Document:

Exhibit 10.1
    

    
      COPYTELE, INC.
    

    
      2010 SHARE INCENTIVE PLAN
    

    
      1.  Purpose.  The CopyTele, Inc. 2010 Share Incentive
      Plan (the “Plan”) is intended to provide incentives which will attract,
      retain and motivate highly competent persons as officers, key employees
      and non-employee directors (“Director Participants”), of, and
      consultants to, CopyTele, Inc. (the “Company”) and its subsidiaries and
      affiliates, by providing them opportunities to acquire shares of the
      Company’s common stock, par value $.01 per share (the “Common Stock”),
      or to receive monetary payments based on the value of such shares
      pursuant to the Benefits (as defined below) described
      herein.  Additionally, the Plan is intended to assist in further
      aligning the interests of the Company’s officers, key employees and
      consultants to those of its other stockholders.
    

    
      2.  Administration.
    

    
      (a)  The Plan will be administered by a committee (the “Committee”)
      appointed by the Board of Directors of the Company from among its
      members (which may be the Compensation Committee) and shall be
      comprised, unless otherwise determined by the Board of Directors, solely
      of not less than two members who shall be (i) “Non-Employee Directors”
      within the meaning of Rule 16b 3(b)(3) (or any successor rule)
      promulgated under the Securities Exchange Act of 1934, as amended (the
      “Exchange Act”) and (ii) “outside directors” within the meaning of
      Treasury Regulation Section 1.162-27(e)(3) under Section 162(m) of the
      Internal Revenue Code of 1986, as amended (the “Code”).  The Committee
      is authorized, subject to the provisions of the Plan, to establish such
      rules and regulations as it deems necessary for the proper
      administration of the Plan and to make such determinations and
      interpretations and to take such action in connection with the Plan and
      any Benefits granted hereunder as it deems necessary or advisable.  All
      determinations and interpretations made by the Committee shall be
      binding and conclusive on all participants and their legal
      representatives.  No member of the Committee and no employee of the
      Company shall be liable for any act or failure to act hereunder, except
      in circumstances involving his or her bad faith, gross negligence or
      willful misconduct, or for any act or failure to act hereunder by any
      other member or employee or by any agent to whom duties in connection
      with the administration of this Plan have been delegated.  The Company
      shall indemnify members of the Committee and any agent of the Committee
      who is an employee of the Company, a subsidiary or an affiliate against
      any and all liabilities or expenses to which they may be subjected by
      reason of any act or failure to act with respect to their duties on
      behalf of the Plan, except in circumstances involving such person’s bad
      faith, gross negligence or willful misconduct.
    

    

    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    

    

    
      (b)  The Committee may delegate to one or more of its members, or to one
      or more agents, such administrative duties as it may deem advisable, and
      the Committee, or any person to whom it has delegated duties as
      aforesaid, may employ one or more persons to render advice with respect
      to any responsibility the Committee or such person may have under the
      Plan.  The Committee may employ such legal or other counsel, consultants
      and agents as it may deem desirable for the administration of the Plan
      and may rely upon any opinion or computation received from any such
      counsel, consultant or agent.  Expenses incurred by the Committee in the
      engagement of such counsel, consultant or agent shall be paid by the
      Company, or the subsidiary or affiliate whose employees have benefited
      from the Plan, as determined by the Committee.
    

    
      3.  Participants.  Participants will consist of such
      officers, key employees and Director Participants of, and such
      consultants to, the Company and its subsidiaries and affiliates 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 Benefits under the Plan.  Designation of a participant in any
      year shall not require the Committee to designate such person to receive
      a Benefit in any other year or, once designated, to receive the same
      type or amount of Benefit as granted to the participant in any other
      year.  The Committee shall consider such factors as it deems pertinent
      in selecting participants and in determining the type and amount of
      their respective Benefits.
    

    
      4.  Type of Benefits.  Benefits under the Plan may be
      granted in any one or a combination of (a) Stock Options, (b) Stock
      Appreciation Rights, (c) Stock Awards, (d) Performance Awards and (e)
      Stock Units (each as described below, and collectively, the
      “Benefits”).  Stock Awards, Performance Awards, and Stock Units may, as
      determined by the Committee in its discretion, constitute
      Performance-Based Awards, as described in Section 12 hereof.  Benefits
      shall be evidenced by agreements (which need not be identical) in such
      forms as the Committee may from time to time approve; provided, however,
      that in the event of any conflict between the provisions of the Plan and
      any such agreements, the provisions of the Plan shall prevail.
    

    
      5.  Common Stock Available Under the Plan.  The
      aggregate number of shares of Common Stock that may be subject to
      Benefits, including Stock Options, granted under this Plan shall be
      15,000,000 shares of Common Stock, which may be authorized and unissued
      or treasury shares, subject to any adjustments made in accordance with
      Section 15 hereof.  Any shares of Common Stock subject to a Stock Option
      or Stock Appreciation Right which for any reason is cancelled or
      terminated without having been exercised, any shares subject to Stock
      Awards, Performance Awards or Stock Units which are forfeited, any
      shares subject to Performance Awards settled in cash or any shares
      delivered to the Company as part or full payment for the exercise of a
      Stock Option or Stock Appreciation Right shall again be available for
      Benefits under the Plan.  
    

    
      6.  Stock Options.  Stock Options will consist of
      awards from the Company that will enable the holder to purchase a number
      of shares of Common Stock, at set terms.  Stock Options may be
      “incentive stock options”, within the meaning of Section 422 of the Code
      (“Incentive Stock Options”), or Stock Options which do not constitute
      Incentive Stock Options (“Nonqualified Stock Options”); provided,
      however, that grants of Incentive Stock Options may only be made to
      employees of the Company, a subsidiary corporation or parent corporation
      and that Incentive Stock Option grants made prior to approval of the
      grant of Incentive Stock Options under the Plan by stockholders of the
      Company shall be subject to such approval and provided, further, that if
      stockholder approval of the grant of Incentive Stock Options under the
      Plan is not obtained within twelve months of adoption of the Plan by the
      Board of Directors, any Stock Option granted during the twelve month
      period after adoption of the Plan by the Board of Directors that is
      designated as an Incentive Stock Option shall be treated thereafter as
      Nonqualified Stock Option.  The Committee will have the authority to
      grant to any participant, including officers, key employees, Director
      Participants, and consultants, Nonqualified Stock Options, or, for those
      participants who are employees of the Company, a subsidiary corporation
      or parent corporation both types of Stock Options (in each case with or
      without Stock Appreciation Rights).  Each Stock Option shall be subject
      to such terms and conditions consistent with the Plan as the Committee
      may impose from time to time, subject to the following limitations:
    

    

    

    
      
        

        

      

      
        
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      (a)  Exercise Price.  Each Stock Option granted
      hereunder shall have such per-share exercise price as the Committee may
      determine at the date of grant provided that such per share exercise
      price shall be at least equal to the Fair Market Value; subject to
      subsection (d), below.
    

