Document:

ex43.htm

    Exhibit 4.3

    

    

    

    

    

    

    

    

    

    VERUTEK
TECHNOLOGIES, INC.

    

    2008
STOCK INCENTIVE PLAN

    

    

    

    

    

    

    

    

    

    

     

     

     

     

     

    
 

    

    

    Effective:
March 27, 2008

     

     

     

    
      
        
        

      

      
        i

        
          

        

      

      
        
        

      

    

     

    

    TABLE
OF CONTENTS

    

    Page

    

    
      	
              1.

            	
              Establishment,
      Purpose and Types of Awards

            	
              1

            
	
              2.

            	
              Definitions

            	
              1

            
	
              3.

            	
              Administration

            	
              4

            
	
              (a)

            	
              Procedure

            	
              4

            
	
              (b)

            	
              Secondary
      Committees and Sub-Plans

            	
              5

            
	
              (c)

            	
              Powers
      of the Committee

            	
              5

            
	
              (d)

            	
              Limited
      Liability

            	
              7

            
	
              (e)

            	
              Indemnification

            	
              7

            
	
              (f)

            	
              Effect
      of Committee’s Decision

            	
              7

            
	
              (g)

            	
              Apprising
      the Board

            	
              7

            
	
              4.

            	
              Stock
      Available Under the Plan; Maximum Awards

            	
              7

            
	
              (a)

            	
              Stock
      Available Under the Plan

            	
              7

            
	
              (b)

            	
              Maximum
      Awards to Covered Employees

            	
              8

            
	
              5.

            	
              Participation

            	
              8

            
	
              6.

            	
              Stock
      Options

            	
              8

            
	
              (a)

            	
              Grant
      of Option

            	
              8

            
	
              (b)

            	
              Exercise
      Price

            	
              8

            
	
              (c)

            	
              Payment

            	
              8

            
	
              (d)

            	
              Term
      of Options

            	
              9

            
	
              (e)

            	
              Restrictions
      on Incentive Stock Options

            	
              9

            
	
              (f)

            	
              Other
      Terms and Conditions

            	
              10

            
	
              7.

            	
              Restricted
      Stock and Restricted Stock Units

            	
              10

            
	
              (a)

            	
              In
      General

            	
              10

            
	
              (b)

            	
              Vesting
      Conditions and Other Restrictions

            	
              10

            
	
              (c)

            	
              Stock
      Issuance and Stockholder Rights

            	
              11

            
	
              8.

            	
              Stock
      Appreciation Rights

            	
              12

            
	
              (a)

            	
              Award
      of Stock Appreciation Rights

            	
              12

            
	
              (b)

            	
              Restrictions
      of Tandem SARs

            	
              12

            
	
              (c)

            	
              Amount
      of Payment upon Exercise of SARs

            	
              12

            
	
              (d)

            	
              Form
      of Payment upon Exercise of SARs

            	
              12

            
	
              9.

            	
              Phantom
      Stock

            	
              13

            
	
              10.

            	
              Performance
      Awards

            	
              13

            
	
              (a)

            	
              In
      General

            	
              13

            
	
              (b)

            	
              Covered
      Employee Targets

            	
              13

            
	
              11.

            	
              Withholding
      and Reporting of Taxes

            	
              14

            
	
              12.

            	
              Transferability

            	
              14

            
	
              13.

            	
              Adjustments;
      Business Combinations

            	
              15

            
	
              (a)

            	
              Adjustments

            	
              15

            
	
              (b)

            	
              Change
      in Control

            	
              15

            
	
              (c)

            	
              Dissolution
      and Liquidation

            	
              15

            
	
              (d)

            	
              Other
      Adjustments

            	
              16

            
	
              14.

            	
              Termination
      and Amendment

            	
              16

            
	
              (a)

            	
              Amendment
      or Termination by the Board

            	
              16

            
	
              (b)

            	
              Amendments
      by the Committee

            	
              17

            
	
              (c)

            	
              Approval
      of Grantees

            	
              17

            
	
              15.

            	
              Non-Guarantee
      of Employment

            	
              17

            
	
              16.

            	
              Termination
      of Employment

            	
              17

            
	
              17.

            	
              Written
      Agreement

            	
              17

            
	
              18.

            	
              Non-Uniform
      Determinations

            	
              18

            
	
              19.

            	
              Limitation
      on Benefits

            	
              18

            
	
              20.

            	
              Listing
      and Registration

            	
              18

            
	
              21.

            	
              Compliance
      with Securities Law

            	
              18

            
	
              22.

            	
              No
      Trust or Fund Created

            	
              19

            
	
              23.

            	
              No
      Limit on Other Compensation Arrangements

            	
              19

            
	
              24.

            	
              No
      Restriction of Corporate Action

            	
              19

            
	
              25.

            	
              Governing
      Law

            	
              20

            
	
              26.

            	
              Plan
      Subject to Charter and Bylaws

            	
              20

            
	
              27.

            	
              Effective
      Date; Termination Date

            	
              20

            

    

     

     

     

     

    
      
        
        

      

      
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    VERUTEK
TECHNOLOGIES CORPORATION

    2008
STOCK INCENTIVE PLAN

    

    

    1.           Establishment,
Purpose and Types of Awards

    

    VeruTEK Technologies, Inc., a Nevada
corporation (the "Company"), hereby establishes the VeruTEK Technologies, Inc.
2008 Stock Incentive Plan (the “Plan”).  The purpose of the Plan is to
promote the long-term growth and profitability of the Company by (i) providing
incentives to improve stockholder value and to contribute to the growth and
financial success of the Company, and (ii) enabling the Company to attract,
retain and reward the best available persons for positions of substantial
responsibility.

    

    The Plan permits the granting of Awards
in the form of Incentive Stock Options, Nonqualified Stock Options, Restricted
Stock, Restricted Stock Units, Stock Appreciation Rights, Phantom Stock, and
Performance Awards, in each case as such term is defined below, and any
combination of the foregoing.

    

    2.           Definitions

    

    Under this Plan, except where the
context otherwise indicates, the following definitions apply:

    

    (a)           “Affiliate” shall mean any
entity other than a Subsidiary, if the Company and/or one or more Subsidiaries
own directly or indirectly not less than fifty percent (50%) of such
entity.

    

    (b)           “Awards” shall mean Incentive
Stock Options, Nonqualified Stock Options, Restricted Stock, Restricted Stock
Units, Stock Appreciation Rights, Phantom Stock, and Performance Awards, and any
combination of the foregoing.

    

    (c)           “Board” shall mean the Board
of Directors of the Company.

