellation of an outstanding Award in the
      event the Participant violates any agreement or other obligation dealing with
      non-competition, non-solicitation or protection of the Company’s confidential
      information. 

    

    
      
        14.
          Change
          in Capital Structure; Change of Control.

      

    

    

    (a) Change
      in Capital Structure. In
      the
      event of a stock dividend, stock split, or combination of shares, share
      exchange, share distribution, recapitalization or merger in which the Company
      is
      the surviving corporation, a spin-off or split-off of a subsidiary or Affiliate,
      or other change in the Company’s capital stock (including, but not limited to,
      the creation or issuance to stockholders generally of rights, options, or
      warrants for the purchase of common stock or preferred stock of the Company),
      the aggregate number and kind of shares of stock or securities of the Company
      to
      be subject to the Plan and to Awards then outstanding or to be granted, the
      maximum number of shares or securities which may be delivered under the Plan
      under Sections 3, 5(b), or 8, the per share exercise price of Options, the
      terms
      of Awards, and other relevant provisions shall be proportionately and
      appropriately adjusted by the Committee in its discretion, and the determination
      of the Committee shall be binding on all persons. If the adjustment would
      produce fractional shares with respect to any unexercised Option, the Committee
      may adjust appropriately and in a nondiscriminatory manner the number of shares
      covered by the Option so as to eliminate the fractional shares.

    

    (b) Effect
      of Change in Control on Options and Stock Appreciation Rights.
Subject
      to the terms of any Employment Agreement, the Committee may provide in an Award
      agreement for, or in the event of a Change in Control may take such actions
      as
      it deems appropriate to provide for, any one or more of the
      following:

    

    (i) Accelerated
      Vesting.
      The
      Committee may provide for the acceleration of the exercisability and vesting
      in
      connection with a Change in Control of any or all outstanding Options and Stock
      Appreciation Rights and shares acquired upon the exercise thereof upon such
      conditions, including termination of the Participant’s service prior to, upon,
      or following such Change in Control, and to such extent as the Committee shall
      determine.

     

    (ii) Assumption
      or Substitution.
      In the
      event of a Change in Control, the surviving, continuing, successor, or
      purchasing entity or parent thereof, as the case may be (the “Acquiror”),
      may,
      without the consent of any Participant, either assume or continue the Company’s
      rights and obligations under any or all outstanding Options and Stock
      Appreciation Rights or substitute for any or all outstanding Options and Stock
      Appreciation Rights substantially equivalent options and stock appreciation
      rights (as the case may be) for the Acquiror’s stock. Any Options or Stock
      Appreciation Rights which are neither assumed or continued by the Acquiror
      in
      connection with the Change in Control nor exercised as of the time of
      consummation of the Change in Control shall terminate and cease to be
      outstanding effective as of the time of consummation of the Change in
      Control.

     

    (iii) Cash-Out.
      The
      Committee may, in its sole discretion and without the consent of any
      Participant, determine that, upon the occurrence of a Change in Control, each
      or
      any Option or Stock Appreciation
      Right outstanding immediately prior to the Change in Control shall be canceled
      in exchange for a payment with respect to each vested share (and each unvested
      share, if so determined by the Committee) of Company Stock subject to such
      canceled Option or Stock Appreciation Right in (A) cash, (B) stock of
      the Company or of a corporation or other business entity a party to the Change
      in Control, or (C) other property which, in any such case, shall be in an
      amount having a Fair Market Value equal to the excess of the Fair Market Value
      of the consideration to be paid per share of Company Stock in the Change in
      Control over the exercise price per share under such Option or Stock
      Appreciation Right (the “Spread”).
      In
      the event such determination is made by the Committee, the Spread (reduced
      by
      applicable withholding taxes, if any) shall be paid to Participants in respect
      of the vested portion (and unvested portion, if so determined by the Committee)
      of their canceled Options and Stock Appreciation Rights as soon as practicable
      following the date of the Change in Control.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    (iv) Effect
      of Change in Control on Restricted Stock Awards.
      The
      Committee may provide for the acceleration of the vesting of the shares subject
      to the Restricted Stock Award upon such conditions, including termination of
      the
      Participant’s services to the Company prior to, upon, or following such Change
      in Control, and to such extent as the Committee shall determine.