    
      (b)  Payment of Exercise Price.  The option exercise
      price may be paid in cash or, in the discretion of the Committee, by the
      delivery of shares of Common Stock of the Company then owned by the
      participant, or by delivery to the Company of (x) irrevocable
      instructions to deliver directly to a broker the stock certificates
      representing the shares for which the Stock Option is being exercised,
      and (y) irrevocable instructions to such broker to sell such shares for
      which the Stock Option is being exercised, and promptly deliver to the
      Company the portion of the proceeds equal to the Stock Option exercise
      price and any amount necessary to satisfy the Company’s obligation for
      withholding taxes, or any combination thereof.  For purposes of making
      payment in shares of Common Stock, such shares shall be valued at their
      Fair Market Value (as defined below) on the date of exercise of the
      Stock Option and shall have been held by the participant for at least
      six months.  To facilitate the foregoing, the Company may enter into
      agreements for coordinated procedures with one or more brokerage
      firms.  The Committee may prescribe any other method of paying the
      exercise price that it determines to be consistent with applicable law
      and the purpose of the Plan, including, without limitation, in lieu of
      the exercise of a Stock Option by delivery of shares of Common Stock of
      the Company then owned by a participant, providing the Company with a
      notarized statement attesting to the number of shares owned, where upon
      verification by the Company, the Company would issue to the participant
      only the number of incremental shares to which the participant is
      entitled upon exercise of the Stock Option.  The Committee may, at the
      time of grant, provide for the grant of a subsequent Restoration Stock
      Option if the exercise price is paid for by delivering previously owned
      shares of Common Stock of the Company.  Restoration Stock Options (i)
      may be granted in respect of no more than the number of shares of Common
      Stock tendered in exercising the predecessor Stock Option, (ii) shall
      have an exercise price equal to the Fair Market Value on the date the
      Restoration Stock Option is granted, and (iii) may have an exercise
      period that does not extend beyond the remaining term of the predecessor
      Stock Option.  In determining which methods a participant may utilize to
      pay the exercise price, the Committee may consider such factors as it
      determines are appropriate.
    

    

    

    
      
        

        

      

      
        
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      (c)  Exercise Period.  Stock Options granted under the
      Plan shall be exercisable at such time or times and subject to such
      terms and conditions as shall be determined by the Committee; provided,
      however, that no Stock Option shall be exercisable later than ten years
      after the date it is granted.  All Stock Options shall terminate at such
      earlier times and upon such conditions or circumstances as the Committee
      shall in its discretion set forth in such option agreement at the date
      of grant; provided, however, the Committee may, in its sole discretion,
      later waive any such condition.
    

    
      (d)  Limitations on Incentive Stock Options.  Incentive
      Stock Options may be granted only to participants who are employees of
      the Company or one of its subsidiaries (within the meaning of Section
      424(f) of the Code) at the date of grant.  The aggregate Fair Market
      Value (determined as of the time the Stock Option is granted) of the
      Common Stock with respect to which Incentive Stock Options are
      exercisable for the first time by a participant during any calendar year
      (under all option plans of the Company and of any parent corporation or
      subsidiary corporation (as defined in Sections 424(e) and (f) of the
      Code, respectively)) shall not exceed $100,000.  For purposes of the
      preceding sentence, Incentive Stock Options will be taken into account
      in the order in which they are granted.  The per-share exercise price of
      an Incentive Stock Option shall not be less than 100% of the Fair Market
      Value of the Common Stock on the date of grant, and no Incentive Stock
      Option may be exercised later than ten years after the date it is
      granted; provided, however, Incentive Stock Options may not be granted
      to any participant who, at the time of grant, owns stock possessing
      (after the application of the attribution rules of Section 424(d) of the
      Code) more than 10% of the total combined voting power of all classes of
      stock of the Company or any parent or subsidiary corporation of the
      Company, unless the exercise price is fixed at not less than 110% of the
      Fair Market Value of the Common Stock on the date of grant and the
      exercise of such option is prohibited by its terms after the expiration
      of five years from the date of grant of such option.
    

    
      (e)  Post-Severance Exercises.  Upon termination of
      employment of any employee, termination of service on the Board of
      Directors of a Director Participant or of the continuing services of any
      consultant with the Company and all subsidiary corporations and parent
      corporations of the Company, any Stock Option previously granted to the
      employee, Director Participant or consultant, unless otherwise specified
      by the Committee in the Stock Option agreement, shall, to the extent not
      theretofore exercised, terminate and become null and void; provided,
      however, that:
    

    
       (i)  if the employee, Director Participant or consultant shall die
      while in the employ or service of such corporation or in the case of an
      Incentive Stock Option granted to an employee, die during the three (3)
      month period following termination of employment or, in the case of a
      Nonqualified Stock Option granted to an employee, Director Participant
      or consultant, during the five (5) year period, following termination of
      employment or service whichever is applicable, and at a time when such
      employee, Director Participant or consultant was entitled to exercise a
      Stock Option as herein provided, the legal representative of such
      employee, Director Participant or consultant, or such person who
      acquired such Stock Option by bequest or inheritance or by reason of the
      death of the employee, Director Participant or consultant, may, not
      later than five (5) years from the date of death, exercise such Stock
      Option, to the extent not theretofore exercised, in respect of any or
      all of such number of shares of Common Stock as specified by the
      Committee in such Stock Option; provided, however, that in the case of
      an Incentive Stock Option granted to an employee who dies during the
      three (3) month period following termination of employment, such Stock
      Option shall become a Nonqualified Stock Option after the three (3)
      month period following termination of employment; and
    

    

    

    
      
        

        

      

      
        
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      (ii)  if the employment of any employee or the continuing services of
      any Director Participant or consultant to whom such Stock Option shall
      have been granted shall terminate by reason of the employee’s, Director
      Participant’s or consultant’s retirement (at such age or upon such
      conditions as shall be specified by the Committee), disability (as
      described in Section 22(e)(3) of the Code) or dismissal by the employer
      other than for cause (as defined below), and while such employee,
      Director Participant or consultant is entitled to exercise such Stock
      Option as herein provided, such employee, Director Participant or
      consultant shall have the right to exercise such Stock Option so granted
      in respect of any or all of such number of shares as specified by the
      Committee in such Stock Option, at any time up to and including (x) five
      (5) years after the date of such termination of employment or services
      in the case of termination by reason of retirement, disability (as
      described in Section 22(e)(3) of the Code) or dismissal other than for
      cause, provided, however, (y) with respect to an Incentive Stock Option,
      such Incentive Stock Option shall convert to a Nonqualified Stock Option
      after (A) one (1) year after the date of termination of employment by
      reason of disability (as described in Section 22(e)(3) of the Code), and
      (B) three (3) months after the date of termination of employment due to
      retirement or dismissal other than for cause.
    

    
                In no event, however, shall any person be entitled to exercise
      any Stock Option after the expiration of the period of exercisability of
      such Stock Option or Right, as specified in such option agreement at the
      date of grant.
    