    

    (d)           “Change in Control” shall
mean:

    

    (i)           The
consummation of an amalgamation, merger or consolidation of the Company with or
into another entity or any other corporate reorganization of the Company, if
more than fifty percent (50%) of the combined voting power of the continuing or
surviving entity’s securities outstanding immediately after such amalgamation,
merger, consolidation or other reorganization (or, if applicable, more than
fifty percent (50%) of the combined voting power of the ultimate parent company
that directly or indirectly has beneficial ownership of the securities of such
continuing or surviving entity) is not owned directly or indirectly by persons
who were holders of the Company’s then-outstanding voting
securities  immediately prior to such amalgamation, merger,
consolidation or other reorganization;

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    (ii)           The
sale, transfer or other disposition of all or substantially all of the Company’s
assets to an entity that is not a Parent, a Subsidiary or an Affiliate of the
Company;

    

    (iii)           Any
transaction as a result of which any person acquires in a single transaction,
directly or indirectly, securities of the Company representing at least fifty
percent (50%) of the total voting power represented by the Company’s
then-outstanding voting securities.  For purposes of this subsection,
the term “person” shall have the same meaning as when used in sections 13(d) and
14(d) of the Exchange Act but shall exclude:  (A) any Parent,
Subsidiary or Affiliate of the Company, (B) any employee benefit plan (or
related trust) sponsored or maintained by the Company, a Parent, or any
Subsidiary or Affiliate, and (C) any underwriter temporarily holding securities
pursuant to an offering of such securities; or

    

    (iv)           A
change in the composition of the Board over a period of twenty four (24)
consecutive months or less as a result of which individuals who, at the
beginning of such period, constitute the Board (the “Incumbent Board”) cease for
any reason to constitute at least a majority of the Board; provided, however,
that any individual subsequently becoming a director whose election, or
nomination for election by the Company’s Stockholders, was approved by a vote of
at least a majority of the directors then comprising the Board (either by a
specific vote or by approval of the proxy statement of the Company in which such
person is named as a nominee for director, without written objection to such
nomination) shall be considered as though such individual were a member of the
Incumbent Board, but excluding, for this purpose, any such individual whose
initial assumption of office occurs as a result of either an actual or
threatened solicitation of proxies or consents by or on behalf of a person other
than the Board.

    

    (e)           “Code” shall mean the
Internal Revenue Code of 1986, as amended, and any regulations issued
thereunder.

    

    (f)           “Committee” shall mean the
Board or a committee of the Board appointed pursuant to Section 3 of the Plan to
administer the Plan.

    

    (g)           “Committee Delegate” shall
mean the Chief Executive Officer or other senior officer of the Company to whom
duties and powers of the Board or Committee hereunder have been delegated
pursuant to Section 3(b).

    

    (h)           “Covered Employee” shall mean
an employee of the Company or any Parent, Subsidiary or Affiliate who is subject
to Code Section 162(m).

     

     

    
      
        
        

      

      
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    (i)           “Exchange Act” shall mean the
U.S. Securities Exchange Act of 1934, as amended and any rules or regulations
promulgated thereunder.

    

    (j)           “Fair Market Value” of the
Stock for any purpose on a particular date shall mean:

    

    (i)           if
the Stock is traded on a public securities exchange or a national automated
quotation system or on the over the counter bulletin board, the closing price
for Stock on the relevant date, or (if there were no sales on such date) the
closing price on the nearest day before the relevant date, as reported in The Wall Street Journal or a
similar publication selected by the Committee; or

    

    (ii)           if
the Stock is not traded on a public securities exchange or a national quotation
system or on the over the counter bulletin board on such date, the price
determined in a manner such as the Committee shall in good faith determine to be
appropriate.

    

    (k)           “Grant Agreement” shall mean
a written agreement between the Company and a grantee memorializing the terms
and conditions of an Award granted pursuant to the Plan.

    

    (l)           “Grant Date” shall mean the
date on which the Committee formally acts to grant an Award to a grantee or such
other date as the Committee shall so designate at the time of taking such formal
action.

    

    (m)           “Incentive Stock Options”
shall mean Stock options that meet the requirements of Code Section
422.

    

    (n)           “Nonqualified Stock Options”
shall mean Stock options that do not meet the requirements of Code Section
422.

    

    (o)           “Parent” shall mean a
company, whether now or hereafter existing, within the meaning of the definition
of “parent company” provided in Section 424(e) of the Code, or any successor
thereto of similar import.

    

    (p)           “Participant” shall mean a
director, officer, employee or consultant of the Company, or any Parent,
Subsidiary or Affiliate, who is granted an Award under the Plan.

    

    (q)           “Performance Award” shall
mean an Award under Section 10 hereof.

    

     

    (r)           “Performance Measure” shall
mean one or more of the following criteria, or such other operating objectives,
selected by the Committee to measure performance of the Company or any Parent,
Subsidiary or Affiliate or other business division of same for a Performance
Period, whether in absolute or relative terms: basic or diluted earnings per
share of Stock; earnings per share of Stock growth; revenue; operating income;
net income (either before or after taxes); earnings and/or net income before
interest and taxes; earnings and/or net income before interest, taxes,
depreciation and amortization; return on capital; return on equity; return on
assets; net cash provided by operations; free cash flow; Stock price; economic
profit; economic value; total stockholder return; gross margins and costs. Each
such measure shall be determined in accordance with generally accepted
accounting principles as consistently applied and, as determined by the
independent accountants of the Company in the case of a Performance Award to a
Covered Employee, to the extent intended to meet the performance-based
compensation exception under Code Section 162(m), or as determined by the
Committee for other Performance Awards, adjusted to omit the effects of
extraordinary items, gain or loss on the disposal of a business segment, unusual
or infrequently occurring events and transactions and cumulative effects of
changes in accounting principles.

     

    
      
        
        

      

      
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    (s)           “Performance Period” means a
period of not less than one year over which the achievement of targets for
Performance Measures is determined.

    

    (t)           “Phantom Stock” shall mean
Awards under Section 9.

    

    (u)           “Restricted Stock” and “Restricted Stock Units”
shall mean Awards under Section 7.

    

    (v)           “Rule 16b-3” shall mean Rule
16b-3 as in effect under the Exchange Act on the effective date of the Plan, or
any successor provision prescribing conditions necessary to exempt the issuance
of securities under the Plan (and further transactions in such securities) from
Section 16(b) of the Exchange Act.

    

    (w)           “Securities Act” shall mean
the U.S. Securities Act of 1933, as amended and any rules or regulations
promulgated thereunder.

    

    (x)           “Stock” shall mean common stock of
the Company.

    

    (y)           “Stock Appreciation Rights”
shall mean Awards under Section 8.

    

    (z)           “Subsidiary” and “Subsidiaries”
shall mean only a company or companies, whether now or hereafter
existing, within the meaning of the definition of “subsidiary company” provided
in Section 424(f) of the Code, or any successor
thereto of similar import.

    

    3.           Administration

    

    (a)           Procedure.  The
Plan shall be administered by the Board.  In the alternative, the
Board may delegate authority to a Committee to administer the Plan on behalf of
the Board, subject to such terms and conditions as the Board may
prescribe.  Such Committee shall consist of not less than two (2)
members of the Board each of whom is a “non-employee director” within the
meaning of Rule 16b-3 under the Exchange Act, or any successor rule of similar
import, and an “outside director” within the meaning of Section 162(m) of the
Code and the regulations promulgated thereunder.

    

    
      
        
        

      

      
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        Once
appointed, the Committee shall continue to serve until otherwise directed by the
Board.  From time to time, the Board may increase the size of the
Committee and appoint additional members thereof, remove members (with or
without cause) and appoint new members in substitution therefor, fill vacancies,
however caused, and remove all members of the Committee and, thereafter,
directly administer the Plan.  In the event that the Board is the
administrator of the Plan in lieu of a Committee, the term “Committee” as used
herein shall be deemed to mean the Board.