    

    15. Effective
      Date.
      The
      effective date of the Plan is April [ ], 2007. The Plan shall be submitted
      to
      the stockholders of the Company for approval. Until (i) the Plan has been
      approved by the Company’s stockholders, and (ii) the requirements of any
      applicable federal or state securities laws have been met, no Restricted Stock
      shall be awarded, and no Option shall be granted or exercisable, that is not
      contingent on these events.

    

    16. Termination,
      Modification.
      If not
      sooner terminated by the Board, this Plan shall terminate at the close of
      business on April [ ], 2017. No Awards shall be made under the Plan after its
      termination. The Board may amend or terminate the Plan as it shall deem
      advisable; provided,
      however,
      that no
      change shall be made that increases the total number of shares of Company Stock
      reserved for issuance pursuant to Awards granted under the Plan (except pursuant
      to Section 14), or reduces the minimum exercise price for Options, or exchanges
      an Option for another Award, unless such change is authorized by the
      stockholders of the Company within one year of the date of such change. Except
      as otherwise specifically provided herein, a termination or amendment of the
      Plan shall not, without the consent of the Participant, adversely affect a
      Participant’s rights under an Award previously granted to him or
      her.

    

    17. American
      Jobs Creation Act of 2004.

     

    (a) It
      is
      intended that the Plan comply in all applicable respects with Code Sections
      409A(a)(2) through (4), as it may be amended from time to time, and any rulings,
      regulations, or other guidelines promulgated under either or both statutes
      (such
      statutes, rulings, regulations and other guidelines to be referred to
      collectively herein as “Section 409A”). This Plan, and any amendments thereto,
      shall therefore be interpreted and implemented at all times so as to (i) ensure
      compliance with Section 409A and (ii) avoid any penalty or early taxation of
      any
      payment or benefit under the Plan.

    

    (b) Anything
      herein to the contrary notwithstanding, the Board shall approve and implement
      such amendments as it deems necessary or desirable to ensure compliance with
      Section 409A and to avoid any penalty or early taxation of any payment or
      benefit under this Plan; provided,
      however,
      that no
      change shall be made that increases the total number of shares of Company Stock
      reserved for issuance pursuant to Awards granted under the Plan (except pursuant
      to Section 14), or reduces the minimum exercise price for Options, or exchanges
      an Option for another Award, unless such change is authorized by the
      stockholders of the Company. No such amendment shall require the consent of
      any
      Participant.

    

    18. Interpretation
      and Venue.
      Except
      to the extent preempted by applicable federal law, the terms
      of
      this Plan shall be governed by the laws of the State of New York without regard
      to its conflict of laws rules.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    FIRST
      AMENDMENT TO 2007
      EQUITY INCENTIVE PLAN

    

    This
      First Amendment to 2007 Equity Incentive Plan (this “Amendment”)
      is
      effective upon adoption by the Compensation Committee of the Board of Directors
      of Modigene Inc., a Nevada corporation (the “Company”),
      as
      provided in and permitted by Section 13(b) of the 2007 Equity Incentive Plan
      of
      the Company (the “2007
      Plan”).
      For
      purposes of this Amendment, all capitalized terms not defined herein shall
      be
      used as defined in the 2007 Plan.

    

    From
      and
      after the effectiveness of this Amendment, Section 5(c) of the 2007 Plan shall
      be deleted in its entirety and replaced with the following:

    

    “(c) All
      Options granted hereunder shall be subject to the following terms and
      conditions:

    

    (i) All
      Options shall be evidenced by a written stock option agreement (the
“Stock
      Option Agreement”)
      setting forth all the relevant terms of the Award.

    

    (ii) No
      Option
      shall be exercisable more than 10 years after the Date of Grant.