    
                If an employee, Director Participant or consultant voluntarily
      terminates his or her employment or continuing services, or is
      discharged "for cause", any Stock Option granted hereunder shall, unless
      otherwise specified by the Committee in the option agreement, forthwith
      terminate with respect to any unexercised portion thereof.
    

    
                If a Stock Option granted hereunder shall be exercised by the
      legal representative of a deceased grantee or by a person who acquired a
      Stock Option granted hereunder by bequest or inheritance or by reason of
      the death of any employee, Director Participant or consultant or former
      employee, former Director Participant or former consultant, written
      notice of such exercise shall be accompanied by a certified copy of
      letters testamentary or equivalent proof of the right of such legal
      representative or other person to exercise such Stock Option.
    

    

    

    
      
        

        

      

      
        
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                For the purposes of the Plan, the term “for cause” shall mean
      (a) with respect to an employee, Director Participant or consultant who
      is a party to a written service agreement with, or, alternatively,
      participates in a compensation or benefit plan of the Company or a
      subsidiary corporation or parent corporation of the Company, which
      agreement or plan contains a definition of “for cause” or “cause” (or
      words of like import) for purposes of termination of employment or
      services thereunder by the Company or such subsidiary corporation or
      parent corporation of the Company, “for cause” or “cause” as defined
      therein; or (b) in all other cases, as determined by the Committee or
      the Board of Directors, in its sole discretion, (i) the willful
      commission  by an employee, Director Participant or consultant of an act
      that causes or may cause substantial damage to the Company or a
      subsidiary corporation or parent corporation of the Company; (ii) the
      commission by an employee, Director Participant or consultant of an act
      of fraud in the performance of such employee’s or consultant’s duties on
      behalf of the Company or a subsidiary corporation or parent corporation
      of the Company; (iii) conviction of the employee, Director Participant
      or consultant for commission of a felony in connection with the
      performance of his duties on behalf of the Company or a subsidiary
      corporation or parent corporation of the Company; or (iv) the continuing
      failure of an employee, Director Participant or consultant to perform
      the duties of such employee, Director Participant or consultant to the
      Company or a subsidiary corporation or parent corporation of the Company
      after written notice thereof and a reasonable opportunity to be heard
      and cure such failure are given to the employee, Director Participant or
      consultant by the Committee.
    

    
                For the purposes of the Plan, an employment relationship shall
      be deemed to exist between an individual and a corporation if, at the
      time of the determination, the individual was an “employee” of such
      corporation for purposes of Section 422(a) of the Code.  If an
      individual is on leave of absence taken with the consent of the
      corporation by which such individual was employed, or is on active
      military service, and is determined to be an “employee” for purposes of
      the exercise of a Stock Option, such individual shall not be entitled to
      exercise such Stock Option during such period unless such individual
      shall have obtained the prior written consent of such corporation, which
      consent shall be signed by the chairman of the board of directors, the
      president, a senior vice-president or other duly authorized officer of
      such corporation.
    

    
                A termination of employment or services shall not be deemed to
      occur by reason of (i) the transfer of an employee or consultant from
      employment or retention by the Company to employment or retention by a
      subsidiary corporation or a parent corporation of the Company or (ii)
      the transfer of an employee or consultant from employment or retention
      by a subsidiary corporation or a parent corporation of the Company to
      employment or retention by the Company or by another subsidiary
      corporation or parent corporation of the Company.  Termination of a
      consultant’s services shall be considered to occur when he ceases to
      perform services on a regular basis; provided, however, termination of a
      consultant’s services shall not be deemed to occur where the termination
      of services is due to such consultant becoming an employee of the
      Company or a subsidiary corporation or a parent corporation.
    

    
                In the event an employee changes status to a consultant, all
      Stock Option grants shall continue for the remainder of the exercise
      period, provided, however, any Incentive Stock Options shall, three (3)
      months after termination of employment, be treated as a Nonqualified
      Stock Option for the remainder of the exercise period.
    

    

    

    
      
        

        

      

      
        
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                In the event of the complete liquidation or dissolution of a
      subsidiary corporation, or if such corporation ceases to be a subsidiary
      corporation, any unexercised Stock Options theretofore granted to any
      person employed by or rendering consulting services to such subsidiary
      corporation will be deemed cancelled unless such person is employed by
      or renders continuing services to the Company or by any parent
      corporation or another subsidiary corporation after the occurrence of
      such event.  If a Stock Option is to be cancelled pursuant to the
      provisions of the previous sentence, notice of such cancellation will be
      given to each employee or consultant holding unexercised Stock Options,
      and such holder will have the right to exercise such Stock Options in
      full during the thirty (30) day period following notice of such
      cancellation.
    

    
       (f)  Each Stock Option issued under this Section 6 shall be fully
      vested and exercisable, unless otherwise specified in the grant
      agreement.
    

    
      7.  Automatic Stock Option Grants to Director Participants.
    

    
      (a)  Subject to the terms and conditions of this Section 7, commencing
      with the 2010 Annual Meeting of Stockholders of the Company, each
      current Director Participant of the Company shall automatically be
      granted a Nonqualified Stock Option to purchase 60,000 shares of Common
      Stock (less the number of shares, if any, automatically granted to such
      Director Participant under any other plan that year) each year that such
      Director Participant is elected to the Board of Directors.  Future
      Director Participants shall automatically be granted Nonqualified Stock
      Options to purchase 60,000 shares of Common Stock (less the number of
      shares, if any, automatically granted to such Director Participant under
      any other plan that year) upon their initial election to the Board of
      Directors and at the time of each subsequent Annual Meeting of
      Stockholders of the Company at which such Director Participant is
      elected to the Board of Directors.  The purchase price of the shares of
      Common Stock covered by the Nonqualified Stock Options granted pursuant
      to this Section 7 shall be the Fair Market Value of such shares of
      Common Stock on the date of grant.  A Director Participant who is
      elected to the Board of Directors on a date subsequent to the Annual
      Meeting of Stockholders of the Company will, for the initial year, be
      granted a pro-rata amount of the 60,000 shares of Common Stock based on
      60,000 multiplied by the ratio of full calendar months until the next
      Annual Meeting of Stockholders divided by twelve.
    

    
      (b)  A Nonqualified Stock Option granted to any Director Participant of
      the Company shall not be exercisable for the twelve-month period
      immediately following the grant of such Nonqualified Stock
      Option.  Thereafter, the Nonqualified Stock Option shall be exercisable
      for the period ending five years from the date of grant of such
      Nonqualified Stock Option, except to the extent such exercise is further
      limited or restricted pursuant to the provisions hereof.
    