    

    The Committee shall meet at such times
and places and upon such notice as it may determine.  A majority of
the Committee shall constitute a quorum.  Any acts by the Committee
may be taken at any meeting at which a quorum is present and shall be by
majority vote of those members entitled to vote.  Additionally, any
acts reduced to writing or approved in writing by all of the members of the
Committee shall be valid acts of the Committee.

    

    (b)           Secondary Committees and
Sub-Plans.  The Board may, in its sole discretion, divide the
duties and powers of the Committee by establishing one or more secondary
Committees to which certain duties and powers of the Board hereunder are
delegated (each of which shall be regarded as a “Committee” under the Plan with
respect to such duties and powers), or delegate all of its duties and powers
hereunder to a single Committee.  Additionally, if permitted by
applicable law, the Board or Committee may delegate any or all of its duties and
powers hereunder to the Chief Executive Officer and/or to other senior officers
of the Company subject to such conditions and limitations as the Board or
Committee shall prescribe.  However, only the Committee described
under Subsection 3(a) may designate and grant Awards to Participants who are
subject to Section 16 of the Exchange Act or Section 162(m) of the
Code.  The Committee shall also have the power to establish sub-plans
(which may be included as appendices to the Plan or the respective Grant
Agreements), which may constitute separate programs, for the purpose of
establishing programs which meet any special tax or regulatory requirements of
jurisdictions other than the United States and its subdivisions.  Any
such interpretations, rules, administration and sub-plans shall be consistent
with the basic purposes of the Plan.

    

    (c)           Powers of the
Committee.  The Committee shall have all the powers vested in
it by the terms of the Plan, such powers to include authority, in its sole and
absolute discretion, to grant Awards under the Plan, prescribe Grant Agreements
evidencing such Awards and establish programs for granting
Awards.  The Committee shall have full power and authority to take all
other actions necessary to carry out the purpose and intent of the Plan,
including, but not limited to, the authority to:

    

    (i)           determine
the Participants to whom, and the time or times at which, Awards shall be
granted,

    

    (ii)           determine
the types of Awards to be granted,

     

     

     

    
      
        
        

      

      
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    (iii)           determine
the number of shares of Stock and/or amount of cash to be covered by or used for
reference purposes for each Award,

    

    (iv)           impose
such terms, limitations, vesting schedules, restrictions and conditions upon any
such Award as the Committee shall deem appropriate, including without limitation
establishing, in its discretion, Performance Measures that must be satisfied
before an Award vests and/or becomes payable, the term during which an Award is
exercisable, the purchase price, if any, under an Award and the period, if any,
following a grantee’s termination of employment or service with the Company or
any Parent, Subsidiary or Affiliate during which the Award shall remain
exercisable,

    

    (v)           modify,
extend or renew outstanding Awards, accept the surrender of outstanding Awards
and substitute new Awards, provided that no such action shall be taken with
respect to any outstanding Award that would materially, adversely affect the
grantee without the grantee’s consent, or constitute a repricing of stock
options without the consent of the holders of the Company’s voting securities
under (vi) below,

    

    (vi)           only
with the approval of the holders of the voting securities of the Company to the
extent that such approval is required by applicable law, regulation or the rules
of a national securities exchange or automated quotation system to which the
Company is subject, reprice Incentive Stock Options and Nonqualified Stock
Options either by amendment to lower the exercise price or by accepting such
stock options for cancellation and issuing replacement stock options with a
lower exercise price or through any other mechanism,

    

    (vii)           accelerate
the time in which an Award may be exercised or in which an Award becomes payable
and waive or accelerate the lapse, in whole or in part, of any restriction or
condition with respect to an Award,

    

    (viii)                      establish
objectives and conditions, including targets for Performance Measures, if any,
for earning Awards and determining whether Awards will be paid after the end of
a Performance Period, and

    

    (ix)           permit
the deferral of, or require a Participant to defer such Participant’s receipt
of, the delivery of Stock and/or cash under an Award that would otherwise be due
to such Participant and establish rules and procedures for such payment
deferrals, provided the requirements of Code Section 409A are met with respect
to any such deferral.

    

    The
Committee shall have full power and authority to administer and interpret the
Plan and to adopt such rules, regulations, agreements, guidelines and
instruments for the administration of the Plan as the Committee deems necessary,
desirable or appropriate in accordance with the Bylaws of the
Company.

     

     

    
      
        
        

      

      
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    (d)           Limited
Liability.  To the maximum extent permitted by law, no member
of the Board or Committee or a Committee Delegate shall be liable for any action
taken or decision made in good faith relating to the Plan or any Award
thereunder.

    

    (e)           Indemnification.  The
members of the Board and Committee and any Committee Delegate shall be
indemnified by the Company in respect of all their activities under the Plan in
accordance with the procedures and terms and conditions set forth in the
Certificate of Incorporation and Bylaws of the Company as in effect from time to
time.  The foregoing right of indemnification shall not be exclusive
of any other rights of indemnification to which such persons may be entitled
under the Company’s Certificate of Incorporation and Bylaws, as a matter of law,
or otherwise.

    

    (f)           Effect of Committee’s
Decision.  All actions taken and decisions and determinations
made by the Committee or a Committee Delegate on all matters relating to the
Plan pursuant to the powers vested in it hereunder shall be in the Committee’s
or Committee Delegate’s sole and absolute discretion and shall be conclusive and
binding on all parties concerned, including the Company, its stockholders, any
Participants in the Plan and any other employee of the Company, and their
respective successors in interest.

    

    (g)           Apprising the
Board.  The Committee will inform the Board regarding its
activities under the Plan not less frequently than at each scheduled Board
meeting and at such other times as the Board may
request.  .

    

    4.           Stock
Available Under the Plan; Maximum Awards

    

    (a)           Stock Available Under the Plan.
  Subject to adjustments as provided in Section 13 of the Plan,
the Stock that may be delivered or purchased or used for reference purposes
(with respect to Stock Appreciation Rights or Phantom Stock) with respect to
Awards granted under the Plan, including with respect to Incentive Stock
Options, shall not exceed an aggregate of Two Million (2,000,000) shares of
Stock.  Stock available under the Plan may be, in any combination,
authorized but unissued Stock, treasury Stock and Stock that is repurchased, in
the market, and canceled by the Company.  The Company shall reserve
said number of shares of Stock for Awards under the Plan, subject to adjustments
as provided in Section 13 of the
Plan.  If any Award, or portion of an Award, issued under the Plan,
expires or terminates unexercised, becomes unexercisable or is forfeited or
otherwise terminated, surrendered or canceled as to any shares of Stock without
the delivery by the Company (or, in the case of Restricted Shares, without
vesting) of Stock or other consideration, the Stock subject to such Award shall
thereafter be available for further Awards under the Plan.

     

     

     

    
      
        
        

      

      
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    (b)           Maximum Awards to Covered Employees.
The maximum number of shares of Stock subject to Awards that may be
granted during any one calendar year to any one Covered
Employee shall be limited to Four Hundred Thousand (400,000).  To the
extent required by Section 162(m) of the Code and so long as Section 162(m) of
the Code is applicable to persons eligible to participate in the Plan, shares of
Stock subject to the foregoing maximum with respect to which the related Award
is terminated, surrendered or canceled shall nonetheless continue to be taken
into account with respect to such maximum for the calendar year in which
granted.