    

    (iii) The
      aggregate Fair Market Value, determined at the Date of Grant, of shares for
      which Incentive Stock Options become exercisable by a Participant during any
      calendar year shall not exceed $100,000 and any amount in excess of $100,000
      shall be treated as a Nonqualified Stock Option. The maximum aggregate number
      of
      shares for which Incentive Stock Options may be issued under the Plan to any
      Participant in any calendar year shall be 200,000.

    

    (iv) If
      an
      Incentive Stock Option is granted to an employee who owns, at the Date of Grant,
      more than 10 percent of the total combined voting power of all classes of stock
      of the Company or an Affiliate, then (A) the option price of the shares subject
      to the Incentive Stock Option shall be at least 110% of the Fair Market Value
      of
      the Company Stock at the Date of Grant and (B) such Incentive Stock Option
      shall
      not be exercisable after the expiration of 5 years from the Date of
      Grant.

    

    (v) Subject
      to earlier termination of the Option as otherwise provided herein and unless
      otherwise provided in any Employment Agreement or as provided by the Committee
      and set forth in or incorporated into the Stock Option Agreement or amendment
      thereto: (A) if
      the
      employment of an employee by, or the services of an Outside Director for, or
      consultant or advisor to, the Company or an Affiliate should be terminated
      for
      Cause or terminated voluntarily by the grantee, then any outstanding Option
      shall terminate immediately, (B) if such employment or services terminates
      for
      any other reason, any such Option exercisable as of the date of termination
      may
      be exercised at any time within three months of termination. For purposes of
      this subsection, (y) the retirement of an individual either pursuant to a
      pension or retirement plan maintained by the Company or an Affiliate or at
      the
      applicable normal retirement date prescribed from time to time by the Company
      shall be deemed to be termination of the individual’s employment other than
      voluntarily or for Cause, and (z) an individual who leaves the employ or
      services of the Company or an Affiliate to become an employee or Outside
      Director of, or a consultant or advisor to, an entity that has assumed the
      Option as a result of a corporate reorganization or the like shall not be
      considered to have terminated employment or services.

    

    (vi) Subject
      to earlier termination of the Option as otherwise provided herein and unless
      otherwise provided in any Employment Agreement or as provided by the Committee
      and set forth in or incorporated into the Stock Option Agreement or amendment
      thereto, if
      the
      holder of an Option under the Plan ceases employment or services because of
      Disability while employed by, or while serving as an Outside Director
      for or a consultant or advisor to, the Company or an Affiliate, then such Option
      may, subject to the provisions of subsection (viii) below, be exercised at
      any
      time within one year after the termination of employment or services due to
      the
      Disability.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    (vii) Subject
      to earlier termination of the Option as otherwise provided herein and unless
      otherwise provided in any Employment Agreement or as provided by the Committee
      and set forth in or incorporated into the Stock Option Agreement or amendment
      thereto, if
      the
      holder of an Option under the Plan dies (A) while employed by, or while serving
      as an Outside Director for or a consultant or advisor to, the Company or an
      Affiliate, or (B) within three months after the termination of employment or
      services other than voluntarily by the grantee or for Cause, then such Option
      may, subject to the provisions of subsection (viii) below, be exercised by
      the
      Participant’s Beneficiary at any time within one year after the Participant’s
      death.

    

    (viii) An
      Option
      may not be exercised after termination of employment, termination of
      directorship, termination of consulting or advisory services, Disability or
      death except to the extent that the holder was entitled to exercise the Option
      at the time of such termination or as otherwise provided in a currently
      effective written Employment Agreement, consulting agreement or other related
      agreement executed between the Company and the employee, Outside Director or
      consultant or advisor, and in any event may not be exercised after the
      expiration of the Option in accordance with the terms of the grant.

    

    (ix) The
      employment relationship of an employee of the Company or an Affiliate shall
      be
      treated as continuing intact while the employee is on military or sick leave
      or
      other bona fide leave of absence if such leave does not exceed 90 days or,
      if
      longer, so long as the employee’s right to reemployment is guaranteed either by
      statute or by contract.”