    
      (c)  If a Director Participant’s service as a director of the Company
      terminates, any Nonqualified Stock Option previously granted to such
      Director Participant shall, to the extent not theretofore exercised,
      terminate and become null and void; provided, however, that:
    

    
      (i)  if a Director Participant holding an outstanding Nonqualified Stock
      Option dies, such Nonqualified Stock Option shall, to the extent not
      theretofore exercised, remain exercisable for five (5) years after such
      Director Participant’s death, by such Director Participant’s legatee,
      distributee, guardian or legal or personal representative; and
    

    

    

    
      
        

        

      

      
        
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      (ii)  if the service of a Director Participant to whom such Nonqualified
      Stock Option shall have been granted shall terminate by reason of (i)
      such Director Participant’s disability (as described in Section 22(e)(3)
      of the Code), (ii) voluntary retirement from service as a director of
      the Company, or (iii) failure of the Company to retain or nominate for
      re-election such Director Participant who is otherwise eligible, unless
      due to any act of (A) fraud or intentional misrepresentation, or (B)
      embezzlement, misappropriation or conversion of assets or opportunities
      of the Company or any direct or indirect subsidiary of the Company,
      while such Director Participant is entitled to exercise such
      Nonqualified Stock Option as herein provided, such Director Participant
      shall have the right to exercise such Nonqualified Stock Option so
      granted in respect of any or all of such number of shares of Common
      Stock subject to such Nonqualified Stock Option at any time up to and
      including (X) five (5) years after the date of such termination of
      service due to failure of the Company to retain or nominate for
      re-election such Director Participant who is otherwise eligible, unless
      due to any act of (1) fraud or intentional misrepresentation, or (2)
      embezzlement, misappropriation or conversion of assets or opportunities
      of the Company or any direct or indirect subsidiary of the Company, and
      (Y) five (5) years after the date of termination of service in the case
      of termination of service by reason of voluntary retirement or by reason
      of disability; and
    

    
      (iii)  if the Director Participant shall die during the five (5) year
      period specified in clause (ii) above and at a time when such Director
      Participant was entitled to exercise a Nonqualified Stock Option as
      herein provided, the legal representative of such Director Participant,
      or such person who acquired such Nonqualified Stock Option by bequest or
      inheritance or by reason of the death of the Director Participant may,
      not later than five (5) years from the date of death, exercise such
      Nonqualified Stock Option, to the extent not theretofore exercised, in
      respect of any or all of such number of Shares subject to such
      Nonqualified Stock Option.
    

    
                In no event, however, shall a Director Participant be entitled
      to exercise any Stock Option issued under this Section 7 after the
      expiration of the period of exercisability of such Stock Option, as
      specified therein.
    

    
       (d)  A Director Participant may receive automatic Stock Option grants
      under this Section 7 and Stock Option grants under Section 6.
    

    
      8.  Stock Appreciation Rights.
    

    
      (a)  The Committee may, in its discretion, grant Stock Appreciation
      Rights to the holders of any Stock Options granted hereunder.  In
      addition, Stock Appreciation Rights may be granted independently of, and
      without relation to, Stock Options.  A Stock Appreciation Right means a
      right to receive a payment in cash, Common Stock or a combination
      thereof, in an amount equal to the excess of (x) the Fair Market Value,
      or other specified valuation, of a specified number of shares of Common
      Stock on the date the right is exercised over (y) the Fair Market Value,
      or other specified valuation (which shall be no less than the Fair
      Market Value) of such shares of Common Stock on the date the right is
      granted, all as determined by the Committee; provided, however, that if
      a Stock Appreciation Right is granted in substitution for a Stock
      Option, the designated Fair Market Value in the award agreement may be
      the Fair Market Value on the date such Stock Option was granted.  Each
      Stock Appreciation Right shall be fully vested unless otherwise
      specified in the grant agreement.  Each Stock Appreciation Right shall
      be subject to such terms and conditions as the Committee shall impose
      from time to time.
    

    

    

    
      
        

        

      

      
        
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      (b)  Stock Appreciation Rights granted under the Plan shall be
      exercisable at such time or times and subject to such terms and
      conditions as shall be determined by the Committee; provided, however,
      that no Stock Appreciation Rights shall be exercisable later than ten
      years after the date it is granted.  All Stock Appreciation Rights shall
      terminate at such earlier times and upon such conditions or
      circumstances as the Committee shall in its discretion set forth in such
      right at the date of grant.
    

    
      (c)  The exercise of any Stock Appreciation Right after termination of
      employment of a participant with the Company, a subsidiary of the
      Company or with any company providing consulting services to the Company
      shall be subject to the same terms and conditions as set forth in
      Section 6(e) above.
    

    
      9.  Stock Awards.  The Committee may, in its
      discretion, grant Stock Awards (which may include mandatory payment of
      bonus incentive compensation in stock) consisting of Common Stock issued
      or transferred to participants with or without other payments
      therefor.  Stock Awards may be subject to such terms and conditions as
      the Committee determines appropriate, including, without limitation,
      restrictions on the sale or other disposition of such shares, the right
      of the Company to reacquire such shares for no consideration upon
      termination of the participant’s employment, and may constitute
      Performance-Based Awards, as described in Section 12 hereof.  Each Stock
      Award shall be fully vested unless otherwise specified in the grant
      agreement.  The Committee may require the participant to deliver a duly
      signed stock power, endorsed in blank, relating to the Common Stock
      covered by such an Award.  The Committee may also require that the stock
      certificates evidencing such shares be held in custody or bear
      restrictive legends until the restrictions thereon shall have
      lapsed.  The Stock Award shall specify whether the participant shall
      have, with respect to the shares of Common Stock subject to a Stock
      Award, all of the rights of a holder of shares of Common Stock of the
      Company, including the right to receive dividends and to vote the shares.
    

    
      10.  Performance Awards.
    

    
      (a)  Performance Awards may be granted to participants at any time and
      from time to time, as shall be determined by the Committee.  Performance
      Awards may constitute Performance-Based Awards, as described in Section
      12 hereof.  The Committee shall have complete discretion in determining
      the number, amount and timing of awards granted to each
      participant.  Such Performance Awards may be in the form of shares of
      Common Stock or Stock Units.  Performance Awards may be awarded as
      short-term or long-term incentives.  Performance targets may be based
      upon, without limitation, Company-wide, divisional and/or individual
      performance.  
    

    

    

    
      
        

        

      

      
        
          9
        

        
          

        

      

      
        

        

      

    

    

    

    
      (b)  With respect to those Performance Awards that are not intended to
      constitute Performance-Based Awards, the Committee shall have the
      authority at any time to make adjustments to performance targets for any
      outstanding Performance Awards which the Committee deems necessary or
      desirable unless at the time of establishment of such targets the
      Committee shall have precluded its authority to make such adjustments.
    

    
      (c)  Payment of earned Performance Awards shall be made in accordance
      with terms and conditions prescribed or authorized by the
      Committee.  The participant may elect to defer, or the Committee may
      require or permit the deferral of, the receipt of Performance Awards
      upon such terms as the Committee deems appropriate.
    