    

    5.           Participation

    

    Participation in the Plan shall be open
to all directors, officers, employees and consultants of the Company, or of any
Parent, Subsidiary or Affiliate of the Company, as may be selected by the
Committee from time to time.  Notwithstanding the foregoing,
participation in the Plan with respect to Awards of Incentive Stock Options
shall be limited to employees of the Company or of any Parent or Subsidiary of
the Company.

    

    Awards may be granted to such
Participants and for or with respect to such number of shares of Stock as the
Committee shall determine, subject to the limitations in Section 4 of the
Plan.  A grant of any type of Award made in any one year to a
Participant shall neither guarantee nor preclude a further grant of that or any
other type of Award to such person in that year or subsequent
years.

    

    6.           Stock
Options

    

    Subject to the other applicable
provisions of the Plan, the Committee may from time to time grant to
Participants Awards of Nonqualified Stock Options and/or Incentive Stock
Options.  The stock option Awards granted shall be subject to the
following terms and conditions.

    

    (a)           Grant of
Option.  The grant of a stock option shall be evidenced by a
Grant Agreement, executed by the Company and the grantee, stating the number of
shares of Stock subject to the stock option evidenced thereby, the exercise
price and the terms and conditions of such stock option, in such form as the
Committee may from time to time determine.

    

    (b)           Exercise
Price.  The price per share payable upon the exercise of each
stock option shall be determined by the Committee, but shall not be less than
the Fair Market Value of the shares on the Grant Date unless the stock option
meets the requirements of Code Section 409A.

    

    (c)           Payment.  Stock
options may be exercised in whole or in part by payment of the exercise price of
the Stock to be acquired in accordance with the provisions of the Grant
Agreement, and/or such rules and regulations as the Committee may have
prescribed, and/or such determinations, orders, or decisions as the Committee
may have made.  Payment may be made in cash (or cash equivalents
acceptable to the Committee) or, if provided in the Grant Agreement and
permitted by applicable law, in shares of Stock which have been held by grantee
for at least six (6) months, or a combination of cash and such Stock, or by such
other means as the Committee may prescribe.  The Fair Market Value of
Stock delivered on exercise of stock options shall be determined as of the date
of exercise.

     

     

    
      
        
        

      

      
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    If the Stock is registered under
Section 12(b) or 12(g) of the Exchange Act, the Committee, subject to such
limitations as it may determine, may authorize payment of the exercise price, in
whole or in part, by delivery of a properly executed exercise notice, together
with irrevocable instructions, to:  (i) a brokerage firm to deliver
promptly to the Company the aggregate amount of sale or loan proceeds to pay the
exercise price and any withholding tax obligations that may arise in connection
with the exercise, and (ii) the Company to deliver the certificates for
such purchased Stock directly to such brokerage firm.

    

    (d)           Term of
Options.  The term during which each stock option may be
exercised shall be determined by the Committee; provided, however, that in no
event shall a stock option be exercisable more than ten years from the date it
is granted.  Prior to the exercise of the stock option and delivery of
the Stock certificates represented thereby, the grantee shall have none of the
rights of a stockholder with respect to any Stock represented by an outstanding
stock option.

    

    (e)           Restrictions on Incentive Stock
Options.  Incentive Stock Option Awards granted under the Plan
shall comply in all respects with Code Section 422 and, as such, shall meet the
following additional requirements:

    

    (i)           Grant Date.  An
Incentive Stock Option must be granted within ten (10) years of the earlier of
the Plan’s adoption by the Board of Directors or approval by the Company’s
stockholders.

    

    (ii)           Exercise Price and
Term.  The exercise price of an Incentive Stock Option shall
not be less than one hundred percent (100%) of the Fair Market Value of the
Stock on the date the stock option is granted and the term of the stock option
shall not exceed ten (10) years.  Also, the exercise price of any
Incentive Stock Option granted to a grantee who owns (within the meaning of
Section 422(b)(6) of the Code, after the application of the attribution rules in
Section 424(d) of the Code) more than ten percent (10%) of the total combined
voting power of all classes of shares of Stock of the Company or any Parent or
Subsidiary of the Company shall be not less than one hundred ten percent (110%)
of the Fair Market Value of the Stock on the grant date and the term of such
stock option shall not exceed five (5) years.

     

     

     

    
      
        
        

      

      
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    (iii)           Maximum Grant.  The
aggregate Fair Market Value (determined as of the Grant Date) of Stock of the
Company with respect to which all Incentive Stock Options first become
exercisable by any grantee in any calendar year under this or any other plan of
the Company and its Parent and Subsidiaries may not exceed One Hundred Thousand
Dollars ($100,000) or such other amount as may be permitted from time to time
under Section 422 of the Code.  To the extent that such aggregate Fair
Market Value shall exceed One Hundred Thousand Dollars ($100,000), or other
applicable amount, such stock options to the extent of the Stock in excess of
such limit shall be treated as Nonqualified Stock Options.  In such
case, the Company may designate the shares of Stock that are to be treated as
Stock acquired pursuant to the exercise of an Incentive Stock
Option.

    

    (iv)           Grantee.  Incentive
Stock Options shall only be issued to employees of the Company or of a Parent or
Subsidiary of the Company.

    

    (v)           Designation.  No
stock option shall be an Incentive Stock Option unless so designated by the
Committee at the time of grant or in the Grant Agreement evidencing such stock
option.

    

    (vi)           Stockholder
Approval.  No stock option issued under the Plan shall be an
Incentive Stock Option unless the Plan is approved by the stockholders of the
Company within twelve (12) months of its adoption by the Board in accordance
with the Bylaws of the Company and governing law relating to such
matters.

    

    (f)           Other Terms and
Conditions.  Stock options may contain such other provisions,
not inconsistent with the provisions of the Plan, as the Committee shall
determine appropriate from time to time.

    

    7.           Restricted
Stock and Restricted Stock Units

    

    (a)           In
General.  Subject to the other applicable provisions of the
Plan and applicable law, the Committee may at any time and from time to time
grant Restricted Stock or Restricted Stock Units to Participants, in such
amounts and subject to such vesting conditions, other restrictions and
conditions for removal of restrictions as it determines.  Unless
determined otherwise by the Committee, Participants receiving Restricted Stock
or Restricted Stock Units are not required to pay the Company cash consideration
therefor (except as may be required for applicable tax
withholding).

    

    (b)           Vesting Conditions and Other
Restrictions.  Each
Award for Restricted Stock and Restricted Stock Units shall be evidenced by a
Grant Agreement that specifies the applicable vesting conditions and other
restrictions, if any, on such Award, the duration of such restrictions, and the
time or times at which such restrictions shall lapse with respect to all or a
specified number of the shares of Stock that are part of the
Award.  Notwithstanding the foregoing, the Committee may reduce or
shorten the duration of any vesting or other restriction applicable to any
Restricted Stock or Restricted Stock Units awarded to any grantee under the
Plan.

     

     

    
      
        
        

      

      
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    (c)           Stock Issuance and Stockholder
Rights.