    

    **********

     

    
      
        
        

      

      
        12EXECUTIVE
      EMPLOYMENT AGREEMENT

    

     

    EXECUTIVE
      EMPLOYMENT AGREEMENT (this "Agreement") is effective as of 1st
      day
      of
      January, 2007, between Mendocino Brewing Company, Inc., 1601, Airport Road,
      Ukiah, CA 95482 ("Company") and Mr.Yashpal Singh ("Executive")

     

    WITNESSETH

    

    WHEREAS,
      Executive possesses professional qualifications, experience and detailed
      knowledge of the company's business; and

    

    WHEREAS,
      company recognizes Executive's importance to the growth and success of Company
      and desires to assure Executives contributions and to compensate him in a manner
      which it has determined will reinforce and encourage his continued attention
      and
      dedication; and

    

    WHEREAS
      Company is desirous of extending the employment agreement entered as of May
      1,
      1999 with the Executive; and

     

    WHEREAS
      Executive is desirous of committing himself to continue to serve Company on
      the
      terms herein provided; and

    

    NOW,
      THEREFORE, in consideration of forgoing and of the respective covenants and
      agreements of the parties herein contained, the parties hereto hereby agree
      as
      follows:

     

    1) EMPLOYMENT

      

    
      	a)  	
              Company
                hereby continues to employ Executive for the further period commencing
                on
                January 1, 2007 for a period of four years, unless such employment
                is
                sooner terminated as provided in this
                Agreement.

            

    

    
      	b)  	
              Executive
                hereby accepts employment under this Agreement and agrees to devote
                all
                his best efforts and his full time and attention exclusively to the
                business and affairs of Company. During the term of this Agreement,
                Executive shall report to, and shall perform such duties and
                responsibilities as may be assigned to him by the Board of Directors
                of
                the Company (“Board”) or such other person as the Board or Chairman may
                designate. Company shall retain full direction and control of the
                manner,
                means and methods by which Executive performs the services for which
                he is
                employed hereunder and of the places at which such services shall
                be
                rendered.

            

    

    
      	c) 	Executive shall observe and comply
              with
              Company's rules and regulations. 

    

     

    2)
      DESIGNATION AND COMPENSATION

     

    
      	a)	
              Designation
                and Base Salary

            

    

    The
      Board
      in their meeting held on January 14, 2005 unanimously passed a resolution
      designating the Executive as President and Chief Executive Officer. The base
      salary of the Executive shall be at the annual rate of $189,000 with effect
      from
      January 1, 2007.The salary is payable in accordance with the Company's standard
      payoff practices as in effect from time to time, prorated in any partial year
      of
      employment.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Executive
      shall be entitled for an annual salary increase, based on a review of
      performance and such increases will be determined by the Board of Directors
      of
      the company in its sole discretion.

    

    
      	b)	
              Reimbursement

            

    

    Executive
      shall be entitled to reimbursement for reasonable travel and other business
      expenses incurred in the performance of his duties under this Agreement in
      accordance with the general policy of Company, as it may change from time to
      time, provided the Executive provides an itemized account together with
      supporting receipts for such expenditures in accordance with the requirements
      set forth in the Internal Revenue Code of 1986, as amended, and related
      regulations, subject to the right of Company at any time to place reasonable
      limitations on such expenses thereafter to be incurred or
      reimbursed.

    

    
      c)       
        Withholding

    

    Company
      shall be entitled to withhold from any compensation paid or payable hereunder
      such amounts on account of payroll taxes, income taxes and other similar matters
      as are required to be withheld by applicable law.

    

    d)       
      Medical

    Executive
      and his immediate dependent family members in USA will be provided full coverage
      for medical, dental and vision.

    

    
      	e)	
              Life
                Insurance

            

    

    Executive
      shall be reimbursed for a policy of life insurance for the face value of
      $250,000.