    
      11.  Stock Units.
    

    
      (a)  The Committee may, in its discretion, grant Stock Units to
      participants hereunder.  The Committee shall determine the criteria for
      the vesting of Stock Units.  Stock Units may constitute Performance
      Based Awards, as described in Section 12 hereof.  A Stock Unit granted
      by the Committee shall provide payment at such time as the award
      agreement shall specify.  Shares of Common Stock issued pursuant to this
      Section 11 may be issued with or without other payments therefor as may
      be required by applicable law or such other consideration as may be
      determined by the Committee.  The Committee shall determine whether a
      participant granted a Stock Unit shall be entitled to a Dividend
      Equivalent Right (as defined below).
    

    
      (b)  Upon vesting of a Stock Unit, unless the participant has elected to
      defer payment under subsection (c) below, shares of Common Stock
      representing the Stock Units shall be distributed to the participant
      unless the Committee provides for the payment of the Stock Units in cash
      or partly in cash and partly in shares of Common Stock equal to the
      value of the shares of Common Stock which would otherwise be distributed
      to the participant.
    

    
      (c)  A participant may elect not to receive a distribution upon the
      vesting of such Stock Unit and for the Company to continue to maintain
      the Stock Unit on its books of account.  Any such election shall be in
      conformity with Code Section 409A and in such event, the value of a
      Stock Unit shall be payable in shares of Common Stock pursuant to the
      agreement of deferral.
    

    
      (d)  A “Stock Unit” means a notional account representing one share of
      Common Stock.  A “Dividend Equivalent Right” means the right to receive
      the amount of any dividend paid on the share of Common Stock underlying
      a Stock Unit, which shall be payable in cash or in the form of
      additional Stock Units.
    

    

    

    
      
        

        

      

      
        
          10
        

        
          

        

      

      
        

        

      

    

    

    

    
      12.  Performance-Based Awards.  Certain Benefits
      granted under the Plan may be granted in a manner such that the Benefits
      qualify for the performance-based compensation exemption of Section
      162(m) of the Code (“Performance-Based Awards”).  As determined by the
      Committee in its sole discretion, either the granting or vesting of such
      Performance-Based Awards shall be based on achievement of hurdle rates
      and/or growth rates in one or more business criteria that apply to the
      individual participant, one or more business units or the Company as a
      whole.  The business criteria shall be as follows, individually or in
      combination: (i) net earnings; (ii) earnings per share; (iii) net sales
      growth; (iv) market share; (v) net operating profit; (vi) expense
      targets; (vii) working capital targets relating to inventory and/or
      accounts receivable; (viii) operating margin; (ix) return on equity; (x)
      return on assets; (xi) planning accuracy (as measured by comparing
      planned results to actual results); (xii) market price per share; and
      (xiii) total return to stockholders.  In addition, Performance Based
      Awards may include comparisons to the performance of other companies,
      such performance to be measured by one or more of the foregoing business
      criteria.  With respect to Performance-Based Awards, (i) the Committee
      shall establish in writing (x) the performance goals applicable to a
      given period, and such performance goals shall state, in terms of an
      objective formula or standard, the method for computing the amount of
      compensation payable to the participant if such performance goals are
      obtained and (y) the individual employees or class of employees to which
      such performance goals apply no later than 90 days after the
      commencement of such period (but in no event after 25% of such period
      has elapsed) and (ii) no Performance-Based Awards shall be payable to or
      vest with respect to, as the case may be, any participant for a given
      period until the Committee certifies in writing that the objective
      performance goals (and any other material terms) applicable to such
      period have been satisfied.  With respect to any Benefits intended to
      qualify as Performance-Based Awards, after establishment of a
      performance goal, the Committee shall not revise such performance goal
      or increase the amount of compensation payable thereunder (as determined
      in accordance with Section 162(m) of the Code) upon the attainment of
      such performance goal.  Notwithstanding the preceding sentence, the
      Committee may reduce or eliminate Benefits payable upon the attainment
      of such performance goal.
    

    
      13.  Securities Laws.  The Committee shall have the
      power to make each grant under the Plan subject to such conditions as it
      deems necessary or appropriate to comply with the then-existing
      requirements of the Securities Act of 1933, as amended, or the Exchange
      Act, including Rule 16b-3 (or any similar rule) of the Securities and
      Exchange Commission. Notwithstanding any provision in the Plan or an
      option document to the contrary, if the Committee determines, in its
      sole discretion, that issuance of Shares pursuant to the exercise of a
      Stock Option should be delayed pending registration or qualification
      under federal or state securities laws or the receipt of a legal opinion
      that an appropriate exemption from the application of federal or state
      securities laws is available, the Committee may defer exercise of any
      Stock Option until such Shares are appropriately registered or qualified
      or an appropriate legal opinion has been received, as applicable.
    

    
      14.  Foreign Laws.  The Committee may grant Benefits to
      individual participants who are subject to the tax laws of nations other
      than the United States, which Benefits may have terms and conditions as
      determined by the Committee as necessary to comply with applicable
      foreign laws.  The Committee may take any action which it deems
      advisable to obtain approval of such Benefits by the appropriate foreign
      governmental entity; provided, however, that no such Benefits may be
      granted pursuant to this Section 14 and no action may be taken which
      would result in a violation of the Exchange Act, the Code or any other
      applicable law.
    

    

    

    
      
        

        

      

      
        
          11
        

        
          

        

      

      
        

        

      

    

    

    

    
      15.  Adjustment Provisions; Change in Control.
    

    
      (a)  If there shall be any change in the Common Stock of the Company or
      the capitalization of the Company through merger, consolidation,
      reorganization, recapitalization, stock dividend, stock split, reverse
      stock split, split up, spin-off, combination of shares, exchange of
      shares, dividend in kind or other like change in capital structure or
      distribution (other than normal cash dividends) to stockholders of the
      Company in order to prevent dilution or enlargement of participants’
      rights under the Plan, the Committee, in its sole discretion, shall
      adjust, in an equitable manner, as applicable, the number and kind of
      shares that may be issued under the Plan, the number and kind of shares
      subject to outstanding Benefits, the exercise price applicable to
      outstanding Benefits, and the Fair Market Value of the Common Stock and
      other value determinations applicable to outstanding Benefits; provided,
      however, that any such arithmetic adjustment to a Performance-Based
      Award shall not cause the amount of compensation payable thereunder to
      be increased from what otherwise would have been due upon attainment of
      the unadjusted award.  Appropriate adjustments may also be made by the
      Committee in the terms of any Benefits under the Plan to reflect such
      changes or distributions and to modify any other terms of outstanding
      Benefits on an equitable basis, including modifications of performance
      targets and changes in the length of performance periods; provided,
      however, that any such arithmetic adjustment to a Performance-Based
      Award shall not cause the amount of compensation payable thereunder to
      be increased from what otherwise would have been due upon attainment of
      the unadjusted award.  In addition, other than with respect to Stock
      Options, Stock Appreciation Rights, and other awards intended to
      constitute Performance-Based Awards, the Committee is authorized to make
      adjustments to the terms and conditions of, and the criteria included
      in, Benefits in recognition of unusual or nonrecurring events affecting
      the Company or the financial statements of the Company, or in response
      to changes in applicable laws, regulations, or accounting
      principles.  Notwithstanding the foregoing, (i) each such adjustment
      with respect to an Incentive Stock Option shall comply with the rules of
      Section 424(a) of the Code, and (ii) in no event shall any adjustment be
      made which would render any Incentive Stock Option granted hereunder
      other than an incentive stock option for purposes of Section 422 of the
      Code.  The determination of the Committee as to the foregoing
      adjustments, if any, shall be conclusive and binding on participants
      under the Plan.
    