    

    (i)           Restricted
Stock.  Stock certificates with respect to Stock granted pursuant to a
Restricted Stock Award shall be issued, and/or Stock shall be registered, at the
time of grant of the Restricted Stock Award, subject to forfeiture if the
Restricted Stock does not vest or other restrictions do not
lapse.  Any Stock certificates shall bear an appropriate legend with
respect to the restrictions applicable to such Restricted Stock Award and the
grantee may be required to deposit the certificates with the Company during the
period of any restriction thereon and to execute a blank stock power or other
instrument of transfer therefor.  Except as otherwise provided by the
Committee, during the period of restriction following issuance of Restricted
Stock certificates, the grantee shall have all of the rights of a holder of
Stock, including but not limited to the rights to receive dividends (or amounts
equivalent to dividends) and to vote with respect to the Restricted
Stock.  The Committee, in its discretion, may provide that any
dividends or distributions paid with respect to Stock subject to the unvested
portion of a Restricted Stock Award will be subject to the same restrictions as
the Restricted Stock to which such dividends or distributions
relate.

    

    (ii)           Restricted
Stock Units.  Stock certificates for the shares of Stock subject to a
Restricted Stock Unit shall be issued, and/or Stock shall be registered, upon
vesting and lapse of any other restrictions with respect to the issuance of
Stock under such Award.  The grantee will not be entitled to vote such
Stock or to any of the other rights of stockholders during the period prior to
issuance of the certificates for such Stock and/or the registration of the
Stock.  An Award of Restricted Stock Units may provide the Participant
with the right to receive amounts equivalent to dividends and distributions paid
with respect to Stock subject to the Award while the Award is outstanding, which
payments may, in the Committee’s discretion, either be made currently or
credited to an account for the Participant, and may be settled in cash or Stock,
all as determined by the Committee.  Unless otherwise determined by
the Committee with respect to a particular Award, each outstanding Restricted
Stock Unit shall accrue such dividend equivalents, deferred as equivalent
amounts of additional Restricted Stock Units, which amounts will be paid only
when and if the Restricted Stock Unit (on which such dividend equivalents were
accrued) vests and becomes payable.  To the extent that a Restricted
Stock Unit does not vest or is otherwise forfeited, any accrued and unpaid
dividend equivalents shall be forfeited.

     

     

    
      
        
        

      

      
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    8.           Stock
Appreciation Rights

    

    (a)           Award of Stock Appreciation
Rights.  Subject to the other applicable provisions of the
Plan, the Committee may at any time and from time to time grant Stock
Appreciation Rights (“SARs”) to Participants, either on a free-standing basis
(without regard to or in addition to the grant of a stock option) or on a tandem
basis (related to the grant of an underlying stock option), as it
determines.  SARs granted in tandem with or in addition to a stock
option may be granted either at the same time as the stock option or at a later
time; provided, however, that a tandem SAR shall not be granted with respect to
any outstanding Incentive Stock Option Award without the consent of the
grantee.  SARs shall be evidenced by Grant Agreements, executed by the
Company and the grantee, stating the number of shares of Stock subject to the
SAR evidenced thereby and the terms and conditions of such SAR, in such form as
the Committee may from time to time determine. The term during which each SAR
may be exercised shall be determined by the Committee.  In no event
shall a SAR be exercisable more than ten years from the date it is granted.  The grantee
shall have none of the rights of a stockholder with respect to any Stock
represented by a SAR.

    

    (b)           Restrictions of Tandem
SARs.  No Incentive Stock Option may be surrendered in
connection with the exercise of a tandem SAR unless the Fair Market Value of the
Stock subject to the Incentive Stock Option is greater than the exercise price
for such Incentive Stock Option.  SARs granted in tandem with stock
options shall be exercisable only to the same extent and subject to the same
conditions as the stock options related thereto are exercisable.  The
Committee may, in its discretion, prescribe additional conditions to the
exercise of any such tandem SAR.

    

    (c)           Amount of Payment upon Exercise of
SARs.  A SAR shall entitle the grantee to receive, subject to
the provisions of the Plan and the Grant Agreement, a payment having an
aggregate value equal to the product of (i) the excess of (A) the Fair Market
Value on the exercise date of one share of Stock over (B) the base price per
share of Stock specified in the Grant Agreement, times (ii) the number of shares
of Stock specified by the SAR, or portion thereof, that is
exercised.  In the case of exercise of a tandem SAR, such payment
shall be made in exchange for the surrender of the unexercised related stock
option (or any portion or portions thereof which the grantee from time to time
determines to surrender for this purpose).  The base price per share
under a SAR shall not be less than the Fair Market Value of a share of Stock on
the Grant Date, unless the SAR meets the requirements of Code Section
409A.

    

    (d)           Form of Payment upon Exercise of
SARs.  Payment by the Company of the amount receivable upon any
exercise of a SAR may be made by the delivery of Stock or cash, or any
combination of Stock and cash, as determined in the sole discretion of the
Committee from time to time.  If upon settlement of the exercise of a
SAR a grantee is to receive a portion of such payment in Stock, the number of
shares of Stock shall be determined by dividing such portion by the Fair Market
Value of a share of Stock on the exercise date.  No fractional shares
shall be used for such payment and the Committee shall determine whether cash
shall be given in lieu of such fractional shares or whether such fractional
shares shall be eliminated.

     

     

     

    
      
        
        

      

      
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    9.           Phantom
Stock

    

    The grant of Phantom Stock shall be
evidenced by a Grant Agreement, executed by the Company and the grantee, that
incorporates the terms of the Plan and states the number of shares of Phantom
Stock evidenced thereby and the terms and conditions of such Phantom Stock in
such form as the Committee may from time to time determine.  Phantom
Stock granted to a Participant shall be credited to a bookkeeping reserve
account solely for accounting purposes and shall not require a segregation of
any of the Company’s assets.  Each share of Phantom Stock shall
represent the value of one share of Stock.  Phantom Stock shall become
payable in whole or in part in such form, at such time or times and pursuant to
such conditions in accordance with the provisions of the Grant Agreement, and/or
such rules and regulations as the Committee may prescribe, and/or such
determinations, orders or decisions as the Committee may make.  Except
as otherwise provided in the applicable Grant Agreement, the grantee shall have
none of the rights of a stockholder with respect to any shares represented by
Phantom Stock as a result of the grant of Phantom Stock to the
grantee.  Phantom Stock may contain such other provisions, not
inconsistent with the provisions of the Plan, as the Committee shall determine
desirable or appropriate from time to time.

    

    10.           Performance
Awards

    

    (a)           In General. The Committee, in
its discretion, may establish targets for Performance Measures for selected
Participants and authorize the granting, vesting, payment and/or delivery of
Performance Awards in the form of Incentive Stock Options, Nonqualified Stock
Options, Restricted Stock, Restricted Stock Units, Stock Appreciation Rights,
and/or Phantom Stock to such Participants upon achievement of such targets for
Performance Measures during a Performance Period.  The Committee, in
its discretion, shall determine the Participants eligible for Performance
Awards, the targets for Performance Measures to be achieved during each
Performance Period, and the type, amount, and terms and conditions of any
Performance Awards.  Performance Awards may be granted either alone or
in addition to other Awards made under the Plan.