    

    
      	f)	
              Vacation

            

      	 	
              Executive shall be entitled to
                five weeks
                paid vacation in each calendar year. Vacation can be accrued up to
                twenty
                weeks, if not availed. The Company will pay for business class to
&
                fro Airfare for the Executive and his family to visit India. Executive
                shall also be entitled to 4 days each of Sick and Personal leave
                per year.
                Vacation leave is to receive prior formal approval of concerned officers
                of the company. In case Executive or his family members are unable
                to
                avail vacation and Airfare in a particular year, then the same can
                be
                availed in any subsequent period.

            

    

     

    

    
      	g)     
                	
              Bonus
                Executive
                shall be entitled up to 10% Bonus, paid annually based on performance
                review.

            

    

    

    
      	h)     
                	
              Benefit
                Plans

            

    

    Subject
      to any limitations imposed by applicable law
      Executive shall be eligible to participate in all Company employee benefit
      programs in substantially the same manner and to substantially the same extent
      as other company employees. Executive will be provided with company
      cars.

     

    3)
      TERMINATION /
      EXTENSION
      OF EMPLOYMENT BY THE COMPANY

     

    
      
        	a)	
                Company
                  may terminate this agreement with or without cause at any time
                  giving
                  twelve months notice or compensation lieu thereof in
                  lumpsum

              

      

    

    
      
        	
                b)

              	
                Executive may terminate this Agreement
                  after
                  giving notice of twelve
                  months.

              

      

    

    
      
        	
                c)

              	
                Company
                  may extend the term of Agreement with the written consent of the
                  Executive
                  four months prior to expiration of this agreement for a minimum
                  period of
                  one year.

              

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        	d)	
                Company
                  shall provide business class airfare for the Executive and his
                  family to
                  return to India, in addition to transportation of his belongings
                  from the
                  place of his residence in USA to the place of his residence in
                  India in
                  event of completion of term of this Agreement or termination of
                  this
                  agreement on account of Clause 3(a) or
                  3(b).

              

      

    

    

    4) DEATH
      OF EXECUTIVE

    In
      the
      event of the death of Executive during the period of his employment herewith,
      Executive's salary herewith shall be paid up through the end of next month
      in
      which the date of death occurs. In such an event, as provided in clause 3 d)
      above the Company will pay for transportation of Executive's belongings and
      business class airfare for his family to India.

    

    5)
      MISCELLANEOUS

    

    
      
        	a)	
                Governing
                  Law This
                  Agreement shall be governed by and constructed according to the
                  laws of
                  the State of California without regard to the principles thereof
                  regarding
                  conflict of laws.

              

      

    

    

    b)        Amendment
      This
      Agreement may be amended only by a writing signed by Executive and by Company's
      Chairman.

    

    c)       
      Construction

    The
      headings and captions of this Agreement are provided for convenience only and
      are intended to have no effect in construing or interpreting this Agreement.
      The
      language in all parts of this Agreement shall be in all cases construed
      according to its fair meaning and strictly for or against Company or
      Executive.

    

    d)       
      Attorneys'
      Fees

    Should
      either party hereto, or any heir, personal representative, successor or assign
      of either party hereto, resort to litigation or arbitration to enforce this
      Agreement, the party or parties prevailing in such litigation or arbitration
      to
      addition to such other relief as may be granted, to recover its or their
      reasonable attorneys fees and costs in such litigation from the party or parties
      against whom enforcement was sought.

    

    e)       
      Notices

    Any
      notice, request, consent or approval required or permitted to be given under
      this Agreement or pursuant to law shall be sufficient if in writing, and if
      and
      when delivered personally, by facsimile or sent by certified or registered
      mail,
      with postage prepaid, to Executive's residence ( as noted in Company's records
      ), or to Company's principal executive office, as the case may be.

    

    IN
      WITNESS WHEREOF, the undersigned have executed this Agreement on the
      18th
      day of
      April, 2007.

    

    
      	
              EXECUTIVE

            	
              MENDOCINO
                BREWING CO., INC.

            
	 	 
	YASHPAL SINGH	
              SURY
                RAO PALAMAND

              PRESIDENT

              COMPENSATION
                COMMITTEE

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