    
      (b)  Notwithstanding any other provision of this Plan, if there is a
      Change in Control of the Company, all then outstanding Stock Options and
      Stock Appreciation Rights shall immediately vest and become
      exercisable.  For purposes of this Section 15(b), a “Change in Control”
      of the Company shall be deemed to have occurred upon the earliest of the
      following events:
    

    
      (i)  Change in Ownership: A change in ownership of the Company occurs on
      the date that any one person, or more than one person acting as a group,
      acquires ownership of stock of the Company that, together with stock
      held by such person or group, constitutes more than 50% of the total
      fair market value or total voting power of the stock of the Company,
      excluding the acquisition of additional stock by a person or more than
      one person acting as a group who is considered to own more than 50% of
      the total fair market value or total voting power of the stock of the
      Company.
    

    

    

    
      
        

        

      

      
        
          12
        

        
          

        

      

      
        

        

      

    

    

    

    
       (ii)  Change in Effective Control: A change in effective control of the
      Company occurs on the date that either:
    

    
      (A)  Any one person, or more than one person acting as a group, acquires
      (or has acquired during the 12-month period ending on the date of the
      most recent acquisition by such person or persons) ownership of stock of
      the Company possessing 30% or more of the total voting power of the
      stock of the Company; or
    

    
      (B)  A majority of the members of the Board of Directors of the Company
      is replaced during any 12-month period by directors whose appointment or
      election is not endorsed by a majority of the members of the board of
      directors before the date of the appointment or election; provided, that
      this paragraph (B) will apply only to the Company if no other
      corporation is a majority shareholder.
    

    
      (iii)  Change in Ownership of Substantial Assets: A change in the
      ownership of a substantial portion of the Company's assets occurs on the
      date that any one person, or more than one person acting as a group,
      acquires (or has acquired during the 12-month period ending on the date
      of the most recent acquisition by such person or persons) assets from
      the Company that have a total gross fair market value equal to or more
      than 40% of the total gross fair market value of the assets of the
      Company immediately before such acquisition or acquisitions. For this
      purpose, “gross fair market value” means the value of the assets of the
      Company, or the value of the assets being disposed of, determined
      without regard to any liabilities associated with such assets.
    

    
                It is the intent that this definition be construed consistent
      with the definition of “Change of Control” as defined under Code Section
      409A and the applicable treasury regulations, as amended from time to
      time.
    

    
                The Committee, in its discretion, may determine that, upon the
      occurrence of a Change in Control of the Company or the other events
      specified in Section 15(a), each Stock Option and Stock Appreciation
      Right outstanding hereunder shall terminate within a specified number of
      days after notice to the holder, and such holder shall receive, with
      respect to each share of Common Stock subject to such Stock Option or
      Stock Appreciation Right, an amount equal to the excess of the Fair
      Market Value of such shares of Common Stock immediately prior to the
      occurrence of such Change in Control over the exercise price per share
      of such Stock Option or Stock Appreciation Right; such amount to be
      payable in cash, in one or more kinds of property (including the
      property, if any, payable in the transaction) or in a combination
      thereof, as the Committee, in its discretion, shall determine.  The
      provisions contained in the preceding sentence shall be inapplicable to
      a Stock Option or Stock Appreciation Right granted within six (6) months
      before the occurrence of a Change in Control if the holder of such Stock
      Option or Stock Appreciation Right is subject to the reporting
      requirements of Section 16(a) of the Exchange Act and no exception from
      liability under Section 16(b) of the Exchange Act is otherwise available
      to such holder.
    

    

    

    
      
        

        

      

      
        
          13
        

        
          

        

      

      
        

        

      

    

    

    

    
      16.  Nontransferability.  Each Benefit granted under
      the Plan to a participant shall not be transferable otherwise than by
      will or the laws of descent and distribution, and shall be exercisable,
      during the participant’s lifetime, only by the participant.  In the
      event of the death of a participant, each Stock Option or Stock
      Appreciation Right theretofore granted to him or her shall be
      exercisable during such period after his or her death as the Committee
      shall in its discretion set forth in such option or right at the date of
      grant and then only 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 or Stock Appreciation Right
      shall pass by will or the laws of descent and
      distribution.  Notwithstanding the foregoing, at the discretion of the
      Committee, an award of a Benefit, other than an Incentive Stock Option,
      to any director, officer or employee of the Company with at least 15
      years of service may permit the transferability of a Benefit by such
      participant solely to the participant’s spouse, siblings, parents,
      children and grandchildren or trusts for the benefit of such persons or
      partnerships, corporations, limited liability companies or other
      entities owned solely by such persons, including trusts for such
      persons, subject to any restriction included in the award of the Benefit.
    

    
      17.  Other Provisions.  The award of any Benefit under
      the Plan may also be subject to such other provisions (whether or not
      applicable to the Benefit awarded to any other participant) as the
      Committee determines appropriate, including, without limitation, for the
      installment purchase of Common Stock under Stock Options, for the
      installment exercise of Stock Appreciation Rights, to assist the
      participant in financing the acquisition of Common Stock, for the
      forfeiture of, or restrictions on resale or other disposition of, Common
      Stock acquired under any form of Benefit, for the acceleration of
      exercisability or vesting of Benefits in the event of a change in
      control of the Company, for the payment of the value of Benefits to
      participants in the event of a change in control of the Company, or
      understandings or conditions as to the participant’s employment in
      addition to those specifically provided for under the Plan.  In
      addition, the Committee shall have the right to accelerate, in whole or
      in part, from time to time, conditionally or unconditionally, rights to
      exercise any Stock Option granted hereunder.  The provisions in this
      Section 17 may be exercised even if such exercise causes an earlier
      recognition of income to the Participant due to Code Section 409A or
      otherwise.
    

    
      18.  Fair Market Value.  For purposes of this Plan and
      any Benefits awarded hereunder, Fair Market Value shall be (i) the
      closing price of the Company’s Common Stock on the date of calculation
      (or on the last preceding trading date if Common Stock was not traded on
      such date) if the Company’s Common Stock is readily tradeable on a
      national securities exchange or other market system, (ii) if the
      Company’s Common Stock is not readily tradeable, Fair Market Value shall
      mean the amount determined in good faith by the Committee as the fair
      market value of the Common Stock of the Company and (iii) in connection
      with a Change in Control of the Company or an event specified in Section
      15(a), the value of the consideration paid to stockholders in connection
      with such Change in Control or event or if no consideration is paid in
      respect thereof, the amount determined pursuant to clause (i) or (ii),
      above.  
    