    

    (b)           Covered Employee
Targets.  After the Company is subject to Code Section 162(m),
in connection with any Performance Awards granted to a Covered Employee which
are intended to meet the performance-based compensation exception under Code
Section 162(m), the Committee shall (i) establish in the applicable Grant
Agreement the specific targets relative to the Performance Measures which must
be attained before the respective Performance Award is granted, vests, or is
otherwise paid or delivered, (ii) provide in the applicable Grant Agreement the
method for computing the portion of the Performance Award which shall be
granted, vested, paid and/or delivered if the target or targets are attained in
full or part, and (iii) at the end of the relevant Performance Period and prior
to any such grant, vesting, payment or delivery certify the extent to which the
applicable target or targets were achieved and whether any other material terms
were in fact satisfied.  The specific targets and the method for
computing the portion of such Performance Award which shall be granted, vested,
paid or delivered to any Covered Employee shall be established by the Committee
prior to the earlier to occur of (A) ninety (90) days after the commencement of
the Performance Period to which the Performance Measure applies and (B) the
elapse of twenty-five percent (25%) of the Performance Period and in any event
while the outcome is substantially uncertain.  In interpreting Plan
provisions applicable to Performance Measures and Performance Awards which are
intended to meet the performance-based compensation exception under Code Section
162(m) , it is the intent of the Plan to conform with the standards of
Section 162(m) of the Code and Treasury Regulations Section 1.162-27(e)(2),
and the Committee in interpreting the Plan shall be guided by such
provisions.

     

     

     

    
      
        
        

      

      
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              11.

            	
              Withholding
      and Reporting of Taxes

            

    

    

    The Company may require, as a condition
to the grant of any Award under the Plan, vesting or exercise pursuant to such
Award or to the delivery of certificates for shares of Stock issued or payments
of cash to a grantee pursuant to the Plan or a Grant Agreement, that the grantee
pay to the Company, in cash or, if approved by the Company, in Stock, including
Stock acquired upon grant of the Award or exercise of the Award, valued at Fair
Market Value on the date as of which the withholding tax liability is
determined, any federal, state or local taxes of any kind or any applicable
taxes or other required withholding of any other jurisdiction required by law to
be withheld with respect to any taxable event under the Plan.  The
Company, to the extent permitted or required by law, shall have the right to
deduct from any payment of any kind (including salary or bonus) otherwise due to
a grantee any federal, state or local taxes of any kind or any applicable taxes
or other required withholding of any other jurisdiction required by law to be
withheld with respect to the grant, vesting, exercise or payment of or under any
Award under the Plan or a Grant Agreement, or to retain or sell a sufficient
number of the
shares of Stock to be issued to such grantee to cover any such
taxes.  The Company or any Parent, Subsidiary or Affiliate shall
comply with any applicable tax reporting requirements of any jurisdiction
imposed on it by law with respect to the granting, vesting, exercise and/or
payment of Awards.

    

    12.           Transferability

    

    Except to the extent otherwise provided
in the respective Grant Agreement, no Award granted under the Plan shall be
transferable by a grantee otherwise than by will or the laws of descent and
distribution.  Unless otherwise determined by the Committee in
accordance with the provisions of the immediately preceding sentence, an Award
may be exercised during the lifetime of the grantee only by the grantee or,
during the period the grantee is under a legal disability, by the grantee’s
guardian or legal representative.  Notwithstanding the foregoing, an
Award other than an Incentive Stock Option may, in the Committee’s sole
discretion, be transferable by gift or domestic relations order to (i) the
grantee’s child, stepchild, grandchild, parent, stepparent, grandparent, spouse,
former spouse, sibling, niece, nephew, mother-in-law, father-in-law,
daughter-in-law, son-in-law, brother-in-law or sister-in-law, including adoptive
relationships (such persons, “Family Members”), (ii) a corporation, partnership,
limited liability company or other business entity whose only stockholders,
partners or members, as applicable are the grantee and/or Family Members, or
(iii) a trust in which the Grantee and/or Family Members have all of the
beneficial interests, and subsequent to any such transfer any Award may be
exercised by any such transferee.

     

     

    
      
        
        

      

      
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    13.           Adjustments;
Business Combinations

    

    (a)           Adjustments. In the event of
a reclassification, recapitalization, stock split, reverse stock split, stock
dividend, combination of shares or other similar event, the maximum number and
kind of shares reserved for issuance or with respect to which Awards may be
granted under the Plan as provided in Section 4 shall be adjusted to reflect
such event, and the Committee shall make such adjustments as it deems
appropriate and equitable in the number, kind and price of shares covered by
outstanding Awards made under the Plan, and in any other matters that relate to
Awards and that are affected by the changes in the shares referred to
above.

    

    (b)           Change in
Control.  In the event of any proposed Change in Control under
Section 2(d)(i), (ii) or (iii), the Committee shall take such action as it deems
appropriate and equitable to effectuate the purposes of this Plan and to protect
the grantees of Awards, which action may include, without limitation, any one or
more of the following, provided such action is in compliance with Code Section
409A if applicable:  (i) acceleration or change of the exercise and/or
expiration dates of any Award to require that exercise be made, if at all, prior
to the Change in Control; (ii) cancellation of any Award upon payment to the
holder in cash of the Fair Market Value of the Stock subject to such Award as of
the date of (and, to the extent applicable, as established for purposes of) the
Change in Control, less the aggregate exercise price, if any, of the Award; and
(iii) in any case where equity securities of another entity are proposed to
be delivered in exchange for or with respect to Stock of the Company,
arrangements to have such other entity replace the Awards granted hereunder with
awards with respect to such other securities, with appropriate adjustments in
the number of shares subject to, and the exercise prices under, the
Award.

    

    (c)           Dissolution and
Liquidation.  In the event the Company dissolves and liquidates
(other than pursuant to a plan of amalgamation, merger or reorganization), then
notwithstanding any restrictions on exercise set forth in this Plan or any Grant
Agreement, or other agreement evidencing a stock option, Stock Appreciation
Right, Phantom Stock, Restricted Stock or Restricted Stock Unit Award, provided
such action is in compliance with Code Section 409A if applicable: (i) each
grantee shall have the right to exercise his stock option, Stock Appreciation
Right, or Phantom Stock or to require delivery of Stock certificates, and/or
registration of the Stock,  representing any such Restricted Stock or
Restricted Stock Unit Award, at any time up to ten (10) days prior to the
effective date of such liquidation and dissolution; and (ii) the Committee
may make arrangements with the grantees for the payment of appropriate
consideration to them for the cancellation and surrender of any stock option,
Stock Appreciation Right, Phantom Stock, Restricted Stock or Restricted Stock
Unit Award that is so canceled or surrendered at any time up to ten (10) days
prior to the effective date of such liquidation and dissolution.  The
Committee may establish a different period (and different conditions) for such
exercise, delivery, cancellation or surrender to avoid subjecting the grantee to
liability under Section 16(b) of the Exchange Act.  Any stock option,
Stock Appreciation Right or Phantom Stock not so exercised, canceled or
surrendered shall terminate on the last day for exercise prior to such effective
date; and any Restricted Stock or Restricted Stock Units as to which there has
not been such delivery of Stock certificates or that has not been so canceled or
surrendered, shall be forfeited on the last day prior to such effective
date.  The Committee shall give to each grantee written notice of the
commencement of any proceedings for such liquidation and dissolution of the
Company and the grantee’s rights with respect to his outstanding
Award.

     

     

     

    
      
        
        

      

      
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    (d)           Other
Adjustments.  The Committee is authorized to make adjustments
in the terms and conditions of, and the criteria included in, Awards in
recognition of unusual or nonrecurring events (including, without limitation,
the events described in the preceding paragraphs of this Section 13) affecting
the Company, or the financial statements of the Company or any Parent,
Subsidiary or Affiliate, or of changes in applicable laws, regulations or
accounting principles, whenever the Committee determines that such adjustments
are appropriate in order to prevent dilution or enlargement of the benefits or
potential benefits intended to be made available under the Plan.

    

    Except as hereinbefore expressly
provided, issuance by the Company of stock of any class or securities
convertible into stock of any class, for cash, property, labor or services, upon
direct sale, upon the exercise of rights or warranty to subscribe therefor, or
upon conversion of stock or obligations of the Company convertible into such
stock or other securities, and in any case whether or not for fair value, shall
not affect, and no adjustment by reason thereof shall be made with respect to,
the number of shares of Stock subject to Awards theretofore granted or the
purchase price per share of Stock subject to Awards.

    

    14.           Termination
and Amendment

    

    (a)           Amendment or Termination by the
Board. The Board, without further approval of the stockholders, may amend
or terminate the Plan or any portion thereof at any time, except that no
amendment shall become effective without prior approval of the stockholders of
the Company to increase the number of shares of Stock subject to the Plan or if
stockholder approval is necessary to comply with any tax or regulatory
requirement or rule of any exchange or national automated quotation system upon
which the Stock is listed or quoted (including for this purpose stockholder
approval that is required for continued compliance with Rule 16b-3 or
stockholder approval that is required to enable the Committee to grant Incentive
Stock Options pursuant to the Plan).

     

     

    
      
        
        

      

      
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    (b)           Amendments by the
Committee.  The Committee shall be authorized to make minor or
administrative amendments to the Plan as well as amendments to the Plan that may
be dictated by requirements of U.S. federal or state laws applicable to the
Company or that may be authorized or made desirable by such laws.  The
Committee may amend any outstanding Award in any manner as provided in Section
3(c) and to the extent that the Committee would have had the authority to make
such Award as so amended.

    

    (c)           Approval of Grantees. No
amendment to the Plan or any Award may be made that would materially adversely
affect any outstanding Award previously made under the Plan without the approval
of the grantee.  Further, no amendment to the Plan or an Award shall
be made which would cause any Award to fail to either comply with or meet an
exception from Code Section 409A.

    

    15.           Non-Guarantee
of Employment

    

    Nothing in the Plan or in any Grant
Agreement thereunder shall confer any right on an employee to continue in the
employ of the Company or any Parent, Subsidiary or Affiliate or shall interfere
in any way with the right of the Company or any Parent, Subsidiary or Affiliate
to terminate an employee at any time.

    

    

    16.           Termination
of Employment

    

    For purposes of maintaining a grantee’s
continuous status as an employee and accrual of rights under any Award, transfer
of an employee among the Company and the Company’s Parent, Subsidiaries or
Affiliates shall not be considered a termination of employment.  Nor
shall it be considered a termination of employment for such purposes if an
employee is placed on military or sick leave or such other leave of absence that
is considered as continuing intact the employment relationship; in such a case,
the employment relationship shall be continued until the date when an employee’s
right to reemployment shall no longer be guaranteed either by law or
contract.

    

    17.           Written
Agreement

    

    Each Grant Agreement entered into
between the Company and a grantee with respect to an Award granted under the
Plan shall incorporate the terms of this Plan and shall contain such provisions,
consistent with the provisions of the Plan, as may be established by the
Committee.

     

     

    
      
        
        

      

      
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    18.           Non-Uniform
Determinations

    

    The Committee’s determinations under
the Plan (including without limitation determinations of the persons to receive
Awards, the form, amount and time of such Awards, the terms and provisions of
such Awards and the agreements evidencing same) need not be uniform and may be
made by it selectively among persons who receive, or are eligible to receive,
Awards under the Plan, whether or not such persons are similarly
situated.

    

    19.           Limitation
on Benefits

    

    With respect to persons subject to
Section 16 of the Exchange Act, transactions under this Plan are intended to
comply with all applicable conditions of Rule 16b-3.  To the extent
any provision of the Plan or action by the Committee fails to so comply, it
shall be deemed null and void, to the extent permitted by law and deemed
advisable by the Committee.

    

    20.           Listing
and Registration

    

    If the Company determines that the
listing, registration or qualification of Stock subject to any Award upon any
securities exchange or listing or quotation system established by the National
Association of Securities Dealers, Inc. or under any law is necessary or
desirable as a condition of, or in connection with, the granting of same or the
issue or purchase of Stock thereunder, no such Award may be exercised in whole
or in part and no restrictions on such Award shall lapse, unless such listing,
registration or qualification is effected free of any conditions not acceptable
to the Company.

    

    

    21.           Compliance
with Securities Law

    

    The Company may require that a grantee,
as a condition to exercise of an Award, and as a condition to the delivery of
any Stock certificate, provide to the Company, at the time of each such exercise
and each such delivery, a written representation that the Stock being acquired
shall be acquired by the grantee solely for investment and will not be sold or
transferred without registration or the availability of an exemption from
registration under the Securities Act and applicable state securities
laws.  The Company may also require that a grantee submit other
written representations that will permit the Company to comply with applicable federal
and state securities laws in connection with the issuance of the Stock,
including representations as to the knowledge and experience in financial and
business matters of the grantee and the grantee’s ability to bear the economic
risk of the grantee’s investment.  The Company may require that the
grantee obtain a “purchaser representative” as that term is defined in
applicable federal and state securities laws.  Any Stock certificates
for shares issued pursuant to this Plan may bear a legend restricting
transferability of the Stock unless such shares are registered or an exemption
from registration is available under the Securities Act and applicable
securities laws of the states of the U.S.  The Company may notify its
transfer agent to stop any transfer of Stock not made in compliance with these
restrictions.  Stock shall not be issued with respect to an Award
granted under the Plan unless the exercise of such Award and the issuance and
delivery of Stock certificates for such shares pursuant thereto shall comply
with all relevant provisions of law, including, without limitation, the
Securities Act, the Exchange Act, the rules and regulations promulgated
thereunder and the requirements of any national securities exchange or Nasdaq
System upon which the Stock may then be listed or quoted, and shall be further
subject to the approval of counsel for the Company with respect to such
compliance to the extent such approval is sought by the Committee.

     

     

     

    
      
        
        

      

      
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    22.           No
Trust or Fund Created

    

    Neither the Plan nor any Award shall
create or be construed to create a trust or separate fund of any kind or a
fiduciary relationship between the Company and a grantee or any other
person.  To the extent that any grantee or other person acquires a
right to receive payments from the Company pursuant to an Award, such right
shall be no greater than the right of any unsecured general creditor of the
Company.

    

    23.           No
Limit on Other Compensation Arrangements

    

    Nothing contained in the Plan shall
prevent the Company or any Parent, Subsidiary or Affiliate from adopting or
continuing in effect other compensation arrangements (whether such arrangements
be generally applicable or applicable only in specific cases), including without
limitation the granting of stock options, Restricted Stock, Restricted Stock
Units, Stock Appreciation Rights or Phantom Stock Units otherwise than under the
Plan.