    
      19.  Withholding.  All payments or distributions of
      Benefits made pursuant to the Plan shall be net of any amounts required
      to be withheld pursuant to applicable federal, state and local tax
      withholding requirements.  If the Company proposes or is required to
      distribute Common Stock pursuant to the Plan, it may require the
      recipient to remit to it or to the corporation that employs such
      recipient an amount sufficient to satisfy such tax withholding
      requirements prior to the delivery of any certificates for such Common
      Stock.  In lieu thereof, the Company or the employing corporation shall
      have the right to withhold the amount of such taxes from any other sums
      due or to become due from such corporation to the recipient as the
      Committee shall prescribe.  The Committee may, in its discretion and
      subject to such rules as it may adopt (including any as may be required
      to satisfy applicable tax and/or non-tax regulatory requirements),
      permit an optionee or award or right holder to pay all or a portion of
      the federal, state and local withholding taxes arising in connection
      with any Benefit consisting of shares of Common Stock by electing to
      have the Company withhold shares of Common Stock having a Fair Market
      Value equal to the amount of tax to be withheld, such tax calculated at
      rates required by statute or regulation.
    

    

    

    
      
        

        

      

      
        
          14
        

        
          

        

      

      
        

        

      

    

    

    

    
      20.  Tenure.  A participant’s right, if any, to
      continue to serve the Company or any of its subsidiaries or affiliates
      as an officer, employee, or otherwise, shall not be enlarged or
      otherwise affected by his or her designation as a participant under the
      Plan.  
    

    
      21.  Unfunded Plan. Participants shall have no right,
      title, or interest whatsoever in or to any investments which the Company
      may make to aid it in meeting its obligations under the Plan.  Nothing
      contained in the Plan, and no action taken pursuant to its provisions,
      shall create or be construed to create a trust of any kind, or a
      fiduciary relationship between the Company and any participant,
      beneficiary, legal representative or any other person.  To the extent
      that any person acquires a right to receive payments from the Company
      under the Plan, such right shall be no greater than the right of an
      unsecured general creditor of the Company.  All payments to be made
      hereunder shall be paid from the general funds of the Company and no
      special or separate fund shall be established and no segregation of
      assets shall be made to assure payment of such amounts except as
      expressly set forth in the Plan.  The Plan is not intended to be subject
      to the Employee Retirement Income Security Act of 1974, as amended.
    

    
      22.  No Fractional Shares.  No fractional shares of
      Common Stock shall be issued or delivered pursuant to the Plan or any
      Benefit.  The Committee shall determine whether cash, or Benefits, or
      other property shall be issued or paid in lieu of fractional shares or
      whether such fractional shares or any rights thereto shall be forfeited
      or otherwise eliminated.
    

    
      23.  Duration, Amendment and Termination.  No Benefit
      shall be granted more than ten years after the Effective Date.  The
      Committee may amend the Plan from time to time or suspend or terminate
      the Plan at any time.  Nevertheless, if the Plan has been previously
      approved by the Company’s stockholders, the Committee may not, without
      obtaining approval within twelve months before or after such action by
      such vote of the Company’s stockholders as may be required, amend the
      Plan if such amendment would: (i) disqualify any Incentive Stock Options
      granted under the Plan; (ii) increase the aggregate number of shares of
      Common Stock that may be delivered through Stock Options under the Plan;
      (iii) increase either of the maximum amounts which can be paid to an
      individual participant under the Plan as set forth in Section 5 hereof;
      (iv) change the types of business criteria on which Performance-Based
      Awards are to be based under the Plan; or (v) modify the requirements as
      to eligibility for participation in the Plan.  The Committee may amend
      the terms of any Benefit theretofore granted, prospectively or
      retroactively, but no such amendment shall impair the rights of any
      participant without his consent.  In its sole discretion, the Committee
      may reduce the exercise price for any or all outstanding Stock Options
      or Stock Appreciation Rights, by repricing or replacing or offering to
      replace such Benefits, at any time and on any basis it believes is
      appropriate and consistent with the Plan’s purposes.
    

    

    

    
      
        

        

      

      
        
          15
        

        
          

        

      

      
        

        

      

    

    

    

    
      24.  Governing Law.  This Plan, Benefits granted
      hereunder and actions taken in connection herewith shall be governed and
      construed in accordance with the laws of the State of Delaware
      (regardless of the law that might otherwise govern under applicable
      Delaware principles of conflict of laws).
    

    
      25.  Effective Date.  
    

    
      (a)  The Plan shall be effective as of July 15, 2010, the date on which
      the Plan was adopted by the Board of Directors (the “Effective Date”).
    

    
      (b)  This Plan shall terminate on July 14, 2020 (unless sooner
      terminated by the Committee).
    

    

    

    
      16Exhibit 10.2
    

    
      <Date>
    

    
      <Name of Grantee>
c/o CopyTele, Inc.
900 Walt Whitman Road
Melville,
      New York  11747
    

    
                RE:       Grant of Non-Qualified Stock Option To Employees
    

    

    

    
      Dear <Name of Grantee>:
    

    
                On July 15, 2010, the Board of Directors of CopyTele, Inc.
      (the "Company") adopted the CopyTele, Inc. 2010 Share Incentive Plan
      (the "Plan"). The Plan provides for the grant of certain rights, options
      and other awards to non-employee directors of the Company and certain
      key employees and consultants of the Company and its subsidiaries.  A
      copy of the Plan is annexed hereto and shall be deemed a part hereof as
      if fully set forth herein. Unless the context otherwise requires, all
      terms defined in the Plan shall have the same meaning when used herein.
    

    
                 1.       The Company hereby grants to you, as a matter of
      separate inducement and not in lieu of any salary or other compensation
      for your services, the right and option to purchase, in accordance with
      the terms and conditions set forth in the Plan, but subject to the
      limitations set forth herein and in the Plan, an aggregate of ______
      shares of Common Stock of the Company at a price of $____ per share,
      such option price being, in the judgment of the Stock Option Committee,
      not less than one hundred percent (100%) of the fair market value of
      such share at the date hereof (the "Non-Qualified Option").
    

    
                Notwithstanding, the foregoing, it is specifically understood
      by you that no warranty is made to you with respect to the value of such
      shares.  The Non-Qualified Option is not intended to qualify as an
      "incentive stock option" within the meaning of Section 422 of the
      Internal Revenue Code of 1986, as amended. The Non-Qualified Option
      shall be referred to herein as the "Option".
    

    
                 2.       Subject to the provisions and limitations of section
      6 of the Plan, the Option may be exercised by you, on a cumulative
      basis, during a period of ten years from the date hereof and terminating
      at the close of business on _______.
    

    
                 3.       In no event shall you exercise the Option for a
      fraction of a share or for less than one hundred (100) shares (unless
      the number purchased is the total balance for which the Option is then
      exercisable).
    

    

    

    
      
        

        

      

      
        
          1
        

        
          

        

      

      
        

        

      

    

    

    

    
                 4.       The unexercised portion of the Option granted herein
      will automatically and without notice terminate and become null and void
      upon the expiration of ten years from the date of the grant of the
      Option. In the event your service as an employee of the Company is
      terminated prior to the expiration of ten (10) years from the date
      hereof, the Option shall, to the extent not theretofore exercised,
      terminate and become null and void, except to the extent described
      below.  None of the events described below shall extend the period of
      exercisability of the Option beyond ten (10) years from the date hereof:
    

    
      (a)       if you die, the Option shall, to the extent not theretofore
      exercised, remain exercisable for five (5) years after your death, by
      your legatee, distributee, guardian or legal or personal representative.
    

    
      (b)       if your employment is terminated by reason of your disability
      (as defined in the plan), voluntary retirement or dismissal by the
      Company other than for cause as defined in the Plan, provided you are
      otherwise eligible, the Option shall, to the extent not theretofore
      exercised, remain exercisable for five (5) years after the date of such
      termination of employment in the case of termination by reason of
      retirement or dismissal other than for cause and five (5) years after
      the date of termination of employment in the case of termination by
      reason of disability; and
    

    
      (c)       if you die during the five (5) year period specified in clause
      (b) above and at a time when you were entitled to exercise the Option,
      your legal representative, or such person who acquired the Option by
      reason of your death may, not later than five (5) years from your date
      of death, exercise the Option, to the extent not theretofore exercised,
      in respect of any or all of such number of shares subject to the Option.
    

    
                 5.       The Option is not transferable by you otherwise than
      by will or the laws of descent and distribution, and is exercisable,
      during your lifetime, only by you. The Option may not be pledged or
      hypothecated in any way (whether by operation of law or otherwise) and
      shall not be subject to execution, attachment or similar proceeding. Any
      attempted assignment, pledge, hypothecation or other disposition of the
      Option contrary to the provisions hereof, and the levy of any attachment
      or similar proceeding upon the Option, shall be null and void and
      without effect.
    

    
                 6.       Any exercise of the Option shall be in writing
      addressed to the Corporate Secretary of the Company at the principal
      place of business of the Company, specifying the Option being exercised
      and the number of shares to be purchased.  The purchase price for the
      shares being purchased shall be delivered to the Corporate Secretary
      within five days of the time such writing is so delivered.
    

    
                 7.       If the Company, in its sole discretion, shall
      determine that it is necessary, to comply with applicable securities
      laws, the certificate or certificates representing the shares purchased
      pursuant to the exercise of the Option shall bear an appropriate legend
      in form and substance, as determined by the Company, giving notice of
      applicable restrictions on transfer under or in respect of such laws.
    

    

    

    
      
        

        

      

      
        
          2
        

        
          

        

      

      
        

        

      

    

    

    

    
                8.        You hereby covenant and agree with the Company that
      if, at the time of exercise of the Option, there does not exist a
      Registration Statement on an appropriate form under the Securities Act
      of 1933, as amended (the "Act"), which Registration Statement shall have
      become effective and shall include a prospectus which is current with
      respect to the shares subject to the Option, you shall make the
      representations (i) that you are purchasing the shares for your own
      account and not with a view to the resale or distribution thereof, (ii)
      that any subsequent offer for sale or sale of any such shares shall be
      made either pursuant to (x) a Registration Statement on an appropriate
      form under the Act, which Registration Statement shall become effective
      and shall be current with respect to the shares being offered and sold,
      or (y) a specific exemption from the registration requirements of the
      Act, but in claiming such exemption, you shall, prior to any offer for
      sale or sale of such shares, obtain a favorable written opinion from
      counsel for or approved by the Company as to the applicability of such
      exemption and (iii) that you agree that the certificates evidencing such
      shares shall bear a legend to the effect of the foregoing.
    

    
                By your acceptance hereof, you agree to reimburse the Company
      for any taxes required by any government to be withheld or otherwise
      deducted and paid by the Company in respect of the issuance or
      disposition of the shares subject to the Non-Qualified Option.  In lieu
      thereof, the Company shall have the right to withhold the amount of such
      taxes from any other sums due or to become due from the Company to
      you.  The Company may, in its discretion, hold the stock certificate to
      which you are entitled upon the exercise of the Option as security for
      the payment of such withholding tax liability, until cash sufficient to
      pay that liability has been accumulated.  In addition, at any time that
      the Company becomes subject to a withholding obligation under applicable
      law with respect to the exercise of a Non-Qualified Option (the "Tax
      Date") you may elect to satisfy, in whole or in part, your related
      personal tax liabilities (an "Election") by (a) directing the Company to
      withhold from shares issuable in the related exercise either a specified
      number of shares or shares having a specified value (in each case not in
      excess of the related personal tax liabilities), (b) tendering shares
      previously issued pursuant to the exercise of the Option or other shares
      of the Company's common stock owned by you, or (c) combining any or all
      of the foregoing options in any fashion.  An Election shall be
      irrevocable.  The withheld shares and other shares tendered in payment
      shall be valued at their fair market value on the Tax Date.  The Stock
      Option Committee may disapprove of any Election, suspend or terminate
      the right to make Elections, provide that the right to make Elections
      shall not apply to particular shares or exercises, or impose additional
      conditions or restrictions on the right to make an Election as it shall
      deem appropriate.  In addition, you authorize the Company to effect any
      such withholding upon exercise of a Non-Qualified Option by retention of
      shares issuable upon such exercise having a fair market value at the
      date of exercise which is equal to the amount to be withheld; provided,
      however, that the Company is not authorized to effect such withholding
      without your prior written consent if such withholding would subject you
      to liability under Section 16(b) of the Securities Exchange Act of
      1934.    
    

    

    

    
      
        

        

      

      
        
          3
        

        
          

        

      

      
        

        

      

    

    

    

    
                This agreement is subject to all terms, conditions,
      limitations and restrictions contained in the Plan, which shall be
      controlling in the event of any conflicting or inconsistent provisions.  
    

    
                This agreement is not a contract of employment and the terms
      of your employment shall not be affected hereby or by any agreement
      referred to herein except to the extent specifically so provided herein
      or therein.  Nothing herein shall be construed to impose any obligation
      on the Company to continue your employment, and it shall not impose any
      obligation on your part to remain in the employ of the Company thereof.
    

    
                          Please indicate your acceptance of all the terms and
      conditions of the Option and the Plan by signing and returning a copy of
      this letter.
    

    

    

    
    	

        	
          Very truly yours,
        
	

        	
          COPYTELE, INC.
        
	

        	
           
        
	

        	
          By: ___________________
        
	

        	
           
        
	

        	
           
        
	
          ACCEPTED:
        	

        
	

        	
           
        
	
          _________________________
        	

        
	
          Signature of Employee
        	

        
	
           
        
	
          _________________________
        	

        
	
          
            Name of Employee – Please Print
          

        	

        
	
           
        
	
           
        
	
          Date: __________
        	

        

    

    

    

    
      4

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