    

    24.           No
Restriction of Corporate Action

    

    Nothing contained in the Plan shall be
construed to limit or impair the power of the Company or any Parent, Subsidiary
or Affiliate to make adjustments, reclassifications, reorganizations, or changes
in its capital or business structure, or to amalgamate, merge or consolidate,
liquidate, sell or transfer all or any part of its business or assets or, except
as otherwise provided herein, or in a Grant Agreement, to take other actions
which it deems to be necessary or appropriate.  No employee,
beneficiary or other person shall have any claim against the Company or any
Parent, Subsidiary or Affiliate as a result of such action.

     

     

    
      
        
        

      

      
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    25.           Governing
Law

    

    The validity, construction and effect
of the Plan, of Grant Agreements entered into pursuant to the Plan, and of any
rules, regulations, determinations or decisions made by the Board or Committee
relating to the Plan or such Grant Agreements, and the rights of any and all
persons having or claiming to have any interest therein or thereunder, shall be
determined in accordance with applicable federal laws and the laws of the State
of Connecticut.  Unless otherwise provided in the Award Agreement,
recipients of an Award under the Plan are deemed to submit to the exclusive
jurisdiction and venue of the federal or local courts of the State of
Connecticut, to resolve any and all issues that may arise out of or relate to
the Plan or any related Grant Agreement.  The Awards under the Plan
are intended to either comply with or meet an exception from Code Section 409A
and shall be so interpreted and administered.

    

    26.           Plan
Subject to Charter and Bylaws

    

    This Plan is subject to the Certificate
of Incorporation and Bylaws of the Company, as they may be in effect from time
to time.

    

    27.           Effective
Date; Termination Date

    

    The Plan is effective as of the date on
which the Plan is adopted by the Board of Directors and shall be submitted to
the stockholders of the Company for approval within 12 months of its adoption by
the Board.  No further Awards shall be issued under the Plan if the
Plan is not so approved by the Company's stockholders, but the failure of the
stockholders to approve the Plan shall not invalidate any Award issued prior to
such failure except as otherwise may be required by Section 21.  No
Award shall be granted under the Plan after the close of business on the day
immediately preceding the tenth (10th)
anniversary of the effective date of the Plan.  Subject to other
applicable provisions of the Plan, all Awards made under the Plan prior to such
termination of the Plan shall remain in effect until such Awards have been
satisfied or terminated in accordance with the Plan and the terms of such
Awards.

    
    

     

    
      	Date Approved by the
      Board:  	March 27,
    2008	 	 
	 	 	 	 
	Date Approved by the
      Stockholders: 	 	 	 

    

     

     

     

    
20jmar_ex1045.htm

    Exhibit 10.45

     

     

    

    
      
        

      

     

    Summary
of principal terms of the contract dated October 12, 2007, between
the

    Company
and D&K Engineering, Inc. for the Development and Prototype of a
Man

    Portable
Laser

     

     

    D&K
Engineering was contracted October 12, 2007, by JMAR via Purchase Order 21100 on
a Time and Materials (T&M) effort to provide engineering services for the
purpose of re-packaging the components of an existing laser into a prototype
man-portable unit for use in a LIBS system. The T&M estimate at the time of
contract was $300,000 with an estimated burn rate of $60,000/month for a five
month period. This estimate was prepared based on the assumptions at the time of
contract award and was anticipated to change based on discussion and likely
adjustments required regarding final requirements and architecture of the
project and development and prototype manufacturing schedules.

     

     

    This new
laser is being developed to support a new product line being introduced by
JMAR.

     

    

    D&K
Engineering

    15890
Bernardo Center Drive

    San
Diego, CA 92127

    DUNS:  
799638700

    CAGE/NCAGE:  1Q0R8

    Business Start
Date:  05/02/2000

    Company
URL:  www.dkengr.com

     

    General
Requirements & Objectives

     

    The goal
of this prototype phase is to confirm that the laser functionality demonstrated
in the lab can be packaged in a smaller, man portable unit and operated
successfully in a field environment.  D&K will strive to make the
unit as small, light, and rugged as possible within the given schedule
constraints. However, obtaining full “military specification” compliance will
not be possible on this first prototype due to the aggressive
schedule.

    
      	
               
      

            	
              ·

            	
              Re-package
      the lab laser into a small, rugged, man-portable
  unit.

            

    

    
      	
               
      

            	
              ·

            	
              Unit
      to be rugged and capable of functioning in a variety of outdoor
      environments (i.e. such as a hot desert, cold mountains, humid jungles) to
      the extent practical.

            

    

    
      	
               
      

            	
              ·

            	
              Size
      goals: 6” H x 7.5” W x 12” long

            

    

    
      	
               
      

            	
              ·

            	
              Weight
      goal: 13 pounds

            

    

    
      	
               
      

            	
              ·

            	
              Replace
      existing optical equipment with smaller components where
      appropriate.

            

    

    
      	
               
      

            	
              ·

            	
              Design
      the unit such that eye safety is
considered.

            

    

    
      	
               
      

            	
              ·

            	
              Anticipate
      using a typical military 24 V Lithium battery (non rechargeable). (Note –
      these are larger and heavier than the laptop battery originally proposed
      by JMAR).

            

    

    
      	
               
      

            	
              ·

            	
              Inputs:

            

    

    
      	
               
      

            	
              o

            	
              Power
      on-off toggle switch

            

    

    
      	
               
      

            	
              o

            	
              Trigger
      in coaxial cable connector (trigger is TTL rising
  edge)

            

    

    
      	
               
      

            	
              o

            	
              Serial
      I/O port

            

    

     

     

     

     

     

    
 

    
      
        
          15890
Bernardo Center Drive     San Diego, CA
92127      (858)376-2500      www.dkengineering.com

        

         

      

      
         

        
          

        

      

      
         

      

    

     

     

    

     

      
        

      

    

    
 

    
      	
               
      

            	
              o

            	
              Emergency
      stop switch

            

    

    
      	
               
      

            	
              o

            	
              Battery
      power cable connector

            

    

    
      	
               
      

            	
              ·

            	
              Outputs:

            

    

    
      	
               
      

            	
              o

            	
              Trigger
      out coaxial cable connector (trigger is TTL rising
  edge)

            

    

    
      	
               
      

            	
              o

            	
              LED
      laser ready lamp. This lamp flashes for 10 seconds and then goes solid,
      indicating a delayed start, giving the operator time to abort the
      start.

            

    

    
      	
               
      

            	
              o

            	
              LED
      status lamps (tentatively five of these) mounted on the PCA. Removing the
      electronics cover may be required to see these, to debug a failure of the
      laser to turn on or to fire.

            

    

    
      	
               
      

            	
              o

            	
              Dual
      pulses of 1064 nm laser light, a single dual pulse or a burst of 20 at 10
      Hz.

            

    

    
      	
               
      

            	
              ·

            	
              Output
      timing:

            

    

     

     

     

    

     

    

    

    

    
      15890
Bernardo Center Drive     San Diego, CA
92127      (858)376-2500      www.dkengineering.com

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